02/11/2017

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0:00:00 > 0:00:03rates steady after a key decision at the US Central Bank. Social media

0:00:03 > 0:00:06giants return to Capitol Hill for more questions over the involvement

0:00:06 > 0:00:12of Russia in the US presidential election. Good morning, Asia. Hello,

0:00:12 > 0:00:15world. Welcome to another edition of Asia Business Report. I am Rico

0:00:15 > 0:00:24Hizon. It's a Thursday. Thank you for joining me. We start off with

0:00:24 > 0:00:31the Federal Reserve and the Central Bank decided to keep the cost of

0:00:31 > 0:00:36borrowing unchanged following a two-day meaning. They cited solid

0:00:36 > 0:00:42labour market positions. But it is not the decision everyone is

0:00:42 > 0:00:45focusing on it. Later today, US President Donald Trump is expected

0:00:45 > 0:00:50to announce his nominee for the Fed Share before departing on a long

0:00:50 > 0:00:56trip to Asia. For more on who the choice could be, we are joined by

0:00:56 > 0:01:02our business reporter. Well, this could be the last few months for

0:01:02 > 0:01:10Janet Yellen as Fed Chair.People are saying the cat is out of the

0:01:10 > 0:01:15bag. Multiple media reports say Donald Trump will nominate Gerome

0:01:15 > 0:01:20Powell, meaning the four-year term of Janet Yellen will end next

0:01:20 > 0:01:27January. In her time as the Fed Chair, she has seen low inflation

0:01:27 > 0:01:33and robust growth. That is why we have seen the economy turn a corner.

0:01:33 > 0:01:40Are expected to go up again in December. In fact, the Federal Fund

0:01:40 > 0:01:46Futures are pricing that in that 98%. Markets expect rises in 2008

0:01:46 > 0:01:55in, but that could change under Mr Powell.Who is he?A lawyer used to

0:01:55 > 0:02:03be at the Carlisle Group. He is expected to maintain continuity. He

0:02:03 > 0:02:07is in favour of a low interest-rate environment and may continue with

0:02:07 > 0:02:13the of Janet Yellen, gradually increasing costs. It is interesting

0:02:13 > 0:02:17that he seems to be a supporter of deregulation. The White House does

0:02:17 > 0:02:22not want so many rules for businesses. He may support the White

0:02:22 > 0:02:39House. What is more interesting, he will be the first Fed Chair since

0:02:39 > 0:02:43Walker if nominated to not have a PHD in economics.His name has been

0:02:43 > 0:02:47floated around in the past few weeks. What has been the reaction?

0:02:47 > 0:02:50He was considered the front-runner for a number of weeks, as you said.

0:02:50 > 0:02:58Betting websites have priced in expectation of him being nominated.

0:02:58 > 0:03:09We saw some gains in the US and Asian trading market.Thank you.

0:03:09 > 0:03:16Social media has been grilled by policy makers. They were taken to

0:03:16 > 0:03:20task over why they did not identify and address the meddling of Russia

0:03:20 > 0:03:25in the US presidential race by posting fake advertisements and

0:03:25 > 0:03:33stories. The three firms have an interest in having it corrected

0:03:33 > 0:03:38without additional regulation. Earlier, I asked if they were

0:03:38 > 0:03:43successful in their mission.I am not sure if they were successful.

0:03:43 > 0:03:47Much of the mission was to roofs to the senators they could handle this

0:03:47 > 0:03:52situation alone and could use their own technology to get rid of these

0:03:52 > 0:03:58advertisements and organic content shared naturally. -- prove to. I

0:03:58 > 0:04:02don't think the panels were convinced these companies could do

0:04:02 > 0:04:07that. On the flipside, I am not sure the panel had much of an idea of

0:04:07 > 0:04:12what particular regulations would be helpful to solve the problem. One

0:04:12 > 0:04:17particular senator, John Kennedy, he said he did not think it was

0:04:17 > 0:04:21possible to monitor all of the content coming through Facebook, and

0:04:21 > 0:04:26so the problem may not ever be sold at all. A huge problem for Facebook.

0:04:26 > 0:04:30One thing that stood out for me was what came from the California

0:04:30 > 0:04:37senator who is supportive of Silicon Valley companies and growing them.

