21/06/2017 Asia Business Report


21/06/2017

Similar Content

Browse content similar to 21/06/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Chancellor has defined his own goals for bricks and negotiations saying

:00:00.:00:10.

the priority that the Asians. Hong Kong's new chief executive lays

:00:11.:00:21.

out economic plans in an exclusive interview with the BBC. Knockoff

:00:22.:00:30.

time for these call centre workers. We find out why they are worried

:00:31.:00:42.

about US protectionism. Good morning, Asia and hello, world, glad

:00:43.:00:46.

you could join us for this edition. It has been nearly 20 years since

:00:47.:00:58.

Hong, handed over to Chinese rule. How do they plan to address the

:00:59.:01:02.

concerns of the younger generation, faced with an affordable housing and

:01:03.:01:06.

a growing wealth gap. A Chinese editor put the question to her. I

:01:07.:01:12.

want to give our younger generation hoped for the future of Hong Kong.

:01:13.:01:17.

In terms of the economy the hope lies in diversifying the economy so

:01:18.:01:22.

it is not just financial services and tourism, I want more attention

:01:23.:01:28.

on technology and creating quality jobs for people, for young people.

:01:29.:01:35.

Certainly I I know that housing is important. I want to give young

:01:36.:01:39.

people the sense of hope. And, yet, this generation, some of whom in

:01:40.:01:44.

2014 spent nearly three months on the street protesting for democracy,

:01:45.:01:48.

they may look at you and say that you have been there for the best

:01:49.:01:52.

part of 40 years. It had the housing job, the development job and now you

:01:53.:01:56.

are saying you are going to sort this out? The root of the problem is

:01:57.:02:00.

the politics because Hong Kong is a stitch up between the rich and the

:02:01.:02:07.

rulers and we do not get a look in. The government has increased

:02:08.:02:11.

spending on social welfare by 71%... And yet, and yet... The wealth gap

:02:12.:02:18.

happens in most advanced economies because it is not relativity. It was

:02:19.:02:23.

the incoming chief executive for Hong Kong. MSCI has decided to

:02:24.:02:31.

include China's A shares in its emerging markets index. Until now,

:02:32.:02:34.

only Chinese shares listed in Hong Kong were part of the index. MSCI

:02:35.:02:40.

compiles global stock market indices all lists of companies that

:02:41.:02:45.

investors use as a benchmark for investing decisions. Earlier I spoke

:02:46.:02:50.

to a correspondent in Hong Kong and asked why this decision was

:02:51.:02:54.

important. It was a widely expected decision, capping a process that

:02:55.:03:00.

took over for years. During that time MSCI had been speaking to

:03:01.:03:03.

investors around the world as well as Chinese regulators in an effort

:03:04.:03:08.

to bring Asia into this highly influential index. In the last three

:03:09.:03:12.

years the proposal was rejected because of market access issues.

:03:13.:03:17.

Foreign investors were unable to get access to the shares to buy or sell

:03:18.:03:22.

as they saw fit. This time the proposal was scaled down from over

:03:23.:03:29.

400 stocks to 169 stocks in the access issue was much less because

:03:30.:03:34.

those shares are accessible to foreign investors via Hong Kong.

:03:35.:03:42.

There were a couple of surprises in the announcement a few hours ago,

:03:43.:03:47.

instead of 169 different stock, it is now 222 stocks that are likely to

:03:48.:03:56.

be included into that MSCI index with a weighting of just under

:03:57.:04:05.

0.75%. With the inclusion of these Chinese A Shares, will that boost

:04:06.:04:12.

the stock price of these shares? In the short term, probably not. I

:04:13.:04:20.

would say that this is a significant move, certainly form of symbolic

:04:21.:04:24.

point of view to some say this is a watershed moment in the into into --

:04:25.:04:33.

for the into into an nationalisation. If you are a fund

:04:34.:04:39.

manager benchmarking your performance against this index then

:04:40.:04:42.

essentially you are being compelled to purchase the components of this

:04:43.:04:47.

index and it is expected that over the next decade it is likely to

:04:48.:04:52.

bring 400 billion US dollars worth of investment into mainland Chinese

:04:53.:04:57.

shares. That is a massive fortune, 400 billion US dollars that it but

:04:58.:05:02.

it is just a drop in the bucket when you consider that China's cup back

:05:03.:05:11.

in 7 trillion US dollars. Stock markets will be opening in about 55

:05:12.:05:15.

minutes so we will find out if this inclusion will have an impact. In a

:05:16.:05:21.

move that could see China play a bigger ruling carmaking for North

:05:22.:05:25.

