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Now on BBC News all the latest business news live from Singapore. | :00:00. | :00:16. | |
No recession for more than 25 years. Find out if the Australian economy | :00:17. | :00:23. | |
is still going strong as we count down to the latest great figures. | :00:24. | :00:28. | |
And the price of Bitcoin dips after China hits the breaks on crypto | :00:29. | :00:39. | |
currencies. Welcome to Asia Business Report, I'm | :00:40. | :00:43. | |
Sharanjit Leyl. Australia has been on a record streak of economic | :00:44. | :00:49. | |
growth, mainly due to a mining boom. There are expectations it will | :00:50. | :00:54. | |
continue to show steady growth as we wait for second-quarter GDP due out | :00:55. | :00:58. | |
this morning. But why household debt as well as slowing demand for | :00:59. | :01:02. | |
minerals from China could dampen growth in the future -- high. | :01:03. | :01:08. | |
Earlier I spoke to Paul Dale is from capital economics in Sydney and I | :01:09. | :01:13. | |
asked him how the Australian economy will fare over the next few years. | :01:14. | :01:16. | |
I don't think Australia will do terribly badly over the next few | :01:17. | :01:20. | |
years but I don't think equally it will do incredibly well. I think | :01:21. | :01:26. | |
Australia is employed period of around 2.5% growth which by the | :01:27. | :01:29. | |
standards of a lot of advanced economies would be a great result. | :01:30. | :01:33. | |
But Australia's potential growth rate or the growth of rate it should | :01:34. | :01:38. | |
be able to grow at is just below 3% so by Australian standards that | :01:39. | :01:42. | |
would be weaker than perhaps most people would want. We've got the | :01:43. | :01:45. | |
central bank keeping interest rates at record lows, what is that doing | :01:46. | :01:50. | |
to the economy, especially when you have a situation of high-level is of | :01:51. | :01:55. | |
household debt? This is very interesting -- high levels. | :01:56. | :02:00. | |
Household debt in Australia has continued to increase since the | :02:01. | :02:04. | |
global financial crisis as a share of disposable income and there's not | :02:05. | :02:08. | |
many advanced economies around the world where that's the case so | :02:09. | :02:12. | |
Australia has carried on regardless. This was a deliberate ploy by | :02:13. | :02:16. | |
policymakers because when the mining boom collapsed in 2012, 2013, | :02:17. | :02:20. | |
policymakers needed something to take up the slack so by cutting | :02:21. | :02:25. | |
interest rates to their record low of 1.5%, that generated something of | :02:26. | :02:30. | |
a housing boom that filled the whole a bit and kept the Australian | :02:31. | :02:33. | |
economy going. Looking ahead we are in a situation where we can no | :02:34. | :02:42. | |
longer rely on the housing boom to add as much to the economy as | :02:43. | :02:45. | |
previously and if we're right at Capitol Economics were growth in | :02:46. | :02:49. | |
China will come off the boil a bit then it's right for Australia's | :02:50. | :02:52. | |
economic growth rate to be somewhat subdued rather than brilliant. | :02:53. | :02:55. | |
Paul Dales speaking to me earlier. Hewlett-Packard appears to be faring | :02:56. | :03:01. | |
well after the company was split in two, its services arm HP Enterprises | :03:02. | :03:05. | |
big profit expectations with net earnings of $200 million in the | :03:06. | :03:09. | |
third quarter and the chief executive Meg Woodman said the | :03:10. | :03:13. | |
results were encouraging and shares of HP rose by nearly 5% on that | :03:14. | :03:18. | |
news. If you like to start your day with a glass of orange juice then | :03:19. | :03:22. | |
get ready to pay more for it. Futures for the commodity jumped by | :03:23. | :03:28. | |
more than 6% in US trade on concerns hurricane may hit the US mainland. | :03:29. | :03:33. | |
Florida is its biggest producer of orange juice and it has declared a | :03:34. | :03:37. | |