0:04:37 > 0:04:41Today she said they just did not get it and this was the beginning of

0:04:41 > 0:04:45cyber warfare. Two very long and very tough days for the social media

0:04:45 > 0:04:50companies.Despite this cyber warfare, this controversy has not

0:04:50 > 0:04:55had an impact on Facebook's profitability. It posted better than

0:04:55 > 0:05:02expected quarterly numbers. Do you expect this will continue?Yes. The

0:05:02 > 0:05:07latest numbers once again beating analyst expectations. They set high

0:05:07 > 0:05:11expectations as well anyway. Beating them is quite something. $10.3

0:05:11 > 0:05:17billion of revenue in the last quarter, up 49% on last year. Doing

0:05:17 > 0:05:22well. It comes with a warning which I will read. Mark Zuckerberg said

0:05:22 > 0:05:28profitability will be hit by employing more security staff. He

0:05:28 > 0:05:32said we are investing in so much security that it will impact on

0:05:32 > 0:05:38profitability. By protecting security is more important than

0:05:38 > 0:05:42maximising profits. -- but. The pressure surrounding the current

0:05:42 > 0:05:45crisis, fake news and Russian influence, it could have an effect

0:05:45 > 0:05:53on their bottom line next year.From Washington, DC. $23 trillion, that

0:05:53 > 0:06:01is what the Paris committee has done to fight climate change. They said

0:06:01 > 0:06:07they could reach almost $3.5 trillion by 2025. Which green

0:06:07 > 0:06:12sectors can investors find the best return on money? I earlier spoke to

0:06:12 > 0:06:19a Singapore manager for IFC.We looked at several sectors for

0:06:19 > 0:06:24attractive investment. Renewable energy, food solar energy, and

0:06:24 > 0:06:31battery storage. Urban transport as well, water, and urban waste

0:06:31 > 0:06:36management. We think Asia should be at the forefront of this, in terms

0:06:36 > 0:06:41of total demand and technology innovation.What is the interest of

0:06:41 > 0:06:46the private sector in those seven sectors?They are good investment

0:06:46 > 0:06:50opportunities. Look at last year, taking Asia, for example. Look at

0:06:50 > 0:06:55China and India to be they account for half of the global energy

0:06:55 > 0:06:59capacity. China alone put into the five gigawatts of solar, 34

0:06:59 > 0:07:06gigawatts of wind. -- 35. That was one third of global investment.

0:07:06 > 0:07:13Since coming to power, India's Prime Minister has been trying to attract

0:07:13 > 0:07:16businesses from around the world to set up shop. Narendra Modi now has a

0:07:16 > 0:07:23reason to celebrate. A bank report says it is much easier to do

0:07:23 > 0:07:26business there. They have jumped 30 places in the annual survey looking

0:07:26 > 0:07:35at how easy it is to do business. We have more from Delhi. Make in India,

0:07:35 > 0:07:41a message from Narendra Modi and one that is important to his economic

0:07:41 > 0:07:45policy. Launched in 2014, the government promised to make doing

0:07:45 > 0:07:50business easier and to transform India into a global many factoring

0:07:50 > 0:07:57hub. Three years on, it seems it is finally paying off.India should be

0:07:57 > 0:08:03a place where a person decides to do business. The time gap between his

0:08:03 > 0:08:08decision and the actual start of the business should be very narrow. I

0:08:08 > 0:08:13think every detail which is coming out seems to be in the more positive

0:08:13 > 0:08:20zone.The World Bank agrees. In its annual ease of doing business

0:08:20 > 0:08:28report, India has jumped 30 places. It scored highly on paying taxes,

0:08:28 > 0:08:33access to credit, and resolving debt problems. So, some aspects have

0:08:33 > 0:08:40improved. It takes about 30 days for new businesses to register compared

0:08:40 > 0:08:47to 127 days 15 years ago. But it is a long road ahead. In fact, it is

0:08:47 > 0:08:52getting more difficult for businesses to navigate aspects of

0:08:52 > 0:08:55starting a business like registering a property and enforcing contracts.

0:08:55 > 0:09:01Like many smaller companies, this nursery is struggling with goods and

0:09:01 > 0:09:06services tax. It overhauled the way businesses pay taxes, but has caused

0:09:06 > 0:09:11major disruption is since it was introduced. And although it is

0:09:11 > 0:09:16expected to improve India's standing, it was not considered in

0:09:16 > 0:09:21this year's report.Especially filling the form. It is quite

0:09:21 > 0:09:24complicated and many documents are required, many pages to be filled.

0:09:24 > 0:09:31If it can be simpler, we could do it ourselves.This woman is now looking

0:09:31 > 0:09:37to expand her business. That will involve attracting funding from

0:09:37 > 0:09:41abroad. Business owners will be hoping the investors will be

0:09:41 > 0:09:46encouraged by improvements in the business climate rather than the

0:09:46 > 0:09:57drawbacks. BBC News, Delhi. A quick look at the markets. Asian stocks

0:09:57 > 0:10:07are flat to higher. South Korea and Japan up slightly. All ords gaining

0:10:07 > 0:10:0957. Have a wonderful Thursday, everyone.