Browse content similar to 22/03/2017. Check below for episodes and series from the same categories and more!
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Political figures have paid tribute to Martin McGuinness, | :00:00. | :00:07. | |
the former IRA commander who played a key role | :00:08. | :00:09. | |
in the Northern Ireland peace process. | :00:10. | :00:14. | |
Asian stock markets fall after Wall Street had its worst trading day | :00:15. | :00:22. | |
this year. A steady result for New Zealand dairy giant Viterra. We will | :00:23. | :00:28. | |
hear what their chief executive has to say. -- Fonterra. Good morning | :00:29. | :00:38. | |
Asia, hello world. It is Wednesday. Great to have you with us on Asia | :00:39. | :00:46. | |
Business Report. Rico Hizon. Stocks are retreating following US stocks | :00:47. | :00:55. | |
lowering today. Here is what they are doing. The Nykea is down by 332 | :00:56. | :01:02. | |
points. And the All Ordinaries is giving up 75 points, that is 1.3%. | :01:03. | :01:10. | |
US markets had the worst session of 2017. -- Nikkei. It is the first | :01:11. | :01:15. | |
decline of at least 1% since October last year. Investors are nervous | :01:16. | :01:22. | |
that Donald Trump will not lower taxes and push through with the | :01:23. | :01:27. | |
socket layers. I asked market strategist Mike McCarthy if jitters | :01:28. | :01:31. | |
in America would further in that regional market. The market was | :01:32. | :01:35. | |
ready set up a bit of a sell-off. We are looking at stretched valuations | :01:36. | :01:39. | |
in the US and a maximum amount of optimism about the new | :01:40. | :01:41. | |
administration's ability to similar the economy. That means we are | :01:42. | :01:46. | |
seeing good support to equities, and here in the Asia-Pacific region. So | :01:47. | :01:50. | |
although in valuation terms, local embassies and share markets are | :01:51. | :01:53. | |
looking healthier than the US, if we get a short-term downdraught in US | :01:54. | :01:58. | |
shares, that is likely to drag us down in the short-term. Which | :01:59. | :02:01. | |
particular markets are healthy and Asia? In particular in valuation | :02:02. | :02:06. | |
terms of the Hang Seng index looks very strong. We are also seeing | :02:07. | :02:11. | |
strength across markets like India and Indonesia. And those highly | :02:12. | :02:14. | |
engaged in trade with China. So overall, the outlook is positive. | :02:15. | :02:19. | |
Japan possibly the exception, they are. But how concerned are Asian | :02:20. | :02:27. | |
investors now that the Fed could still raise the cost of borrowing | :02:28. | :02:31. | |
and maybe once or twice before the end of the year and this economic | :02:32. | :02:43. | |
programme protectionism? --. As always, people can treat these in | :02:44. | :02:51. | |
different ways. They can respond to be signalled that the reason rates | :02:52. | :02:55. | |
are going higher is because the economy is improving. So what are | :02:56. | :02:58. | |
you telling your clients right now? Given the Asian market landscape, | :02:59. | :03:05. | |
how should they respond? For a start, volatility is very low. That | :03:06. | :03:09. | |
meant option prices are cheap. Investors are taking on one-sided | :03:10. | :03:13. | |
risk profiles using options. Others are taking a daily to the fact that | :03:14. | :03:16. | |
markets are very much about picking the right stocks at the moment. I | :03:17. | :03:20. | |
like in key, high-quality stocks, and investing in those, regardless | :03:21. | :03:24. | |
of their outlook in the country's index. What about Mr Trump following | :03:25. | :03:31. | |
through on his threat to eventually brand China as a currency | :03:32. | :03:39. | |
manipulator? Udinese will ever materialise? It is one of the Keath | :03:40. | :03:44. | |
is that Asian investors? It is a concern. -- key fears. Behind closed | :03:45. | :03:48. | |
doors, there is a clear message being delivered to Donald Trump that | :03:49. | :03:52. | |
when your own Federal reserve has pumped more than $3 trillion into | :03:53. | :03:57. | |
the currency system, to label anyone else as a currency manipulate is | :03:58. | :04:01. | |
fraught. This could hurt not only this region but also the US economy. | :04:02. | :04:05. | |
Call ahead might prevail when it comes to the heads up on this issue. | :04:06. | :04:16. | |
-- cooler heads. New Zealand dairy giant Fonterra said its net | :04:17. | :04:23. | |
profitability after tax rose. This is a steady result for the world's | :04:24. | :04:27. | |
largest dairy exporter. But its high-value products like butter and | :04:28. | :04:31. | |
yoghurt have delivered strong returns. The company has also shown | :04:32. | :04:36. | |
strong growth in the Chinese market. Earlier, I spoke to Fonterra's chief | :04:37. | :04:41. | |
executive and asked if it would be a tough year for the company's | :04:42. | :04:45. | |
shareholders. No, it is going to be a strong year, because that is all | :04:46. | :04:53. | |
on the back of 54% higher milk prices. So the 54% higher milk | :04:54. | :05:00. | |
prices are at translated author a cost of goods sold. So we are | :05:01. | :05:04. | |
delivering more net profits. In that sense, when you look at cash cows to | :05:05. | :05:08. | |
