10/08/2017 Asia Business Report


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10/08/2017

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

:00:00.:00:16.

A deadline looms for Toshiba to report its annual results. It has

:00:17.:00:23.

until today to get an to sign it off. Silicon Valley setting an

:00:24.:00:27.

example when it comes to paid maternity leave in America but will

:00:28.:00:29.

the rest of the country Good morning, Asia, hello, world.

:00:30.:00:41.

It's Thursday and glad you could join us for this edition of Asia

:00:42.:00:45.

Business Report, I'm Rico Hizon and we begin with Japan's troubled

:00:46.:00:49.

electronics giant Toshiba and today is the deadline for the company to

:00:50.:00:54.

report its audited results for the past fiscal year. Toshiba has missed

:00:55.:01:00.

the deadline several times and some investors are now questioning its

:01:01.:01:04.

very survival. For the latest let's go over to Mariko Oi, our business

:01:05.:01:10.

editor, a lot of confusion about these Toshiba results, they can't

:01:11.:01:14.

seem to reconcile where they are at. Indeed. The delay has been caused

:01:15.:01:20.

because of the disagreement between the auditor and Toshiba, but it

:01:21.:01:24.

looks like at least the auditor is giving a partial approval so that

:01:25.:01:28.

the company can report its results later today. Let's remind you of how

:01:29.:01:33.

we actually got here, because it actually all started over a decade

:01:34.:01:38.

ago when Toshiba bought US nuclear company Westinghouse. We didn't hear

:01:39.:01:42.

much about it until of course in March 2011 the massive tsunami

:01:43.:01:47.

struck a nuclear power plant in Fukushima causing a huge disaster

:01:48.:01:51.

and that made it obviously a lot harder for companies to sell nuclear

:01:52.:01:55.

energy. Then again we didn't really hear from them until two years ago

:01:56.:02:00.

when we found out Toshiba has been inflating profits over the last

:02:01.:02:04.

seven years. Just as the company was starting to recover from that

:02:05.:02:09.

accounting scandal in December last year, we heard Westinghouse, the US

:02:10.:02:12.

nuclear company, has been losing quite a lot of money. We didn't know

:02:13.:02:17.

how much but the number kept ballooning and that's basically why

:02:18.:02:20.

the company hasn't been able to report its results. It started

:02:21.:02:27.

trying to sell the chips business, which is the only profitable unit,

:02:28.:02:31.

but it's facing legal challenges from its US partner. Because of that

:02:32.:02:37.

we saw the company's chairman resign and then Westinghouse filing for

:02:38.:02:41.

bankruptcy as well. Earlier this month we saw shares in Toshiba being

:02:42.:02:46.

demoted to the second section of the Tokyo stock exchange and if Toshiba

:02:47.:02:50.

couldn't file results by today then there were fears it could even get

:02:51.:02:54.

delisted, but at least that the Earth seems to be waning. Hopefully

:02:55.:03:01.

the drama ends today, we will have to wait and see. -- that the. In

:03:02.:03:09.

Japan one of the biggest companies that makes liquid-crystal displays

:03:10.:03:13.

for television screens is slashing 30% of its workforce. Japan Display

:03:14.:03:20.

said it will cut 3700 jobs as part of restructuring. It also expects to

:03:21.:03:26.

make a loss of $1.5 billion in the current financial year. Japan

:03:27.:03:31.

Display has been in the red for the last three years.

:03:32.:03:35.

The owner of Fox News and pretty fair century Fox movie studio looks

:03:36.:03:40.

to have benefited from a Trump bump. Fox said revenues rose by 1.5% to

:03:41.:03:46.

$6.8 billion in the fourth quarter after rating is at its cable TV

:03:47.:03:51.

business improved and grew in more advertisers. Fox is owned by media

:03:52.:03:55.

mogul Rupert Murdoch. He's looking to buy the rest of the European

:03:56.:04:00.

television station Sky that it does not already own for 14.5 billion

:04:01.:04:08.

dollars. India starter motors, which owns Jaguar Land Rover, reported a

:04:09.:04:13.

10% fall in income to just under 9.5 billion US dollars for the three

:04:14.:04:18.

months between India and June -- April and June. There's been an

:04:19.:04:22.

issue with the heavy vehicle business and that resulted in poor

:04:23.:04:27.

results. But profitability gained over 40%. Union workers at Hyundai

:04:28.:04:35.

are expected to begin a partial strike today, factory workers plan

:04:36.:04:39.

to stop work on Monday next week to pressure the management to raise

:04:40.:04:45.

wages. This is after that troubles were reported at the fifth biggest

:04:46.:04:50.

world automaker. Profits have fallen for 14 straight quarters, or 3.5

:04:51.:04:54.

years. Car sales have been hit hard by political tensions with China,

:04:55.:04:59.

which accounts for one fifth of sales. What impact will a partial

:05:00.:05:04.

strike have on the car company? Earlier I asked analyst James Rooney

:05:05.:05:09.

in Seoul. Unfortunately there never is a good time for companies to

:05:10.:05:14.

experience strikes. For Hyundai, this is one of the rights of summer.

:05:15.:05:21.

