0:00:00 > 0:00:01figures, which weren't attended by UK Government officials,
0:00:01 > 0:00:04on her trip to the country.
0:00:04 > 0:00:14Now on BBC News all the latest business news live from Singapore.
0:00:14 > 0:00:21Leaders of the world's two leading economic powers are set to meet as
0:00:21 > 0:00:26President Trump stops off in China. And one year after India's shock de
0:00:26 > 0:00:31monetisation, we look at how will rural villages are coping with going
0:00:31 > 0:00:39cashless. Welcome to Asia Business Report.
0:00:39 > 0:00:46When US President Donald Trump arrives in China today he will be
0:00:46 > 0:00:49joined by the bosses of more than 200 American businesses. During
0:00:49 > 0:00:54their visit they will look to strike billions of dollars worth of deals,
0:00:54 > 0:00:58but there are many sticking points, including America's huge trade
0:00:58 > 0:01:07deficit with China, which dealt with over 300 billion dollars worth of
0:01:07 > 0:01:16goods last year. Earlier I spoke to the chief investment officer for the
0:01:16 > 0:01:21Asia-Pacific At Credits. I asked if Mr Trump was likely to make much
0:01:21 > 0:01:26headway.Certainly there will be a number of large multibillion dollar
0:01:26 > 0:01:31deals announced, but whether or not simple trade can actually be
0:01:31 > 0:01:41meaningfully influence market access and mutual confidence, I don't think
0:01:41 > 0:01:49it will.We know Mr Trump has a number of chief executives in some
0:01:49 > 0:01:51of the large firms, including Goldman Sachs. We are expecting
0:01:51 > 0:01:54these deals to be announced and further market access for these
0:01:54 > 0:02:03companies. Are you suggesting these are -- this is surface gloss?Trade
0:02:03 > 0:02:08is one of those intractable problem is that the US had many difficulties
0:02:08 > 0:02:13with in the 80s and 90s with Japan. It's not going to go away. Where
0:02:13 > 0:02:21there is real concern is whether there is access, which clearly there
0:02:21 > 0:02:26is not.Does the blame lies with China?I think China's willingness
0:02:26 > 0:02:32and ability to open up its market in the same way for example that the US
0:02:32 > 0:02:35does is not really there. I don't think anyone would suggest
0:02:35 > 0:02:40otherwise. From an economic perspective, clearly there is a
0:02:40 > 0:02:44homebuyers in China which is likely to remain for some time. -- home
0:02:44 > 0:02:50buyers. This does lead ultimately to the large instances of trade
0:02:50 > 0:02:54imbalances. At what we found with Japan, and I think it's a reasonable
0:02:54 > 0:02:59blueprint for China, is that it takes a long time for this
0:02:59 > 0:03:05imbalances to diminish.Do you think this imbalances to some extent, the
0:03:05 > 0:03:09market access China could provide the US financial providers, the
0:03:09 > 0:03:13argument is that it could help China gain financial maturity in its own
0:03:13 > 0:03:19markets. Are there plus side is for China?That's a good point, but it
0:03:19 > 0:03:24does, the cost of a local financial institutions and I don't think
0:03:24 > 0:03:26there's yet the political willingness or ability to
0:03:26 > 0:03:31countenance that hit. Shares in the parent company of
0:03:31 > 0:03:35Snapchat took a tumble after it reported worse than expected
0:03:35 > 0:03:40earnings. That's a third straight earnings miss. Stocks plummeted by
0:03:40 > 0:03:47as much as 20% and earlier I spoke to our North American technology
0:03:47 > 0:03:50correspondent and asked why investors are abandoning the
0:03:50 > 0:03:53company. Several missed the target is forced
0:03:53 > 0:03:57Snapchat in this round of earnings. They only added 4.5 million users.
0:03:57 > 0:04:01Investors had hoped for a 8 million. They also announced that their
0:04:01 > 0:04:07advertising rates, the amounts companies pay to advertise, has gone
0:04:07 > 0:04:12down by 60%, as they tried to change to a new system for selling out.
0:04:12 > 0:04:16That didn't work as they would have liked. And one of the most
0:04:16 > 0:04:21embarrassing things for the company, this time last year they released a
0:04:21 > 0:04:24product, the sunglasses that have a camera built in so you can film
0:04:24 > 0:04:29short clips of UN to friends. They were the talk of the town when they
0:04:29 > 0:04:36first came out. They are not selling and the company has had to do a
0:04:36 > 0:04:41right down of $40 million. So there's a lot wrong there because
0:04:41 > 0:04:45snap that just isn't doing as well as people predicted at investors, as
0:04:45 > 0:04:50you are mentioning, have voted by selling their shares. 20% down.
0:04:50 > 0:04:56Not a good day for the company. Paramount pictures has ended a
0:04:56 > 0:05:01financial agreement for $1 billion with China's media company, due to
0:05:01 > 0:05:06recent changes in China's foreign investment policies. I'm joined by
0:05:06 > 0:05:11our business reporter. It doesn't help that it is today Donald Trump
0:05:11 > 0:05:18is about to visit China.The entertainment media is buoyed by the
0:05:18 > 0:05:23US. This is a big entertainment studio. Over the summer, it did
0:05:23 > 0:05:30announce it would announced -- invest $1 billion in China. That
0:05:30 > 0:05:34would go towards 25% of film making for the studio, which would last for
0:05:34 > 0:05:38about three years. Now they've agreed to call the deal off and this
0:05:38 > 0:05:41is because the Chinese are now cracking down on foreign investment.
