12/05/2016 Asia Business Report

Police say there's a real and serious threat

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

Japan's Sharp undertakes a massive restructuring. Is it enough? And

sacred cows. India is widening its ban on beef. Hello, Asia, good

morning, world. I am Rico Hizon. Thank you for joining us. We start

off with Sharp. The giant has been making headlines for the wrong

reasons. It is expected to announce a loss of a whopping 3 billion US

dollars in the last financial year. They have reached a deal to be taken

over by a Taiwanese company. I asked an analyst if they will keep the

company together or spit it up when it takes full control this October.

That is hard to predict. It depends on how the world develops and the

demand. The problem is that Sharp was hit by a reduction of sales of

smartphones and a slowdown in China. It was hit by external circumstances

in addition to internal trouble. Staying with Japan. Mitsubishi

motors and Nissan have confirmed they are in talks for a unison.

Nissan will take a one third stake to become the biggest holder of

shares. The company admits that it has been cheating on its fuel

economy tests for the D5 years. -- 25. Has been a lot of focus on Saudi

Arabia and its state oil company Aramco. They will become the

world's most valuable company. It produces 10 million barrels of oil a

day, one eighth of global supply. The rulers want to diversified the

economy. Doesn't mean there will be less oil from Saudi Arabia? --

diversify. We report from an if an city. -- from an eastern. Welcome to

the empty Quarter. One in every eight barrels of crude oil comes

from underneath the sands of Saudi Arabia. It is rare to be invited

here. The state-owned oil company and its Chief Executive is on a

charm offensive. It is offering up a slice of the world's of valuable

company to encourage future foreign investment in other companies. This

is the south-eastern outpost of the sprawling empire which now wants to

sell a slice off to foreign investors. Why now do they want to

sell the family silver, change the oil regime and strategy, and

diversified the Saudi economy after all these years? -- diversify. It is

to widen the infrastructure -based. Is this because of the arrival of US

shale? Is it because we are looking at a future of hydrocarbon and

electric cars? Is it worrying that you have so much of this stuff in

the ground one day you will not be able to sell it? We have more energy

resources coming. Electric cars, renewables, but they are starting

from a small race. There are still many challenges. -- small base. Or

you'll will play a major part in the world for a long time. -- oil will.

These people agree that something has to change. TRANSLATION: The

youth have no work even though they have degrees. They stay at home. And

older men are retired like us. God willing I want a job in a shop and

to get married and have children and later, after I retire, I want them

to be comfortable and have a place to live. Make no mistake,

diversifying does not mean producing less oil. It will probably produce

more this year than last year. Why, when it produces lower prices in the

world? It doesn't matter whether they produce them at low prices

today because they are not saving it up for high prices tomorrow. They

have to continue to produce regardless of the price. That is

because, in effect, an you can regard their reserves as Internet.

No relief in sight for competitors like the North Sea. -- as infinite.

The oil will keep coming. People in men in China are gathering for a

competition to test Internet security. -- people in China. These

are teenagers from across China meeting here in the gaming capital

of Asia, perhaps the world as well, and, as you say, for them, it is a

game. This is about breaking rights. -- bragging. For China's

Internet giants, though, those that produce platforms and hardware, far

more is at stake when it comes to Internet security. Their credibility

is on the line and the vulnerability of the product lines is being tested

here. I spoke to one of the organisers who is also keen to

address the issue of whether China is moving away from this copy in

culture and becoming a culture of home-grown innovators. -- copying.

When it comes to things like hardware and smartphones, he

believes that when it comes to security China has a long way to go.

TRANSLATION: From our research results, most of the smart devices

have very low safety security. These new companies did not put much

investment in terms of security. They are more focused on hardware

development and many factoring. -- manufacturing. China has also been

in the headlines because they have been accused by some Western

countries by hacking into some of their major websites. I asked some

people it China has the best hackers in the world. -- if. One person said

China is a humble country and he believes it is the Americans and the

Israelis that lead the world. But this is proof that China is trying

to increase its skill in cyber warfare. One thing I will be

interested in is asking some of the competitors if they will be willing

in the future to not just share their findings on vulnerabilities

with companies like Microsoft and Adobe, but also, the Chinese

government. We will see. India is one of the world's largest exporters

of beef but with Hindus believing Couser sacred killing them has been

banned in the country for a long time. -- cows are. It comes from

other types of cattle. But in some states they are broadening the ban.

Some of the lowest earners are being affected. We report now from there.

Cattle sold at this market used to be in high demand. Customers, mostly

butchers, would turn up in huge numbers to buy bulls and oxen to

slaughter and sell as beef. It helped them get around the law of

killing cows. But last year legislation was widened to include

cows likely that all. They rely on these to make a living.

Traditionally, farmers would sell their cattle to butchers in a market

like this and use that money to live seeds and fertiliser to grow crops.

That is ahead of the rainy season which starts in June. Once that is

over they would buy them again from the profits earned in the harvest

period. The blight has been made worse by years of drought which has

made growing crops next to impossible. So, with no money to

feed the animals and no water either, many cattle farmers now

depend on temporary shelters like this one. MOOING. They have

justified the ban saying that balls and oxen are necessary for

agriculture. -- bulls. But some politicians want a rethink.

TRANSLATION: India is an agrarian society and most farmers rely on

cattle for growing farm. All of them know that cows are sacred. But they

are of no use when they become old. That is why farmers should be able

to sell them to butchers when they are old. Farmers here are getting

ready for the monsoon season which they hope will bring rain and some

respite. Even if they can grow crops this year, they say only income from

livestock will make long-term farming realistic. Before we go, a

quick look at Asian markets. Currently it is in negative

territory. Macy's earnings providing worries about the industry. The yen

is strengthening against the US dollar overnight. The All Ords Index

losing 4%. As for Wall Street, the Dow and the NASDAQ losing over 1%

overnight. Thank you for joining us us. I am Rico Hizon. -- us. Sport

Today is