10/11/2017

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0:00:00 > 0:00:02She was a Brexit campaigner.

0:00:02 > 0:00:15Now on BBC News, all the latest business news live from Singapore.

0:00:15 > 0:00:21As the APEC summit in Vietnam kicks off, we find out what the

0:00:21 > 0:00:25negotiations might mean for the host country. And global retailers are

0:00:25 > 0:00:33getting ready for the biggest day in Asia for on line sales, Singles Day!

0:00:33 > 0:00:36Good morning, Asia. Hello, world. Welcome to another edition of Asia

0:00:36 > 0:00:41Business Report. I'm Rico Hizon. Thank you for joining me. It

0:00:41 > 0:00:42Business Report. I'm Rico Hizon. Thank you for joining me. It is

0:00:42 > 0:00:48another exciting Friday! We start with US President Donald Trump. He

0:00:48 > 0:00:57arrives in Vietnam very soon to attend the APEC summit. Earlier this

0:00:57 > 0:01:01year, President Trump pulled out of the Trans-Pacific Partnership

0:01:01 > 0:01:07arrangement, dealing a blow to the free-trade ambitions of APEC. China

0:01:07 > 0:01:14is trying to gain economic power in the region at the same time. We are

0:01:14 > 0:01:23joined from Vietnam. She is right outside the summit site. It looks

0:01:23 > 0:01:29like it is all about trade and business.Yes, indeed. As you can

0:01:29 > 0:01:33see, people are lining up and are getting ready to listen to many

0:01:33 > 0:01:40speeches from foreign leaders from the APEC economies, like the

0:01:40 > 0:01:44Japanese Prime Minister, the New Zealand Prime Minister, and also,

0:01:44 > 0:01:49the speech everyone is waiting for, Donald Trump's speech, when he

0:01:49 > 0:01:56presents his vision of what the US's engagement in Asia on the trade

0:01:56 > 0:02:00front and politically, frankly, will look like. There has been a lot of

0:02:00 > 0:02:05disappointment with the US pulling out of the TPP, but the other 11

0:02:05 > 0:02:09economies that decided to go ahead with the deal had said to me that if

0:02:09 > 0:02:13the US does not want to negotiate, they will continue without it.

0:02:13 > 0:02:17Listen to what the Australian Trade Minister told me about a new deal

0:02:17 > 0:02:23taking place.History has told us that countries that believe they can

0:02:23 > 0:02:30put up barriers to trade and tariffs thinking that will enrich those

0:02:30 > 0:02:34countries, they will be worse off. They will have more poor people as a

0:02:34 > 0:02:40result for adopting those policies that frankly don't make sense.That

0:02:40 > 0:02:47was the Australian Trade Minister speaking to me about the fact that

0:02:47 > 0:02:52if countries like the US decide to pull out of trade deals, well, Asia

0:02:52 > 0:02:57and other economies will go ahead without it. That is what I have been

0:02:57 > 0:03:01getting from many people I have been speaking to add the summit. It is

0:03:01 > 0:03:08about the fact the US's influence in the region is waning at a time China

0:03:08 > 0:03:12is getting more powerful and influential. I can point to the fact

0:03:12 > 0:03:17President Xi Jinping will be speaking after Donald Trump. And

0:03:17 > 0:03:21there's rivalry between the US and China in the region is what many

0:03:21 > 0:03:26garment exporters and businesses in Vietnam have been telling me in the

0:03:26 > 0:03:32past few days.Made in Vietnam but sold in New York. Vietnam is one of

0:03:32 > 0:03:36the world's biggest garment exporters. And you can see why at

0:03:36 > 0:03:42this factory in Ho Chi Minh City which produces everything from suits

0:03:42 > 0:03:49to Coates every single day. -- coats. Some of the best-known brands

0:03:49 > 0:03:53in America are made here under the watchful eye of Michael. The US is

0:03:53 > 0:03:59still his biggest customer discipling out of the TPP, but that

0:03:59 > 0:04:03could change the pillar in the last two months we have seen sales

0:04:03 > 0:04:13increase with China. That is a probable business, a positive force,

0:04:13 > 0:04:19in the near future. China is already a major customer for Vietnam's

0:04:19 > 0:04:27biggest coffee exporter and grains provider. It sells rice to China but

0:04:27 > 0:04:32also exports to the US. The German says Vietnam needs to balance these

0:04:32 > 0:04:37interests. TRANSLATION:The US and China are both powerful countries,

0:04:37 > 0:04:43but they also are locked in conflict. They want to drag Vietnam

0:04:43 > 0:04:48to side, and we should take advantage.Remember, the economy of

0:04:48 > 0:04:53Vietnam is still pretty basic, about supplying raw materials and produce

0:04:53 > 0:04:56to other markets and labour intensive manufacturing. That is why

0:04:56 > 0:05:03trade is so important. If the original U.S.-led TPP deal had gone

0:05:03 > 0:05:07through it could have boosted the economy of Vietnam by 10% over the

0:05:07 > 0:05:10next few decades, which would have lifted the income of people out

0:05:10 > 0:05:16here. That is why free-trade is on the agenda at APEC which is on the

0:05:16 > 0:05:20edge of the South China Sea. Both Vietnam and China have clashed over

0:05:20 > 0:05:24the waters, but the lack of engagement from the US means they

0:05:24 > 0:05:28have to go closer to Beijing. TRANSLATION:The US is one of the

0:05:28 > 0:05:32most important markets for Vietnam. We were disappointed when they

0:05:32 > 0:05:37pulled out of the TPP. We hope they will join it again, but we are also

0:05:37 > 0:05:41developing links with other partners, including China.Back at

0:05:41 > 0:05:44the garment factory, another shipment heads to American stores.

