19/01/2017 Asia Business Report


19/01/2017

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

:00:00.:00:13.

As US President-elect Donald Trump prepares to take the helm we find

:00:14.:00:19.

out what businesses in Asia are expecting. From the air to do some

:00:20.:00:28.

fun empire is granted a -- the edge of the Samsung empire is granted a

:00:29.:00:32.

reprieve for his role in the countries of scandal. Good morning

:00:33.:00:37.

and welcome to Asia Business Report live from Singapore. With just two

:00:38.:00:44.

days left until Donald Trump is sworn in as the 45th president of

:00:45.:00:48.

the United States and dad deeply divisive figure means that many are

:00:49.:00:54.

now looking at his cabinet picks resident bodies policies will be.

:00:55.:01:01.

Earlier a billionaire investor said their top priority is to re-

:01:02.:01:06.

negotiate another the trade deal with Canada and Mexico. The

:01:07.:01:09.

President-elect has made no secret in his public remarks, nor have I in

:01:10.:01:16.

earlier remarks during the campaign that NAFTA is logically the first

:01:17.:01:22.

thing for us to deal with. We are to solidify relationships in the best

:01:23.:01:26.

way we can in our own Territorian or four we go off to other

:01:27.:01:34.

jurisdictions. So I think that should be, and hopefully will be if

:01:35.:01:39.

I am confirmed, a very early topic in this administration. That for

:01:40.:01:52.

many business leaders that a presidency heralds a new era of

:01:53.:01:55.

uncertainty. And despite him being the author of the art of the deal

:01:56.:02:01.

many believe that the global mergers may be harder to come by. Earlier I

:02:02.:02:07.

spoke to a representative of Price Waterhouse Cooper. We have a few

:02:08.:02:12.

years of very good singing, liquidity in the market and

:02:13.:02:18.

political in a comic -- economic certainty. Now we are seeing some

:02:19.:02:23.

political change. Brexit and indeed as we go into a new president period

:02:24.:02:29.

there is a degree of uncertainty. Having said that, the Trump policy

:02:30.:02:33.

as stated so far appear to be friendly to deals. The regulation,

:02:34.:02:37.

tax reduction and stimulus and investment in energy and

:02:38.:02:40.

infrastructure and other areas. But in speaking to investors that we

:02:41.:02:45.

expect there to be hesitancy and pause. I think there is a great

:02:46.:02:52.

belief, and we have that as well, it in the US. It will be a pause rather

:02:53.:02:57.

than an impact and we will see a big return to buoyancy and investment

:02:58.:03:01.

levels. We have heard from some businesses voicing concerns but

:03:02.:03:05.

could this be an opportunity for some Asian countries? No doubt.

:03:06.:03:08.

Certainly by reference to investment in areas where we expect stimulus

:03:09.:03:14.

from the UK or the US economy. And then if you look to where the money

:03:15.:03:18.

may flow, this is where the investment in Asia will come

:03:19.:03:22.

through. In India, Japan, Singapore, over the last six weeks you feel a

:03:23.:03:28.

audience in terms of opportunity there. For different reasons- stable

:03:29.:03:32.

politics in India, an aggressive look at portfolios in Japan and an

:03:33.:03:37.

opportunity for private equity across the region to get more

:03:38.:03:42.

involved. We think we will see an uptake in investment across the

:03:43.:03:45.

Asian region, probably with one caution- outbound investment from

:03:46.:03:51.

China may slow but otherwise it is very positive about the Asian

:03:52.:03:56.

market. Staying with the United States Janet Yellin says that the US

:03:57.:04:00.

economy is healthy enough for the central bank to raise its benchmark

:04:01.:04:05.

interest rates a quote, a few times a year through 2019. During a speech

:04:06.:04:10.

on Wednesday she said the exact timing of interest rate hikes will

:04:11.:04:15.

depend on how the economy is doing. She said that policymakers are

:04:16.:04:19.

getting closer to their goals of full employment and stable

:04:20.:04:21.

inflation. The head of the International Monetary Fund said

:04:22.:04:28.

that despite the UK economy doing better than expected after last

:04:29.:04:31.

year's decision to leave the European Union it will still suffer

:04:32.:04:36.

from the split. Her comments come after the Prime Minister Theresa May

:04:37.:04:39.

laid out her negotiating terms with the EU. In her comments, the IMF

:04:40.:04:48.

said that any deal with the EU will not be as good as membership. When

:04:49.:04:53.

