0:00:00 > 0:00:02For the first time in more than a decade, the Bank of England
0:00:02 > 0:00:06has increased interest rates.
0:00:06 > 0:00:16Let's get more of the business news from or with Sharanjit Leyl.
0:00:16 > 0:00:23It's official. The White House nominates to Rowen Powell as the new
0:00:23 > 0:00:29Fed chief. What will it mean for the markets? -- Jerome Powell. Would you
0:00:29 > 0:00:33drink beer with bacteria that is meant to be good for you? We check
0:00:33 > 0:00:41out a new beer in town. Welcome to Asia Business Report, I am Sharanjit
0:00:41 > 0:00:45Leyl. After weeks of speculation, the White House has announced its
0:00:45 > 0:00:50nomination for this man, Jerome Powell, to be the next chairman of
0:00:50 > 0:00:53the US Federal Reserve. His nomination needs to be confirmed by
0:00:53 > 0:01:01the Senate. Janet Yellen's term expires in February. I asked our
0:01:01 > 0:01:03North American business correspondence what she knows about
0:01:03 > 0:01:12his pick.He is a former investment banker. He brings something that
0:01:12 > 0:01:16Donald Trump doubt -- touted in the Rose Garden. Basically referencing
0:01:16 > 0:01:21the idea that he has some real world, job experience to bring to
0:01:21 > 0:01:29the job. This ties into the criticism. He wanted to see change
0:01:29 > 0:01:35at the Federal Reserve and it ties into complaints after the financial
0:01:35 > 0:01:44crisis. Perhaps the Federal Reserve had gone too far. Having someone
0:01:44 > 0:01:50with a Wall Street background could have a big impact going forward as
0:01:50 > 0:01:53to what the rules and regulations might look like because that is part
0:01:53 > 0:02:02of the Central Bank's mandate. The other thing that his departure is he
0:02:02 > 0:02:18doesn't have a deep background in economics. He is not a Ph.D.. But it
0:02:18 > 0:02:23is certainly something of note.The status do that is a bit of a
0:02:23 > 0:02:27departure from its predecessor. Will there be any surprises in the
0:02:27 > 0:02:31Federal Reserve's move to raise rates?If you look at the reaction
0:02:31 > 0:02:37from investors, in their mind, the nomination of Jerome Powell means
0:02:37 > 0:02:40that volatility, the kind of uncertainty has been removed. They
0:02:40 > 0:02:45expect it will continue on the path that Janet Yellen has set, which is
0:02:45 > 0:02:50to gradually raise interest rates. I was talking to someone who made an
0:02:50 > 0:02:55interesting point which is history shows that usually, financial crises
0:02:55 > 0:02:59don't tend to repeat themselves. We don't know what the next one will
0:02:59 > 0:03:05look like -- will look like. In that sense, the status quo candidate may
0:03:05 > 0:03:09not actually turn out to be a positive but again, it's too soon to
0:03:09 > 0:03:13tell and as things currently stand, we don't know what dangers lie in
0:03:13 > 0:03:19the waters ahead.That was our North American business correspondence
0:03:19 > 0:03:23Michelle Fleury. Apple shares hit a new record high after a quarterly
0:03:23 > 0:03:35profit of $10.7 billion but it isn't all good news. US chipmaker Qualcomm
0:03:35 > 0:03:43is suing.Apple logs its best quarterly result in two years and
0:03:43 > 0:03:49has new iPhone models coming out. We saw pictures of camping out for the
0:03:49 > 0:03:53new iPhone X which might help it become $1 trillion company.
0:03:53 > 0:03:59Quarterly sales rose in China because it lifts the fortunes of all
0:03:59 > 0:04:05of Apple's suppliers. That is why this legal spat with Qualcomm is not
0:04:05 > 0:04:14good for business. This legal dispute, Qualcomm accused Apple
0:04:14 > 0:04:21allowing access to its rival Intel. Qualcomm is using its market
0:04:21 > 0:04:26dominance to bully its competitors and overcharge its customers so we
0:04:26 > 0:04:32are seeing reports coming out that Apple may look to drop Qualcomm to
0:04:32 > 0:04:37some of its suppliers -- or some of its devices so Qualcomm might not
0:04:37 > 0:04:43provide chips for the iPhone or right hand.We know this isn't the
0:04:43 > 0:04:47only legal tussle that Apple is involved is.The other one is over
0:04:47 > 0:04:52technology licensing. But Apple has been fighting Samsung for many
0:04:52 > 0:04:58years. Apple 1 $1 billion in damages from Samsung but Samsung's lawyers
0:04:58 > 0:05:04managed to whittle it down to $400 million but that case will go to
0:05:04 > 0:05:08trial once again whether lawyers of Samsung might be able to bring the
0:05:08 > 0:05:14figure down further or reach a settlement.Starbucks has announced
0:05:14 > 0:05:25an agreement to sell Tazo to Unilever after disappointing sales.
