17/01/2017 Asia Business Report


17/01/2017

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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Hello, I'm Kasia Madera with BBC World News.

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Our top story: The main suspect in the Istanbul nightclub attack

:00:08.:00:10.

at New Year has been captured following

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34-year-old Abdulkadir Masharipov, an Uzbek national, was arrested

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after a police raid at a housing complex in the city.

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He was reportedly found with his four year-old son.

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Beijing says it will "take the gloves off" and pursue "strong

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countermeasures" if Donald Trump continues to provoke it over Taiwan.

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It comes after the US President-elect challenged

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And this video is trending on bbc.com: It's time to say

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a temporary farewell to the iconic billboards at the centre

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The lights have been switched off for renovations and they'll stay off

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Northern Ireland is to hold new elections following the collapse

:00:51.:01:07.

Secretary of State James Brokenshire has set the date for March second.

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Now on BBC News, all the latest business news live from Singapore.

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China's president takes centre stage at the world economic forum. And

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Theresa May is suspected to signal a hard Brexit in a speech later today.

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Welcome to Asia Business Report. China's president is expected to

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urge for more inclusive globalisation as the World Economic

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Forum's annual meeting kicks off in Switzerland. Xi Jinping will be the

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first President to attend the summit from his country and this year's

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gathering in the Alpine resort of Davos focuses on how leaders should

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respond to growing populism and protectionism.

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Tanya Beckett has more. There is a chill wind in Davos this

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year and I am not just talking about extremely low temperatures and piles

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of snow. The political backdrop is also pretty unforgiving. Top names

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from the worlds of business and politics are meeting here to cut

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deals at a time when a backlash against globalisation and elitism is

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only gathering pace. The forum's founder says social inequality will

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not be reduced by raising barriers. I hope that all countries will

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favour "All systems -- open global systems, but I think we will have as

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a whole, as a world, as a whole, we will have a big setback if we go

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back to the old times of big walls around our nationstates. And

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stepping in to champion the pro- trade message this year is Chinese

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President Xi Jinping. Traditional protagonist America is keeping LO

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profile, allowing the world's second largest economy to take centre

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stage. A welcome prospect for young trade entrepreneur Laila Dong.

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President Xi Jinping's coming shows China is willing to take the world

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leadership role and also working closely with other countries in

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terms of security, globalisation and providing more job opportunities.

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And he has a very high profile audience for his message. Other top

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attendees include Colombian singer Shakira, Facebook's Sheryl Sandberg,

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Ali Babar's Jack Ma and Christine Lagard. But Francois Hollande and

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Angela Merkel are staying away -- Alibaba. But for those who feel they

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can afford to tear themselves away from domestic troubles, the World

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Economic Forum will be awash with ideas and debate as to whether ever

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freer trade is now a certainty. Tanya Beckett, BBC News, Davos.

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Well, it is a big day for speeches because later today the UK Prime

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Minister Theresa May is expected to spell out what kind of Brexit deal

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she once and says the UK will not retain partial membership of the EU

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when it leaves. US President-elect Donald Trump says his promise to

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negotiate an early trade deal between America and the UK could

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strengthen Mrs May's can. Our political editor reports on what we

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can expect based on the evidence so far.

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Brexit means Brexit. What is that? Brexit means Brexit. And in case you

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hadn't heard. Brexit means Brexit. I'd ignore the platitudes, the big

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decisions have been clear since June. -- but ignore. There is no

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mandate for a deal that involves accepting the free movement of

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people as it is hitherto. Unlimited EU immigration won't stay, nor the

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power of European judges. Judges, sitting not in Luxembourg, but in

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courts across the land. Without them in charge it means we will be out of

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the single market. It will talk -- people talk in terms as if we are

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leaving the EU and we want to keep parts of membership. We are leaving.

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We are coming out. She has even dressed up to make plain how doing

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business outside Europe will be more and more important. With an

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enthusiastic offer now from stateside of doing a deal at speed.

