08/08/2017 Asia Business Report


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08/08/2017

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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Wall Street, but what will it take for the rallies to spill over into

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Asian markets. Mothers milk against formula. Why is the latter a

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favourite option in Hong Kong? Good morning, Asia. Hello, world. Welcome

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to another edition of Asia Business Report. It's a Tuesday. My name is

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Rico Hizon. I am glad you could join us. We start the programme with the

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markets. The Dow Jones industrial average posting the ninth straight

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record, finishing the session like this. Much of the gains driven from

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strong corporate numbers from companies like Apple and others. We

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will look at is the positive sentiment is filtering through to

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Asia. Unfortunately not. The Nikkei is flat. The All Ordinaries Index is

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up a little bit. A mixed day. Earlier, I spoke to an analyst. We

:00:58.:01:08.

are seeing a rotation out of Asia. It has become more attractive as the

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US dollar has become weaker. There are low funding rates over there.

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The Federal Reserve is tightening. In the first six months of the year

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we have seen the US dollar at multi-year highs against the euro,

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against the Japanese yen, and the pound! Are investors coming in at a

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time when the dollar is weak so they can buy back into the US markets?

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That is definitely part of the plan. It shows how much liquidity there is

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around the world looking to invest the money. It also shows you some of

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the distortions of the low interest rates are causing around the world.

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It is not just the US with quantitative easing, it is other

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areas, including the UK... Asia, several banks have not raised

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interest rates, but the US has twice this year and there will be a third

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before the end of the year! Does this not put a cap on US stocks? I

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don't know about that. As we were discussing earlier, the market could

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also stay longer than you could stay solvent. There is a lot going to the

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top spot. Small caps are not performing well around the world.

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You mentioned irrationality among US investors. President Donald Trump's

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popularity rating is at a record low. US markets are up. It shows you

:02:37.:02:43.

the effect of the presidency and day-to-day living in the US. It may

:02:44.:02:49.

be that the underlying economy has a bigger impact than what any nuances

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in the political landscape by shelling. Could the US markets be

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flavour of the year? -- are showing. I don't see any reason why stocks

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should be sold at the moment. If it is twice as high in a year from now,

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we will be saying they look cheap today to be I don't see why they

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will tap out. Other business news. The world's newsroom del Chan says

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it will partner with Alibaba to tap into the growing number of Chinese

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tourists. -- hotel chain. It will allow them to book rooms using the

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travel website on Alibaba. They can also use Alipay on their

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smartphones. Chinese tourists will take 700 billion trips over the next

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five years. Prosecutors in South Korea want a 12 year prison sentence

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for the Samsung previous CEO, JY lay. They say he was the ultimate

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beneficiary of the crimes committed in the scanner which brought down

:04:01.:04:04.

the previous president. He denies any wrongdoing. The court will rule

:04:05.:04:12.

later this month. Tesla once $1.5 billion to pay for the introduction

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of its new Model Three car by selling bonds to investors. That is

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even though they have $3 billion in cash. They are expected to go

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through most of their cash this year as they try to produce 100,000 of

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those mass-market cars. They already have half a million orders for the

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model, they say. Video streaming giant, Netflix, has made its first

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acquisition, the Scottish comic book dumped me behind Kickass and

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Kingsmen. And they specialise in science fiction and fantasy stories

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similar to Marvel. They paid $100 million for the company as part of a

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drive to produce more original content. Over to the week-long

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series around birth. We dig deeper into the debate between

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breast-feeding and formula milk. In Hong Kong, breast-feeding rates are

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some of the lowest in the world. The government has set voluntary

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guidelines limiting formula milk. They spend hundreds of millions of

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dollars a year promoting their products. Will these guidelines be

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effective? Here is the BBC's Hong Kong correspondent. Sometimes,

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professional assistance is needed to help a new mother achieve that

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perfect latch. Yes, that is correct. This consultant has been teaching

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breast-feeding for 20 years. It is still an uphill battle. Many

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breastfeed in hospital, on discharge the rate is very high. But then the

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rate drops when they go home. This is how many discharge in hospitals.

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That goes to a third when babies are four-month-old, one of the lowest

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rates in the world. Globally, this is the average for babies under six

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months old. One of the reasons for the low rates in Hong Kong is the

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ubiquitous advertisement for artificial baby milk. Two years ago,

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formula makers spent $370 million on advertising, nearly as much as the

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Health Department spent on disease prevention for all ages, according

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to a group funded by UNICEF. That amount is set to fall after the

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official launch this summer of a voluntary code that restrict the

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marketing of infant formula. The top health official in the city says the

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goal is to protect breast-feeding. If there are problems running this

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using a voluntary nature, obviously, we will consider whether or not that

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legislation should be in place. This new mother welcomes the guidelines.

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She is exclusively breast-feeding her one-month-old baby, but says

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continuing will be a challenger. It is difficult as a working mother.

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Maternity leave is just ten weeks. I have to work six weeks after birth.

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At a pro- breast-feeding event, mothers here agree that short

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maternity leave, long working hours, and a lack of sleep are all

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obstacles. They say the new government guidelines will help, but

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they are far from enough. BBC News, Hong Kong. Joining the conversation

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on line, tell us whether you think they should be restricted. Moving to

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technology. Uber or Lyft. They have been on a massive spending spree.

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This comes as Softbank rose 50% to 4.2 billion US dollars in the three

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months until June. That is mostly because of gains in US chip designer

:08:15.:08:26.

Nvidia. The owner of Softbank became popular in America because of his

:08:27.:08:29.

meeting with Donald Trump. He is very rich. Will he invest in Uber,

:08:30.:08:36.

Lyft, or both? He is considering both. We don't know which one yet,

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but he wants to crack that ride market because he has not presence

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in the US. He has already done so in Asian ride agencies. He even has a

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big stake in Brazil's 99. The importance of that industry has to

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do with growth. They are predicted to overtake taxis and be worth

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nearly $200 billion by 2030, the entire industry. It comes down to

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this man, the son of Masayoshi. He is a technology entrepreneur who

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started from small beginnings. He started with Softbank in 1981. Now

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he is making big bets on an interconnected future. He has bought

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many companies. The most interesting move he has made is to set up a $100

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billion technology fund with Saudi Arabia. This is the world's biggest,

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a huge amount of money. Through it he is investing in almost every

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major start-up areas. Summer include the virtual reality company,

:09:52.:09:59.

Improbable, and some others. Some are questioning if he is helping to

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fuel a tech bubble. Thank you very much. With that we in this edition

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of Asia Business Report. Thank you for watching. -- we end this. This

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has been Asia Business Report. Sport Today is up

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