12/10/2016 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.

Similar Content

Browse content similar to 12/10/2016. Check below for episodes and series from the same categories and more!



The value of the sterling continues to slide as concerns continue about


access to the European market. Now on BBC News, all the latest


business news live from Singapore. Saint-Saens share price continues


its downward slide. -- Samsung. And we speak to Indonesia's former trade


minister about how China's slowdown is affecting his economy. Good


morning. Glad you could join us for this midweek edition of Asia


Business Report. I'm Rizo Hizon. We kicked -- kick off with Samsung


Electronics and its shares have dropped another 3% of the hefty


falls in its market value on Tuesday. This follows the company's


decision to permanently stop reduction of its faulty Galaxy Note


7, which has left the company facing a mounting bill. The device was


meant to rival Apple but is now a corporate disaster. Here is our


technology correspondent. In a fast food restaurant a mobile phone is on


fire. This all involve replacement Galaxy Note 7 phones. Now Samsung


has halted production and sales of the phone. Customers have been told


to turn them off and return them to stores. In London this morning this


man who bought previous versions of V Note was disappointed. I love the


phone and was told to send it back. I got my replacement and I was happy


with it and I was heartbroken to have to take my new phone in and


handed back. Samsung broke new ground with the Note, proving there


was an appetite for a bigger phone. We believed this would be the


bestselling yet. It is now clear that the Galaxy Note 7 isn't coming


back and the company must concentrate on limiting the damage


to its whole brand. Shares in the company fell sharply, wiping


billions of its value as investors worried that the reputation of its


other products might suffer. What's interesting about Samsung is it is


really respected as being technologically excellent and also


really great functionally. When that basis of trust has been damaged,


that's what they need to recover from and that will be the test on


whether they are able to recover some of the value that they are


losing by the day. While this incident is the most serious so far,


Samsung isn't alone in seeing smartphone batteries overheat. The


reason for the problem is that modern smartphones are immensely


powerful computers. They use a lot of energy to make all of those


wonderful things work. That energy could be dangerous if it gets


released quickly and in certain circumstances that can happen.


That's the problem. We want more and more from our phones, but as Samsung


has found the one thing we demand above all others is that they are


safe. The fierce competition in the


smartphone sector has led to a lawn and constipated legal battle with


Apple over patents. -- complicated. There has been a dispute over


designs and intellectual property, but can Apple and smaller rivals


gain from Samsung's problems? At this stage Apple has the upper hand.


The rivalry has been going on for years. The first and foremost


question is whether they copied some of the design patents from Apple.


And how important is the design aspect in a smartphone, visit the


visibility aspect. Taking a look at these phones and the patents, some


of them are not widely available on so does this case really matter or


is this just boiling down to the patents and the designs? This might


be used as a benchmark for smartphones and other technology


products. The whole issue about what is the design complex vis-a-vis the


utility, that's what the debate is. Is it the design aspect or the


utility aspect influencing the money flow. That is the bigger question,


in terms of this might be used as a benchmark case. Taking a look at


Samsung and the Galaxy Note 7, it will no longer be in production.


What do you think will happen? How can Samsung recover from this? Will


they have a Note8? I don't think so. It has been a disaster, even in the


second phase. Do you think they should come up with a totally new


product? I think so. The Note brand is now associated with the disaster.


I think it would be important for Samsung to work on rebranding, teach


the Note series itself. How do you think it will take? I would have


thought it would take at least two to three quarters for them to


rebrand, come up with a new series and totally avoid the Note branding,


which has been associated with a disaster in the last three quarters


now. In other business news: Japan's Parliament has passed an extra


spending package of $32 billion, boosting Shinzo Abe's land to revive


the economy. It will be funded by lawns, adding to Japan's already


heavy public burden. The money will be spent on infrastructure projects


and boosting money for healthcare workers. Fujitsu was planning to


slash a number of jobs in the UK, more than 10% of its workforce. The


plan would see the first workers leave early next year. The company


says it is not linked to Britain's decision to leave the EU, but in


line with its goal to become more competitive against foreign rivals.


The union representing workers is deceptive resume talks with


management in a bid to end the dispute for higher pay. This comes


after months of industrial action, including a nationwide strike last


month. The walkouts have any cost the company $2.6 million in loss


production. Indonesia's economy continues to


prove resilient, despite a slowdown in its nearest and largest


neighbour, China. The head of Indonesia's investment and former


trade minister spoke to us and started by explaining how the


slowdown is impacting his country's on economy. The major transition in


the Chinese economy from heavy industry towards more high-tech and


services, the desire by the Chinese leadership to be more consumer


driven, all the economies in China's backyard, ours included, have to


adjust to that, do we have to shift from supplying raw materials to


Chinese industry towards more consuming... Towards more producing


consumer goods, or for example tourism services, for the rising


consumer class. One of the issues I am sure you will be discussing is


Britain's decision to leave the EU. Does that create any particular


problems for Indonesia or your relationship with Britain or the EU?


It is certainly a fresh wrinkle. I don't think it constitutes anything


that's not manageable. For example, as we complete our trade agreement


with the European Union in the next two or three years, you know, that


set the template that could easily replicate to the UK. In Indonesia


you have this tax amnesty whereby people who haven't paid taxes they


should have done can come forward now and pay only minimum penalties.


Is that there on the people who have been paying their taxes all along?


Yes, the OECD also heavily criticised our tax amnesty for being


excessively generous to people who have been obtaining tax for many


years or even decades. In that sense, being punitive to people who


have been compliant. But, like you said, it is on track to being the


most successful tax amnesty in the history of the world, which


surprises frankly even be, but I'm very happy. I think what I would say


is that it's a perfect illustration of the very pragmatic approach,


which the president has brought to our economic policy. What it says


is, look, forget about the past, what's past has passed, let's just


push the reset button, start with a clean slate and if I can offer very


attractive terms to attract back billions and even tens of billions


of dollars the capital, which he is now well on track to accomplish,


then that's good for the economy now and going forward.


That was Indonesia's investment minister speaking with Andrew


Walker. Before we go, a quick look at the markets. So far it's a day of


losses for Asian stocks. This is after US equities tumbled overnight


due to a disappointing start to the earnings season. Especially led by


resource company Alcoa, whose numbers fell before market


forecasts. That is also dragging down stocks in Australia's big


miners and adding to the issue of investorsand the price of oil. That


is all from the four now. The top stories this hour:


Donald Trump has lambasted senior Republicans for abandoning his


campaign and said he's now free


Download Subtitles