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Now on BBC News all the latest business news live from Singapore. | :00:00. | :00:20. | |
Asian stock markets sell-off from Wall Street. Why investors in the US | :00:21. | :00:27. | |
and Asia are worried. A big push out of China, how long will it take for | :00:28. | :00:31. | |
Alibaba to succeed in the American marketplace? Good morning, Asia. | :00:32. | :00:42. | |
Hello, world. Thank you for joining us that this Thursday edition. We | :00:43. | :00:49. | |
start off with the markets. As you can see right now, the Nick A | :00:50. | :00:53. | |
kicking off the first day trading session down by 1.4%. 270 points, | :00:54. | :00:59. | |
tracking falls on Wall Street overnight on worries about | :01:00. | :01:03. | |
Washington. We also have the All Ordinaries index giving back 1.2% in | :01:04. | :01:09. | |
early trade. US shares extending losses following reports of a memo | :01:10. | :01:13. | |
by James Comey suggesting that President Trump had tried to | :01:14. | :01:16. | |
interfere with a federal investigation. That has made the US | :01:17. | :01:24. | |
investors depressed. Down by 1.8% overnight and the NASDAQ losing a | :01:25. | :01:30. | |
hefty 2.6%. That leads to concerns that political turmoil could get in | :01:31. | :01:33. | |
the way of the business friendly policies of the President, such as | :01:34. | :01:38. | |
the much anticipated tax cuts and infrastructure spending. For more | :01:39. | :01:45. | |
were joined in our studio. Karishma, all of these controversies from | :01:46. | :01:53. | |
Donald Trump, they are depressing the sentiment of investors? | :01:54. | :01:56. | |
Absolutely. You don't even need to watch house of cards any longer, | :01:57. | :01:59. | |
just turn on the news every morning. In all seriousness, look at the way | :02:00. | :02:04. | |
it that stocks and shares in Asia have reacted to the USA. Earlier on, | :02:05. | :02:09. | |
the Japanese stock exchange was down and that is despite the fact that | :02:10. | :02:13. | |
economic growth figures out of Japan coming out today were better than | :02:14. | :02:19. | |
expected, up by about .5%. Quarter on quarter they continue to show | :02:20. | :02:22. | |
strong growth. Investors are struck off the good news instead taking | :02:23. | :02:28. | |
their cue from Wall Street. A lot of this is, of course, because of the | :02:29. | :02:33. | |
rush to save face and like the Japanese yen. Overnight we saw the | :02:34. | :02:37. | |
Japanese yen strengthening as a result of the anxiety among | :02:38. | :02:39. | |
investors. That is typically what happens. As a result, the big | :02:40. | :02:46. | |
exporter stocks in Japan on the Nikkei, tended appreciate because | :02:47. | :02:50. | |
there earnings are affected by a stronger yen. Overall this is | :02:51. | :02:53. | |
current political sentiment in the US which affects and makes Asian | :02:54. | :02:59. | |
markets nervous. This negative mood, is it all about the Trump | :03:00. | :03:04. | |
controversy was to mark how about European politics and the North | :03:05. | :03:10. | |
Korea issue and US earnings? Does that play into the picture still? | :03:11. | :03:14. | |
The main focus right now is very much what is happening in | :03:15. | :03:17. | |
Washington. In a sense, Asia can take some heart from that because at | :03:18. | :03:22. | |
some point, investors here are going to say hold on, our economic | :03:23. | :03:26. | |
fundamentals are still strong and they are still company proffered | :03:27. | :03:29. | |
earnings reporting solid results. The ongoing political situation in | :03:30. | :03:33. | |
the US does not appear to have any end in sight but while that trundles | :03:34. | :03:38. | |
on, Asia will start looking to the other big partner, the neighbour, | :03:39. | :03:41. | |
the giant in the neighbourhood, and that is China. I expect to see more | :03:42. | :03:46. | |
deals in our relationship growing in the days and months to come. Thank | :03:47. | :03:50. | |
you grew much for that update on the Asian market story. Moving out | :03:51. | :03:57. | |
corporate news and Alibaba, the e-commerce giant from China will be | :03:58. | :04:02. | |
reporting today. A key part of its strategy is connecting the huge | :04:03. | :04:05. | |
consumer market in China with US entrepreneurs. It is something that | :04:06. | :04:11. | |
Jack Marx spoke about with the US President is we report from New | :04:12. | :04:24. | |
York. -- Jack Ma. He is a great entrepreneur and he loves China. For | :04:25. | :04:28. | |
President Trump, the best way for Jack Ma to show is lots of this | :04:29. | :04:32. | |
country is to make it easier for Americans to their goods to China. | :04:33. | :04:37. | |
This sneak a shot in Manhattan is an example of just that. Stadium goods | :04:38. | :04:42. | |
has a physical store but 90% of its business is done online. Since | :04:43. | :04:46. | |
August, they had been selling on Alibaba and it has been a big boost | :04:47. | :04:50. | |
to their sneaker empire. We do over $100 million this year and it is | :04:51. | :04:56. | |
about 20% of our business. They run a start-up which has refreshing. We | :04:57. | :05:01. | |
