:00:18. > :00:27.As Kaesler's latest earnings shift into high gear we look at China and
:00:28. > :00:32.India leading Asia's ambitions for electric cars. -- Tesla's latest.
:00:33. > :00:40.And the Dow pushes past 22,000 mark. Will the rally extends to Asia. --
:00:41. > :00:45.kickstand to Asia? Welcome to Asia Business Report. I am Sharanjit
:00:46. > :00:52.Leyl. We begin with the auto sector. Electric car maker temper -- Tesla
:00:53. > :00:56.just reported revenues of more than $2 billion for the April- June
:00:57. > :00:59.quarter, more than doubling. The electric car maker burnt through
:01:00. > :01:03.more than $1 billion in that quarter, ramping up production for
:01:04. > :01:08.its mass-market Model three, released last week. There are about
:01:09. > :01:12.half a million pre- orders for the Model three. Asia has its own
:01:13. > :01:16.ambitions when it comes to electric cars. China has mandated 8% of all
:01:17. > :01:25.vehicles sold the new energy cars by 2019. India has vowed to make all
:01:26. > :01:30.cars sold electric I 2030. Earlier I spoke to an auto analyst in Sydney.
:01:31. > :01:35.I think you have to differentiate Chinese case from the Indian case.
:01:36. > :01:38.If you look at the background statistics, China has a penetration
:01:39. > :01:44.of electric cars around 1.4%, higher than the US. They accounted for half
:01:45. > :01:48.of all you -- will electric cars registered in 2016, around 250,000 a
:01:49. > :01:54.year. They are on a naked trajectory. Also, China has an
:01:55. > :01:59.ability to provide infrastructure, because it is a decision by the
:02:00. > :02:03.government. 150,000 public charging spots exist already. I am more
:02:04. > :02:07.confident about the Chinese case. There are lots of manufacturers of
:02:08. > :02:16.electric vehicles and hardly anybody else. BID and BAIC, they cell tens
:02:17. > :02:20.of thousands of cars per month, and found a widespread brands because
:02:21. > :02:24.they are only in China. If you look at India, I think that is a greater
:02:25. > :02:30.challenge. The current penetration is 0.02%. They sold 11,000 electric
:02:31. > :02:34.vehicles in 2016 and only 1000 were cars out of that. That is a long way
:02:35. > :02:37.to go when it goes to 100% penetration. Which countries and
:02:38. > :02:45.Manufacturer 's will stand to gain from this potential increase? --
:02:46. > :02:52.manufacturers. Honestly, I think China might be one of the countries
:02:53. > :02:56.benefiting from India, because they have cars which are underneath the
:02:57. > :03:01.$40,000 range. If you look at the growth of national income per capita
:03:02. > :03:07.in China and India, it is about $7,000, so it would take five years,
:03:08. > :03:10.and on top of it, Tesla is not even present in India get. So I think the
:03:11. > :03:15.European manufacturers or American Manufacturer 's would have to have a
:03:16. > :03:18.lower entry point on the model three to crack the market in India.
:03:19. > :03:24.We can now go to the assembly line in the United States were factory
:03:25. > :03:28.workers of Japanese automaker Nissan are set to vote on the right to form
:03:29. > :03:32.a union. The head of the deadline tensions have fled with the union
:03:33. > :03:37.describing it as one of the nasty is, antiunion fights in US history.
:03:38. > :03:44.Michelle Florey reports from Mississippi. Nissan launched this
:03:45. > :03:49.massive antiunion campaign to threaten and intimidate workers. We
:03:50. > :03:53.did the research may UAW and we do not want what they are offering.
:03:54. > :03:59.Once again we are in a battle, we have to struggle and fight just to
:04:00. > :04:04.have the right to vote. The fight to form a union at the Nissan factory
:04:05. > :04:08.in canton, Mississippi. We are battling against our own, not for
:04:09. > :04:14.the right to vote or not to vote, but for the right to manipulate and
:04:15. > :04:18.lie to each other. For 14 years, workers at the Nissan plenty have
:04:19. > :04:23.been engaged in a pitched battle with management over the right to
:04:24. > :04:27.form a union. Mississippi, like many Southern states, has typically been
:04:28. > :04:33.resistant to letting in unions. This time, workers here are hopeful they
:04:34. > :04:38.have a chance. I want to have a voice in the plant. Health and
:04:39. > :04:42.safety. Like I said, equal opportunity. I got hurt on the line
:04:43. > :04:49.and I have been dealing with that throughout the whole time. So it has
:04:50. > :04:54.been a real process. And I think the union would really stand up for us.
:04:55. > :04:57.Not everybody wants the union. Nissan is the best thing that has
:04:58. > :05:02.happened to the state of Mississippi. We are campaigning hard
:05:03. > :05:06.to keep the UAW out of our plant. We do not need an outside entity to
:05:07. > :05:10.tell us how to do what we are doing. To get its message across, Nissan
:05:11. > :05:13.has posted antiunion messages inside the factory, landing them in trouble
:05:14. > :05:17.with the national labour relations board. The company denied
:05:18. > :05:23.allegations of intimidation, saying that voters have the right to know
:05:24. > :05:26.the company's perspective. For those who remember first-hand the south's
:05:27. > :05:31.troubled past, this is not just about worker rights. It is about
:05:32. > :05:34.civil rights. When black people would go to register to vote,
:05:35. > :05:40.somebody might come buy their house burning across. Or wearing a hood.
