:00:00. > :00:00.calls for the former owner of Rajesh home stores, Sir Philip Green, to be
:00:00. > :00:14.stripped of his knighthood. -- British home stores.
:00:15. > :00:23.Goodbye America, hello China. Philippine President Duterte science
:00:24. > :00:28.billions in deals despite their territorial tensions. Ready for
:00:29. > :00:38.action. Taiwanese start-ups are getting a professional makeover.
:00:39. > :00:44.Hello and welcome to Asia Business Report, I am Sharanjit Leyl.
:00:45. > :00:47.Philippine President Roderigo Duterte has been on a charm
:00:48. > :00:52.offensive this week in China. The two countries are involved in a
:00:53. > :00:56.bitter territorial dispute over islands in the South China Sea, but
:00:57. > :01:06.they have decided to focus on closer economic ties. President Duterte and
:01:07. > :01:11.Xi Jinping sign deals worth $13.5 billion and during his trip Mr
:01:12. > :01:15.Duterte also controversially said it is time to say goodbye to America.
:01:16. > :01:19.And he has gone further, declaring his separation from the US, the
:01:20. > :01:27.Philippines' long-standing ally. The US has demanded an explanation and I
:01:28. > :01:33.spoke to an Asia analyst for a consultancy firm who explained what
:01:34. > :01:37.Mr Duterte is trying to achieve. I think actually, while Duterte has
:01:38. > :01:41.really spearheaded this economic focus in relations, the rest of the
:01:42. > :01:44.public and also the broader political elite and the military as
:01:45. > :01:49.well, which maintains very close relations with the US, is not 100%
:01:50. > :01:56.sure that primarily economics should be tabled with China and there is
:01:57. > :02:00.definitely some concern amongst broader government and the public,
:02:01. > :02:03.that there needs to be a balance between ensuring that the
:02:04. > :02:08.Philippines can reap the economic rewards that other countries in the
:02:09. > :02:10.region have, but also that they are not selling out their own strategic
:02:11. > :02:15.interests and their sovereignty claims for what may in the end the
:02:16. > :02:21.soft loans and economic commitments that bring less tangible benefit.
:02:22. > :02:24.Let's take a look at those sovereignty claims, because the
:02:25. > :02:28.South China Sea dispute has been skirted around, they haven't
:02:29. > :02:31.expressly referred to in this trip which is really interesting.
:02:32. > :02:35.Obviously the Philippines warned the arbitration case at The Hague
:02:36. > :02:40.against China just three months ago. How are they going to handle that
:02:41. > :02:43.going forward? I think there is in many ways a huge amount of
:02:44. > :02:47.discomfort in the Philippines that effectively they were handed one of
:02:48. > :02:50.the strongest hands that they could have been through that tribunal
:02:51. > :02:55.ruling, and not only has Duterte potentially overplayed at what he
:02:56. > :03:00.has handed it to China. So they are effectively somewhat out of moves.
:03:01. > :03:05.China is going to take more tentative steps with anything in the
:03:06. > :03:09.South China Sea, I think it will pursue its own charm offensive in
:03:10. > :03:12.terms of the Philippines but for now I think Duterte has made it very
:03:13. > :03:16.clear that the South China Sea is something that is not going to be a
:03:17. > :03:21.key point of focus. Whether that works out well in the future is yet
:03:22. > :03:25.to be seen but for now I think there will be a lot of soft-pedalling for
:03:26. > :03:29.both sides. In other business news, safety regulators have confirmed the
:03:30. > :03:36.11th death in the US involving airbags. 60 deaths have been linked
:03:37. > :03:40.to the faulty airbags, which have prompted a worldwide recall of 100
:03:41. > :03:44.million in the letters, the biggest in the auto industry's history. In
:03:45. > :03:49.the latest incident, a 50-year-old woman died after she crashed her
:03:50. > :03:54.Honda Civic which was recalled eight years ago but never repaid. Bad
:03:55. > :03:59.weather and drought have dragged on Vietnam's economy, taking its toll
:04:00. > :04:03.on agriculture and imports as well as exports. The government is
:04:04. > :04:07.expecting Vietnam's rapid economic growth to slow this year and that is
:04:08. > :04:12.likely to put more pressure on the levels of public debt. Our reporter
:04:13. > :04:16.spoke to the managing director of one of Vietnam's major private
:04:17. > :04:20.equity firms. There is a misunderstanding here in terms of
:04:21. > :04:23.public debt. A lot of the public debt is domestic debt so when they
:04:24. > :04:28.talk about public debt they tend to feel that Vietnam owes other nations
:04:29. > :04:33.outside the country US dollar debt but that is not true. Most of the
:04:34. > :04:38.60% debt is domestic debt so it is not subject to the effect of
:04:39. > :04:44.volatility or risk, if you well. In 1997 a lot of the Asean countries
:04:45. > :04:49.got into trouble, and that has to do with the money they owe abroad in US
:04:50. > :04:53.dollar terms. Vietnam it is probably not the case at the moment, most of
:04:54. > :04:57.the debt is domestic government bond issuance, issued to support the
:04:58. > :05:01.fiscal deficit that Vietnam is in right now, that is the concern they
:05:02. > :05:06.have to address at the moment. Vietnam also has one of the world's
:05:07. > :05:09.fastest ageing population is so given that multinationals are
:05:10. > :05:13.attracted to Vietnam for its manufacturing base and large young
:05:14. > :05:18.population at the moment, what is going to do down the line? It is
:05:19. > :05:23.rapidly going that way, as you mentioned. But the population who
:05:24. > :05:27.are young, under the age of 30, are still quite large, over 50%. They
:05:28. > :05:31.are growing in wealth, they are creating wealth. The key is, when
:05:32. > :05:34.they create the wealth are they putting money aside so that when
:05:35. > :05:39.they retire they have sufficient funds to live off. And so yes, we
:05:40. > :05:43.agree that the population is ageing quickly, but it has a long ways to
:05:44. > :05:48.go and during that period of time will be great wealth being created
:05:49. > :06:00.in Vietnam. In other business news, US communications giant Verizon may
:06:01. > :06:04.renegotiate a deal to buy Yahoo. The original deal was worth $4.8 billion
:06:05. > :06:10.and was expected to drive advertising and media growth.