0:05:44 > 0:05:49Trade has always trumped politics in Asia. Be more business you do here,

0:05:49 > 0:05:55the more influence you have. By Vietnam is now stuck in between the

0:05:55 > 0:06:06two civil -- superpowers of the world. Chinese and US officials say

0:06:06 > 0:06:11they rounded up more than $250 billion in deals on Donald Trump's

0:06:11 > 0:06:17maiden trip to Beijing to be they covered imports and exports. Some

0:06:17 > 0:06:21analysts are questioning how likely it is these agreements will

0:06:21 > 0:06:26materialise. We are joined by my colleague for more. This sounds

0:06:26 > 0:06:31promising, $250 billion.It does so be it covers goods from aeroplane

0:06:31 > 0:06:39Stute US beef. President Trump has been critical chastising the Chinese

0:06:39 > 0:06:45as having an unfair advantage in terms of trade. In 2016 alone, the

0:06:45 > 0:06:50US had a $247 billion trade deficit in goods with China. This is showing

0:06:50 > 0:06:56back at home that he may be bringing in more jobs and revenue.Of course,

0:06:56 > 0:07:01everything will have to wait to see how it all plays out. One more

0:07:01 > 0:07:06question before we let you go. It seems he is turning the tables here,

0:07:06 > 0:07:11not blaming China, but saying the previous US president is to blame

0:07:11 > 0:07:16for the deficit.He took a step back and changed his tune. There was

0:07:16 > 0:07:20laughter when he said I am not actually blaming the Chinese. This

0:07:20 > 0:07:25is his way of reaching some common ground. They have many issues

0:07:25 > 0:07:30politically and economically to get rid of.Thank you for the update and

0:07:30 > 0:07:35have a great weekend. Tomorrow is the 11th of November, also known as

0:07:35 > 0:07:41Singles Day if you are a big on line shopper. Alibaba created the event

0:07:41 > 0:07:46as a marketing gimmick but it is now the world's biggest on line shopping

0:07:46 > 0:07:52day. Last year, Chinese shoppers spent a record $18 billion on

0:07:52 > 0:07:59Alibaba's platforms in just 24 hours. In Southeast Asia, some are

0:07:59 > 0:08:04browsing and buying on line up to four days earlier. They see a 254%

0:08:04 > 0:08:16increase in sales on Singles Day. There have been increases recently

0:08:16 > 0:08:21as well. What can we expect this year? I spoke to someone earlier,

0:08:21 > 0:08:26the general manager for the advertising firm, Video Southeast

0:08:26 > 0:08:31Asia.It is the biggest shopping day by far in this region. When I say

0:08:31 > 0:08:37this region, I'm in Southeast Asia. We are seeing an increase in sales

0:08:37 > 0:08:43of 254% compared to the previous month.There is a spillover from the

0:08:43 > 0:08:47greater China market to Southeast Asia?That is right. There is an

0:08:47 > 0:08:55evolution of the ecosystem here. The more we are seeing this, the more we

0:08:55 > 0:09:00are seeing it on line as well.This will be much bigger than the

0:09:00 > 0:09:06Thanksgiving day sales in the US.It is getting bigger. Look at China.

0:09:06 > 0:09:11This is by far bigger. Southeast Asia, I want to mention, is, as a

0:09:11 > 0:09:18whole, is a market that is developing so fast we are calling it

0:09:18 > 0:09:23the next China when it comes to on line retail.Singles Day is focused

0:09:23 > 0:09:30on Alibaba and JB.com. They are the largest e-commerce sites in China.

0:09:30 > 0:09:36What about in Southeast Asia? Amazon, the likes of art, can they

0:09:36 > 0:09:50compete?-- that. They have a strong presence in the country. We are

0:09:50 > 0:09:55seeing they are extremely aggressive and present everywhere during these

0:09:55 > 0:10:01promotional days. They are one of the biggest at this point in time in

0:10:01 > 0:10:04Southeast Asia, but you have newcomers as well and all the giants

0:10:04 > 0:10:13appearing in the region. -- older giants. A quick look at the markets.

0:10:13 > 0:10:17As you can see, they are down across the board because Wall Street's

0:10:17 > 0:10:22stocks extended losses last night when Republican politicians said

0:10:22 > 0:10:28they could be a one-year delay in the tax cut until 2019. The Nikkei

0:10:28 > 0:10:33is down as well.