23/01/2017 Asia Business Report


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23/01/2017

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.:00:11.

The new US President get to work. But that gets to work. We find out

:00:12.:00:21.

what it might mean for Asia and we go to Japan where the suicide of an

:00:22.:00:24.

overworked employee has triggered an nationwide debate.

:00:25.:00:31.

Hello and welcome to Asia Business Report. I am Sharanjit Leyl. While

:00:32.:00:38.

the hard work begins for the incoming president, Donald Trump,

:00:39.:00:42.

who has taken the office with the promise to put America first. He

:00:43.:00:47.

urged businesses to buy American and higher American. Said overseas

:00:48.:00:53.

industry has been enriched at the expense of American industry. What

:00:54.:00:57.

are we likely to see from him in his first week at an office was to mark

:00:58.:01:01.

I spoke with David Willis in Washington and asked him if America

:01:02.:01:06.

first mean, the rest of the world second.

:01:07.:01:08.

Trump making that point in his inaugural address, it is about

:01:09.:01:15.

putting an America first, it is about reclaiming jobs which

:01:16.:01:19.

President Trump believes have been lost to these trade agreement which,

:01:20.:01:24.

in many cases, are just not fair, as far as America is concerned. What he

:01:25.:01:30.

plans to do is withdraw from the Trans-Pacific Partnership, the trade

:01:31.:01:36.

agreement which some say it by doing so will strengthen China's hand.

:01:37.:01:43.

This was a major part of President Obama's trade dealings. He wanted to

:01:44.:01:47.

pivot towards the South East Asia Pacific region while Donald Trump

:01:48.:01:51.

believes there is nothing better the US. He plans to tear up that

:01:52.:02:00.

agreement. He was to renegotiate whether North American Free Trade

:02:01.:02:03.

Agreement is concerned. He wants to hold leaders -- talks with leaders

:02:04.:02:12.

of Canada and South America with looking to renegotiating, provided

:02:13.:02:16.

America can get a good deal. Early days yet, we know. He is yet to get

:02:17.:02:23.

into his first week. Will he backed his statements with policies? Where

:02:24.:02:28.

possible he seems intent on doing so. Tomorrow, his first full day in

:02:29.:02:34.

office, his first weekday in office, he will sit down and find various

:02:35.:02:41.

executive orders and in many cases, those will be repealing executive

:02:42.:02:45.

orders that Barack Obama brought into a fact and trade is likely to

:02:46.:02:51.

be top of the agenda for President Trump this week. He is very clearly

:02:52.:02:58.

intent on seizing the initiative while he hasn't as far as the

:02:59.:03:04.

publicity is with him and it will be interesting to see what he does

:03:05.:03:09.

about building that wall along the Mexican border. He is to meet with

:03:10.:03:13.

the Mexican president as I mentioned, in the next couple of

:03:14.:03:17.

weeks. Although relations have been back on an even keel, there is

:03:18.:03:25.

consternation over that pledge by Donald Trump. It will be interesting

:03:26.:03:29.

to see how he plans to pull it off. David Willis.

:03:30.:03:32.

Asia is expected to be a key focus for Mr Trump and he is going to take

:03:33.:03:39.

a much more tough line on China. He is going to withdraw America from

:03:40.:03:44.

the Trans-Pacific Partnership. Earlier, I asked what it will mean

:03:45.:03:48.

for the trade deal if the US is not a part of it.

:03:49.:03:49.

A think TTP without America is pointless. Even though you have some

:03:50.:03:57.

countries saying they will push ahead, I don't see there is much

:03:58.:04:01.

benefit from that unless America is going to take part and it's quite

:04:02.:04:05.

clear they not going to. And Beazley the signal is sent to the rest of

:04:06.:04:09.

the world is not a good one. It sends a signal that the US is

:04:10.:04:15.

becoming protectionist. -- and the signal that is sent. Trump seems to

:04:16.:04:22.

see it as a zero-sum game. If you win, I lose. It implies a more

:04:23.:04:32.

aggressive approach against China. These are the two world's most

:04:33.:04:37.

largest economies. Any souring of the trade relationship will have

:04:38.:04:41.

repercussions elsewhere. He said he will label China currency and the

:04:42.:04:51.

liquidators -- currency manipulators and will put tariffs on goods from

:04:52.:04:56.

