06/09/2017 Asia Business Report


06/09/2017

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

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No recession for more than 25 years. Find out if the Australian economy

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is still going strong as we count down to the latest great figures.

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And the price of Bitcoin dips after China hits the breaks on crypto

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currencies. Welcome to Asia Business Report, I'm

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Sharanjit Leyl. Australia has been on a record streak of economic

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growth, mainly due to a mining boom. There are expectations it will

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continue to show steady growth as we wait for second-quarter GDP due out

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this morning. But why household debt as well as slowing demand for

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minerals from China could dampen growth in the future -- high.

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Earlier I spoke to Paul Dale is from capital economics in Sydney and I

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asked him how the Australian economy will fare over the next few years.

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I don't think Australia will do terribly badly over the next few

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years but I don't think equally it will do incredibly well. I think

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Australia is employed period of around 2.5% growth which by the

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standards of a lot of advanced economies would be a great result.

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But Australia's potential growth rate or the growth of rate it should

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be able to grow at is just below 3% so by Australian standards that

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would be weaker than perhaps most people would want. We've got the

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central bank keeping interest rates at record lows, what is that doing

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to the economy, especially when you have a situation of high-level is of

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household debt? This is very interesting -- high levels.

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Household debt in Australia has continued to increase since the

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global financial crisis as a share of disposable income and there's not

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many advanced economies around the world where that's the case so

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Australia has carried on regardless. This was a deliberate ploy by

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policymakers because when the mining boom collapsed in 2012, 2013,

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policymakers needed something to take up the slack so by cutting

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interest rates to their record low of 1.5%, that generated something of

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a housing boom that filled the whole a bit and kept the Australian

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economy going. Looking ahead we are in a situation where we can no

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longer rely on the housing boom to add as much to the economy as

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previously and if we're right at Capitol Economics were growth in

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China will come off the boil a bit then it's right for Australia's

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economic growth rate to be somewhat subdued rather than brilliant.

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Paul Dales speaking to me earlier. Hewlett-Packard appears to be faring

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well after the company was split in two, its services arm HP Enterprises

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big profit expectations with net earnings of $200 million in the

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third quarter and the chief executive Meg Woodman said the

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results were encouraging and shares of HP rose by nearly 5% on that

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news. If you like to start your day with a glass of orange juice then

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get ready to pay more for it. Futures for the commodity jumped by

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more than 6% in US trade on concerns hurricane may hit the US mainland.

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Florida is its biggest producer of orange juice and it has declared a

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state of emergency -- Hurricane Irma. Hurricane Irma has

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strengthened to a category five hurricane, the second major storm to

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hit America in a little over a week. Lego is cutting 1400 jobs worldwide

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in the face of falling sales and profits. The figure is 8% of the

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Danish company's workforce. The company chairman says the move was

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necessary. Well, I wouldn't say it's too much

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to handle, companies that have grown a lot bigger than we ever have, but

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I think we grew very fast, we did not do it in the most appropriate

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way and we're finding ourselves today with a bit much bureaucracy,

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too many layers in the organisation and we've lost a bit of touch on the

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market side and I think there is opportunity for us to really

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strengthen the way we launch our products and be much more successful

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with that and that's important because, as you know, we've grown a

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lot and penetrated markets very much so to continue to grow we need to

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sharpen our game. The value of the crypto currencies

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Bitcoin has rebounder had somewhat after losing nearly 20% of its value

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over several days -- currency. They came off their record highs and fell

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further after China banned what's known as an ICO, initial coding

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offerings, much like a share offering. The offer is a way of

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raising capital by offering a new crypto currencies and according to

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figures there were 55 ICOs in China in the first seven months of the

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year, totalling a whopping $398 million. Is this a prudent move or

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has Beijing overreacted on the regulation side of things? Earlier I

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spoke to Tim Phillips, the head of Deloitte's international crime

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network and asked him why they are worried. Regulated markets in most

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markets around the world if you want to raise funds in the public you

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have to have a prospectus and be a registered dealer, it is well

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controlled by regulators and it presents real transparency and

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safety. It is completely missing in the ICO market, it is very

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anonymous, it is all out there in the ether and it's quite a

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challenge. Out there in the ether, but shouldn't it be potentially an

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easier move to bring in the regulation as opposed to banning it

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out right? It is just there was too much heat, as you can see by the

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numbers, they were very substantial. What the regulators are doing is

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saying let's take a pause. I don't think it will be a long-term band, I

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think things will come back quickly, regulators around the world are

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called talking about it, in Singapore the MIF have issued

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guidance. They will be very quick to try to create the opportunity for

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people to do this but to do it in a more structured and secure way. Tim

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Phillips speaking to me earlier. Nissan is about to unveil its

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redesigned or electric car in Japan and it is revving up to be a highly

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anticipated event giving, given the rising demand for green vehicles --

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all electric. What are the details? -- given. Nissan held its global

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launch in the past couple of minutes, they are live streaming the

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event in Japan and the redesigned car... I haven't seen what it looks

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like yet but I expect it to be more sleek than the original Leaf but it

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is expected to have the improved battery which is important because

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it will give this all electric vehicle a wider range meaning with

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one charge it can go for a longer distance. This is highly anticipated

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because there is a significant growing demand for electric cars and

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green vehicles but there aren't many affordable mass-market cars the

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average person can buy. The Leaf is one of the world's top-selling

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electric cars, it's only about $30,000, the Tesla Model 3 starts at

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$35,000 and General Motors, another big competitor, as their car at

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$37,500. Luxury ones start at $50,000 so many people watching this

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launch. And we got a sneak peak at when you talked about what back are

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looked at, factory much! Out of the global population 2 billion are

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working mothers -- thanks very much. Research indicates mums are making

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purchasing decisions in 80% of households so their spending power

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is an attractive market for advertisers. In Asia spending on

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baby products in Indonesia and Thailand combined are expected to

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surpass $420 million by 2020 but not all marketing can deliver a success

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story. Earlier I spoke to a member of a Japanese advertising agency and

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I asked her about what campaigns resonate with mothers. All this year

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the ones that worked well resonated well, one is very relevant to

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mothers, the ones that understand us as mothers. Those not painting women

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as stereotypes, not ones showing us in the household doing chores.

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Something that really touches us in our hearts, something that talks to

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ask. Examples would be, my personal favourite is Always, the hash tag,

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like a girl, do you remember that? As a mother sometimes you want to

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teach your children but they won't listen to you. Its powerful for the

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people working to get this message across to really touched the mums'

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heart and to tell these messages, very effectively. A product for

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sanitary pads. It's an empowering message. We know there are lots of

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differences in various countries cultural elites of the message you

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are getting to these mums in this company, how are they different or

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potentially the same messages? It started with... If you have many

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friends in different cultures, cultures are more conservative.

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There are very strict mothers. But today with millennial mums they are

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more open-minded with gadgets, technology, totally different from

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whatever part of the world you are in... I have a lot of friends from

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different cultures and when you discussed at lunch breaks and

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lunchtime we go, this is a rich source of information, I don't think

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any marketer would know this and we chat amongst ourselves. This is a

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rich source of data. There's 2 million working mums around the

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world, that is a staggering number -- 2 billion. But you seen the

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industry is slow to keep up, why is that? Because we refused to look at

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it in a real way. We wanted to do cookie cutter communications demands

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and we treated them like they all the same but they are not. That's it

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for this edition of Asia

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