:00:00. > :00:07.Now on BBC News, all the latest business news with Rico Hizon live
:00:08. > :00:14.from Singapore. World Business Report.
:00:15. > :00:23.From Korea to Japan, security and trade are high on the agenda as US
:00:24. > :00:33.Vice President Mike Pence head to Tokyo. And we find out what sort of
:00:34. > :00:41.food the movers and shakers of Asia it for breakfast. -- eat. Good
:00:42. > :00:44.morning, Asia. Hello, world. It's a Tuesday. Welcome to another edition
:00:45. > :00:49.of Asia Business Report. I'm your host, Rico Hizon. Thank you for
:00:50. > :00:53.joining us. Fresh tensions between the US and North Korea, the US Vice
:00:54. > :01:00.President Mike Pence has warned Pyongyang that President Trump's
:01:01. > :01:07.result should not retested. North Korea remains defiant, telling the
:01:08. > :01:11.BBC they will continue. Not only security is at the top of the agenda
:01:12. > :01:18.when Mike Pence arrives in Japan today. The US will also want to talk
:01:19. > :01:22.trade, especially with agriculture and auto remaining key sticking
:01:23. > :01:25.points. Be Vice President will certainly bring up the fact that the
:01:26. > :01:31.United States would like to negotiate a bilateral agreement. --
:01:32. > :01:34.the. It will be their job to negotiate that agreement and get
:01:35. > :01:40.down to the specific points. It was very clear throughout the TPP
:01:41. > :01:44.negotiations what the most important issues us. I think that the United
:01:45. > :01:47.States, and frankly Japan and the Shinzo Abe administration, feel it
:01:48. > :01:53.needs to be addressed, to modernise and restructure the Japanese
:01:54. > :01:56.economy. The Donald Trump administration has repeatedly
:01:57. > :02:02.accused Japan of having nontariff barriers in the auto market with
:02:03. > :02:09.high import tariffs. It is frankly not want to get too concerned with
:02:10. > :02:14.one days. With China on a run rate of 25- 27 million units, the United
:02:15. > :02:19.States on a run rate to purchase hopefully 20 million cars, Japan is
:02:20. > :02:24.probably less than 5 million units. It is not a really important car
:02:25. > :02:27.market these days. I think agriculture is a very important
:02:28. > :02:34.market. The Japanese have truly superior agricultural production
:02:35. > :02:38.capabilities. And they need to extend those and start selling their
:02:39. > :02:43.agricultural products, in particular to their local member China, and
:02:44. > :02:46.free up the agricultural space. I think that will be a major focus of
:02:47. > :02:53.the talks. In Tokyo. United airlines has
:02:54. > :02:58.released their earnings. The Chief Executive is taking nothing for
:02:59. > :03:02.granted. He has once again apologise for the scandal over the forceful
:03:03. > :03:09.removal of a passenger from a flight last week. And these pictures of the
:03:10. > :03:13.doctor being dragged off and overbooked flights sparked a public
:03:14. > :03:21.relations disaster for the airline. But there are believes there will be
:03:22. > :03:28.no long-term impact on the bottom line. -- beliefs. This is a huge
:03:29. > :03:33.airline with a market cap of over 22 billion. Last night we saw shares
:03:34. > :03:39.cross over 2.5%, almost over 70 US dollars. It shows the financial
:03:40. > :03:44.state of affairs in United Airlines is still healthy. They will suffer
:03:45. > :03:48.greatly as far as the brand and reputation is concerned. That is
:03:49. > :03:53.damaged. But market conditions will remain healthy, I think. No
:03:54. > :03:59.reputational damage, or if not, very minimal, to United Airlines. But
:04:00. > :04:03.what about for the Asian travel and using United Airlines as a gateway
:04:04. > :04:10.to North America? We have a lot of legacy carriers. Singapore Airlines,
:04:11. > :04:15.Cathay Pacific, China airlines in the Middle East. They have a lot of
:04:16. > :04:24.airline options. They can fly next year on Singapore Airlines direct to
:04:25. > :04:30.the US. They can use Emirates, Qatar through Dubai and Doha. Otherwise
:04:31. > :04:33.they can use European carriers which are less abrasive, shall we say,
:04:34. > :04:40.than the North American airline. That being the case, they still have
:04:41. > :04:49.a lot of influence globally. Among the four of them, American, Delta,
:04:50. > :04:54.Continental, United, they control a lot of the marketplace. There will
:04:55. > :05:05.be relevance for Those. A public relations headache
:05:06. > :05:11.for the owner of Snapchat. They have seen sharers fall. They have faced
:05:12. > :05:14.criticism for comments made by the Chief Executive allegedly about not
