08/09/2017 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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Now on BBC News all the latest business news live from Singapore.


Irma churns through the Caribbean towards Florida, one week after


Harvey slams into Texas. But who bears the cost? And earning a degree


in winemaking. Find out why this dude and are choosing to learn the


trade in Australia. -- these students. Welcome to Asia Business


Report. As you've been hearing Newsday,


Hurricane Irma is barrelling through the Caribbean towards the US. Irma


arrives a little over a week after Hurricane Harvey slammed into Texas,


which caused severe flooding and displaced more than 1 million


people. The damage bill from Hurricane Harvey is currently


estimated at about $180 billion, with much of the bill going towards


the taxpayers. Earlier I spoke to someone from research house and


asked who is likely to foot the bill. The range of damage can vary


tremendously, however the consequences for the population is


very much linked to insurance. So the ability of the countries to


ensure and take private cover varies tremendously and that also in packs


and long-term impact. Nonetheless, with the intensity of storms and the


frequency, surely this will take a toll on the insurance industry?


Certainly, but they prepare for this over hundreds of years. The


insurance industry has been quite resilient in its capacity to cover


events because they use actual estimates the project potential


losses. How much are they prepared to deal with the intensity that we


are seeing now and the frequency? They've had some good years and


build up reserves. Of course insurance companies also use


reinsurance so they spread the risk between insurers, citing they have


the capacity. Of course one of the big problem is that happening right


now is climate change is changing the dimension of the intensity of


storms and the projections by many scientists are that the damage from


such weather-related events will intensify.


US credit reporting agency Equifax may have suffered the country's


biggest cyber bridges, potentially compromising the personal details of


about 143 million consumers. Shares were down as much as 13% in market


trading. Our reporter has more. What's happened? We know that cyber


attacks are becoming more commonplace. What makes this


interesting is the size and scope of this attack, one of the largest to


head to America behind the large one that he Yahoo last year. Equifax is


one of three credit reporting agencies in America. They collect


financial data into build a credit score. People need this in order to


buy a car or house or apply for a student loan, for example, to which


we imported. With 143 million people potentially affected by this


information breach, that's about half of the US population. The


hackers targeted wings like names, addresses, birthdays, driving


licence numbers, social Security numbers and about 200,000 Americans


also saw their credit card numbers taken. So the CEO of the company has


apologised for what he called a disappointing event, but it will


take a long time to recover from this and assure customers that they


can protect their information online. Quite a worrying


development. Thank you. In other news, Japan's government


has revised the economy's growth rate in the second quarter. Gross


domestic product rose by 2.5% in the three months to June, but that's


down from a more preliminary estimate of 4%. The revised figure


came in below the average forecast, but still marks Japan's longest


period of economic expansion in more than a decade.


Amazon Fire TV a second headquarters in North America, with a whopping $5


billion. US states like Colorado are now going to compete for the


contract, which could bring in about 15,000 new jobs. Separately, a


former analyst for Amazon Fire TV guilty to insider trading will stop


the former employees sold details about its results to a form of


fraternity brother before the actual earnings were released.


Students from China are hoping to emulate the success of companies in


Australia by heading there to study winemaking. In the last 20 years,


the value of Australian wine exports has more than doubled to over 1.8


billion dollars US. Last year China became its biggest customer, with


orders up 44% in the year. The students enrolled at the University


of Adelaide spoke to our correspondent.


Learning techniques tested over decades, these students hope they


are on the path to prosperity. You don't have to be a connoisseur to


know turning grapes into wine can be a very profitable business. But by


coming to learn in Australia, home to some of the world's exist wine


brands, they can clearly see opportunities ahead. Hopefully I can


be a winemaker in a big winery at the beginning and in the and I can


have my own winery. Do you think one day you can make Chinese wine that's


as good as or even better than French, Italian or Australian wine?


Probably, definitely. But there are differences because we have a very


short winemaking history, so there's a long way to go. The University of


Adelaide has seen a number of Chinese didn't in rolling for


winemaking degrees travel in five years. Drawn not so much by the


weather, but by the booming local industry. Winemaking here in the


Barossa Valley is known around the world. Australia is the fifth


biggest wine producer over the planet -- on the planet, but could


soon be overtaken by China. The Chinese wine makers are issue won't


be the quantity and quality. And that doesn't come quickly. Australia


took decades to shake off the snobbery attached to wine, so can


China do the same? Vignettes are only ten or 15 years old, so they


are several decades behind where Australia was -- vineyards.


Knowledge is needed to know what works best. Used well, that


knowledge can have international awards. This winery in the Adelaide


Hills has won gold medals for extra rows and plenty of orders in China


as well, but customers are becoming more demanding. You start to see the


trend of using Chinese imagery or Chinese references like the number


eight. I think we are seeing a consumer that's getting on the back


and realising that Australian wine needs to be about the Australian


story and our pedigree, a region a key.


As China's wine market mature is, these students hope they will have a


part to play and get to enjoy the fruits of their labour.


Well, it's not just Australia or China, Europe, the traditional home


of wine, and in European wine consumption is slowly falling. Asia,


specifically China, is the new growth market for wine, expected to


become the second most valuable maker by 2020. Is it time for


producers to pop the court and celebrate? Earlier I spoke to the


global chief executive of a champagne maker and asked how


important markets like China were for her company. We are not so much


interested in trying to become like a fashion brand, because when you


take over a house, there's so much craftsmanship and it is limited in


its volume, you take 20 years to make a champagne. You have to be


very careful and try to work with market that are stable, where you


can guarantee the sustainability and long-term stability. So it's crucial


to try to meet that demand. Let's take a look at global champagne


sales. They fell by 2% in 2016 will stop this was partially driven by


lower sales in the UK due to Brexit. In France as well, your home market,


where there were terror attacks, fewer tourists visiting, are you


worried about the future of the industry? Though. I'm not worried


about the industry. I think it's a normal temporary kind of thing. In


the case of France, there is a big consumption and very low price for


champagne, which is not very healthy. So it will change and in


the case of the UK it is Brexit, but also very significant is per se --


Prosecco. For a long time Japan has been one of your biggest markets. It


is a big market. In the past, 40 years ago, it was a big spirits


market. In its evolution, it is now an important market for champagne.


Let's take a look at the markets. The Nikkei over in Japan has opened


lower. Of course as stronger Japanese yen isn't helping and there


are continuing geopolitical worries over the Korean crisis. The


Australian market is flat, mirroring what happened on Wall Street


yesterday. That's it. Thanks for watching Asia