20/07/2016

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:00:00. > :00:00.Motocross live to Singapore for the latest business news. -- let's cross

:00:07. > :00:17.live. It is all about the cloud.

:00:18. > :00:26.Microsoft's earnings exceed expectations despite slowing. And

:00:27. > :00:33.Chinese courts, with a new approach to get people to pay their debts,

:00:34. > :00:41.putting their names and pictures on a screen for all to see. Good

:00:42. > :00:47.morning, Asia, hello world. It's Wednesday. Glad you could join us

:00:48. > :00:50.for Asia Business Report. We have some good news for you about

:00:51. > :00:55.Microsoft, which reported substantial growth in its cloud

:00:56. > :01:04.competing business. Offered are up some $3.1 billion, and that is far

:01:05. > :01:08.better then the reports for the same period last year. Shares rising 3%

:01:09. > :01:13.in after-hours trade. The firm made news headlines lately with its

:01:14. > :01:17.recent acquisition of LinkedIn. Is Microsoft on the right track? I put

:01:18. > :01:22.that question to an industry analyst. What they have done is

:01:23. > :01:27.pivoted the company away from phones into the cloud. That has really paid

:01:28. > :01:31.off dividends. The cloud is where it is. Lots of businesses are trying to

:01:32. > :01:36.make sure they have backup capabilities and want to make sure

:01:37. > :01:38.their sales team and people in the field can access documents and

:01:39. > :01:42.information and be able to do calculation is on the spot on their

:01:43. > :01:48.tablets and phones. They are doing that to the cloud. Asia has been a

:01:49. > :01:55.big part of that growth. It has grown 102%. So it is basing it on

:01:56. > :02:01.business and in the cloud? Heavily on the cloud. What about LinkedIn? A

:02:02. > :02:06.huge acquisition. When is it likely to contribute to the bottom line of

:02:07. > :02:12.Microsoft? It takes a while to fully get digestive. That is the next

:02:13. > :02:16.quarter or two. Crucially I think that fits into this enterprise page.

:02:17. > :02:23.They have barely 3000 enterprise customers. It has been a strong

:02:24. > :02:30.growth for them. LinkedIn, with its focus on people's CDs, for

:02:31. > :02:35.professional executives and so one, that fits into that picture -- CVs.

:02:36. > :02:40.You don't think LinkedIn will be a flop like no cure? They have been

:02:41. > :02:43.profitable in their own way, so certainly they want to keep it at

:02:44. > :02:47.arm 's length and keep it as a support unit with its own creativity

:02:48. > :02:54.and drive -- Nokia. They did not do very well with the integrated

:02:55. > :02:57.company a few years ago, but everybody does revert to LinkedIn

:02:58. > :03:03.when you want to connect with people. In other business days,

:03:04. > :03:07.three US states, New York, Massachusetts and Maryland are

:03:08. > :03:11.taking legal action against Volkswagen in the wake of the

:03:12. > :03:17.emission scandal. The company is accused of using defeating devices

:03:18. > :03:21.in a widespread conspiracy and a cunningly cynical fraud committed by

:03:22. > :03:24.all levels of VW management. The company said the allegations were

:03:25. > :03:30.not new in the carmaker had been incorporated with US authorities. --

:03:31. > :03:35.cooperating. It has been a month since the Brexit vote and the

:03:36. > :03:38.International Monetary Fund says it will dent the world economic Outlook

:03:39. > :03:45.and has downgraded its forecast for global growth to 1% for this year

:03:46. > :03:53.and 3.4% in 2017 -- throughput 1% this year. The IMF is looking at how

:03:54. > :03:59.this forecast downgrade is also for Britain itself. This is the IMF

:04:00. > :04:10.chief analyst. We would have upgraded our global growth forecast

:04:11. > :04:17.in 2017. It would have been at 3.6% instead of 3.5% that we forecast in

:04:18. > :04:25.April. Now we are at 3.4%. That is a fairly substantial libel affected

:04:26. > :04:31.for 2017 -- global ethic. Half of the year is already over. There is

:04:32. > :04:37.some negative effect, but it is not as big. That was the IMF chief

:04:38. > :04:42.economist. Now from London to New York, gamers have been chasing a

:04:43. > :04:47.Pokemon Go character. Look at this. It sparked a stampede in the middle

:04:48. > :05:00.of Central Park in New York. People running around in the middle of

:05:01. > :05:10.London looking for Pikach, S, or Charmander. Nintendo shares continue

:05:11. > :05:15.to rise. The firm is now worth $42.5 billion, and that is more than

:05:16. > :05:20.Sony's market cap will stop there are rumours of an imminent launch

:05:21. > :05:26.soon in Japan and for the rest of Asia. China's banks have written of

:05:27. > :05:31.hundreds of billions of dollars in bad debts, analysts say there are

:05:32. > :05:34.plenty more in the system will stop to fight the rising tide of people

:05:35. > :05:39.and companies not paying loans, they have come up with a new approach.