state of emergency -- Hurricane Irma. Hurricane Irma has | :03:38. | :03:40. | |
strengthened to a category five hurricane, the second major storm to | :03:41. | :03:46. | |
hit America in a little over a week. Lego is cutting 1400 jobs worldwide | :03:47. | :03:50. | |
in the face of falling sales and profits. The figure is 8% of the | :03:51. | :03:54. | |
Danish company's workforce. The company chairman says the move was | :03:55. | :03:58. | |
necessary. Well, I wouldn't say it's too much | :03:59. | :04:03. | |
to handle, companies that have grown a lot bigger than we ever have, but | :04:04. | :04:07. | |
I think we grew very fast, we did not do it in the most appropriate | :04:08. | :04:11. | |
way and we're finding ourselves today with a bit much bureaucracy, | :04:12. | :04:15. | |
too many layers in the organisation and we've lost a bit of touch on the | :04:16. | :04:20. | |
market side and I think there is opportunity for us to really | :04:21. | :04:23. | |
strengthen the way we launch our products and be much more successful | :04:24. | :04:27. | |
with that and that's important because, as you know, we've grown a | :04:28. | :04:31. | |
lot and penetrated markets very much so to continue to grow we need to | :04:32. | :04:36. | |
sharpen our game. The value of the crypto currencies | :04:37. | :04:40. | |
Bitcoin has rebounder had somewhat after losing nearly 20% of its value | :04:41. | :04:47. | |
over several days -- currency. They came off their record highs and fell | :04:48. | :04:51. | |
further after China banned what's known as an ICO, initial coding | :04:52. | :04:55. | |
offerings, much like a share offering. The offer is a way of | :04:56. | :05:02. | |
raising capital by offering a new crypto currencies and according to | :05:03. | :05:07. | |
figures there were 55 ICOs in China in the first seven months of the | :05:08. | :05:12. | |
year, totalling a whopping $398 million. Is this a prudent move or | :05:13. | :05:18. | |
has Beijing overreacted on the regulation side of things? Earlier I | :05:19. | :05:22. | |
spoke to Tim Phillips, the head of Deloitte's international crime | :05:23. | :05:26. | |
network and asked him why they are worried. Regulated markets in most | :05:27. | :05:30. | |
markets around the world if you want to raise funds in the public you | :05:31. | :05:34. | |
have to have a prospectus and be a registered dealer, it is well | :05:35. | :05:38. | |
controlled by regulators and it presents real transparency and | :05:39. | :05:42. | |
safety. It is completely missing in the ICO market, it is very | :05:43. | :05:46. | |
anonymous, it is all out there in the ether and it's quite a | :05:47. | :05:51. | |
challenge. Out there in the ether, but shouldn't it be potentially an | :05:52. | :05:55. | |
easier move to bring in the regulation as opposed to banning it | :05:56. | :05:59. | |
out right? It is just there was too much heat, as you can see by the | :06:00. | :06:04. | |
numbers, they were very substantial. What the regulators are doing is | :06:05. | :06:07. | |
saying let's take a pause. I don't think it will be a long-term band, I | :06:08. | :06:12. | |
think things will come back quickly, regulators around the world are | :06:13. | :06:15. | |
called talking about it, in Singapore the MIF have issued | :06:16. | :06:20. | |
guidance. They will be very quick to try to create the opportunity for | :06:21. | :06:24. | |
people to do this but to do it in a more structured and secure way. Tim | :06:25. | :06:28. | |
Phillips speaking to me earlier. Nissan is about to unveil its | :06:29. | :06:33. | |
redesigned or electric car in Japan and it is revving up to be a highly | :06:34. | :06:38. | |
anticipated event giving, given the rising demand for green vehicles -- | :06:39. | :06:44. | |
all electric. What are the details? -- given. Nissan held its global | :06:45. | :06:49. | |
launch in the past couple of minutes, they are live streaming the | :06:50. | :06:53. | |
event in Japan and the redesigned car... I haven't seen what it looks | :06:54. | :06:58. | |
