08/09/2017 Asia Business Report


08/09/2017

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

:00:00.:00:18.

Irma churns through the Caribbean towards Florida, one week after

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

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

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

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Report. As you've been hearing Newsday,

:00:41.:00:49.

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

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

:00:56.:01:00.

which caused severe flooding and displaced more than 1 million

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people. The damage bill from Hurricane Harvey is currently

:01:04.:01:09.

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

:01:10.:01:14.

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

:01:15.:01:18.

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

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tremendously, however the consequences for the population is

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

:01:29.:01:37.

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

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

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

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

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insurance industry has been quite resilient in its capacity to cover

:01:57.:02:01.

events because they use actual estimates the project potential

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

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

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build up reserves. Of course insurance companies also use

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

:02:19.:02:23.

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

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

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

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such weather-related events will intensify.

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

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biggest cyber bridges, potentially compromising the personal details of

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

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

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attacks are becoming more commonplace. What makes this

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

:03:10.:03:13.

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

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one of three credit reporting agencies in America. They collect

:03:19.:03:23.

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

:03:24.:03:28.

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

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we imported. With 143 million people potentially affected by this

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

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hackers targeted wings like names, addresses, birthdays, driving

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

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

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

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

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can protect their information online. Quite a worrying

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

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

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

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

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

:04:26.:04:29.

period of economic expansion in more than a decade.

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

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

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

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

:04:49.:04:52.

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

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fraternity brother before the actual earnings were released.

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

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

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

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

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

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of Adelaide spoke to our correspondent.

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Learning techniques tested over decades, these students hope they

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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are several decades behind where Australia was -- vineyards.

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

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knowledge can have international awards. This winery in the Adelaide

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

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

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trend of using Chinese imagery or Chinese references like the number

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

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and realising that Australian wine needs to be about the Australian

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story and our pedigree, a region a key.

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

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

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

:07:57.:08:02.

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

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

:08:07.:08:10.

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

:08:11.:08:14.

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

:08:15.:08:18.

global chief executive of a champagne maker and asked how

:08:19.:08:21.

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

:08:22.:08:27.

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

:08:28.:08:36.

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

:08:37.:08:40.

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

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

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

:08:55.:09:00.

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

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

:09:06.:09:10.

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

:09:11.:09:15.

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

:09:16.:09:19.

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

:09:20.:09:26.

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

:09:27.:09:30.

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

:09:31.:09:35.

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

:09:36.:09:42.

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

:09:43.:09:56.

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

:09:57.:10:01.

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

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

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

:10:16.:10:21.

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

:10:22.:10:26.

are continuing geopolitical worries over the Korean crisis. The

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Australian market is flat, mirroring what happened on Wall Street

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yesterday. That's it. Thanks for watching Asia

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