0:00:00 > 0:00:02A Downing Street source has insisted that Britain will leave the customs
0:00:02 > 0:00:05union after Brexit, the system which means countries in the EU
0:00:05 > 0:00:13impose the same import taxes on goods coming into the bloc.
0:00:13 > 0:00:20Donald Trump's nominee takes over at the US Federal reserve. Will
0:00:20 > 0:00:24monetary policy had in a new direction under his leadership? And
0:00:24 > 0:00:30to boldly go where no mayor has gone before: In Indonesian city official
0:00:30 > 0:00:41looks to Star Trek to lead his city into the future. Good morning Asia,
0:00:41 > 0:00:46hello world. It is a Monday. Glad you could join us for another
0:00:46 > 0:00:50exciting addition of Asia Business Report. I am Rico Hizon. We start
0:00:50 > 0:00:54off with the US central bank, and Jerome Powell, you see on your
0:00:54 > 0:00:59screens, is said to be sworn in as the new chair of the Federal
0:00:59 > 0:01:03reserve, replacing Janet Yellen. By nominating him, Donald Trump River
0:01:03 > 0:01:11Wey from tradition, as most US presidents have chosen to appoint
0:01:11 > 0:01:18the same chair in their first year of power. The BBC has more from New
0:01:18 > 0:01:25York. Donald Trump's pick for the job, Jerome Powell, is the new chair
0:01:25 > 0:01:29of the US Federal reserve. But why is is such an important job, and why
0:01:29 > 0:01:34should it matter to you and I? Welcome at the Federal reserve makes
0:01:34 > 0:01:37decisions that into a great scholar Keystone employment and inflation in
0:01:37 > 0:01:44check, and can step in and protect the economy, like it did to the
0:01:44 > 0:01:48global financial crisis. But what Jerome Powell does can have far
0:01:48 > 0:01:51reaching effects the old American shores.We are raising interest
0:01:51 > 0:01:56rates now because the economy is strong. If we wait too long, the
0:01:56 > 0:02:00economy could overheat, would have to raise rates. The best way to
0:02:00 > 0:02:03sustained recovery, I believe, is to head on this path of gradual rate
0:02:03 > 0:02:08increases.Raising rates here are the US could mean that investors
0:02:08 > 0:02:12could prefer to put their money here, taking it away from other
0:02:12 > 0:02:16parts of the world. America is considered a safer investment
0:02:16 > 0:02:22destination than, say, an emerging economy. After the 2008 global
0:02:22 > 0:02:25financial crisis, which generated cows hereon on Wall Street, the
0:02:25 > 0:02:28Federal reserve introduced strict rules for banks to ensure the safety
0:02:28 > 0:02:35of the market. There has been talk of Easington that regulation, now.
0:02:35 > 0:02:40And some people working here, in Manhattan's general district, would
0:02:40 > 0:02:44be keen to hear what Jerome Powell has to say about it.It is not
0:02:44 > 0:02:49helpful for banks to waste money, to spend more than a reasonably need to
0:02:49 > 0:02:54spend, to achieve these results and objectives. Those costs will fall on
0:02:54 > 0:02:58customers.On most fronts, he is on the same track as Janet Yellen. She
0:02:58 > 0:03:02lives with the economy in pretty good shape. It is growing steadily
0:03:02 > 0:03:06and employment and consumer confidence in the best they have
0:03:06 > 0:03:11been in about 17 years.What we expect from drawn powers more of the
0:03:11 > 0:03:15same. The markets are expecting a minimum of two rate hikes this year.
0:03:15 > 0:03:20I think we might even see three, because we are starting to see an
0:03:20 > 0:03:24acceleration in employment and wage growth, which are starting to pick
0:03:24 > 0:03:28up. Inflation will eventually pick up. So I do think that you will see
0:03:28 > 0:03:32three.But Jerome Powell how to navigate through uncertainties
0:03:32 > 0:03:36caused by the tax bill, and America's latest train
0:03:36 > 0:03:40announcements, to ensure that the index stays in the green, and people
0:03:40 > 0:03:48here remain happy. You get an lie, BBC News, New York. -- Yogita
0:03:48 > 0:03:58Limaye. I am joined by my colleague Monica Miller.This is not looking
0:03:58 > 0:04:03good. Investors are rattled in this part of the world. As you can see
0:04:03 > 0:04:07here, Australia's major index is down 1.4% already this morning. The
0:04:07 > 0:04:16Nikkei is down 2.2%. Dow futures are down more than 200 points to. All
0:04:16 > 0:04:22this kind of comedy snaps are a reaction to Friday, when the two
0:04:22 > 0:04:28major index in the US is that there Winnie Street. This came out because
0:04:28 > 0:04:34of data about wages in the US, which is at a record high. -- winning
0:04:34 > 0:04:42streak. These are the highest levels in a long time, and the concern is
0:04:42 > 0:04:46whether or not the US will have to increase three times, not just for,
0:04:46 > 0:04:53as they had promised, so at this point, one analyst says it could be
0:04:53 > 0:04:57part three US correction, and there may be more time for the indexes to
0:04:57 > 0:05:02drop. And that probably most equity markets will be impacted by this.
