:00:15. > :00:21.Chickening out. The owner of KFC prepares to spin off its China
:00:22. > :00:27.business as it disappoints with a fall in sales. Sex on the sly. An
:00:28. > :00:38.Indian start up helps young couples escape disapproving eyes. Good
:00:39. > :00:42.morning, Asia and hello world. It is Thursday. Glad you could join us for
:00:43. > :00:49.this edition of Asia Business Report. We begin with Young Brands
:00:50. > :00:58.and the company has missed its mark for third-quarter results. The
:00:59. > :01:04.protest in China against Western brands. The owner of KFC, Taco Bell
:01:05. > :01:11.and Pizza Hut will be spinning off its China business in a few weeks
:01:12. > :01:15.time. It is not the one making big changes. McDonald's is also
:01:16. > :01:19.reportedly planning to convert more than 2000 stores into a franchise
:01:20. > :01:29.business. Why are fast food companies switching things up? I
:01:30. > :01:32.earlier spoke to somebody for a reaction to the earning results from
:01:33. > :01:36.Yum Brands. It is a backlash against the dispute in the South China Sea
:01:37. > :01:39.and what they did was not deliberately boycott but I think
:01:40. > :01:43.mentally sort of try boycott these are Western brands. That hurt
:01:44. > :01:50.Kentucky fried chicken. It is spinning off the chiding business,
:01:51. > :01:55.is that the right way for Yum Brands or for McDonald's which is going for
:01:56. > :02:02.a franchising strategy? It is the right time, but also for McDonald's.
:02:03. > :02:06.Western brands can sell in China and they have made tremendous amount of
:02:07. > :02:12.money from this. Consequently what they are saying is that the next
:02:13. > :02:17.stage of growth had been plucked all of the low hanging growth, they now
:02:18. > :02:21.want to expand into the rest of China. In the case of Yum Brands
:02:22. > :02:26.they want to triple the number of stores that they have. They say now
:02:27. > :02:33.that they have done all they can, and now it is up to the Chinese
:02:34. > :02:37.market. They will be licking their fingers all the way to the bank.
:02:38. > :02:45.Even though they spin off the China business, David, it still has the
:02:46. > :02:50.Western brand. So will the new or owner also feel political backlash?
:02:51. > :02:57.This is the stupidity of it all. What they are damaging is
:02:58. > :03:03.themselves. Yum Brands China will be owned by the company that is of Ali
:03:04. > :03:12.Babar. It is now a Chinese company, not a Western company. I think the
:03:13. > :03:16.boycott will be short lived. A smart move for McDonald's because when you
:03:17. > :03:20.have this franchising strategy you have royalties every year and you
:03:21. > :03:23.have a recurrent income at Hull on the other hand this could also
:03:24. > :03:27.impact the quality of McDonald's because franchise also often have a
:03:28. > :03:32.difficult time maintaining quality of food. In the case of Yum Brands
:03:33. > :03:37.and in the case of McDonald's it will be a franchise and they will be
:03:38. > :03:46.earning a revenue from this. In the case of Yum Brands they will get 3%
:03:47. > :03:49.of sales. And they will be getting that for doing absolutely nothing
:03:50. > :04:01.except providing the brand. In other business news, Samsung Electronics
:04:02. > :04:05.is acquiring Viv Labs. With this acquisition Samsung plans to
:04:06. > :04:11.integrate the AI platform into its range of Galaxy smart phones.
:04:12. > :04:15.Staying with Samsung, a Southwest Airlines flight departing in
:04:16. > :04:20.Kentucky was evacuated after a passenger's Galaxy Note 7 smart
:04:21. > :04:27.phone started emitting smoke. That model is on a global recall and
:04:28. > :04:35.Samsung cannot confirm if that incident is caused by a new and
:04:36. > :04:43.replaced phone. The bank of Australia are under watch this week.
