20/09/2016 Asia Business Report


20/09/2016

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 20/09/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Now on BBC News, all the latest business news live from Singapore.

:00:00.:00:18.

Welcome to Asia Business Report. South Korea's giant family-owned

:00:19.:00:44.

conglomerates once again in hot water. Let's take a look at this

:00:45.:00:51.

man. This is the chairman of Lotte. He will be summoned in a few hours

:00:52.:00:55.

by prosecutors who have been looking into bribery allegations against

:00:56.:00:59.

South Korea's largest retailer. It is not the first to be investigated

:01:00.:01:03.

by authorities in recent years. Earlier, a consultant in Sol Davis

:01:04.:01:09.

more details. It really starts with the succession crisis. -- in Seoul

:01:10.:01:17.

gave us more. The two brothers, the younger brother, he is 60 and his

:01:18.:01:21.

father is in his 90s. The founder of the group. The two brothers were

:01:22.:01:27.

struggling for control in the event of the father no longer being

:01:28.:01:30.

competent to run the group. This became a very public fight when the

:01:31.:01:36.

younger brother won control of the South Korean part of the group.

:01:37.:01:43.

Originally, Lotte started in Japan, although it is Korean, but gradually

:01:44.:01:48.

the Korean side has gotten more and more powerful. So having control of

:01:49.:01:56.

the group, the older brother then tried to manipulate the fact that in

:01:57.:02:02.

the end the group is controlled by some obscure companies in Japan. So

:02:03.:02:07.

the fight was a public fight continued over several months. So

:02:08.:02:14.

naturally the authorities got very interested in many respects. It is

:02:15.:02:17.

interesting that the authorities have gotten interested. We know it

:02:18.:02:21.

Lotte is the biggest retailer, huge department stores all over Sol. The

:02:22.:02:27.

fact that this seems to be the government going after people who

:02:28.:02:33.

have their hands in every part of South Korea's economy. What impact

:02:34.:02:40.

might this have on South Korea? Lotte is not unique. Over the course

:02:41.:02:49.

of the 21st-century, about 14 have been investigated, about one per

:02:50.:02:55.

year, and sometimes investigated twice. So it is pretty well half of

:02:56.:03:01.

the course but the authorities are always watching what the chairman at

:03:02.:03:08.

doing, looking for embezzlement and other things -- what the chairman

:03:09.:03:12.

are doing. That is what they are doing when they investigate. In

:03:13.:03:19.

other business days, Unilever is buying an American company that

:03:20.:03:21.

makes environmentally friendly home personal care goods. The consumer

:03:22.:03:26.

goods giant is essentially taking over seven generation, which makes

:03:27.:03:31.

items like recycled paper tissue and temperance. Report said the deal was

:03:32.:03:37.

worth between 800 million and $1 billion. Barack Obama has asked

:03:38.:03:44.

China to speed up its efforts to address industrial capacity. He

:03:45.:03:47.

called for China to develop a level playing field for all companies and

:03:48.:03:52.

to advance an orderly transition to a market determined exchange rate.

:03:53.:03:56.

President Obama made the comments when he meet -- when he met with the

:03:57.:04:05.

Premier Li Keqiang. Russian President Putin has tightened his

:04:06.:04:08.

grip on power following the parliamentary elections. When it

:04:09.:04:11.

comes to the economy, it is a dire situation. According to the World

:04:12.:04:16.

Bank, its economy has shrunk from just over $2.2 trillion in 2013 to

:04:17.:04:23.

1.3 tree in dollars in 2015. That is a 14% drop -- $1.3 trillion. The

:04:24.:04:30.

finance ministry warned that it is fast running out of rainyday fund.

:04:31.:04:35.

Earlier, our correspondent from the Asia business union asked if they

:04:36.:04:42.

were concerned. It is one thing about Russians and the Russian

:04:43.:04:46.

country in general, after the Second World War, and a country facing

:04:47.:04:54.

strong difficulties and external threats, most people start to

:04:55.:04:57.

mobilise a lot. Nobody is saying what things will happen, but we are

:04:58.:05:05.

being forced to go from being commodities based in the economy to

:05:06.:05:11.

more efficiency. So now the country and political leaders understand

:05:12.:05:15.

very well that they have to do everything very efficiently, and

:05:16.:05:20.

also innovations, or to my station, and other things that can really

:05:21.:05:26.

rise up the economy -- or to my session. When you say they have to

:05:27.:05:32.

do things efficiently, what will they do with those two interlinked

:05:33.:05:35.

reserves? I cannot give you the exact plan of action -- with those

:05:36.:05:45.

dwindling reserves. The economy is falling, and it is quite bad. But

:05:46.:05:50.

when we are speaking about the external and global threat, it is

:05:51.:05:57.

like Christmas sale. Every 50%. Because of the sanctions that have

:05:58.:06:02.

been placed on Russia by the Western economies, is Russia now having to

:06:03.:06:05.

look increasingly to Asia? How's that relationship looking? Well, it

:06:06.:06:11.

is exactly what we are working for. It is one of the main things we are

:06:12.:06:16.

targeting out. Russia is a big country and half Europe and have

:06:17.:06:25.

