:00:00. > :00:00.power station. We look at the reaction. And what frozen prawns
:00:00. > :00:12.tell us about the chaos around the collapse of shipping giant Hanjin.
:00:13. > :00:16.Good morning, Asia, hello, world, it's almost the weekend and glad you
:00:17. > :00:20.could join us for this Friday edition of Asia Business Report. I'm
:00:21. > :00:25.Rico Hizon. The British Government has given the final approval to
:00:26. > :00:30.build the new nuclear power station Hinkley Point, the first in 20
:00:31. > :00:37.years. Hinkley C point as the Chinese backers and Theresa May...
:00:38. > :00:42.Will be approval and the tension between the two countries? Earlier I
:00:43. > :00:47.spoke with our Asia business correspondent Karishma Vaswani and I
:00:48. > :00:50.asked her if this deal has strings attached. It does have strings
:00:51. > :00:54.attached, the deal has been allowed to go ahead but the British
:00:55. > :00:59.government says that in any future event of a stake sale by the French
:01:00. > :01:03.company EDF, the British government would have the final state or a say
:01:04. > :01:07.in what happens to that state, thereby protecting any other
:01:08. > :01:16.investment from coming in. The other thing it has done and what is
:01:17. > :01:19.written into this deal is huge investments would be looked at
:01:20. > :01:24.carefully, they would have a share stake if you will in future
:01:25. > :01:28.projects. There's no mention in the language of the conditions that this
:01:29. > :01:34.is aimed at China, but certainly it is being read as a way for the UK to
:01:35. > :01:38.protect itself. Many analysts say it protects them from future investment
:01:39. > :01:43.from China because that was one of the reasons why it was thought the
:01:44. > :01:47.deal had been stalled initially over national security concerns. What
:01:48. > :01:52.does China really want from this Hinkley powerplant? That's a very
:01:53. > :01:56.good question, it's not really Hinkley that they are that keen on.
:01:57. > :02:01.What they are looking to do is to build the next nuclear power plant,
:02:02. > :02:04.which is Bradwell. That's where they have their ambitions. Hinkley is
:02:05. > :02:09.extremely important for China because it's a stamp of approval if
:02:10. > :02:15.you will. This is a state owned company, CGM, it will now spend $8
:02:16. > :02:18.billion in cash to help build this powerplant. This is Chinese money in
:02:19. > :02:24.a massive British infrastructure project on UK soil. This is an
:02:25. > :02:29.example of what China can say, we can do this in the UK, they have
:02:30. > :02:33.been stalled in other places before. Remember Australia saying because of
:02:34. > :02:36.national security concerns the Chinese investment into an
:02:37. > :02:40.Australian powerplant couldn't go ahead. So this is seen as a real
:02:41. > :02:46.sign of approval for the Chinese. But critics say that this deal will
:02:47. > :02:49.not benefit the UK in the long-term? In terms of the pricing there have
:02:50. > :02:56.been criticisms it was too expensive. The deal that was finally
:02:57. > :03:00.signed at ?92 50 per megawatt per hour was too expensive. In terms of
:03:01. > :03:05.the fact the Chinese are now building it, it is going to be seen
:03:06. > :03:10.as a major coup for the Chinese. Karishma Vaswani there. Hanjin
:03:11. > :03:16.shipping file for bankruptcy two weeks ago at around 60 of the cargo
:03:17. > :03:20.ships are stranded at sea -- and. And many traders in India use the
:03:21. > :03:25.services of a company to send goods around the world, especially those
:03:26. > :03:27.exporting to East Asia. We report on how they are coping with the
:03:28. > :03:32.uncertainty. A fresh catchall squid that will be
:03:33. > :03:36.cleaned and prepared for a long journey -- catch of. This company
:03:37. > :03:42.sells seafood around the world and it used Hanjin to export part of its
:03:43. > :03:46.produce. After the shipping firm's collapse, four containers full of
:03:47. > :03:50.this exporter's products are stranded near Singapore. They were
:03:51. > :03:54.being sent to Vietnam and the country is now desperately trying to
:03:55. > :04:00.find other ways to get them delivered -- company. The continued
:04:01. > :04:04.value must be around 70,000 US dollars to 100,000 US dollars. This
:04:05. > :04:12.is a very big amount for us. If the containers get lost then we lose a
:04:13. > :04:19.lot of money. -- contain a value of. For a complete like this it can take
:04:20. > :04:33.our holy year of profit. This is where a lot of the country's seafood
:04:34. > :04:36.exporters to dispatch their goods. It's not just seafood. Rice
:04:37. > :04:43.exporters in India have also been hit. Other industries are still
:04:44. > :04:47.assessing the impact. Hanjin has said that it is trying to get funds
:04:48. > :04:51.to release the stranded cargo. But with doubts about whether the
:04:52. > :04:56.company can be saved, exporters are also worried about a shortage of
:04:57. > :05:01.vessels in the months ahead. Availability of the containers is a
:05:02. > :05:06.big concern of ours and also we want to insure that just because of this
:05:07. > :05:10.scenario, the prices are not skyrocketing in terms of the
:05:11. > :05:14.shipping costs. Because you taken orders and we have taken the pricing
:05:15. > :05:18.into account and we want to make sure that because of this situation
:05:19. > :05:22.the other players in the market don't take advantage of that. For
:05:23. > :05:27.seafood companies, Hanjin's collapse comes at the start of their peak
:05:28. > :05:30.season. And with products like these, they can't be stored to
:05:31. > :05:37.belong and they will have to find quick solutions. It is the end of an
:05:38. > :05:41.era for Australia's Central Bank, Governor Glenn Stevens is stepping
:05:42. > :05:46.down this weekend after a decade in the job. What will his legacy be?
