27/07/2016 Asia Business Report


27/07/2016

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arrangements following the attack in front. However, counterterrorism

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officers insist there is no specific intelligence to suggest imminent

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attack. Now, let's go to Singapore for the business news live. Our

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phone users hanging up on Apple? Attacked I impose a drop in sales

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for the second straight quarter. -- detector imposes. And the bitter

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taste in the world is the biggest sugar market. -- the tech giant

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imposes. Good morning Asia, hello world, it is a Wednesday, glad you

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can join us for this edition of Asia Business Report with me, Rico Hizon.

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Tech darling Apple boasting 27% drop in net profit for the second quarter

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which came in at just under $8 billion. Revenue also falling by

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nearly 15% with a slump in earnings due to lower sales in iPhones, but

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it wasn't as bad as the market feared. Our correspondent has the

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details in New York. The iPhone, it is still Apple's peak Moneymaker,

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accounting for two thirds of its revenue. Its importance to the

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company's bottom line cannot be overstated and the company remains

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the world's most profitable consumer electronics company by a substantial

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market margin. In 2016, the headline for Apple has been the declining

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popularity of its flagship product -- margin. But for all the sharp

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declines, Apple's performance was still better than expected in the

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last three months. And that, of course, was welcome news for

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investors. So, the question is what happens now? Customers and investors

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are looking forward to September when the iPhone seven is released.

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Apple expects to sell between 45 and 47 million iPhones in the next

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quarter. That is a sign that it really believes the decline in

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iPhone sales will be reversed. And in after-hours trading in the US,

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Apple shares up by 7%. Twitter has also been reporting earnings and the

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microblogging site is seeing its slowest growth in quarterly revenue

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since its share sale in 2013. The company is facing some tough

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competition from other social media platforms, like Instagram and

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SnapChat, but its number of monthly active users rose by 3%, and that is

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an important gauge for advertisers. Earlier, I spoke with an analyst

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from a technology market research company, and first asked if Twitter

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needs to change its corporate strategy in light of the competitive

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industry. Twitter is making some changes to the way it counts

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characters and links with pictures and videos won't longer be added.

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What it's doing with live streaming with partnerships with NFL, MBA,

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showing democratic and republican debate on Twitter, live with feeds

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and commentaries on the site, I think that is the step forward

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Twitter is taking -- NBA. It is a strong step forward but we need to

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see whether that is going to make revenue or generate advertising. So

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do you think eventually with all of these challenges for Twitter, it

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could be a takeover target? Yesterday we saw the search engine

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of Yahoo being bought by Horizon. Could it be a takeover target? It

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could as well be, if anything, the Microsoft linked acquisition, and we

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have huge companies like Google looking for more and more revenue.

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Twitter could be a very good target for Google, especially with chat

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pots and artificial intelligence coming in and the huge Twitter

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-based that Twitter has could serve as a key metric for acquisition --

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chat bots. India's government is still deciding who will be the next

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head of the country's central bank when the current governor leaves

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this September. Mr Rajan hinted he was hoping for a second term but

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talks with government made him decide against it. So, should he

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have been encouraged to state on? Our correspondent speaks with his

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predecessor. The economy would have been better served had he continued

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to see through the implementation of all the reforms and initiatives he

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started and it's disappointing that he is going away at this point in

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time -- stay on? There are many who now think that because Rajan was

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very outspoken, sometimes he would criticise government policies, he

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has also spoken on issues outside the monetary policy, that was also a

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reason why the government wasn't keen to give him a second term. Do

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you think that the reserve bank governor could stick just to the

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monetary policy and he or she shouldn't be commenting outside

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that? No, I don't believe in that point of view. Traditionally,

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normally, governors have spoken to issues within the domain of the

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central bank, but they have been -- there are being examples of this

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occurring beyond the domain of the central bank, so I don't think there

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should be any code of conduct on what they can do. The world is

