20/09/2016 Asia Business Report


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

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


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


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


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


by prosecutors who have been looking into bribery allegations against


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


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


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


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


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


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


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


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


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


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


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


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


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


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


interesting that the authorities have gotten interested. We know it


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


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


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


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


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


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


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


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


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


other business days, Unilever is buying an American company that


makes environmentally friendly home personal care goods. The consumer


goods giant is essentially taking over seven generation, which makes


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


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


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


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


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


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


Premier Li Keqiang. Russian President Putin has tightened his


grip on power following the parliamentary elections. When it


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


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


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


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


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


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


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


strong difficulties and external threats, most people start to


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


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


more efficiency. So now the country and political leaders understand


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


The company has faced increased connotation and struggled to come up


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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