17/02/2017 Asia Business Report

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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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54% voted against the agreement, negotiated


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


Samsung's boss is formally arrested as prosecutors investigate his role


in a bribery scandal. And Facebook founder Mark Zuckerberg calls for


every -- a reboot to globalisation. Good morning, Asia and hello, world.


Thanks for joining us. Samsung's acting chairman JY Lee was arrested


earlier this morning after a court granted prosecutors decision to do


so. The prosecutors have said there is new evidence against Mr Lee, as


they investigate his role in a major corruption scandal in connection to


the president Park Geun-hye. In a statement, Samsung says the company


will do its best to ensure that the truth is revealed in court.


An expert in Seoul says the arrest is significant.


It means that the prosecution have convinced the judge here that there


is enough evidence against Jay Y Lee, to the extent that the


prosecution should be able to win a conviction against him in court when


it comes to trial. That's the prosecution's contention and they


have found a judge who agrees it is reasonable and has issued the


warrant. That has put Jay Y Lee in jail and presumably he will stay


there until the trial process begins. Will prosecutors make sure


there is no way out for Jay Y Lee? They filed so many charges against


him, from hiding the proceeds of a criminal act, bribery, embezzlement,


hiding funds overseas and perjury. Could this lead to more arrests of


other conglomerate bosses down the road? That's a good question and


absolutely it can and may well, because Samsung of course was not


the only Korean business group to have made donations to the two


foundations that are at the crux of this political scandal that has


involved the impeachment the president. Will the billionaire heir


of Samsung, with him now behind bars, could this throw the Samsung


group into turmoil? It could because he has been the CEO... I realised


his title is vice-chairman, at his father has been in a coma for


several years, and so effectively Jay Y Lee has been the chief


executive of the Samsung group. So there's obviously crucial business


decisions involving the principal units of the group. Samsung


Electronics and its associated companies in particular. But the


settlements of the group's structure is not yet complete either. But have


a quick look at the stock rise. Investors aren't reacting too badly.


Shares in Samsung opened lower, but not by much. One share jumped by


more than 8%, a company headed by the sister of Jay Y Lee. It appears


some investors are expecting the sister to play a big role in the


company. Staying with South Korea and wants a shipping giant, and Jim


will file for bankruptcy. The debt the past five billion dollars, US. A


slowdown in the global economy and trade were cited as the main reasons


for Hanjin's downfall. The owner of Snapchat has confirmed


there has been a lot of excitement around the company, as there often


is for technology stocks, but Snapchat values itself as $22


billion, significantly less than the previous estimates. So what are


investors concerned about? Let's take a look.


Snapchat launched in 2012 as an app that allowed users to send photo


messages that disappeared after a certain time. It rebranded as Snap


in 2016. The service appeals to a user base in their teens and early


20s. It has over 150 million daily active users. Snap derives its


income mostly from advertising. Last year's revenue was $404 million. But


the company made a net loss of over $514 million. Investors may have to


stick around a lot longer than a snap that message if they are to


make a gain on its shares -- Snapchat.


Staying with social media, the founder of Facebook says he fears


millions of people are withdrawing from the globally connected world in


part because of they use. It is unusual for him to speak out this


way. Our economic editor explains what he told him. He told me in the


BBC's interview with Mark Zuckerberg that he didn't want to be a


politician. Not now, he said. He didn't say not ever. But I think he


is the leader of one of the biggest businesses in the world. Frankly he


is probably as influential as he is going to be as a politician, leading


Facebook. What's interesting about what he called me at what he has put


out in his 5500 word Post on Facebook tonight is that he talks


about globalisation, as you've said, and they can use, but he talks about


people not getting upset. -- fake news. But fighting back. He says the


way to fight that is billed collective miss across borders,


bring down barriers. What an opposite tone to the tone of


President Trump. He was very careful with me not to bite on any of my


questions about Donald Trump doesn't agree with you, are you going to


meet Donald Trump? He famously didn't go to the roundtable that


many tech leaders went to, but nevertheless it gives an alternative


view. Thousands of words, well thought through, whatever you might


think about the legitimacy of someone like Mark Zuckerberg talking


about this. It was a well thought through 5500 word piece of work and


in the present environment it certainly will be seen as an


alternative manifesto to what we're hearing from the White House. You


can read the interview in full on our website. While the Facebook


founder may not want to comment on President Trump's policies, his


protectionist rhetoric has put Asia on edge. I ask someone from APEC if


he agrees with Mr Zucker the's view on globalisation. -- with Mark


Zuckerberg's. Traditional trade slowed right down, although the


outlook for the next year or so is probably improving. Services trade


is where it is. Although trade has slowed down, as you mentioned, there


is a lot of concern that even with globalisation this hasn't really


filtered down to the people, especially to the masses. Well, I


will be off in a week to Vietnam and we will have the first meeting for


APEC in a year. They are one of the lowest income economies in APEC and


they've been doing well out of globalisation, as have many other


economies. So half a billion people isn't anything to scoff at. We've


seen some countries pushing their populist policies. It seems there is


a head-on collision between globalisation and protectionism.


This free trade and open markets, has this been the cost of the


discontent and the popularity of popular reason? I think


globalisation has been labelled as part of the problem, we are talking


about automation, migration and other things. But actually when APEC


leaders talked about all of this, as they did a month or so ago, they say


they are continuing down this path. We think there are big games to


come, but we know we haven't communicated well and we need to do


that better and talk about the winners and losers, not just talking


about Peru and alpaca. How will this play out going forward? We will have


to pay much more attention to what the impacts are of a lot of trade


agreements and improvements in getting services and small business


into the trade arena. A lot of that will help people at the bottom of


the pile, not just at the top. Briefly, what is likely to the BP?


Will Japan lead it or build China? -- TPP. A bunch of things could


happen. In one month Chile will have a meeting of TPP leaders without the


US, but with China and Korea. If that goes ahead that could change


things a bit. Now let's have a look at the


markets. Asia is slipping into negative territory. That is due to


the weakness on Wall Street overnight. We are also watching how


Singapore will open after its fourth-quarter economic growth was


revised higher. Thanks for investing your time with us. Bye for now.


The top stories this hour: President Trump lashes out