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Now on BBC News, all the latest business news live from Singapore. | :00:00. | :00:13. | |
The global airbag recall widens, Canon Takata weather the financial | :00:14. | :00:25. | |
fallout? As China economy's slows, we look at the changing face of | :00:26. | :00:29. | |
investment is -- investors in Chinese art. Good morning Asia, | :00:30. | :00:40. | |
hello world. It is Wednesday, thanks for joining us for this addition of | :00:41. | :00:43. | |
Asia business reporter, I am Rico Hizon. It is one of the car | :00:44. | :00:47. | |
industry's highest profile global recalls, and Japanese airbag maker | :00:48. | :00:54. | |
Takata is at the centre of it all. Later today the company is expected | :00:55. | :00:58. | |
to announce that it lost money in the second year, and the estimate is | :00:59. | :01:04. | |
a loss of $120 million. That figure does not take into account other | :01:05. | :01:10. | |
major costs it could face from the scandal. He was a look at some key | :01:11. | :01:12. | |
numbers. The final cost to the company is | :01:13. | :01:58. | |
expected to run into the billions of dollars, and Aliir I asked an auto | :01:59. | :02:03. | |
analyst how this is in backing the firm's reputation. Currently they | :02:04. | :02:10. | |
are at the highest recall by Takata globally. The numbers affected are | :02:11. | :02:17. | |
across the next. It is the highest profile recall ever we have seen. | :02:18. | :02:20. | |
The reason why they are going to face more and more financial | :02:21. | :02:23. | |
troubles is that the brands that are doing the recall on behalf of | :02:24. | :02:28. | |
Takata, they will charge back Takata about the cost. That is not | :02:29. | :02:31. | |
integrated into their financial forecasts, and that is the big | :02:32. | :02:35. | |
downside that they have in the profit. At this point it cannot be | :02:36. | :02:40. | |
quantified, the volume of how much this will impact Takata airbags, do | :02:41. | :02:47. | |
you think with this major problem, but the airbag manufacturer is | :02:48. | :02:50. | |
facing, they could close shop? Potentially. Because of the | :02:51. | :02:55. | |
financial trouble, it can happen. Although technology clear that -- | :02:56. | :03:03. | |
technologically they could call back. We have started to see | :03:04. | :03:10. | |
customers turn away from them, and they have re-evaluated whether they | :03:11. | :03:13. | |
should be working with them not. Reputational damage is indeed | :03:14. | :03:17. | |
humongous, could there be a buyer for Takata? I think that is the only | :03:18. | :03:22. | |
way out, because you cannot just close shops, there are so many | :03:23. | :03:31. | |
people working there, so many intellectual property available with | :03:32. | :03:33. | |
the company, so many plants running, so the company could be bought out | :03:34. | :03:42. | |
and other airbag manufacturer. Stay with the sector, the world's biggest | :03:43. | :03:46. | |
car maker, Toyota, is expected to report it and used, its third | :03:47. | :03:50. | |
straight year of record profits. It is estimated to have made $22 | :03:51. | :03:56. | |
billion last year, which is a jump of 8% compared to levels year ago. | :03:57. | :04:02. | |
Its bottomline is likely to have been hit by the strong yen, airbag | :04:03. | :04:07. | |
rentals and last month's earthquakes in Japan, which disrupted | :04:08. | :04:11. | |
production. -- recall. It is turn our attention now to the world's | :04:12. | :04:18. | |
biggest oil exporter Saudi Arabia, and its state-owned giant Aramco. | :04:19. | :04:20. | |
The company's what has been finalising plans for by, after the | :04:21. | :04:27. | |
state government said it wanted to rely less on oil and diversify its | :04:28. | :04:37. | |
economy. The BBC was invited to the company's headquarters and sent this | :04:38. | :04:43. | |
report. This is a south-eastern outpost of Saudi Aramco's sprawling | :04:44. | :04:48. | |
energy empire. An empire they now want to controversially sell a slice | :04:49. | :04:51. | |
of to foreign investors. But why now? We have seen volatility in the | :04:52. | :04:56. | |
oil market before back in 1998, oil prices were below $10 a barrel. In | :04:57. | :05:01. | |
2007 they were $147. What makes this juncture different? Is it because | :05:02. | :05:05. | |
they want to put the Americans out of business with their industry, is | :05:06. | :05:10. | |
it that they want to hamstring Iran as it re-emerges into the oil | :05:11. | :05:14. | |
industry, or do they worry that because we are moving towards a low | :05:15. | :05:18. | |
hydrocarbon future, other time they get the stuff out of the ground it | :05:19. | :05:21. | |
will not eat worth much, so let's pump as much of it as long as we | :05:22. | :05:28. | |
can. These are the questions for the Saudi government and Saudi Aramco, | :05:29. | :05:33. | |
Wendy IP comes along it will be worth three apples by some | :05:34. | :05:40. | |
calculation is. They have a lot of people in the country who need | :05:41. | :05:44. | |
something to do, and this industry with its trajectory cannot sustain | :05:45. | :05:47. | |
