Browse content similar to 15/02/2017. Check below for episodes and series from the same categories and more!
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Janet Yellen makes her debut in front of the new Congress. She hints | :00:16. | :00:22. | |
at any rate hike in the next few months. And shares in Toshiba | :00:23. | :00:26. | |
nosedive yet again as the Japanese conglomerate faces a $6 billion | :00:27. | :00:38. | |
write-down. It is Asia Business Report. Good morning, Asia. Hello, | :00:39. | :00:44. | |
world. Markets have been buzzing overnight as the head of the US | :00:45. | :00:47. | |
Central Bank said an interest-rate rise could come as early as next | :00:48. | :00:51. | |
month. In the SME annual testimony to Congress, Janet Yellen set of | :00:52. | :00:57. | |
hawkish tone, saying it is unwise to wait too long to hike rates. | :00:58. | :01:02. | |
Financial stocks in the US lifted. The broader S index closing higher | :01:03. | :01:10. | |
for a fourth consecutive session. This is how Asian shares are trading | :01:11. | :01:15. | |
in early trade on Wednesday. All in positive territory. More analysis in | :01:16. | :01:20. | |
a moment but that hear what she had to say. As I noted on previous | :01:21. | :01:25. | |
occasions, waiting too long to remove accommodation would be | :01:26. | :01:33. | |
unwise. Potentially requiring the FOMC to raise rates rapidly which | :01:34. | :01:37. | |
could risk disrupting financial markets and pushing the economy into | :01:38. | :01:44. | |
recession. At our upcoming meetings, the committee will evaluate whether | :01:45. | :01:47. | |
employment and inflation are continuing to evolve in line with | :01:48. | :01:55. | |
these expectations in which case, a further adjustment of the federal | :01:56. | :01:58. | |
funds rate would likely be appropriate. So what would be the | :01:59. | :02:07. | |
impact of rate hikes on Asia? For monetary policy in the region, this | :02:08. | :02:14. | |
is going to be a very interesting cycle. I do not think the Asian | :02:15. | :02:19. | |
banks are going to be following the Federal Reserve 's is much in the | :02:20. | :02:24. | |
past. We only have one Asian central back -- bank, the Philippines, | :02:25. | :02:29. | |
raising rates. Some, like South Korea, might cut rates further. If | :02:30. | :02:35. | |
this is the case, seeing another rate rise as early as next month, | :02:36. | :02:40. | |
could we see falls again in Asia's emerging currencies like what we saw | :02:41. | :02:47. | |
in 2015 and 2016? We think so. We think that is the risk for Asia. I | :02:48. | :02:51. | |
don't think the market had been pricing in how much of a chance | :02:52. | :02:56. | |
there was of a hike in March. I think it's probably 50- 50 after | :02:57. | :03:02. | |
Janet Yellen's testimony and the possibility that there could be more | :03:03. | :03:06. | |
than two hikes this year so the risk is, the Asian currencies could | :03:07. | :03:09. | |
weaken and what that could do, it could lead to some foreign come -- | :03:10. | :03:15. | |
foreign currency debt mismatch problems in Asia has built up since | :03:16. | :03:21. | |
2008 a lot of debt so that is a risk. Who could be the biggest Asian | :03:22. | :03:30. | |
victims? Malaysia? Indonesia? I, the Philippines? Some of the Southeast | :03:31. | :03:35. | |
Asian countries do have quite a bit of foreign bond holdings. Malaysia, | :03:36. | :03:40. | |
Indonesia. Some have current-account deficits. Indonesia, India. But to | :03:41. | :03:45. | |
be honest the biggest debt is in the north-east Asian countries like | :03:46. | :03:49. | |
China and Asia and South Korea and Taiwan and Singapore as well. With | :03:50. | :03:54. | |
these huge dollar denominated debts due to the strengthening US dollar, | :03:55. | :03:58. | |
could we see potentially a financial crisis brewing in Asia going | :03:59. | :04:04. | |
forward? That's a tricky one because what I would say is Asia doesn't | :04:05. | :04:10. | |
have huge hard currency debts. We learnt our lesson from 1997. But we | :04:11. | :04:16. | |
have a lot of domestic debt. The risk is, we could see a little bit | :04:17. | :04:22. | |
of default from currency mismatch. Not our biggest problem, which is | :04:23. | :04:27. | |
domestic debt, but it could lead to tightening financial conditions. | :04:28. | :04:30. | |
Bondholders and banks might start to rein in credit and it spills over to | :04:31. | :04:35. | |
tighter domestic conditions and you start to see domestic defaults. | :04:36. | :04:38. | |
There is a bigger risk than most people see of credit stress in Asia | :04:39. | :04:43. | |
later this year. All this could lead to slower Asian growth going | :04:44. | :04:49. | |
forward. Robert Subbaraman there. Samsung's Chief Executive faces a | :04:50. | :04:58. | |
potential arrest. An arrest warrant was issued. Mr Lee is being looked | :04:59. | :05:08. | |
to be put behind bars involving bribery incident involving the | :05:09. | :05:12. | |
President. Shares in Samsun are down over 1%. Facebook is launching an | :05:13. | :05:17. | |
application which will allow users to stream videos on their news feed | :05:18. | :05:22. | |
