17/05/2016 Asia Business Report


17/05/2016

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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manslaughter but we had of murder. More from me later but first, he is

:00:00.:00:09.

Asia Business Report -- but cleared of murder. Apple's charm offensive

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in China. Why did boss Tim Cook drop in for a visit and what is at stake

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for the tech giant? And what drives people to put their money where

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their heart is? We look at an alternative investment currently

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outpacing the market. Good morning, Asia, hello, world, glad you can

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join us for this edition of Asia Business Report. We start with Apple

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and Tim Cook, the CEO, has been in Beijing, meeting the head of the

:00:52.:00:59.

largest taxi hailing at. Here he is taking a car to visit an Apple

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Store, just days after the technology that he $1 billion in the

:01:06.:01:12.

company -- app. Apple has faced a raft of problems in recent weeks in

:01:13.:01:17.

mainland China with sales plummeting 26% during the first three months of

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2016, making it one of its worst quarters ever in the mainland. The

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firm also lost a legal battle over its iPhone trademark. While in

:01:28.:01:34.

April, regulators shut down the iTunes movie services. Earlier I

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spoke with Duncan Clark from BDA and asked for his take on Apple's latest

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move in China. It is an expensive taxi ride that he took, but by

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investing in the next generation of apps coming to the fore in China, he

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is taking a gamble, but betting on a new business model of the emerging

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elite. They have had a great time in China, selling devices and content

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through their stores, but they are under pressure. So, backing winners

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in the next round of evolution is what they will try now. Trying to

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diversify. What are the acquisitions will he be doing in China after this

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taxi app? There are other app developments. And of course, DD is

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backed by Alibaba, so it is a good place to start. He is tipping off

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his hat to Chinese developers. It is recognition that and other Silicon

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Valley is rising in the east, in China, and Apple have to play a new

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game. Some investors are worried and yet we've seen more coming in

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aggressively saying they still believe in the company. It is

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developing a second act in China. ITunes movies have been blocked in

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China. He will meet with government officials. Will he be able to get

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back these apps in China? It will be difficult. Chinese content

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restrictions are getting ever more strict even though the market is

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getting ever more lucrative and attractive. Backing local

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players... If you think back to when Yahoo may be billion-dollar

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investment in Alibaba in 2005. It paid off big time. Apple will have

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to take bold measures to sustain its position. Staying with Apple and the

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billionaire investor Warren Buffett has bought a $1 billion stake in the

:03:29.:03:35.

company. He has traditionally shied away from technology companies and

:03:36.:03:40.

is more widely known for buying what he calls value stocks. The purchase

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is seen by many as a significant one for Apple. The tech company's shares

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losing some 30% over the last year but they jumped overnight by almost

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4%. And weeks after loading his stake in Apple, Karl I can has

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picked up shares in AIG. The activist investor has raised his

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stake in the insurance giant, 5.2%, now owning 44.4 million shares. The

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latest move places him in a stronger position to pressure the insurer to

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split into three independent companies. AIG chief Peter Hancock

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rebuffed the idea, which was initially suggested in October last

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year. US energy giant Chevron plans to lay off 800 staff this year from

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its operations in Thailand to combat the fall in global oil prices. Well,

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the move is expected to lead to half $1 billion in cost savings. The cuts

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will take effect this August. The American firm has over 2000

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employees in Thailand, in around 1700 contractors -- and. Earlier

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this year they laid off 100 staff members from offices in the

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south-east of Asia. Hong Kong is preparing for the arrival of the

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third most powerful person in China and the visit is a most high-profile

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visit from Beijing in four years. He will meet with business leaders and

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attend a summit on China's so-called belt and road initiative which is a

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major economic priority in Beijing and earlier I spoke with our

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correspondent for a preview. There is a lot of expectation around what

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he might say at about the Hong Kong - Shenzen trading link. There is

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already a Hong Kong- Shanghai Link, offering access to stocks in China.

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There it is that there will be announcement of the Hong Kong dash

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Shenzen trading link, accessing stocks in Shenzen. These Hong

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Kong-Shanghai Link boosted the stock market in the territory last year --

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Hong Kong - Shenzen. What about this. And road initiative? How are

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we going to explain how the territory will play a major part in

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this plan? There are a lot of questions on how Hong Kong fits into

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this, and obviously the most obvious answer is as a financial centre, as

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you talked about, the sort of gateway to China, that's what Hong

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Kong has been seen as for the last few years. It's not without its

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risks. Of course, at the same time, when Hong Kong was benefiting from

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the uptake in stock in China it also suffered when the Chinese stock

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market crashed and there was a corresponding downturn in Hong

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Kong's fortunes as well. We've also seen the two economies closely

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linked to one another as China slows down. We are seeing the impact of

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that in terms of GDP in Hong Kong, retail sales as well have been

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affected as a result of the slowing consumption coming out of China, but

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with regards to the one belt-1 road, people are taught about corporate

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governance, where people can stand up and say, look, we have been the

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hallmark, the characteristics of doing business, it is about

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corporate governance, and activists are calling for this to be a major

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theme at the conference but it is feared that it won't be because of

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political sensitivities surrounding there. Our correspondent on that

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visit to Hong Kong and the one belt and road initiative. Classic cars

:07:31.:07:34.

were the best performing collectable investments in 2015, easily raising

:07:35.:07:39.

past art, wine, diamonds and other big-ticket assets. According to one

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report, the value of classic cars rose 70% last year. Is this activity

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limited to only the very rich? Our correspondent met with an investor

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to find out. Hello, my name is Alt Ashi and I am passionate about cars.

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I am going to show you my collection. This 1929 Rolls-Royce,

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once owned by a maharajah, to another owned by John Lenin, Al

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Dashi is so India's cars he has built a showroom on his property in

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Malaysia. What an amazing collection of cars. You are obviously very

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passionate about them. When did you decide you were going to go from

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someone who was interested in cars to be coming a serious collector of

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cars? At the age of 30 I had around eight cars and from there on I

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started collecting the real cars and variable winds and now I have ended

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up with around 24. I will take you for a ride on this one. This is a

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very special car. It was registered on the day I was born. It is as old

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as you. Exactly. How do you decide you will buy something? Do you

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assess the value of the car before buying it? I look at the cars that

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have investment retention and I buy the cars that are collectors and

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what people around the world appreciate keeping. But most of the

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time it is just the shape of it and the beauty of the car that it's me

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going. If you are thinking of investing in one of these classic

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cars, take part in the fact that over a 10-year period you can make

:09:30.:09:35.

nearly twice as much on cars like these than over collectables like

:09:36.:09:39.

art or wine. But as with any investment you got to be careful.

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Before you walk into the showroom, do your homework. Find out about

:09:46.:09:49.

specific cars, the chassis number and the history of the car. In fact,

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if you can speak to previous owners, CED has participated in events.

:09:56.:09:59.

Whatever you do, don't buy a car off a win -- CE of it has participated

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in events. Fine tuning one of these cars has to be factored in. The cost

:10:06.:10:09.

of repairs can quickly run into thousands of dollars, but that is

:10:10.:10:14.

not bringing Al Dashi's interest in cars to Esk reaching halt, he, like

:10:15.:10:18.

other vintage car collectors, seem content to burn through a lot of

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cash to fuel their passions even if it doesn't always drive up returns

:10:23.:10:29.

-- see if you. Beautiful cars. Thank you so much for your time. Goodbye

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for now. You're watching BBC News. The

:10:32.:10:47.

headlines: One quarter of a million people have attended a victory

:10:48.:10:50.

parade for England's

:10:51.:10:52.

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