07/08/2017 Asia Business Report

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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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I'm Babita Sharma with the BBC News headlines.


China urges North Korea to suspend its nuclear and missile


programmes after the UN approves new sanctions.


The measures aim to deprive Pyongyang of more than $1 billion


China says that sanctions are needed, but has been


A government-backed investigation in Myanmar has rejected allegations


that its military committed atrocities against Rohingya Muslims


The UN argued it's likely that crimes against humanity


And this story is trending on bbc.com.


Iranian MPs have been urged to take courses in universal moral values


after some of them crowded around EU diplomat Federica Mogherini to take


Some social media users said MPs had embarrassed the nation.


The Government has launched a review into the cost of energy,


But critics have questioned what the inquiry, to be completed


by the end of October, will actually achieve.


Now on BBC News, all the latest business news live from Singapore.


The UN hits North Korea with its harshest sanctions yet over its


nuclear and missile programme. And trading in big bucks for cash.


Sowing the seeds of a childhood dream. Good morning, Asia. Hello,


world. Welcome to another edition of Asia Business Report. It's a Monday.


I am Marika Oi. The UN Security Council unanimously approved tougher


sanctions against North Korea which could cost the country $1 billion a


year. The US and China agree to the new measures after a month of talks


with the hope they will pressure Pyongyang back to the negotiating


table. Our reporter is on the story. Tell us the details of these new


sanctions. As you mentioned, it is the toughest yet. Critically, China


is on board. For these new sanctions to be effective, China needs to step


up to the plate, which they seem to have done. They take 90% of the


trade with North Korea. International sanctions are looking


to hurt North Korea where it hurts most, the economy. They will do this


in three ways, banning key exports of coal, seafood, and iron and lead.


The second is banning new joint ventures with the country and


investment. Even Egyptian firms are operating in Pyongyang already. The


third aspect is the 100 thousand North Koreans working overseas. Now,


no more guest workers are allowed from North Korea. That is to cut the


money going back to Pyongyang. It is one thing to agree on new sanctions.


In the past, we had issues of actually enforcing them. Can they


and forced them this time? China has been accused in the past of not


implementing sanctions. They have always wanted a softer approach with


Pyongyang. They don't want the regime run by Kim Jong-un to


collapse and they would have a refugee situation on the doorstep.


They support this because they would face secondary sanctions from


America. As they are the biggest trading partners with each other,


China cannot afford that either. The records keep coming from US markets.


Just last week, the Dow Jones industrial average broke 22,000


points for the first time ever. Look at the numbers from Friday! Well


above that psychological mark. What does this high valuation tell us


about the economy? We have this report from New York. US markets


have been doing this a lot lately, reaching record-breaking milestones,


something everyone is taking notice of, even the president. The stock


market hit an all-time record high today, over 22,000. We have picked


up substantially now, more than $4 trillion in net worth in terms of


our country, our stocks, our companies to bite it is true


companies are on a record-breaking move. Amazon hit an all-time high.


That is giving to these high as. As US markets go higher and higher, we


should see more companies going public and listing on places like


the New York Stock Exchange. But that is not happening. In fact,


quite the opposite. The number of US companies that are listed are


actually going down. Over the last decade, the number


-- 3671. Nowadays, they have bank loans and even go overseas for


investment. If there are less companies trading on the market,


where has all this cash gone? People are wondering, if market


capitalisations are as healthy as they are, and yet there are so many


fewer firms, it must mean the typical firm is much larger than it


once was. We are seeing that and lots of evidence is pointing that


way up is furthermore, there is a much greater concentration of that


capital in certain kinds of firms. That kind of thing does not help the


broader US economy. Regulators are taking note. The president should


use caution before taking credit. BBC News, New York. It has been two


months since several Middle Eastern countries and Egypt cut ties with


Qatar for alleged ties to terrorism, which the country denies. That has


changed the environment of the wealthy countries. How much of an


impact has been on businesses, it in particular the financial industry?


There is definitely an impact. It is significant. In terms of financial


stability, Qatar is a stable economy. They have resources. They


have sovereign funds and Central Bank cash of $40 billion, twice the


GDP. That is the long-term stable financial support. That will be the


proactive support for the bank and business model. At the same time, we


have seen the blockade. They want to move from WA2 to WA3. It doesn't


mean anything. The financial stability of Qatar is a given in the


long-term. The overall impact will be very, very minimal. What about


foreign deposit, though? They have fallen sharply, in fact, the most in


almost two years. That must have an impact on your business. Yes. There


is a drain on deposits. There are knee-jerk reactions. This is unheard


of. It has destabilised things in terms of those deposits. That is


locally. Look at the demographics. And also, the outflow is $6 billion


which is insignificant compared to the net assets Qatar has got. Yes,


it is drained, but it is not significant. $6 billion is outflow.


They have to mobilise short-term liquidity. That is precisely what


happened. Japan's agriculture industry is facing an acute


shortage. The number of farmers has fallen 20% in the last decade. The


country is having to rely heavily on imports of food. That is why


governments in Japan are trying to encourage start-ups. I met a


28-year-old entrepreneur who has taken a huge pay cut to pursue her


passion. Moving to a farming out it. This 28-year-old was once a


highflying consultant for McKenzie. Today she is the Chief Executive of


a small start-up called SenseSprout. It is a sensor that measures


temperatures and ground moisture. Farmers can understand what is going


on in the soil from their house, even when they are travelling


abroad. These new ideas are what the government wants to encourage in the


agriculture industry. So they receive funding from the government.


We still need support from the government because it is not


something that can become profitable overnight. First of all, we have to


wait for the plants to grow to get the experiment results. At lunch, I


asked her how farmers react to her being a young female CEO. There is a


bit of competition. Especially in 30s and 40s. They tend to welcome us


a light. It is more like ignorance, though. For younger farmers, the


technology has allowed them to be more efficient. Chants we used to


rely on our gut feeling. -- TRANSLATION:. There was no way of


finding out how accurate we were. A product like this is very useful.


Until recently, these sensors were rented out for free. Today, the


company has several customers who pay $1000 per sensor. But it meant a


big gamble for Lisa. Financially, I get enough money to support myself,


so it is OK. I am still learning, but it is a series of interesting


challenges. Convincing more young people to follow her footsteps is


what the government needs to do to jumpstart the economy. We will show


you the markets before we go. Asian markets are higher because of the


strong jobs numbers from the United States on Friday. That is it for


this edition of Asia Business