12/07/2017 Asia Business Report


12/07/2017

Similar Content

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

Transcript


LineFromTo

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

:00:00.:00:00.

appalling tragedy. Now on BBC News, all the latest

:00:00.:00:00.

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

:00:00.:00:20.

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

:00:21.:00:26.

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

:00:27.:00:30.

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

:00:31.:00:43.

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

:00:44.:00:48.

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

:00:49.:00:53.

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

:00:54.:00:58.

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

:00:59.:01:02.

rules which govern net neutrality. They claimed the new regulations

:01:03.:01:06.

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

:01:07.:01:11.

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

:01:12.:01:15.

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

:01:16.:01:19.

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

:01:20.:01:23.

net neutrality. Without it, campaigners worry that internet

:01:24.:01:27.

service providers might be able to intentionally slow down your

:01:28.:01:30.

internet connection unless you pay more for things like video

:01:31.:01:34.

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

:01:35.:01:39.

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

:01:40.:01:43.

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

:01:44.:01:48.

instead. Throughout Wednesday, major internet companies will be

:01:49.:01:51.

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

:01:52.:01:55.

hope that Americans will get in touch with their politicians to

:01:56.:01:59.

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

:02:00.:02:03.

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

:02:04.:02:07.

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

:02:08.:02:11.

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

:02:12.:02:15.

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

:02:16.:02:19.

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

:02:20.:02:22.

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

:02:23.:02:30.

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

:02:31.:02:33.

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

:02:34.:02:38.

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

:02:39.:02:41.

internet service providers to make back the money they invested in

:02:42.:02:44.

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

:02:45.:02:48.

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

:02:49.:02:53.

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

:02:54.:02:57.

Communications commission will make its final decision before the end of

:02:58.:03:02.

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

:03:03.:03:12.

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

:03:13.:03:18.

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

:03:19.:03:21.

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

:03:22.:03:26.

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

:03:27.:03:29.

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

:03:30.:03:36.

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

:03:37.:03:40.

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

:03:41.:03:48.

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

:03:49.:03:52.

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

:03:53.:03:59.

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

:04:00.:04:04.

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

:04:05.:04:07.

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

:04:08.:04:12.

deaths and more than 180 injuries worldwide. Takata filed for

:04:13.:04:15.

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

:04:16.:04:20.

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

:04:21.:04:27.

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

:04:28.:04:31.

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

:04:32.:04:37.

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

:04:38.:04:44.

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

:04:45.:04:48.

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

:04:49.:04:52.

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

:04:53.:04:57.

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

:04:58.:05:01.

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

:05:02.:05:05.

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

:05:06.:05:08.

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

:05:09.:05:12.

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

:05:13.:05:18.

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

:05:19.:05:26.

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

:05:27.:05:29.

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

:05:30.:05:34.

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

:05:35.:05:38.

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

:05:39.:05:41.

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

:05:42.:05:45.

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

:05:46.:05:49.

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

:05:50.:05:54.

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

:05:55.:05:57.

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

:05:58.:06:01.

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

:06:02.:06:04.

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

:06:05.:06:09.

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

:06:10.:06:13.

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

:06:14.:06:18.

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

:06:19.:06:22.

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

:06:23.:06:27.

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

:06:28.:06:33.

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

:06:34.:06:37.

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

:06:38.:06:43.

seeing signs of a slowdown? According to the latest trade

:06:44.:06:45.

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

:06:46.:06:51.

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

:06:52.:06:57.

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

:06:58.:07:00.

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

:07:01.:07:06.

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

:07:07.:07:11.

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

:07:12.:07:16.

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

:07:17.:07:22.

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

:07:23.:07:27.

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

:07:28.:07:31.

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

:07:32.:07:36.

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

:07:37.:07:40.

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

:07:41.:07:44.

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

:07:45.:07:47.

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

:07:48.:07:51.

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

:07:52.:07:54.

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

:07:55.:08:00.

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

:08:01.:08:06.

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

:08:07.:08:10.

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

:08:11.:08:17.

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

:08:18.:08:20.

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

:08:21.:08:24.

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

:08:25.:08:28.

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

:08:29.:08:35.

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

:08:36.:08:39.

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

:08:40.:08:45.

workers who are committing to the Philippines, for the outsourcing

:08:46.:08:50.

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

:08:51.:08:53.

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

:08:54.:08:56.

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

:08:57.:09:00.

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

:09:01.:09:04.

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

:09:05.:09:10.

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

:09:11.:09:16.

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

:09:17.:09:23.

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

:09:24.:09:28.

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

:09:29.:09:36.

crucial is that to develop a savvy understanding of social media

:09:37.:09:43.

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

:09:44.:09:50.

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

:09:51.:09:53.

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

:09:54.:09:58.

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

:09:59.:10:03.

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

:10:04.:10:08.

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

:10:09.:10:11.

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

:10:12.:10:15.

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

:10:16.:10:24.

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

:10:25.:10:27.

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

:10:28.:10:32.

transformation, digital transformation, there has actually

:10:33.:10:35.

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

:10:36.:10:47.

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

:10:48.:10:50.

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

:10:51.:10:55.

Singapore. Sport Today is coming up next.

:10:56.:10:59.

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

:11:00.:11:03.

Download Subtitles

SRT

ASS