China. These goods going into China are re-exported. It affects the

:04:57.:05:05.

whole of Asia if he goes ahead. We can expect some level of tariffs

:05:06.:05:10.

against China. The issue is how will they respond? Do they respond in a

:05:11.:05:14.

conservatory way and address some of the complaints and stabilise the

:05:15.:05:17.

currency or do they respond with their own retaliation and

:05:18.:05:21.

depreciation against the dollar in which case the whole thing could

:05:22.:05:26.

escalate in a dangerous fashion. Indeed, as you say dangerous. Should

:05:27.:05:30.

we start to the Asian policymakers perhaps tailoring their economic

:05:31.:05:37.

policy in reaction to Trump? It's hard to react to something which is

:05:38.:05:40.

unpredictable. I think as we have seen, you do not know what it is

:05:41.:05:46.

doing next. He doesn't know. You can start to become closer to China,

:05:47.:05:50.

knowing that America is moving further away but it's hard to know

:05:51.:05:55.

what sort of contingency plans to put in place, I imagine, if you are

:05:56.:05:57.

running the economy. In other news:, Korean and lecture

:05:58.:06:07.

next giant Samsung has released its investigation into its Galaxy note

:06:08.:06:10.

to smartphones which were recalled because they overheated and caught

:06:11.:06:17.

fire -- Note seven. The manufacturers of the batteries were

:06:18.:06:21.

to blame. It cost the company $5.3 billion. Nevertheless, the firm

:06:22.:06:27.

expects profits driven by its booming airship business.

:06:28.:06:29.

Fox, the largest electronics maker is considering setting up to play

:06:30.:06:39.

Ash display making plant in the US. It will be $7 billion and be

:06:40.:06:51.

generate many jobs. They will have to be negotiated at state and

:06:52.:06:53.

federal levels. There is a new executive person

:06:54.:07:05.

taking over Japanese giant. He is going to re-establish trust in the

:07:06.:07:10.

company and the moves comes after this man stepped down last week to

:07:11.:07:16.

take responsibility for the death of a 24-year-old employee who took her

:07:17.:07:20.

life on Christmas Day in 2015. That is after complaining about excessive

:07:21.:07:22.

working hours. After spending 20 hours at work

:07:23.:07:30.

today, I can almost laugh because they don't even know why I exist.

:07:31.:07:35.

What will be left of me, even if I survive these stressful days,

:07:36.:07:41.

thinking I want to die everyday. These were the days of this

:07:42.:07:46.

24-year-old, ten days before she took her own life. Her death is part

:07:47.:07:51.

of the phenomena and known as death from overwork. This was first

:07:52.:08:04.

recognised 30 years ago, although there have been cases of suicide,

:08:05.:08:09.

the majority of these cases are medical where employees suffer heart

:08:10.:08:16.

attacks and strengths. In 2015, claims of Karoshi rose to a record

:08:17.:08:22.

of 2300. This woman worked a top advertising agency Dentsu.

:08:23.:08:38.

Authorities raided their officers. They will be new rules to implement

:08:39.:08:46.

to tackle this. The former executive apologised but given how entrenched

:08:47.:08:50.

this is in Japan's work culture, will these changes be made?

:08:51.:08:52.

Earlier, I put this question to a man from the school of management in

:08:53.:08:58.

Japan. He joined us by webcam. This is

:08:59.:09:04.

putting a bandage over a big wound. Moreover, I am say they are putting

:09:05.:09:12.

a bandage over a stomach ache. It is almost irrelevant. Legislation about

:09:13.:09:20.

overtime hours. It is not the problem. It is much deeper rooted.

:09:21.:09:25.

That is basically Japanese cultural attitude towards work. The reason

:09:26.:09:29.

why people work such long hours in Japan is not to reduce group

:09:30.:09:34.

activity but basically that's how we work. We tried to get consensus on

:09:35.:09:39.

team effort basis. Human relationship is more important than

:09:40.:09:44.

the result. This is one of the reasons why it is taking so long in

:09:45.:09:49.

getting things done in Japan. Once it is decided it is great, it is

:09:50.:09:53.

straightforward but this is where the real problem lies. This cultural

:09:54.:09:59.

attitude towards work has to start changing or else we are going to

:10:00.:10:03.

have this problem over and over and over again.

:10:04.:10:06.

That look at the markets before we go. It is turning out to be a blue

:10:07.:10:12.

Monday here for these markets. The Nikkei is down, Australia is down,

:10:13.:10:18.

this is due to what the protectionist policies that we are

:10:19.:10:24.

seeing, concerns of them rising, with the new Trump administration.

:10:25.:10:27.

Of course the US dollar is also slipping. It is leading to a

:10:28.:10:31.

sell-off in exporters. Thank you for

:10:32.:10:32.