16/09/2016 Asia Business Report

power station. We look at the reaction. And what frozen prawns

tell us about the chaos around the collapse of shipping giant Hanjin.

Good morning, Asia, hello, world, it's almost the weekend and glad you

could join us for this Friday edition of Asia Business Report. I'm

Rico Hizon. The British Government has given the final approval to

build the new nuclear power station Hinkley Point, the first in 20

years. Hinkley C point as the Chinese backers and Theresa May...

Will be approval and the tension between the two countries? Earlier I

spoke with our Asia business correspondent Karishma Vaswani and I

asked her if this deal has strings attached. It does have strings

attached, the deal has been allowed to go ahead but the British

government says that in any future event of a stake sale by the French

company EDF, the British government would have the final state or a say

in what happens to that state, thereby protecting any other

investment from coming in. The other thing it has done and what is

written into this deal is huge investments would be looked at

carefully, they would have a share stake if you will in future

projects. There's no mention in the language of the conditions that this

is aimed at China, but certainly it is being read as a way for the UK to

protect itself. Many analysts say it protects them from future investment

from China because that was one of the reasons why it was thought the

deal had been stalled initially over national security concerns. What

does China really want from this Hinkley powerplant? That's a very

good question, it's not really Hinkley that they are that keen on.

What they are looking to do is to build the next nuclear power plant,

which is Bradwell. That's where they have their ambitions. Hinkley is

extremely important for China because it's a stamp of approval if

you will. This is a state owned company, CGM, it will now spend $8

billion in cash to help build this powerplant. This is Chinese money in

a massive British infrastructure project on UK soil. This is an

example of what China can say, we can do this in the UK, they have

been stalled in other places before. Remember Australia saying because of

national security concerns the Chinese investment into an

Australian powerplant couldn't go ahead. So this is seen as a real

sign of approval for the Chinese. But critics say that this deal will

not benefit the UK in the long-term? In terms of the pricing there have

been criticisms it was too expensive. The deal that was finally

signed at ?92 50 per megawatt per hour was too expensive. In terms of

the fact the Chinese are now building it, it is going to be seen

as a major coup for the Chinese. Karishma Vaswani there. Hanjin

shipping file for bankruptcy two weeks ago at around 60 of the cargo

ships are stranded at sea -- and. And many traders in India use the

services of a company to send goods around the world, especially those

exporting to East Asia. We report on how they are coping with the

uncertainty. A fresh catchall squid that will be

cleaned and prepared for a long journey -- catch of. This company

sells seafood around the world and it used Hanjin to export part of its

produce. After the shipping firm's collapse, four containers full of

this exporter's products are stranded near Singapore. They were

being sent to Vietnam and the country is now desperately trying to

find other ways to get them delivered -- company. The continued

value must be around 70,000 US dollars to 100,000 US dollars. This

is a very big amount for us. If the containers get lost then we lose a

lot of money. -- contain a value of. For a complete like this it can take

our holy year of profit. This is where a lot of the country's seafood

exporters to dispatch their goods. It's not just seafood. Rice

exporters in India have also been hit. Other industries are still

assessing the impact. Hanjin has said that it is trying to get funds

to release the stranded cargo. But with doubts about whether the

company can be saved, exporters are also worried about a shortage of

vessels in the months ahead. Availability of the containers is a

big concern of ours and also we want to insure that just because of this

scenario, the prices are not skyrocketing in terms of the

shipping costs. Because you taken orders and we have taken the pricing

into account and we want to make sure that because of this situation

the other players in the market don't take advantage of that. For

seafood companies, Hanjin's collapse comes at the start of their peak

season. And with products like these, they can't be stored to

belong and they will have to find quick solutions. It is the end of an

era for Australia's Central Bank, Governor Glenn Stevens is stepping

down this weekend after a decade in the job. What will his legacy be?

For more we are joined from Sydney by the BBC's Bill Mercer. What will

Glenn Stevens be remembered for? Once upon a time, Rico, Glenn

Stevens was described by one newspaper here in Australia as the

country's worst banker, however he will be remembered for guiding this

country through the worst of the global financial crisis and

maintaining Australia's enviable record of unbroken economic growth

for the best part of a quarter of a century. There's an unwanted legacy

in all of this as well. Mr Stevens has presided over successive

interest rate cuts here in Australia, they are at a record low

of 1.5%, and that has created a housing bubble, especially in the

big cities of Melbourne and Sydney and critics say that repeated

cutting of interest rates has made housing as an affordable in

Australia as it's ever been. Glenn Stevens is on his way out, Philip

Lowe will be taking over, what do we know about this new RBA Governor?

Philip Lowe is an insider, he's been the deputy governor of Australia's

Reserve Bank since 2012, he is extremely well-qualified. He has a

Ph.D. From the Massachusetts Institute of Technology, an

economics degree from the university of New South Wales and he takes over

control of Australia's Reserve Bank on Sunday. It's one of the most

important financial positions in the country and big challenges lie ahead

for the new man in charge. How does he go about restraining a surging

Australian dollar? How does he go about making housing more

affordable? And in broader terms, Rico, how does he continue to guide

Australia at the end of the mining boom into sectors like agriculture,

manufacturing and tourism? How does he continue to maintain Australia's

proud growth of 25 years of uninterrupted economic growth. Many

challenges going forward for the new Reserve Bank of Australia Governor.

Thank you so much for joining us and for updating us on this development,

Phil Mercer in Sydney. Authorities in the United States are seeking as

much as $14 billion from Deutsche Bank to resolve allegations stemming

from the sale of mortgage securities in the 2008 financial crisis. The

pay-out would be the largest ever inflicted on a foreign bank in

America. Deutsche Bank says the figure is an opening proposal and it

has no intention of agreeing. It is indeed a big weekend right here in

Singapore, where lovers of Formula 1 racing are putting in their earplugs

and heading for the starting grids. It's the first Grand Prix since it

was announced that F1 is being taken over by the US media giant liberty

media. The event draws more than 250,000 visitors but this year

there's a concern over the outbreak Zika and terrorism.

Singapore's hospitality sector is revving up for the Formula 1

weekend. Around this time of year, hotels tend to senior or full

occupancy. Some are even able to raise their room rates by 200%. This

four example is the McLaren Honda suite at the Hilton where each night

costs around $600 -- this, for example. But for a while the hotel

industry has been struggling. Room revenues are at a six-year low as

tourists stay for less time and more rooms come onto the market. There

are also concerns about Zika. So far more than 330 people have been

infected and there are concerns it will dissuade even more tourists

from coming. Let the race begin! Before we go

here's a quick look at the markets and Asia is currently revving up

before the weekend break after US equities surge 1% after fresh

economic data was weaker than expected, dimming the odds of a rate

hike by the US central bank next week. The mic eight up by 26, in

positive territory, and the All Ordinaries in Sydney up by 0.8% --

the Nikkei. Those other markets. Thank you for investing your time

with us. Sport Today is up next. See you