29/07/2016 Asia Business Report


29/07/2016

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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station in a generation at Hinkley point. They were expected to sign

:00:00.:00:00.

off on the deal today but now the deal is not expected until autumn.

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Now it is time for Asia Business Report.

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First was the Prime Minister's turn, now we find out the Bank of Japan

:00:15.:00:19.

will pump more money into the country's economy. And, when a job

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can mean life or death, Indonesian human rights lawyers tell us what it

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is like to be in their shoes. Welcome to Asia Business Report.

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More eyes will be on the Bank of Japan this morning as options become

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available to boost their economy, including another cut to already

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negative interest rates. The Central Bank is under extra pressure to move

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after the Prime Minister Shinzo Abe announced his own stimulus package

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earlier this week. What can we expect from the bank? We are in

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Tokyo hearing what the risks are. Doing nothing would actually be the

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biggest statement right now. We will say OK the government is not pumping

:01:13.:01:17.

money in. They are talking about helicopters and everything. But we

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keep our cards on the table and we won't move. They will move in some

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way. They will show they have instruments and a mix of policies.

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What we are talking about is an increase in asset purchases. We are

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talking about another cut to interest rates further into negative

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territory? It is unlikely they won't go 100% buying more government bonds

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to basically finance the fiscal spending the government is planning

:01:48.:01:51.

right now. They will probably buy some assets in the private market.

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They might turn negative interest rates a tiny notch lower to show

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they have still instruments but they are not 100% financing the

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government. The question is any of it going to work? We have seen a

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massive package but no news from the government. There is more news from

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the Central Bank. From past records it isn't the first attempt at

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stimulus in Japan. It seems that history tells us the effect will

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fizzle out quickly. Is that fair? That is right. They upload to sing

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on fiscal policy because monetary policy has been working in a way. --

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they are not focussingthe government is saying we are doing this directly

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now. The private market is not much help in that regard. But the Central

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Bank needs to support that otherwise it won't work. These Central Bank

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will move in a more symbolic way rather than direct. Will it help

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boost the economy? I think the mix is positive in terms of moving

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Japan. Japan is stable and moving slowly. We have little inflation.

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And it is slowly growing domestically. In a beauty contest

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Japan looks pretty good internationally right now. Ahead of

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that lack of Japan meeting that has been some disappointing new numbers

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showing household spending contracted in June for the fourth

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month in a row. The cost of living for items excluding fresh food fell

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05% in June compared to a year ago. -- 0.5. And output fell compared to

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the month before but missed expectations on an annual basis. It

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grew 0.8% last month. Google's parent company Alphabet has shown

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its second-quarter results showing a growth of $4.9 billion, up 24%. Its

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shares surged in after-hours trade after missing expectations for

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several autumns. We are told how the firm managed it this time around. It

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can be explained by the shift to mobile advertisers now. What we are

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seeing is because of that there is actually more clicks. That is

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causing a significant increase in numbers. It is a similar trend to

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Facebook. They are using a drive for more mobile and digital advertising.

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But Google has a bigger challenge because it had to make that

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transition from the desktop screen to a hand-held. It applies to both.

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Googlies in eight strong position because it has the component as

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well. -- Google is in a. They have YouTube. We think there is a lot of

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growth and success in the growth and success in the

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advertising in the video department. Is that what the future is? Looking

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like that? Everyone wants to know, this is what is happening in the

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past, what is next? We are seeing a higher proportion of advertising

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dollars shifting to video mobile. We expect more of that. Other things

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Google and Alphabet are into, they said themselves they would have done

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better if they weren't putting money into way a out ideas, there is

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X-Lab, they call it, and other bats like self driving cars, how

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important are those way out ideas? It is very important. Google is one

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of the biggest companies in the world. To be focused solely on wine

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industry is risky. -- one. If it can become strong in other industries it

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becomes stronger. It has to invest some of the big profits it makes in

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other ventures into new things. Some will not work that others will help.

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The largest investor in the UK's first nuclear power plant in decades

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has decided to press ahead with the deal. The French energy firm, EDF,

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holds two thirds of the project. The new reactor is predicted to ride,

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provide 7% of the UK's energy requirements. Ford has showed its

:06:29.:06:40.

worse than expected results. Water companies went tumbling after the US

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car giant said the auto industry's recovery was at an end. -- Michael

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it. Royal Dutch Shell has plunged over 70%, just over $1 billion. The

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firm blamed sagging crude oil prices and other reason. For some, their

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ideal job is one that makes our different. This is an Indonesian

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human rights lawyer who continues to speak out against his country's

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death penalties. In the last few hours, Indonesia executed four

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people for drug offences, three of them foreigners. This lawyer

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defended Australians Andrew Chan and another who were executed last you

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for drug smuggling. Despite ongoing battles, he tells the BBC why is

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dream job is still being a human rights lawyer.

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I am a lawyer by profession though I do not consider myself a lawyer.

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LAUGHING. I am an activist. I have been an activist for a long time,

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since my student days. I took up the case of Andrew Chan and Sukumaran

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for principled reasons. Despite drug trafficking they do have a life.

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That is one of the most supreme rights. The case was given to be by

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Sukumaran along with a painting he did. He said to me, please do

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whatever you can do a polish that penalty. -- abolish. And that

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penalty is one of the most cruel and inhuman punishments in any legal

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system. And we have to get rid of that. And I don't think, you know,

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it is wrong to fight the government. It is part of your rights as a

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citizen to help the people. I wrote I am sorry that I lost and I feel

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bad. While the Indonesian legal system is very corrupt, that is not

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the fault only of the judges, it involves the prosecutors, the

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police, and intermediaries. We call them the court mafia. In essence you

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were talking about bribery. For all the judgement you want you have to

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bribe. That is why it is very difficult to stay clean in a system

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like this. So that is why I keep telling my lawyers here what do you

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want in your life? If you want to be rich, instantly rich, then this is

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probably not the job for used up at lets have a look at the markets now.

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On the Asia board you can see the Nikkei is showing no move at all.

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But local stocks in Tokyo did slump on the open and the yen shot a bit

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higher. Markets are focused on whether or not the Bank of Japan is

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going to unleash a fresh round of stimulus. You can see the other

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market trading, Australia up ever so slightly. Look at the US overnight.

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Those markets were barely changing as well. That is it for this edition

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of Asia Business Report. Thank you for watching.

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