07/11/2017

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0:00:00 > 0:00:03and other figures while on holiday.

0:00:03 > 0:00:15Now on BBC News all the latest business news live from Singapore.

0:00:16 > 0:00:20New revelations about apple's taxes from the Paradise Papers. We will

0:00:20 > 0:00:27hear the response from the company. And home ownership is becoming an

0:00:27 > 0:00:30elusive dream for many people as property prices in Asia continued to

0:00:30 > 0:00:42soar. Good morning, Asia, hello, world. This is Tuesday, glad you

0:00:42 > 0:00:47could join us for another exciting addition of Asia Business Report. We

0:00:47 > 0:00:59start off with Apple. The attack but he must has responded to claims from

0:00:59 > 0:01:02Paradise Papers, that it has a financial structure that allows it

0:01:02 > 0:01:05to avoid billions of dollars in taxes. After its controversial

0:01:05 > 0:01:10practices will crack down upon in 20 15, Apple moved its holdings to

0:01:10 > 0:01:18Jersey. Earlier I spoke to a technology correspondent and asked

0:01:18 > 0:01:22him what Apple are saying about these revelations.It seems that

0:01:22 > 0:01:27there will move may not have lowered that sustains a low-level. Discredit

0:01:27 > 0:01:32me about their tax arrangements in Ireland and it has moved its tax

0:01:32 > 0:01:37residency to Jersey and that means it has been able to maintain this

0:01:37 > 0:01:41low level of tax. Apple put out a statement this morning in Silicon

0:01:41 > 0:01:46Valley. They were reiterating some of the things they said in the past

0:01:46 > 0:01:49when their tax affairs have been under scrutiny, including that they

0:01:49 > 0:01:53are the biggest taxpayer in the world, paying almost $34 billion

0:01:53 > 0:01:57over the last three years. Most of their tax money goes to the Treasury

0:01:57 > 0:02:01here in the United States because that is where most of the value they

0:02:01 > 0:02:06create. They also say, crucially, that they say they follow the law

0:02:06 > 0:02:10and if the system changes and they will comply with those laws as well.

0:02:10 > 0:02:15The defence, we have heard before in the past, but again now that their

0:02:15 > 0:02:20taxes are being looked at again, they are keen to remind people of.

0:02:20 > 0:02:2834 billion US dollars in paid US tax. What is next now for apple?

0:02:28 > 0:02:37What will now be under scrutiny as the offshore amount they have. There

0:02:37 > 0:02:40is $252 billion held in offshore accounts from Apple. That accounts

0:02:40 > 0:02:45for around 55% of their global revenue. As I say, they say of the

0:02:45 > 0:02:50law does change and they would need to comply with that but as it stands

0:02:50 > 0:02:54they are happy they are paying every dollar of tax they owe in the

0:02:54 > 0:03:00various parts of the world in which they operate. They posted a further

0:03:00 > 0:03:03statement, reiterating that their headquarters in Ireland, their

0:03:03 > 0:03:08European headquarters is not about tax but having a solid grounding in

0:03:08 > 0:03:13Europe. The posted pictures showing Steve jobs touring some of those

0:03:13 > 0:03:16facilities. Apple are trying to clearly make the case that they have

0:03:16 > 0:03:20an interest in being in Ireland and it is not just about having

0:03:20 > 0:03:22favourable tax arrangements.

0:03:22 > 0:03:28Wilbur Ross has responded to claims that the paradise papers showed he

0:03:28 > 0:03:34owned shares in a company with Kremlin ties. Mr Ross owes a stake

0:03:34 > 0:03:38in Navigator Holiday -- holdings which owns millions of dollars

0:03:38 > 0:03:46exporting oil and gas for a Russian company. Two of its owners are under

0:03:46 > 0:03:50sanctions and are closely linked to Vladimir Putin.Wilbur Ross says

0:03:50 > 0:03:53there is nothing wrong with a stake in the company. Government has not

0:03:53 > 0:03:57come thus far, made a determination to sanction. There is nothing wrong

0:03:57 > 0:04:02with it. The fact that it happens to be a Russian company does not mean

0:04:02 > 0:04:09that there is any evil in it. Where there is evil is the misstatement

0:04:09 > 0:04:16that I did not disclose those holding.That was the US commerce

0:04:16 > 0:04:20Secretary Wilbur Ross. President Trump continues his 5-nation tour

0:04:20 > 0:04:24throughout Asia. He arrives in South Korea today for a nine-day stock

0:04:24 > 0:04:27where he will meet the South Korean president and visit a major US

0:04:27 > 0:04:32military base. It will not just the North Korea on the agenda, trade

0:04:32 > 0:04:35will also be a hot topic because President Trump has threatened to

0:04:35 > 0:04:39pull out of a free-trade deal between the two countries. For more

0:04:39 > 0:04:43on this trip to South Korea I'm joined now by my colleague. Monica,

0:04:43 > 0:04:50it is early morning here in Asia and he has tweeted again.Before getting

0:04:50 > 0:04:55on a plane from Tokyo to Seoul he sent out a tweet and it said getting

0:04:55 > 0:05:00ready to leave her South Korea and meetings with those in Moon. A fine

0:05:00 > 0:05:04gentleman. I think we are starting a good note here. They are all

