0:00:00 > 0:00:01payment ahead of a vital EU summit next month.
0:00:01 > 0:00:10Now on BBC News all the latest business news live from Singapore.
0:00:19 > 0:00:23what does it take to keep their competitive airline up and running?
0:00:23 > 0:00:26We will find out from the man who was credited with turning Qantas
0:00:26 > 0:00:34around. And the new chief of Ericsson has his sights set on Asia
0:00:34 > 0:00:42as the tech and telecommunications industry changes with the times.
0:00:42 > 0:00:47Good morning Asia, hello world. It is a Wednesday. Thank you for
0:00:47 > 0:00:52joining us for another exciting edition of Asia Business Report. We
0:00:52 > 0:00:56start off with Australia's flagship carrier Qantas and the CEO Alan
0:00:56 > 0:01:00Joyce. Here's the highest paid airline chiefs in the airline --
0:01:00 > 0:01:07Asia-Pacific region June. He has turned around the fall tunes of the
0:01:07 > 0:01:10airline through painful cost-cutting and restructure. They are now
0:01:10 > 0:01:15investing in new routes, especially in Asia. We spoke to Mr Joyce in
0:01:15 > 0:01:20London about Qantas's ambitions in China and its eye watering $19
0:01:20 > 0:01:26billion pay packet last year.The shareholders who own the company are
0:01:26 > 0:01:32the ones who decide my pay. And in every report we have had go to the
0:01:32 > 0:01:36AGM we have had 98, 90 9% including this year, the port for that. The
0:01:36 > 0:01:43reason why I get paid that amount is because of the appreciation of the
0:01:43 > 0:01:46Qantas share price, with the shares were issued three years ago there
0:01:46 > 0:01:49were $3 and now they are worth nearly $6. The shareholders have
0:01:49 > 0:01:54seen the company go from $2000000000-$10000000000. $8 billion
0:01:54 > 0:01:59of value has been created and we have returned an additional $2
0:01:59 > 0:02:04billion to the shareholders. It is their money. They approve what I get
0:02:04 > 0:02:08paid and they are happy because I am completely in line with their
0:02:08 > 0:02:11success.Despite the London to Perth route, you keep your hub in
0:02:11 > 0:02:16Singapore. Is that because you see China as an opportunity or is the
0:02:16 > 0:02:20expansion of the air market in China, is that a threat?We are very
0:02:20 > 0:02:25excited about the growth not only in China but in all of the Asia region.
0:02:25 > 0:02:29Let me take the Chinese example, we get 1.2 million visitors to
0:02:29 > 0:02:36Australia from China. Out of 120 million worldwide, 1%. We know that
0:02:36 > 0:02:40Australia is appearing as the number one destination of choice. Some
0:02:40 > 0:02:47statistics have the Chinese visitors growing by, in the next 20 years,
0:02:47 > 0:02:51800 million worldwide. If we keep the 1% that is 8 million visitors,
0:02:51 > 0:02:56more than every other nation put together, coming to Australia. They
0:02:56 > 0:02:59typically take two or three domestic trips. Even if we don't get them
0:02:59 > 0:03:03internationally, we are likely to get them, given our huge domestic
0:03:03 > 0:03:07operation, that is a huge boon of two risen coming to Australia.So
0:03:07 > 0:03:13where is your work, Alliance in China?Is that a big push? Yes it
0:03:13 > 0:03:16is. We have two strong partnerships with China Eastern and China
0:03:16 > 0:03:25Southern. And ten years ago we had one third of our capacity to Europe,
0:03:25 > 0:03:30one third to Asia and one third to the Americas. Today it is a% to
0:03:30 > 0:03:36Europe, 52% to Asia, that is how much we have rebalanced and pivoted
0:03:36 > 0:03:41on the rest to the Americas. We are focused on Asia. It is grown so much
0:03:41 > 0:03:46forest in the last decade and in the next decade it will help grow any
0:03:46 > 0:03:48other international market that we have.
0:03:48 > 0:03:54Despite his pay packet it seems that investors think he is worth it. In
0:03:54 > 0:03:57other business news, making headlines, Apple says it is working
0:03:57 > 0:04:02to fix a serious bug within its operating system. The floor with an
0:04:02 > 0:04:09Hi Ciera makes it possible to gain entry to the machine without a
0:04:09 > 0:04:15password, putting the personal information of users at risk. It
0:04:15 > 0:04:19requires physical access to the system but it could happen remotely
0:04:19 > 0:04:21if the user enables Remote Desktop. Growth should
0:04:22 > 0:04:30accelerate next year according to the OECD. The forecast shows the
0:04:30 > 0:04:33upturn becoming increasingly synchronised across countries. The
0:04:33 > 0:04:40world economy is growing at its fastest rate since 2010. However,
0:04:40 > 0:04:44economists warned that conditions were a sustainable expansion are not
0:04:44 > 0:04:47yet in place. In the shadow of the latest missile launch by North
0:04:47 > 0:04:51Korea, China has decided to loosen its ban on allowing two groups
0:04:51 > 0:04:56arrange trips to South Korea. Authorities in Beijing had
0:04:56 > 0:05:01prohibited such trouble earlier this year as tensions over the
0:05:01 > 0:05:04installation of military hardware world to the surface. I'm joined now
0:05:04 > 0:05:08by my colleague and business reporter Matthew Morrison. Why is
0:05:08 > 0:05:14China making this decision now?The timing of this is interesting, but
0:05:14 > 0:05:19not too surprising. By that I mean our industry sources started talking
0:05:19 > 0:05:23about this hours before the latest missile was launched but it is not
0:05:23 > 0:05:29surprising because of late October both China and North Korea had
0:05:29 > 0:05:35signalled a warning of Thais. They had been put -- deadlocked
0:05:35 > 0:05:45previously. -- China and South Korea had signalled a warming of Thais. At
0:05:45 > 0:05:51stake, millions and millions of Chinese tourists. Last year alone 8
0:05:51 > 0:05:55million, making up around half of all tourist arrivals to South Korea.
