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Now on BBC News, all the latest business news live from Singapore. | :00:00. | :00:14. | |
America first or made in India? Well Trump hails Narendra Modi for | :00:15. | :00:24. | |
boosting the economy, there are several thorny issues which could | :00:25. | :00:28. | |
make for an uncomfortable visit. And as we mark the 20th anniversary of | :00:29. | :00:32. | |
the Asian financial turmoil, we met with South Koreans who sacrifices | :00:33. | :00:38. | |
were worth their weight in gold. -- whose sacrifices. Good morning Asia, | :00:39. | :00:47. | |
hello world. It is a Tuesday. Glad you could join us for this edition | :00:48. | :00:54. | |
of Asia Business Report. I am Rico Hizon and as we recorded on Newsday, | :00:55. | :00:59. | |
Narendra Modi has just met with Donald Trump at the White House. | :01:00. | :01:02. | |
Both men portray themselves as outsiders and promised to bring back | :01:03. | :01:06. | |
jobs during their campaigns. President Trump had this to say | :01:07. | :01:11. | |
about his counterpart. Thank you very much. It is a great honour to | :01:12. | :01:15. | |
have Prime Minister Narendra Modi of India, who has been such a great | :01:16. | :01:20. | |
prime minister. I have been speaking of him and reading about you, and | :01:21. | :01:23. | |
you have done a great job economically, and India is doing | :01:24. | :01:28. | |
very well, and in so many other ways. So I would like to | :01:29. | :01:32. | |
congratulate you. I would like to congratulate you very much. Well, | :01:33. | :01:39. | |
despite the praise, there are some thorny issues that they need to | :01:40. | :01:43. | |
address. But, as our North America business correspondent told me | :01:44. | :01:48. | |
earlier, Prime Minister Narendra Modi did not waste his time meeting | :01:49. | :01:51. | |
with some take bosses in Silicon Valley before meeting with the | :01:52. | :01:57. | |
President. Modi made a stop on Sunday where he met with some | :01:58. | :02:01. | |
executives of big American tech companies. Obviously the two have a | :02:02. | :02:08. | |
close tie, these two countries, in part. Many of the American | :02:09. | :02:13. | |
technology giants depend a lot on intellectual capital, if you like, | :02:14. | :02:17. | |
that comes from technology workers from India. That is actually one of | :02:18. | :02:22. | |
the sources of tension when he met with Donald Trump. They were keen to | :02:23. | :02:30. | |
downplay the issue of the H-1B these are when the two met a short while | :02:31. | :02:35. | |
ago. When they stood at the podium and gave their speech Donald Trump | :02:36. | :02:39. | |
gave a joking reference to the fact that he wanted America to be as | :02:40. | :02:44. | |
fast-growing as the Indian economy was, and he hoped that certainly it | :02:45. | :02:50. | |
could start to see the rapid increase in GDP growth that India | :02:51. | :02:54. | |
was currently enjoying. And currently that H-1B these are's | :02:55. | :03:01. | |
status is under review by the Trump administration and during his visit | :03:02. | :03:05. | |
both countries will try and come up with a middle ground. Yes, watching | :03:06. | :03:10. | |
these two leaders speak, they were keen to emphasise what the countries | :03:11. | :03:15. | |
have in common and to avoid going too dip into some of the trade | :03:16. | :03:18. | |
tensions which exist. You mentioned the H-1B Visa. That is one area I | :03:19. | :03:25. | |
suspect that Narendra Modi was keen not to push too hard, this programme | :03:26. | :03:29. | |
which allows American companies to hire hi-tech workers from abroad, | :03:30. | :03:34. | |
who may be paid less. It certainly has benefited Indian workers. About | :03:35. | :03:41. | |
70% of those visas go to Indian nationals. In particular that has | :03:42. | :03:45. | |
benefited Indian technology companies, not at this meeting, like | :03:46. | :03:49. | |
I say, they didn't want to dwell on it too much. It makes for a | :03:50. | :03:53. | |
difficult meeting at a time when Donald Trump has emphasised America | :03:54. | :03:57. | |
first and talked tough on immigration. So this was really all | :03:58. | :04:01. | |
about trying to emphasise what these countries have in common. Now to the | :04:02. | :04:07. | |
latest developments with the UK's decision to leave the EU and the | :04:08. | :04:11. | |
government has outlined in some detail what will happen to EU | :04:12. | :04:16. | |
citizens in the UK once Brexit happens. Here is the Prime Minister | :04:17. | :04:21. | |
speaking earlier. I know there has been some anxiety about what would | :04:22. | :04:25. | |
happen to EU citizens at the point we leave the European Union. Today I | :04:26. | :04:31. | |
want to put that anxiety to rest. I want to completely reassure people | :04:32. | :04:36. | |
that under these plans no EU citizen currently in the UK lawfully will be | :04:37. | :04:40. | |
asked to leave at the point the UK leads the EU. We want you to stay. | :04:41. | :04:44. | |
In other business news making headlines, troubled electronics | :04:45. | :04:52. | |
giant Toshiba will sell its business as early as today. They have been in | :04:53. | :04:57. | |
final negotiations with a group led by the Japanese government. And the | :04:58. | :05:01. | |
summer meeting of the World Economic Forum is taking off today. At this | :05:02. | :05:05. | |
year's event, innovation and sustainability rank high on the | :05:06. | :05:09. | |
