Browse content similar to 06/07/2017. Check below for episodes and series from the same categories and more!
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Now on BBC News all the latest business news live from Singapore. | :00:00. | :00:15. | |
The owner of KFC, Pizza Hut and Taco Bell in China reports of strong | :00:16. | :00:24. | |
profits thanks to hungry consumers. And handmade guitars from the | :00:25. | :00:31. | |
Philippines. Turning to the Internet to save a vanishing craft. Good | :00:32. | :00:39. | |
morning, Asia and hello, world, glad you could join us for this edition | :00:40. | :00:44. | |
of Asia Business Report. It has been 30 years since the first KFC | :00:45. | :00:48. | |
restaurant opened in China. The company has come a long way and its | :00:49. | :00:54. | |
owner reported its latest results and the profit is up by nearly 40% | :00:55. | :01:00. | |
other than KFC it also owns Pizza Hut and Taco Bell. There are more | :01:01. | :01:08. | |
than 7600 outlets throughout the mainland. Consumers have shown their | :01:09. | :01:11. | |
appetite for Western-style fried chicken and pizza. Spinning off its | :01:12. | :01:17. | |
China business has certainly paid off. The sceptics were wrong. If you | :01:18. | :01:23. | |
look at China there is a yen to spend. Not only do they have a yen | :01:24. | :01:29. | |
to spend they also have you won. What we are seeing is that Chinese | :01:30. | :01:37. | |
consumers want to spend money. -- yuan to spend. Can this be sustained | :01:38. | :01:45. | |
bombing forward with the fast changing tastes of mainland | :01:46. | :01:48. | |
consumers? What we saw last night... We have to remember that Yum China | :01:49. | :01:55. | |
owns three brands. Taco Bell, Pizza Hut and KFC. I am getting hungry | :01:56. | :02:04. | |
now. What we saw that picture and chicken were flat. As a result, what | :02:05. | :02:10. | |
happens to Yum China is that all have to do well. Even though the | :02:11. | :02:13. | |
profits were good, we saw that sales were flat. So they had to offset the | :02:14. | :02:20. | |
weakness of each other. But 7600 stores and counting, this is a huge | :02:21. | :02:27. | |
chain in mainland China. Will new branches bring growth or drain the | :02:28. | :02:31. | |
cash flow? You could do a little bit of both. 30 years ago they had one | :02:32. | :02:36. | |
store. Now they have over 7000. That is in 30 years. They want to 600 | :02:37. | :02:44. | |
stores this year and that will be quite significant. The problem is | :02:45. | :02:47. | |
that they then start to cannibalise their own stores. What we are | :02:48. | :02:52. | |
focusing on at the moment are the first tier cities, Shanghai, Beijing | :02:53. | :02:58. | |
for example. But when we dropped to the legatees, it becomes a more | :02:59. | :03:03. | |
challenging. How about the stigmas of the food scandals from years ago. | :03:04. | :03:07. | |
Has that been forgotten? I think it has. Consumers are rolled by ruled | :03:08. | :03:13. | |
by their stomach rather than their head. Once they are hungry, they | :03:14. | :03:23. | |
will eat. There are occasionally food scares but they have been put | :03:24. | :03:27. | |
in the past and they are focusing on the future. Volvo, owned by China's | :03:28. | :03:33. | |
company has become the first carmaker to announce it will no | :03:34. | :03:39. | |
longer make petrol or diesel only vehicles. From 2019 all of their | :03:40. | :03:41. | |
models will be electric or hybrid. He drives up in a 19 oh weight model | :03:42. | :03:52. | |
T. The shape has changed a bit over the years but thank goodness when it | :03:53. | :03:56. | |
comes to the brown allegro. All these cars have one thing in common, | :03:57. | :04:01. | |
an internal combustion engine turning petrol or diesel. We have | :04:02. | :04:05. | |
relied on it for a century but is that about to change? Volvo is | :04:06. | :04:09. | |
taking a bold step, heralding the end of an era of the pure internal | :04:10. | :04:15. | |
combustion engine. From 2019, Volvo says all its new models will be at | :04:16. | :04:21. | |
least partly electric. Ambitious plans but experts say it won't be | :04:22. | :04:25. | |
quick. Diesel and petrol will have a long live in them yet. People choose | :04:26. | :04:31. | |
to adopt hybrids before they go electric. This sums up one of the | :04:32. | :04:37. | |
big street -- reasons why electric cars have not been adopted. Often | :04:38. | :04:44. | |
you cannot park near your house so how can you charge your electric | :04:45. | :04:49. | |
car? Cities are plagued by pollution with diesel engines one of the main | :04:50. | :04:54. | |
culprits. Electric cars are quieter and cleaner. They are getting | :04:55. | :04:59. | |
cheaper with a better range. It will still be some years before the | :05:00. | :05:01. | |