0:05:41 > 0:05:46What Paramount has done is it has a couple of independent deals with
0:05:46 > 0:05:51other companies, but there were some rumblings over the summer that this
0:05:51 > 0:05:55wasn't going well. The head of the studio said that Huahua had not
0:05:55 > 0:05:59given payment as of June and Huahua was concerned about some of the
0:05:59 > 0:06:03earnings at the box office. They were expected to be big hits, like
0:06:03 > 0:06:08Transformers. So now it looks like Hollywood is having to pull back
0:06:08 > 0:06:12from their ambitions to invest in Hollywood.Thanks so much. We will
0:06:12 > 0:06:18be watching that story closely. We will also be watching shares of
0:06:18 > 0:06:22Toyota today, after they reported better than expected results. The
0:06:22 > 0:06:27Japanese car giant raised their profit forecast by 8.1% to $17.5
0:06:27 > 0:06:30billion, essentially due to the weakening Japanese yen. More from
0:06:30 > 0:06:35Tokyo. We are getting the latest results
0:06:35 > 0:06:41from two of Japan's car giants on Tuesday. Toyota had good news for
0:06:41 > 0:06:44investors, announcing it is buying back some of its own shares and has
0:06:44 > 0:06:47also revised its profit outlook for this year, joining Honda in doing
0:06:47 > 0:06:53so, partly thanks to the weaker yen. But if you are not an investor or
0:06:53 > 0:06:56trader your bigger concern might be about the safety of its products,
0:06:56 > 0:07:02because of the scandal surrounding the steel Co and Toyota said after
0:07:02 > 0:07:06reviewing its products it can assure consumers that its cars are safe. We
0:07:06 > 0:07:11will be hearing from Nissan on Wednesday, but the story there might
0:07:11 > 0:07:17be different because it had its own inspection scandal.
0:07:17 > 0:07:21Those shares are trading up at the moment. It was a shock announcement
0:07:21 > 0:07:25one year ago. India's government said it was withdrawing nearly 90%
0:07:25 > 0:07:28of banknotes in such elation. The surprise announcement was aimed at
0:07:28 > 0:07:33cracking down on unaccounted wealth. And encouraging Indians to go
0:07:33 > 0:07:36digital. But the move was disruptive, especially in rural
0:07:36 > 0:07:43areas. One year on, hasn't a success? We visited one village in
0:07:43 > 0:07:47India that tried to go cashless. At an event in December last year,
0:07:47 > 0:07:53the government announced that this village, about 100 kilometres from
0:07:53 > 0:07:58Mumbai, was going cashless. For the first time ever, people were shown
0:07:58 > 0:08:02how to use a card machine and dozens were distributed to traders in the
0:08:02 > 0:08:09area. One year on, cash is king again. Even though the poster
0:08:09 > 0:08:13outside this shop loudly says that digital payments are the future,
0:08:13 > 0:08:18most of his customers use cash. TRANSLATION: The main problem is
0:08:18 > 0:08:23that the network is often down. Then there are power cuts. So there are
0:08:23 > 0:08:27many times we can't use the card machine. Only about 50% of all
0:08:27 > 0:08:32transactions are conducted using it. People from this village buy goods
0:08:32 > 0:08:35from big cities like Mumbai and then sell them to smaller villages in the
0:08:35 > 0:08:41area. After the cash ban last year businesses were hit hard. They found
0:08:41 > 0:08:46making this village cashless controlled the chaos. This is the
0:08:46 > 0:08:51only bank in the area and people in this village, and 70 others, have
0:08:51 > 0:08:54their accounts on this one branch. When the government withdrew major
0:08:54 > 0:08:59currency notes last year, the queue of people waiting to withdraw money
0:08:59 > 0:09:02extended all the way down the street right to the very end. The
0:09:02 > 0:09:07government said its objective was to crack down on illegal cash. But what
0:09:07 > 0:09:11is moved it was to expose just how many people in India are cut off
0:09:11 > 0:09:19from financial networks. And things haven't changed much in small tribal
0:09:19 > 0:09:24villages like this one. Many people here are an educated, they are not
0:09:24 > 0:09:27given debit or credit card. There have been given bank accounts, at
0:09:27 > 0:09:36the branch is far away and every trip that costs money. The social
0:09:36 > 0:09:40activist who works in these areas said there is a potential solution.
0:09:40 > 0:09:43Most villages already have smart phones and the government has
0:09:43 > 0:09:52launched an easy-to-use payment at -- app.Why are we spending so much
0:09:52 > 0:09:56money on other infrastructure? They should spend more on creating
0:09:56 > 0:09:59village Wi-Fi.In a country like India where two thirds of the
0:09:59 > 0:10:03population still live in villages, progress is slow. Getting people
0:10:03 > 0:10:07into the banking system is one mighty task. Getting them to use it
0:10:07 > 0:10:11is Another altogether.
0:10:13 > 0:10:20A quick look at the markets. We are seeing them dipping. There's been a
0:10:20 > 0:10:24lot of profit-taking going on, because Asian shares have been
0:10:24 > 0:10:28rising. We saw the All Ords lurking near 10-year highs. The Nikkei as
0:10:28 > 0:10:31well has opened lower after that big high it hit