America, Ford has moved some of the production for its focus model to

:05:26.:05:30.

the mainland. The shift in production will save the company $1

:05:31.:05:34.

billion and it comes off the back of a record year for four's sales in

:05:35.:05:42.

China. It is worse remembering that General motors already exports be

:05:43.:05:45.

weeks from China to America but this is the first time that the number to

:05:46.:05:49.

American carmaker will do so. They have said that no US employees will

:05:50.:05:56.

lose their jobs and it will have no effect on employment levels. This is

:05:57.:06:01.

the second major twist from Ford this year. The new Ford Focus was

:06:02.:06:08.

meant to be built in a $1.6 billion factory in the central state and

:06:09.:06:15.

when it was abandoned, hurting locals, it was seen as the time of a

:06:16.:06:22.

win for President Trump and approach to US companies and global trade.

:06:23.:06:28.

Having the car made in China instead was probably not what the White

:06:29.:06:34.

House was hoping for. Some auto jobs are headed to Asia and some of the

:06:35.:06:38.

call centre jobs are headed in the other direction. Horizon is bringing

:06:39.:06:46.

jobs from the Philippines back to the US. A more companies likely to

:06:47.:06:52.

follow this example? It is early afternoon here and it is knockoff

:06:53.:06:58.

time for these call centre employees who often worked the night shift.

:06:59.:07:04.

Most work for a company which lost a contract with Verizon. Jobs usually

:07:05.:07:10.

head on the other direction, but Horizon is hiring 1000 workers in

:07:11.:07:14.

the US and they are taking the jobs from here. So with Donald Trump to

:07:15.:07:27.

blame? We were informed of an agreement he had where people in the

:07:28.:07:31.

US were demanding that they no longer out first. -- outsourced.

:07:32.:07:42.

When a call centre pulls out in the Philippines we can get a job even

:07:43.:07:46.

though the pay is not the same. The company may transfer these workers

:07:47.:07:51.

onto other contacts but right now they are bracing for job losses.

:07:52.:07:55.

Verizon makes no suggestion that politics factors into the decision.

:07:56.:08:01.

Are workers are nervous about a president who rails against US jobs

:08:02.:08:05.

heading overseas to the US president has his name on the building behind

:08:06.:08:09.

me and it casts a long shadow over this part of town. The President

:08:10.:08:13.

himself casts a shadow over the industry. After all, he is the

:08:14.:08:18.

president who said to purchase American and higher American and

:08:19.:08:22.

most jobs are outsourced from the US. Analysts say the competitive

:08:23.:08:27.

wages and strong English-language schools should help to keep these

:08:28.:08:30.

companies are strong although there are some is short-term concerns.

:08:31.:08:34.

There are some companies that have delayed plans because they are

:08:35.:08:41.

uncertain about a border adjustment tax. The basic growth of the

:08:42.:08:46.

industry is continuing. One clear measure of the health of the

:08:47.:08:49.

industry is the office space it leases and that is not low down.

:08:50.:08:54.

With the amount of work that continues to flow through, based on

:08:55.:08:57.

the leases signed in the Philippines, we think that has not

:08:58.:09:01.

been affected. For the moment industry is confident it can weather

:09:02.:09:08.

any oncoming storm. In other business news making headlines,

:09:09.:09:12.

investors will keep an eye on the troubled electronic giants Toshiba

:09:13.:09:15.

this morning after reports that will sell its semiconductor business to a

:09:16.:09:18.

Japanese government led conglomerate which includes the state backed fund

:09:19.:09:29.

innovation network. US -- Toshiba needs to sell the unit to cover

:09:30.:09:34.

losses from its bankrupt US nuclear business. After months of delay,

:09:35.:09:39.

Tokyo's legendary PG Fish market will to a new site. The governor of

:09:40.:09:44.

Tokyo had postponed the move over safety concerns at the new location.

:09:45.:09:50.

But now the governor says the move will allow the current site to be

:09:51.:09:54.

redeveloped before the world-famous fishmarket returns. TRANSLATION: I

:09:55.:10:00.

have made a decision on basic policy of the redevelopment of the

:10:01.:10:06.

fishmarket, based on determination to uphold the brand and the

:10:07.:10:10.

tradition, created by Japan over the years and also by thinking of the

:10:11.:10:14.

next generation which must not inherit a negative legacy in the

:10:15.:10:18.

form of accumulating debt. I also hope that the brand will be the best

:10:19.:10:22.

in Japan and. It is something we can be proud of. From the market in

:10:23.:10:35.

Tokyo, let's look at the stock market. The nick a rebounded and the

:10:36.:10:41.

All Ordinaries lower by 115 because

:10:42.:10:42.

Download Subtitles

SRT

ASS