13/03/2017 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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the UK will be prepared if it has to leave


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


With the president forced out of office, what challenges lie ahead


for the South Korean economy? And how the secrets of how to succeed in


business could lie in a bit of horseplay.


Hello and welcome to this Monday edition of Asia Business Report, I'm


Sharanjit Leyl. Within the next two months South Korea will have a new


president and that President will have a raft of economic challenges


to deal with, the worsening of relations with China over a missile


defence system is a big worry and what will candidates for the top job


have to say about giant conglomerates like Samsung, so tied


up in the corruption scandal that brought down Park Geun-hye? The


disgraced leader left the presidential house on Sunday, two


days after a court dismissed her of a corruption scandal. What will the


next couple of months looked like for South Korea politically and


economically? Here's the view our analyst.


There's a lot of moving parts at the moment, the candidates, the leading


candidates for the election, they have said they will hold that by the


ninth of May, that's a positive outcome straightaway from the


Electoral Commission. The leading candidate, Mr Moon, he is very much


a reformer, so he is very much about appeasing North Korea and also


actually taking a close look between these conglomerates and their cosy


Wallacia ships with the government. He's quite a reformist. So a role I


guess you could say it's positive for South Korea in the bigger


picture. In terms of the Korean won, where is it headed, there are


concerns they might be labelled a currency manipulator by the


Americans. This is the thing, nobody is pricing into Asia this year so


far, I think that the secretary would be ready by early April with


regards to labelling or not labelling countries currency


manipulators. If China is in that list then South Korea will either be


number two or three on the list in all honesty. This is something that


could impact on the won later on in the year. Definitely the trajectory


of US interest rates with regards to the Federal Reserve will also have


its impact as well. I would expect to see the won gradually weakening


over the next couple of months. Very briefly, you talk about the


potential front runners, the likes of Mr Moon and others, how will that


impact the cosy relationship we are seeing with the South Korean


government and the huge conglomerates? The head of Samsung


is actually on trial now, being involved with the ex-president Park


with corruption charges. That will lay down a marker for the behaviour


going forward but definitely he is a very strong reform agenda person


with regards to relations with the companies. The proof is in the


putting, it could be easier said than done.


Jeffrey Hayley. In other business news, King Salman of Saudi Arabia


has arrived in Tokyo at the start of the first visit to Japan by a Saudi


monarch for nearly 50 years. Japan hopes to use the visit to broaden


its relations with Saudi Arabia and help the Kingdom's effort to


diversify its heavily oil dependent economy. Banking giant HSBC has


appointed Mark Tucker, the current CEO of Asian insurer AIA is group


chairman. He will take over on the first of October, succeeding Douglas


Flint, who had been in the role since 2010. He was there for seven


years and he oversaw the insurer's expansion in Asia. HSBC is the


European biggest bank but the bulk of profits are generated in Asia.


Iceland will lift capital controls on its citizens' businesses and


pensions funds from Tuesday. Capital controls like restrictions on money


flowing out were imposed after Iceland's three biggest banks


collapsed in 2008. The government now thinks the economy has recovered


sufficiently to end those controls. For a look ahead at what's coming up


over the next two days, we will start with Toshiba and they are due


to publish their delayed earnings results from April to December on


Tuesday. This was originally June in February. Next up we have the US Fed


they are exacted to make their decision on interest rates on


Wednesday, and that will be Thursday morning in Asia with the prospects


of a rate hike looking fairly likely.


We have the US Secretary of State, Rex Tillerson, he is heading to Asia


this week and he will be viewing traditional airlines in Tokyo and


Seoul before going on to Beijing. And finally, China will take centre


stage on Wednesday when the National People's Congress comes to a close.


For a closer look at the week ahead, earlier I spoke with Paul from a


bank and first asked what he was expecting.


Expectations have shifted a little bit to the chance they will delay


again. If they miss this earnings reporting released they could go


another big business days. It looks like the most likely scenario, they


have a roughly $6 billion hole to fill with Westinghouse. The problem


is if they go Chapter 11 with Westinghouse it opens up other


concerns with respect to loan guarantees in the US, performance


guarantees with respect to some of their plants. Chapter 11 doesn't


solve as many problems as you might think. There is a likelihood they


will delay. Moving on US interest rates, will they go up as everyone


thinks? Market has given them 100% of a chance, it is as closely priced


in as I've seen for a long time. How much? They will go .25 basis points,


they won't want to go more than that. Certainly the Federal Reserve


have a delicate balancing act with rogue guards to the currency, they


don't watch it as far as their mandate but given what's going on


around the world they have to be aware of how currencies will affect


things, especially in the region, with China. -- with regards to. Rex


Tillerson in Asia, he is headed to China but then he is also going to


visit traditional airlines in Japan and South Korea, what is he


expecting? That's a good question, we haven't heard much from the State


Department since Tillerson took over. If you're in Japan you expect


a reconfirmation of the security arrangement, in South Korea you


expect more than that in terms of dealing with North Korea and in


China I'm hoping at least we don't get something from the currency


side, which we could have with Manu chimp at the G20. There's things


with the security in the region but also trade. It's a blank slate


because we don't see Tillerson in many press conferences. China and


the closing of the People's Congress, any surprises? The words


that come out to me our stability and flexibility.


Paul Burt and. It may sound like forcing around but some experts say


these animals can teach us a thing or two about leading people. -- Paul


Bertrand. Andrew Froggatt teaches key leaders ship skills to chief


executives, coaches and managers by showing them the right way to deal


with horses. The horse whisperer turned management trailer told us


how. -- leadership. We set ourselves up as the boss, I'm


the leader of the horse, the horses behind me and it is a matter of


consistency. If I say once to the horse to come close and the next to


stay back, some people are confused, he is going to be confused if I say


that. Until it becomes more of a habit it is important to be pretty


firm. I do a lot of problem-solving, a lot


of racehorses, starting gates and things like that, big problems. One


of the things we do is focus on those little things, personal space,


boundaries, what they are allowed to do and what they can't do and if


those things are clear than a lot of the bigger issues don't develop. All


of the biggest people, sport people, business people, they do the little


things really well. A lot of people these days get caught up in the


bigger picture and where they're heading and the little things get


lost and if the little things get out of hand then you're never going


to get to the big pictures. We used to have 25 horses on the go,


often we would only get 15 but if 15 were happy and ten weren't then that


affects the environment and it is evident in big companies, the boss


of 250 might know 50 and the other people don't get much of a look in.


It's little things going around the office, hello, how are you, even for


a minute, making people feel a part of things, it starts to bring people


together. Praise is really big. I praise more


than most people, I want to really build that strong Wallacia ship, I


want people comfortable and want to work with me so I tend to praise all


the time and when they have a bad day I tend to ignore them -- strong


relationship. We talk a lot about that in office situations. Do we


praise enough? Some might be lacking in confidence, a lot more praise


needed to build them up and get them to try and do things other people


won't do. Others won't need enough but it eventually comes down to


knowing who your trying to lead. That was horse whisperer Andrew


Froggatt with the Falco in the starring role. Looking at the


markets, we can see the Nick Caitlin is currently flat, scaling up a bit,


we saw a stronger yen. -- the Nikkei. Hang Seng shares up 1% on


the news of the new CEO. That's it, thanks for watching.


of South Korea, Park Geun-hye, has finally left her official


residence saying the truth will emerge in time.