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The Prime Minister has described Wood | :00:00. | :00:00. | |
Now on BBC News, all the latest business news live from Singapore. | :00:00. | :00:15. | |
Cheating on its tests. We look at the fallout from Mitsubishi's | :00:16. | :00:21. | |
admission that it falsified fuel efficient data. | :00:22. | :00:28. | |
KFC sales in China used in profits, but it is going ahead with the | :00:29. | :00:30. | |
sell-off of its local operations. Good morning. It is Thursday. Glad | :00:31. | :00:35. | |
you could join us. We start with Mitsubishi. The | :00:36. | :00:50. | |
Japanese car manufacturing giant has admitted to falsifying fuel economy | :00:51. | :00:55. | |
data to make its emissions look more favourable. This is the company's | :00:56. | :01:00. | |
president apologising in the traditional Japanese way. The news | :01:01. | :01:07. | |
is wiping $1.2 billion off its market value on Wednesday and | :01:08. | :01:14. | |
currently the stock has a lot of sellers, but not enough buyers. So | :01:15. | :01:19. | |
will investors be more forgiving and how damaging the B for his | :01:20. | :01:26. | |
company's reputation. -- will it be. Some say it will have a | :01:27. | :01:34. | |
detrimental impact but it isn't as impactful as the VW scandal. The | :01:35. | :01:40. | |
number of vehicles in fact it is far lower. I would say it is a lesser | :01:41. | :01:52. | |
scale, compared to Volkswagen. But Mitsubishi is not in the best of | :01:53. | :01:57. | |
shape financially. How damaging be to their bottom line going forward? | :01:58. | :02:07. | |
I think, as you said, there are $1.2 billion off their market cap. They | :02:08. | :02:12. | |
will have to rebuild confidence. The reputational damage is massive. | :02:13. | :02:19. | |
That's what will hurt them the most. There will be legal risks, they will | :02:20. | :02:23. | |
take it. But the reputational damage is long-term and that is what will | :02:24. | :02:28. | |
impact them the worst. Their competitor was the one that | :02:29. | :02:33. | |
discovered this falsification of data. Could they also be affected by | :02:34. | :02:38. | |
the fallout from Mitsubishi? They must be having some kind of | :02:39. | :02:42. | |
arrangement, because these vehicles were assembled by Mitsubishi. So I | :02:43. | :02:46. | |
am sure they would have some legal agreement to pass on. To that extent | :02:47. | :02:58. | |
Nissan's damage is less, but Mitsubishi needs to pick up the bill | :02:59. | :03:01. | |
for whatever they have done. This also impacts that Japanese car | :03:02. | :03:08. | |
industry, even though the likes of Toyota and Honda are not included in | :03:09. | :03:13. | |
this scandal. Could they also be impacted in one way or another? If | :03:14. | :03:22. | |
you bought the car now you would probably ask ten more questions | :03:23. | :03:25. | |
before you do it. Because it is done in a manipulative way, that's what | :03:26. | :03:31. | |
are the most. That was an auto analyst. In other news, lower | :03:32. | :03:37. | |
first-quarter earnings have been reported off the back of weaker gold | :03:38. | :03:43. | |
and copper prices. The US -based Newmont group is the world's second | :03:44. | :03:46. | |
biggest gold miner by market value and it says its income is down from | :03:47. | :03:54. | |
one year ago, but still well ahead from expectations. Results were | :03:55. | :03:58. | |
helped by higher production and lower costs. | :03:59. | :04:06. | |
Shares in the owner of off KFC says they are up I nearly 4% after the | :04:07. | :04:09. | |
company reported better than expected quarterly numbers in New | :04:10. | :04:18. | |
York. -- up I nearly. The Chinese company was tightlipped about the | :04:19. | :04:23. | |
progress of its planned sale of its local operations. Here is our New | :04:24. | :04:29. | |
York correspondent. The US investors greeted its latest | :04:30. | :04:34. | |
earnings release with enthusiasm. Shares rose some 5% in after-hours | :04:35. | :04:39. | |
trading, here in New York. Investors may have been especially pleased | :04:40. | :04:44. | |
with the news from China. The Chinese division, which has | :04:45. | :04:47. | |
struggled with everything from food scares to falling market share, has | :04:48. | :04:52. | |
seen store sales grew 6% compared with one year ago. It's huge KFC | :04:53. | :04:57. | |
operation did especially well. The performance of that business is | :04:58. | :05:03. | |
likely to strengthen the hand in negotiations with potential buyers. | :05:04. | :05:06. | |
China investment Corp is leading a group of investors reportedly in | :05:07. | :05:13. | |
talks with Yum about buying a large stake or even complete ownership of | :05:14. | :05:22. | |
the unit. Yum isn't ready to give any details about such a deal yet. | :05:23. | :05:26. | |
Other than to say it is making progress with the plans to spin off | :05:27. | :05:30. | |
the Chinese business first announced last year. | :05:31. | :05:35. | |
While companies like Yum are planning to open more stores in | :05:36. | :05:39. | |
Asia, many other Chinese companies are focusing their expansion plans | :05:40. | :05:43. | |
on the West. But what are they buying and what does it tell us | :05:44. | :05:47. | |
about the direction of the economy? How Asia business correspondent | :05:48. | :05:56. | |