:05:15. > :05:20.prioritise and growth in India and Spain because they were poor
:05:21. > :05:26.countries. The company is on track to close at its lowest level in a
:05:27. > :05:32.month, just weeks after the $4.4 billion sale, the hottest listing of
:05:33. > :05:35.a tech company in three years. Netflix reported better than
:05:36. > :05:41.expected quarterly numbers, but the on line video streaming giant has
:05:42. > :05:45.signed up fewer descriptions than it forecast, which could impact future
:05:46. > :05:50.earnings. -- subscriptions. Subscriptions. Growth in both the
:05:51. > :05:57.home market in the US and internationally has slowed down. Our
:05:58. > :06:00.technology correspondent says it is down to competition from rival
:06:01. > :06:07.streaming services. Many people suspected Netflix in the US and its
:06:08. > :06:13.subscribers would plateau. They posted very strong subscriber growth
:06:14. > :06:18.last on. That did not happen this quarter. That was concerning. They
:06:19. > :06:23.wanted over 5 million new ones worldwide. They just came under
:06:24. > :06:27.that. The company is not worried because one of the reasons they feel
:06:28. > :06:31.that is the case is because they pushed back of their major series,
:06:32. > :06:35.House of Cards, which is very popular. They deleted to later in
:06:36. > :06:41.the also another another programme over Halloween. -- delayed it. They
:06:42. > :06:45.say don't worry too much that these numbers are down because they will
:06:46. > :06:50.make up later in the year those numbers. Although they missed
:06:51. > :06:55.targets, some of that came from overseas. When I travel around Asia
:06:56. > :07:00.I see Netflix on public billboards and major publications. How
:07:01. > :07:07.important is Asia to Netflix? Asia is seen as a massive growth area for
:07:08. > :07:11.the company. They are spending $1 billion worldwide on marketing. A
:07:12. > :07:15.lot of that is going into Asia. One of the biggest challenges they have
:07:16. > :07:20.in the region is some of the original content that has been so
:07:21. > :07:24.successful in Western markets like the US and Europe, it does not trans
:07:25. > :07:29.late as well the again. -- translate. They are also having to
:07:30. > :07:34.make content specifically for that part of the world. Expect them to
:07:35. > :07:38.spend a lot of money in that region. Eventually it will repay them. But
:07:39. > :07:42.it will take some time to pick if they can crack at it will fix that
:07:43. > :07:51.subscription problem we are worried about. -- it. A parcel of land was
:07:52. > :07:58.bought in Mumbai and was developed into a satellite city and business
:07:59. > :08:03.up, a first for India at the time. Today, they are managing a group of
:08:04. > :08:09.companies. The family trust runs schools and hospitals across the
:08:10. > :08:18.city. They are one of India's India's WACA one this is a new
:08:19. > :08:27.series, Busy Breakfast. We caught up or a bite to
:08:28. > :08:41.I give a lot of emphasis to Breakfast. I spend some time on it.
:08:42. > :08:46.The major thing is also the fact I don't get much time to really have
:08:47. > :08:53.lunch. It is quite a busy day. What I read it in now? It is interesting.
:08:54. > :09:00.This is my Sunday special. -- what are we eating now? It is a mix of
:09:01. > :09:13.dahl and roti. It is different but traditional. How important is
:09:14. > :09:19.breakfast? I am a workaholic by nature. I spend 20% of my daily time
:09:20. > :09:26.on nonbusiness activities. When people say I need to go to the golf
:09:27. > :09:32.course to get a peace of mind, for me it is different. A to work on
:09:33. > :09:38.college and school hospital issues. -- I need to. That is my balance.
:09:39. > :09:45.Other people look at it as work. For me it is pleasure. So, Good eaters
:09:46. > :09:49.eat last. They think about the employees and the company. What is
:09:50. > :09:57.your philosophy? The philosophy of my company is very clear. A
:09:58. > :10:02.stakeholder has to be a beneficiary. It is not only about employees, it
:10:03. > :10:08.is about your investors, those who occupy your buildings. Of course you
:10:09. > :10:15.look at the bottomline. But you have to bring satisfaction to all of the
:10:16. > :10:22.stakeholders. A power breakfast with one of India's richest men. Men.
:10:23. > :10:36.The markets in Asia. A weaker yen. A strong dollar is a good thing
:10:37. > :10:38.according to the Secretary of State. Thank you for joining me. I am Rico
:10:39. > :10:45.Hizon. A member of North Korea's government
:10:46. > :10:46.told the