27/03/2017 Asia Business Report


Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.

Similar Content

Browse content similar to 27/03/2017. Check below for episodes and series from the same categories and more!



Carrie Lam will become Hong Kong's new chief executive. But what the


new leadership mean for the economy? And what to look for in buying a


piece of art. We get a few tips from the experts.


Hello and welcome to Asia Business Report. I'm Sharanjit Leyl. A 1200


strong committee dominated by pro- Beijing executives have elected


Carrie Lam as the new Hong Kong chief executive. She has promised to


heal wounds over Beijing's industry. With a slowing economy in mainland


China, she could be facing economic headwinds. I spoke with research at


Peter Church at that the issues that will be at the top of her agenda. In


Hong Kong, the affordability question on housing has been a huge


economic and political hot button in Hong Kong. And if you look at it


rationally, it is really a supply it generated a problem. Hong Kong has


been producing less than half of the long-term average supply of housing


in the last decade. So there is a massive shortfall of housing that


has built-up. You put that in context of very low interest rates,


and you can see, you don't have to be an economics Ph.D., to understand


that prices will go up. And besides property, there are other issues.


There are a lot of concerns about whether Hong Kong, which has always


been seen as the gateway to China, can remain relevant as a financial


hub. Especially as there are many Chinese cities perfectly capable of


playing that role as gateway to China. So how will they remain


relevant? There are a lot of areas. Hong Kong, as you say, has always


been the conduit of Finance and financial services into and out of


China. That role should continue. But probably what needs to be done


is more of a focus on areas such as wealth management and harnessing the


flows of capital out of China and into the rest of the world through


what is in fact a rule of law economy that can't really be


replicated in China. I think we can also expect to see the government


pushing for improvements in legislation, which allows Hong Kong


to participate in change issues like the one built one road and the Asian


investment banks. So those areas where we expect to see the


government puts focus that was Peter Church speaking to me earlier.


Shares in Toshiba are higher on news that Westinghouse could file for


bankruptcy protection as early as Tuesday and is seeking support from


Korean alleged power. Toshiba's gains come against a backdrop of a


broader market downturn this morning. The fund now has 70 member


countries, with 13 joining just last week. Including Canada. The former


British minister Danny Alexander told me the international make-up of


the 80 I ID means it is not possible for the Chinese to promote their own


interest. Above others. -- AIIB. People can actually see now that


this is an institution that has very high standards of international


governments. All members are involved in our decisions. We have a


well functioning board of directions. John has one seat


amongst well. Many other countries are represented on that board as


well. -- China has one seat amongst 12. Most important, the standards we


set for our projects, in terms of environment will impact and how


social issues like population resettlement are dealt with. The


access of countries to access these issues and affect how we deal with


them in funding. -- AIIB. There has been a lot of focus on the Chinese


one belt, one road process, which is a push to develop like the silk


road. Those are projects that you are funded. It seemed to suggest,


though, that this is closely and lined to China's international


interest. If you look at the projects that we find, so we


wondered that a slum upgrade project in Indonesia. We funded a new


gas-fired power station in Myanmar, upgrading hydroelectric power


schemes in Pakistan. With these sorts of projects all over the Asia


region. Some of those things will overlap with the one belt, one road


policy. Many are different from it. At the end, the bank meets its own


decisions, about what are the appropriate things to find. There


are important policies of many different governments that are


considered. All the member countries have a role in that. So we must make


sure that in each country we are working according to the direction


that the government has set and the international agreements that they


have signed up to. And that was Danny Alexander speaking to me.


History will be made in Europe this week as a new entrant into the


mobile market appears. Britain will trigger Article 50 on Wednesday.


This will officially begin the process of breaking away from the


European Union. Also on that same day, you have Samsung, they are


scheduled to release the Galaxy S8, which was the U replacement for the


Galaxy Note 7 that was recalled for exploding batteries. I spoke earlier


with Andrew Staples and asked if the Brexit honours will have an


immediate effect. Just in the process, this is something we have


been waiting for for the last nine months. This will trigger a two year


period of negotiation for UK to leave the EU. Here in Asia, I think


the impact will be minimal. Certainly in the short term, there


could be some volatility around the pound sterling. But that has been


priced into the market over the last months and weeks. Longer term, there


will be continuing questions over the UK's attractiveness as an


investment destination. Of course, a lot of Asian investment goes to the


UK, particularly thinking about the Japanese auto sector and so on. But


we have seen positive news from people like Toyota and Nissan who


have confirmed their commitment to the country. There will be


uncertainty over what kind of relationship the UK will have with


the European Union following this two year period. You have mentioned


Toyota there, at Nissan, and Toyota said they would invest in Britain,


but they are warning that they need terror free access to the continent.


Is that something our businesses should be looking out for?


Absolutely. But that will not become clear any time soon. There is this


two year period of negotiation. There is scepticism as to whether we


will reach a deal in that time. If we don't, then we will revert to WTO


access to the EU. Which would not be preferential for people like Toyota.


And the other news of course is the S8, which comes after the exploding


Galaxy Note 7 is, and comes in a political crisis in which there are


factor boss has effectively been put in jail. Will this be everything


they hope for? Certainly hoping so. They need to pull something out of a


hat given the political situation in Korea and the difficulties that


Samsung have had over recent months, as well. Let's see how the market


response that, especially consumers. Nearly 80,000 people visited Asia's


biggest art fair in Hong Kong this weekend. The organisers of Art Basil


said sales were strong and tapped into a grey market in Asia for


high-end art. We asked to art experts for their tips on buying. --


Art Basel. The first thing I will tell a young collector is to take


your time. Don't rush into anything. Find a good dealer, a good adviser,


you can trust. Trust is very important. And then engage with


them. You should know the artist's basic background, such as where they


were educated or how they started. What is, how he developed to this


style. Then you make a combination of judgement. A work of art is not a


cheap thing to get involved with. And I will always tell them, by the


best quality. And if it doesn't hurt when you purchase it, don't buy it.


I encourage the young collector to buy artists more or less the same


age. The reason is I think after 30 years or 40 years, you will look


back and you will have grown at Canterbury to the others. I think


this is a wonderful and special memory for the collector. And that


was investing in art. Let's look at investing markets. Not great this


morning. You can see the Nick Cave and a stratum markets have opened


lower. -- Nikkei. That is it for Asia Business Report. Thank you for


watching. -- Australian. Welcome back. You're watching BBC


News. We bring you up with the


Download Subtitles