19/05/2017 Asia Business Report


19/05/2017

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and delivering Brexit are the biggest priorities if she's

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Now all the latest business news live from Singapore.

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APEC trade ministers gear up for a busy weekend in Vietnam, as it faces

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restructuring of major trade agreements.

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And who knew what you could do with used coffee grounds?

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Good morning, Asia, hello, world. Glad you could join us for this

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edition of Asia Business Report. Trade ministers are gathering in

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Vietnam this weekend and the person they will be wanting face time with,

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America's new trade Representative, who is in charge of President

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Trump's America first policy. Earlier I spoke to the executive

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director of a segment of APEC and he told me what ministers are keen to

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find out. We are pretty interested to talk to the United States trade

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representatives and have him come and elaborate for us some details of

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US trade and other related policies. We are pushing ahead with a lot of

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initiatives in APEC. It is a pretty important time. We have to have more

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clarity on what the US will be supporting, where their

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sensitivities are and how to proceed forward. The US seems to be

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supporting protectionist policies, so how will APEC respond to this? I

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am not here in the USA that he doesn't want to hear more trade, I

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think they do. They are mainly talking about rules of trade. We

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will have some discussion about that and we are really looking to work

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out what... Where these points of agreement between the US and other

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20 economies in APEC who are broadly aiming to want to push ahead with

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these things we are doing. Trade is very much on the agenda in

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the US. Washington has set mid-August as the date where they

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want to begin renegotiating the North America trade agreement.

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President Trump promised to use these talks to reduce the trade

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deficit the US has with both Canada and Mexico, but his plan threatens

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to disrupt Mexico's booming auto industry. It is the world's fourth

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largest exporter. This report from Mexico's industrial heartland.

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The city in central Mexico has seen the Autry and history booming for

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more than 20 years. The country is now the fourth largest car exporter

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in the world. -- or to industry. We import a lot of cars, we exporter a

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lot of cars. But good the boom be under threat? It was meant to be a

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shining example of free trade, but today it's a monument to Donald

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Trump's plan of protectionism. This is all that's left of a $1.6 billion

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investment that Ford was making to build a plant here. Jose shows me

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the deed to the land he sold the Ford. With the money he bought a

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tractor. For a while life was good. But it didn't last.

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TRANSLATION: Some people came to the plant and said there was no entry

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any more. The cars could go any more, it collapsed. For everyone.

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During his campaign, Donald Trump complained of bad trade, making the

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issue his own will stop we are living through the greatest jobs

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theft in the history of the world. And his attempts to coalesce several

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cars giants in moving production to the US seemed to yield results. Ford

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is keen to emphasise the market forces which drove the decision to

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abandon its previous plant. But the CEO admits presidential rhetoric is

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also a factor. At the end of the day we have to do what's right for our

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business and of course the administration and Congress have the

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ability to look at tax policy, trade policy, etc, which is the business

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environment we react to. The economic advantages which created

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Mexico's decades long car but haven't yet disappeared, but a more

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protectionist US administration could undoubtedly do great harm to

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many livelihoods in this part of Mexico.

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In other business news making headlines, BMW are among car makers

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which agreed to pay more than $550 million to set up a class-action

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lawsuit covering owners of recalled vehicles fitted with potentially

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faulty Takata airbags. The airbags were blamed for 11 deaths and more

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than 150 injuries and sparked the biggest recall in the auto industry.

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Revenues at Alibaba jumped 60% in the first three months of the year

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to $5.6 billion. But growth has been powered by a growing customer base,

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with more than 450 million Chinese shoppers using its sights during the

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quarter. On average annual spending was up by about one third. It seems

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investors were underwhelmed, at Alibaba shares fell by more than 3%

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on Wall Street. The explosion in e-commerce is

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putting pressure on traditional stores around the globe, not least

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in America. Many shops are closing down. The world's largest retailer

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Walmart has benefited from the surge in online sales, following its bid

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to compete with US e-commerce giant Amidon. -- Amazon. Our reporter told

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me why we should take note of these numbers. It is a giant in terms of

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the number of people it employs and the foot rent it has in American

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retail. -- footprint. It is really important. It is also looked at as a

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bellwether of the health of the economy in the US. It shows Walmart

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is in a good position to be a big competitor in different areas. We've

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seen that online was a huge boost to them in this last quarter. They are

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also doing well in terms of grocery numbers. That will be the next

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really big hitting area, where people will have to compete a lot

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for in terms of retailers and groceries and Walmart has positioned

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itself well. It is making its mark in the US, but it seems to have

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major problems, especially in the Chinese market and competing with

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the likes of Alibaba? Absolutely. The kind of difficulties you would

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see with Walmart competing with the likes of Amazon are already

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established, in terms of e-commerce. The task is that much greater when

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it comes to China and competing with Alibaba. Alibaba's earnings have

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just come out and Wylie didn't meet investor's expectations, it showed

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that the Chinese market is still hungry and looking to shop.

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That was from New York. Have you ever wondered what happens to use

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the coffee grounds, but are thrown out by cafes around the world? One

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man in Taiwan decided to gather them up and make fabric from them. Today,

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his award-winning material is used by about 100 clothing and sportswear

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companies around the world. As part of our Busy Breakfast series, we met

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up with him to find out more. This is what a lot of people think

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Taiwanese companies must do. Many Taiwanese companies want to

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become a global brand. What is your advice to them?

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Coffee being fabric made in Taiwan. Let's have a quick look at the

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markets. The Trump turmoil continues for the Asian financial markets,

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despite the recovery in US stocks overnight. The Nikkei bound by about

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11 points and the All Ords losing 22 points. Wall Street's indices

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closing higher overnight, with the Dow Jones and the NASDAQ in positive

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territory. Thanks so much for investing your time with us. Goodbye

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for now.

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