15/05/2017 Asia Business Report


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15/05/2017

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


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Now on BBC News all the latest business news live from Singapore.

:00:00.:00:16.

China's one belt one road for it kicked off in Beijing. Just how

:00:17.:00:28.

lofty are its Silk Road ambitions and can they be filled? More victims

:00:29.:00:35.

are expected of the cyber attack as they return to work after the

:00:36.:00:37.

weekend. Hello and welcome to Asia Business

:00:38.:00:45.

Report. Leaders from 28 nations are gathered in Beijing to bring China's

:00:46.:00:49.

grand plan to invest billions of dollars to improve its global trade

:00:50.:00:55.

links one step closer to reality. Called the one belt one road

:00:56.:01:00.

initiative, it was proposed in 2013 by President Xi Xin Ping. Its

:01:01.:01:07.

ambitions span over 60 countries and the President has pledged billions

:01:08.:01:12.

of dollars for the scheme. There are sceptics that say it is an expensive

:01:13.:01:16.

exercise to extend China's political and economic influence. We are

:01:17.:01:21.

joined by our Asian business correspondence in the studio. $124

:01:22.:01:27.

billion, no small number. Of course, this was an announcement that was

:01:28.:01:31.

made to all of the world leaders that were gathered to listen to

:01:32.:01:37.

President Xi. Why are the Chinese making such a big deal about this?

:01:38.:01:42.

In simple terms, this is China's beat coming out party and especially

:01:43.:01:46.

so for President Xi Jinping. He has basically pegged his credibility to

:01:47.:01:51.

this initiative. He is basically saying that this is a project of the

:01:52.:01:56.

century. But have looked at how fast this initiative is. If you can see

:01:57.:02:00.

on the Mac right now, the One Belt One Road plan, it goes through most

:02:01.:02:09.

of Asia, Africa and all the way up to Europe. -- on the map. This is

:02:10.:02:16.

Railways worth $1 trillion. Even more money being pumped in by the

:02:17.:02:21.

Chinese. The plan is that with this initiative, trade will flow from

:02:22.:02:25.

east to west and in theory from West back to East and that will help the

:02:26.:02:30.

economies around the world to grow. You mentioned it will go into the

:02:31.:02:35.

trillions of dollars, this huge project. All of the ports and

:02:36.:02:38.

railroads. The Chinese are paying a significant amount of that and what

:02:39.:02:42.

country to come on board. They are also wanting the private sector on

:02:43.:02:48.

board. Booval the money come from? Initially, it will be financed by

:02:49.:02:53.

China but they can't do it alone. -- where will the money come from. It

:02:54.:02:58.

is cognisant about the fact it can't afford it all alone. Local

:02:59.:03:01.

governments in particular are wondering whether they have the

:03:02.:03:04.

firepower to invest because otherwise they won't need China's

:03:05.:03:08.

help. The investment bank has said trillions of dollars is needed in

:03:09.:03:15.

Asia over the next few years and China's One Belt One Road goes some

:03:16.:03:18.

way to solving that problem but how our local governments going to get

:03:19.:03:22.

the money? And a quick one on corruption. There is a bit worried

:03:23.:03:25.

that China is investing in countries with very bad records of governance.

:03:26.:03:31.

How can they mitigate some of their losses? Pakistan, Central Asia,

:03:32.:03:34.

countries where foreign investors do not go in without some degree of

:03:35.:03:40.

caution. China is much the same and privately, some officials are saying

:03:41.:03:43.

they don't expect to get a massive return on investments. One to watch

:03:44.:03:45.

for the future. Thank you very much. We will be

:03:46.:03:53.

watching the second day of the forum today. Europe's's police agency

:03:54.:03:58.

since last Friday's global attack has hit more than 200,000 feet and

:03:59.:04:03.

is in over 150 countries. Cyber Security agencies are now warning of

:04:04.:04:08.

a new wave of cyber attacks are round the world as people return to

:04:09.:04:10.

work after the weekend. They have seen this as a major

:04:11.:04:26.

problem over the years but never on this soul. Infected computers pass

:04:27.:04:32.

it onto others its network -- Europol has seen this. They were

:04:33.:04:36.

designed to affect as many people and as many companies as possible on

:04:37.:04:39.

a global basis. The healthcare sector is vulnerable. Healthcare

:04:40.:04:47.

trusts approach a lot of sensitive information on old legacy IT

:04:48.:04:50.

systems. The criminals know that if they can exploit the vulnerability

:04:51.:05:02.

is, there will be a lot of issues. 150 countries were affected before a

:05:03.:05:06.

22-year-old Briton, hailed as a hero, bound a simple kill switch in

:05:07.:05:11.

its code. Something he warned was just a temporary fix. There is a lot

:05:12.:05:16.

of money in this. There is no reason for them to stop. There is no effort

:05:17.:05:24.

for them to change the code. We have seen seen the cyber criminals react

:05:25.:05:27.

to that and put out a new version, and new variant of that which

:05:28.:05:31.

overcomes the temporary fix and am also concerned about what happens on

:05:32.:05:34.

