12/07/2017 Asia Business Report


12/07/2017

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


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

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appalling tragedy. Now on BBC News, all the latest

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

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

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

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

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

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

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

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

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rules which govern net neutrality. They claimed the new regulations

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

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

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

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

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net neutrality. Without it, campaigners worry that internet

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service providers might be able to intentionally slow down your

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internet connection unless you pay more for things like video

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

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

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

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instead. Throughout Wednesday, major internet companies will be

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

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hope that Americans will get in touch with their politicians to

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

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

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

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

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

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

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

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

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

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

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internet service providers to make back the money they invested in

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

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

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

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Communications commission will make its final decision before the end of

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

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

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

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

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

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

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

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

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

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

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

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

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

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deaths and more than 180 injuries worldwide. Takata filed for

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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seeing signs of a slowdown? According to the latest trade

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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workers who are committing to the Philippines, for the outsourcing

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

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

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

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

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

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

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

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

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

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crucial is that to develop a savvy understanding of social media

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

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

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

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

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

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

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

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

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

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

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transformation, digital transformation, there has actually

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

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

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

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Singapore. Sport Today is coming up next.

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

:11:00.:11:03.