03/08/2016 Asia Business Report


03/08/2016

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

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A dramatic launch for Samsung's latest tablet. We find out what

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reception it got. And what will happen to the cost of going to the

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chemist? We look at access to India's pharmaceutical market. Good

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

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Hizon. Thank you for investing your time with us. This is the midweek

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edition. We start off with Samsung. They have entered a new galaxy. The

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South Korean firm revealed this, the latest, the Samsung Galaxy seven.

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They are trying to build momentum before their competitors bring up

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their ones next month. What can be Samsung Galaxy do? -- the. We have

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more. Technology, definitely. Drama, of course. Cinematic unveilings have

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become standard for new technology products. Samsung is so different,

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releasing the Galaxy Note 7. It now has a key iris scan, the pen is more

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precise, and you can charge it wirelessly. This is the newest

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addition in their line of attacks. They have had one of their best

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quarters in two years. That is helped by smartphone sales. It is

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predicting the rest of the year will see even more sales of these kinds

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of phones. That is in stark contrast to one of their biggest competitors.

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Apple has seen iPhone sales drop by 15% in the last quarter. And the

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outlook for the next three is no better. When you look at consumers,

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they are most loyal to Samsung. They are the most satisfied of any

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smartphone consumers on the market. We want to be true to the Note

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consumers and to bring in more people to let them dry. Samsung

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believes it can buck the trend of Samsung sales by improving on one of

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their greatest hits. That report in New York. Investors are paying close

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attention to Rio Tinto, one of the largest mining companies in the

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world, releasing their results today. Falling prices causing

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different results are getting tighter. They are being forced to

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reform. I asked what they are expecting. We are expecting the

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profit numbers to come in around 1.6 billion, slightly higher than the

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consensus estimates. They are looking for a diffidence of 40%.

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What is the reason for this rise of numbers? First and foremost I think

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it is to do with their cost out story they embarked on with their

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2016 results. They wanted $30 billion out of their cost of

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operations. That has had some success. They will be giving a

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further update this afternoon. Another factor and an important one

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is that oil prices have recovered rum $38 last year. It is now $60 per

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barrel. What about the slowdown in the Chinese economy? Why isn't this

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having an impact on their numbers for the half-year? They have gone

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quiet on that story. We have had Brexit and US interest rates and

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other interesting things. But that is the overarching and dominant

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factor that will impact companies like Rio Tinto and BHP. The further

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slowdown in China, consuming a billion times of iron ore per annum,

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will be very bad. Looking ahead to the next half year, can they sustain

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this kind of growth? It is not so much the growth investors should be

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focusing on, but they are continuing cost out story. The commodity

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prices, which we will face issues with because of the slowdown in

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China, it is about how low you can get your cost. It is about

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consolidating the balance sheets, not cost. I think the new CEO will

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continue in that vein. From the Australian Stock Report. Foreign

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direct investments in Thailand have collapsed in the first six months of

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the year. According to the Central Bank of the country, they fell more

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than 90% of value to the lowest mark in over a decade. Political

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uncertainty in Thailand may have encouraged this. They have a

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referendum on the latest Constitution draft on Sunday. The

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first lawsuit has been fired because of Nintendo's popular smartphone

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game, Pokemon Go. An man in New Jersey said strangers lingered

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outside his home with at least five people knocking on his door. The

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suit against the game maker seeks a class action suit. India is expected

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to give the biggest tax reform programme since gaining independence

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from Britain almost 70 years ago. The Parliament House is expected to

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vote on whether to reduce the Goods and Services Tax. That bill will

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replaced several taxes and levies in 29 states. Staying with India, their

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decision to allow more foreign investment in sectors like

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pharmaceuticals, aviation, and retail, was a major move by the

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government to boost the economy. But what are the implications for

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consumers? Our reporter has been looking at the drug makers and the

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cheap medicines they supply at home and around the world. For even the

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mildest hold, many Indians don't hesitate to turn to their local

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pharmacy. -- cold. An attitude that has made pills and potions a huge

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business here. The drugs that fill the shelves are usually cheap and

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most of them are made by Indian companies. But some of those firms

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could soon find themselves under foreign control. Until recently,

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international investors could own 49% of an Indian pharmaceutical

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business. Now the government has raised that limit to 74%. And with

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state approval, 100% ownership is possible. But this global

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pharmaceutical giant believes a cap on buyouts will restrict big sized

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deals. You will have some investments coming into the large

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Indian companies for exports because it will help them improve their

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technology. But, I doubt if any global company will come and acquire

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with only 74%. It is the just Indian demand for medicines driving

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pharmaceuticals. They are also the largest importer of genetic drugs.

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That is brought in by cheap subsidies and low labour. This

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sector is expected to see strong growth in the coming years. Taking

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medicine that has been researched and developed abroad and then

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manufacturing something similar to sell much cheaper has become a

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specialisation of Indian drugmakers. Countries, including the USA,

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threatens global pharmaceutical firms. That allows India to tighten

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intellectual property rules that allow that to happen. But healthcare

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activists say that Indian firms are key suppliers of affordable

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medicines to poor countries. If they get bought out that supply of cheap

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drugs is at risk. It is important to public health and health security.

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Last thing you would want is to not have Indian manufacturing capacity

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pointed towards developing countries. The value of their

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pharmaceutical market is expected to triple by 2020. That is something

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international drugmakers cannot ignore. That is an opportunity they

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may struggle to turn down. BBC News. Let's turn our attention to Japan.

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This man, Prime Minister Shinzo Abe, is expected to announce a cabinet

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reshuffle today, Wednesday. On Tuesday he announced details of a

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massive $275 billion in initiative to jumpstart the economy. Let's take

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a look at what is planned. JAPANESE MUSIC.

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TRADITIONAL JAPANESE MUSIC PLAYS. Investors continued to be sceptical

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about this seamless package. As you can see, the Nikkei is down yet

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again on Wednesday. That is down by 220 points. The All Ordinaries Index

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is also in negative territory by 40 points. Thank you for investing your

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time with us. Sport Today is coming up.

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In the US presidential campaign, President Obama has attacked

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the Republican candidate, Donald Trump, saying he is unfit

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