17/07/2017 Asia Business Report


17/07/2017

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


Similar Content

Browse content similar to 17/07/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

China is about to reveal its latest gross numbers. Will it show the

:00:17.:00:23.

economy slowing down of stabilising? We visit somebody that helps capture

:00:24.:00:28.

the imagination of millions of fans around the world. Good morning Asia,

:00:29.:00:43.

hello world. It's's the start of a brand-new trading week, glad you

:00:44.:00:48.

could join us. Very soon, China will be unveiling its latest economic

:00:49.:00:51.

growth numbers. Officials say they are changing the way they calculate

:00:52.:00:55.

what makes up the economy, by including contributions from

:00:56.:01:00.

healthcare, tourism and the new economy. The last time Chinese

:01:01.:01:05.

authorities changed how their GDP was calculated was in 2002. This

:01:06.:01:10.

will give us a better indication of how well the mainland guru from

:01:11.:01:20.

April- June this year. Earlier, the China economist with HSBC told me

:01:21.:01:23.

that this reflects the Chinese transitioning

:01:24.:01:25.

economy. We have seen over the past two years that the new economy set

:01:26.:01:34.

is in hiring and manufacturing have been outperforming the rest of the

:01:35.:01:38.

economy. A lot of them are growing in double digits. Even though they

:01:39.:01:43.

are starting from relatively modest sizes, on the whole, they are of a

:01:44.:01:51.

sufficient size to be recognised. Healthcare, tourism and economy,

:01:52.:01:57.

will this bump up economic growth for the Chinese economy in the

:01:58.:02:05.

long-term or the medium-term? The statistical calculations have shown

:02:06.:02:08.

that the immediate impact may not be as big. We are expecting GDP to be

:02:09.:02:15.

6.8% for the second quarter of this year, a very marginal slowdown from

:02:16.:02:19.

the first quarter at 6.9. There is no doubt that over the medium term,

:02:20.:02:22.

this will be a very significant shift. It reflects a strong

:02:23.:02:26.

transformation of the Chinese economy. When is a significant

:02:27.:02:31.

shift, how many percentage points could this add to growth? It is

:02:32.:02:35.

difficult to say at this point, we are still forecasting very much into

:02:36.:02:41.

the future. To give you a sense, we're looking at manufacturing and

:02:42.:02:46.

services sectors growing in double digits year over year. Traditional

:02:47.:02:54.

manufacturing sectors, up until last, were still facing deflation.

:02:55.:03:03.

The diverters between the sectors, new growth and traditional

:03:04.:03:06.

businesses, are actually quite stark. I think over time it will be

:03:07.:03:12.

a significant contribution. In other business headlines: Ahead

:03:13.:03:20.

of the second round of Brexit talks, the British Chancellor has told the

:03:21.:03:25.

BBC that businesses are holding off from investing in the UK because of

:03:26.:03:29.

concern about the exit. I think it is absolutely clear that businesses,

:03:30.:03:34.

where they had discretion over investment and they can hold off,

:03:35.:03:37.

they are doing so. You can understand why. They are waiting for

:03:38.:03:41.

more clarity about what the future relationship with Europe will look

:03:42.:03:45.

like. The way to get the economy moving, to restore business

:03:46.:03:50.

confidence and consumer confidence, is to give as much clarity as

:03:51.:03:55.

possible as early as possible, which is why I have been talking of the

:03:56.:03:59.

last four or five weeks of the importance of a transition

:04:00.:04:03.

arrangement. I believe the great majority of my colleagues now

:04:04.:04:07.

recognise that that is the right and sensible way to go, both in the UK

:04:08.:04:09.

and the European Union. Uber's biggest rival in Southeast

:04:10.:04:21.

Asia could be about to get a big financial injection. They could be

:04:22.:04:28.

seeing a $2 billion investment in the company. If it goes ahead, it

:04:29.:04:33.

would make Grabbed the most valuable start up in the region at $5 billion

:04:34.:04:41.

