12/01/2018 Asia Business Report


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12/01/2018

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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of staff.

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Now on BBC News all the latest

business news live from Singapore.

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The world's biggest retailer Walmart

offers a pay hike just before laying

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off hundreds of workers.

Is the bubble bursting? Bitcoin

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falls as South Korea plans are

trading ban. Good morning, Asia,

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hello, world. Glad you could join us

for Asia Business Report. Starting

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with Walmart and mixed messages from

the world's biggest retailer. It was

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initially good news for President

Trump when he said he would give

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more than 1 million staff a pay rise

thanks to his tax reform Bill. Wages

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would be increased from $10 an hour

to $11 and there would also be a

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1-off bonus of $1000 for staff who

have been at the company for more

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than 20 years. But shortly after the

announcement it was revealed that

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the firm is shutting down dozens of

its wholesale shops and laying off

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hundreds of workers. Puppies as

reporter in New York said other

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companies have offered similar

things.

We've heard it from

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airlines, and other companies. This

is a permanent sort of reduction in

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corporate tax that has been brought

on by the new bill. It will mean

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billions of dollars and in some

cases it could be tens of billions

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of dollars over the course of the

future. The amount they are paying

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their employees today amounts to

about $400 million and the

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Republican pitch was that this money

would come back into the economy in

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the way that it expands the economy

here. So it will create jobs and

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people's wages would go up in a

significant way. If that happens

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then you could sort of see the

government then earning more by way

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of tax. But there are no

indications, apart from this

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particular bonus that is being

given, and the only wage increase in

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the US where that's the amount it

increases by is actually the minimum

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wage and there are competitors in

the market who are already paying

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more than that amount. So we could

just be competition that has forced

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them to increase these wages.

Our

reporter in New York. If you are

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regretting not buying Bitcoin when

it was cheaper, think again. It has

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fallen by as much as 14% after South

Korea said it was planning to ban

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the currency and other crypto

currency. I asked if the hype was

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over.

I think the bar has already --

always been set higher, and even

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more so given this regulatory

oversight, especially with this

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latest announcement by Korea. It

could spread to other local markets

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and the fear is that if there is

further you regular tree oversight

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this could really dampen investor

sentiment towards coins in general.

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There is already this growing trend

amongst Asian governments to tighten

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controls on not only Bitcoin but

other Bitcoin currencies, so the

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likes of China and Vietnam?

I think

that all oil down to the

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unsophisticated traders. They feel

they have to put some defensive

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mechanism in the markets to control

this volatility because a lot of

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people stand to lose a lot of money

if the boy naturally does crash.

And

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on the flipside there are more

companies now getting into the

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technology that underpins crypto

currencies and the Bitcoin, like

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Kodak.

The thing they will succeed?

I think there's a practical use for

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blockchain technology as the go

through the next decade and I think

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consumers are actually seeing value

in this. If we look at how

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technology launched itself over the

last two decades, this does bode

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well and we could see Bitcoin

technology advance.

Over the oil and

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the price of crude oil as -- has hit

$70 a barrel for the first time in

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over three years. You can see this

chart shows it moving north,

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gradually climbing over the past

year. At today's followed the

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announcement of the oil producing

giant OPEC, that he would continue

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to limit supplies. This news just

in. Intel has asked some of its

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customers to hold off installing

patches that would address security

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flaws, according to the Wall Street

Journal. The company confirmed last

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week that the chip used in our

computers could allow hackers to

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steal sensitive information. In

social media Facebook says it will

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change the newsfeed ranking over the

next few months. Chief executive

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Mark Zuckerberg said it would

emphasise meaningful social

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interactions within UN gill friends,

rather than the type of newsfeed

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that critics say is addictive. China

is waking up just now and let's

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check in with the team in India

about the latest business story. The

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security regulator has banned a

global accounting firm from auditing

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listed companies in the country for

two years, and to tell us more about

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this latest development I'm joined

by my colleague in Delhi. Please

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explain to us what happened. Why

have they been suspended?

Let's

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rewind the clock to 2009. It was in

January when the founder of the then

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leading company had in a letter

confessed to fobbing the accounts of

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the firm. It came to about $2

billion fraud and that's when the

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market regulator in India was

entrusted with the responsibility to

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probe the matter and whether the

auditing firm was complicit in this

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as well. Price water Cooper was at

that time the accounting firm from

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2000 until 2008. --

PricewaterhouseCoopers. The market

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regulator said

PricewaterhouseCoopers was complicit

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in the fraud. They were able to

establish that. Also the statement

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from Pricewaterhouse is denying any

wrongdoing and they are looking at

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this stage from Indian quote on the

sword.

Thank you for updating us.

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For centuries the world's wealthy

have tried to help tackle the

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problems of poverty and income

inequality, but to some experts the

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traditional philanthropy model is no

longer suited to 21st-century

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realities. I spoke to someone from

the Rockefeller foundation which

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disperses millions of dollars year

and he told me what the foundation

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looks for when it comes to helping

those in need.

What I care a lot

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about is what it costs to move a

family out of poverty, what it costs

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to save a child's life under the age

of five who might die of diarrhoea.

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We know we can do that for 10- $15.

For a few hundred dollars we can

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move the family out of poverty. Give

them a job that allows them to use

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their own ingenuity to build a

brighter future. That's the ratio of

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the return on investment that I care

about.

What is the current state of

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philanthropy in Asia, regarding the

West?

There are more than 100,000

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foundations in the US. The

Rockefeller foundation has been

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around for 104 years. In Asia there

are 10,000 foundations. Part of the

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purpose of expanding our

philanthropic projects, we are

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measuring and knowing the impact,

ensuring money is free of

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corruption, for those types of

families we think there is a

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tremendous potential as wealth and

dynamism in Asia continues to

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explode. We want to work with the

next generation of Asian

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philanthropists to change the world.

Did you know that is, look at that

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happy face, the first nonstick

frying pan was called the happy pan?

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It made washing up so easy and

Teflon was the miracle chemical

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behind it. It made billions of

dollars over five decades. There is

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another side to its history.

It is Teflon! The stuff that makes

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your frying pans nonstick. So, how

was it discovered? It was discovered

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by accident in 1938 in the labs. An

engineer was looking at TFE, the

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stuff that kept our refrigerators

cool. He installed it in canisters.

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One day he went to get some and

found the gas had turned into some

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strange dry flakes. He found the

mystery stuff incredibly slippery,

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so he worked on it and came up with

a chemical called Teflon. In 1961

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the first Teflon frying pan was sold

in America and it was called the

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Happy Pan because it made washing up

so easy. Now it makes $1 billion

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seafront Teflon and spin-offs. But

Teflon used to contain a chemical

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called PFOA, which is linked to

cancer and other diseases. Last year

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Teflon had to pay hundreds of

millions of dollars to thousands of

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people after that chemical leaked

from this American factory and

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that's a sad legacy for the

so-called happy pan.

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Thank you so much for investing your

time with us.

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I'm Rico Hizon.

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Sport Today is up next.

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