25/10/2016 Asia Business Report

THEME PLAYS. Multiple strikes and the collapse of its biggest shipping

firm, we look at the impact on South Korea's economy. And would you go to

100 miles per hour without a driver? We asked the man behind the Aston

Martin's latest supercar. Good morning, Asia. Hello, world. Thank

you for investing your time in us. I'm Rico Hizon. It's a Tuesday. This

is Asia Business Report. I am Rico Hizon. Asia's fourth biggest economy

South Korea has unveiled its latest growth numbers. It expanded by 0.7%

in the three months between July and September compared to the previous

quarter, or two point 7% annualised. It has been hit by a triple whammy

of bad events. The worst ever strikes in the country at Hanjin and

Samsung's worst ever recall, the Galaxy Note 7. Will these effects

growth in the future? I put the question to an economist. Korea's

exports have been quiet week for a while now be on top of that, because

of the reduced output in the sector, this will weigh down on there

exports. -- quite weak. We have also seen private consumption changed.

The expiry of the special consumption tax at the end of June

will have weighed down on consumption of durable goods. As a

result, auto sales in Korea have been weak. It will be a factor that

will limit GP growth. What about the Samsung recall? Will this have an

impact in the July- September quarter? Will we see it mostly felt

in the October- December period? The timing of when that happened, quite

late in the quarter, means that it is likely a full impact of this

event will be felt in the fourth quarter of this year. However,

because of Samsung is the largest corporate in Korea, an impact in its

profits and suppliers is definitely going to impact manufacturing which

is already suffering. Above 2.5% is a big disappointment competitor kind

of growth Korea has experience in the past decade of 3.6%. Will more,

briefly, can the Korean government do to boost growth? They could spend

more on infrastructure or additional tax cuts. However, construction

investment has already been quite resilient. There is a limitation in

terms of how much more the government can do. Tax cuts are

probably going to be very difficult because the opposition party has the

majority in Parliament and they are actually opposing that kind of idea.

In a surprise move, India's group has replaced its chairman, seen here

right now on the right. And the man of the left led the company for more

than two decades before he sat down at the age of 75. That was in 2012.

He will once again be in charge of the business, the man of the left.

They said this would only be for four months until the committee

selects the new chairman. What is behind the big shakeup at one of

India's August with Mrs? -- biggest businesses. No one is sure. We tried

to talk to a lot of sources and there was nothing. No one is ready

to speculate and say anything on this. It is important that Tata

Conglomerate is one of the big companies, $80 billion. It employs

about 40,000 people. If we talk about the conglomerate, it has

almost got about 2000 regulars from abroad. All these companies like

Jaguars and Tetley are involved. Now, have you ever heard of ZTO

Express, a Chinese logistical company that could hold the largest

offering this year. The biggest by a Chinese company after Alibaba's $25

billion listing in 2014. A whopping 3 billion packages were carried by

it last year. They are looking to raise as much as $1.5 billion this

week. Why go to the US instead of mainland China, especially as they

will get scrutinised more in the US? I put the question to the NASDAQ

Listing Services Unit. He get a lot of Brittany, which is beneficial at

the end of the day. What you end up having is a better structure and

corporate governance. -- scrutiny. Also, in China, as has been well

reported, it is not that easy to be listed. There is a queue up of a

reported 800- 900 companies that are trying to get listed on the local

exchanges. I think the most important thing for your viewers to

understand is that we at NASDAQ are not here in China or any other

market around the world trying to get every company to come and list

on the NASDAQ. Most companies belonging in their local market.

Right. That is where they will get the best valuation and visibility.

But there are a small group in every country of global leaders, companies

that are going to have aspirations to grow their business, especially

in technology and healthcare, two of the strongest areas for NASDAQ. And

they will want to list outside of their local markets. I am here on my

regularly scheduled tours, I come here regularly, to talk to people

about why they want to choose to list outside of local markets and

why NASDAQ is the best long-term local partner for that. Japan is set

to hold its biggest initial public offering of 2016 today. The railway

company, JR Kyushu, wants $4 billion from investors. That could be

derailed after two recent earthquakes and organic corruption

and business in the Kyushu region being affected. Do gas guzzling

sports cars have a future? One person thinks so if they have clean

fuel and they can happily coexist. This man is behind Aston Martin's

limited-edition AMRB001 Hybrid Car. A fabulous design. The Rolls-Royce

as well. We asked him what he thought people will be driving in

ten years' time. Lighter and more efficient cars. Cars that know what

you feel like and what you want and get out of your car. You will feel

better getting out of it than when you get in it. You see trends come

on in car design. Of course, there is a lot of talk about autonomous

cars, self driving vehicles, future cars, will these start to replace

these gas guzzling huge sports cars that you are designing our? I think

economy is inevitable in terms of what the customer really wants. --

autonomy. If we look at transportation and I am stuck in a

traffic jam, an autonomous car is brilliant. But the visceral feeling

of driving, that luxury sensation, Aston Martin, for example, we see

them maybe having the ability to be autonomous, but it is about the

driving, the great driving experience. May be Aston Martin as

the first autonomous drift switch, who knows? Before us, it is about

driving cars. There will be customers that want to drive in the

future as well. -- but for us stop light this car which you can see on

the screen, a mouthful, tells about it. How optimistic are you for sales

specifically in this region in Asia? It is a hybrid car. The first

collaboration with Aston Martin in the first time they have produced

this kind of engine in a car as well. It is 500 possible things that

could happen at the minute. In this region, about 15% will come to

Asia-Pacific. Or write. You are saying only 150 of these cars will

be built. That is right. The only hit the market in 2019. By that

point things could change with how the Asian market is growing. We know

that important markets like China are already starting to slow. How

can you be optimistic he will sell in this part of the world? With

limited edition cars, they end up being cars that you want to have in

your collection. Typically, they override the changes in the economy

as well. People who are looking to invest in something in the future

will see this as something important for their personal collection of

cars. Let us have a quick look at the markets. All in positive

territory thanks to gains in the US overnight and major corporate deals

of the textiles in positive territory at all. Thank you very