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running short on sugar and tighter supplies have driven prices at their

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highest levels in almost four years. It started with a slow harvest in

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Brazil but now India faces falling production as well. Our

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correspondent has the details from Delhi. This is a business that

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depends on sugar. This woman uses about 90 kilos of the sweet stuff

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per month on whether it is in her cake mix or the icing. And as the

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price of sugar has gone up, so too has costing. It is a rise that

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customers might have eventually to swallow. No one wants to pay more in

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the next month, if it drastically goes up, so we will have to do

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something about the pricing. Because a huge increase in the sugar price

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is definitely going to affect the business. While consumers don't want

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to pay more for the sugar they eat, India's 15 million cane farmers want

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to earn more for the sugar they grow. Two successive droughts in the

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country's main sugar belt means production this year is likely to be

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hit. To deter sugar mills from selling abroad and so keeping

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domestic supply and prices stable, the government has introduced a tax

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on exports. But they are confident they have enough stock to meet

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demand. There is no shortage, I think that has been hiked up too

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much to create a sense of a shortage that is not there. The issue is what

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is the resting price? The balance of price between sugarcane and sugar,

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that is the crux of the game, to keep the farmers getting paid and

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for the industry to be viable to be able to pay the farmer. India is

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trying to strike a fine balance, making sure that sugar is still

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available to buy and that prices don't climb too high. Getting that

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wrong could leave a bitter taste for many here in the world's the guest

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sugar market. -- biggest. Indonesian capital Jakarta has a well earned

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reputation for having some of the worst traffic in the world. Every

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day, drivers can spend hours in a sea of red rake lights, as almost 4

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million private cars make their way through the city together with 14

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one half million motorcycles -- brake lights. Traffic is so

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congested the average weekday speed is a mere six kilometres per hour.

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Now, officials are trialling an odds and evens numberplate system to try

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to limit the number of cars. Earlier I spoke to my college in Jakarta and

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first asked her what it is like on the roads of the capital. Well, it

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is very tough in the morning. We have to spend about 20 to 30 minutes

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just to pass 500 metres in Jakarta's thoroughfares, so it means we see

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difficulties for workers and companies. The workers who live in

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rural areas have to spare at least two hours for their commute time,

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and also for the companies, they need to arrange their way to deliver

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goods or also arranging meetings. So, it really affects how we manage

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lives. Thank goodness you were able to make it to Asia Business Report's

:08:54.:08:58.

programme today! All right, tell us, with this odd and even traffic

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policy, how much do they plan to reduce traffic? Well, the city

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officials say it will reduce 20%- 30% of the numbers of vehicles that

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are passing through the Jakarta thoroughfares every day, so it

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means... Because every day there are 600,000 vehicles passing by the

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roads every hour, it means it will save or reduce 120,000- 180,000

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vehicles per hour, so it means a lot, actually. , it is about

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discipline for all the drivers out there in this odd- even plate system

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- if they don't comply, what are the fines? Well, for now, because this

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is a month-long trial, there will be no fine, but after it is implemented

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by August 30, there will be, well, very minimal fine, actually, but

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afterwards city officials say they are actually watching closely about

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this policy, because they say that eventually they will take to find

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very seriously, up to 500,000 rupees, which is only $50. Our BBC

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correspondent in Jakarta. And before we go, a look at the markets

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currently, and as you can see on the screens, on positive terms for the

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Nikkei five, up 1.4%, and the all ordinaries index gaining 20 points,

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and this despite a lacklustre day on Wall Street overnight. Thank you so

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much for investing your time with us. IM Rico Hizon. Sport Today is up

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next -- IM Rico Hizon. I'm Kasia Madera. The top stories this hour:

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Hillary Clinton has become the first ever female presidential nominee for

:10:43.:10:44.

a major party in a US election. Delegates at the Democratic Party

:10:45.:10:46.

National Convention in the United States

:10:47.:10:47.

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