09/01/2017 Asia Business Report

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Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.

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You're watching BBC World News. Four Israeli soldiers have been killed in


a track attack in Jerusalem. The driver of the vehicle were shot


dead. The Prime Minister Benjamin Netanyahu believes the attacker was


inspired by it Islamic State. US Defence Secretary Ash Carter called


the North Korean missile testing a serious threat to the US and that


America would be prepared to shoot down a missile. This video is


trending online. It is footage caught off a huge school of wire


which fell off a truck in the US state of Pennsylvania and proceeded


to roll down the wrong way at cross a motorway, causing havoc and


forcing cars to swerve out of its way -- spool of wire. Luckily no


cars were hit and no one was injured. You are up-to-date. Stay


with us here on BBC World News. And the top story for you in the UK, a


24-hour strike by London Underground workers is under way, it is by


drivers and station staff about job losses and ticket office closures.


More from me but first hearing is Sharanjit. Chrysler Fiat pours $1


billion into US factories and moved some production from Mexico. And a


decade since this little gadget changed the way we communicate, what


is in store for the next ten years of the smartphone? Hello, welcome to


Asia Business Report. Another car maker makes a huge investment in the


United States. Fiat Chrysler is investing $1 billion in America,


including modifying a plant in Michigan which will make pickup


trucks manufactured in Mexico. The move comes as the President-elect


Donald Trump pressures the auto industry to hire workers and produce


vehicles north of the border. Last week Ford announced it was


cancelling plans for a factory in Mexico and will build the cars in


the US. All of this comes as one of the world's biggest auto shows'


where car giant showcase their latest products. Earlier I spoke


with a spokesperson for the auto industry and his reaction to the


Fiat Chrysler and Mt. They have followed suit with what Ford has


done and some of the automakers we have heard from, so there seems to


be a new awareness that if you are planning and had big ideas to roll


out Mexico -based production, maybe you are not going to do that now,


you will keep it in the US. It is startling given he is not even the


president yet. Is this becoming a long-term change or trained in car


manufacturing? I think Donald Trump will come into office and he will


look for smart ways to keep jobs in America. At the same time you have


to be careful for unintended consequences, always the bugaboo of


government agencies. If you keep the jobs here and force up prices of


cars and make them uncompetitive with cars coming from elsewhere,


companies building the cars in a different way, you might end up


hurting companies because they simply cannot make cars affordable


for Americans, then you will have companies laying people off not


because cars are built elsewhere but they cannot sell enough to employ


people. Economics is interesting. Usually there is cause and effect.


And you can't do one thing and assume an upside. There is almost


always repercussion somewhere else. This show has taken on political


overtones as the President-elect Donald Trump targets the car


industry, so is it something a lot of people are talking about? Yes,


there is a buzz about the impact on drum is having on the car industry


and how much he has had before he has been officially sworn as


president and there is definitely apprehension across the country as


to how big an impact he will have on plans, whether it is building plants


in Mexico or redistributing where the cars are built and how they are


shipped, there is a thinker little uncertainty that was unfair to


months ago -- that wasn't there two months ago because they don't know


what the man in charge is going to do.


The shares in Australian miners are down this morning on forecasts of


lower iron ore prices. The government expects average iron ore


prices for the next two years to drop nearly half. Current spot


prices of the commodity used in making steel are at about US $80 per


ton and iron ore is Australia's biggest commodity export.


Over in Mexico, nearly 10,000 people are taking to the streets in the


western area to protest the country's gasoline price hike. They


are enraged by a 20% jump in fuel prices which were announced as part


of the government deregulation of the energy sector.


Jakarta is known for having some of the world's worst traffic and to


reduce the number of motorbikes the government has made it three times


more expensive to register a vehicle. It also wants to raise


money for its infrastructure programme.


Jamal al-Jamal is the first in his family to own a motorbike.


TRANSLATION: I borrowed money for the downpayment from a friend and


then I paid it off slowly and finally it was mine. I never dared


to dream I would own a motorbike. It is like a dream come true.


Motorbikes can be bought here with a deposit of as little as $50 US and


then paid off in monthly instalments. Nearly half a million


motorbikes are sold in Indonesia each year. In Jakarta, with very few


public transport options, people turn to motorbikes to try and get


around reasonably quickly. They can weave through the traffic but the


government is hoping that by making it harder and more expensive for


people to own a bike they will think twice about buying a bike and having


to add their bike to this already chaotic and traffic jams Streets.


But for this motorbike driver, owning a bike isn't a choice and he


is worried about how he is going to pay a 300% increase in this year's


registration fees. TRANSLATION: It is too much all at once. I don't


earn very much. Why didn't they make it a slow increase? It is going to


be very hard. I am struggling at the moment to earn enough to feed my


family, let alone pay registration. The government says it is going to


use the money that it gets from the increase to pay for its


infrastructure projects that include the building of a mass rapid


transport network, an underground subway train network that this city


has been talking about for decades but now the government says is


finally building it and is this the long-term answer to the traffic was?


-- woes? Ten years ago today the first ever iPhone was announced by


this man, the then chief executive of Apple, the late Steve Jobs, now


of course we know it took the world by storm and lots of other


manufacturers such as South Korea and Samsung have joined the game as


well, but smart phones have changed Alli lives dramatically, so just how


obsessed are we? Let's have a look. -- changed our lives dramatically.


No, I don't think it is possible right now to live without a


smartphone. I mean, it is possible, but it just becomes very difficult.


Right now everything is easy. I can do things without having to go


outside, like booking my movie tickets, or even interacting with my


friends, I don't have to make calls and everything because I cant just


send text messages. -- because I can. When I am not working usually I


am always on my phone. 22 hours a day. Almost every minute. Don't tell


my boss. When you see people walking around, they are on their phone.


They are reading their phone all the time. I don't think it is healthy. I


am sure we can all identify with that.


Well, of course, those figures are from EMarketeer, and I spoke with a


spokesperson from the firm and asked where the exports for smart phone


penetration come from. We are looking at Indonesia and the


Philippines as countries that will grow significantly. The most


significantly in 2017 in terms of smartphone adoption. We saw that


Taiwan and Singapore, nearly 90% of the population have smart phones.


Will it ever get to 100%, and why not? Well, I would say that it would


not get to 100%, because if you look at the population, and we estimate


smart usage among individuals of all, the youngest demographic is


where we wouldn't expect smartphone adoption to be happening, so that is


why we wouldn't reach the 100% anytime soon. When you look at


percentage mobile phone users, we will get close to that 100%, and


Taiwan will be one country that will come the closest, but we don't


expect 100% anytime before 2020. Aside from Taiwan and Singapore we


know Asia has a lot of developing markets. Will the technological


infrastructure ever get good enough to support more smartphones in this


region? Yes, I think it will, and if you look at the country like Vietnam


we see 3G is widely available and also 4G LTE availability is


improving, and we expect it to improve over the next few years, so


when that infrastructure is in place it really encourages smartphone


adoption, as well as wireless becoming more affordable. When do


you think 5G will be rolled out in these markets? I would say that is a


longer term prospects. Just because we have to get the infrastructure in


place before uptake really will occur.


Let's have a quick look at the market before we go because Japan's


market is closed. Australia continues to gain despite


the fall in iron ore prices being projected, leading to a fall in


miners. It is gaining as it follows the US. That is it for this edition


of Asia Business Report. Thank you for watching.


Four Israeli soldiers have been killed in a truck attack


The US defence secretary calls North Korea's missile programme


a threat and warns America is prepared to respond.