the young people coming into the workforce. Whatever reason, there | :05:48. | :05:51. | |
are some epic things going on in the oil industry, in this epic | :05:52. | :06:00. | |
landscape. What role does a postal service have in the age of the | :06:01. | :06:03. | |
Internet? That is the question Singapore Post has been grappling | :06:04. | :06:07. | |
with in recent years. It looks like the new strategy is paying off. It | :06:08. | :06:12. | |
posted a record full-year profit of more than $180 million. | :06:13. | :06:18. | |
The humble letter has been going out of fashion for a while, that is why | :06:19. | :06:24. | |
Singapore's mailing service and many others in Asia are looking to | :06:25. | :06:28. | |
reinvent themselves. As more people switch to e-mail, Singapore Post is | :06:29. | :06:32. | |
now focusing on Internet commerce and logistics. It says the average | :06:33. | :06:39. | |
household in Southeast Asia receives just 2-3 parcels per year, compared | :06:40. | :06:44. | |
to 30 in developed nations. That is expected to grow though, which is | :06:45. | :06:51. | |
why it has partnered with China Alibaba group, which has become its | :06:52. | :06:55. | |
second-biggest shareholder. It has not been business as usual in recent | :06:56. | :06:59. | |
months, some of the company's deals have come under scrutiny over | :07:00. | :07:04. | |
corporate governance issues. It is also undergoing a top-level | :07:05. | :07:07. | |
reshuffle, after is Chief Executive and chairman unexpectedly quit. The | :07:08. | :07:11. | |
saga has hit its shares over the last few months as Singapore Post | :07:12. | :07:14. | |
now hopes that its new management is going to send the scandal away. Over | :07:15. | :07:22. | |
the past decade, buying fine art has been one of the most talk about | :07:23. | :07:26. | |
alternative ways to grow your investment portfolio. But the art | :07:27. | :07:30. | |
world has not been immune to the crisis. Last year as the economy | :07:31. | :07:38. | |
showed -- slowed, China's art market dragged significantly. | :07:39. | :07:49. | |
Old or new, big or small. Sometimes, it is in a category on its own. | :07:50. | :08:00. | |
There are plenty of reasons why people buy art. The bottomline, it | :08:01. | :08:07. | |
is often about money. The global market shrank by 7% in 2015, the | :08:08. | :08:13. | |
European fine Art foundation says it is the first contraction in four | :08:14. | :08:18. | |
years. The Chinese market, once the world's number two after the US, has | :08:19. | :08:24. | |
contracted by nearly a quarter. Chinese fund manager has become much | :08:25. | :08:30. | |
more capable about -- careful about where he put his money. Before I was | :08:31. | :08:35. | |
very impulsive. If I thought it was beautiful I would buy it. Now I am | :08:36. | :08:39. | |
much more logical. I will consider its artistic value and artistic | :08:40. | :08:42. | |
content, and also I consider the artist much more. Investors are | :08:43. | :08:47. | |
still buying, but they are looking at younger artists, with great | :08:48. | :08:52. | |
potential, over more established names, says this billionaire | :08:53. | :08:55. | |
collector. Collectors become much more cautious, but also more | :08:56. | :09:01. | |
sophisticated, as a result, they do more research, they want artists who | :09:02. | :09:08. | |
have full credentials, who had exhibitions in museums, instead of | :09:09. | :09:10. | |
being more impulsive in speculating, they are actually more | :09:11. | :09:16. | |
for a longer term collection. Auctioneers have been hit even | :09:17. | :09:23. | |
harder. The once booming auction market has been directly affected by | :09:24. | :09:26. | |
the slowdown. Both sales and the number of works being offered by top | :09:27. | :09:32. | |
Chinese artists have halved in the last year. To boost interest, | :09:33. | :09:38. | |
auction houses like Sotheby's art offering blockbuster pieces by | :09:39. | :09:44. | |
eminent artists. Sold! After furious bidding, the hammer comes down on a | :09:45. | :09:48. | |
record price. Even in tough times, the best still sells. But you have | :09:49. | :09:55. | |
to pick your market. Let's have a look now at the markets, and so far | :09:56. | :10:00. | |
so good, a positive day the Asian share prices. In early Wednesday | :10:01. | :10:05. | |
trade after US equities surged to their biggest gain in two months | :10:06. | :10:08. | |
after the Chinese commitment to stimuli at the economy, the Nick | :10:09. | :10:19. | |
Hayes surging -- the Nikkei. On Wall Street, the key industries were | :10:20. | :10:23. | |
gaining as well, by 1.3%, led by energy stocks, chemicals and | :10:24. | :10:28. | |
machinery companies. A great day for the markets, think if your time, | :10:29. | :10:33. | |
have a great Wednesday, I Rico Hizon, by far now. -- by now. | :10:34. | :10:41. | |
this hour. US officials say President Obama | :10:42. | :10:45. | |
won't apologise for the bombing of Hiroshima, when he makes a historic | :10:46. | :10:48. | |
visit to the Japanese city later this month. | :10:49. | :10:51. | |
The British Prime Minister has been overheard describing Nigeria and | :10:52. | :10:55. |