our farmers, this is a significant step up from the last two years. For | :05:09. | :05:13. | |
our Cheryl does, it is good news. Why did you then downgrade your | :05:14. | :05:17. | |
full-year earnings forecast? First of all, like last year, around this | :05:18. | :05:23. | |
time, we decided to not focused too much on the earnings, but to go to | :05:24. | :05:29. | |
dividends. Last year, we announced our half-year results that we would | :05:30. | :05:34. | |
get 20 cents dividend half year, and we forecasted ten plus ten. So 40 | :05:35. | :05:39. | |
cents. Now we are forecasting 40 cents. So in that sense, it is a | :05:40. | :05:43. | |
similar result in pay-out, but your question as to why the bracket has | :05:44. | :05:49. | |
shifted, that is because we had a very bought Spring Hill with very | :05:50. | :05:53. | |
poor grass growth, so a shortage of melt. Is still realistic to have | :05:54. | :05:59. | |
this projected milk pay-out of $6 per kilogram? -- a very poor spring, | :06:00. | :06:06. | |
here. It is the best possible market for us. Your partner, they have been | :06:07. | :06:18. | |
bleeding red. Losses have doubled in 2016. You plan to drop them all | :06:19. | :06:23. | |
continue this partnership? This is a strategic partnership in China. We | :06:24. | :06:27. | |
go through a new set of regulations. The people who are there, they | :06:28. | :06:32. | |
suffer at the moment. All the strategic players are suffering. The | :06:33. | :06:36. | |
people who are going to leave China because of regulation, they are then | :06:37. | :06:45. | |
benefiting. This is what we want for our product. This is a highly | :06:46. | :06:50. | |
private business for us in China. It is our largest market. Fonterra's | :06:51. | :06:57. | |
chief executive there. In other news:, Uber has promised to become a | :06:58. | :07:04. | |
more humane company. This comes amid a wave of ugly developments, at | :07:05. | :07:11. | |
including reports of sexual harassment and video over a | :07:12. | :07:14. | |
confrontation between the CEO and a disgruntled driver. Tencent is | :07:15. | :07:24. | |
hitting its results today. These are expected a 40% increase to $30 | :07:25. | :07:31. | |
billion. It is China's biggest social media company. It has about | :07:32. | :07:39. | |
850 users per month. It also has a problem of games business. But how | :07:40. | :07:43. | |
much longer can it remain leader of the pack? -- it also has a | :07:44. | :07:49. | |
profitable games business. I asked if there were any areas where the | :07:50. | :07:53. | |
company might struggle. Overall, I think for Tencent in the gaming | :07:54. | :07:56. | |
industry, they are doing well. I think the only thing that might be | :07:57. | :07:59. | |
concerning is when Tencent started actually expand to other online - | :08:00. | :08:07. | |
off-line business. This is a very competitive business, especially in | :08:08. | :08:11. | |
China. The gunmen have placed in lots of investment and there | :08:12. | :08:14. | |
competing with other companies that at the very beginning thou not | :08:15. | :08:17. | |
looking for profitability. So that probably is the only challenge for | :08:18. | :08:23. | |
Tencent at this moment. But by looking at the gaming industry as | :08:24. | :08:28. | |
well as what they are looking out for the video and the music | :08:29. | :08:31. | |
industry, they are actually do very well. But isn't the online gaming | :08:32. | :08:37. | |
space getting too crowded in China? I actually think that there is still | :08:38. | :08:42. | |
a lot of room to grow. I think a particular when you move to the | :08:43. | :08:45. | |
mobile gaming industry, because you need to remember that there are a | :08:46. | :08:49. | |
lot of people in China that actually own a smart phone. You are talking | :08:50. | :08:54. | |
about 800 million people that have a smart phone. Gaming is actually one | :08:55. | :08:58. | |
of the major entertainment for a lot of the people who live in the | :08:59. | :09:03. | |
cities. Even now going into the rural areas. I think there is still | :09:04. | :09:07. | |
a lot of room to grow, especially for the sport area, as well. So the | :09:08. | :09:12. | |
thing is for Tencent, because they are already dominating the market, | :09:13. | :09:15. | |
it is difficult for the gaming industry, for the next three to the | :09:16. | :09:27. | |
next 3000 developers. It is challenging. They have 850 million | :09:28. | :09:35. | |
users. Gisin at saturation point? There are still in use is coming to | :09:36. | :09:39. | |
the portfolio. -- isn't that a saturation. There is any one | :09:40. | :09:45. | |
platform for Tencent. But now they have a number platform, which is a | :09:46. | :09:55. | |
very good complement to each other. Their new product, QQ, is aimed at | :09:56. | :10:06. | |
the teenage generation. That is confident current platform. Let's | :10:07. | :10:12. | |
and a quick look now before we go at the financial markets. As you can | :10:13. | :10:19. | |
see, all red arrows. The Nykea, the Hang Seng, and the all Ord is all | :10:20. | :10:24. | |
down. This is after the US sought the worst slump yet this year. -- | :10:25. | :10:32. | |
saw. -- Nikkei. Norcia again pride in early on Thursday. I'm Rico | :10:33. | :10:34. | |
Hizon. | :10:35. | :10:39. |