US. One company has decided to go on strike for the 50 year in a row over

:04:42.:04:46.

negotiations for better pay. They are making better plans for the

:04:47.:04:49.

staff walkouts. Property developers in Asia have not had an easy time

:04:50.:04:56.

over the past few years. From China to Singapore, governments have

:04:57.:05:00.

proposed initiatives to prevent property prices from inflating. It

:05:01.:05:05.

has worked, but has caused prices to become deflated. One in developer

:05:06.:05:15.

for opportunity in Nantes. In this week's To Minutes With, we speak to

:05:16.:05:19.

one executive. Yet another new building to add to

:05:20.:05:25.

the Singapore skyline. It is being put up I am Australian property

:05:26.:05:29.

developer. I am speaking to the CEO of Asia, Tony Lombard oh. Thank you

:05:30.:05:37.

for joining us. Here in Asia, you are looking to expand, but this

:05:38.:05:41.

comes after years of cooling measures being put in place by

:05:42.:05:44.

governments, trying to stop a property bubble. Why Asia? We have

:05:45.:05:51.

been in Asia for 44 years, we thought it was the right time for

:05:52.:05:55.

this project, which we brought back in 2015. Ultimately it stems from

:05:56.:06:05.

being a multigenerational company in this new and vibrant community. That

:06:06.:06:10.

is a bit of a challenge, because if you build it, will they necessarily

:06:11.:06:15.

come? The great thing is that we want a retail and residential cycle

:06:16.:06:27.

today, and we have seen are starting to pick up. We are pretty confident

:06:28.:06:31.

on the Singapore market. We think it is going to start turning and

:06:32.:06:35.

growing from this point on. The other thing you are doing is you are

:06:36.:06:42.

trying to target the elderly market, that is a problem in Asia. Tell us

:06:43.:06:46.

how you are doing that? In Australia, we are the largest owner

:06:47.:06:50.

and operator. It has been a core part of our business. China has a

:06:51.:06:56.

great need for singular living product. We will see a huge increase

:06:57.:07:02.

in people over 65 in China. They are aiming to really drive back to

:07:03.:07:08.

private industry. We feel there is a great opportunity for us to use our

:07:09.:07:12.

skill sets and bring our owner- operator approach to China. We do

:07:13.:07:18.

that interest rates are on the rise in the US and elsewhere. How is that

:07:19.:07:22.

going to impact your business? Globally we have been adjusting to

:07:23.:07:26.

that strategy for quite a while. Clearly for us as a business, we

:07:27.:07:31.

have been trying to diversify our portfolio and make sure we are

:07:32.:07:35.

taking the right opportunities at the right time to grow our portfolio

:07:36.:07:49.

internationally. Game of Thrones debuts its seven season tonight, and

:07:50.:07:56.

it has a huge following. Many of the iconic props used in the show were

:07:57.:07:59.

made in India. Over six seasons, television fans

:08:00.:08:13.

have seen Game of Thrones capture the imagination of millions of

:08:14.:08:19.

people. Far from the seven kingdoms, the costumes, is that an authentic

:08:20.:08:24.

armoury that feature in the show are serious business for a few firms in

:08:25.:08:31.

India. It is not just Game of Thrones. This man supplies props too

:08:32.:08:39.

many Hollywood productions, from the avengers and gladiator to the Star

:08:40.:08:44.

Wars franchise. It is only India and the subcontinent which has the art

:08:45.:08:48.

of hand embroidery. They can't get it in the West. That is why we do

:08:49.:08:54.

embroidery and we do anything that is very handmade, it is very period

:08:55.:09:01.

looking. I'm in heaven, I don't know where to begin. I have just spotted

:09:02.:09:06.

a prop from Gamer thrones, but nothing can beat John Snow. Here is

:09:07.:09:13.

my chance to try my hand at his cloak. It is fairly heavy, I don't

:09:14.:09:19.

know how he does it. I even have his sword. And what is John Snow without

:09:20.:09:28.

his trusty weapon? This is where his swords are made. The largest factory

:09:29.:09:31.

of its kind, located in the foothills of the Himalayas. They

:09:32.:09:38.

make every type of thought, from heavy steel to light titanium. It

:09:39.:09:43.

supplies two armies around the world, but it swords are not sold

:09:44.:09:49.

commercially in India. What we possess is only I would say, 2%.

:09:50.:09:54.

Sometimes it can stretch into 30%, it depends on the movie. But it is

:09:55.:10:00.

mostly seasonal. This army business is not seasonal. Is the details that

:10:01.:10:08.

make a story, live on the big screen. As long as the big battles

:10:09.:10:17.

go on, it means more business on the workflow here. -- these. Time for a

:10:18.:10:21.

quick look at the market is now. We are seeing some cautiousness

:10:22.:10:35.

among investors as they await the Chinese growth numbers later today.

:10:36.:10:38.

Thank you very much for investing your time with us. Have a product on

:10:39.:10:44.

Monday. -- productive Monday.

:10:45.:10:51.