13/09/2016 Asia Business Report


13/09/2016

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THEME PLAYS. Watching for clues about the next big decision by the

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US Fed. Does anyone really know if rates will rise? And workers demand

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urgent health from the government with rising rates in China starting

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to bite. -- help. Good morning, Asia. Hello, world. Welcome to Asia

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Business Report. I'm Rico Hizon. It's a Tuesday. With just over a

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week until the Federal Reserve meets, one of its governors has

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warned against moving too quickly on a rate hike. Meanwhile, Donald Trump

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has accused the bank of doing what current President Barack Obama wants

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by keeping interest rates low. Will the bank move and could it have an

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impact right here in Asia? I asked a chief economist. I think there has

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been criticism of the Federal Reserve in recent years. Their

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credibility has been called into question. A big problem is that

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communication strategy. You hear from one governor one day that rates

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aren't high enough and the opposite from another the next day that they

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need to below well for longer. What does he really want? Interest rates

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to be raised now? Donald Trump, I mean. Boruc wait until after the

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election? -- or. We need a more coherent policy around normalisation

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of the Federal Reserve. The fear of markets is that once the Federal

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Reserve raises it will raise too quickly. What the Federal Reserve

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needs to do is make a commitment that if the raise they will raise

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slowly. Should they raise rates already now to take away the fear?

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This close to an election it should be... It should be off-limits, OK?

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Most of the guys who are analysts right now under 35s have never seen

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a rate cut. We expect of reaction... But if there is a rate rise this

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could impact the presidential elections come November, especially

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the sentiment of the people. It could affect the democratic because

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it would be under the administration of Barack Obama. -- Democrats. The

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Federal Reserve should not be political. It should be independent.

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There is a period where the Federal Reserve should say no more changes

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until the election. That is why the debate about a September rise... We

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never thought they would be one. For Asia's emerging currencies, it

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affects us. If it keeps moving it impacts the currencies. And things

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like the Japanese yen. The Japanese are fighting against depreciating

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yen when they wanted. It affects many currencies around the region.

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Staying the course that they have right now is really the way to go.

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Tony. Thousands of people who work in the tourism industry of Taiwan

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have protested in the capital Taipei demanding government help in the

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face of a sharp drop from mainland Chinese visitors. They only opened

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up the Chinese tourists in 2008 and it led to billions of dollars being

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invested in some 90,000 new jobs. Earlier this year, Taiwan got a new

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government with a pro- independent stance and as a result many Chinese

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tourists are staying. We have more. The National Museum, the favourite

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destination for Chinese tourists. In the past eight years, the number of

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Chinese tourists in Taiwan has increased from practically none to

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more than 4 million a year. They now make up what it is and of -- 40% of

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their tourists. Few hours a man he now. This is how the lobby used to

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look. Just fool months ago. Now this is what it looks like. That is since

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May when the new president decided to promote pro- independent. Many

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believe fewer travel permits are being permitted. Many job sectors

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are affected, including tour bus companies. This man invested $3.5

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million to buy 20 tour buses for Chinese tourists. Now they mostly

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sit idle. They used to handle 200 a day. Now only tends to or have to

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pay all the expenses, including loan payments, wages to drivers, and

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insurance and parking fees. Thousands of people have similar

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concerns and took to the streets of Taipei on Monday. They include those

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in the hotel, restaurant, and tourism sectors. I'll restaurant is

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open to Chinese tourists but very few, now. We are suffering. Not

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everyone agrees Taiwan should be so economically reliant on the rhythm

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from mainland China and given to their demands. -- tourism.

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TRANSLATION: The problems they face is the problem Taiwan will face if

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they only care about the Chinese market. Just because they elected a

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president China does not like, tourists stopped coming here. Does

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that mean we should not elect a president they like? Not any other

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country would function that way. But they are unlikely to change the way

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they see Taiwan. TRANSLATION: They aren't really Chinese people. But

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they are part of the same family. Given time, people from both sides

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will move towards litigation. The trend continues. -- unification.

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Taiwan could lose $1 billion in tourism this year. Mumbai's steel

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industry has lost a loss for the third consecutive quarter. They are

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trying to balance their books by selling off UK operations We have

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the latest. Losses of this kind of amount were primarily due to

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discontinued operations in the UK. They did not say much about how they

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were planning to rescue operations in the UK except that it is still in

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talks with other steel companies like a German -based group in Europe

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to help the company consolidate operations and save costs. But all

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the interested bidders over there has made it clear that it wants Tata

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Steel to find a solution to pension issues. Its performance in Europe

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has actually improved over the last few months because of a weakening

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pound. The company expects demand to improve a bit. But it says in the

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long-term there are still many challenges. It wants confidence to

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improve in the market. As far as operations go, their performance has

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improved. It expects still demand to grow in this market from early due

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to fast economic growth. That is where they are making money right

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now. So a mass produced self driving car could be on the road by a

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different one. How close is the technology? -- 2021. They are just

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days away from releasing a fleet of self driving taxis in its big. We

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went to see the chief technology officer. I am here on Ford's campus

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with the chief technology officer of the company. He and his team are in

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the hot seat when it comes to delivering self driving cars for the

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company. We are standing next to him. How does this work? There are

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many things in this that you don't see. One is a big computer in the

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trunk processing all of these signals. Some technology is pretty

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evident. We have spinning laser is up here that are scanning and

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tracking objects. Multiple cameras up here on this rack. It is looking

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vehicles and the end interpreting data. People are worried about

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safety. What is the biggest challenge for a safe self driving

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vehicle. The things a human naturally does. If there is one the

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all the scenarios the human can manage, we can manage 10% of them

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and cover 90% of the others. It is the other strange things that happen

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in that remaining 10% that we need to be able to sense and interpret

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and react appropriately to. For the most part, this looks like a regular

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car. I guess the most obvious thing that the single issues it is that.

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Yeah, the sensor system. The lasers and cameras. Went to get to a

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reduction vehicle we will have designers making it look a bit more

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aesthetically pleasing. Right now the engineers it is easier to have

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it this way so they can replace parts easier. The self driving

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vehicle. The market. The market is in early regional trade. Asia is

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indeed recovering from yesterday's falls. That is after the Nikkei

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closed solidly higher as they hope the US Federal bank will hold off on

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raising interest rates next week. And you can see the rest on the

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board. Thank you so much for investing your time with us. I am

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Rico Hizon. Sport Today is up next.

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