you belong to a club, whatever that club is beat sport or intellectual

:04:54.:04:57.

or whatever, the members of the club have a degree of affinity and terms

:04:58.:05:03.

under which they operate. Somebody outside the club, sport or

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intellectual or whatever, have different access. Meanwhile the

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Foreign Secretary Boris Jenson is warning the European Union not to

:05:13.:05:15.

punish Britain for its decision to leave the economic bloc. He made the

:05:16.:05:18.

controversial comment while on a trip to India. If Mr alarmed that

:05:19.:05:25.

wants to issue punishment beatings to anyone who chooses to escape in

:05:26.:05:30.

the manner of some World War Two movie is and I think, I do not think

:05:31.:05:35.

that is the way forward. It is not actually in the interest of our

:05:36.:05:43.

friends and our partners. A South Korean court has rejected an arrest

:05:44.:05:50.

warrant for Jay Y Lee. Prosecutors have accused him of bribery,

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embezzlement and perjury in connection to a scandal which led to

:05:53.:05:56.

the impeachment of the country's president. Samsun has denied any

:05:57.:06:02.

wrongdoing. Earlier I asked if people were surprised by the

:06:03.:06:06.

verdict. The public had been divided about what might happen. For most

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part I think there would be enormous relief from the part of Samsun. The

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last 24 hours have been one of the longest days for Jay Y Lee. At the

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city jail the head of South Korea's biggest company was asked to wait

:06:26.:06:29.

throughout the night until the court came to a decision about his arrest.

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Early in the morning the judge said there was a lack in justification to

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put Mr leave behind bars and ordered his release. Just before day lay he

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was seen walking out of jail was a slight smile. -- just before

:06:49.:06:53.

daybreak. Lacking justification. Could that be because of the

:06:54.:06:58.

possible impact on Samsun's reputation and performance which, of

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course, plays a huge part in the economy of South Korea? This may not

:07:03.:07:07.

be the end of problems for the chief of Samsun. The company has been

:07:08.:07:12.

accused of bribery and he may still need to face a trial if prosecutors

:07:13.:07:18.

decide to press charges. The allegation is that Samsun gave

:07:19.:07:21.

millions of dollars in return for the votes of the national pension

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fund in a big and contested restructuring of the company. In the

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meantime, Mr these days as a free man. So can prosecutors continue

:07:31.:07:36.

pursuing him? Samsung has continuously denied the bribery

:07:37.:07:41.

charges and the position is that contributions have been made but was

:07:42.:07:47.

not in order to receive favours. Bribery is not an easy crime to

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prove under Korean law. Neither is putting rich family members of

:07:56.:07:58.

conglomerates into jail for wrongdoing. Despite criminal charges

:07:59.:08:04.

and convictions, no family member of Samsun has ever served jail term. --

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Samsun. Shares opened higher than 2% in May continue to trade strongly.

:08:14.:08:18.

Shares in Netflix jumped over 8% in US training -- trading it to make

:08:19.:08:25.

meeting a new high. The media streaming service has been producing

:08:26.:08:31.

more original shows and focusing on expanding globally. That is held

:08:32.:08:34.

Netflix sign up a record 7 million new subscribers. The majority of

:08:35.:08:40.

them from outside the United States. Goldman Sachs still has the golden

:08:41.:08:46.

touch. The investment bank saw profits triple in the fourth

:08:47.:08:52.

quarter. Its trading activity got a major boost after Trump's election

:08:53.:09:00.

spurred a stock market rally. Manchester United has overtaken

:09:01.:09:04.

reality that to become the richest football team in Europe. The last

:09:05.:09:08.

time they held the title was over a decade ago. According to a

:09:09.:09:11.

consultancy in Manchester United raked in over $700 million last

:09:12.:09:19.

season. Now here is a story for all of you train fans. After over two

:09:20.:09:25.

weeks crossing two continents the first-ever for a train travelling

:09:26.:09:28.

direct from China to the UK has arrived in London. It is part of

:09:29.:09:33.

China's drive to develop trade and investment ties with Europe. London

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is the 15th European city to join what the Chinese government referred

:09:43.:09:43.

to as the new silk Route. Lets show you the pictures of the

:09:44.:10:24.

train pulling into the station just outside London. The train trip takes

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about half the time of a sea journey.

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You are watching BBC News. The headlines for you this our-at his

:10:37.:10:42.

final news conference President Obama said he will continue to speak

:10:43.:10:47.

out to defend what he called core values are after he leaves

:10:48.:10:48.

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