25/10/2016

Download Subtitles

Transcript

:00:00. > :00:21.THEME PLAYS. Multiple strikes and the collapse of its biggest shipping

:00:22. > :00:27.firm, we look at the impact on South Korea's economy. And would you go to

:00:28. > :00:34.100 miles per hour without a driver? We asked the man behind the Aston

:00:35. > :00:38.Martin's latest supercar. Good morning, Asia. Hello, world. Thank

:00:39. > :00:45.you for investing your time in us. I'm Rico Hizon. It's a Tuesday. This

:00:46. > :00:51.is Asia Business Report. I am Rico Hizon. Asia's fourth biggest economy

:00:52. > :00:58.South Korea has unveiled its latest growth numbers. It expanded by 0.7%

:00:59. > :01:05.in the three months between July and September compared to the previous

:01:06. > :01:09.quarter, or two point 7% annualised. It has been hit by a triple whammy

:01:10. > :01:19.of bad events. The worst ever strikes in the country at Hanjin and

:01:20. > :01:28.Samsung's worst ever recall, the Galaxy Note 7. Will these effects

:01:29. > :01:34.growth in the future? I put the question to an economist. Korea's

:01:35. > :01:41.exports have been quiet week for a while now be on top of that, because

:01:42. > :01:46.of the reduced output in the sector, this will weigh down on there

:01:47. > :01:54.exports. -- quite weak. We have also seen private consumption changed.

:01:55. > :01:59.The expiry of the special consumption tax at the end of June

:02:00. > :02:03.will have weighed down on consumption of durable goods. As a

:02:04. > :02:12.result, auto sales in Korea have been weak. It will be a factor that

:02:13. > :02:15.will limit GP growth. What about the Samsung recall? Will this have an

:02:16. > :02:21.impact in the July- September quarter? Will we see it mostly felt

:02:22. > :02:26.in the October- December period? The timing of when that happened, quite

:02:27. > :02:30.late in the quarter, means that it is likely a full impact of this

:02:31. > :02:35.event will be felt in the fourth quarter of this year. However,

:02:36. > :02:39.because of Samsung is the largest corporate in Korea, an impact in its

:02:40. > :02:47.profits and suppliers is definitely going to impact manufacturing which

:02:48. > :02:50.is already suffering. Above 2.5% is a big disappointment competitor kind

:02:51. > :02:55.of growth Korea has experience in the past decade of 3.6%. Will more,

:02:56. > :03:02.briefly, can the Korean government do to boost growth? They could spend

:03:03. > :03:07.more on infrastructure or additional tax cuts. However, construction

:03:08. > :03:11.investment has already been quite resilient. There is a limitation in

:03:12. > :03:16.terms of how much more the government can do. Tax cuts are

:03:17. > :03:20.probably going to be very difficult because the opposition party has the

:03:21. > :03:27.majority in Parliament and they are actually opposing that kind of idea.

:03:28. > :03:36.In a surprise move, India's group has replaced its chairman, seen here

:03:37. > :03:41.right now on the right. And the man of the left led the company for more

:03:42. > :03:46.than two decades before he sat down at the age of 75. That was in 2012.

:03:47. > :03:50.He will once again be in charge of the business, the man of the left.

:03:51. > :03:54.They said this would only be for four months until the committee

:03:55. > :04:01.selects the new chairman. What is behind the big shakeup at one of

:04:02. > :04:06.India's August with Mrs? -- biggest businesses. No one is sure. We tried

:04:07. > :04:10.to talk to a lot of sources and there was nothing. No one is ready

:04:11. > :04:18.to speculate and say anything on this. It is important that Tata

:04:19. > :04:26.Conglomerate is one of the big companies, $80 billion. It employs

:04:27. > :04:40.about 40,000 people. If we talk about the conglomerate, it has

:04:41. > :04:48.almost got about 2000 regulars from abroad. All these companies like

:04:49. > :04:56.Jaguars and Tetley are involved. Now, have you ever heard of ZTO

:04:57. > :05:01.Express, a Chinese logistical company that could hold the largest

:05:02. > :05:08.offering this year. The biggest by a Chinese company after Alibaba's $25

:05:09. > :05:12.billion listing in 2014. A whopping 3 billion packages were carried by

:05:13. > :05:17.it last year. They are looking to raise as much as $1.5 billion this

:05:18. > :05:21.week. Why go to the US instead of mainland China, especially as they

:05:22. > :05:30.will get scrutinised more in the US? I put the question to the NASDAQ

:05:31. > :05:34.Listing Services Unit. He get a lot of Brittany, which is beneficial at

:05:35. > :05:40.the end of the day. What you end up having is a better structure and

:05:41. > :05:45.corporate governance. -- scrutiny. Also, in China, as has been well

:05:46. > :05:50.reported, it is not that easy to be listed. There is a queue up of a

:05:51. > :05:55.reported 800- 900 companies that are trying to get listed on the local

:05:56. > :06:00.exchanges. I think the most important thing for your viewers to

:06:01. > :06:04.understand is that we at NASDAQ are not here in China or any other

:06:05. > :06:08.market around the world trying to get every company to come and list

:06:09. > :06:14.on the NASDAQ. Most companies belonging in their local market.

