10/10/2016

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:00:00. > :00:00.reveal how many foreign workers are employed. The data will be collected

:00:00. > :00:00.but not made public. More from the United States with the debates. But

:00:00. > :00:17.first, Asia Business Report. Hillary Clinton and Donald Trump

:00:18. > :00:22.countdown to the second Presidential Debate. We ask what a Trump

:00:23. > :00:28.presidency would mean for the global economy. Driverless cars will change

:00:29. > :00:30.the roads in a few years, but it may also cause a radical shift in the

:00:31. > :00:46.insurance industry. Good morning Asia, hello world,

:00:47. > :00:49.thank you for joining us on Asia Business Report. The second debate

:00:50. > :00:54.between US presidential candidates Hillary Clinton and Donald Trump

:00:55. > :00:59.will be starting very shortly with polls putting their neck and neck in

:01:00. > :01:02.the battle to the White House. There are worries that close race will

:01:03. > :01:09.spark volatility in the financial markets. We ask well-known emerging

:01:10. > :01:16.markets investor Mark Mobius if he is concerned. The key point is if

:01:17. > :01:23.Trump get selected he will act as a negotiator. He is a businessman. He

:01:24. > :01:27.knows how to negotiate. That is his strength. At the end of the day he

:01:28. > :01:31.will come to some agreements. He won't be afraid to fly to Mexico to

:01:32. > :01:36.come to some understanding. Same thing with Asia any other parts of

:01:37. > :01:41.the world. At the end of the day it will probably be positive. Federal

:01:42. > :01:47.Reserve, everyone is waiting for them to raise interest rates. People

:01:48. > :01:51.are making a mistake thinking that because the Fed will raise rates

:01:52. > :01:55.that the stocks will go down. This will not necessarily happen. And in

:01:56. > :02:01.addition to the fact that if there is a rate increase it would be very

:02:02. > :02:05.small. Very little impact. The direction, however, unfortunately is

:02:06. > :02:14.towards negative rates. If you look at what the Economists are saying,

:02:15. > :02:18.-1 doesn't work, let's go to -2, let's go to three or four, this is

:02:19. > :02:25.the reality of the mentality that we are seeing. This central bankers are

:02:26. > :02:35.being influenced by the central bankers. -- by the Economists. Could

:02:36. > :02:39.they go to negative rates? It could. They have threatened to raise rates

:02:40. > :02:45.many times but didn't do it. And it depends on the level of the

:02:46. > :02:49.economies. I know some of the governors want to raise rates. And

:02:50. > :02:53.there are many people in America who want to have rates higher,

:02:54. > :03:03.especially those on fixed income and pensions and so forth. At the end of

:03:04. > :03:06.the day is not clear that the Fed will do it. To negative interest

:03:07. > :03:09.rates were? We haven't seen an effect in Europe or Japan. They

:03:10. > :03:16.haven't worked. This central banks are given responsibility for growth

:03:17. > :03:19.which they should not have responsibility for, it is

:03:20. > :03:24.politicians, the reform programme that results in growth. So this is a

:03:25. > :03:28.real dilemma. There is too much dependence on central banks. Mark

:03:29. > :03:35.Mobius is speaking with our correspondent. AT has stopped

:03:36. > :03:38.replacement of the Galaxy Note 7 after reports of more replacement

:03:39. > :03:45.phones overheating. If confirmed that will be three in a week. This

:03:46. > :03:49.teenager in the US says her Samsung phone melted on her hand. Her father

:03:50. > :03:53.says the phone is a replacement for the Galaxy Note 7 that was part of a

:03:54. > :03:58.global recall last month. This comes after a US plane was evacuated last

:03:59. > :04:04.week after a Note 7 phone on board the plane started emitting smoke.

:04:05. > :04:08.India's e-commerce companies will have a bumper period as festival

:04:09. > :04:11.season approaches with the sector becoming fiercely competitive since

:04:12. > :04:16.US online giant Amazon started pouring money into India. That is

:04:17. > :04:22.not putting off the country's local brands. We catch up with the head of

:04:23. > :04:27.one of them, the Indian company Mintra. She started asking why the

:04:28. > :04:31.market is so promising. E-commerce as a space is here to stay because

:04:32. > :04:36.it provides services to our customer, which is convenient.

:04:37. > :04:41.Fashion and lifestyle is the number two category after mobiles and it

:04:42. > :04:44.will be for a while. However, it is very profitable because margins are

:04:45. > :04:47.much higher. You recently made one of the biggest acquisitions we've

:04:48. > :04:54.seen in this industry when you acquired a rival company, so what do

:04:55. > :04:58.you plan to do with it, will you consolidate or run them

:04:59. > :05:02.independently? We are $2.5 billion in online fashion and lifestyle

:05:03. > :05:06.services and that number will become 4 billion. That has happened

:05:07. > :05:10.everywhere else in the world and it will happen here as well, so the

:05:11. > :05:13.purpose of the acquisition, it is rare to buy their number two player

:05:14. > :05:18.as number one player, so the purpose was to look at how to grow the