Asia. -- half Asia. When the western part makes sanctions towards us, we

:06:26.:06:28.

are looking forward to more partnership with China, India, and

:06:29.:06:32.

south-east Asian countries like Vietnam, Singapore and Cambodia.

:06:33.:06:41.

Let's turn now to the tech sector. Go pro is set to debut new products

:06:42.:06:46.

including a drone that may make or break the company. After going

:06:47.:06:52.

public in mid-2014, its share price has tumbled, 790% of its valuation.

:06:53.:06:58.

The company has faced increased connotation and struggled to come up

:06:59.:07:01.

with a new key product -- bruising 90%. It is not unusual to hear of

:07:02.:07:08.

firms facing an uphill battle with expansion, part of the e-commerce

:07:09.:07:12.

landscape which is considered to be in its infancy. One business in

:07:13.:07:15.

Thailand is helping companies reach their customers faster. We are told

:07:16.:07:21.

more about this start-up success. E-commerce is an end to end

:07:22.:07:35.

e-commerce solutions provider. It means any, is anywhere any time --

:07:36.:07:42.

A-commerce. It is not just the consumer, it is as Mrs, governments,

:07:43.:07:50.

and how do people transact online. -- it is businesses. We focused on

:07:51.:08:00.

Thailand first, and how can we help take a brand and help them connect

:08:01.:08:06.

with their end consumer. We were building the website, the e-commerce

:08:07.:08:10.

site for them, their marketing strategy, fulfilment, warehousing,

:08:11.:08:15.

and all of their deliveries. 23 years back, it will take over 14

:08:16.:08:20.

days to deliver a package in Southeast Asia. Our vision was to

:08:21.:08:24.

fix that. But we knew that once we were on this mission to fix

:08:25.:08:28.

e-commerce and the infrastructure, we knew we had to fix not only the

:08:29.:08:32.

payment gateways, the delivery, all the way up to marketing and content

:08:33.:08:37.

and advertising. We saw the opportunity to fix what we call in

:08:38.:08:44.

to end as incredibly important. The reason why aCommerce will do any

:08:45.:08:54.

e-commerce that existed online. We are setting up fulfilment centres,

:08:55.:08:59.

delivery fleet, and for us, we have over 100 people in basically our

:09:00.:09:05.

development hub in Angkor, where we are building the platform to scale

:09:06.:09:09.

across the region -- Angkor. We are spread across Thailand, Indonesia,

:09:10.:09:15.

the Philippines and now just setting up Singapore. We are a cross for

:09:16.:09:20.

different markets. We have been cash positive in Thailand a couple of

:09:21.:09:23.

times this year, and in Indonesia as well once. Each market has its own

:09:24.:09:29.

dynamics, but we like Thailand because it really sets a great

:09:30.:09:34.

testing land for what a real model for a market would be like in

:09:35.:09:38.

Indonesia. For us as a company, we want to be able to provide a sickly

:09:39.:09:43.

a platform for an operating system to help brands likely be able to

:09:44.:09:47.

sell across all different forms of e-commerce across the region --

:09:48.:09:48.

basically a platform. The study's stock exchange will be

:09:49.:09:58.

in focus today after suffering its worst and you disruption in at least

:09:59.:10:02.

five years -- Australia. It was forced open late and shot early due

:10:03.:10:08.

to a highway great. It happened two months into the new CEO's tenure,

:10:09.:10:12.

who has apologised for the outage. Let's take a look the markets.

:10:13.:10:18.

Japan's Nikkei has opened lower after a public holiday on Monday.

:10:19.:10:22.

That is essentially due to a slightly stronger yen. We are seeing

:10:23.:10:26.

Australia functioning today, down slightly as well. That is it for

:10:27.:10:31.

today's Asia Business Report. Thank you for watching.

:10:32.:10:38.

A man suspected of planting bombs in New York and New Jersey has been

:10:39.:10:43.

Download Subtitles

SRT

ASS