filed this report. -- our Asia. Everyone loves a good bargain and as | :05:57. | :06:00. | |
economies in this part of the world slowdown prices have fallen as well. | :06:01. | :06:05. | |
Which is one of the reasons why Chinese companies have been on a | :06:06. | :06:08. | |
massive global shopping spree of, spending $80 billion buying up | :06:09. | :06:13. | |
companies all over the world in the first three months of this year | :06:14. | :06:18. | |
alone. That's at more than 300% in value terms. A record, but even in | :06:19. | :06:22. | |
terms of volume the number of deals signed is up 51%. So, to put it | :06:23. | :06:28. | |
simply, Chinese companies are buying up a lot more stuff this year than | :06:29. | :06:33. | |
they have in previous years. But how are they slicing up the sectors? | :06:34. | :06:37. | |
Nichols, consumer businesses and real estate stuck up the top. -- | :06:38. | :06:44. | |
chemicals. Part of that is skewed by a state owned firm's takeover of an | :06:45. | :06:49. | |
agricultural company, worth some $43 billion. It is also a sign of how | :06:50. | :06:54. | |
China's economy is transforming. It is a change in the Chinese economy, | :06:55. | :06:58. | |
more towards a consumer driven economy, a services orientated | :06:59. | :07:02. | |
economy and probably also a reflection of the growth of the | :07:03. | :07:06. | |
middle class. Europe and the EU saw the biggest inflow of Chinese money, | :07:07. | :07:09. | |
some 35% of their share. But again that's because of the agricultural | :07:10. | :07:15. | |
deal. Asia also saw similar action, despite the political tension China | :07:16. | :07:18. | |
has seen with neighbours in this part of the world. I think there's a | :07:19. | :07:22. | |
pragmatism to the investment direction. I think there is a | :07:23. | :07:25. | |
reflection of a longer term strategy, so a lot of those | :07:26. | :07:28. | |
geopolitical issues arise from time to time. China's economic growth | :07:29. | :07:34. | |
strategy, the one gold, one road strategy is a lot more long-term. As | :07:35. | :07:43. | |
you came, Chinese companies are stepping -- snapping up assets all | :07:44. | :07:47. | |
over the world to remain competitive. In the face of a | :07:48. | :07:52. | |
slowing domestic economy, this is one way to remain profitable in | :07:53. | :07:54. | |
other markets and if the first three months of this year are anything to | :07:55. | :07:59. | |
go by Chinese companies are set for a record global shopping spree. | :08:00. | :08:07. | |
Here is another opportunity where Chinese buyers are among the | :08:08. | :08:12. | |
potential purposes. -- purchasers. Look at this, an entire town in | :08:13. | :08:18. | |
Tasmania is up for sale. That's 145 hectares. And image you have 35 | :08:19. | :08:22. | |
Highland cattle, the church, a pub and a trout fishing dam and 33 | :08:23. | :08:30. | |
buildings! It was built in the 1920s and 30s for the workers of a nearby | :08:31. | :08:34. | |
hydroelectric power station, but was largely abandoned in the 1990s. | :08:35. | :08:38. | |
Recently the town in central Tasmania has been used for tourism. | :08:39. | :08:44. | |
Now the owner is basically selling up and the interest is global. The | :08:45. | :08:51. | |
manhandling the real estate says there has been an international | :08:52. | :08:53. | |
interest, including a group of Chinese investors who view the site | :08:54. | :08:58. | |
-- viewed the site last week. We've got a group of Chinese heading up | :08:59. | :09:02. | |
there tomorrow. We've had interest from Singapore, as well as Dubai. So | :09:03. | :09:09. | |
the interest has gone worldwide and yes we are certainly getting a lot | :09:10. | :09:14. | |
of coverage. Tell us, what are the current bids for the village? We are | :09:15. | :09:19. | |
expecting somewhere between 11 and 13 million. The actual real estate | :09:20. | :09:24. | |
value of the whole town would be substantially more. The owner is | :09:25. | :09:30. | |
certainly motivated to sell and our expectations are somewhere between | :09:31. | :09:34. | |
that bracket. But there is some concern in Australia about selling | :09:35. | :09:37. | |
off major properties to foreign investors. Will there be any | :09:38. | :09:43. | |
concerns with this one in Tasmania? No, not in Tasmania. The property | :09:44. | :09:49. | |
values are less than the ceiling of around 50 million, which means the | :09:50. | :09:54. | |
purchaser from overseas will probably not be subject to the same | :09:55. | :10:03. | |
approvals. Briefly, when do you think this village will be sold? | :10:04. | :10:07. | |
When will it be signed and delivered? The expressions of | :10:08. | :10:15. | |
interest close on the 19th of May. Hopefully we will receive a number | :10:16. | :10:19. | |
of bids and we should know in a couple of weeks as to whether we | :10:20. | :10:25. | |
have a buyer. Gains for Asian stock markets today after a rise in US | :10:26. | :10:29. | |
equities overnight. Tokyo is up by 1.9%. Korean trade numbers are | :10:30. | :10:34. | |
coming up. Thank you so much for investing your time with us. | :10:35. | :10:44. | |
The top stories this hour: A Norwegian court decides that the | :10:45. | :10:49. | |
authorities have violated the human rights of mass murderer Anders | :10:50. | :10:52. |