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It is very good news the United States of America wants to do a good

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free-trade deal with us and wants to do it very fast and it is great to

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hear that from the President-elect Donald Trump. Spreading good cheer

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for Brexit backers. We will have the European Court of Justice no longer

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overruling our laws and we will be out of the single market so we can

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control our borders and probably outside the customs union so we can

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negotiate our own trade deals with the rest of the world. This is the

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most crucial set of choices any Prime Minister has made four years.

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And although the fundamentals were clear before she moved in, their has

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been precious little detail in public. Theresa May's opponents fear

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she will disappoint because she is juggling her party as well as the

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public. Partly because she has had to overcompensate as a former

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Remainer to prefer soft to her own party, partly because she has no

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mandate, she hasn't been elected by anybody, so she is not in a strong

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position, but partly because she has chosen really only to listen to her

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50% of people who voted for Brexit and not be almost half of the

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remaining part of the voting public who voted for a different future.

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Theresa May will tell us and then the other European countries more

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about her decisions that will shape Britain for decades to come. Her

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political hope, she and the country are not on their way to isolation.

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Laura Kuenssberg looking to the key speech, and worries about the hard

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Brexit pushing the pound to the lowest since the flash crash in

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October last year and today in Asian trade it is back above the 120

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level. In other news: the owner of Oakleigh

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and Rayban has signed a $49 billion deal to create the biggest company

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in eyewear -- Oakley. They are combining in a merger that is one of

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the largest ever in Europe, coming after four years of talks.

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Rolls-Royce is paying more than $800 million to settle bribery probe is

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in the UK, US and Brazilian authorities, the group is accused of

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paying to win contracts in Indonesia, China, Brazil and other

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markets, and they have announced that the four-year profits will be

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better than expected despite weakness in the marine business.

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Now, a South Korean court will decide on Wednesday whether the head

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of Samsung should be arrested on bribery charges in the latest twist

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in a corruption scandal that has engulfed the president of South

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Korea. The family run conglomerates known as trebles were typically

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considered Untouchables but is it now changing? A question I asked. It

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is a big shock and impact to the Korean economy and it may be

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shocking, especially Samsung is known for the global brand,

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essentially a very world-class company, so, you know, in the past,

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many chaebol chairman, like Hyundai, or SK Group, it was shocking with

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Samsung. It is not the first time we have seen chaebols in broad in this

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kind of scandal but we know, as you say, they are incredibly

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influential, these chaebols, just how much of the South Korean economy

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do they control? Well, it depends on how you measure that, but if you

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just compare it the sales -- compare the sales for Samsung compare to

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GDP, it is 70%, so you can see how important the chaebols are to the

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Korean economy, Hyundai control shipbuilding and the automotive

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businesses, and SK control mobile phone and also the chemical

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businesses. Incredibly influential, as you say, but in light of this

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scandal do you think these chaebols will now be forced to change how

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they do their business? I think so, because it will be a tremendous

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impact to them in terms of improving the corporate governance practices.

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The major weaknesses of chaebols is the success in issue, so in Korea,

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you know, the chaebols are an independent company that is

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controlled partly by the family shareholding, but the family

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shareholding is fairly little compare to the shareholding, like

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maintaining the control, but in Korea there is 50% Inheritence Tax,

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so if you have to pay 50% tax, and a chaebol family cannot maintain

:10:55.:10:57.

control for the next generation, so it is why they are cutting corners

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and pushing to the limit, so after the scandal I think chaebols

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families should be careful and will be more careful. All right. In how

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to work with minority shareholders not at the expense of the business.

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A quick look at the markets, because they are almost lower, with the

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Nikkei making losses, and exporters have been sold off with investors

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ploughing into the Japanese yen as a safe haven after the pound was sold

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off so much on Monday, and of course there is a lot of caution ahead of

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the key speech from the UK Prime Minister Theresa May later today.

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That is it for this edition of Asia Business Report. Thanks for

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watching.

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