11/01/2017 Asia Business Report


11/01/2017

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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Katie Rough was found seriously injured in a playing field

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in the Woodthorpe area on Monday - and died soon afterwards.

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President Obama says good buy. We discussed his economic legacy in

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Asia. Trump says hello. We look at possible conflict of interests. Good

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morning, Asia, hello, world. It is a Wednesday. Glad you could join us.

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As President Barack Obama prepares to deliver is farewell message in

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Chicago in less than an hour 's time, in Asia we are reflecting what

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his eight years in office did for the region. A signature free-trade

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deal, the Pacific partnership will be scrapped by Donald Trump. I spoke

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to senior economist. If you look at trade, for examples, trade between

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developing Asia and the US, it increased by a 30% by 2010 and 2015.

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Of course, part of this is explained by the economic recovery but it is a

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positive sign none the less. The official effort to deepen ties, is

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the free-trade agreement which will celebrate its fifth anniversary this

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year. Increase in trade between the US and Asia and a rise in investment

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in US business but there is trepidation about the incoming Trump

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administration and potentially his protectionist policies and bringing

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back these businesses from Asia back to the US. That is true. I think no

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matter who is in power in the US, trade between the US and Asia will

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remain important. Most Asian economies are export-oriented. The

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US is the number two destination after China. From the US point of

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view, Asia is that the region where half of the world 's population

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lives and it is a great performer so it will be attractive for business

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and investment in the coming years. Concerns and fears we could see a

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face-off between China and the US. What legacy did President Obama

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leave in terms of relations between the Chinese and the Americans? It is

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a good question. Deepening the working relationship between the US

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and emerging powers like China was a key element of the Obama

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Administration and strategy. President Obama has been

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highlighting that the US - China relationship is the most important

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bilateral relationship of our time and he has been welcoming the rise

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of China and I think that is where we will go from there. Donald Trump

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is scheduled to hold his first news conference on Wednesday since

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winning the residential election. Chief among the questions is that

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what he will do with his businesses while his commander in chief. The

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potential conflicts, start in his hometown of New York city. I am

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outside 40 Wall St, in front of the building that is managed by the

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Trump Organisation, effectively making Mr Trump of the landlord.

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Trouble is, several of the tenants are being investigated by government

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regulators and, if they are found guilty of any wrongdoing, they could

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stop operating, which means they will no longer be paying rent to Mr

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Trump but, as President, Mr Trump could push for more lenient

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sentences or make the charges go away, effectively ensuring he

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continues to make money. If we make way further uptown, we find

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ourselves at Deutsche bank, one of Mr Trump's biggest lenders. The

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German bank continued to work with him even as several of these

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businesses went bankrupt. Deutsche Bank is facing billions of dollars

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in fines from the US government stemming from the financial crisis.

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Regulators could rule with a softer touch given the bank 's history with

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President elect Donald come. One., I have shaded to examples of potential

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conflicts. Move over just a few blocks and you end up at Ground Zero

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for the Trump business. These conflict of interest and multiplied

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many times over. Massive global Holdings and international ties mean

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opportunities for corruption go far beyond New York City is. Foreign

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countries could question how their treatment of the President 's

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business interests will impact diplomatic relations. This is a

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truly unprecedented territory for an American president. Democrats are

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proposing legislation that will force Mr Trump and his family to

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sell any assets that could cause any conflict that it is unlikely to

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pass. German carmaker Volkswagen is set to make a deal with the US

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authorities over the diesel emission scandal. The settlement comes after

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the company admitted to fitting out 11 million cars with software that

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reduces emission under testing to pass controls are then switches off

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under real driving conditions. As part of the deal, Volkswagen will

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face Independent monitoring over the next three years. Australian

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blender, ANZ, has agreed to sell a subsidiary to a Chinese group for

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the 100 and $60 million as part of its efforts to streamline its

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business. -- 460 million. The financial institution is also

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considering the sale of its Australian wealth and life insurance

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business. Economy will gain speed after turning in its worst

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performance since the global financial crisis, that is according

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to the World Bank 's latest forecast. It is tipping growth on

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the back of stronger commodity prices. I asked how Asia's economies

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will fare in 2017? China is going to continue with its slowdown. 6.5%.

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Authorities have done a remarkable job taking this economy growing at

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double-digit rates to the rates we are seeing now. At the same time,

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rebalancing has been under way. We see it in servicing. They now

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account for a large share of output. We look at car balance being less

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than 3%. All in all, it indicates that despite the risks we see, there

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is stabilisation - housing market, credit market, you look at those and

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it is stabilising. All in all, we see the region, especially in the

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context of China, the orderly slowdown will continue. What about

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India - will the strong growth continue? They have done quite a

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number of things, undertaking measures to improve business

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environment and send a strong message. We expect they will grow

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and continued to be about 7% in 2017. Some of these reforms are

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going to bear fruit in the near future, including the services tax.

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Despite these better growth forecasts, there is also

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considerable uncertainty regarding the outlook because it has not been

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able to incorporate President-elect Donald Trump's policies. Indeed. The

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reason is we do not know what the policies are, what the scope of the

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policies are. There could be tax reduction on the corporate income

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and personal income side. If we simply focus on those tax cuts it

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will translate into high growth in the US as well as in the global

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economy. Having said that, there are many caveats that could change the

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outcome and could have a negative impact. An explanation of the growth

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forecast for Asia in 2017. If all we do, a look at the markets and the

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region, as you can see, all green arrows, recovering some ground from

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Tuesday. It was led by healthcare and consumer goods. Hong Kong just

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opened for trading. Over role, a positive mood this Wednesday trading

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session for Asia. As for Wall Street, energy stocks fell following

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a drop in crude oil prices. Thank you so much for investing your time

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with

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