For the past 30 years or so they have had this Midsummer strike

:05:22.:05:27.

around wage negotiations and almost it would seem like a shame if it

:05:28.:05:32.

wasn't happening. However, it's not a good time for them to be demanding

:05:33.:05:39.

significant wage increases. Were talking about the order of 7% here,

:05:40.:05:44.

very significant relevant to how inflation is today. Surely this will

:05:45.:05:49.

have an impact on the bottom line of Hyundai going forward and the new

:05:50.:05:53.

president of South Korea, James Comey has been focusing on job

:05:54.:05:57.

creation and wage increases. Will this have an impact on negotiations?

:05:58.:06:03.

I think the political environment with the new leadership certainly is

:06:04.:06:08.

more favourable towards management, and for various reasons, I'm sure we

:06:09.:06:12.

are all aware of, the leadership are under pressure after the scandal

:06:13.:06:20.

with Park. Unfortunately for Hyundai that political environment includes

:06:21.:06:25.

the whole missile issue that China has been so upset about, which has

:06:26.:06:32.

cut off the growth in sales in Hyundai's most significant market,

:06:33.:06:38.

which has shut. On the other hand, Hyundai is so used to having this

:06:39.:06:43.

kind of event, they saw the sort of build it into their budget and later

:06:44.:06:48.

on in the year they will make up the production shortfall in relation to

:06:49.:06:54.

their annual bills -- they sort of. It's part of the fabric of the

:06:55.:06:56.

industrial structure here unfortunately. Unions aren't as

:06:57.:07:03.

powerful as you would think and strikes are quite rare but when they

:07:04.:07:06.

happen they can be quite colourful. You may hear a lot of noise in the

:07:07.:07:12.

street if that gets out of control. South Korean business expert James

:07:13.:07:17.

Rooney in Seoul. Now for the latest in our series that's been running

:07:18.:07:22.

across the BBC this week. Today we turn our attention to Silicon Valley

:07:23.:07:25.

where technology giants like Google and Facebook are leading the way

:07:26.:07:29.

when it comes to offering paid maternity leave. The US doesn't

:07:30.:07:33.

require paid leave guarantees but Donald Trump's daughter is trying to

:07:34.:07:37.

convince her father policy needs to change. Our North America technology

:07:38.:07:44.

reporter Dave Lee has more. Macro a when Martha decided it was time to

:07:45.:07:48.

have children she knew her job managing public relations for

:07:49.:07:52.

technology companies would become untenable.

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I've been thinking along time about all of the ways that work doesn't

:07:55.:07:58.

align well with being a professional parent. She decided to set up her

:07:59.:08:03.

own firm and set about putting in place family friendly policies, the

:08:04.:08:06.

types of which most people in this country don't have access to. I

:08:07.:08:11.

decided to be intentional about building a business when we can be

:08:12.:08:15.

ourselves, the mothers among us but being clear with younger employees

:08:16.:08:19.

that if they have things they want to pursue that fall inside of normal

:08:20.:08:23.

work hours, they camp as you those also know we are not favouring one

:08:24.:08:27.

stage of life over another or penalising one in favour of another

:08:28.:08:34.

-- they can pursue. Raising a child in the US is very difficult and

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costly. 12% of private sector companies offer paid parental leave

:08:40.:08:43.

and the US is one of three countries in the world not to have a paid

:08:44.:08:47.

parental leave law. But it's hoped Silicon Valley is starting a trend

:08:48.:08:51.

that could change that. This organisation argues for better

:08:52.:08:55.

coverage for American workers. There's been a lot of momentum from

:08:56.:08:59.

tech companies around increasing access to maternity leave and in

:09:00.:09:02.

particular family leave and medical leave, which is great. It shows it

:09:03.:09:07.

makes good business sense, these companies wouldn't be doing it if it

:09:08.:09:11.

wasn't good for bottom lines, and that's good for the economy and

:09:12.:09:14.

those individual families and employees. One of those tech

:09:15.:09:19.

companies is go daddy, the world's largest seller of Internet domain

:09:20.:09:22.

names. The company has faced criticism in the past for being an

:09:23.:09:28.

overly macho workplace, a scenario prevalent in technology. Like a lot

:09:29.:09:32.

of tech companies we have lots of similar issues, we are trying to

:09:33.:09:35.

resolve those and continuing to build an awesome culture where

:09:36.:09:39.

people can do the best work of their lives. Anyone who is a new parent

:09:40.:09:43.

can get 12 weeks paid to melt, welcomed their new family member,

:09:44.:09:47.

the birthing mother gets another six weeks to recover as well physically

:09:48.:09:52.

-- to welcome. Silicon Valley is perhaps best place to set the sample

:09:53.:09:56.

given the fierce competition for top talent. The progress requires people

:09:57.:10:01.

at the top of big companies to value both successful careers and happy

:10:02.:10:07.

families. Dave Lee, BBC News, in San Francisco. We have half a minute to

:10:08.:10:11.

tell you about the financial markets in Asia, despite the escalating

:10:12.:10:15.

tension in the Korean peninsula and relations between North Korea and

:10:16.:10:19.

the United States, we are seeing some gains in some of the Asian

:10:20.:10:26.

bourses. The Nikkei 225 up 74, the All Ordinaries gaining 22. Thank you

:10:27.:10:31.

so much for spending your time with us. I'm Rico Hizon, Sport Today is

:10:32.:10:33.

up

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