:00:00. > :00:00.has suffered its first defeat over the Brexit bill. The House of Lords
:00:00. > :00:00.backed a cross-party amendment saying that ministers should
:00:00. > :00:12.guarantee EU nationals' right to stay in the UK.
:00:13. > :00:22.He comes bearing gifts. The Saudi Arabian king riots in Indonesia
:00:23. > :00:29.where he is expected to pump money into the country's oil sector. And
:00:30. > :00:38.the owners of Snapchat see their company valued at $24 billion in a
:00:39. > :00:45.share sale. Welcome to Asia Business Report. It has been a highly
:00:46. > :00:52.anticipated state visit. Saudi Arabia's King Salman is in Indonesia
:00:53. > :00:56.as part of multi- stop tour around Asia. The Saudi king is expected to
:00:57. > :01:02.announce investment deals totalling more than $20 billion. Around $6
:01:03. > :01:10.billion of that will be pumped into state owned refineries, and it is
:01:11. > :01:16.the second oil deal we over Saudi Arabia this week. Earlier the
:01:17. > :01:22.country invested $7 billion into a refinery project over in Malaysia.
:01:23. > :01:28.Saudi Arabia is the world's biggest exporter, much of its crude going to
:01:29. > :01:33.customers in Asia. I asked why Saudi Arabia is so particularly interested
:01:34. > :01:38.in this region. Saudi Arabia has a lot of money to throw around. It
:01:39. > :01:42.would like to diversify its own economy and bring some of the
:01:43. > :01:51.expertise it has in oil refining to this region, Malaysia and Indonesia
:01:52. > :01:53.are producers of crude oil, but they don't have that much refining
:01:54. > :02:01.capacity. Indonesia in particular has very little. So if Saudi Arabia
:02:02. > :02:05.can bring some of that expertise to Indonesia, and capital... What is
:02:06. > :02:09.crucial about this visit is he is making this multi- stop tour around
:02:10. > :02:14.Asia, rather ironically he is not coming to Singapore at going just
:02:15. > :02:22.about everywhere else. Is this to tie in with the possibility of
:02:23. > :02:25.Saudi's listing? Absolutely, it is a preview to that, spreading the word
:02:26. > :02:32.about Saudi Arabia, Ling ties to some of the economies of this
:02:33. > :02:36.dynamic region that the Saudis have frankly neglected for 50 years --
:02:37. > :02:42.building ties. It has been 50 years since the Saudi king visited Japan
:02:43. > :02:49.and Indonesia. Japan is a potentially large investor in that
:02:50. > :02:55.IPL, and is a significant buyer of oil. All of that makes this a
:02:56. > :03:01.worthwhile trip to be making. Singapore, of course, would like to
:03:02. > :03:07.have Saudi listing in Singapore as well. Japan's sharemarket has
:03:08. > :03:10.followed Wall Street to climb to levels that are extremely high. As
:03:11. > :03:14.you can see, it has not hit this level in more than a year. The
:03:15. > :03:20.Japanese market following on Wall Street's lead after the Dow Jones
:03:21. > :03:25.rose well passed the 21,000 mark, as you can see, and the dollar rising
:03:26. > :03:29.on expectations the US Federal Reserve will raise US interest rates
:03:30. > :03:33.at its March meeting. The surge followed President Trump's speech to
:03:34. > :03:39.Congress outlining his agenda. The markets have been on a winning
:03:40. > :03:42.streak since Mr Trump took office but former Federal Reserve chairman
:03:43. > :03:47.Alan Greenspan says he is not surprised by the strength of the
:03:48. > :03:52.market. I don't think it is too much of an exaggeration to say that
:03:53. > :04:00.virtually all market response is a removal of uncertainty. We are
:04:01. > :04:07.turning our back in the direction of higher levels of price earnings
:04:08. > :04:11.ratios, which have been suppressed. That was former Federal Reserve
:04:12. > :04:17.chairman Alan Greenspan. Snapchat is a popular app that lets you create
:04:18. > :04:21.and send pictures or videos with a brief shelflife. Some of you may be
:04:22. > :04:27.using it, in fact. Shares will begin trading on the US stock exchange on
:04:28. > :04:33.Tuesday, and overnight the shares were priced at $17 per share, above
:04:34. > :04:36.the $40 price range it had previously indicated, that values
:04:37. > :04:43.the company at $24 billion, despite the fact that Snapchat is yet to
:04:44. > :04:50.turn a profit. In fact, it lost over $500 million last year alone. So
:04:51. > :04:54.what has investors so excited? Our correspondent has the answer. In
:04:55. > :04:58.just five years, Snapchat has gone from a little app that was created
:04:59. > :05:05.by a couple of college kids to a virtual giant in the world of social
:05:06. > :05:11.media, with a 160 million daily active users and on Thursday it will
:05:12. > :05:15.start trading on the US stock exchange. So why are investors so
:05:16. > :05:21.excited about a company that is valued at $20 billion but has yet to
:05:22. > :05:24.make a profit? Well, they are hoping it will see the same success as
:05:25. > :05:30.companies like Google or Facebook. Of course, the worry is they will
:05:31. > :05:36.end up looking a little bit more like Twitter or Groupon, companies
:05:37. > :05:40.which came with the lot of hype but not much else. Snapchat
:05:41. > :05:44.fundamentally is kind of a new breed of social network. It is not like
:05:45. > :05:49.Facebook, where there is a big public war and your whole family is
:05:50. > :05:53.on there. It is not like Twitter, necessarily, you are broadcasting to
:05:54. > :05:57.the whole world. It is very much its own animal and I think if you are a
:05:58. > :06:01.parent of a child completely addicted to this product, you might
:06:02. > :06:05.very well see it has a future. I know what Snapchat is but I don't
:06:06. > :06:11.use it. Usually when I see something I snap it. I have it but don't use
:06:12. > :06:16.it. My kids use it. I am not really the right demographic for it. I use
:06:17. > :06:21.it all the time, I love Snapchat, it is great. I don't what it is, I
:06:22. > :06:24.don't use it. Snapchat is the talk of Wall Street even though it is an
:06:25. > :06:29.app geared to teenagers but that will be the key to its success, if
:06:30. > :06:35.it can still attract the young users and advertise to them, then great.
