05/01/2018 Asia Business Report


05/01/2018

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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Now on BBC News, all the latest

business news live from Singapore.

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Surging new peaks. The Dow hits

25000 and other nations follow its

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lead, how long will it last?

Shakespeare wrote to be or not to be

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over 400 years ago but those words

are still good advice for today's

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corporate leaders. Hello everyone.

Good morning HR. Great to have you

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with us. -- Asia. We kick off the

programme with the markets and it is

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an other record run on Wall Street.

The Dow soaring past 25,000 for the

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first time overnight and the other

major industries also scaling new,

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with the NASDAQ and the S&P 500 at

lifetime highs. Propelled by strong

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economic reports wrote in the United

States and overseas. In Asia, we saw

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the Tokyo stocks begin trading on

Thursday with the Nikkei trading at

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a 26 year high. It is one hour into

the new trading day and it is up

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0.6%, more than 100 points. We are

at new 26 year high. Share prices in

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Hong Kong jumping for a third

straight day as well. Are we in the

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middle or the end of a bull run on?

Joshua Crabb says it depends where

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you are looking.

I think obviously

the US has a pretty fully valued

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here but we still think we are still

probably about halfway the Asia run.

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What are the risks you see going

forward for these market to pull

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back?

If we look at the Asian

market, we are sitting at about 1.7

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price to book versus our range of

1.3 over the last 20 years or so. We

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have seen a start of a turn in the

earnings cycle and that is a key

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thing to monitor. As long as

earnings come through and the

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economy can be strong, with reason

why Asian market don't continue to

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close that valuation gap with the

US. One of the other risks is if the

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US market falls it will be difficult

for Asian markets to do well but if

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you look at the backdrop we have in

the US, the market is fully valued

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and you shouldn't see a rerating

from here. Between potential for tax

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cuts, the weak dollar, that will be

a tailwind for US earnings.

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Obviously more of the earnings

coming from offshore and eight

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positive delta occurring in those

offshore markets, it should mean

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that that market stays fairly well

aired and in that environment we

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think Asian markets will continue to

do well.

Will this be the year when

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America finally gets a pay raise?

Although the economy is enjoying one

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of its longest ever periods of

growth, wages have barely gone up in

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the past decades, economists are

closely watching the jobs report

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released later today. Evidence that

at last America's recovery showing

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up in pay packets. Eight states out

of the 50 have started the year with

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a rise in minimum ways. -- and wage.

-- minimum wage. Bullish on Herbert

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has three kids, two of which will

live with her in a shelter. As a

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fast food worker in New York, she

just got a pay raise. She is

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planning to move out of the shelter

by February.

The extra money will go

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towards more rent or more food,

whatever I need to pay for my kids.

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Maybe a couple of new outfits for my

kid, it is that for them.

Americans

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have been praying and fighting for a

raised since the end of the GST. The

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Federal minimum wage hasn't gone up

since 2009, so US states are taking

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the lead. The unemployment rate is

record lows but wages are not going

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up. A conundrum even America's chief

Central banker has been struggling

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to explain.

Generally, in a strong

labour market many firms are having

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difficulty finding qualified

workers. We would expect just

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through normal demand and supply,

channels to see some upward pressure

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on wage growth over time. As the

labour market is tightened, we have

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seen some very gradual drift upward

in wage gains.

A tight labour market

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should mean that employers have to

pay more to get the best work of.

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But that has not been the case and

many economists are try to figure

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out why. Met one reason could be

that workers have less bargaining

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power, they are not as mobile, and

increased use of technology and the

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decline of labour unions. Pot for

workers who do get an increase, it

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is like changing.

It is a lot to me

because I remember when we were

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getting paid $7 50. $13 50 is a real

jump nowadays to have that type of

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money to be up there with an average

person to try and take care of your

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family and do what you need to do

for your kids.

Talks are meant to

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get off in Washington, DC between

the United and Korea to renegotiate

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the biological, bilateral free-trade

agreement. There will be discussions

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at out a trade imbalance which leans

in South Korea's favour, with more I

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enjoying with my colleague fresh

from the airport. So Sharon, it is

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also called chorus, is there a

harmony between both sides?

It is

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hardly harmonious. You would ink

most talks between the US and Korea

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would be about the north, but

believe it or not barely the first

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week of the new year is out and

these officials are getting down to

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business, talking in Washington, DC

today to renegotiate this free-trade

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agreement that was signed between

the US and South Korea and it came

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into being during the previous

Administration of President Obama.

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Resident Trump has said that he has

never been a fan, they want to

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renegotiate this and say that

essentially since this FTA came into

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effect in March 2013 the US deficit

with South Korea has doubled and in

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fact, president Trump speaking last

year in June during the US South

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Korea Summit called it a rough deal.

He said he would push for South

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Korea to open up the slack

automobile market and if we take a

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look at this graphic sequence and

crunch the numbers. From 2016 $144

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billion of goods and services were

traded between the two and the US

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deficit with South Korea stood at

about $47 billion. That is 2016,

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presumably the numbers have grown

now. All of this is crucial because

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South Korea is the sixth largest

trading partner with the US and the

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South Koreans have not been happy

about this. They have been saying

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they didn't want to renegotiate and

that potentially this could scupper

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talks about North Korea, which is

crucial about their nuclear

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missiles.

Fingers crossed that when

all this is said and done there will

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be an agreement between the two

countries. Thank you so much my

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colleague, Sharon. In other news,

China is making it easier to get

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work permits for foreign

professionals and high school

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workers in a way to bridge the

talent gap. Ten year free geysers --

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ten year free visas are being

offered to sign this, maybe a Nobel

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prize winner or two. Spouses and

minor children is the applicants

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would also gain the same Visa. They

can get confirmations of

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qualifications in five working days.

We know him by many names, William

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and to some the greatest ever

English writer. But can we add

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management guru to his title? A top

recruitment firm is using

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Shakespeare's plays to teach top

executives key leadership lessons,

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including Julius Caesar, Richard III

and Henry V. I asked what are the

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three key leadership lessons

business leaders can learn from

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Shakespeare?

To be effective culture

change people they need to be

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purposeful leaders, they have got a

purpose and know what they are

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doing. They also need to be aware of

personal change and able to adjust

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their behaviour is and change. And

you have got to get engagement, all

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of the team around you and you have

got to be inclusive and you got to

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build a team and lastly, you have

got to develop a legacy. You have

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got to be able to pass the culture

onto the next generation. There was

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another play we did, Julius Caesar.

Some other learnings, Julius Caesar

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had his conspirators and what we try

to show that as a board of directors

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if you have your own agendas than

you are going to fail. The season

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thing became a dysfunctional board

and the need for a chairman to bring

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them together.

You mentioned Julius

Caesar, Henry V, Richard III, so

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many place from William Shakespeare,

38 in total. From all of these

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plays, who was the worst leader and

the best leader?

Shakespeare never

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really made any judgements, he put

on the table all of the issues he

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wanted to say about leaders but left

the audience to make that decision.

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Some of his best those plays are

tragedies, Macbeth, King Lear and

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fellow. What can a tragedy like the

best teach us about leadership? --

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like Mac.

Lady Macbeth shows us the

power of influence, she comes from a

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sad background, lost a child and so

she is highly strung and try to do

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this.

Perhaps don't listen to your

wife then?

That is one conclusion

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but that doesn't do things wisely

either because he was in the witches

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and so I think the lessons we get

from that is yes, influence people

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but do it with a calm mind. On the

other side, you must take personal

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responsibility for your actions.

That was David Humphreys. Thank you

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so much for investing your time with

us. Sports Day is up next.

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