:05:47. > :05:52.For more we are joined from Sydney by the BBC's Bill Mercer. What will
:05:53. > :05:57.Glenn Stevens be remembered for? Once upon a time, Rico, Glenn
:05:58. > :06:01.Stevens was described by one newspaper here in Australia as the
:06:02. > :06:06.country's worst banker, however he will be remembered for guiding this
:06:07. > :06:09.country through the worst of the global financial crisis and
:06:10. > :06:14.maintaining Australia's enviable record of unbroken economic growth
:06:15. > :06:20.for the best part of a quarter of a century. There's an unwanted legacy
:06:21. > :06:24.in all of this as well. Mr Stevens has presided over successive
:06:25. > :06:30.interest rate cuts here in Australia, they are at a record low
:06:31. > :06:33.of 1.5%, and that has created a housing bubble, especially in the
:06:34. > :06:38.big cities of Melbourne and Sydney and critics say that repeated
:06:39. > :06:42.cutting of interest rates has made housing as an affordable in
:06:43. > :06:47.Australia as it's ever been. Glenn Stevens is on his way out, Philip
:06:48. > :06:54.Lowe will be taking over, what do we know about this new RBA Governor?
:06:55. > :06:59.Philip Lowe is an insider, he's been the deputy governor of Australia's
:07:00. > :07:06.Reserve Bank since 2012, he is extremely well-qualified. He has a
:07:07. > :07:09.Ph.D. From the Massachusetts Institute of Technology, an
:07:10. > :07:13.economics degree from the university of New South Wales and he takes over
:07:14. > :07:17.control of Australia's Reserve Bank on Sunday. It's one of the most
:07:18. > :07:22.important financial positions in the country and big challenges lie ahead
:07:23. > :07:27.for the new man in charge. How does he go about restraining a surging
:07:28. > :07:31.Australian dollar? How does he go about making housing more
:07:32. > :07:35.affordable? And in broader terms, Rico, how does he continue to guide
:07:36. > :07:40.Australia at the end of the mining boom into sectors like agriculture,
:07:41. > :07:45.manufacturing and tourism? How does he continue to maintain Australia's
:07:46. > :07:50.proud growth of 25 years of uninterrupted economic growth. Many
:07:51. > :07:54.challenges going forward for the new Reserve Bank of Australia Governor.
:07:55. > :07:59.Thank you so much for joining us and for updating us on this development,
:08:00. > :08:04.Phil Mercer in Sydney. Authorities in the United States are seeking as
:08:05. > :08:09.much as $14 billion from Deutsche Bank to resolve allegations stemming
:08:10. > :08:13.from the sale of mortgage securities in the 2008 financial crisis. The
:08:14. > :08:17.pay-out would be the largest ever inflicted on a foreign bank in
:08:18. > :08:25.America. Deutsche Bank says the figure is an opening proposal and it
:08:26. > :08:30.has no intention of agreeing. It is indeed a big weekend right here in
:08:31. > :08:35.Singapore, where lovers of Formula 1 racing are putting in their earplugs
:08:36. > :08:39.and heading for the starting grids. It's the first Grand Prix since it
:08:40. > :08:45.was announced that F1 is being taken over by the US media giant liberty
:08:46. > :08:49.media. The event draws more than 250,000 visitors but this year
:08:50. > :08:54.there's a concern over the outbreak Zika and terrorism.
:08:55. > :08:59.Singapore's hospitality sector is revving up for the Formula 1
:09:00. > :09:03.weekend. Around this time of year, hotels tend to senior or full
:09:04. > :09:08.occupancy. Some are even able to raise their room rates by 200%. This
:09:09. > :09:13.four example is the McLaren Honda suite at the Hilton where each night
:09:14. > :09:19.costs around $600 -- this, for example. But for a while the hotel
:09:20. > :09:23.industry has been struggling. Room revenues are at a six-year low as
:09:24. > :09:28.tourists stay for less time and more rooms come onto the market. There
:09:29. > :09:33.are also concerns about Zika. So far more than 330 people have been
:09:34. > :09:34.infected and there are concerns it will dissuade even more tourists
:09:35. > :09:44.from coming. Let the race begin! Before we go
:09:45. > :09:49.here's a quick look at the markets and Asia is currently revving up
:09:50. > :09:52.before the weekend break after US equities surge 1% after fresh
:09:53. > :09:56.economic data was weaker than expected, dimming the odds of a rate
:09:57. > :10:01.hike by the US central bank next week. The mic eight up by 26, in
:10:02. > :10:07.positive territory, and the All Ordinaries in Sydney up by 0.8% --
:10:08. > :10:12.the Nikkei. Those other markets. Thank you for investing your time
:10:13. > :10:13.with us. Sport Today is up next. See you