18/05/2017 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.


Asian stock markets sell-off from Wall Street. Why investors in the US


and Asia are worried. A big push out of China, how long will it take for


Alibaba to succeed in the American marketplace? Good morning, Asia.


Hello, world. Thank you for joining us that this Thursday edition. We


start off with the markets. As you can see right now, the Nick A


kicking off the first day trading session down by 1.4%. 270 points,


tracking falls on Wall Street overnight on worries about


Washington. We also have the All Ordinaries index giving back 1.2% in


early trade. US shares extending losses following reports of a memo


by James Comey suggesting that President Trump had tried to


interfere with a federal investigation. That has made the US


investors depressed. Down by 1.8% overnight and the NASDAQ losing a


hefty 2.6%. That leads to concerns that political turmoil could get in


the way of the business friendly policies of the President, such as


the much anticipated tax cuts and infrastructure spending. For more


were joined in our studio. Karishma, all of these controversies from


Donald Trump, they are depressing the sentiment of investors?


Absolutely. You don't even need to watch house of cards any longer,


just turn on the news every morning. In all seriousness, look at the way


it that stocks and shares in Asia have reacted to the USA. Earlier on,


the Japanese stock exchange was down and that is despite the fact that


economic growth figures out of Japan coming out today were better than


expected, up by about .5%. Quarter on quarter they continue to show


strong growth. Investors are struck off the good news instead taking


their cue from Wall Street. A lot of this is, of course, because of the


rush to save face and like the Japanese yen. Overnight we saw the


Japanese yen strengthening as a result of the anxiety among


investors. That is typically what happens. As a result, the big


exporter stocks in Japan on the Nikkei, tended appreciate because


there earnings are affected by a stronger yen. Overall this is


current political sentiment in the US which affects and makes Asian


markets nervous. This negative mood, is it all about the Trump


controversy was to mark how about European politics and the North


Korea issue and US earnings? Does that play into the picture still?


The main focus right now is very much what is happening in


Washington. In a sense, Asia can take some heart from that because at


some point, investors here are going to say hold on, our economic


fundamentals are still strong and they are still company proffered


earnings reporting solid results. The ongoing political situation in


the US does not appear to have any end in sight but while that trundles


on, Asia will start looking to the other big partner, the neighbour,


the giant in the neighbourhood, and that is China. I expect to see more


deals in our relationship growing in the days and months to come. Thank


you grew much for that update on the Asian market story. Moving out


corporate news and Alibaba, the e-commerce giant from China will be


reporting today. A key part of its strategy is connecting the huge


consumer market in China with US entrepreneurs. It is something that


Jack Marx spoke about with the US President is we report from New


York. -- Jack Ma. He is a great entrepreneur and he loves China. For


President Trump, the best way for Jack Ma to show is lots of this


country is to make it easier for Americans to their goods to China.


This sneak a shot in Manhattan is an example of just that. Stadium goods


has a physical store but 90% of its business is done online. Since


August, they had been selling on Alibaba and it has been a big boost


to their sneaker empire. We do over $100 million this year and it is


about 20% of our business. They run a start-up which has refreshing. We


can channel partnerships with other large marketplaces. We deal with...


They treat us like we are trusted, you know, multibillion dollar


company. The leader of China's biggest e-commerce retailer has big


ambitions. He wants to bring 1 million American businesses to China


and 2 billion customers in the next decade. They have been talking about


making a big push outside of China for the last few years. Since they


became a public company, really, and perhaps even prior to that when they


filed to come public a number of years ago at this point. When you


look at their revenue base, it is almost entirely contributed by


China. So they may very well have aspirations and they may very well


talk about that but the numbers suggest there is a lot of work to be


done on that front. Mr Ma is not afraid of hard work. He will be in


the US next month to make his pitch directly to US businesses. It just


may be an uphill battle. Some of the biggest defence contractors in


Singapore this week that the maritime defence exhibition and


conference. Is taking place against a backdrop of heightened uncertainty


about regional security. My colleague was at the event and she


met with an Italian contractor. This is the kind of patrol vessel on sale


here. This goes at 55 knots it has antiship missiles as will on the


back and it is built by an Italian manufacturer that is also known from


their luxury yachts. I am speaking to Juliano. Who are you selling


these crafts to? All the countries of this region are facing an


increasing threat from very aggressive attacks to their


economies, their people and their safety and our boats are


specifically designed for this purpose. And you are finding that


there are more people purchasing from this region because there are


concerns around South China Sea and disputed territories? Well, the


disputed territories of course is a subject and I think that all of


these countries are facing more direct economic issues, direct


threats because they believe that there economy has to be defended


from illegal traffic. And that is what our boats are built for. And


who are you selling specifically to? Which countries have shown interest?


The countries are Singapore where the exhibition takes place.


Thailand, the Philippines, Indonesia, Malaysia, all these


countries have the same issues and all these countries are showing a


lot of interest in our product. That was the maritime defence exhibition


in Singapore. Chinese online giant 10 cents has defeated expectations


with a 15% jump in its quarter profitability thanks to strong


growth in gaming and digital payments. The company looks set to


expand its digital music services. It has signed a deal with universal


music for exclusive rights to its catalogue in China. Will the deal


merely be popular instead of profitable?


So here I am, like so many people in this city, grooving through my daily


existence, listening to music available via phone. All completely


free. Now I'm not talking about piracy. In China, technology do


giants operate platforms which offer a huge amount of music, all


completely free. So why would I pay for it? Well, little by little, 10


cents is trying to win its customers -- wean its customers off free


music. The extent to which it is ultimately successful in this


endeavour is going to be crucial for universal music which has just


signed on with the company to have its product delivered by their


platforms in China. To get on board as a paying customer is not what of


money. Only a couple of dollars a month. But our people willing to


part with our hard earned cash for better access to music?


Universal signed this deal with Tencent knowing that it has 15


million subscribers. More significantly, it also knows that


Tencent has hundreds of millions of active users each month waiting to


become paying customers. Dance into the music there. Thank you for


investing your time with us.