:05:41. > :05:45.Now they do not wear the hood, or burn across, but they come by and
:05:46. > :05:49.say, we are going to oppose the union and oppose the plant. When it
:05:50. > :05:55.is time to vote, vote yes! The union is hoping to turn past failure into
:05:56. > :05:59.success. Victory here might like the spark for the US labour movement
:06:00. > :06:02.across the South. -- light to the spark.
:06:03. > :06:07.The United States is said to be planning possible trade sanctions on
:06:08. > :06:12.Beijing of international -- intellectual property theft, which
:06:13. > :06:14.would affect areas fleck semiconductors and artificial
:06:15. > :06:18.intelligence. US businesses have been lobbying for tough actions
:06:19. > :06:24.against what they feel like unfair trade and market practices by China.
:06:25. > :06:28.What can you tell us? It looks like the honeymoon between
:06:29. > :06:33.President Xi Jinping and President Donald Trump is well over. They
:06:34. > :06:37.first met four months ago and it was a very positive face-to-face
:06:38. > :06:41.meeting. President Trump tweeted afterwards, tremendous goodwill and
:06:42. > :06:44.friendship was formed, and their meetings led to 100 days of trade
:06:45. > :06:50.talks between the two countries. Fast forward to today and the tone
:06:51. > :06:53.has changed. He is disappointed over China's lack of progress on issues
:06:54. > :06:58.like steel dumping and their trade deficit, which stands at more than
:06:59. > :07:03.$300 billion each year. As well as in action over North Korea and its
:07:04. > :07:06.weapons programme. So now the Trump Administration is stepping up the
:07:07. > :07:10.pressure on China. They are believed to be building a case of
:07:11. > :07:14.intellectual property theft, and we could see an announcement about that
:07:15. > :07:18.within days. According to reports, the US might invoke a rarely used
:07:19. > :07:24.law provision which will allow it to unilaterally Institute tariffs and
:07:25. > :07:27.possibly restrict the transfer of advanced technology to Chinese
:07:28. > :07:32.firms. This is interesting because the move marks a shift in strategy
:07:33. > :07:35.for the Trump Administration, but raises concerns that such actions
:07:36. > :07:41.may spark a trade war between the two sides. Intellectual property
:07:42. > :07:45.cases should go through the World Trade Organization. But disputes the
:07:46. > :07:50.there tends to take years to resolve. Bypassing the WTO would
:07:51. > :07:56.raise a whole set of issues between the two sides. On Wednesday, the
:07:57. > :08:00.head of the WTO said to reporters that there is a clear risk of a
:08:01. > :08:02.trade war because of protectionist policies, and we just don't want
:08:03. > :08:07.that. No, we certainly don't. Well, in
:08:08. > :08:11.other news, India's central bank reduced the cost of Orrell in by
:08:12. > :08:15.cutting key interest rates. It is the first time the Reserve Bank of
:08:16. > :08:21.India has dropped its rates to a seven-year low of 6%. The move will
:08:22. > :08:26.make it cheaper to take out loans for large-scale purposes as a way to
:08:27. > :08:31.boost the economy. Qatar Airways has abandoned plans to buy a 10% stake
:08:32. > :08:36.in American Airlines. Qatar Airways made an unsolicited bid worth at
:08:37. > :08:40.least $800 million in June. Qatar said investing in the US carrier no
:08:41. > :08:43.longer meets its objectives. Executives from the American airline
:08:44. > :08:47.had opposed the partnership and it was first disclosed. Strong earnings
:08:48. > :08:52.from corporate America, including Apple's latest results, since the
:08:53. > :08:57.blue-chip index and the Dow to a new all-time high. It climbed past
:08:58. > :09:03.22,000 mark, marking its sixth straight record close. Earlier, I
:09:04. > :09:07.asked Sarah Hussein how long the rally could last. That is the big
:09:08. > :09:11.question. There are lots of worries about whether or not the market is
:09:12. > :09:15.becoming too hot, and if we are due for some sort of correction. Most
:09:16. > :09:18.people believe there is going to be some sort of correction but of
:09:19. > :09:24.course you can never really tell when this might happen. Lots of
:09:25. > :09:27.people are also wondering how much of this is being attributed to
:09:28. > :09:30.President Trump and some of the policies that he has put through.
:09:31. > :09:36.From Wall Street's respective, they have really shrugged off the fact
:09:37. > :09:40.that, you know, President Trump has not been able to achieve a lot of
:09:41. > :09:43.the legislative goals he wanted to. For example, reforming the tax code
:09:44. > :09:49.or getting through a big infrastructure spending bill. Wall
:09:50. > :09:53.Street has largely shrugged that off, saying that there is a business
:09:54. > :09:55.friendly person in the White House now.
:09:56. > :10:02.Let's take a look at Asian markets. We are not seeing those kinds of
:10:03. > :10:08.figures. The Nikkei has opened flat. The All Ordinaries is down 1%. The
:10:09. > :10:11.Nikkei has been under pressure to some degree because the yen is
:10:12. > :10:15.stronger against the US dollar, which is always pressure. Japanese
:10:16. > :10:20.exporters that rely on the weaker yen for their profits. So that is
:10:21. > :10:24.possibly the reason there. We are also seeing a little bit of profit
:10:25. > :10:28.taking after a few aids of gains, particularly the likes of Australia.
:10:29. > :10:32.We have also seen the oil prices under pressure. That is all from
:10:33. > :10:39.this edition of Asia Business Report. Thank you for watching.
:10:40. > :10:41.The top stories this hour: Scientists have used gene editing
:10:42. > :10:45.techniques to correct faulty DNA in human embryos.
:10:46. > :10:47.The breakthrough could help eradicate inherited diseases.
:10:48. > :10:49.President Trump has reluctantly approved