:05:40. > :05:47.It is naming and shaming Chinese style. For ten days, the names,

:05:48. > :05:51.identification numbers and even addresses of people in debt were

:05:52. > :05:55.flashed across screens at two of Shanghai's main role way stations.

:05:56. > :06:00.It is hard to miss. Even though sometimes the amount owed is as

:06:01. > :06:04.little as $300 -- railway. As growth slows in China, many people are

:06:05. > :06:10.finding it hard to to repay their loans. With too many cases into few

:06:11. > :06:15.judges, normal enforcement methods like freezing assets also in them

:06:16. > :06:21.off not working. So the courts are shaming tactics to try to get some

:06:22. > :06:23.of that money back. They hope the public will call in with clues to

:06:24. > :06:28.help the authorities track down people Internet.

:06:29. > :06:31.TRANSLATION: It is the offender who first violated civil procedures, and

:06:32. > :06:35.then the court made public his photo or information. This means what the

:06:36. > :06:40.court did does not constitute a privacy invasion. It is the offender

:06:41. > :06:45.who is problematic and broke the law. His behaviour should be known

:06:46. > :06:49.by the public and society. So the public can be careful and avoid

:06:50. > :06:54.doing further business making contact with such dishonest people.

:06:55. > :06:57.It is a warning and a reminder to others in society, which I think is

:06:58. > :07:01.pretty good. Not everyone feels the same way.

:07:02. > :07:06.TRANSLATION: The exposure of some personal information including names

:07:07. > :07:11.and photos disrespects personal privacy. I can understand that the

:07:12. > :07:16.may know not have a better way of solving the problem. This method is

:07:17. > :07:20.perhaps a temporary measure. I hope the court would use better ways and

:07:21. > :07:24.replaced this disclosure of information. The government says

:07:25. > :07:29.more than 3.4 million people have had their information released to

:07:30. > :07:34.the public. Only 10% of them have paid up. But it is not just about

:07:35. > :07:39.having your name in lights. Determined Chinese court can also

:07:40. > :07:40.stop debtors from going on holiday. Sending their children to private

:07:41. > :07:51.school. Or renovating their houses. India is currently the fastest

:07:52. > :07:54.growing Asian economy in the world but five years ago it was a very

:07:55. > :07:58.different story. Growth had slowed, and many businesses could not pay

:07:59. > :08:04.back money that they had borrowed. But it the country's banks very

:08:05. > :08:10.hard, and still swamped with bad debts. It is showing signs of trying

:08:11. > :08:20.to help lenders. For a few years, Kingfisher was the

:08:21. > :08:25.star of Indian aviation, but when went bust in 2012, it was just

:08:26. > :08:29.passages that suffered. India's banks, which loaned money to the

:08:30. > :08:33.business, are still owed more than able young dollars, and selling

:08:34. > :08:36.assets like this building, which is to be the Kingfisher headquarters,

:08:37. > :08:42.is still proving difficult! $1 billion. Companies not paying what

:08:43. > :08:45.they owe has badly hurt the probability of Indian banks,

:08:46. > :08:52.including the country's largest, the State bank of an year. Between 2013

:08:53. > :08:55.and 2015, publicly owned banks had to write off $17 billion of bad

:08:56. > :08:59.debts, most of which were loans. Until recently, lenders had to go

:09:00. > :09:04.through a long and difficult process to recover debts. Selling assets of

:09:05. > :09:10.defaulters had to go through several financial agencies. On average, it

:09:11. > :09:14.takes four years and three months to sort out bankruptcy debts in India.

:09:15. > :09:20.This is where longer than the US, UK even neighbour Pakistan. But India

:09:21. > :09:25.now has a new bankruptcy law expected to change all of that. It

:09:26. > :09:30.promises speedy resolution with payments made within 180 days from

:09:31. > :09:34.the first evolved, and a single regulator monitoring the whole

:09:35. > :09:38.process. The country's central bank believes the new legislation will

:09:39. > :09:46.help India's banking system immensely. The ability to recover

:09:47. > :09:52.from failed projects has increased tremendously over the last few years

:09:53. > :09:57.as a consequence of this legislation, and when it is rolled

:09:58. > :10:01.out fully, we will have a modern first world resolution process. The

:10:02. > :10:06.new law should make investing money in Indian companies less risky, and

:10:07. > :10:11.has the potential to help India's economy. Good news for investors,

:10:12. > :10:19.and at the. But only if the rules are in fermented strictly and as

:10:20. > :10:25.quickly as promised -- implement it. Before we go, it is a weak start to

:10:26. > :10:29.be Wednesday trading day for the regional markets. Investors take

:10:30. > :10:37.offered. Thank you for investing your time with us. I'm Rico Hizon.

:10:38. > :10:39.Goodbye for now. -- investors take profits.