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Now on BBC News, all the latest business news live from Singapore. | :00:00. | :00:18. | |
Downgraded. Toshiba moves off the main stock board of Tokyo because of | :00:19. | :00:28. | |
financial problems. And a snap deal going at a loan after calling off a | :00:29. | :00:35. | |
sale to a rival, Flipcart. Good morning, Asia. Hello, world. Welcome | :00:36. | :00:38. | |
to another edition of Asia Business Report. It's a Tuesday. I'm | :00:39. | :00:41. | |
Sharanjit Leyl. We will start with the ongoing problems around the tech | :00:42. | :00:52. | |
giant Toshiba. The markets opened for trade and its shares got demoted | :00:53. | :00:56. | |
to the second section of the Tokyo stock exchange. We have that story. | :00:57. | :01:08. | |
Tell us about this demotion. They opened higher this morning. Up about | :01:09. | :01:15. | |
2.5% this hour. Yesterday as well Toshiba shares rose. If you are like | :01:16. | :01:22. | |
me, wondering why they are actually rising despite the demotion, I have | :01:23. | :01:25. | |
been reading reports from security companies and it is partly because | :01:26. | :01:30. | |
shares have fallen sharply since financial trouble was reported but | :01:31. | :01:33. | |
also because by being demoted from the first section to the second | :01:34. | :01:38. | |
section, you remove all the big institutional investors but you also | :01:39. | :01:43. | |
get retail investors and day traders who want to make quick money by | :01:44. | :01:47. | |
selling and buying quickly. We have been seeing a lot of volume with | :01:48. | :01:52. | |
trading in Toshiba shares. They will continue to see volatility. The | :01:53. | :01:57. | |
interesting thing about Toshiba, we all grew up with it, it is one of | :01:58. | :02:01. | |
the best-known conglomerates in Japan. How did you get here? It is a | :02:02. | :02:08. | |
dramatic fall from grace. Last year it was all fine until December. That | :02:09. | :02:13. | |
is when the company warned investors it may have to face a one-time right | :02:14. | :02:18. | |
down in its US nuclear division. We did not know how much that loss was | :02:19. | :02:24. | |
going to be. Then we heard figures like $6 billion. For the last | :02:25. | :02:29. | |
financial year that ended in March, the company still has not reported | :02:30. | :02:33. | |
its earnings. The figure we are expecting is a loss of $9 billion. | :02:34. | :02:38. | |
It is trying hard to sell its chip business, the only profitable | :02:39. | :02:41. | |
business. It is facing legal challenges from the US partner it | :02:42. | :02:51. | |
has. How does it recover? Could it be delisted altogether? It is quite | :02:52. | :02:58. | |
possible if it cannot solve this by March. It could be delisted. 15 | :02:59. | :03:03. | |
companies got delisted in the last decade. Sharp, for example. That one | :03:04. | :03:13. | |
turned around and Taiwan's Foxcon. But it is unusual. -- under. Thank | :03:14. | :03:21. | |
you for that. In other business news, prices in South Korea rose to | :03:22. | :03:27. | |
a multi-year high in July according to the latest government data. The | :03:28. | :03:33. | |
consumer price index group to 20% compared to 1.9% in June. Qatar has | :03:34. | :03:45. | |
launched a formal complaint with the WTO with regards to a trade embargo. | :03:46. | :03:53. | |
Four Arab countries cut diplomatic and trade ties with them in June | :03:54. | :03:56. | |
after allegations of supporting terrorism. Qatar called it an | :03:57. | :04:02. | |
illegal siege. It looks like investors are not sharing the $12 | :04:03. | :04:13. | |
billion deal in TV deals. They were hoping a merger would build up | :04:14. | :04:21. | |
viewership figures. Shares for Discovery fell 8%. The $900 million | :04:22. | :04:29. | |
sale of India's deal to Flipcart was heralded as one of the most exciting | :04:30. | :04:35. | |
e-commerce deals. But they pulled the plug, saying they will pursue an | :04:36. | :04:38. | |
independent path. What is next for the struggling firmhave more. It was | :04:39. | :04:48. | |
supposed to be an incredible deal. But instead of two arrivals coming | :04:49. | :04:52. | |
together to create a mega firm, talks collapsed during the final | :04:53. | :04:58. | |
stages of a talk between Flipcart and Snapdeal. When the talks began, | :04:59. | :05:07. | |
there were constant issues between Softbank and minority shareholders. | :05:08. | :05:10. | |
The founders of the company were not keen on selling to their main rival | :05:11. | :05:17. | |
as well. Snapdeal had been struggling financially for years, | :05:18. | :05:22. | |
which is why it was open to sail. But last week it sold its mobile | :05:23. | :05:27. | |
payment business to a bank raising $60 million. That has given it some | :05:28. | :05:32. | |
financial ammunition to keep going. In a statement, they said they would | :05:33. | :05:37. | |
