27/10/2017 Asia Business Report


27/10/2017

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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of helping her husband prepare

to carry out an act of terrorism.

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Madihah Taheer had bought him

a large combat knife

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to use in an attack.

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Now on BBC News all the latest

business news live from Singapore.

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Anderson and Alphabet do not

disappoint their

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Anderson and Alphabet do not

disappoint their investors as shares

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surged beyond expectations. A sign

of The Times, the last day of floor

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trading on the Hong Kong stock

exchange.

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Welcome to Asia Business Report.

A bumper crop of tech earnings have

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shown stellar results. Online

companies like Amazon and Alphabet,

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Google+ parent company, delivered

better earnings and sent stocks

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soaring.

I spoke to our North America

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technology reporter in San Francisco

and asked if Twitter could turn a

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profit in the not too distant

future...

This is one of the best

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days on the stock market that

Twitter has had since it went public

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in a few years ago. The CEO says

that in the next quarter, because

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they could raise costs and revenue

in the licensing side of the

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business, for the first time in the

company's history they could turn a

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profit.

It was a busy day in terms

of earnings, we heard from Amazon as

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well as Alphabet, what did they tell

us?

A busy day indeed. Amazon had an

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incredibly strong showing, not a

great increase in profit but

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investors are often more worried

about growth at Amazon and they have

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excelled there today. Revenues at

$43.7 billion in the last quarter,

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up 34% on this time last year. A big

jump. Some of the money has come

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from All foods, you will remember

that Amazon bought them back in

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August for just over $13 billion. --

Whole Foods. Bringing in extra

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revenue for the company,

contributing to an enormous figure

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of $43.7 billion for the last

quarter. Alphabet has had a strong

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quarter, their profits are the key

figure. 833% rise in profits

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compared to this time last year.

But, there are a of slightly

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troubling alphabet earnings. The

TAC, the amount of money that Google

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has to pay in order to get people

looking at its ads, placing those in

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certain areas of the Internet. They

spent more than $5 billion on

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traffic acquisition in the last

quarter, up considerably more than

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analysts hoped. Good news for

Alphabet but there are troubling

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signs in there as well.

And another

business news... Toymaker Mattel is

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suspending its quarterly dividends

after they suffered a head from the

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bankruptcy of its largest retailer,

Toys "R" Us. Their shares sell 16%

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to $13 when the company said they

suffered a loss of more than $600

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million in the three months which

ended in September. The California

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-based company was also heard by

weak demand of its core products

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like Barbie, Hot Wheels, Thomas and

Friends and Monster Hi. His message

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will focus on creating a sustainable

wealth for all. Earlier, I was

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joined by Joss and asked if the

Prime Minister can offer to entice

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voters.

I think the point is

Malaysia is in a good place now.

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Growth is on an upswing and

government revenues have recovered.

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There is an improvement in the

revenues from the oil and the

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sector, with additional dividends

for the second half of the year.

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There is a lot of flexibility to

continue with fiscal consolidation,

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which is lower budget deficits,

moving towards a neutral deficit.

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Suspending wages which have been on

an upward trend over the years.

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Increasing measures which help

private consumption.

What will be

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puzzling to viewers, especially

outside of Malaysia, that he remains

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quite popular in spite of the

ongoing scandals surrounding one

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ADB. Is that partly because of the

economy performance?

Most of the

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data suggests the economy and

Malaysia has seen one of the

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strongest recoveries, and the growth

is broad-based. Consumption is above

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trend in recent years. We have seen

a growth in exports in addition to

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investment so the economic outlook

is quite bright in Malaysia and for

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the most part, we expect it to

continue into the next two years.

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What kinds of measures can we expect

which would help ordinary people?

On

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the revenue side, tax has been a

large driver of revenue and has a

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negative impact for the lower income

brackets in the population. Part of

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the spending can offset the impact

of GST, boosting revenues. That's

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where we have welfare payments in

addition to broader spending on

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wages. That is something the Prime

Minister promised or at least

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suggested to civil servants a few

weeks back. We can expect the trend

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to continue. It doesn't mean that

the economy will be deprived of

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infrastructure spending. The

coalition government is good at

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incorporating budget financing like

contributions from private

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investors, as well as in Chinese

infrastructure.

P45th Tokyo motor

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show opens its doors to the public

at the weekend where Japanese

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car-makers will be showing off the

latest technology. It comes at a

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time where the image of Japanese

quality has taken a hit from

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scandals like the Nissan airbag

recalls. Earlier, I spoke to an

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analyst in Tokyo.

We have a lot of

companies introducing automatic

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driving cars, all of those old

companies are eager to start using

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those models.

And it comes at a time

when we've had quite a lot of

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scandals from Japanese companies,

Nissan and Kobe steel. Those

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scandals are quite different but has

it been talked about in the industry

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a lot? The quality of made in Japan?

I do not think there is any major

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problem in the quality front of

Japanese products. At this point,

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the biggest questions are

surrounding compliance and

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especially Nissan, the day did not

really follow. The procedure of

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inspection in Japan. That's been the

case because many of those companies

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are getting used to 20 or 30 years

of traditional practice. They are

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providing -- it is busy. These

different factors relating to those

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companies and the procedure of

inspections, but it does not

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necessarily mean that there is an

immediate threat.

The end of an era,

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the Hong Kong stock exchange will

close the trading floor after 31

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years on Friday. In its heyday, the

floor was home to more than 1000

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stockbrokers but the rise of

electronic and Internet training has

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changed the industry.

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FUNKY MUSIC

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TRANSLATION:

The world is changing,

financial technology is changing. We

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should get with The Times, even if

we don't want to go.

TRANSLATION:

I

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started as a broker after finishing

school. It's been over 40 years.

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They used to be four exchanges. It

combined to become one exchange in

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1986, and we moved into this hole.

-- wall. We have a deep affinity

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with the place. We work together

side by side chatting all to

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-- chatting all day. At the time,

the electronic trading system was

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not as developed as it is now. All

transactions had to go through a

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centralised system. There were

thousands of people here. Printers

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were running all the time. It was a

noisy and busy atmosphere. We

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started as just a small regional

stock exchange. Then it became an

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international financial centre.

Stockbrokers have gone through

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countless financial crises that we

have persevered. Stockbrokers make

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great contributions. This is

something we are very proud of.

Next

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hour, we will be speaking to Juliana

at the stock exchange. Stay tuned

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for that. In the markets... This is

how Asia has opened.

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We will continue to monitor shares

in Kobe steel and Nissan as well.

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That's all for this edition of Asia

Business Report. Sport Today is

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coming up next.

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