0:05:25 > 0:05:29The copy chain posted underwhelming quarterly earnings -- earnings due
0:05:29 > 0:05:33to smelling foot traffic, changing dining habits and the impact of
0:05:33 > 0:05:42hurricanes hardly and Irma. It is focusing on Asia as North American
0:05:42 > 0:05:53sales shrink. China's macro -- Alibaba reported profit way above
0:05:53 > 0:05:56expectations. The non-stop growth has seen shares more than double
0:05:56 > 0:06:00this year but it's not all just one big retail operation for the
0:06:00 > 0:06:08e-commerce giant. It has also been branching out to diversify in new
0:06:08 > 0:06:13areas like cloud services, financing and logistics. Earlier, I asked a
0:06:13 > 0:06:19senior market analyst at what she thought led to its growth.There are
0:06:19 > 0:06:23growth in other aspects of its business but most of it comes from
0:06:23 > 0:06:30its core business and a seat coming from three aspects. How it has
0:06:30 > 0:06:37managed to increase its product offerings. Secondly, I see new
0:06:37 > 0:06:48retail. Essentially, increasing efficiency. Cost in international
0:06:48 > 0:06:53business. We see how it has increased its offerings to more
0:06:53 > 0:07:02Southeast Asian countries and international business.You
0:07:02 > 0:07:06mentioned its rivals. Will Alibaba be the undisputed leader in
0:07:06 > 0:07:12e-commerce in China? Can these results be sustained? Does it have
0:07:12 > 0:07:20to do with competition?I think Alibaba has a huge advantage. It has
0:07:20 > 0:07:32its own payment platform.And what about the vision of Jack Ma for
0:07:32 > 0:07:44Alibaba? What is your plan to do?Is larger vision is to use data to
0:07:44 > 0:07:53drive logistics. We see this in the earnings announcement. There is now
0:07:53 > 0:08:01the majority stakeholder. Using dated to drive more efficient
0:08:01 > 0:08:08logistics. That is how we see the link to the blending, using
0:08:08 > 0:08:19essentially efficiency.
0:08:19 > 0:08:24Singaporean scientists have brewed a probiotic beer they say can improve
0:08:24 > 0:08:32the health and boost the immune system. There is nothing like a cold
0:08:32 > 0:08:36beer on a hot day and it's even better when it is supposedly good
0:08:36 > 0:08:43for you. Scientists in Singapore have developed a brew that contains
0:08:43 > 0:08:48probiotics, bacteria that is known to aid digestive and an improved the
0:08:48 > 0:08:55Moon system. This scientist has been experiencing -- experimenting with a
0:08:55 > 0:09:04recipe for almost a year.I thought it would be interesting to do
0:09:04 > 0:09:08something that is outside the box and come up with a product that
0:09:08 > 0:09:12people have not thought of before. Every 100 millimetres, just over a
0:09:12 > 0:09:20mouthful, contains about 1 billion probiotic organisms. Slightly sour.
0:09:20 > 0:09:22I'm getting a hint of grapefruit coming through. It's quite
0:09:22 > 0:09:30refreshing. Is there a market for it?Cheers. It could do well to them
0:09:30 > 0:09:39to target it to women in the initial phase because women in general are
0:09:39 > 0:09:43more health conscious when it comes to drinks and also, we see that
0:09:43 > 0:09:49women are a lot more adventurous in trying new products.The researchers
0:09:49 > 0:09:53have filed patents are now hoping that by the end of next year, the
0:09:53 > 0:09:59brew will be available at a pub near you. Soon enough, having a pint may
0:09:59 > 0:10:06help your gut stay healthy. All in moderation, of course.
0:10:06 > 0:10:12I tell you what, other investors have been toasting those record
0:10:12 > 0:10:15gains on Wall Street which continues to filter into the age -- the Asian
0:10:15 > 0:10:23market. The All Ordinaries over in Australia also making games, May --
0:10:23 > 0:10:32mainly due to mining and resources stocks. That is