trim operations and restructure the business to stay afloat. Many | :05:38. | :05:41. | |
analysts say it might not be enough to survive in the highly competitive | :05:42. | :05:46. | |
e-commerce market of India. India is one of the fastest growing markets | :05:47. | :05:51. | |
for on line shopping largely to do with the huge number of smartphone | :05:52. | :05:54. | |
users in the country. And in an effort to attract customers, on line | :05:55. | :05:59. | |
retailers have been offering massive discounts. But this has made it | :06:00. | :06:03. | |
difficult for them to make profit. Amazon has been pursuing an | :06:04. | :06:07. | |
aggressive strategy in India as well. They cut down operations, | :06:08. | :06:16. | |
branding them as Snapdeal 2.0. It might be a new avatar for the | :06:17. | :06:21. | |
company, but it is facing the same old competition in the market. BBC | :06:22. | :06:29. | |
News. In other news, warmer summer weather in Europe has led to | :06:30. | :06:33. | |
bubbling profits for Heineken. They get half of their turnover from the | :06:34. | :06:40. | |
continent. Profits rose nearly 6%. $2.1 billion. It beat market | :06:41. | :06:48. | |
expectations. They had good growth in Vietnam as well. China's appetite | :06:49. | :06:52. | |
for fast food shows no signs of slowing down. The world's second | :06:53. | :06:59. | |
biggest economy has a more vibrant restaurant economy than ever. | :07:00. | :07:02. | |
Chinese consumers it out almost three times a week. Thanks to a | :07:03. | :07:08. | |
growing middle-class making up 68% of all households, some of the top | :07:09. | :07:19. | |
brands are doing extremely well. Others include KFC and McDonald's. | :07:20. | :07:24. | |
Other retail industries are struggling to get by. Why is casual | :07:25. | :07:32. | |
eating restaurants becoming such a rising industry? For international | :07:33. | :07:37. | |
brands, it has been a game of adapting the menu to local taste. | :07:38. | :07:43. | |
Kace has an entirely new occasion with breakfast in China. -- KFC. The | :07:44. | :07:49. | |
breakfast menu is 100% Chinese exclusive. They have a few different | :07:50. | :07:58. | |
types and tastes and spices. The other thing is trying to bring in | :07:59. | :08:03. | |
healthy food. Chinese mothers, just like in the West, they would like to | :08:04. | :08:09. | |
take their family to McDonald's, KFC, but they want something healthy | :08:10. | :08:12. | |
for their children and something lighter and healthy for themselves. | :08:13. | :08:17. | |
So these chains have been adding salads, vegetables, proposing corn | :08:18. | :08:23. | |
as a substitute to french fries, and also improving ingredients | :08:24. | :08:25. | |
themselves, putting less salt in the food, better meat, sources of | :08:26. | :08:36. | |
potatoes and so on. Tell us about the beverage industry as well. It is | :08:37. | :08:39. | |
not just fast food. Star bucks spent over $1 billion last week to take | :08:40. | :08:43. | |
full ownership of China outlets. Is that a good move? A very good one. | :08:44. | :08:49. | |
This means they are taking control of the entire supply chain, the | :08:50. | :08:53. | |
quality of the delivery in the stores. They have big plans to | :08:54. | :08:57. | |
increase their network which is today probably between 1500, around | :08:58. | :09:07. | |
1500. They are trying to open 1000 new stores. They have been adapting | :09:08. | :09:11. | |
to local tastes as well. For example, in the menu in China, they | :09:12. | :09:16. | |
have several types of tea with different flavours that cater to | :09:17. | :09:24. | |
Chinese tastes. I think it is a good move We will see star bucks | :09:25. | :09:27. | |
extending very much the number of locations they have in China. We | :09:28. | :09:33. | |
will turn to the market, starting with the virtual currency, Bitcoin. | :09:34. | :09:40. | |
A split in the community is set to create a new version of the | :09:41. | :09:44. | |
cryptocurrency on Tuesday. A group of insiders, unhappy with existing | :09:45. | :09:48. | |
plans to speed up transaction times, have created a rival called Bitcoin | :09:49. | :09:53. | |
Cash. That could put pressure on the value of the original Bitcoins. One | :09:54. | :09:59. | |
person has said it could cause chaos. The price of a single Bitcoin | :10:00. | :10:07. | |
rose 5% in US trade overnight. We will look at trade in Asia. Most | :10:08. | :10:12. | |
Asian markets that are open have opened higher, taking cues pretty | :10:13. | :10:15. | |
much from Wall Street where we saw the Dow Jones yet another record | :10:16. | :10:21. | |
high. Essentially in Australia we are seeing games. Many investors are | :10:22. | :10:26. | |
watching the Reserve Bank of Australia who will announce | :10:27. | :10:30. | |
interest-rate decisions later. -- ??MACRO1 and that is it for this | :10:31. | :10:34. | |
edition of Asia Business | :10:35. | :10:35. |