agenda and according to industry research China is now home to almost | :05:10. | :05:16. | |
100 unicorns, private companies worth more than 1 billion US | :05:17. | :05:19. | |
dollars, and their combined value is estimated to be a staggering 445 | :05:20. | :05:26. | |
billion US dollars. Earlier I spoke to our correspondent about | :05:27. | :05:30. | |
innovation with a Chinese touch. There is a lot under discussion, | :05:31. | :05:36. | |
about things like Artificial Intelligence. I think there are | :05:37. | :05:43. | |
three different panels on AI and the impact AI will have. So innovation | :05:44. | :05:48. | |
and automation and AI are big on the agenda as well as China's role in | :05:49. | :05:52. | |
the world. Are western countries now viewing China as a country of | :05:53. | :05:58. | |
innovation, or is it still being branded as a land of copycats? I | :05:59. | :06:02. | |
think there still is a belief that China is a land of copycats, but I | :06:03. | :06:07. | |
think that was five or ten years ago. You have now... I heard about a | :06:08. | :06:12. | |
company in the States two weeks ago which is trying to emulate a | :06:13. | :06:17. | |
communications platform in China so we now have western companies going | :06:18. | :06:23. | |
to China for ideas. Things like financial services and payment | :06:24. | :06:26. | |
technologies in China are far ahead of the West. But how does China | :06:27. | :06:34. | |
right now, Tony, stacked up in terms of innovation vis-a-vis the | :06:35. | :06:37. | |
Japanese, the South Koreans, the Americans and the western Europeans? | :06:38. | :06:42. | |
When you look at things like intellectual property and patent and | :06:43. | :06:45. | |
that kind of thing, China is now ahead of all of them except the US. | :06:46. | :06:51. | |
It is expected to catch up with the US at some point. The real issue is | :06:52. | :06:55. | |
around the efficacy of those patterns. How often are they | :06:56. | :07:00. | |
referenced, how powerful are they, that sort of thing -- patents. They | :07:01. | :07:08. | |
are not there in terms of number, but they are getting there. And as | :07:09. | :07:12. | |
we mentioned yesterday, it is nearly 20 years since the Asian financial | :07:13. | :07:17. | |
crisis and during that time banks throughout Southeast Asia were in | :07:18. | :07:21. | |
danger of collapsing. South Korea was brought to its knees and | :07:22. | :07:24. | |
accepted a bailout from the International Monetary Fund. The | :07:25. | :07:28. | |
nation's women donated their own gold to help protect the economy. | :07:29. | :07:34. | |
Our correspondent Steve Evans met with one of the women. 20 years ago, | :07:35. | :07:42. | |
ordinary citizens took the wedding rings from their fingers and gave | :07:43. | :07:47. | |
them away to their country. TV campaigns mobilised South Korea as | :07:48. | :07:53. | |
it ran out of money to buy imports. Banks were on the verge of | :07:54. | :07:58. | |
bankruptcy. A third of the country's biggest conglomerates were bankrupt. | :07:59. | :08:03. | |
One of the ordinary people who stepped in was this woman. She was | :08:04. | :08:11. | |
honoured later for her patriotism. TRANSLATION: We gave rings that were | :08:12. | :08:15. | |
gifts when our children were born, and when I got married. They had | :08:16. | :08:20. | |
great sentimental value, but we decided to sell them to save the | :08:21. | :08:26. | |
nation. So, 20 years on, was it all worth it? TRANSLATION: Of course it | :08:27. | :08:31. | |
was worth it. I believe we played a part in helping the country at a | :08:32. | :08:37. | |
time of crisis. I have no regrets, and I still feel proud about it. But | :08:38. | :08:43. | |
there was also opposition at the time, as belts were tightened. | :08:44. | :08:48. | |
Government spending was cut. Painful change was made. In return for | :08:49. | :08:54. | |
which, the IMF stepped in with $60 billion. This man was the Korean | :08:55. | :09:03. | |
ambassador who did the deal. Panic, a sense of panic. It was regionwide. | :09:04. | :09:13. | |
That is why it they call it the Asian financial crisis. It was just | :09:14. | :09:18. | |
a great nightmare. That nightmare is over. Just look around you. This | :09:19. | :09:24. | |
country thrives. The crisis was caused primarily because the banks | :09:25. | :09:28. | |
were unstable. They had lent much money. Sure, the IMF came with its | :09:29. | :09:35. | |
help, and sure, the people gave their gold. But governments here | :09:36. | :09:41. | |
also restructured the economy. Patriotism, certainly, but more | :09:42. | :09:50. | |
importantly, better policy. And tomorrow, Wednesday, we will be | :09:51. | :09:54. | |
looking at the struggles faced the Indonesian economy during the | :09:55. | :09:58. | |
financial turmoil, and it is to recovery for closer look at how far | :09:59. | :10:03. | |
these economies have come two decades after the Asian financial | :10:04. | :10:06. | |
crisis. Tune into our special programme going out this weekend, | :10:07. | :10:11. | |
starting on Saturday. And before we go, here is a look at the markets. | :10:12. | :10:15. | |
Let's have a quick look where they stand in early Asian trade. Some | :10:16. | :10:20. | |
unpredictability. The Nikkei 225 up, the All Ordinaries down. This | :10:21. | :10:27. | |
despite Wall Street closing volatile with defensive sectors emerging as | :10:28. | :10:30. | |
the best performers. Thank you so much for investing your time with | :10:31. | :10:34. | |
us. I am Rico Hizon. Sport | :10:35. | :10:35. |