03/03/2016 Asia Business Report


03/03/2016

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Now on BBC News all the latest business news live from Singapore.

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The UN imposes tougher sanctions on North Korea and we find out what

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that means for the country's economy. How India is growing its

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music industry on mine to beat the Pirates. Welcome to Asia Business

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Report. United Nations Security Council has approved tough new

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sanctions against North Korea and that is in response to the recent

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rocket launch a nuclear test. They will be banned from exporting

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natural resources, including coal up iron, gold and other metal. There

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won't be able to sell aviation fuel to North Korea and all important

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exports will be subject to inspection. This man has his doubts

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about the impacts. It will have a significant impact on the economy,

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but these new measures were about maximising the non-proliferation and

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demilitarisation effort of North Korea rather than maximising the

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impact on the North Korean economy. These new measures try to maximise

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non-proliferation efforts, but minimise impact on the North Korean

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economy. You are saying it will not have much impact, but the UN

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Security Council says these are tough measures. There is a ban on

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the commodities, aviation fuels and a blacklist on individuals and banks

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and companies. Surely these are expected to hurt the economy. Where

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do you think they will hurt the most? The devil is in the details

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again. Last night, there are conditions attached to different

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economic section measures, for example, when it comes to the export

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of coal and other minerals to China. It says that as long as the export

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of minerals to China is not related to the nuclear programme it is

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fine. It is fine you say, so we are expecting there are loopholes that

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North Korea could take to get around the sanctions? That is right. They

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need a credible effort to show to the international community that

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they are making sure that the money earned through these exports is not

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being diverted to the nuclear programme and it is not going

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against these measures proposed last night. Mining firms have agreed to

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pay $1.1 billion in Brazil for damage caused by a Gamba burst last

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year. -- a dam that. If they fail to pay, the companies will step up. It

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killed 19 people and caused major damage in south-east Brazil. Earlier

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I spoke with our south American reporter. It will be paid out and it

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should not affect the rest of the values operation. The problem would

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be if the group does not have the funds over 15 years to pay for the

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damage because that is what was agreed today. They are going to pay

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a lot of money over the course of 15 years, and if in that case, BHP will

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have two step up and pay the money. They are announcing their first ever

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loss. Will this pay at have even worse repercussions that these

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firms? They are in deep financial trouble long before this accident

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happened. The company had some good results back in 2011 but since that

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year it has not been good news and any year this year so far. The

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problem is that they are selling iron all at a time when it is very

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cheap. They also produce in Brazil and they expect to get a lot of

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money abroad, but they don't, because the currency is quite low

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right now. This accident only as a lot more financial strain to a

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company that is not looking good for investors. Global stock markets have

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faced turbulent times recently on the back of China's slowdown. But,

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one of the regions biggest stock exchange makers, has reported their

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biggest ever profit. Is due to strong trading volumes for the Hong

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Kong stock exchange and it actually soared some 54%. It was over $1

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billion last year. We spoke to the Chief Executive. Our business is

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about trading and if more people are trading happily, or they're treading

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very stressful, as long as they are trading, that is our business. What

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is the outlook of your year given the continued market and economic

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uncertainty? This is a tough year and a tough year for everybody. It

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is challenging and there is no realistic hope that we're going to

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repeat the kind of record wrecking year that we had last year. I think

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the last quarter and the first quarter this year clearly indicating

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a deteriorating market. But I think the market is so bad today that

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almost all the bad news is that you can think of seems to be reasonably

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priced into Dave's market. I don't think other people waiting for these

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jobs. Now the Hong Kong and Shanghai index was forecast strong for 2014

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and at what point will that be expanded and a similar project? It

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will be the expansion of Shanghai in other announcements and that will

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all happen, most likely, with the launch of the company. There's no

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point doing this separately. They need to do this simultaneously and

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push out all the other programme. At this point, we are all pretty much

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ready and it is up to the Chinese regulators to make a decision to

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launch in the coming weeks and months we will be hearing something

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and when we are ready to go. The head of the Hong Kong stock

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exchange. Piracy is a problem for the music industry everywhere and in

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India it is stopped the industry generating the cells that you would

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might expect from a large market. Can the rise of streaming services

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offering legal access that some are prepared to pay make much of a

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difference? We have been taking a look from Mumbai. Music is not just

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this man's passion, it is his career. He has been performing for

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more than 15 year. While he is well-known for his live shows,

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recording a telling that music has been a recent thing for him. I was

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very excited to record music. We were going out doing a lot of wide

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backs because you could see they are consuming there. It is so simple to

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record music and in a minute or two you can put it out there. You put

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your CDs in all the stores in the world. I could most musicians, he

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does not have a deal with the music label. But the growth of online

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streaming industries has helped them work independently. I's music

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industry was worth an estimated $155 million last year, more than half

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comes from digital forms of music like streaming and download. About

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20% comes from sales of CDs and vinyl is, a sector that has seen a

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huge drop in the last few years and the rest comes from payments from

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music played on radio, television or public spaces. But musicians face a

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problem. The world of Bollywood doesn't just own film but music as

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well. All the best selling tunes have been from film soundtracks and

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so historically it has only been Bollywood music that is made money.

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Hoping to make a broader range of music popular and profitable, our --

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our firms like this one. They are similar to other better and known

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global names like spot -- Spotify. By offering an affordable

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alternative than downloading music illegally it expects to grow fast.

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The mainstream market has the most potential anywhere in the world not

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only because of the population of India, but the scale of mobile phone

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sales and smartphone sales. Music tracks with that almost 121. They

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need to come over the customer reluctance to play for subscriptions

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if they going to fully realised the country's potential. Very quickly to

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the markets they are all high here in Asia. That is it for this edition

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of Asia Business Report. Thank you for

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