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After months of tough talk, President Trump now says he will not | :00:15. | :00:23. | |
label China currency manipulator. And we are tracking this food | :00:24. | :00:27. | |
delivery service on the streets of San Francisco. Welcome to Asia | :00:28. | :00:40. | |
Business Report, I am Sharanjit Leyl. US President Donald Trump says | :00:41. | :00:44. | |
his administration will not label China currency manipulator. It is a | :00:45. | :00:48. | |
stunning reversal from one of his key election campaign promises. Mr | :00:49. | :00:51. | |
Trump told the Wall Street Journal that he changed his mind because | :00:52. | :00:55. | |
China has not been manipulating its currency recently, and that doing so | :00:56. | :01:01. | |
jeopardise talks with Beijing about how to deal with North Korea. | :01:02. | :01:05. | |
Earlier I spoke to an economist about whether the US president was | :01:06. | :01:11. | |
softening his trade stance on China. In the past, China has arguably used | :01:12. | :01:15. | |
currency to push its trade policy. They have moved away from that over | :01:16. | :01:19. | |
the past year or so, and I think although Jock, Donald Trump is the | :01:20. | :01:23. | |
candidate a year ago was very vibrant on this point, that is not | :01:24. | :01:27. | |
currently today's situation. Again, he is not looking for a fight but he | :01:28. | :01:32. | |
will push them on market access on things like tech, financial | :01:33. | :01:36. | |
services, steel, autos, that is where you will see a very forceful | :01:37. | :01:40. | |
Donald Trump. The US Treasury is due to release a report later this week | :01:41. | :01:44. | |
on the currency practices of major trading partners. This is how | :01:45. | :01:48. | |
currencies are doing this morning. We are seeing a strong yen having an | :01:49. | :01:52. | |
impact on the market, the Japanese market, the Nikkei already lower. We | :01:53. | :01:58. | |
have already also heard President Trump staying overnight that the US | :01:59. | :02:02. | |
dollar was too strong, and that he would prefer it if the US Federal | :02:03. | :02:07. | |
Reserve would keep interest rates low. Meanwhile, the World Trade | :02:08. | :02:10. | |
Organization says local trade is expected to pick up slightly this | :02:11. | :02:15. | |
year. The WTO says the value of goods shipped around the world will | :02:16. | :02:20. | |
increase by 2.4% this year, and potentially grow even faster in the | :02:21. | :02:24. | |
next two years. This is up from a very weak 1.3% expansion in 2016, | :02:25. | :02:33. | |
but the trade body also warned of potential risks to its outlook on | :02:34. | :02:37. | |
trade, which include the danger of protectionist government policies in | :02:38. | :02:41. | |
response to job losses. Our correspondent has more on the WTO's | :02:42. | :02:45. | |
numbers. They crept up the numbers a bit but it means we are on the right | :02:46. | :02:50. | |
trend. And what I read from that is two question marks over the trade | :02:51. | :02:54. | |
environment over the last six months or so, exit and the Trump election | :02:55. | :02:58. | |
and the Trump Presidency, and because both of them embody or at | :02:59. | :03:03. | |
least tilt towards some of this protectionist instinct. What we have | :03:04. | :03:07. | |
seen is very good stewardship in London and good stewardship on trade | :03:08. | :03:12. | |
in DC, at least in so far as saying that no one is spoiling for a trade | :03:13. | :03:16. | |
fight. Donald Trump is clearly going to be more forceful on some trade | :03:17. | :03:19. | |
issues than his predecessor but he had a good meeting with Xi Jinping | :03:20. | :03:25. | |
and is not looking for a fistfight. It is interesting you mentioned | :03:26. | :03:30. | |
makes it and some of the talk which Donald Trump has done throughout his | :03:31. | :03:33. | |
campaign and residency, but he hasn't really acted on it unless you | :03:34. | :03:36. | |
include getting rid of the transpacific partnership, which he | :03:37. | :03:39. | |
has done. So are we braced for an even more dire outlook once these | :03:40. | :03:43. | |
real consequences are felt? Well, I think we have seen some signals from | :03:44. | :03:47. | |
the Trump Administration that he will be more forceful on some of | :03:48. | :03:51. | |
these enforcement provisions, anti-dumping and some others, | :03:52. | :03:54. | |
putting top trade lawyers and those spots. By the way there is not | :03:55. | :03:58. | |
necessarily anything wrong with that. If that is all you do on trade | :03:59. | :04:02. | |
you are limiting yourself. In other words, that is the bad cop side of | :04:03. | :04:07. | |
things, you also need the good cop. He signalled with racks of a free | :04:08. | :04:10. | |
trade agreement with the UK might be feasible. Abe's visit, he was | :04:11. | :04:15. | |
talking about the possibility of a free trade agreement with Japan. All | :04:16. | :04:19. | |
we know is not on the table is the TPP, but what is on the table, we we | :04:20. | :04:29. | |
will have to wait a few more months. Samsung's replacement for Apple Siri | :04:30. | :04:37. | |
has been delayed. The Galaxy as eight and as eight plus will now | :04:38. | :04:41. | |
ship without English voice controlled -- S8 and S8 Plus. Hong | :04:42. | :04:52. | |
Kong's flagship carrier Cathay Pacific has announced a change of | :04:53. | :04:58. | |
leader. The current chief executive will be replaced by the chief | :04:59. | :05:04. | |
