12/07/2016 Asia Business Report


12/07/2016

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

:00:00.:00:15.

Before the big split. Better expected quarterly earning.

:00:16.:00:25.

And the alternative solution for trash. We look at technology that

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converts waste into water. Good morning. Welcome to Asia

:00:36.:00:43.

Business Report from Singapore. The world's if aluminium maker has

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kicked off the earnings season in the US again with an -- and has

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exceeded expectations. It posted revenues of $5.3 billion and net

:00:55.:00:59.

income of $135 million, down slightly from one year earlier.

:01:00.:01:02.

Shares were higher than more than 3% in after-hours trading. There has

:01:03.:01:10.

been an upturn in the commodities market. The company is expected to

:01:11.:01:14.

be split into two macro publicly traded businesses before the end of

:01:15.:01:22.

the year. -- two. Earlier I asked whether this is a strong result.

:01:23.:01:28.

Certainly when you look at its last result as a single company it was a

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good one. We did see the company report nine US cents per share which

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was broadly in line with the consensus. At where the market did

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get surprise was that we saw revenues come in at 5.3 billion. So

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they're -- there was some joy taken out of that. We have a look at the

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results themselves they gained about $237 million from cost savings,

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about $50 million from borrowing. So overall as you suggest the market

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was very pleased with the result and I think one thing was that they

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generated about $800 million worth of sales of the 1.2 yen dollars that

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they are expecting and the market will like that figure as well. --

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$1.2 billion. There is an airshow on this week in

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south England, the biggest gathering of the deal for the global airspace

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and defence industry. One country now storming into the market is

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China. It has been developing cut-price arrivals to the airliners

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and drones produced in the West. China wants to increase earnings

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from aircraft building tenfold to $150 billion a year. How can it be

:02:57.:02:58.

so hopeful? Let's have a look. Over the next few days at

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Farnborough tens of millions of dollars of deals are expected to be

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done, so we will review all of the latest from the trade show on BBC

:04:25.:04:27.

News. Malnutrition is still a major

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problem in India so it is perhaps surprising that many Indians are

:04:33.:04:36.

actually overweight. In fact, obesity has become such a concern

:04:37.:04:40.

that one state has now proposed a so-called fat tax on restaurants

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that sell fast food to try to make people more health-conscious. But

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some wonder if it is the best approach.

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Grabbing your favourite pizza or biting into a burger is about to get

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more expensive in this part of India. Terre la fans do impose a tax

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on fast food sold by restaurant chains. -- Kerala. It's a so-called

:05:08.:05:15.

fat tax. Something already tried in places, including Hungary and

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Denmark, to try to put people off eating so much junk food. But

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reactions have been mixed. When people are not taking care of their

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health the government is taking some initiative, so that people go back

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to the food that helps their diet. And diseases are just spreading

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because of the junk food. I don't think it will do much. Because those

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interested will still go after what they want. It doesn't matter. Kerala

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has the second-highest level of obesity and the government is using

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that reason to justify its plan to put an extra tax on restaurants like

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McDonald's, dominoes and Pizza Hut. They say these other things making

:06:05.:06:07.

people fat and they hope I prices will make think twice. But popular

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local dishes, like banana fry, that are high in calories, will not come

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under the new tax rule, which means some are seeing this as an attack on

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multinational food chains, rather than just obesity or other

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illnesses. The government has defended the plan, many food experts

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think that taxing food is not the right approach. I don't think it is

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right. It won't have any impact on the health status of people,

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especially in Kerala. It will just fill the coppers of the government.

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The emphasis should be on awareness. People should be made aware of off

:06:51.:06:56.

the side-effects or bad effects of eating high calorie food. Whether it

:06:57.:07:01.

is what they eat or a lifestyle that lacks exercise, one in five Indians

:07:02.:07:08.

is now overweight or obese. But with access to Western-style fast food is

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still relatively new here, and many still seeing it as a status symbol,

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this is a new tax many will find hard to swallow.

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From fat tax to food waste, because dealing with waste is a huge problem

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around the world, especially acute in small countries like in

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Singapore. Millions of tons of rubbish are disposed each year and

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hundreds of thousands of tons of that is food waste. We have a look

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at one initiative aimed at converting the waste to good use.

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Singapore's most iconic resort is home to dozens of restaurants,

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hundreds of hotel rooms, a casino, shops and a convention centre. And

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all that means loads and loads of food waste. They won't say how much

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food they think is thrown out here every day, but suffice to say it's a

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lot. It is in -- in an effort to combat the problem it has installed

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five food digesters, which are turning some of that waste into

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water. Let's see how they work. We generate a lot of pre- consummate

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Prep food waste because of the volumes we have. Last weekend we had

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14 weddings and we were full house. 2600 rooms filled. Because of that

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we can digests, or we have today just, up to 2500 kg every day of

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clean, segregated food waste. All you have to do is segregated, we

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then put it in a machine and it comes it inside. There are enzymes

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and bacteria cocktail that digests of the food. -- the food. It is like

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a giant, mechanical stomach and the other end comes grey water, or at

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least it will be once the pulp has separated out of it. But elsewhere

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in the city that technology is being taken a step further. The rapidly

:09:12.:09:20.

growing company Eco-Wiz believes it has the edge. A number of items can

:09:21.:09:27.

go in the system, so we use the biotechnology to decompose food

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waste into sterile water and we have our own technology to turn the water

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into reusable water. The water you can either use to water plants or

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you can use it to rinse bins or even mop the floor. We have a customer

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who uses our recycled water to mop their stall. But still the majority

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of Singapore's hundreds of thousands of annual food waste is sent to

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landfill and incinerated. And with clear implications for the

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environment, the push is on for more companies to look for alternatives.

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Let's have a look at the Asian markets this morning. Japan's Nikkei

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is extending the game from Monday, when it rose by 4% because of that

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landslide victory by the Prime Minister in parliamentary elections

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and the promise of further stimulus. That's it for this edition of Asia

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Business Report. Thanks for watching.

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Angela Eagle, the former shadow business secretary,

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