29/08/2016 Asia Business Report


29/08/2016

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


Similar Content

Browse content similar to 29/08/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

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

:00:10.:00:14.

regional investors react to the upbeat investment forecast of the US

:00:15.:00:20.

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

:00:21.:00:21.

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

:00:22.:00:33.

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

:00:34.:00:40.

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

:00:41.:00:45.

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

:00:46.:00:49.

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

:00:50.:00:54.

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

:00:55.:00:58.

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

:00:59.:01:02.

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

:01:03.:01:09.

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

:01:10.:01:15.

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

:01:16.:01:20.

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

:01:21.:01:24.

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

:01:25.:01:27.

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

:01:28.:01:31.

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

:01:32.:01:37.

into bond markets and driven markets to relatively expensive levels.

:01:38.:01:40.

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

:01:41.:01:45.

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

:01:46.:01:49.

Japanese central bank and central banks from Europe at Jackson Hall

:01:50.:01:55.

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

:01:56.:01:58.

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

:01:59.:02:03.

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

:02:04.:02:06.

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

:02:07.:02:10.

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

:02:11.:02:15.

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

:02:16.:02:21.

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

:02:22.:02:25.

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

:02:26.:02:28.

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

:02:29.:02:34.

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

:02:35.:02:38.

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

:02:39.:02:43.

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

:02:44.:02:53.

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

:02:54.:02:58.

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

:02:59.:03:05.

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

:03:06.:03:10.

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

:03:11.:03:14.

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

:03:15.:03:18.

the state-run investment business mega financial. Taiwanese regulators

:03:19.:03:24.

have reportedly summoned the former mega financial chairman for

:03:25.:03:27.

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

:03:28.:03:33.

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

:03:34.:03:39.

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

:03:40.:03:44.

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

:03:45.:03:47.

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

:03:48.:03:53.

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

:03:54.:03:58.

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

:03:59.:04:03.

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

:04:04.:04:07.

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

:04:08.:04:11.

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

:04:12.:04:15.

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

:04:16.:04:20.

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

:04:21.:04:27.

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

:04:28.:04:31.

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

:04:32.:04:39.

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

:04:40.:04:43.

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

:04:44.:04:49.

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

:04:50.:04:56.

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

:04:57.:05:00.

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

:05:01.:05:07.

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

:05:08.:05:10.

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

:05:11.:05:15.

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

:05:16.:05:20.

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

:05:21.:05:28.

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

:05:29.:05:32.

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

:05:33.:05:37.

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

:05:38.:05:43.

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

:05:44.:05:49.

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

:05:50.:05:53.

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

:05:54.:05:57.

products. There was no comparison website for insurance and banking

:05:58.:06:03.

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

:06:04.:06:11.

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

:06:12.:06:15.

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

:06:16.:06:20.

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

:06:21.:06:23.

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

:06:24.:06:28.

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

:06:29.:06:34.

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

:06:35.:06:37.

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

:06:38.:06:43.

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

:06:44.:06:50.

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

:06:51.:06:53.

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

:06:54.:06:59.

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

:07:00.:07:04.

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

:07:05.:07:09.

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

:07:10.:07:16.

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

:07:17.:07:23.

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

:07:24.:07:25.

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

:07:26.:07:32.

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

:07:33.:07:42.

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

:07:43.:07:51.

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

:07:52.:07:56.

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

:07:57.:08:02.

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

:08:03.:08:12.

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

:08:13.:08:18.

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

:08:19.:08:22.

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

:08:23.:08:27.

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

:08:28.:08:31.

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

:08:32.:08:35.

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

:08:36.:08:37.

relationship was portrayed in mainstream Indian cinema in 1998,

:08:38.:08:42.

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

:08:43.:08:48.

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

:08:49.:08:58.

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

:08:59.:09:02.

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

:09:03.:09:07.

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

:09:08.:09:11.

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

:09:12.:09:19.

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

:09:20.:09:23.

and says that produces and advertisers need to realise there is

:09:24.:09:27.

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

:09:28.:09:29.

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

:09:30.:09:35.

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

:09:36.:09:41.

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

:09:42.:09:44.

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

:09:45.:09:51.

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

:09:52.:09:56.

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

:09:57.:09:59.

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

:10:00.:10:03.

attitudes will make those stories financially viable as well.

:10:04.:10:07.

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

:10:08.:10:15.

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

:10:16.:10:18.

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

:10:19.:10:23.

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

:10:24.:10:26.

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

:10:27.:10:32.

The last BHS stores have closed for the final time,

:10:33.:10:35.

bringing to an end nearly 90 years of trading by the retailer

:10:36.:10:38.

The previous owners, Dominic Chappell

:10:39.:10:44.

and Sir Philip Green, have been criticised by MPs

:10:45.:10:47.

Download Subtitles

SRT

ASS