:06:36. > :06:45.If it can, Snap Inc risks becoming just another overhyped tech company
:06:46. > :06:48.which grew too big too fast. South Korea's industrial output has surged
:06:49. > :06:54.33% in January compared to the previous month. The figure outpaced
:06:55. > :07:00.analyst expectations, it is the fastest growth since September 2000
:07:01. > :07:04.nine. Service sector output also rose 0.5% which is a slight
:07:05. > :07:08.improvement over December's figures. McDonald's has outlined a plan for
:07:09. > :07:13.winning back customers. The burger chain has lost around 500,000
:07:14. > :07:17.customer visited the US since 2012. Of those visits have gone to other
:07:18. > :07:24.fast food restaurants. The world's largest restaurant chain plans new
:07:25. > :07:28.look restaurants and delivery services, as well as more aggressive
:07:29. > :07:33.marketing for items like coffee and pastries. Over in Indonesia, wealthy
:07:34. > :07:37.households are well-known for spending money on all sorts of
:07:38. > :07:42.luxurious things in life, like fashion beauty. Well, the spa
:07:43. > :07:47.business is also flourishing, but they are not just for adults any
:07:48. > :07:52.more. Kids are getting a little pampering, would you believe, and as
:07:53. > :07:57.part of our Business of Kids series, we found one children's spa in
:07:58. > :08:02.Jakarta which is doing so well it is set to go international.
:08:03. > :08:08.Three-year-old Jasmine is a regular customer here at this spa in
:08:09. > :08:12.Jakarta. Her mother spends up to $200 a month on spa treatments and
:08:13. > :08:16.massages for her honour that is almost the minimum monthly wage
:08:17. > :08:22.here. TRANSLATION: I take my child here once a week. During school
:08:23. > :08:27.rakes I also take her siblings and that is why I decided to buy a
:08:28. > :08:31.package of 50 visits. On offer are massages and chocolate spa
:08:32. > :08:36.treatments for children as young as six days old. The baby spa was
:08:37. > :08:41.founded in 11 years ago and now has 23 branches throughout the country.
:08:42. > :08:51.The session costs around $15, and it generates up to $130,000 per month.
:08:52. > :08:55.TRANSLATION: Our service is unique because we offer services for
:08:56. > :08:58.pregnant women, children and babies and it is not just a lifestyle
:08:59. > :09:06.choice. It is also about looking after the health of our babies and
:09:07. > :09:12.our children. Business here could double in the coming years, she
:09:13. > :09:16.thinks. Indonesia's households have an estimated $500 million a year to
:09:17. > :09:24.spend on the item, and that is growing. Baby massage has long been
:09:25. > :09:29.a tradition for Indonesia. We know a lot of masseuse specialists for
:09:30. > :09:34.babies. It is part of our local wisdom, actually. So you can say
:09:35. > :09:39.Baby Spa is taking it to the next level, lifestyle wise. And parents
:09:40. > :09:43.are happy to pay if they think it is worth it. TRANSLATION: I have
:09:44. > :09:47.brought Orlando here every week since he was six days old. I have
:09:48. > :09:51.never missed an appointment. I have seen an improvement in his motor
:09:52. > :09:55.skills and he doesn't cry a lot at night. In the most rewarding thing
:09:56. > :10:02.for me as I can see his weight keeps increasing. With business doing so
:10:03. > :10:12.well in Indonesia, it is set to open its first international branch later
:10:13. > :10:16.this year. I want to join those babies and have a massage, but I
:10:17. > :10:19.have to tell you about the markets, the Nikkei continuing to make those
:10:20. > :10:24.strong gains. It hasn't reached these levels is December 2015, and
:10:25. > :10:28.that is because of the strong US dollar helping exporters, all of
:10:29. > :10:32.that because of Wall Street's gains. That is it for this edition of Asia
:10:33. > :10:39.Business Report. Thank you for watching.
:10:40. > :10:43.The top stories this hour: President Trump's optimistic speech