:06:15. > :06:20.Right. That is where they will get the best valuation and visibility.

:06:21. > :06:24.But there are a small group in every country of global leaders, companies

:06:25. > :06:29.that are going to have aspirations to grow their business, especially

:06:30. > :06:34.in technology and healthcare, two of the strongest areas for NASDAQ. And

:06:35. > :06:42.they will want to list outside of their local markets. I am here on my

:06:43. > :06:45.regularly scheduled tours, I come here regularly, to talk to people

:06:46. > :06:49.about why they want to choose to list outside of local markets and

:06:50. > :06:53.why NASDAQ is the best long-term local partner for that. Japan is set

:06:54. > :07:03.to hold its biggest initial public offering of 2016 today. The railway

:07:04. > :07:06.company, JR Kyushu, wants $4 billion from investors. That could be

:07:07. > :07:11.derailed after two recent earthquakes and organic corruption

:07:12. > :07:19.and business in the Kyushu region being affected. Do gas guzzling

:07:20. > :07:24.sports cars have a future? One person thinks so if they have clean

:07:25. > :07:32.fuel and they can happily coexist. This man is behind Aston Martin's

:07:33. > :07:41.limited-edition AMRB001 Hybrid Car. A fabulous design. The Rolls-Royce

:07:42. > :07:45.as well. We asked him what he thought people will be driving in

:07:46. > :07:49.ten years' time. Lighter and more efficient cars. Cars that know what

:07:50. > :07:53.you feel like and what you want and get out of your car. You will feel

:07:54. > :07:59.better getting out of it than when you get in it. You see trends come

:08:00. > :08:04.on in car design. Of course, there is a lot of talk about autonomous

:08:05. > :08:09.cars, self driving vehicles, future cars, will these start to replace

:08:10. > :08:14.these gas guzzling huge sports cars that you are designing our? I think

:08:15. > :08:22.economy is inevitable in terms of what the customer really wants. --

:08:23. > :08:26.autonomy. If we look at transportation and I am stuck in a

:08:27. > :08:32.traffic jam, an autonomous car is brilliant. But the visceral feeling

:08:33. > :08:38.of driving, that luxury sensation, Aston Martin, for example, we see

:08:39. > :08:42.them maybe having the ability to be autonomous, but it is about the

:08:43. > :08:47.driving, the great driving experience. May be Aston Martin as

:08:48. > :08:52.the first autonomous drift switch, who knows? Before us, it is about

:08:53. > :08:57.driving cars. There will be customers that want to drive in the

:08:58. > :09:02.future as well. -- but for us stop light this car which you can see on

:09:03. > :09:09.the screen, a mouthful, tells about it. How optimistic are you for sales

:09:10. > :09:16.specifically in this region in Asia? It is a hybrid car. The first

:09:17. > :09:20.collaboration with Aston Martin in the first time they have produced

:09:21. > :09:27.this kind of engine in a car as well. It is 500 possible things that

:09:28. > :09:35.could happen at the minute. In this region, about 15% will come to

:09:36. > :09:41.Asia-Pacific. Or write. You are saying only 150 of these cars will

:09:42. > :09:48.be built. That is right. The only hit the market in 2019. By that

:09:49. > :09:51.point things could change with how the Asian market is growing. We know

:09:52. > :09:57.that important markets like China are already starting to slow. How

:09:58. > :10:03.can you be optimistic he will sell in this part of the world? With

:10:04. > :10:06.limited edition cars, they end up being cars that you want to have in

:10:07. > :10:12.your collection. Typically, they override the changes in the economy

:10:13. > :10:16.as well. People who are looking to invest in something in the future

:10:17. > :10:20.will see this as something important for their personal collection of

:10:21. > :10:24.cars. Let us have a quick look at the markets. All in positive

:10:25. > :10:31.territory thanks to gains in the US overnight and major corporate deals

:10:32. > :10:32.of the textiles in positive territory at all. Thank you very