:05:19. > :05:22.market. Companies like you have been growing fast however online reach in

:05:23. > :05:26.India is still very small. How do you respect it to grow further? The

:05:27. > :05:33.biggest problem in fashion is not reach, we have the problem of size,

:05:34. > :05:39.touch and feel, which we are solving through technology with a service

:05:40. > :05:43.called try and buy to order multiple clothes, the guy will wait for you

:05:44. > :05:48.and you return it, so we bring the trial room to you. That is what is

:05:49. > :05:54.going to grow the market. You have to think about other value, can I

:05:55. > :05:59.get better service, alterations, more selection, can I offer more

:06:00. > :06:05.international brands? You are owned by one of the ten most valuable

:06:06. > :06:10.start-ups of the world, so how does it help? Many different things. The

:06:11. > :06:14.first is capital, which is very important, and the second is the

:06:15. > :06:17.ability to make bold moves like what we have done. As a stand-alone

:06:18. > :06:24.company we couldn't do that. And third is we leverage with the supply

:06:25. > :06:27.chain, so if you focus on that you can provide better service. While

:06:28. > :06:31.you talk of opportunities in the market, surely there are challenges.

:06:32. > :06:37.The first is keeping up with scale and growth. Not so much the market

:06:38. > :06:40.but internally as a company, growing 80% year-on-year, how can you make

:06:41. > :06:45.sure the processors come along and the culture stays what it is

:06:46. > :06:49.supposed to be, how can we stay innovative, that is what I am

:06:50. > :06:52.worried about. The market will happen. We are focused on the

:06:53. > :06:56.customer and the market and making sure that we can keep pace with

:06:57. > :07:01.growth is the biggest challenge. We might be a few years away from

:07:02. > :07:05.consumers buying driverless cars but the technology is about to radically

:07:06. > :07:10.changes the insurance industry and according to one US report premiums

:07:11. > :07:17.could drop more than 40% want the autonomous cars are fully adopted.

:07:18. > :07:21.So how is the industry assessing risk? Chief executive of the

:07:22. > :07:33.insurance provider FWD Group spoke to us and said that is the billion

:07:34. > :07:37.dollar question. The technology is changing across the way we do

:07:38. > :07:41.business from the way we talk to the customer, the way we sell a product,

:07:42. > :07:45.the way we design a product, the way we serve them and the way we make

:07:46. > :08:00.claims. Everything is changing in the industry.

:08:01. > :08:05.The relationship of the insurance contract between an individual and

:08:06. > :08:10.the insurance company will evolve also. So at the moment it is

:08:11. > :08:14.individual customers, consumers still responsible for their own

:08:15. > :08:18.insurance coverage. In the next five to ten years I have no doubt that

:08:19. > :08:24.the relationship will evolve. It will become a contract with the

:08:25. > :08:28.insurance company and the car manufacturer or the software

:08:29. > :08:37.manufacturer and at that time the liability or shift from individuals

:08:38. > :08:40.into more of a group setting. The road will change. For example, now

:08:41. > :08:45.when you get on an aeroplane you don't think about the aeroplane

:08:46. > :08:50.insurance any more as a passenger. In the future we will change our

:08:51. > :08:57.behaviour accordingly and we will work with the car, it is Uber or

:08:58. > :09:00.Tesla, the relationship with the insurance company will be very

:09:01. > :09:07.different. That is a very relevant one, I think, the impact of the

:09:08. > :09:11.revenue model on one hand, certainly insurance and policy will go down

:09:12. > :09:13.but on the other hand are the insurance will probably fill the

:09:14. > :09:23.different need that the consumer wants. From our own perspective this

:09:24. > :09:28.will be much safer. The rate of the incidence of accidents in a

:09:29. > :09:34.driverless environment will be lower than the human controlled

:09:35. > :09:42.transportation. From a personal perspective I am quite excited

:09:43. > :09:47.because I have to make -- two teenagers and I am most worried

:09:48. > :09:57.about accidents with my kids, so this can bring a positive change to

:09:58. > :10:00.society and is just fantastic. The insurance industry during the era of

:10:01. > :10:05.driverless cars. Let's have a quick look now at the Asian markets and

:10:06. > :10:10.they could be moving sideways today. The latest US drops reports revealed

:10:11. > :10:15.that employers hired at a slower pace than forecast. Well, you have

:10:16. > :10:21.the Nikkei two to five in Japan closed due to public holiday --

:10:22. > :10:25.negate 225. The Hang Seng index in Hong Kong will open their trading

:10:26. > :10:29.doors for the trading week in about 15 minutes time. Thank you so much

:10:30. > :10:37.for investing your time with us. Have a great day, everyone. I'm Rico

:10:38. > :10:42.Hizon. Goodbye for now. You're watching BBC News. The second

:10:43. > :10:45.presidential debate is coming up at the top of the hour between Hillary

:10:46. > :10:50.Clinton and Donald Trump. Barbara Plett-Usher has been looking back at

:10:51. > :10:51.the candidates' first confrontation to get an idea of what we might