:00:00. > :00:00.has said Britain must have the power to strike back
:00:00. > :00:07.in kind against cyber attacks from abroad which aim
:00:08. > :00:10.to target infrastructure such as power grids and air
:00:11. > :00:22.Signing deals at a China air show. Confidence is skyhigh as playmakers
:00:23. > :00:32.forecast massive expansion. And from boom to bust. Why the
:00:33. > :00:39.economy is slowing. Good morning, Asia. Glad you could
:00:40. > :00:46.join us for this Wednesday edition of Asia Business Report. Starting
:00:47. > :00:50.with China's aviation industry and planes, pilots are going to be in
:00:51. > :00:53.high demand in the mainland. The country set to become the biggest
:00:54. > :00:57.aviation market in the next decade. In the last three years ten new
:00:58. > :01:04.carriers have begun flying. They have bought at least 100 new jets,
:01:05. > :01:09.made by foreign companies. But China has its own manufacturers as well,
:01:10. > :01:17.including a commercial plane maker which forecasts China will need
:01:18. > :01:23.700,000 jets over the next 20 years. Earlier I asked why it isn't in this
:01:24. > :01:31.airshow. It looks like it is trying to get their C119 aircraft up in the
:01:32. > :01:36.air. It was meant to make its first flight at the end of the year. We
:01:37. > :01:42.are hearing it will be pushed to next year. So at the stage looks
:01:43. > :01:46.like they are trying to keep a low profile and get that aircraft right
:01:47. > :01:50.and get flying. That will be a big moment when it does but from what I
:01:51. > :01:54.hear it isn't ready yet. Still a lot of missing parts before Comac
:01:55. > :01:59.showcase is there a centrepiece aeroplane. But, taking a look at the
:02:00. > :02:04.Chinese economy, it is indeed slowing down. But we're seeing so
:02:05. > :02:11.many new players in the Chinese aviation market. Why isn't this
:02:12. > :02:15.being reflected now? That's quite correct. The Chinese economy is
:02:16. > :02:21.slowing, but air transport doesn't seem to have slowed by the same
:02:22. > :02:26.degree and what we are talking about has been quite small. This market
:02:27. > :02:32.has been growing just under 10% year-on-year for a number of years
:02:33. > :02:36.and that is slowing to a round the-7%, was ugly 5%, Mark of the
:02:37. > :02:43.next few years. But that's still quite a lot of people travelling. --
:02:44. > :02:47.possibly 5%. That's why there are start-ups and why they continue to
:02:48. > :02:51.need more planes. More than a dozen players now in the mainland aviation
:02:52. > :02:56.industry. But eventually there could be a price war. Could this lead to a
:02:57. > :03:02.consolidation or the closing down of some of these players going forward?
:03:03. > :03:05.In the short term there is not too much pressure on these new players
:03:06. > :03:10.going forward. There is still quite a lot of demand and it seems that as
:03:11. > :03:14.soon as capacity comes into the Chinese market there's enough demand
:03:15. > :03:18.to keep it going. Along the medium term we will see some consolidation
:03:19. > :03:23.of players. The Chinese government of course that a lot of competition
:03:24. > :03:27.between the big carriers. But if that policy changes I think we will
:03:28. > :03:33.see a bit more consolidation around the big three state owned carriers,
:03:34. > :03:44.as well as the likes of Heinemann airlines which has a number of
:03:45. > :03:50.carriers. -- Hainan. South Korea's President Park Geun-hye has named
:03:51. > :04:02.the U finance minister. The scandal is threatening to unseat her and
:04:03. > :04:10.cost her chief of staff to resign. The Prime Minister and chairman will
:04:11. > :04:13.be taking over the top finance role. Moving on to another rapidly
:04:14. > :04:18.expanding Chinese sector, the world's largest e-commerce firm
:04:19. > :04:23.Alibaba will later today likely post another quarter of solid growth for
:04:24. > :04:34.the three months, ending September. Its financial arm online has
:04:35. > :04:40.announced plans to expand beyond China, with a Thai payment company.
:04:41. > :04:46.The opportunity we have is that there are 450 million consumers in
:04:47. > :04:50.China who use our services. Many of them travel abroad every year.
:04:51. > :04:56.Indeed, over 120 million travellers go outside the Chinese mainland
:04:57. > :05:00.every year. So we want to serve those customers who are growing
:05:01. > :05:04.abroad. We also see an opportunity to extend our reach to customers in
:05:05. > :05:13.different markets around the world. What is the relationship between
:05:14. > :05:17.Alibaba and Ant? Ant started as the payment system on the Alibaba
:05:18. > :05:22.platforms. Our company was built through that partnership and indeed
:05:23. > :05:26.it's a close relationship today, where we provide payments and other
:05:27. > :05:30.financial services connected with the Alibaba e-commerce platforms.
