19/05/2016 Asia Business Report


19/05/2016

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

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More trouble for Japan's carmakers. Accusations about fuel efficiency

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testing and a major resignation. And a month away from taking office. The

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new Filipino president is boosting the economy with memorabilia. Good

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morning, Asia. Hello, world. I'm Rico Hizon. This is Asia Business

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Report. Thank you for investors time with us. -- investing your time with

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us. We start off with Suzuki. Their trade has fallen 15% on Wednesday.

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It followed speculation that the company was cheating on fuel

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efficiency and emission testing. They used incorrect testing methods

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but rejected suggestions of cheating. This is what the boss had

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to say. TRANSLATION: We apologise that our methods were not in line

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with specified methods. We have determined that our fuel efficiency

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results have no problems. We have notified the ministry of the board

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about our findings. -- Ministry of Transport. It seems, industries are

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making the headlines for all the wrong reasons. -- car. Increasingly

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money in transportation is being funnelled into new technologies from

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new applications to clean cars. The taxi versus ridesharing apps.

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Defence he and electric car? You waiting for the day when your car

:02:14.:02:18.

will do the driving for you? These are transportation technologies.

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They are tracking big money. This man has raised $75 million to invest

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in the sector. What is catching his attention? We target four themes

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impacting ground competition. Autonomy, connection, energy

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efficiency, and shared vehicles. We will invest in 15 start-up

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companies. We will invest up to $5 million per start-up companies. We

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have partnered with some of the largest and most advanced

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corporations across the world. Start-ups are good at innovating.

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Vida need much capital to do so. They need corporate partners to

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scale up. When he founded a company to produce batteries for electric

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cars it failed. It didn't shake my faith. It taught me something. What

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I learned was focus. Self driving vehicles will have the largest

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impact on our society and economy since the Internet. Vehicles in the

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US are the second most deadly product behind cigarettes. That is

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even more than guns. You have traffic deaths that will be

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eliminated and you will allow elderly people to be mobile. And

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think about our health-care system if you no longer have hospitals

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dealing with car crashes. While there is a lot of excitement in new

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technology, even some of the smartest ideas can fail. Investors

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in the latest innovations will have to hope they are not being taken for

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a ride. Aston Villa has been sold to a Chinese businessman for 87 million

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US dollars. The takeover is subject to approval by the English football

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authorities. This comes after the central England club's relegation

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from the Premier League after finishing bottom of the table. It is

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being sold at a loss by the American billionaire who bought the club in

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2006 for $90 million. And there is a 60% slide in Petronas. The state

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energy company warned that lower oil prices will hurt future earnings.

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They did Howard plans to cut spending by more than 10 billion US

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dollars. -- detailed. There is another hike in the US on traders

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minds this week. To Federal Reserve policymakers made foolish comments

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about the economy. -- two. We are expecting policy admissions today in

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Indonesia and Malaysia. In Malaysia, it is the first meeting for the new

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Governor. We spoke with an economist to ask what he is expecting. Q1 GDP

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was 4.2%. It is quite low. The lowest since 2009. Still better than

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expected. We do still see some growth in the economy with domestic

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consumption. I think they still holds the cards for now. There is

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the fear that if they do reduce the cost leverage is still quite high in

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the country. That is one of the structural issues that is facing

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Malaysia, the household indebtedness is one of the highest in Asia. Part

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of the consumption driven growth we are seeing has this as the other

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side of it. That is why he will be cautious in looking to cut rates. In

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Indonesia, sub 5% growth is very aggressive. Three times the interest

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rate has increased. Will they cut again or hold? I think they will

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hold. The three rate cuts, they are still waiting to pass through. They

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want them to be passed through to consumers. When will the economy

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really feel these three rate cuts in the first quarter? It will take

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sometimes at the we have seen a pickup in growth, 5.1% this year.

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That is not what Malaysia can trees but what it will in the near term.

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-- achieve. Infrastructure projects are coming through. The government

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is slowly but surely turning things around. Talking about monetary

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policy in Malaysia and Indonesia. The latest economic growth data in

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the Philippines is due out shortly. It will give an insight into some of

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the challenges facing the new president who takes office next

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month. In some quarters, he is already providing an economic boost

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of his own, with solid demand for Duterte Nurrabiel. -- memorabilia.

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T-shirts and mugs. They are all in hot demand. Vendors on this street

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are quick to capitalise on the popularity of their tough talking

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man who will soon be running the country. We came here quickly

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because we were scared it would all be sold out. We want to give these

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away to friends who are campaigning for him. This will help relieve the

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stress and make them feel even better. One enterprising printing

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shop has been busy mass-producing Duterte brand shirts, with his

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nickname, the Punisher. They have a new design called Victory. At $9

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apiece, the patterns are reminiscent of a biker gang, aimed at matching

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his tough image. We used good quality and design on these

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T-shirts. It can be used even after the elections. We are even thinking

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of continuing the signature design because of his performance and

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popularity, and because people like him. He is seen as an uncompromising

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tough guy whose death threats to drug gangs have resonated far beyond

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the town. Small shop owners are having him proved a boon for

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business. -- prove. Thank you very much, Duterte. Our business is

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booming. It is helping our family. And there is plenty of time to sell

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more memorabilia. He doesn't replace the incumbent until he steps down at

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the end of June. Before we go, a quick look at the markets. As you

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can see right now, the Nikkei and the all attend a RBS and positive

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territory. -- All Ords Index. That is before a rate rise. Wall Street

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had mixed results. A potential rate rise in a mind's eye and impacted

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its. -- month's time. And the yen has gone to this number. Thank you

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for investing your time with us. Sport Today is coming up next.

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Goodbye for

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