19/06/2017 Asia Business Report


19/06/2017

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side between the Prime Minister Theresa May and her Finance minister

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

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Left off for the biggest event on the aerospace calendar. Find out

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what top-up jets are burning up the tarmac at the Paris air show. And

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markets brace for IMPAC from Brexit. We map out the brand-new trading

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week. Good morning, Asia and hello world. It is as Monday and thank you

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for joining us. I am Rico Hizon and we kick off with the Paris airshow.

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The biggest air plane manufacturers will display their latest products

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despite strong airline traffic, lower oil prices and a healthy

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economy, many manufacturers expect slow sales.

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It is the biggest and busiest event of the year for the global aerospace

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industry. The best-known names in the business are all here to show

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off their latest multibillion-dollar designs. Like this one. This is a

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new military transport aircraft from a Brazilian manufacturer and one of

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several they brought along to the show, including that one, a

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commercial jet. The company is very much in the hunt for new orders.

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This is where the airlines want to be. They want to see the airplay,

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they want to see it flying, they want to see the interiors. It does

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make a difference. I have seen deals made a broken at air shows over the

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course of the years. Sales may be hard to find this year. Orders the

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civil aircraft are expected to be much lower than we have seen in

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recent years. Both Boeing and Airbus have played down expectations. I

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expect orders, but, for me, the key will be how we see the shift from

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topline growth to whether manufacturers are working on getting

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their bottom-line growing. Crowds may be wowed but this plane is not

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selling well. The company does need new orders but is unlikely to get

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them to European giant may find itself upstaged by its American

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archrival which has brought along a new 737 Max, and up rated version of

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its old workhorse. It may set out plans for a highly efficient

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medium-sized aircraft. For many, the highlight of the show will be the

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display of supplying and so the first time the lightning two will be

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taking part. The product of the most expensive defence programme ever. 1%

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with delays and cost overruns. It badly needs some good PR. So as it

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soars through the skies over Paris, the performance needs to be

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spectacular. India's IT industry gained a

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competitive edge on the global market and created good paying jobs

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to millions of workers. Now it is a victim of its own success. The $150

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billion industry is suffering from massive layoffs, new technology and

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a policies in the US and Europe. In response to these changes, tech

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workers want to unionise to protect their jobs. We travelled to

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Bangalore does for this report. This is a situation this man never

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thought he would find himself in. At the age of 49, he is frantically

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looking for a new job. For ten years he was working as a senior project

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manager at one of India's largest IT firms. Last month he and his entire

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team were let go. You think your job is safe and suddenly you have to go

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out. It is difficult to pay my loans, around $5,000 that I need to

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pay for my children's education. My father, my wife, we don't know what

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will happen. This area in Bangalore is home to the sum of the largest IT

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companies in India over the past two decade, jobs were cosseted. They

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offered prosperity and prestige. But now the industry is in the grips of

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a slowdown in the future is uncertain for thousands of people.

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It is estimated that in the last six months alone, Indian firms have laid

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off over 50,000 people fool 's and this man is being blamed for the

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cuts. The US president Donald Trump and his crackdown on visas issued to

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Indians working in the US is forcing IT firms to hire Americans at a

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higher cost. From this day forward it will be only America first.

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Indian IT firms have declared these policies a threat to their business.

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But there are other reasons as well. At this company, automation is a

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factor. Anything that is repetitive we get automated. So if you are

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doing a repetitive job, you should be doing more to skill up and move.

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You can automate today, so why would you not do it? Demands are changing

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as well. Traditional IT service is being moved to cloud services. For

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now, he has become part of the IT union, asking for the government to

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step in. Companies say layoffs are other based on performance. They

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demand more transparent appraisals and better severance packages. They

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hope their efforts will protect people working in IT.

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Some good news for Japan's economic reports. Exports are surging 14.9%

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in the month of May compared to the earlier -- year earlier. This is

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according to the Finance Ministry. That is below the expectations of

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economists but well above the increase for April. Exports were

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pushed higher by more shipments of cars and steel, suggesting

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strengthening global demand. Japan also had its first-rate deficit in

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months as imports sword. -- sword. Brexit negotiations start this week

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in Brussels. Business groups in the UK urged to put the economy first as

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she negotiates the formal exit. Mid week we will also get the weekly US

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oil inventories date. The buildup last week and gas stocks lead to a

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4% drop in crude oil prices as the global market is already struggling

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with a supply glut. And on Thursday, New Zealand central bank will

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announce its latest decision, will they or won't they raise or cut the

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cost of borrowing? It is currently at a record low of 1.75%. I spoke to

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Michael McCarthy in Sydney, as chief strategist, I asked him if investors

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are likely to respond to the Brexit negotiations. There are concerns,

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still, about Brexit. They are very much a European and specific. For

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global markets, the implications are not clear and maybe slighter than

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many people think. However, talk of ?100 billion bill for Britain as the

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cost of its exit has certainly concerned investors in the UK. How

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will this impact the British pound in Asian trading? It is likely we

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will see further weakness in the pound. There are concerns that there

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is a move away from a hard Brexit and that means that there are some

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concerns that the UK economy may suffer more than has previously be

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priced in by markets. The global economy is recovering, letter by

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pick up an urgent call economies. Will the rising trend in exports

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continue to the remainder of the year? It seems so at this stage.

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While no one is getting carried away, the lock is positive that the

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global economy. The key for the Asia-Pacific region as the Chinese

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economy and that seems to have stabilised at a lower growth level.

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That is good news for markets and economies. What are you looking out

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or in terms of oil prices we? Lest week it fell for the fourth

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consecutive week. There is a structural problem in the oil market

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and OPEC cannot address at sufficiently to get oil prices up.

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It seems we will see lower oil prices over the course of this

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trading week. The key issue is that agility of the swing producers in

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the US, they have not producers to -- responded to prices. If we see a

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drop away in a production this week, oil price may find a firmer base and

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they have seen. And looking at ago currencies, but coin surges to an

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all-time high of the end of last week it fell. Is this just a

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correction or are we seeing the start of a collapse? I suspect it

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may be a correction because we see very good support for the new crypto

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currencies. There are now at least 12 new currencies stop the next most

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popular of the Bitcoin has continued its rise despite the fall in

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Bitcoin. The turnover is now approaching $100 billion equivalent

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each week does suggest some strength in that market. That was Michael

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McCarthy in Sydney. Before we go here is a quick look now at the

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opening market numbers. As you can see, Japan is up by 55.5 points,

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reacting positively to the trade data released earlier for Expo ARPA.

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Imports are also in positive territory. We're also seeing gains

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in energy stocks. Investors are also watching closely Brexit talks, which

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begin today. The All Ordinaries index is opening in positive

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territory, up by 29 points. Thank you for investing your time

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