03/02/2017 Asia Business Report


03/02/2017

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The RMT is still fighting Southern on the same issue.

:00:00.:00:00.

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

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Preparing to meet the US president. Japan's by minister talks to the

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head of the UN day about the auto industry. -- Hyundai.

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And the owner of Snapchat files for share sales and hopes to raise $1

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billion. It is Friday! Glad you could join us

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on Asia Business Report. It is becoming to be known as the

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Trump shock. Japanese businesses are nervous about criticism from the US

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president. Shinzo Abe will meet him next week in Washington and in

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preparation he has cut his putting, he is getting together with Toyota's

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boss to ward off concerns about the auto industry. One of the main

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issues is the Japanese yen. As you can see on this foreign exchange

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dollar chart, a lot of volatility against the US dollar. The US

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president has accused Japan of playing the money market to take

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trade advantage, which Tokyo has denied. I asked an investor in Tokyo

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what the feeling was amongst Japanese businesses. It is certainly

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fair to say that Japanese CEOs as low as American CEOs are nervous

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about getting called out by President Trump. If you look at the

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history of the election cycle, President Trump is somebody who

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tends to personalise his arguments and his debate and that means he

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will call people out individually and callout companies. Yes, it is

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wise to be concerned about this. As an overall issue for Japanese CEOs.

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Will this mean than an increase in Japanese investments into the United

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States, not only for the likes of to go to but also other industries? We

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think it will. If you look at the $50 billion investment announced by

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SoftBank, we think it's a trend where Japanese corporations and

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politicians will be very focused on the American relationship. We are

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really in a situation where we have to fight them from this perspective.

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We have a president where we don't know what his policies will be and

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we need to be on the bright side totally off the table with him for

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those discussions. The Japanese yen, is Trump right to say that the

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Japanese are using the money market to trade the yen to its advantage?

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It is sometimes hard to separate the posturing from the true beliefs.

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Interest rates really drive foreign exchange rates, certainly in the

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currency markets. There is a mathematical relationship. It is

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very hard to define currency manipulation, so it's a useful

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political term if you will to rally support among the troops, but it is

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hard to imagine someone has manipulated the currency. The

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currency world is very fluid. On a second to second basis the currency

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determines the market, not politicians. Sony has cut in half

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its full-year profit forecast but it was also hit by a big rap down from

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the movie business. Shares were down nearly 6% in Tokyo trade today as

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the business offset its write-down concerns. Staying with the Japanese

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technology industry, Panasonic is in trouble with US authorities. It says

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it is avionic business is being investigated under the foreign

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corrupt practices act. It didn't specify the nature of the

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investigation but said it has been fully cooperating with authorities.

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It has been talked about for many months, but Snapchat has officially

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filed shares to investors, hoping to raise $3 billion US. According to

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the company nearly 160 million people use of Snapchat to create 2.5

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billion maps every day. -- snaps. It is huge with young people, so if you

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are feeling old like myself are technology correspondent has this

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tutorial. Here is the problem. I've been on

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Snapchat for a couple of years but I've never got it. Now finally I'm

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determined to understand it with a younger person, Priscilla. What do I

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do? The best thing to do is take selfies. You double-tap your screen

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and if you want to put a filter, you hold on to your face, you have

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different filters. I've got that filter, that filter... I've got

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ears. To send that to someone individually you click on that

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arrow. You can share your day with the world. That's the point of

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Snapchat. Let's go out and try that. I'm walking down the stairs of

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Snapchat in and it is really dangerous. -- Snapchatting. It's a

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spiral staircase! Priscilla, we've both got lunch. Is this? -- is this

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snapable? Very. Is it about getting thousands of people to like my

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snaps? No, it is about your views. You can always see who has viewed

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your Snapchat on your friends list. It isn't about mass market, it is

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about if you close friends? Yes. Some celebrities open up their

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Snapchat to their fans. Now I am snapping with a bunch of Radio one

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fans who are waiting for somebody famous. It was Camilla, either way,

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and even Priscilla doesn't know who she is! I don't get how they are

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making money out of this. I think out they make money out of it is

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through the Discover page. You can see various publishers have put

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stuff on. Do you ever do that? Hardly. Are their adverts? Yes.

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Sometimes you are watching people's snaps and then an advert may pop up,

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but you can always skip it. Just some of its appeal. Snapchat is a

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fun thing to do. You can do it throughout the day, wherever you

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are, so it is fun. In other business news, making

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headlines, the boss of Uber has quit President Trump's business dealers

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forum. The company has been hit by boycott campaigns all week. That's

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as people perceive its participation as an endorsement of the president.

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The executive order has been condemned to stop the refugee

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programme, but calls for a boycott have continued. The firm is

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suspending its service in Taiwan next Friday, following the

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authorities' decision to raise fines against unlicensed ridesharing

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services targeting Uber. Staying with that sector and Weibo's

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rival in Southeast Asia wants a piece of the sector, investing more

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than half a billion US dollars in India -- Indonesia. It wants

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customers to use its application to pay from everything to rides, food,

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shopping and beyond. Like many other countries the region, and that

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majority of Indonesia's population still don't have a bank account.

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There are several hundreds of millions of people in Asia, so being

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able to provide a real localised solution like Grab Pay, or Grab

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Rewards and many iterations of our future products for Grab Pay will

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solve real problems in Southeast Asia and especially in Asia.

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The collapse of South Korea's hon Jean last year meant shipping rates

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dropped. I asked an industry expert if we can expect, conditions for the

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industry this year. Basically it is at the bottom of the sector and

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we've seen rates rise. This year looks better. Better than last year

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I would say. Will it be a better year? If we look at the economy, the

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US economy is feeding into the economies of Japan and Europe and

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we've seen the exporter numbers turning positive. That's having a

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positive effect on demand and supply has been curtailed. Overall it is

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looking better than 2016. What about the fear of US trade? Is that the

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biggest risk for Asian shipping in 2017? Certainly. We have the rise of

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protectionism as well as the trade wars. Trade wars are a very negative

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pressure. Rising protectionism creates problems for the sector.

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What if the trade barriers are raised? How will this impact an

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already weakened shipping sector? It will be a disaster. It will have a

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significant impact on the trade flows and we will see much lower

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volumes. But this is longer term. In the short term there will be a

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negative, but the industry is bracing for it. Could we see a

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consolidation in 2017? In the past two years we had 13 or even lower in

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terms of alliances. We will see some parts of the benefit, but I'd was a

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major consolidation is over. That was a shipping expert. A quick look

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at the market and Asian stocks. In early trade, a tentative start.

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Investors await the outcome of a key US multi- jobs report and how this

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will impact the Fed's policy outlook. And of course China's

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markets are back on track after a week-long break due to the lunar New

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Year holidays. Sport Today is coming up.

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The government has published a White Paper setting out its plans

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The Brexit secretary David Davis told MPs that changes would be

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phased in gradually and the UK would not find itself on the edge

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The paper promises a new immigration bill

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