0:05:02 > 0:05:07And with the Dow futures lower by 200 points, it is a bad sign when
0:05:07 > 0:05:11Wall Street reopens for a later today. Monica Miller, thank you for
0:05:11 > 0:05:17that update on the Asian markets. Cars will also be in focus this
0:05:17 > 0:05:20week. We will be getting a snapshot of how wealthy sector is faring when
0:05:20 > 0:05:25the major Japanese carmakers unveiled a corporate earnings.
0:05:25 > 0:05:32Today, Mitsubishi reports, after sales last year. Next it is Toyota,
0:05:32 > 0:05:37which has seen an increase in demand for pickup trucks. On Thursday, it
0:05:37 > 0:05:42is Ms Ardern, we said that its sales in the US were up 10% in January. --
0:05:42 > 0:05:49Nissan. I asked how Japan's carmakers will fare this season.As
0:05:49 > 0:05:54we head into the order season this year, we will be looking at how the
0:05:54 > 0:05:59automakers will be contending with the slowdown in there to biggest
0:05:59 > 0:06:05markets. The US market and the Chinese market. Those are the big
0:06:05 > 0:06:09anchors and driving forces for the Japanese. But this year, the US
0:06:09 > 0:06:15market is expected to decline, and the Chinese market is set to slow
0:06:15 > 0:06:22dramatically.What about cost pressures on brawl materials, and
0:06:22 > 0:06:25skyrocketing research and development investments? Will there
0:06:25 > 0:06:30also impact the bottom lines of Japanese automakers?Yes. That is
0:06:30 > 0:06:34another issue coming into play. They will be pitched at both ends. Costs
0:06:34 > 0:06:39are rising in some ways for the material. And at the same time, they
0:06:39 > 0:06:43need to spend more for investment in these new technologies that are
0:06:43 > 0:06:47becoming the forefront of the industry. We are talking about time
0:06:47 > 0:06:50as driving, rectification, connectivity of the cars. That is
0:06:50 > 0:06:54all demanding huge investments from these companies, and it is all
0:06:54 > 0:07:03coming at a time when sales are beginning to slow.And that was Hans
0:07:03 > 0:07:06Grimel joining us on the Japanese carmakers that will be reporting
0:07:06 > 0:07:11their earnings this week. Moving now to Indonesia, and the Mayor of
0:07:11 > 0:07:17Bandung is driving a vision for his city. His goal of turning it into a
0:07:17 > 0:07:22technology capital has led to heavy investments in technology and credit
0:07:22 > 0:07:27indices. Some projects include building a Star Trek inspired
0:07:27 > 0:07:35command centre, and free public Wi-Fi across the city. -- technology
0:07:35 > 0:07:38and creative industries. We said a cross bonded to go see how this
0:07:38 > 0:07:50could become one of Asia's Silicon Valleys.
0:07:57 > 0:08:04Architect and Mayor of Bandung was inspired by Star Trek when he
0:08:04 > 0:08:10designed this command centre, with the idea of using technology to
0:08:10 > 0:08:19better serve the people of Bandung. We use technology to make everything
0:08:19 > 0:08:23better, and suddenly, everything is in place. I am very happy. This is
0:08:23 > 0:08:39my legacy. -- architect and Mayor of Bandung, Ridwan Kamil. The recipe of
0:08:39 > 0:08:44Silicon Valley is it you need to have the university is close to many
0:08:44 > 0:08:52areas. People forget that without the size and the education system
0:08:52 > 0:09:03and university, you do not get that of energy. -- universities close.
0:09:16 > 0:09:24So these are some of your stickers? Yes.
0:09:31 > 0:09:35I don't think we are ready to become the next Silicon Valley, because
0:09:35 > 0:09:39there are still a lot of businesses that still prefer to do everything
0:09:39 > 0:09:46in the old ways. They will not really open to new services.
0:10:07 > 0:10:15And that is Bandung, Indonesia, and its goal to become one of Asia's
0:10:15 > 0:10:20Silicon Valleys. That is it from Asia Business Report. Thank you for
0:10:20 > 0:10:26investing your time with us. Please follow us on Twitter. Sport Today is
0:10:26 > 0:10:27up