19/06/2017

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:00:00. > :00:00.side between the Prime Minister Theresa May and her Finance minister

:00:00. > :00:13.Now on BBC News all the latest business news live from Singapore.

:00:14. > :00:23.Left off for the biggest event on the aerospace calendar. Find out

:00:24. > :00:28.what top-up jets are burning up the tarmac at the Paris air show. And

:00:29. > :00:37.markets brace for IMPAC from Brexit. We map out the brand-new trading

:00:38. > :00:43.week. Good morning, Asia and hello world. It is as Monday and thank you

:00:44. > :00:49.for joining us. I am Rico Hizon and we kick off with the Paris airshow.

:00:50. > :00:56.The biggest air plane manufacturers will display their latest products

:00:57. > :00:59.despite strong airline traffic, lower oil prices and a healthy

:01:00. > :01:04.economy, many manufacturers expect slow sales.

:01:05. > :01:10.It is the biggest and busiest event of the year for the global aerospace

:01:11. > :01:13.industry. The best-known names in the business are all here to show

:01:14. > :01:22.off their latest multibillion-dollar designs. Like this one. This is a

:01:23. > :01:26.new military transport aircraft from a Brazilian manufacturer and one of

:01:27. > :01:29.several they brought along to the show, including that one, a

:01:30. > :01:35.commercial jet. The company is very much in the hunt for new orders.

:01:36. > :01:39.This is where the airlines want to be. They want to see the airplay,

:01:40. > :01:43.they want to see it flying, they want to see the interiors. It does

:01:44. > :01:48.make a difference. I have seen deals made a broken at air shows over the

:01:49. > :01:51.course of the years. Sales may be hard to find this year. Orders the

:01:52. > :01:55.civil aircraft are expected to be much lower than we have seen in

:01:56. > :02:01.recent years. Both Boeing and Airbus have played down expectations. I

:02:02. > :02:10.expect orders, but, for me, the key will be how we see the shift from

:02:11. > :02:12.topline growth to whether manufacturers are working on getting

:02:13. > :02:18.their bottom-line growing. Crowds may be wowed but this plane is not

:02:19. > :02:23.selling well. The company does need new orders but is unlikely to get

:02:24. > :02:26.them to European giant may find itself upstaged by its American

:02:27. > :02:32.archrival which has brought along a new 737 Max, and up rated version of

:02:33. > :02:35.its old workhorse. It may set out plans for a highly efficient

:02:36. > :02:39.medium-sized aircraft. For many, the highlight of the show will be the

:02:40. > :02:46.display of supplying and so the first time the lightning two will be

:02:47. > :02:50.taking part. The product of the most expensive defence programme ever. 1%

:02:51. > :02:58.with delays and cost overruns. It badly needs some good PR. So as it

:02:59. > :02:59.soars through the skies over Paris, the performance needs to be

:03:00. > :03:07.spectacular. India's IT industry gained a

:03:08. > :03:11.competitive edge on the global market and created good paying jobs

:03:12. > :03:16.to millions of workers. Now it is a victim of its own success. The $150

:03:17. > :03:24.billion industry is suffering from massive layoffs, new technology and

:03:25. > :03:27.a policies in the US and Europe. In response to these changes, tech

:03:28. > :03:29.workers want to unionise to protect their jobs. We travelled to

:03:30. > :03:41.Bangalore does for this report. This is a situation this man never

:03:42. > :03:46.thought he would find himself in. At the age of 49, he is frantically

:03:47. > :03:50.looking for a new job. For ten years he was working as a senior project

:03:51. > :03:57.manager at one of India's largest IT firms. Last month he and his entire

:03:58. > :04:06.team were let go. You think your job is safe and suddenly you have to go

:04:07. > :04:13.out. It is difficult to pay my loans, around $5,000 that I need to

:04:14. > :04:19.pay for my children's education. My father, my wife, we don't know what

:04:20. > :04:24.will happen. This area in Bangalore is home to the sum of the largest IT

:04:25. > :04:31.companies in India over the past two decade, jobs were cosseted. They

:04:32. > :04:35.offered prosperity and prestige. But now the industry is in the grips of

:04:36. > :04:40.a slowdown in the future is uncertain for thousands of people.

:04:41. > :04:46.It is estimated that in the last six months alone, Indian firms have laid

:04:47. > :04:51.off over 50,000 people fool 's and this man is being blamed for the

:04:52. > :04:58.cuts. The US president Donald Trump and his crackdown on visas issued to

:04:59. > :05:03.Indians working in the US is forcing IT firms to hire Americans at a

:05:04. > :05:12.higher cost. From this day forward it will be only America first.

:05:13. > :05:16.Indian IT firms have declared these policies a threat to their business.

:05:17. > :05:22.But there are other reasons as well. At this company, automation is a

:05:23. > :05:26.factor. Anything that is repetitive we get automated. So if you are

:05:27. > :05:34.doing a repetitive job, you should be doing more to skill up and move.