through set-top boxes such as Apple TV so they can enjoy the videos on a | :05:23. | :05:28. | |
bigger screen. Rivals such as hammers on and Samsung have similar | :05:29. | :05:33. | |
services. Shares in Toshiba are falling by 10% in Tokyo and that is | :05:34. | :05:40. | |
after a plunge of nearly 50% since December and that is when the | :05:41. | :05:44. | |
company first warned investors about a massive write-down in its US | :05:45. | :05:49. | |
nuclear business. Yesterday the firm was supposed to be reporting its | :05:50. | :05:53. | |
earnings but at the last minute, postponed the announcement and that | :05:54. | :05:58. | |
wasn't the only surprise. At Tokyo correspondent explains the days | :05:59. | :06:03. | |
events. First we expected the announcement of big losses and then | :06:04. | :06:06. | |
they cancelled the announcement and then we got a statement from the | :06:07. | :06:10. | |
chairman saying he was resigning and finally we got these provisional | :06:11. | :06:17. | |
figures which include a $6 billion loss at Toshiba's North American | :06:18. | :06:21. | |
nuclear division. We won't get the full results but it is clear that | :06:22. | :06:27. | |
Toshiba is in serious financial straits. What happens now to Toshiba | :06:28. | :06:32. | |
is unclear. The Japanese government may step in to rescue the company, | :06:33. | :06:36. | |
it could be broken up but the real question nobody is sure about is | :06:37. | :06:39. | |
what will happen to its North American nuclear division which is | :06:40. | :06:44. | |
deep in debt and still is constructing for nuclear power | :06:45. | :06:46. | |
plants which are halfway through construction. What is really clear | :06:47. | :06:52. | |
is nobody wants that business, there are no potential buyers apart from | :06:53. | :06:59. | |
perhaps the Japanese government. One unit that is attracting interested | :07:00. | :07:03. | |
buyers is its memory chip business. It is a crown jewel of the firm but | :07:04. | :07:08. | |
the boss of Toshiba said in a press conference that he was willing to be | :07:09. | :07:17. | |
flexible about its fate. Our memory chip business, we want to secure | :07:18. | :07:21. | |
resources which will spur future growth. We are thinking very | :07:22. | :07:25. | |
flexibly which means we will not fixate on having majority stakes in | :07:26. | :07:29. | |
the business and will consider introducing external capital with a | :07:30. | :07:37. | |
flexible mindset. Journalists expressed frustrations with one | :07:38. | :07:42. | |
saying, what also you hiding? If you want to read about it, go to our | :07:43. | :07:49. | |
Asian business correspondence's blog and she explains the official | :07:50. | :07:53. | |
results will be released on the 14th of March and if the company's debt | :07:54. | :07:58. | |
and corporate governance situations aren't improving, its shares could | :07:59. | :08:03. | |
be demoted with a second section of the Tokyo stock exchange or even | :08:04. | :08:09. | |
delisted. The Indian space agency is attempting a world record by | :08:10. | :08:12. | |
launching 104 satellites in the one go. Its commercial launch operations | :08:13. | :08:16. | |
are much cheaper than any other country and it's creating a thriving | :08:17. | :08:20. | |
ecosystem for privately space programmes. We visited one of them. | :08:21. | :08:33. | |
It's a race to the moon to put the privately funded space craft and | :08:34. | :08:42. | |
India's Team Nimbus is one of the finalists. They are betting they | :08:43. | :08:47. | |
will get there first. This is a small rover built I team Team Indus | :08:48. | :08:54. | |
and it has been to simulate the moon's service. I will try to | :08:55. | :08:58. | |
control it with my phone. It's not meant to be fast. If it is | :08:59. | :09:04. | |
successfully achieving this for 500m on the moon's surface, it stands to | :09:05. | :09:11. | |
win a prize of $20 million. The team is taking part in the lunar price | :09:12. | :09:17. | |
challenge funded by Google. It has signed a deal to hitch a ride on one | :09:18. | :09:21. | |
of the Indian government's rockets. Mission Control is already in place. | :09:22. | :09:26. | |
Target launch date, December this year. Once we accomplish this and | :09:27. | :09:32. | |
prove what we can do by way of design and integrated -- integration | :09:33. | :09:37. | |
and prototyping, we can turn around and offer these services to other | :09:38. | :09:40. | |
folks who might be interested in space exploration. They will have | :09:41. | :09:48. | |
tough competition. For other teams are also in the race. Israel's space | :09:49. | :09:57. | |
cell, Synergy moon and a team from Japan also have contracts to launch | :09:58. | :10:03. | |
this spacecraft. Go into the moon is not cheap. Team Indus says their | :10:04. | :10:09. | |
mission costs about $60 million so even if they win, they have still | :10:10. | :10:13. | |
lost money. Prestige and national glory is priceless. Thank you for | :10:14. | :10:25. | |
investing your time with us. See you next hour. By the now. Daesh goodbye | :10:26. | :10:30. | |
for now. The headlines this hour. The half | :10:31. | :10:49. | |
brother of Kim Jong-un | :10:50. | :10:50. |