29/08/2016 Asia Business Report


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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Well Asian markets follow Wall Street's lead? We are watching how


regional investors react to the upbeat investment forecast of the US


economy. And how this Indian film about a two boot subject managed to


get funding. -- to do. Welcome to Asia Business Report.


Let's start with the markets, and a look at where Asian markets have


started trade, especially in Japan. As you can see, it is up 2%.


Australia fairly flat, and we will be watching the Hang Seng in Hong


Kong in about an hour. All of them are taking stock of the Federal


Reserve chair Janet Yellen's signals that the case for an interest rate


rise has strengthened and she gave an upbeat assessment of the US


economy at Jackson hole on Friday. She gave no clarity on when the hike


would,, sparking volatility in US in European stock markets -- Jackson


Hall. How this influence trading sentiment and strategies in terms of


investment? The chief economist at the bank of Singapore gives me his


view. It is a double edged sword and everyone is happy the US economy is


doing well and creating jobs, but the markets have been driven by


cheap money, borrowing for pretty much nothing. That money has flowed


into bond markets and driven markets to relatively expensive levels.


Markets will be nervous at any signs that that cheap money era is going


to start to disappear. We know it is not just the Fed, we also had the


Japanese central bank and central banks from Europe at Jackson Hall


over the weekend. We know these are countries with negative interest


rates. Are there expectations for more? In Japan, they have a meeting


around the same time as the Fed at the end of the month, and the


governor was saying there is ample room to be easing policy. They


already have negative rates and huge market, but they can do more. The


expectation in Europe and definitely in Japan is we will see more action,


even as the Fed is tightening. We know there is a fairly uncertain


global outlook, you make the case as well as the Fed that the US economy


is strengthening. But the uncertain global outlook but on by unexpected


events like Brexit, and the upcoming US elections, where will that put


the cheap victory for US interest rates? It tells you they will be


very slow and careful in raising rates. They have been raped hikes --


rate hikes, and whether we do raise them or not, it will be a gradual


process, back to normal. They used to say normal is to% and now maybe


it is as low as 2%. -- normal is as low as 3%. It does seem like a


normal detector. In other business news, Taiwan is sending in


investigators to Panama and New York to inspect the banking branches of


the state-run investment business mega financial. Taiwanese regulators


have reportedly summoned the former mega financial chairman for


questioning earlier this month, with the bank being fined millions of


dollars by a New York state regular writer for violating anti- money


laundering regulations. China's second largest oil refinery has been


hit hard by lower oil and gas prices. Net profit for the first six


months are at their lowest in eight years. They fell to $3 billion. That


is down nearly 22% compared to a year ago. And Japan and South Korea


have agreed to start talks on resuming a currency swap deal was


that the North Asian neighbours began its agreement 15 years ago but


it stalled after expiring early last year because of tensions between the


two sides. The deal lets one nation secure dollars by giving its


currency to the other, which acts as a cushion during times of market


instability. Navigating the world of personal finance can be a daunting


task, but one start-up is looking to signify the process in Asia. Much


like searching for a flight online. The boss of the company, they have


launched other businesses before, and we caught up with him and asked


what got him onto the path of being a serial entrepreneur? I have always


wanted to be my own boss, and I started a small business in selling


peanuts in Germany, and then a few years later, I worked at a company


that was kind of a middleman between the airline and the travel agent


unity. I worked for a few years and thought, there is such a huge demand


-- community. People will fly more and more. The way we organise it


here can be done better. We need to use technology. Then I moved into


the online travel industry and saw what was happening in the US, where


it technology -- a technology company at the time set up the first


online travel agent, and I thought, wow, I need to do that as well. Then


with a business partner I started to build the first online travel agency


in the Netherlands, and it is still the biggest travel agent, online


travel agent, in the Netherlands. What inspired you to start GoBear? I


wanted to buy car insurance, but before you buy, you want to compare


products. There was no comparison website for insurance and banking


products here. So that got me on the idea, let's start a new business


online and bring it to customers what is already happening in other


industries, to the Asian customer. What are some of the challenges you


face in setting this up and expanding become any? It is a news


business, there are always challenges. It is never easy.


Finding the right online talent is a big challenge. In all markets,


actually. And then making customers aware of the great service that is


out there for them, that is a challenge. And in some countries,


there are some regulatory obstacles, I would say, because laws have not


caught up with modern times. They don't have anything for Internet


companies. They are all all working on it, but the law has not caught up


yet. Finally, how did you come up with the name GoBear and that cute


icon you use? Of course you want a name that is short, memorable,


likeable, powerful, and we found that in GoBear. A new Indian


miniseries was released online over the weekend about two women who fall


in love. This in a country where gay sex is illegal, and same-sex


relationships are really portrayed in film. It is a subject hard to


make into a commercial success. We have more from Mumbai.


This is a story that almost never got made. The producers were not


sure how Indian audiences would react to a lesbian love story. The


initial response was very shocking for me, because the moment I said to


girls in Love, he is scared. He is scared he could be attacked. Finally


he agreed to produce, but they decided against it, but he was doing


it without his parents knowing. They found out and they are not OK with


that. This world, these will stomach she finally pitched the film on a


crowd funding website, went to got the money she needed, she has only


been able to self publish short episodes on YouTube, meaning it is


unlikely to make that money back. The first time a same-sex


relationship was portrayed in mainstream Indian cinema in 1998,


there were violent protests by right-wing groups. It did lead to


public debate on homosexuality and free speech, but 18 years later, the


subject is still taboo. Earlier this year, a film that dealt with


homophobia was released, but only online. After struggling to find


producers and distributed. After a positive response from viewers, a


sickle 's plan. There is a villain in the story. And this website has


been set up for people to publish stories about relationships and love


and says that produces and advertisers need to realise there is


a market. It is not something that has been incorporated into


mainstream media storytelling for some time now. There is a hesitation


about what the market is for it. Money comes more with a sense of


what is the market, and people with money tend to be conservative about


form, and only want to back that which is already known or has


ensured profits. Despite gay sex being illegal in India, the LGBT


immunity is trying to be vocal and visible, and changing technology is


creating new ways for them to tell their stories, but only changing


attitudes will make those stories financially viable as well.


Let's take a look at the markets. We are seeing a strong gain for the


Nikkei over in Japan. It is really due to the weakness in the Japanese


yen, which is propelling exporters higher. So the US dollar strength in


on those comments from Janet Yellen we told you about at the start of


the programme. That is it for the show. Thank you for watching.


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The previous owners, Dominic Chappell


and Sir Philip Green, have been criticised by MPs


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