15/05/2017 Asia Business Report

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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.


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


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


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


weekend. Hello and welcome to Asia Business


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


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


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


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


ambitions span over 60 countries and the President has pledged billions


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


governments in particular are wondering whether they have the


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


a global basis. The healthcare sector is vulnerable. Healthcare


trusts approach a lot of sensitive information on old legacy IT


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


That is the main advice from security experts. Download the


latest security patches from Microsoft and regulate backup data


to devices not connected to the Internet.


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


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


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


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


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


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


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


releases its preliminary GDP and just like Thailand, growth is


projected. Earlier, I spoke with and investment expert.


Exports are picking up. Consumers are spending and tourists are


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


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


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


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


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


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


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


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


next? Killam the thing about this conference is something surprising


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


of Asia Business Report. Thank you for watching.