27/01/2017 Asia Business Report


27/01/2017

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.

Google parent, out of ode, gives its forecast. -- Alphabet. Hideo Kojima

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takes us on a tour of his studio. Good morning, Asia. Hello, world.

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I'm Rico Hizon. Thank you for investing your time with another

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Asia Business Report. It's a Friday. We start with Google's efforts to

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diversify away from its main search engine business. It is beginning to

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pay off. Alphabet said profits rose by 8% to over $5 billion. It was

:00:56.:01:02.

lower than we expected. I asked our reporter how the core business,

:01:03.:01:07.

Google, has been performing. Google is about how many ads can be put

:01:08.:01:15.

among the search results. 36% more people are clicking on the

:01:16.:01:20.

advertisements than last year. That is a good sign. More people clicking

:01:21.:01:25.

on them. But as the company continues to move over to the Mobile

:01:26.:01:29.

world as opposed to the desktop search engine, it is finding

:01:30.:01:35.

advertisers are willing to pay less for those advertisements. That is

:01:36.:01:41.

happening more. The amount they want to spend earning those clicks is

:01:42.:01:44.

lower than before. Good signs of growth. But still unbelievably you

:01:45.:01:49.

could still say Google is transitioning to mobile. And, of

:01:50.:02:01.

course, Alphabet has other bets, apart from Google. How are they

:02:02.:02:06.

faring? What we are looking out for this time is the hardware they

:02:07.:02:15.

brought out in the last year. The Google phone, Pixel, is lumped in

:02:16.:02:19.

with all the other stuff. There is a suggestion it is performing well,

:02:20.:02:22.

though we do not know how much. The company has grown revenue in things

:02:23.:02:26.

that do not make money in the beginning but will in the future.

:02:27.:02:29.

Revenue is growing. They are only marginally beating the costs. Still

:02:30.:02:35.

a big loss for the company as a whole. But the investors group is

:02:36.:02:43.

demand of lowering the costs is happening, though gradually. San

:02:44.:02:50.

Francisco. And a Singapore fund says it will invest in Alphabet's

:02:51.:03:01.

subsidiary focussing on healthcare. Alibaba is muscling in on the global

:03:02.:03:06.

payments industry. They are buying it for $880 million. That is part of

:03:07.:03:14.

the on line payment industry. That gives it a foothold in the multi

:03:15.:03:19.

billion dollar global remittances sector. Toshiba will reveal how much

:03:20.:03:27.

of a multimillion dollar charge it will stake on its new American

:03:28.:03:32.

business. It has been reported that the hold in Westinghouse nuclear

:03:33.:03:39.

enterprise could be as big as $6 billion to raise money for a

:03:40.:03:47.

spin-off. This is the core moneymaking unit. Microsoft reported

:03:48.:03:56.

its results, 3.5% rise in profits. That is due to be -- the Cloud. They

:03:57.:04:10.

have moved towards Cloud services and mobile acquisitions away from

:04:11.:04:14.

its software business. US President Donald Trump the British Prime

:04:15.:04:18.

Minister Theresa May to the White House later this Friday. She will be

:04:19.:04:22.

the first Foreign Minister to meet with Donald Trump since he took

:04:23.:04:27.

office last week. They are expected to discuss a potential trade deal

:04:28.:04:30.

following Britain's exit from the EU. We have the details. We are

:04:31.:04:37.

excited that Theresa May is coming on Friday. We are looking forward to

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it. It may not seem like it, but President Donald Trump and Prime

:04:43.:04:46.

Minister Theresa May have a few things in common. The rise in power

:04:47.:04:51.

was killed by a rejection in the establishment. They are trying to

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create bilateral trade deals. When he talks to Prime Minister Theresa

:04:57.:05:00.

May, he will have a great conversation about the potential for

:05:01.:05:03.

greater trade with the UK. The pressure is on. Negotiations are

:05:04.:05:09.

imminent. Kneeling down a trade agreement with the US would give

:05:10.:05:14.

Theresa May a real big boost back home. But Donald Trump also wants to

:05:15.:05:18.

see a quick agreement. His America first rhetoric has many world

:05:19.:05:24.

leaders weary. I will be talking to Donald Trump about the issues that

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we share, about how we can build on the special relationship. It is the

:05:29.:05:32.

special relationship that allows us to say when we find things

:05:33.:05:37.

unacceptable. The fact she is the first world leader to visit the

:05:38.:05:40.