Monday morning because I think the bug will be sitting in systems over

:05:35.:05:38.

the weekend that have so far not being used. When people arrive to

:05:39.:05:42.

work on Monday morning and turn on their computer, I think we will see

:05:43.:05:48.

the numbers going up again. While the high profile organisations have

:05:49.:05:52.

largely recovered, Britain's NHS one of them, thanks to backup systems,

:05:53.:05:58.

some systems, and individuals, were not so prepared. Students at this

:05:59.:06:04.

campus from China, no option but to pay up if they want their files I'm

:06:05.:06:08.

locked by the hackers. TRANSLATION: The encryption of planet --

:06:09.:06:14.

ransomware was advanced. Individual users would not be able to recover

:06:15.:06:18.

their files. For users, they should also make always back up their

:06:19.:06:23.

files, upgrade best suit -- security software and use antivirus tools.

:06:24.:06:29.

That is the main advice from security experts. Download the

:06:30.:06:33.

latest security patches from Microsoft and regulate backup data

:06:34.:06:36.

to devices not connected to the Internet.

:06:37.:06:41.

Let's look at some of the other news. We will be keeping an eye on

:06:42.:06:47.

this week. Later today, Thailand and sales growth numbers on the January

:06:48.:06:53.

PO -- January to May period. Since the death of their King last year,

:06:54.:06:56.

Thailand is expected to have grown at their fastest pace in force --4

:06:57.:07:05.

years. Google's developer's conference gathered from around the

:07:06.:07:10.

world. Letter this week, Singapore airlines reveal their earnings. --

:07:11.:07:17.

later. We will see them going into debt is only as 2018. Also, Japan

:07:18.:07:24.

releases its preliminary GDP and just like Thailand, growth is

:07:25.:07:30.

projected. Earlier, I spoke with and investment expert.

:07:31.:07:35.

Exports are picking up. Consumers are spending and tourists are

:07:36.:07:43.

returning. These are three meant -- main drivers for Thailand. If they

:07:44.:07:48.

can start exporting, things will look after. There is a cloud on the

:07:49.:07:52.

horizon and that is that much of Thailand's exports are destined for

:07:53.:07:58.

China and Thailand makes the product that China then assembles which are

:07:59.:08:03.

then exported to the West. If trade relationships between the US and

:08:04.:08:07.

China are not good then of course that could affect China which in

:08:08.:08:12.

turn will affect Thailand. Moving on, quickly. Google and technology

:08:13.:08:17.

from Internet search engine to self drive -- self driving cars. What's

:08:18.:08:22.

next? Killam the thing about this conference is something surprising

:08:23.:08:25.

always comes out -- the thing about this conference. I think technology

:08:26.:08:29.

affects all of us and will touch all of us. I think in the case of

:08:30.:08:33.

Google, they appear to be working on things like virtual reality. How

:08:34.:08:38.

that is actually impacting my life, I'm not entirely sure. For some

:08:39.:08:44.

people, it will be a big thing. They are working very hard on Google home

:08:45.:08:48.

which means your home will be connected with the things you do on

:08:49.:08:52.

a daily basis. I can for instance set my washing machine last sitting

:08:53.:08:57.

here talking to you. Fascinating. Let's look at Singapore airlines.

:08:58.:09:01.

Brand-new planes. They have been buying a lot of them Asperitas sense

:09:02.:09:06.

they might go into debt as soon as next year. What's expected that

:09:07.:09:10.

their results? What they said last time they came out were the

:09:11.:09:13.

conditions were challenging. I think we know things are challenging at

:09:14.:09:17.

the moment that what you touched on about that debt is quite

:09:18.:09:20.

interesting. Previously, they had about $3 billion worth of cash, half

:09:21.:09:25.

of which was debt which means they were in a Metcash position. What

:09:26.:09:31.

could happen as they start at -- spending on these planes, they could

:09:32.:09:35.

start using up a lot of this cash and instead of having net cash, they

:09:36.:09:39.

will have net debt. They properly think that having some net debt is

:09:40.:09:45.

not such a bad thing. Japan expecting growth? I think so. One

:09:46.:09:49.

thing --1 person smiling will be that of Japan's of another. I think

:09:50.:09:55.

he will be smiling because it is finally working. -- bank of Japan.

:09:56.:10:02.

The Nikkei in Japan and the all ordinaries in Australia are both

:10:03.:10:07.

trading law at -- Lower, taking their cues from Wall Street. It was

:10:08.:10:14.

due to a weaker than expected retail sales and a report on consumer

:10:15.:10:18.

prices in the US. Of course there are geopolitical issues as well

:10:19.:10:22.

after the missile launch in North Korea over the weekend which is

:10:23.:10:25.

unnerving some investors over in Japan. That is it for this edition

:10:26.:10:29.

of Asia Business Report. Thank you for watching.

:10:30.:10:35.