can channel partnerships with other large marketplaces. We deal with... | :05:02. | :05:08. | |
They treat us like we are trusted, you know, multibillion dollar | :05:09. | :05:14. | |
company. The leader of China's biggest e-commerce retailer has big | :05:15. | :05:17. | |
ambitions. He wants to bring 1 million American businesses to China | :05:18. | :05:22. | |
and 2 billion customers in the next decade. They have been talking about | :05:23. | :05:26. | |
making a big push outside of China for the last few years. Since they | :05:27. | :05:31. | |
became a public company, really, and perhaps even prior to that when they | :05:32. | :05:35. | |
filed to come public a number of years ago at this point. When you | :05:36. | :05:39. | |
look at their revenue base, it is almost entirely contributed by | :05:40. | :05:43. | |
China. So they may very well have aspirations and they may very well | :05:44. | :05:47. | |
talk about that but the numbers suggest there is a lot of work to be | :05:48. | :05:52. | |
done on that front. Mr Ma is not afraid of hard work. He will be in | :05:53. | :05:57. | |
the US next month to make his pitch directly to US businesses. It just | :05:58. | :06:05. | |
may be an uphill battle. Some of the biggest defence contractors in | :06:06. | :06:08. | |
Singapore this week that the maritime defence exhibition and | :06:09. | :06:13. | |
conference. Is taking place against a backdrop of heightened uncertainty | :06:14. | :06:16. | |
about regional security. My colleague was at the event and she | :06:17. | :06:22. | |
met with an Italian contractor. This is the kind of patrol vessel on sale | :06:23. | :06:31. | |
here. This goes at 55 knots it has antiship missiles as will on the | :06:32. | :06:35. | |
back and it is built by an Italian manufacturer that is also known from | :06:36. | :06:42. | |
their luxury yachts. I am speaking to Juliano. Who are you selling | :06:43. | :06:48. | |
these crafts to? All the countries of this region are facing an | :06:49. | :06:54. | |
increasing threat from very aggressive attacks to their | :06:55. | :07:00. | |
economies, their people and their safety and our boats are | :07:01. | :07:03. | |
specifically designed for this purpose. And you are finding that | :07:04. | :07:07. | |
there are more people purchasing from this region because there are | :07:08. | :07:12. | |
concerns around South China Sea and disputed territories? Well, the | :07:13. | :07:15. | |
disputed territories of course is a subject and I think that all of | :07:16. | :07:20. | |
these countries are facing more direct economic issues, direct | :07:21. | :07:25. | |
threats because they believe that there economy has to be defended | :07:26. | :07:30. | |
from illegal traffic. And that is what our boats are built for. And | :07:31. | :07:35. | |
who are you selling specifically to? Which countries have shown interest? | :07:36. | :07:42. | |
The countries are Singapore where the exhibition takes place. | :07:43. | :07:44. | |
Thailand, the Philippines, Indonesia, Malaysia, all these | :07:45. | :07:49. | |
countries have the same issues and all these countries are showing a | :07:50. | :07:55. | |
lot of interest in our product. That was the maritime defence exhibition | :07:56. | :07:58. | |
in Singapore. Chinese online giant 10 cents has defeated expectations | :07:59. | :08:04. | |
with a 15% jump in its quarter profitability thanks to strong | :08:05. | :08:07. | |
growth in gaming and digital payments. The company looks set to | :08:08. | :08:12. | |
expand its digital music services. It has signed a deal with universal | :08:13. | :08:16. | |
music for exclusive rights to its catalogue in China. Will the deal | :08:17. | :08:21. | |
merely be popular instead of profitable? | :08:22. | :08:32. | |
So here I am, like so many people in this city, grooving through my daily | :08:33. | :08:43. | |
existence, listening to music available via phone. All completely | :08:44. | :08:48. | |
free. Now I'm not talking about piracy. In China, technology do | :08:49. | :08:54. | |
giants operate platforms which offer a huge amount of music, all | :08:55. | :09:01. | |
completely free. So why would I pay for it? Well, little by little, 10 | :09:02. | :09:10. | |
cents is trying to win its customers -- wean its customers off free | :09:11. | :09:20. | |
music. The extent to which it is ultimately successful in this | :09:21. | :09:24. | |
endeavour is going to be crucial for universal music which has just | :09:25. | :09:28. | |
signed on with the company to have its product delivered by their | :09:29. | :09:33. | |
platforms in China. To get on board as a paying customer is not what of | :09:34. | :09:37. | |
money. Only a couple of dollars a month. But our people willing to | :09:38. | :09:43. | |
part with our hard earned cash for better access to music? | :09:44. | :09:58. | |
Universal signed this deal with Tencent knowing that it has 15 | :09:59. | :10:03. | |
million subscribers. More significantly, it also knows that | :10:04. | :10:14. | |
Tencent has hundreds of millions of active users each month waiting to | :10:15. | :10:25. | |
become paying customers. Dance into the music there. Thank you for | :10:26. | :10:27. | |
investing your time with us. | :10:28. | :10:30. |