:00:00. > :00:00.the UK will be prepared if it has to leave
:00:00. > :00:10.Now on BBC News all the latest business news live from Singapore.
:00:11. > :00:16.With the president forced out of office, what challenges lie ahead
:00:17. > :00:21.for the South Korean economy? And how the secrets of how to succeed in
:00:22. > :00:31.business could lie in a bit of horseplay.
:00:32. > :00:34.Hello and welcome to this Monday edition of Asia Business Report, I'm
:00:35. > :00:37.Sharanjit Leyl. Within the next two months South Korea will have a new
:00:38. > :00:43.president and that President will have a raft of economic challenges
:00:44. > :00:47.to deal with, the worsening of relations with China over a missile
:00:48. > :00:50.defence system is a big worry and what will candidates for the top job
:00:51. > :00:55.have to say about giant conglomerates like Samsung, so tied
:00:56. > :00:58.up in the corruption scandal that brought down Park Geun-hye? The
:00:59. > :01:02.disgraced leader left the presidential house on Sunday, two
:01:03. > :01:06.days after a court dismissed her of a corruption scandal. What will the
:01:07. > :01:10.next couple of months looked like for South Korea politically and
:01:11. > :01:12.economically? Here's the view our analyst.
:01:13. > :01:18.There's a lot of moving parts at the moment, the candidates, the leading
:01:19. > :01:23.candidates for the election, they have said they will hold that by the
:01:24. > :01:30.ninth of May, that's a positive outcome straightaway from the
:01:31. > :01:35.Electoral Commission. The leading candidate, Mr Moon, he is very much
:01:36. > :01:39.a reformer, so he is very much about appeasing North Korea and also
:01:40. > :01:43.actually taking a close look between these conglomerates and their cosy
:01:44. > :01:47.Wallacia ships with the government. He's quite a reformist. So a role I
:01:48. > :01:51.guess you could say it's positive for South Korea in the bigger
:01:52. > :01:56.picture. In terms of the Korean won, where is it headed, there are
:01:57. > :02:00.concerns they might be labelled a currency manipulator by the
:02:01. > :02:08.Americans. This is the thing, nobody is pricing into Asia this year so
:02:09. > :02:11.far, I think that the secretary would be ready by early April with
:02:12. > :02:14.regards to labelling or not labelling countries currency
:02:15. > :02:18.manipulators. If China is in that list then South Korea will either be
:02:19. > :02:22.number two or three on the list in all honesty. This is something that
:02:23. > :02:26.could impact on the won later on in the year. Definitely the trajectory
:02:27. > :02:30.of US interest rates with regards to the Federal Reserve will also have
:02:31. > :02:34.its impact as well. I would expect to see the won gradually weakening
:02:35. > :02:39.over the next couple of months. Very briefly, you talk about the
:02:40. > :02:44.potential front runners, the likes of Mr Moon and others, how will that
:02:45. > :02:46.impact the cosy relationship we are seeing with the South Korean
:02:47. > :02:51.government and the huge conglomerates? The head of Samsung
:02:52. > :02:56.is actually on trial now, being involved with the ex-president Park
:02:57. > :03:01.with corruption charges. That will lay down a marker for the behaviour
:03:02. > :03:06.going forward but definitely he is a very strong reform agenda person
:03:07. > :03:09.with regards to relations with the companies. The proof is in the
:03:10. > :03:12.putting, it could be easier said than done.
:03:13. > :03:16.Jeffrey Hayley. In other business news, King Salman of Saudi Arabia
:03:17. > :03:20.has arrived in Tokyo at the start of the first visit to Japan by a Saudi
:03:21. > :03:25.monarch for nearly 50 years. Japan hopes to use the visit to broaden
:03:26. > :03:29.its relations with Saudi Arabia and help the Kingdom's effort to
:03:30. > :03:34.diversify its heavily oil dependent economy. Banking giant HSBC has
:03:35. > :03:40.appointed Mark Tucker, the current CEO of Asian insurer AIA is group
:03:41. > :03:44.chairman. He will take over on the first of October, succeeding Douglas
:03:45. > :03:50.Flint, who had been in the role since 2010. He was there for seven
:03:51. > :03:55.years and he oversaw the insurer's expansion in Asia. HSBC is the
:03:56. > :04:00.European biggest bank but the bulk of profits are generated in Asia.
:04:01. > :04:05.Iceland will lift capital controls on its citizens' businesses and
:04:06. > :04:09.pensions funds from Tuesday. Capital controls like restrictions on money
:04:10. > :04:12.flowing out were imposed after Iceland's three biggest banks
:04:13. > :04:17.collapsed in 2008. The government now thinks the economy has recovered
:04:18. > :04:21.sufficiently to end those controls. For a look ahead at what's coming up
:04:22. > :04:24.over the next two days, we will start with Toshiba and they are due
:04:25. > :04:30.to publish their delayed earnings results from April to December on
:04:31. > :04:34.Tuesday. This was originally June in February. Next up we have the US Fed
:04:35. > :04:37.they are exacted to make their decision on interest rates on
:04:38. > :04:40.Wednesday, and that will be Thursday morning in Asia with the prospects
:04:41. > :04:43.of a rate hike looking fairly likely.
:04:44. > :04:48.We have the US Secretary of State, Rex Tillerson, he is heading to Asia
:04:49. > :04:53.this week and he will be viewing traditional airlines in Tokyo and
:04:54. > :04:57.Seoul before going on to Beijing. And finally, China will take centre
:04:58. > :05:02.stage on Wednesday when the National People's Congress comes to a close.
