12/07/2017 Asia Business Report

Download Subtitles




Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.

Similar Content

Browse content similar to 12/07/2017. Check below for episodes and series from the same categories and more!



scandal will give answers to what the Prime Minister has called the


appalling tragedy. Now on BBC News, all the latest


business news live from Singapore. It is a day of protest for big


online companies. Find out why the likes of Amazon and Netflix are


battling US rules on internet use. And China is spending billions on


new aircraft but it may face a pilot shortage in the years to come. Good


morning, Asia, hello, world. Glad you could join us for this edition


of Asia Business Report. I am Rico Hizon. Some of the most popular


websites may be slower to day. Companies like Facebook, Netflix and


Amazon are taking part in a protest against changes being made to US


rules which govern net neutrality. They claimed the new regulations


will give the cable companies control over what its users see and


do. Our North America technology correspondent explains. Right now,


all internet traffic is treated the same, no matter where it has come


from, where it is going, or what it is doing. That is something we call


net neutrality. Without it, campaigners worry that internet


service providers might be able to intentionally slow down your


internet connection unless you pay more for things like video


streaming, or they warned that could be some kind of internet fast lane,


where big, rich companies could pay to make sure their sites loaded


quickly, but other, smaller sites would be stuck in a slow lane


instead. Throughout Wednesday, major internet companies will be


simulating what it would be like to slow down their websites, in the


hope that Americans will get in touch with their politicians to


pressure them into supporting net neutrality. Over 70,000 websites


will be pushing people towards the FCC to make their voices heard. It


will also be pushing people towards numbers of Congress, and what we


want the FCC to hear, what we want members of Congress to hear, is that


net neutrality is wildly popular, which it is, and we want them to


stop trying to murder it. But net neutrality does have some very


powerful opponents. It includes companies like Verizon, IBM, Cisco,


Nokia, and crucially the head of the FCC has also spoken out against net


neutrality. Those who are against it say it adds unnecessary new


regulation to the internet. They say net neutrality makes it harder for


internet service providers to make back the money they invested in


building the infrastructure that gives people a high-speed internet.


Politicians, companies and the US public have up until August 16 to


make their views on the issue is clear. Then, the Federal


Communications commission will make its final decision before the end of


this year. In other business news making headlines, music streaming


service Spotify has seen its deal with Sony music. Spotify will


restrict access to its albums on the premium service for two weeks.


Royalty payments other company's largest expense. The company, which


is yet to turn a profit, is said to be laying the groundwork for an


initial public offering. Here is another twist in the battle for


Toshiba's business. A temporary US court order has been granted to give


access to Toshiba's databases and chip samples. Toshiba had earlier


threatened to stop a company from having access, because it wants to


block the sale of its chip business to a Japanese government linked


consortium. Staying in Japan, Takata is reporting 3 billion more airbags


in the United States. Around 46 million have already been recalled,


the largest in history. The defective product is linked to 17


deaths and more than 180 injuries worldwide. Takata filed for


bankruptcy protection last month. China is set to become the world's


biggest aviation market over the next few decades, and it is already


on a buying spree. Boeing China airlines will spend $1 trillion


buying airlines, not just blowing ones, over the next 20 years, but


will China's infrastructure be able to keep up -- Boeing ones. There


will be some struggles. That is the huge issue. One of the other things


Boeing puts out as well as a survey of pilots, Boeing estimates that


China will need well over 100,000 pilots. Not just pilots. Pilots are


the cool job in the industry. You also need people to maintain the


aircraft, so there is a lot of opportunity to employ people in the


industry. There may not be enough supply of pilot's and maintenance


people in China itself, especially good talent. They have to look


outside of the mainland. They are indeed. There was an ad recently


4737 captains in an outlying province in China -- for 737


captains. It is a very good pay package for that kind of aircraft.


You would be living in the hinterlands of China, you might be


away from your family, if you are a foreign pilot. So there would be


some sacrifices, but there are a lot of foreign pilots in China and


emerging markets around the region. Are the big question is now, of


course, with all of these new aircraft coming onstream in China,


what about the safety record? China is quite aggressive about its safety


record. They have a lot of rules and restrictions. They govern the


airspace very tightly but there are concerns that pilots might be a bit


overworked in China. There are some concerns that pilots might be over


penalise if they have a hard landing or something like that. So there are


some cultural issues around pilots in China that make it challenging.


And what about the infrastructure? Is a growing together with a number


of aircraft that have been ordered? China is adding more airports across


the region. The problem is they don't have a lot of traffic. They


might be a bit of overinvestment. The major centres, Shanghai,


Beijing, they struggle to keep up with that traffic. The Philippines


has been one of Asia's fastest growing economies in 2013, but is it


seeing signs of a slowdown? According to the latest trade


figures its deficit jumped to $2.8 billion in May, the biggest gap


since data was recorded in 1980. The trade numbers led to a sell-off of


the Philippine peso, which dropped to its lowest level against the US


dollar since 2006, and that is a nine-year low. Earlier I asked our


correspondent what is happening. It is partly a reflection of the trade


deficit that we got yesterday, and that is coming back after a few


sessions, may be almost a month now the peso has been underperforming on


the lack of science it has been stabilising. It is not just a trade


deficit. Since President Duterte took office, we have seen the


depreciation of the peso. Is there also a political risk being included


in the week currency? Yes, I agree. There is some political risk which


is being priced in, I think a lot of it has to do with the uncertainty of


the new government under President Duterte and what sort of reforms he


can carry over from the past, and whether he can really implement


them. I think slowly that uncertainty is coming off, but now


we are having a lot of these trade numbers that are kind of an


expanding deficit, but also the BSB looking like they are not going to


hike rates any time soon, which is what a lot of people expected. So


why are we seeing the central bank of the Philippines intervening to


stem the peso's for? I think they have the ammunition to do it,


because they have a lot of reserves at the moment. But I think the fact


they have allowed it to weaken so far is because they are a little bit


relaxed about how much inflationary consequences are weak peso has. And


it is positive for incomes, because purchasing power becomes higher. So


it is also a double-edged sword. It is good for overseas Filipino


workers who are committing to the Philippines, for the outsourcing


sector, but not so good for foreign investors who are sending money back


to their home countries. This is where there is a lot of concern


about the currency. Given its fundamentals, and the fact it is


still underperforming, does not go well with what markets are expecting


at the moment. So I think, provided things will be stable and the BSB


comes in from time to time to keep it from fluctuating too much, I


think that will stem that. What do you think of the peso by year's and?


Right now forecast is for 49.5, so we are seeing a bit of appreciation


from here. Social media can have an impact on politics and business. How


crucial is that to develop a savvy understanding of social media


platforms? Here is a review from a representative of Hootsuite. It has


changed the face of politics, it has changed the face of business, and


every single piece of the customer journey is there. Back a number of


years ago, we would dial in 1800 call number to connect and get


customer support. The generation which is growing up will not do


that. They will go to social media, they will ask for transparency, they


will ask for immediacy, and brands need to be there. The businesses


that don't get there, they risk becoming obsolete. Financial


services industry. You think that would be a laggard, you would think


that would be an industry, but because they are facing such


transformation, digital transformation, there has actually


been an amazing adoption of social media. And that was Ryan Holmes of


Hootsuite. And with that we and this edition of Asia Business Report.


Thank you for investing your time with us. I am Rico Hizon in


Singapore. Sport Today is coming up next.


The top stories this hour: President Trump's son has released