0:05:55 > 0:06:01That makes it the second most popular destination after Thailand
0:06:01 > 0:06:05and ahead of Japan, interestingly. This amounts to a lot of lost
0:06:05 > 0:06:09revenue, about $6.5 billion worth because the number of tourist to the
0:06:09 > 0:06:13first nine months has been cut in half and it is not just tourism, it
0:06:13 > 0:06:19is cars, cosmetics, conglomerates such as Hyundai. And supermarket
0:06:19 > 0:06:33chains, for example. Lotte had to shut a lot of supermarkets.
0:06:33 > 0:06:41Businesses have been affected across the ball but I am sure the Chinese
0:06:41 > 0:06:45wanted a dose of kapok?It is popular in China but the tours has
0:06:45 > 0:06:49been cancelled and music videos have not been streamed and that includes
0:06:49 > 0:06:53South Korean drama and film as well. So those kapok stars are now going
0:06:53 > 0:06:59to America. Seven acts performed in the US. In May this year, double
0:06:59 > 0:07:07that. 14 kapok act in America. If you can't go to China, go to the US.
0:07:07 > 0:07:15And they do need each other. Moving on now to technology and patterns.
0:07:15 > 0:07:22The EU looks take -- set to change rules on how patents are paid for.
0:07:22 > 0:07:29On one side you have patents users like apple and Volkswagen in favour
0:07:29 > 0:07:35of paying that make is that these. On the other hand, patterned owners
0:07:35 > 0:07:38like Ericsson prefer to charge royalties based on how much value
0:07:38 > 0:07:42their technology adds to a product. The new rules would tip the scales
0:07:42 > 0:07:46in favour of patterned owners and this comes at a time when chips are
0:07:46 > 0:07:53used more and more in interconnected devices. Here are some background
0:07:53 > 0:07:58about Ericsson. They were founded in 1876. Back in 2000 it was a big
0:07:58 > 0:08:02layer in mobile phones and the share price hit an all-time high of $81 a
0:08:02 > 0:08:10share. Now it is around $6.5. Earlier I spoke with a global chief
0:08:10 > 0:08:14executive of Ericsson and asked about the possible rule change in
0:08:14 > 0:08:19the EU.It is a speculation so far. Speculation in the media, to be
0:08:19 > 0:08:25honest. How that will look at in our response and in view of that will
0:08:25 > 0:08:30depend on details. . What I think is important to remember is that this
0:08:30 > 0:08:32is part of the overall standardisation of technology and
0:08:32 > 0:08:38networks. I think that has served consumers quite well because now we
0:08:38 > 0:08:45have a global standard, a consumer can use the same phone wherever the
0:08:45 > 0:08:49consumer travels but it also gives a global scale for the devices. I
0:08:49 > 0:08:52think the current regime has worked quite well.But technology companies
0:08:52 > 0:08:59such as Google in Silicon Valley say that they want these and this is the
0:08:59 > 0:09:05fairest side of the model.What do you say to them? We need to take a
0:09:05 > 0:09:14step back again. In standardisation it depends on contributors of
0:09:14 > 0:09:16technologists and you contribute technology into a standard and then
0:09:16 > 0:09:19it is also reasonable that the contributors get paid so that
0:09:19 > 0:09:24technology. So there are two sides to this argument. Without the
0:09:24 > 0:09:28contributions into the standard, there would not be a standard. So if
0:09:28 > 0:09:33people do not get paid for what they contribute, they will not contribute
0:09:33 > 0:09:36in the future. Therefore we would not have a global standard.You are
0:09:36 > 0:09:42here in Asia, how big competition is China with its massive technology
0:09:42 > 0:09:47and telecommunications industry? China is a big market for us and a
0:09:47 > 0:09:52big markets and whole industry. About 60% of the world market for
0:09:52 > 0:09:57radio is in China. So we have to remember it is a massive market. Of
0:09:57 > 0:10:03course, we have Chinese competitors. They are formidable. We need to work
0:10:03 > 0:10:09hard to beat them every day but we do that with every competitor. We
0:10:09 > 0:10:20work hard, we innovate, we invest in technology to be on the forefront.
0:10:20 > 0:10:24Lets leave you with the virtual currency Bitcoin and it has soared
0:10:24 > 0:10:30to an all-time high, above $10,000 on some smaller exchanges and this
0:10:30 > 0:10:31is an all-time high for