operating officer, Rupert Hogg. A few weeks ago the airline reported a | :05:05. | :05:10. | |
loss of $74 million for last year, the first annual loss since 2008. | :05:11. | :05:15. | |
Earlier I spoke with an industry analyst and asked why Cathay Pacific | :05:16. | :05:21. | |
is struggling. There are a few key changes which have happened to | :05:22. | :05:25. | |
Cathay. You can say that their greatest advantage, being close to | :05:26. | :05:29. | |
China, which drove their traffic throughout their history, has become | :05:30. | :05:32. | |
a major disadvantage. You can see the Chinese carrier is adding | :05:33. | :05:36. | |
immense capacity so trainees passengers have options to bypass | :05:37. | :05:40. | |
the hub in Hong Kong and fly direct from major Chinese cities and in | :05:41. | :05:43. | |
addition foreigners who might be travelling who used to fly with | :05:44. | :05:47. | |
Cathay and change at the Hong Kong hub can now fly direct. Is this all | :05:48. | :05:52. | |
symptomatically something all premium airlines are having to deal | :05:53. | :05:55. | |
with, or is it specifically a problem for Cathay Pacific? Varies | :05:56. | :05:59. | |
across the industry how people are affected. Cathay Pacific is | :06:00. | :06:04. | |
extremely exposed to heavy and intense Chinese competition. | :06:05. | :06:08. | |
Singapore airlines is also exposed, to a lesser extent. They have a | :06:09. | :06:12. | |
geographic advantage in their distance from China, but they are | :06:13. | :06:15. | |
struggling with the low-cost carriers in the region and | :06:16. | :06:17. | |
continuing competition from the traditional rivals like Geruda, | :06:18. | :06:25. | |
Malaysia airlines and so forth. They have undertaken the biggest review | :06:26. | :06:29. | |
of their business in two decades, and this change of leadership as | :06:30. | :06:32. | |
part of that. Are they optimistic that this will change things and | :06:33. | :06:37. | |
turn things around? -- Garuda. The people leading Cathay Pacific, I | :06:38. | :06:40. | |
believe, a very cognisant and aware of the issues they are facing and | :06:41. | :06:44. | |
they have a sense of what needs to be done. They recently announced | :06:45. | :06:48. | |
they will be cutting 30% of the costs at their headquarters, that is | :06:49. | :06:53. | |
an important first step and the new 777 planes will have an additional | :06:54. | :06:57. | |
seat per row in economy class, so it will be a bit tighter when you are | :06:58. | :07:01. | |
sitting in economy, but it will drive their costs down and hopefully | :07:02. | :07:05. | |
bring some of that revenue back. Italian luxury brand Prada reported | :07:06. | :07:12. | |
a 16% fall in profit for 2016. Many luxury brands have struggled in Asia | :07:13. | :07:17. | |
over the last 16 years because of a corruption scandal in China and | :07:18. | :07:21. | |
stock markets but for the rivals business is picking up -- volatile | :07:22. | :07:26. | |
stock market. Overall it was quite a disappointing year for product, in | :07:27. | :07:32. | |
fact it was its worst annual profit since 2011, when it first listed in | :07:33. | :07:36. | |
Hong Kong. Analysts at Thomson Reuters were looking for net income | :07:37. | :07:41. | |
around 300 million euros and instead it came in at around 20 million | :07:42. | :07:46. | |
euros less than that. It suggests the anti-corruption crackdown in | :07:47. | :07:51. | |
China hasn't fully been resolved by a Prada. It was in stark contrast to | :07:52. | :07:55. | |
its larger rival which just a few days ago posted a very strong first | :07:56. | :08:03. | |
three months of the year. So in contrast to that, Prada said it is | :08:04. | :08:10. | |
seeing green shoots of recovery, to borrow a phrase we were using during | :08:11. | :08:13. | |
the financial crisis. In its third quarter, mainland China bottomed out | :08:14. | :08:19. | |
and in the first three months of the year mainland China was growing in | :08:20. | :08:22. | |
terms of revenue in the double digits. So Prada, that is what is to | :08:23. | :08:29. | |
appease or tell its investors, that things are turning around, | :08:30. | :08:34. | |
especially in mainland China, and it hopes to maintain that momentum. | :08:35. | :08:37. | |
Feeling a bit hungry but not willing to step out of the house to get some | :08:38. | :08:41. | |
food? One company in San Francisco may have the answer for you, and it | :08:42. | :08:44. | |
involves robots. We think the best approach for this | :08:45. | :09:16. | |
kind of system is one where there is constant human oversight of the | :09:17. | :09:19. | |
robots. The architecture we have chosen is one where a person is | :09:20. | :09:23. | |
capable of controlling one or two robots, and overtime we are building | :09:24. | :09:28. | |
more and more autonomous operations, so that there is one person in | :09:29. | :09:32. | |
controlling five and then ten and so on. It is effectively multiplying | :09:33. | :09:35. | |
the possibility of a person to do more work over the set of robots | :09:36. | :09:43. | |
that they are overseen. -- overseeing. | :09:44. | :10:23. | |
Deliveries with a difference. That is it for this edition of Asia | :10:24. | :10:28. | |
Business Report. Thank you for watching. | :10:29. | :10:39. | |
The top stories this hour: After hours of talks in Moscow, | :10:40. | :10:42. | |
Russia and America fail to resolve their differences over | :10:43. | :10:46. |