11/01/2017 Asia Business Report


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


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


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


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


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


As President Barack Obama prepares to deliver is farewell message in


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


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


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


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


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


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


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


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


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


in US business but there is trepidation about the incoming Trump


administration and potentially his protectionist policies and bringing


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


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


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


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


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


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


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


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


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


a good question. Deepening the working relationship between the US


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


Administration and strategy. President Obama has been


highlighting that the US - China relationship is the most important


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


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


is scheduled to hold his first news conference on Wednesday since


winning the residential election. Chief among the questions is that


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


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


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


Trump Organisation, effectively making Mr Trump of the landlord.


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


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


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


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


sentences or make the charges go away, effectively ensuring he


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


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


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


businesses went bankrupt. Deutsche Bank is facing billions of dollars


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


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


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


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


for the Trump business. These conflict of interest and multiplied


many times over. Massive global Holdings and international ties mean


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


countries could question how their treatment of the President 's


business interests will impact diplomatic relations. This is a


truly unprecedented territory for an American president. Democrats are


proposing legislation that will force Mr Trump and his family to


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


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


authorities over the diesel emission scandal. The settlement comes after


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


reduces emission under testing to pass controls are then switches off


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


face Independent monitoring over the next three years. Australian


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


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


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


considering the sale of its Australian wealth and life insurance


business. Economy will gain speed after turning in its worst


performance since the global financial crisis, that is according


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


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


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


Authorities have done a remarkable job taking this economy growing at


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


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


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


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


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


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


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


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


number of things, undertaking measures to improve business


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


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


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


Despite these better growth forecasts, there is also


considerable uncertainty regarding the outlook because it has not been


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


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


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


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


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


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


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


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


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


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


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


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


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