28/10/2016 Asia Business Report


28/10/2016

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They have been concerns that Nissan might abandon the UK, following the

:00:00.:00:00.

Brexit vote. That's get a more business news live from Rico Hizon

:00:00.:00:08.

in Singapore. Twitter slashes hundreds of jobs as

:00:09.:00:19.

it struggles with big loss was and very little growth. Shares in Google

:00:20.:00:27.

rising following a jump. Good morning. Welcome to Asia

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Business Report, live from Singapore with Mariko Oi. Some major cutbacks

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at Twitter. The company is closing its video sharing service Vice four

:00:45.:00:49.

years after it was launched. It is also slashing 9% of its workforce

:00:50.:00:52.

after its losses ballooned to $100 million, due to slowing growth. The

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results come on the heels of recent reports that at least three major

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suitors sales forced Google, Disney have walked away. The best partner

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for Twitter may actually be in Asia. The best partner I am thinking of

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right now has international ambitions but they could help,

:01:21.:01:25.

partnering with Twitter. And vice-versa, Twitter would help in

:01:26.:01:39.

terms of its revenue. All the major players seem to be walking away from

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Twitter so what is the best case scenario if no one wants to buy it?

:01:46.:01:51.

They can try to do private that it would mean that someone has deep

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pockets and asked to be able to do that otherwise they would need to

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find new ways to continue its growth and also find new revenue streams,

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perhaps from its data. What is the turnoff about Twitter? It is not

:02:07.:02:11.

making money but it is still very popular? Thanks to the presidential

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elections, it is. It has a new lease of life for a while at the picture

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doesn't look too rosy overall. If you look at the growth of users, it

:02:20.:02:24.

has plateaued. It slowed down from 8%, about 3% growth to about 1% in

:02:25.:02:31.

recent results. Even for revenue growth, it has slowed down from 20%

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to all the way down to 8%. They have beaten most estimates, it still

:02:39.:02:40.

slowing down, there are signs that. When it comes to search, Google's

:02:41.:02:49.

parent company alphabet which also owns YouTube beat market

:02:50.:02:53.

expectations with a 20% rise in growth. It is due to the increase in

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advertising. Some people are concerned that the world 's

:02:59.:03:01.

second-biggest company is earning cash on the -- futuristic projects.

:03:02.:03:10.

Investigators are pleased with the success that Google is having. With

:03:11.:03:17.

its mobile advertising so people clicking on ads on their phones or

:03:18.:03:21.

their tablets rather than on their computers like they used to be on

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the old days, four years ago, also. What is an important metric for

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Google is the paid for clicks, there are more of those. That is when

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someone clicks on the ad and a company pays for each of those

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stopped -- the advertising company pays. The amount per click has gone

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down but companies haven't been too worried because they are saying that

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the more clicks is most important. Very promising for Google and their

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investigators -- investors are happy. Alphabet has other bets, as

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the company calls themselves. How are they doing? Alphabet was created

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as Google's parent company as a way of separating Google, the core

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business, the things we all know such as e-mail and you Tube and

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search, from these other bets and that is more out land issue are in

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some AI, putting balloons into space to give the Internet to people,

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putting Internet Underground in some places the customers. Smart firm

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starts. Although things are taking out of the main Google products.

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Traditionally, they have cost a lot of money and haven't made a lot of

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money but these latest figures show the revenue from those other bets

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has gone up right marginally and the latest in the last three months with

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revenues of $197 million which is peanuts compared to what the main

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part of Google makes. That is pretty good, though. It is going in the

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right direction is virus investments are concerned was the Beau Maister

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be worried that it is costing money but that is the amount -- they may

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still be worried. But that amount is still going down. They will want

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Alphabet to keep a rein on some of the crazy ideas but they also

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realise that Alphabet's future relies on them so it is a crucial

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balance they are trained to strike. It is been a busy reporting

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calendar. Amazon Prime 's Mac latest quarterly profit came in lower than

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expected and shares fell maybe 7%. The world 's biggest online retailer

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has been dealing with higher shipping costs and heavy investment

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into its operations. Sales amounted to $32 billion for the three months

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to September. Shares in is ETO express, one of China's top five

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companies have posted an $1.4 billion of the chef sale. -- share

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sale. Chinese search engine Baidu has posted a loss. It is mainly due

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to government cracked down on healthcare advertising earlier this

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year which has taken a toll on the company.

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It has been one year since China decided to scrap its one child

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policy but what impact is that having on the economy? China still

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faces a rapidly ageing population and the slowing growth is impacting

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jobs in many sectors. It could be decades before there is any real

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impact. What we would expect to see is as

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fertility rates increase slightly, we don't expect there to be a sharp

:06:40.:06:45.

reversal. The shift in demographics that has a negative impact would be

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somewhat less than it would have been without the policy change. That

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China of course is still the most populous country in the world. Can

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it actually handle more babies? China's income levels hardly

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increased and what China is now facing is a decline in the

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population within the next decade or so. The population would start to

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fall. The population will also age quite rapidly before income levels

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are the same as EU or US levels. Providing healthcare, pensions. That

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will fall on a smaller population burden.

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Now to the US presidential elections and trade has been one of the big

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issues. New US estate exports more to Asia than California. Of the

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state exporters, the $70 billion across the Pacific last year. As a

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result, many exporters support the huge free trade deal called the

:07:48.:07:53.

transpacific partnership, known as the TPP. Given both presidential

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candidates are looking to kill the deal, what happens next? Timothy

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McDonald reports. These grapevines have kept the

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family going for generations. The Company hopes the transpacific

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partnership will help them squeeze a little more out of their business.

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Previous trade deals have helped as they expect the TPP will too, if it

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is ever ratified. An example would be NAFTA and the net Mexico in

:08:21.:08:28.

particular -- and Mexico. As the tariffs went down the following year

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of about 15%, the same thing is happening in Japan as they began to

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reduce their tariffs over the last couple of years. 20% increase over

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prior years. He really does make a difference to have a level playing

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field. Not everyone is so enthusiastic about trade agreement

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stopping that, many workers say previous ones such as NAFTA has

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simply shipped jobs across the border and they are afraid that the

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TPP might ship more jobs to Asia. At this San Diego Cathay, three

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Aerospace workers are having coffee with the UN representative. Lots of

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jobs have gone to Mexico, he said and he expects his own will soon had

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to Malaysia. We are still losing the jobs because of regulations, because

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of government deals with other countries, starting with NAFTA and

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now TPP is approaching. And even though both candidates are opposed

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to the deal, he suspects it will still pass in some form. Timothy

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McDonald, BBC News, California. Just days after posting its falling

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profits, Apple has unveiled new laptops in a bid to revitalise its

:09:41.:09:47.

laptop line. It has an interactive display a above the keyboard is with

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a fingerprint sensor which makes it easier for online transactions using

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the Apple payment system. The last update from Apple on its Mac

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computers took place more than a year ago. Let's show the markets

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before we go. The Nikkei has started trading and they have opened higher

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because of the week of the Japanese yen. -- weak Japanese yen. We see

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shares in exporters rising at the moment. Australia is practically

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flat. Overnight in the US, even though we had lots of earnings,

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there was little change after a choppy session. We are also

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monitoring the oil prices. That is it for this addition of Asia

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Business Report. Thank you for

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