:05:03. > :05:06.For a closer look at the week ahead, earlier I spoke with Paul from a
:05:07. > :05:10.bank and first asked what he was expecting.
:05:11. > :05:14.Expectations have shifted a little bit to the chance they will delay
:05:15. > :05:18.again. If they miss this earnings reporting released they could go
:05:19. > :05:24.another big business days. It looks like the most likely scenario, they
:05:25. > :05:29.have a roughly $6 billion hole to fill with Westinghouse. The problem
:05:30. > :05:32.is if they go Chapter 11 with Westinghouse it opens up other
:05:33. > :05:36.concerns with respect to loan guarantees in the US, performance
:05:37. > :05:40.guarantees with respect to some of their plants. Chapter 11 doesn't
:05:41. > :05:45.solve as many problems as you might think. There is a likelihood they
:05:46. > :05:49.will delay. Moving on US interest rates, will they go up as everyone
:05:50. > :05:55.thinks? Market has given them 100% of a chance, it is as closely priced
:05:56. > :06:00.in as I've seen for a long time. How much? They will go .25 basis points,
:06:01. > :06:04.they won't want to go more than that. Certainly the Federal Reserve
:06:05. > :06:08.have a delicate balancing act with rogue guards to the currency, they
:06:09. > :06:12.don't watch it as far as their mandate but given what's going on
:06:13. > :06:15.around the world they have to be aware of how currencies will affect
:06:16. > :06:22.things, especially in the region, with China. -- with regards to. Rex
:06:23. > :06:26.Tillerson in Asia, he is headed to China but then he is also going to
:06:27. > :06:30.visit traditional airlines in Japan and South Korea, what is he
:06:31. > :06:33.expecting? That's a good question, we haven't heard much from the State
:06:34. > :06:38.Department since Tillerson took over. If you're in Japan you expect
:06:39. > :06:42.a reconfirmation of the security arrangement, in South Korea you
:06:43. > :06:45.expect more than that in terms of dealing with North Korea and in
:06:46. > :06:51.China I'm hoping at least we don't get something from the currency
:06:52. > :06:55.side, which we could have with Manu chimp at the G20. There's things
:06:56. > :07:00.with the security in the region but also trade. It's a blank slate
:07:01. > :07:07.because we don't see Tillerson in many press conferences. China and
:07:08. > :07:13.the closing of the People's Congress, any surprises? The words
:07:14. > :07:19.that come out to me our stability and flexibility.
:07:20. > :07:23.Paul Burt and. It may sound like forcing around but some experts say
:07:24. > :07:29.these animals can teach us a thing or two about leading people. -- Paul
:07:30. > :07:33.Bertrand. Andrew Froggatt teaches key leaders ship skills to chief
:07:34. > :07:36.executives, coaches and managers by showing them the right way to deal
:07:37. > :07:38.with horses. The horse whisperer turned management trailer told us
:07:39. > :08:07.how. -- leadership. We set ourselves up as the boss, I'm
:08:08. > :08:12.the leader of the horse, the horses behind me and it is a matter of
:08:13. > :08:16.consistency. If I say once to the horse to come close and the next to
:08:17. > :08:20.stay back, some people are confused, he is going to be confused if I say
:08:21. > :08:22.that. Until it becomes more of a habit it is important to be pretty
:08:23. > :08:33.firm. I do a lot of problem-solving, a lot
:08:34. > :08:37.of racehorses, starting gates and things like that, big problems. One
:08:38. > :08:41.of the things we do is focus on those little things, personal space,
:08:42. > :08:45.boundaries, what they are allowed to do and what they can't do and if
:08:46. > :08:49.those things are clear than a lot of the bigger issues don't develop. All
:08:50. > :08:53.of the biggest people, sport people, business people, they do the little
:08:54. > :08:57.things really well. A lot of people these days get caught up in the
:08:58. > :09:02.bigger picture and where they're heading and the little things get
:09:03. > :09:06.lost and if the little things get out of hand then you're never going
:09:07. > :09:10.to get to the big pictures. We used to have 25 horses on the go,
:09:11. > :09:14.often we would only get 15 but if 15 were happy and ten weren't then that
:09:15. > :09:18.affects the environment and it is evident in big companies, the boss
:09:19. > :09:22.of 250 might know 50 and the other people don't get much of a look in.
:09:23. > :09:26.It's little things going around the office, hello, how are you, even for
:09:27. > :09:33.a minute, making people feel a part of things, it starts to bring people
:09:34. > :09:38.together. Praise is really big. I praise more
:09:39. > :09:41.than most people, I want to really build that strong Wallacia ship, I
:09:42. > :09:46.want people comfortable and want to work with me so I tend to praise all
:09:47. > :09:51.the time and when they have a bad day I tend to ignore them -- strong
:09:52. > :09:56.relationship. We talk a lot about that in office situations. Do we
:09:57. > :10:00.praise enough? Some might be lacking in confidence, a lot more praise
:10:01. > :10:04.needed to build them up and get them to try and do things other people
:10:05. > :10:09.won't do. Others won't need enough but it eventually comes down to
:10:10. > :10:16.knowing who your trying to lead. That was horse whisperer Andrew
:10:17. > :10:20.Froggatt with the Falco in the starring role. Looking at the
:10:21. > :10:25.markets, we can see the Nick Caitlin is currently flat, scaling up a bit,
:10:26. > :10:32.we saw a stronger yen. -- the Nikkei. Hang Seng shares up 1% on
:10:33. > :10:35.the news of the new CEO. That's it, thanks for watching.
:10:36. > :10:45.of South Korea, Park Geun-hye, has finally left her official
:10:46. > :10:48.residence saying the truth will emerge in time.