22/05/2017 Asia Business Report


22/05/2017

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

:00:00.:00:18.

Oil takes a backseat to security as Donald Trump makes his first

:00:19.:00:24.

overseas trip to Saudi Arabia. What happens when a reporter tried to buy

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a supercar from this luxury car vending machine? It is a Monday.

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Glad you could join us for this edition of Asia business report.

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Donald Trump has just wrapped up a weekend in Saudi Arabia. The

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relationship has been in oil for the last 70 years. Trump's protectionist

:00:59.:01:05.

policies to support drilling may not sit well with the Saudis but it did

:01:06.:01:09.

not top the agenda on this meeting. Earlier, I asked if this will have

:01:10.:01:18.

any impact on oil prices. I can't see any connection. Donald Trump is

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out of the cauldron in domestic politics and is on a stage where he

:01:24.:01:28.

can show his dealmaking skills. Certain issues you don't want to

:01:29.:01:33.

bring up. You don't want to bring up oil because effectively, the US and

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the Saudis are competing for market share. And the price of oil has been

:01:39.:01:43.

affected by the ramp up of production in the United States but

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could the Saudi funds into billions of dollars deterred going forward

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shall production, particularly from the base in -- basin? The

:01:54.:02:09.

independent oil producers, the hydraulic fractures, they are

:02:10.:02:12.

showing they can still produce. Effectively, the American

:02:13.:02:15.

independent oil producers become the global swing producer. Budgetary the

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Trump campaign, he vowed to unleash in the US. Could he start pulling

:02:23.:02:28.

back on these campaign promises which he has done over the past few

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months of his presidency? I would have to say, trump has already taken

:02:36.:02:39.

steps to unwind some of the Obama gnashers. The keystone pipeline --

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Obama blockers. He is challenging the American producer. America can

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be an oil power. That in Saudi Arabia, this visit, oil has taken a

:02:58.:03:04.

backseat then you have this other meeting with other oil producing

:03:05.:03:09.

countries, extending to supply cuts. How will this affect oil prices

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going forward? There has been a spin coming from OPEC members about the

:03:17.:03:21.

success of these cut back measures. Just the fact they are extending it

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for another nine months. You have had a Russia come out, recently,

:03:26.:03:30.

talking about their export strategy. The jury is still out on OPEC. We

:03:31.:03:38.

are range bound. It's like the US speed limit. Once we go above 55,

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the red lights go off, the market settles back down. I then trending

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upwards before the end of the year. Well, bowling announced it had

:03:47.:03:56.

signed several defence deals with the kingdom. Saudi Arabia agreed to

:03:57.:04:01.

buy helicopters in the deal that will be around $3.8 billion. Wohling

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also said it would negotiate the deal of 16 wide-body jets to Saudi

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Gulf airlines -- Boeing. The Trans-Pacific Partnership countries

:04:16.:04:20.

have agreed to pursue an agreement without the US. They were at the

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forum in Vietnam's. President Trump ditched the Trans-Pacific

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Partnership shortly after taking office saying it was a bad deal.

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The US dollar was sold off last week as investors started to question

:04:37.:04:44.

President Trump's ability to deliver on his reform agenda. We will be

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keeping an eye on that this week. Also coming up, the bank of Korea

:04:49.:04:54.

will hit up old it's first meeting after the new president was elected

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and a week after the news that Japan's economy is growing better

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than expected. The chain will announce its figures on Friday.

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Earlier I spoke to Paul Petron from Scotia bank. It is a tough week.

:05:08.:05:21.

There is not a lot of tier one economic news until Wednesday. And

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then we wait for Japan's CPI. What about the potential James Comey

:05:30.:05:36.

testimony and North Korea. What will really make headlines and in that

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investor sentiment? North Korea will today. There is a question on

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whether we open up with strength in the dollar which has been plagued by

:05:45.:05:48.

weakness lately. Will we have a sell-off in Yemen? -- yen. It is a

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very important move. Are investors moving from equities to fixed income

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for safety? For all of this volatility? It seems that leverage

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best as ours. We haven't yet seen enough in on how people view the

:06:17.:06:20.

equity backdrop to do a wholesale change but saying that, if there is

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going to be a rate path ahead that is different, we may see it. The

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bank of Japan has announced their end of month data and of course,

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last week, what a big surprise. Five consecutive quarters of expansion.

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Is this good news for the Japanese economy? Without question. The one

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KV it would be that the export data was strong. -- a caveat. Spending is

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it still a bit muted. It is good news. It will give Japanese

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policymakers are left. And of course you have the bank of Korea also

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meeting. Will they give a monetary policy gift to the new president,

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briefly? I don't think so just yet. I think they need a few arrows left

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in their quaver for when they need them. Japan is supposedly the place

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you can buy just about anything but there is a new kid on the block. Has

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Singapore outdone the home of self-service and shopping with this?

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It is a vending machine for supercars. We sent the reporter

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Timothy McDonald. Well, buying a car in Singapore is

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always expensive and there is usually a lot of paperwork. But if

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you have about half $1 million burning a hole in your pocket, there

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is a whole new way to do it. You come to this private and secure room

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to pick out your car on these apps. For me, it will be a Lamborghini.

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What else? Once you pick it out, the amazing bit happens. It brings it

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down, almost like a giant vending machine and while you wait, it plays

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an exciting promotional video for you. The best thing is you can only

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drive it at 90 kilometres an hour in Singapore. Part of the reason I

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understand you built this dealership is because of the kind of land

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pressures and costs that you face. That's right. With a footprint I

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have, I can install about 60- 80 cars. If I do it this way, the size

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of the land of this place. That was the reason we came up with this

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idea. You also really just wanted to deal something really cool as well,

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right? We wanted to make it like a beauty pageant. We are building a

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stage. Let the customers take a look and decide. Who is the winner, you

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know? Decide to buy the car. It has been described as a car vending

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machine. Can you really just a swipe your credit card and drive away? We

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are working on it and yes, I believe so. I think for cars, it can be.

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Inside the Begu Bestry, it is a curious mix of amusement park ride

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and elevator that we are told, in fact, it's a much more efficient way

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to get the car to the customer, it takes a few minutes. -- inside the

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vending machine. Maybe I will take the honours. Let's do it. I'm sorry,

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I think you had better call your bank. That's never going to happen.

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Thank you very much! Before we go, here is a look at the

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markets in Asia. All in positive territory. Japan gaining 117 points,

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the all awards up by 30. Thank you for your time today. Sport Today is

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coming up next. Bringing you up to date on

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