17/05/2016 Asia Business Report


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


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


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


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


their heart is? We look at an alternative investment currently


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


aggressively saying they still believe in the company. It is


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


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


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


restrictions are getting ever more strict even though the market is


getting ever more lucrative and attractive. Backing local


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


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


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


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


company. He has traditionally shied away from technology companies and


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


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


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


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


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


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


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


split into three independent companies. AIG chief Peter Hancock


rebuffed the idea, which was initially suggested in October last


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


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


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


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


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


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


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


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


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


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


major economic priority in Beijing and earlier I spoke with our


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


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


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


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


Shenzen trading link, accessing stocks in Shenzen. These Hong


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


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


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


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


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


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


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


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


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


market crashed and there was a corresponding downturn in Hong


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


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


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


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


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


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


hallmark, the characteristics of doing business, it is about


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


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


political sensitivities surrounding there. Our correspondent on that


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


were the best performing collectable investments in 2015, easily raising


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


for now. You're watching BBC News. The


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


parade for England's


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