internal combustion engine drives off for good. | :05:02. | :05:05. | |
If you like beef and chicken it is likely you have eaten a Brazilian | :05:06. | :05:12. | |
product in recent months. The country accounts for almost one | :05:13. | :05:16. | |
fifth of all meat exporter in the world. Of this year, local police | :05:17. | :05:23. | |
unveiled a bribery scheme where health officials allow tainted meat | :05:24. | :05:26. | |
to reach school meals and supermarket shelves. Companies | :05:27. | :05:32. | |
involved denied wrong doing the shares plunged by 40%. Can the | :05:33. | :05:39. | |
reputation big repaired? -- be repaired? The cattle here roam free | :05:40. | :05:51. | |
in the fields. Since Brazil's GBS codes down the local meat processing | :05:52. | :05:57. | |
plant, ranches here have no-one to sell me too. TRANSLATION: This is | :05:58. | :06:04. | |
not foot and mouth disease. This was caused by corporate corruption. The | :06:05. | :06:09. | |
prices have fallen sharply. Farmers like this man are part of an army of | :06:10. | :06:14. | |
4 million people who helped to turn Brazil into one of the top meat | :06:15. | :06:19. | |
producing nations in the world. Now a scandal involving a leading | :06:20. | :06:22. | |
company down here is bringing uncertainty to what was once an very | :06:23. | :06:26. | |
profitable business. All those they say food safety was not compromised, | :06:27. | :06:34. | |
negative headlines are taking their toll on the meat industry. | :06:35. | :06:38. | |
Transocean Mack the Brazilian government needs to act to get the | :06:39. | :06:42. | |
message across that much Brazilian mate is safe for consumption and | :06:43. | :06:46. | |
defend its reputation. But with the government at war against the | :06:47. | :06:49. | |
country's top meat country, that is unlikely to happen any time soon. | :06:50. | :06:57. | |
That war now has millions of farmers worried about the future of their | :06:58. | :07:01. | |
businesses. A reputation that took decades to establish will take years | :07:02. | :07:15. | |
to repair. A city in the Philippines considers itself the guitar country | :07:16. | :07:25. | |
of -- centre of the country. They have been given access to new | :07:26. | :07:28. | |
markets via the Internet that they face unique challenges. | :07:29. | :07:38. | |
When karaoke came, people started singing karaoke instead of the | :07:39. | :07:48. | |
guitar. There is a karaoke every 50 metres. We Filipinos, we love to | :07:49. | :07:55. | |
seeing. One of the biggest challenges is the factory produced | :07:56. | :07:57. | |
guitars. We prioritise quality over quantity. | :07:58. | :08:15. | |
We would like to show everyone that there are still Filipino maid | :08:16. | :08:17. | |
guitars that are very good quality. Handcrafted guitars are so much | :08:18. | :08:31. | |
better in terms of quality. The way we build our guitars is actually | :08:32. | :08:35. | |
done by a single luthier, from start to finish. That makes it unique and | :08:36. | :08:43. | |
a work of art. No two guitars are alike. | :08:44. | :08:50. | |
70% of the guitars and ukuleles are online and the rest are walk-in | :08:51. | :09:02. | |
customers. Like before where the clients we get a mostly from the | :09:03. | :09:07. | |
Philippines, it is easier for us to showcase our products and our with | :09:08. | :09:08. | |
everything online. We have one brand, we ship the item | :09:09. | :09:30. | |
without strings. And they slap the Rembrandt on it. There are other | :09:31. | :09:34. | |
ones we were gone from start to finish and wish it goes direct to | :09:35. | :09:39. | |
the customer. There are less and less people working on this craft. | :09:40. | :09:46. | |
The skill is not being passed from one generation to another. Even | :09:47. | :09:49. | |
though we can train them, the interest is not there. We hold onto | :09:50. | :09:54. | |
our passion of making quality instruments. Let the people | :09:55. | :09:58. | |
understand that there are still handcrafted instruments like that. | :09:59. | :10:04. | |
Beautifully made handcrafted guitars and ukuleles from the Philippines. | :10:05. | :10:12. | |
Before we go, let's have a look at the markets. | :10:13. | :10:19. | |
The All Ordinaries is down because petroleum producers have lost steam | :10:20. | :10:27. | |
after an eight session winning streak. Thank you for investing your | :10:28. | :10:30. | |
time with us. The top stories this hour: | :10:31. | :10:35. | |
At the United Nations, the US ambassador has described | :10:36. | :10:38. | |
North Korea's intercontinental ballistic missile test as a sharp | :10:39. | :10:41. | |
military escalation. Heavy floods caused by unprecedented | :10:42. | :10:46. | |
rain have forced almost 400,000 | :10:47. | :10:50. |