White House under a Donald Trump administration is perhaps a

:05:41.:05:42.

testament to Britain's special relationship with the United States

:05:43.:05:47.

pillar we have always had that special relationship with Britain.

:05:48.:05:53.

And that reflects in the first visit here. He has had a great

:05:54.:05:56.

conversation with her. He looks forward to having her here. But we

:05:57.:06:00.

could always be closer. Samira Hussain reporting. The flying

:06:01.:06:08.

kangaroo has taken off to Beijing. They are expanding their business

:06:09.:06:13.

after a record profit happening in 2016. Previously, Qantas had been

:06:14.:06:17.

losing billions of dollars with a three-year restructuring efforts

:06:18.:06:21.

under Alan Joyce having a turnaround that was remarkable. We spoke in

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Beijing about why China is a remarkable and attractive market.

:06:26.:06:30.

That has been a huge boost in the market. The amount of Chinese

:06:31.:06:33.

travellers coming to Australia is now up to 1.2 million a year. By

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2018, it will be the largest tourism market into Australia. It has more

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than doubled since that period. We have also seen a Free Trade

:06:45.:06:47.

Agreement between Australia and China, which has really boosted the

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business demand and business traffic on that route. And we have also seen

:06:52.:06:56.

a big increase in agricultural products in put -- in particular. We

:06:57.:07:08.

know that fresh dairy products will go even further. A bit different. We

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believe this is absolutely the time to come into the market to make

:07:18.:07:22.

money on this. This decision to reopen the flight route into Beijing

:07:23.:07:27.

is obviously driven more by a Chinese passengers coming to

:07:28.:07:32.

Australia, not the other way around. Is that right? The big explosion is

:07:33.:07:37.

with Chinese passengers coming in. But with the Free Trade Agreement we

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have seen the Beijing market bring the 11th largest corporate market

:07:41.:07:46.

into Australia. We served the top ten. Beijing is what we do not

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serve. It makes sense for the Australian corporate market where

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there is huge demand to go to Beijing. Chief Alan Joyce. He may

:07:55.:07:59.

not be a household name, but the game designer from Japan, Hideo

:08:00.:08:06.

Kojima, is behind some of the most successful videogame. He invented

:08:07.:08:13.

the stealth genre still popular today. His latest game has his fans

:08:14.:08:17.

in suspense. Move slowly. For decades, he made Metal Gear titles

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for the game company Konami, which made millions of copies. But after

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splitting from them controversially in 2015, gamers across the world are

:08:30.:08:34.

wanting to find out what happens next. There have been two trailers

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so far about his new game, Death Stranding, which will be a way

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station exclusive. -- Playstation. TRANSLATION: We want this game to be

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something people can get into very easily. But after they pay for 1.5

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hours, they will see something different. It is something they have

:08:58.:09:01.

not played before. So the motion capture... It is normal to stay

:09:02.:09:07.

tightlipped about upcoming projects like this. It is far too soon for

:09:08.:09:12.

people to test it. So no one can say if it will be any good. Are you in

:09:13.:09:18.

the game? LAUGHTER. But the idea it is different from what has come

:09:19.:09:23.

before is no surprise to be as we visit places that have been

:09:24.:09:26.

important turning point in his history, he explains how he sees the

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gaming industry changing forever, with movies, games, and music,

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converging in different ways that the TRANSLATION: Things such as

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games and music and novels and movies, they were all meshed

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together into one new type of entertainment. What struck me about

:09:43.:09:50.

spending time with Hideo Kojima, is here is a man who has achieved

:09:51.:09:54.

everything there is to achieve in the game industry. But he said he

:09:55.:09:59.

would not retire. He is still passionate and energetic about

:10:00.:10:02.

technology and gaming. And he is still coming up with new ideas. And

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he said he has set himself the biggest challenge yet. He has

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changed the gaming industry once. Now he wants to do it again. BBC

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News, Tokyo. A brilliant videogame maker. The markets now. Asian

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markets, as you can see, are quite firm, most of them. The Nikkei is up

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by two fifths of 1%. The older in positive territory. I am Rico Hizon.

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-- the All

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