:04:44. > :04:49.There is a parliamentary enquiry into their activities. The manager
:04:50. > :04:54.of ANZ has already apologised for not meeting proper standards. We
:04:55. > :04:59.heard from ANZ, one of the biggest banks here, accepting that there had
:05:00. > :05:02.been problems, some blunders, money played into wrong accounts. The
:05:03. > :05:08.chief executive saying there was not a blokey culture within banking in
:05:09. > :05:13.Australia. Likewise we are hearing from the head of the NAD bank and
:05:14. > :05:17.the biggest business banker in Australia. He denies that there is
:05:18. > :05:23.systemic failure within the banking system. There was detailed their on
:05:24. > :05:27.rogue financial planners. 43 have been suspended by the bank. He
:05:28. > :05:33.accepted that no senior manager had lost their job, however. The
:05:34. > :05:37.questioning was fierce by the MPC in Australia who feel that customers
:05:38. > :05:42.are being wronged and problems need to be faced. So the
:05:43. > :05:46.parliamentarians, are they satisfied with this apology and the lip
:05:47. > :05:50.service or do they want some major changes within the internal culture
:05:51. > :05:56.of the banking industry? Everyone says they want change, the question
:05:57. > :06:00.is what change will they get? Already this week the government of
:06:01. > :06:03.Malcolm Turnbull has assembled legislation on rate reading. That is
:06:04. > :06:09.significant because three of the banks appearing this week, NAD, ANZ
:06:10. > :06:13.and Westpac have been accused of market manipulation by the regulator
:06:14. > :06:18.here in Australia. People want more action. There is talk of a tribunal
:06:19. > :06:22.system for aggrieved customers which would mean they would not have to go
:06:23. > :06:26.through a lengthy court case. But the opposition party here in
:06:27. > :06:32.Australia say that this process so far has been a whitewash. They have
:06:33. > :06:38.been too soft. What they want is a royal commission that would look at
:06:39. > :06:41.granular detail of some of the problems. But you must remember that
:06:42. > :06:45.the banks here in the regulatory system is credited with stopping
:06:46. > :06:50.Australia going into recession when many of the markets in the world
:06:51. > :06:54.failed. While there are clearly problems being exposed, overall,
:06:55. > :07:00.people here argue that the banking system in Australia is still in
:07:01. > :07:05.robust health. Now there are plenty of companies out there aiming to
:07:06. > :07:11.make breathing easier. In particular in India it can be difficult. Many
:07:12. > :07:15.of the young people live with large and disapproving families in small
:07:16. > :07:24.houses with little privacy. Enter by's uncle. It helps young couples
:07:25. > :07:29.book hotel rooms for half a day. Stealing a few moments alone.
:07:30. > :07:34.Couples in Mumbai have few places to go if they want to sneak a kiss all
:07:35. > :07:38.hold hands stop in India, public displays of affection can be seen as
:07:39. > :07:44.a moral and premarital sex is still taboo. This is one of the so-called
:07:45. > :07:51.lovers points. Couples come here every day to spend some time alone.
:07:52. > :07:55.But it is not ideal. Open Era and right by the road. And, importantly,
:07:56. > :08:02.a high chance of being seen by somebody known to the family. What
:08:03. > :08:09.are the alternatives? When you go to a hotel you know, you know by the
:08:10. > :08:14.way that people look at you. It makes you feel disgusting about
:08:15. > :08:20.yourself. This young woman did not want to reveal her identity. But she
:08:21. > :08:25.is exactly the kind of customer a new start up is targeting. Stay
:08:26. > :08:31.uncle helps young couples or could discreetly by helping them find a
:08:32. > :08:35.place to stay that will accept them. It is not legal but convincing
:08:36. > :08:41.hotels to signup has not been easy. There has been almost seven months
:08:42. > :08:48.now. We still face difficulties in actually, you know, asking hotels to
:08:49. > :08:56.accept couples. There are only two or three hotels on board at the
:08:57. > :09:04.moment. This is the kind of moral policing we are talking about. Last
:09:05. > :09:10.year Mumbai police evicted couples from hotels. For the businesses are
:09:11. > :09:14.willing to take the risks it is already proving to be profitable.
:09:15. > :09:21.The rooms are offered 14 hours each at 60% of the normal rate making it
:09:22. > :09:29.possible to rent one room out twice in a day. She had to face it. If
:09:30. > :09:33.they are doing it by the law, it is OK. Ultimately we will say yes. We
:09:34. > :09:40.have a hotel and it is profitable. It is worth doing. The conservative
:09:41. > :09:49.attitudes of India towards love and intimacy are a struggle for some
:09:50. > :09:52.couples. But fought start-ups like Stay Uncle and its hotel partners,
:09:53. > :09:57.there is an opportunity to make money. Here is a quick look at the
:09:58. > :10:01.marker before we go. A positive day for Asian stocks as you can see.
:10:02. > :10:05.They are all on the plus. This is after US shares gained overnight,
:10:06. > :10:09.led by petroleum companies due to high oil prices large banks and
:10:10. > :10:11.expectations that the Federal bank will assume the cost of borrowing
:10:12. > :10:22.for the end of the year. The All Ordinaries index, because of
:10:23. > :10:25.the rising price of commodities, is up by 15 points. Those are the
:10:26. > :10:27.markets. Thank you for investing your time with us. Sport Today is
:10:28. > :10:46.coming up next. Our top stories this hour, at least
:10:47. > :10:48.three people have been killed by Typhoon Chaba in South