like yet but I expect it to be more sleek than the original Leaf but it | :06:59. | :07:03. | |
is expected to have the improved battery which is important because | :07:04. | :07:07. | |
it will give this all electric vehicle a wider range meaning with | :07:08. | :07:12. | |
one charge it can go for a longer distance. This is highly anticipated | :07:13. | :07:16. | |
because there is a significant growing demand for electric cars and | :07:17. | :07:21. | |
green vehicles but there aren't many affordable mass-market cars the | :07:22. | :07:25. | |
average person can buy. The Leaf is one of the world's top-selling | :07:26. | :07:30. | |
electric cars, it's only about $30,000, the Tesla Model 3 starts at | :07:31. | :07:37. | |
$35,000 and General Motors, another big competitor, as their car at | :07:38. | :07:43. | |
$37,500. Luxury ones start at $50,000 so many people watching this | :07:44. | :07:48. | |
launch. And we got a sneak peak at when you talked about what back are | :07:49. | :07:54. | |
looked at, factory much! Out of the global population 2 billion are | :07:55. | :08:00. | |
working mothers -- thanks very much. Research indicates mums are making | :08:01. | :08:06. | |
purchasing decisions in 80% of households so their spending power | :08:07. | :08:09. | |
is an attractive market for advertisers. In Asia spending on | :08:10. | :08:14. | |
baby products in Indonesia and Thailand combined are expected to | :08:15. | :08:19. | |
surpass $420 million by 2020 but not all marketing can deliver a success | :08:20. | :08:26. | |
story. Earlier I spoke to a member of a Japanese advertising agency and | :08:27. | :08:31. | |
I asked her about what campaigns resonate with mothers. All this year | :08:32. | :08:36. | |
the ones that worked well resonated well, one is very relevant to | :08:37. | :08:41. | |
mothers, the ones that understand us as mothers. Those not painting women | :08:42. | :08:47. | |
as stereotypes, not ones showing us in the household doing chores. | :08:48. | :08:51. | |
Something that really touches us in our hearts, something that talks to | :08:52. | :08:56. | |
ask. Examples would be, my personal favourite is Always, the hash tag, | :08:57. | :09:03. | |
like a girl, do you remember that? As a mother sometimes you want to | :09:04. | :09:07. | |
teach your children but they won't listen to you. Its powerful for the | :09:08. | :09:12. | |
people working to get this message across to really touched the mums' | :09:13. | :09:18. | |
heart and to tell these messages, very effectively. A product for | :09:19. | :09:23. | |
sanitary pads. It's an empowering message. We know there are lots of | :09:24. | :09:30. | |
differences in various countries cultural elites of the message you | :09:31. | :09:35. | |
are getting to these mums in this company, how are they different or | :09:36. | :09:40. | |
potentially the same messages? It started with... If you have many | :09:41. | :09:44. | |
friends in different cultures, cultures are more conservative. | :09:45. | :09:48. | |
There are very strict mothers. But today with millennial mums they are | :09:49. | :09:52. | |
more open-minded with gadgets, technology, totally different from | :09:53. | :09:56. | |
whatever part of the world you are in... I have a lot of friends from | :09:57. | :10:00. | |
different cultures and when you discussed at lunch breaks and | :10:01. | :10:03. | |
lunchtime we go, this is a rich source of information, I don't think | :10:04. | :10:07. | |
any marketer would know this and we chat amongst ourselves. This is a | :10:08. | :10:12. | |
rich source of data. There's 2 million working mums around the | :10:13. | :10:16. | |
world, that is a staggering number -- 2 billion. But you seen the | :10:17. | :10:20. | |
industry is slow to keep up, why is that? Because we refused to look at | :10:21. | :10:27. | |
it in a real way. We wanted to do cookie cutter communications demands | :10:28. | :10:31. | |
and we treated them like they all the same but they are not. That's it | :10:32. | :10:35. | |
for this edition of Asia | :10:36. | :10:36. |