:05:31. > :05:35.But over the years we have expanded much more broadly beyond that. Too
:05:36. > :05:38.many different merchants both online and off-line and we've expanded the
:05:39. > :05:43.range of services we offer much beyond payment. Fairly or unfairly
:05:44. > :05:46.there's quite a bit of suspicion sometimes of Chinese companies,
:05:47. > :05:51.especially when lots of data is being generated. There is a worry
:05:52. > :05:55.about who will get hold of that later. Will the Chinese government
:05:56. > :05:59.be able to get hold of it? Our use of data is really driven by what
:06:00. > :06:03.they need to accomplish what they are looking to do in buying things
:06:04. > :06:07.and looking for different services and completion what they want in
:06:08. > :06:12.day-to-day transactions. The card that data carefully for them and
:06:13. > :06:17.protect the privacy of that. -- we guide. That's central to the way our
:06:18. > :06:28.businesses are set up and our business capabilities. That's part
:06:29. > :06:32.of our core strategy. Square, the mobile payment company, saw its
:06:33. > :06:41.losses narrowing in the third quarter. The co-founder and Twitter
:06:42. > :06:49.chief says it turns any mobile phone into a payment terminal.
:06:50. > :06:54.Solar City will add more than $500,000 to its cash balance sheet.
:06:55. > :06:57.Tesla revealed in September that four lawsuits have been filed,
:06:58. > :07:01.looking to block this move. Shareholders of both companies are
:07:02. > :07:05.looking to vote on the alliance later this month. Japan's biggest
:07:06. > :07:12.pharmaceutical company is set to be in talks to buy the US drug company.
:07:13. > :07:19.According to reports the deal could be worth about $10 billion. The US
:07:20. > :07:22.company is owned by the parent company that is looking to light in
:07:23. > :07:27.its debt burden. Resource rich Mongolia used to be
:07:28. > :07:33.the world's fastest growing economy. Five years ago the nation boasted
:07:34. > :07:38.growth of 17.5%. But this year growth of less than 1% is forecast.
:07:39. > :07:46.As a result, its finances have become so bad the country to seek a
:07:47. > :07:55.bailout programme from the IMF. This report from the capital.
:07:56. > :08:01.This man moved here ten years ago, hoping for a better life. He is an
:08:02. > :08:09.electrician by trade but with jobs scarce he has been paid as a car
:08:10. > :08:12.park attempted. -- attendant. He lives without running water or
:08:13. > :08:17.central heating. As the freezing winter approaches, he says coal
:08:18. > :08:21.prices will go up and after the currency plummeted earlier this year
:08:22. > :08:27.food items already cost more as they are mainly imported. TRANSLATION: We
:08:28. > :08:31.can feel the crisis. Groceries and day-to-day basics are getting more
:08:32. > :08:36.expensive, but somehow our salaries just stay the same. He arrived with
:08:37. > :08:41.his wife and three daughters during the mining boom led by neighbouring
:08:42. > :08:48.China, where most of Mongolia's commodities go, but it's a different
:08:49. > :08:51.picture now. This man who runs a construction company lost $260,000
:08:52. > :08:57.this year after the currency fell by 12%. Now many of his clients aren't
:08:58. > :09:02.paying up. TRANSLATION: This is the paper with a list of clients who
:09:03. > :09:06.only money. $3 million in total. Plus the workers get loans from
:09:07. > :09:10.foreign Westerners with foreign currency, which means they can't pay
:09:11. > :09:18.us back. In just five years Mongolia has gone from doom to bust. -- boom.
:09:19. > :09:22.An unpredictable approach to investment policy, along with
:09:23. > :09:26.disputes with key foreign investors, has seen money coming into the
:09:27. > :09:29.country all but dry up. Meanwhile, an economic slowdown in China has
:09:30. > :09:34.caused a drop in demand for Mongolia's commodities. The recently
:09:35. > :09:39.elected government is now seeking assistance from the IMF. We have to
:09:40. > :09:44.take actions to cut down expenses where necessary. We need to move to
:09:45. > :09:50.bigger projects to increase the budgetary revenue and to ensure that
:09:51. > :09:55.politically we have the will to support this. With her party now
:09:56. > :09:59.holding the vast majority of seats in Parliament, the minister says
:10:00. > :10:04.long stalled projects, including a railway from a mine in the Gobi
:10:05. > :10:08.desert to China, should push ahead. At 4D is projects to get back on
:10:09. > :10:12.track the government needs funding. It needs to bring back all the
:10:13. > :10:17.investors and may be called the new ones to help fix the economy.
:10:18. > :10:23.Perhaps then this man can achieve the life you wanted for himself and
:10:24. > :10:27.his family. -- life he wanted. And with that we
:10:28. > :10:30.end this edition of Asia Business Report. Thanks for investing your
:10:31. > :10:32.time with us and goodbye for