13/03/2017 Asia Business Report

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.