26/01/2017 Asia Business Report


Similar Content

Browse content similar to 26/01/2017. Check below for episodes and series from the same categories and more!



The Dow Jones scores 20,000 for the first time ever. Is this the Trump


effect? And why India's universities are banning some start-ups from


recruiting on their campuses. Good morning, Asia. Hello, world. It


is Thursday. Glad you could join us. We kick off with Wall Street, where


US stocks crossed a major milestone. The Dow Jones industrial average


finishing above 20,000 for the first time ever and you also have the


broader S 500 and the NASDAQ also at record levels. This is how Asian


markets are reacting to the Dow Jones 20,000. The Nikkei gaining


1.3% and the All Ords hired by 20 points. Basically Mr Trump's senior


adviser was quick to comment on the news, tweeting that the landmark was


down to the Trump effect, but is it? Let's have a look.


Earlier I asked our business adviser if it really is the Trump effect. If


you look at stocks, especially the Dow Jones, we have seen it is up


some 8%. That's since the election of Donald Trump. Really when you


look at some of the executive orders we've seen that Mr Trump put through


over the last few days, what it is really signalling to Wall Street is


that some of the promises that Mr Trump had campaigned on, things like


rolling back some of the banking regulations, making the tax code in


the US less, catered and making it easier for people to invest, it


would seem from Wall Street that in fact the president will be trying to


make those things reality. That said, you also have to consider the


kind of economy that Mr Trump has inherited. We are seeing that the US


labour market is doing well. The unemployment rate is at its laws


level in about a decade and we saw that massive stimulus programme by


the US central bank and the Federal Reserve. All of that help to lift


market to where they are today. Stocks have rallied, as you


mentioned. The US dollar is still putting pressure on Asian currencies


are like the Japanese yen, which is usually good news for major Japanese


companies who exported overseas. But did Mr Trump pulling out of the TDP


and renegotiating the free trade agreement means the weaker yen will


not be much help? I asked someone from the Bank of America what his


forecast was for the Japanese currency. I think given the policy


divergences between the markup in the bank of Japan and the Federal


Reserve, the yen will rise into the media and it should be about 120.


But then you have the US political pressure, which might talk things


down. So from the Japanese policymakers' perspective, the


dollar is high but not too high is how they feel. They could also see


at strengthening by the end of 2017. What does this mean for the local


and export companies? The weaker yen is usually good for Japanese


automakers and exporters, but at the same time you are seeing the US


president basically wanting Japanese companies to produce in the US and


reduce exported from Japan, potentially. So it's a difficult


situation. If you come to Tokyo you see many European but not so many


Japanese cards and that the preference. So I think this trade


issue is going to be quite challenging for the Japanese


government and Japanese automakers. In other business news, Facebook has


announced changes to its trending feature to tackle the growing issue


of tech news. In its latest bid it says Facebook will not be


personalised and the system will decide what is trending and everyone


in the same region will see the same topics. Shares are down 13% in Tokyo


and were untraded at one point, due to too many orders and that's after


the company's full-year profitability came in lower than


expected. Profit slipped at Boeing last year because of lower


deliveries of its aircraft, where the US company expects to deliver


more commercial planes and improve its earnings going forward. India's


start-up companies have become the biggest recruiters of new graduates.


The jobs on offer are amongst the most sought after banks to juicy


salaries and attractive terms. That's until this year. Many


universities have now blacklisted a number from recruiting on campus.


This man is slowly getting used to the demands of professional life. He


has been working as a trainee at a foreign company for the last six


months. Although the engineering graduate counts himself lucky, it is


not exactly his real job. He wanted to work for an up start-up and was


recruited by one before he even graduated last year. Only to have


the offer withdrawn within a few months. That left him with no


prospects to find another opportunity. I started applying the


companies and got some refusals because they didn't want to hire


someone who was initially hired in another company. It was a struggle


to find the next job. It is not a situation students from the


prestigious Indian institute of technology expect to be in. For


students in India, securing a seat at IIT is a big achievement. It is


the Indian equivalent of studying at somewhere like Oxford University.


Part of the appeal is a chance of getting a job offer from prestigious


company and these days employment opportunities and successful


start-ups are the most sought after, where people can do new and


innovative things. If you want to be posted as a sales office or in the


marketing division... Global investors have been pouring in


capital to fund Indian start-ups, but most are struggling to make


company Dimeck money, which means too many cutting jobs. -- struggling


to make money. In an effort to protect its students, the IIT


management has now and those companies from recruiting on campus


at 23 of its branches throughout India. Our approach to start-ups


this year has been more cautious. I also want to look at whether the


funding opportunities and sources these companies have are viable or


sustainable for a substantial period of time. The BBC contacted


companies, but only a few responded. One of them said:


More than 10 million young Indians enter the job market every year and


the ones who are in the start-up sector expected to absorb a lot of


them. But businesses can be risky. Both entrepreneurs starting out and


for potential employees, hoping to work with them one day.


The world's against human migration is currently under way this week and


I've been talking about the many people returning home for the


Chinese New Year holidays, or the spring festival. It is China's most


important holiday, yet a seven-day break comes to a halt. Except for,


as these pictures show, transportation systems and tourist


sites. I asked someone from a travel company whether there is a different


trend this year. Beyond the numbers we see a polarisation of traveller


preferences onto important dimensions. One is how self focused


they are and the second dimension in his how much control they are


looking to exit on their travel. For Chinese travellers we are seeing


more and more travellers, about 50%, getting much more self focused. It


is all about me and not about the family? About self-discovery and


wanting to exert more control. Let's have a quick look at the


markets. An historical day on Wall Street for the Dow Jones industrial


as Donna -- industrial and NASDAQ and SNP at record levels as well. It


is rubbing off on the Nikkei and the Hang Seng as well. Australia is


closed today for a public holiday. Thanks


Download Subtitles