:05:35. > :05:43.You can automate today, so why would you not do it? Demands are changing

:05:44. > :05:50.as well. Traditional IT service is being moved to cloud services. For

:05:51. > :05:56.now, he has become part of the IT union, asking for the government to

:05:57. > :06:00.step in. Companies say layoffs are other based on performance. They

:06:01. > :06:04.demand more transparent appraisals and better severance packages. They

:06:05. > :06:11.hope their efforts will protect people working in IT.

:06:12. > :06:20.Some good news for Japan's economic reports. Exports are surging 14.9%

:06:21. > :06:24.in the month of May compared to the earlier -- year earlier. This is

:06:25. > :06:27.according to the Finance Ministry. That is below the expectations of

:06:28. > :06:31.economists but well above the increase for April. Exports were

:06:32. > :06:36.pushed higher by more shipments of cars and steel, suggesting

:06:37. > :06:48.strengthening global demand. Japan also had its first-rate deficit in

:06:49. > :06:52.months as imports sword. -- sword. Brexit negotiations start this week

:06:53. > :06:57.in Brussels. Business groups in the UK urged to put the economy first as

:06:58. > :07:02.she negotiates the formal exit. Mid week we will also get the weekly US

:07:03. > :07:08.oil inventories date. The buildup last week and gas stocks lead to a

:07:09. > :07:12.4% drop in crude oil prices as the global market is already struggling

:07:13. > :07:16.with a supply glut. And on Thursday, New Zealand central bank will

:07:17. > :07:21.announce its latest decision, will they or won't they raise or cut the

:07:22. > :07:28.cost of borrowing? It is currently at a record low of 1.75%. I spoke to

:07:29. > :07:32.Michael McCarthy in Sydney, as chief strategist, I asked him if investors

:07:33. > :07:38.are likely to respond to the Brexit negotiations. There are concerns,

:07:39. > :07:43.still, about Brexit. They are very much a European and specific. For

:07:44. > :07:46.global markets, the implications are not clear and maybe slighter than

:07:47. > :07:52.many people think. However, talk of ?100 billion bill for Britain as the

:07:53. > :07:56.cost of its exit has certainly concerned investors in the UK. How

:07:57. > :08:00.will this impact the British pound in Asian trading? It is likely we

:08:01. > :08:05.will see further weakness in the pound. There are concerns that there

:08:06. > :08:09.is a move away from a hard Brexit and that means that there are some

:08:10. > :08:14.concerns that the UK economy may suffer more than has previously be

:08:15. > :08:18.priced in by markets. The global economy is recovering, letter by

:08:19. > :08:22.pick up an urgent call economies. Will the rising trend in exports

:08:23. > :08:26.continue to the remainder of the year? It seems so at this stage.

:08:27. > :08:31.While no one is getting carried away, the lock is positive that the

:08:32. > :08:35.global economy. The key for the Asia-Pacific region as the Chinese

:08:36. > :08:38.economy and that seems to have stabilised at a lower growth level.

:08:39. > :08:42.That is good news for markets and economies. What are you looking out

:08:43. > :08:48.or in terms of oil prices we? Lest week it fell for the fourth

:08:49. > :08:51.consecutive week. There is a structural problem in the oil market

:08:52. > :08:55.and OPEC cannot address at sufficiently to get oil prices up.

:08:56. > :08:59.It seems we will see lower oil prices over the course of this

:09:00. > :09:07.trading week. The key issue is that agility of the swing producers in

:09:08. > :09:11.the US, they have not producers to -- responded to prices. If we see a

:09:12. > :09:16.drop away in a production this week, oil price may find a firmer base and

:09:17. > :09:19.they have seen. And looking at ago currencies, but coin surges to an

:09:20. > :09:24.all-time high of the end of last week it fell. Is this just a

:09:25. > :09:30.correction or are we seeing the start of a collapse? I suspect it

:09:31. > :09:34.may be a correction because we see very good support for the new crypto

:09:35. > :09:38.currencies. There are now at least 12 new currencies stop the next most

:09:39. > :09:44.popular of the Bitcoin has continued its rise despite the fall in

:09:45. > :09:49.Bitcoin. The turnover is now approaching $100 billion equivalent

:09:50. > :09:54.each week does suggest some strength in that market. That was Michael

:09:55. > :09:59.McCarthy in Sydney. Before we go here is a quick look now at the

:10:00. > :10:03.opening market numbers. As you can see, Japan is up by 55.5 points,

:10:04. > :10:11.reacting positively to the trade data released earlier for Expo ARPA.

:10:12. > :10:16.Imports are also in positive territory. We're also seeing gains

:10:17. > :10:21.in energy stocks. Investors are also watching closely Brexit talks, which

:10:22. > :10:27.begin today. The All Ordinaries index is opening in positive

:10:28. > :10:28.territory, up by 29 points. Thank you for investing your time