:06:11. > :06:13.Verizon's shares slipped 3% after it posted third-quarter results showing
:06:14. > :06:17.it had added just half the subscribers of analysts expected and
:06:18. > :06:21.shares in Microsoft have hit an all-time high after sales in its
:06:22. > :06:27.cloud business soared in the third quarter. The shift away from
:06:28. > :06:31.hardware towards cloud services seems to have paid off. It eclipsed
:06:32. > :06:36.market expectations. Nintendo shares have plunged 5% after it unveiled
:06:37. > :06:43.its next games machine, a hand-held portable device called Switch. One
:06:44. > :06:47.analyst said the new hardware could be Nintendo's last shot at selling
:06:48. > :06:51.home consoles. It is aimed at winning back consumers but it seems
:06:52. > :06:57.investors are disappointed. Our technology correspondent explains
:06:58. > :07:01.what is at stake. Nintendo has done well in its hand-held devices, in
:07:02. > :07:06.the top five bestselling consoles of all time, two of them are handhelds.
:07:07. > :07:13.It is trying to capture some of that market because its most recent home
:07:14. > :07:20.console, the kind you put under the television, the Wii U, did not do
:07:21. > :07:25.well. You can use this on the TV as well, so two in one. The Wii U,
:07:26. > :07:29.people thought it could do that and it was teased that it could do that
:07:30. > :07:32.you couldn't. It would only work in the home, you couldn't take the
:07:33. > :07:36.controller out and about with you. So it had a muddled message.
:07:37. > :07:41.Hopefully this will be a lot clearer. Billions of dollars are
:07:42. > :07:45.raised worldwide every through crowd funding, which is mostly for small
:07:46. > :07:49.business ventures. Over here in Asia where the concept is relatively new,
:07:50. > :07:53.some $1 billion has been raised in the last two years. In Taiwan a new
:07:54. > :07:58.company is helping fellow entrepreneurs raised millions for
:07:59. > :08:00.their ideas. We met a boss of the company to find out more about his
:08:01. > :08:40.start-up success. TRANSLATION: A set up this company
:08:41. > :08:43.because I saw a lot of people had good ideas and products, but they
:08:44. > :08:48.were not getting attention from funders. I did some research and I
:08:49. > :08:51.realised there was a demand for a company like ours to help them
:08:52. > :08:54.prepare for crowd funding. And it was especially needed in countries
:08:55. > :09:00.where crowd funding was just developing. Many Taiwanese people
:09:01. > :09:05.want to be entrepreneurs, because they strongly feel Taiwan should
:09:06. > :09:09.have its own brands. New entrepreneurs have a lot of
:09:10. > :09:14.difficulty finding investors. They have two first prove their product
:09:15. > :09:16.is good. First we talked to the budding entrepreneurs about whether
:09:17. > :09:25.their product or idea is worth pursuing. We suggest any needed
:09:26. > :09:28.changes. Then we help them run a publicity campaign, including
:09:29. > :09:44.filming video, taking photographs, or making advertisements.
:09:45. > :09:50.To be frank, many people who want to use crowd funding to raise money
:09:51. > :09:55.don't know what to do with their lives. They just want to give the
:09:56. > :10:00.idea a try. At out of 100 cases, only about 40 or fewer succeed. The
:10:01. > :10:04.ones who succeed naturally have collected a lot of experience in the
:10:05. > :10:10.field they are in. They are people who really want to solve problems
:10:11. > :10:18.they see around them. Let's take a look at the markets. The Nikkei
:10:19. > :10:21.seems to be extending on its success, up at six-month highs,
:10:22. > :10:28.extending on the six-month highs it closed at yesterday. It is up 0.2%
:10:29. > :10:31.at the moment and that is despite the fact Nintendo shares have
:10:32. > :10:35.fallen. Also flat markets elsewhere. That is it for this edition of Asia
:10:36. > :10:44.Business Report. Thank you for watching. You are with BBC News.
:10:45. > :10:49.Let's bring you up-to-date with our top stories. Washington wants an
:10:50. > :10:53.exploration after the Philippines' president said he was separating
:10:54. > :10:54.from the US in favour of China. And