0:05:04 > 0:05:09friends. Exactly. Except the US Korean trade agreement is not so

0:05:09 > 0:05:14hot. Back in April President Trump said it was a horrible deal and

0:05:14 > 0:05:17right now the current agreement, also known as chorus, is in

0:05:17 > 0:05:22jeopardy. In its current state as it is it is not looking so good.So

0:05:22 > 0:05:28they are not singing from the same court a chic?Exactly. This is

0:05:28 > 0:05:34because President Trump said it is a significant trade imbalance. South

0:05:34 > 0:05:41Korea is the sixth largest trading partner with the US, over $144

0:05:41 > 0:05:45billion worth of goods and services. Since the deal came into effect, the

0:05:45 > 0:05:54US goods deficit was South Korea has doubled to whether $27 billion. Most

0:05:54 > 0:06:00of which is made up from auto imports.There is a lot to iron out.

0:06:00 > 0:06:04So Donald Trump says there needs to be more reciprocity in trade. Thank

0:06:04 > 0:06:08you for that update. The computer chip industry could be in line for a

0:06:08 > 0:06:12big shakeup. Brought, has unveiled a $130 billion takeover bid for clock

0:06:12 > 0:06:23on. The company is responsible for supplying components forever be in

0:06:23 > 0:06:24smart phones every year.

0:06:24 > 0:06:29Broad, Amcor, are two of the world 's biggest chip maker 's. On the one

0:06:29 > 0:06:35hand, or a comp supplies chips for android. And on the other, cool, I

0:06:35 > 0:06:39found in most new iPhones that it will com has been the dominant

0:06:39 > 0:06:44player in the chipmaking business. In the last decade it has fallen on

0:06:44 > 0:06:49some hard times, falling share price, legal battles with Apple and

0:06:49 > 0:06:55an anti-trust investigation in Europe. While they were dealing with

0:06:55 > 0:06:58those issues, broad, has been steadily growing. It is now a

0:06:58 > 0:07:02dominant player in the chip business. The question is, will the

0:07:02 > 0:07:11deal goes through? True, Qualcom's issues make the company right for

0:07:11 > 0:07:19the picking. That many believe that this offer from Broadcom will be

0:07:19 > 0:07:23rejected because it undervalues Qualcom. A potential megamerger in

0:07:23 > 0:07:27the US tech industry between Broadcom and Qualcom. Almost

0:07:27 > 0:07:31everyone wants to own their own home but in several parts of Asia, that

0:07:31 > 0:07:37dream has become a lot harder. Aside from skyhigh prices in markets such

0:07:37 > 0:07:40as Hong Kong and Singapore, the New Zealand government is now looking to

0:07:40 > 0:07:49ban foreign property purchases. I spoke to a chief executive of the

0:07:49 > 0:07:53online portal group property guru. Asked if restrictions on foreign

0:07:53 > 0:07:56property ownership are a good idea. It is difficult. Robert E is an

0:07:56 > 0:08:02asset class and is always attractive. We live in a global

0:08:02 > 0:08:05economy and investors cross borders didn't you have domestic governments

0:08:05 > 0:08:08trying to protect the rights of their citizens while still trying to

0:08:08 > 0:08:13Bowyer the property site.It is a business. Why should it be

0:08:13 > 0:08:23politicised?Ownership is different. Having an own is a -- home is a

0:08:23 > 0:08:30realisation of a dream.It is not just a normal asset. Even in our own

0:08:30 > 0:08:33backyard, in Hong Kong, in New Zealand, locals are having

0:08:33 > 0:08:37difficulty purchasing property because it is unaffordable.I think

0:08:37 > 0:08:41it forces people to do more and more research to understand how they get

0:08:41 > 0:08:48around this. Here in Singapore alone we have 5.4 million people visit us.

0:08:48 > 0:08:54An all-time high. People need to know more about what their options

0:08:54 > 0:09:00are.Show should foreigners be blamed for skyhigh prices?There are

0:09:00 > 0:09:06no simple answers. For the property sector they want investors from all

0:09:06 > 0:09:10over the world and the government needs to balance that by making sure

0:09:10 > 0:09:14that locals have the right to accessible homeownership.What can

0:09:14 > 0:09:23locals do at this point to be able to purchase their own property?

0:09:23 > 0:09:27Salary inflation is not keeping in touch with real estate prices.It is

0:09:27 > 0:09:33about doing homework. Going online, going to other places and getting as

0:09:33 > 0:09:40much information as possible about financing. The more homework you do,

0:09:40 > 0:09:46the better deal -- cable you will be to deal. Why is property so popular.

0:09:46 > 0:09:52Many people take a long view on property. There is a stability that

0:09:52 > 0:09:57comes with it as well as an emotional connect. It is not seen as

0:09:57 > 0:10:04liquid and not susceptible to our and downs.And that was an online

0:10:04 > 0:10:10executive from property guru. Having a quick look now at the market, Asia

0:10:10 > 0:10:15is cruising to high levels in early mid-morning Tuesday trade. Japan is

0:10:15 > 0:10:22up by about 30 points. This is after US stocks climbed to record highs

0:10:22 > 0:10:29due to optimism about a Republican plan to cut tax. Sport Today is

0:10:29 > 0:10:41coming up next.