30/09/2016 Asia Business Report

Secretary Liam Fox has urged to support the economy. Now to business

news. Back in stores, Samsung is set to

resume the sale of its phones after recent recalls.

Good morning, Asia, hello, world, it is a Friday! We start off with

Samsung Galaxy Note 7 which has been making headlines for the wrong

reason because of its faulty batteries which are a fire hazard

which meant the company had to recall the phones. Tomorrow it will

be back in stores but will sales bounce

back? It is as it wound back the clock back to September, doing it

all again. At the beginning of September, it announced it would

recall 2.5 million phones across the planet because of that problem. A

few having exploding batteries. The figures differ for different

countries. In Korea four out of five have been returning. The figure is

smaller in some places. In Europe and the US it is probably 60%. The

new phone goes on sale properly and it looks just like the old phone.

The battery is different and the 1-way you can tell the difference is

that there is a green battery icon on this. There is clearly a cost to

Samsung. It is not giving figures but there is a cost in lost time.

There will be revenue loss because of the brand damage. At the seven

was launched in August and it was a perfect time for a Samsung to go one

step ahead of Apple but they lost the chance, they lost a month.

Samsung Electronics makes a raft of staff, TV, microwaves, washing

machine, you name it that this is a big focus of its efforts. There is a

global battle of smartphones with Apple. Samsung has messed up the

launch of this, there is no doubt, and that cannot help but in that big

global commercial flights. Samsung is also in talks over

concerns over safety issues when it top load washing machine -- with its

top load of washing machines in the US. The car makers plan to end the

Sunderland could lose competitiveness if Brexit result in

the UK trading with Europe under world trading rules. It would add

10% to the price of the vehicle produced in the UK. We went to the

Paris motor show. Frankly, what we are looking for is not to interfere

in the intubation which may be a national situation. We want to make

sure that when we have a European plant based in the UK, 80% of our

products are being shipped from Sunderland to Europe, that this

decision taken by the people of Great Britain does not translate

into a handicap for Nisan. If we continue to do business as before,

we have absolutely no problem. Whatever decision will be taken, the

move of goods between the UK and Europe being as fluid as before. If

that seems travel trading under these rules, adding 10% to the car

being exported, would that represent a handicap you are talking about?

Without any doubt. What would that mean for Sunderland? It would mean

Sunderland would lose competitiveness where we come to

choosing a place to source the product to Europe because we are

taking 10% higher cost for tax reasons. To put it bluntly, it we

revert to WTO rules it could hurt Sunderland? Without any doubt as to

find ways to compensate for the 10%. Indonesian workers took to the

street in Jakarta to protest against the government takes which is meant

to plug a budget deficit. Unions say it unfairly pardons takes dodgers.

Many of these people have been waiting for up to nine hours to be

called in to do their tax return. They are trained to take advantage

of the low rate of tax of that now as part of the tax amnesty. They

have never seen in the office so busy. Many people come in to pay the

penalty, the 2% penalty, before the 13th of September. They are trying

to get a generous rate. Amongst those include a number of

high-profile businessmen, including the son of former President Suharto.

They want to convince people to bring money back from money havens

such as Singapore and the Cayman Islands. The programme could raise

billions of dollars. The tax amnesty programme has been controversial and

powerful trade unions have brought their members out on the streets

today to protest because they say it is unfair. TRANSLATION: People who

have stolen from the country have been given the tax amnesty but

law-abiding people are not given special treatment. You do not accept

the President's explanation that the money raised will be used for

infrastructure building, education and other policies? TRANSLATION: It

can be done and different way, if the country desperately needs money.

Like would you forgive that companies who have stolen the

country's wealth for themselves? China is set to enjoy a double

celebration this weekend, tomorrow we have the country marking both

national day as well is a date when it becomes a global reserve

currency. This includes the US dollar, the pound, the euro and the

yen. What impact will it have? First and foremost, it is obviously a

symbolic gesture. It is, for the first time, the IMF adding any

currency to the basket since its inception. It is one of the most

important implications is that it become an officially a currency

which can be reported as part of the reserve. The biggest implication is

actually the reforms the Chinese authorities did before getting into

the basket, in order to meet the criteria. Starting last year, in

July, they opened up the market fully for central banks to become

multilateral. Are you saying it is now a fully convertible currency?

For the central bank and the public sector community it is fully

convertible. The are restrictions for the Chinese domestic inventors

are the Chinese authorities have opened up the capital account and

especially the access to the market fall private investors. It is a

recognition of China's structural reform. You have the US at 40. It is

more than the pound. And the yen. Could we see the rate increase over

time? What happens today is that they are going to fix the currency

amounts for the SDR. If they move, the relative rate can change that

the next time they look at the actual way it is after five years

when it can officially go up. -- weight. It is likely that it would

because of the exports and other things. Let's have a quick look now

at the markets and, as you can see, it is in negative territory after US

stocks tumbled of after renewed worries on financials and

withdrawals from Deutsche Bank. Sports Today is up next. Welcome.

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