:00:00. > :00:12.Now on BBC News all the latest business news live from Singapore.
:00:13. > :00:20.The pound is falling sharply in Asian trade ahead of the big Brexit
:00:21. > :00:31.speech by Theresa May. The billion dollar fine and admission of guilt -
:00:32. > :00:38.is this the end of the Takata nightmare? Hello and welcome to Asia
:00:39. > :00:45.Business Report. The British pound is under pressure, falling on
:00:46. > :00:50.speculation the UK is moving closer to exiting the single market of the
:00:51. > :01:01.EU. Trading just below a dollar 20. The first time it has fallen that
:01:02. > :01:07.level since October. I think it is a confluence of not just expectation
:01:08. > :01:13.about the speech, and it seems some of the key details have been leaked
:01:14. > :01:21.over the weekend, but it segues nicely to Philip Hammond's comments
:01:22. > :01:25.that if the UK needed to recalibrate its economy, it would. Taken
:01:26. > :01:32.together has meant traders in Asia have taken at the signal we are in
:01:33. > :01:38.for a hard Brexit and that is what Theresa May will signal. We know
:01:39. > :01:45.that the pound has really been the one asset subject to all kinds of
:01:46. > :01:54.volatility whenever there is talk of a hard Brexit - will there be any
:01:55. > :02:01.stability for the currency? I think there is a self curing element to
:02:02. > :02:09.the sterling weakness. Before Brexit, we even got up to $1.50. Now
:02:10. > :02:15.we are down around a dollar 20, a big list to the UK economy. Traders
:02:16. > :02:20.will be focusing on the October line. We could see some heavy
:02:21. > :02:25.selling but if that level can hold, people can recognise that the UK
:02:26. > :02:31.economy was in good shape over the last six months of 2016 relative to
:02:32. > :02:38.expectation and sterling weakness continues to give expert, British
:02:39. > :02:46.industry and services, a lift as we go forward. It is a self curing
:02:47. > :02:49.element that traders are still wary. Takata shares are slumping after
:02:50. > :02:57.announcing a deal with the US government which will pay $1 billion
:02:58. > :03:06.and plead guilty to criminal wrongdoing due to those bags. We saw
:03:07. > :03:19.the shares rising over 60% on Friday, they are now slumping by as
:03:20. > :03:23.much as 10%. -- 16% on Friday. It shows you the difference in
:03:24. > :03:30.sentiment in Tokyo as compared to the US will is not on Friday, the
:03:31. > :03:35.shares trade at up seeing %. A big drop in Tokyo. This is a reflection
:03:36. > :03:42.of the fact that people think the company is not out of the woods as
:03:43. > :03:49.far as its troubles are concerned. It is facing a billion-dollar fine-
:03:50. > :03:56.$25 million to the US government, 100 and $25 million compensation to
:03:57. > :04:04.the victims of the faulty airbags. And also a fine to the makers. It
:04:05. > :04:10.has to come within the next 30 days - $150 million. We do not know how
:04:11. > :04:16.bad its financial situation is that it must be presumed it is not good
:04:17. > :04:20.because it has a ready set in need is to find a new finance to help it
:04:21. > :04:29.through this crisis. What happens next to this company? Will they have
:04:30. > :04:33.to file for bankruptcy? They need to get new financing and they said
:04:34. > :04:42.after this deal with the US government, they are hoping to draw
:04:43. > :04:46.a line under this problem and to move on to find new financing for
:04:47. > :04:55.the company but to put the problems in perspective, 12.5 million bags
:04:56. > :05:00.have been replaced. Up to 40 million have to be replaced and 70 million
:05:01. > :05:08.worldwide full of that is a huge bill for the company. It seems to
:05:09. > :05:14.suggest there will be further problems to follow fault Takata. The
:05:15. > :05:20.company shares and down 4% at the moment. Prosecutors in South Korea
:05:21. > :05:27.have delayed the decision whether to arrest the air to Samsung until
:05:28. > :05:39.Monday. He has been investigated over a scandal linked with a Park
:05:40. > :05:49.Geun-hye. China's President, Xi Jinping will attend is a summit in
:05:50. > :05:56.Switzerland. We explain the significance of his attendance. He
:05:57. > :06:04.really will be the star of the show. It is a time when not many world
:06:05. > :06:09.leaders are coming. A weakening Chinese economy and a weakening
:06:10. > :06:15.Chinese currency. The President will be under great pains to tell the
:06:16. > :06:19.world that they should have confidence in China's economy and
:06:20. > :06:25.that they will play an important and responsible role on the world stage.
:06:26. > :06:32.This is how the Chinese currency has fared. There is a battle between
:06:33. > :06:39.market forces and what the Chinese central bank has been trying to do.
:06:40. > :06:43.The Chinese currency has really weekend against the US dollar
:06:44. > :06:52.because market forces are trying to push the currency lower. At the same
:06:53. > :06:58.time, the People's Bank is trying to strengthen the currency because a
:06:59. > :07:01.weak currency, though good for experts, is bad for the confidence
:07:02. > :07:06.of the economy and we have seen millions, if not billions of dollars
:07:07. > :07:13.poured out because of concerned citizens. One of the biggest themes
:07:14. > :07:19.will be growing inequality which may be growing even further. Oxfam
:07:20. > :07:27.claims a group of men they can fit into one golf buggy on the same
:07:28. > :07:33.wealth as half the world. The top eight billionaires have as much
:07:34. > :07:38.wealth as 3.6 billion people who make up the poorest half of the
:07:39. > :07:43.world. India's first international stock exchanges have started
:07:44. > :07:49.trading. It will allow foreign investors to trade on products
:07:50. > :07:56.listed in one is expanding bond markets. Mestalla bonds are hoped to
:07:57. > :08:05.be traded. First off, but are they and how will they help? There were
:08:06. > :08:14.some bonds and then from China. We had a club and then came along the
:08:15. > :08:23.Indian version - marsala, named after the word for spice in India.
:08:24. > :08:30.What are they? Bonds are a form of debt, essentially the investor
:08:31. > :08:34.serves as the bank. A company, a government or a city some money and
:08:35. > :08:41.they promised to pay you back in full with regular interest payments.
:08:42. > :08:45.The problem for Indian banks is that they could only raise money and we
:08:46. > :08:52.pay in foreign currencies like the dollar but that is a risky because
:08:53. > :08:59.currencies fluctuate. Entering Mestalla bonds - the investor takes
:09:00. > :09:16.on the currency risk by trading in rupees. Well overseas investors join
:09:17. > :09:20.the party? While India's national income is rising and the economy is
:09:21. > :09:25.expected to grow rapidly, Mestalla bonds are the high your returns for
:09:26. > :09:29.investors compare to the US and Europe where interest rates are
:09:30. > :09:34.still low and it works out well in there as well. It means money to
:09:35. > :09:42.spend on things India really needs, like roads. Infrastructure, they
:09:43. > :09:49.plan to spend more than $1.5 trillion. Long-term investment could
:09:50. > :09:54.be the potential depreciation of rupees which could hurt the returns.
:09:55. > :10:04.The Indian companies, too much reliance on debt is risky. Sometimes
:10:05. > :10:11.too much spice is not very good. Let's take a look at the markets. In
:10:12. > :10:15.Asia we are seeing declines stop women talking about the losses in
:10:16. > :10:21.the shares of Takata, the airbag manufacturer. Sentiment is also
:10:22. > :10:28.impacted by the fall in the British pound ahead of the crucial speech by
:10:29. > :10:29.the Prime Minister of the UK. Thank you for