05/02/2018 Asia Business Report

A Downing Street source has insisted

that Britain will leave the customs

union after Brexit, the system

which means countries in the EU

impose the same import taxes

on goods coming into the bloc.

Donald Trump's nominee takes over at

the US Federal reserve. Will

monetary policy had in a new

direction under his leadership? And

to boldly go where no mayor has gone

before: In Indonesian city official

looks to Star Trek to lead his city

into the future. Good morning Asia,

hello world. It is a Monday. Glad

you could join us for another

exciting addition of Asia Business

Report. I am Rico Hizon. We start

off with the US central bank, and

Jerome Powell, you see on your

screens, is said to be sworn in as

the new chair of the Federal

reserve, replacing Janet Yellen. By

nominating him, Donald Trump River

Wey from tradition, as most US

presidents have chosen to appoint

the same chair in their first year

of power. The BBC has more from New

York. Donald Trump's pick for the

job, Jerome Powell, is the new chair

of the US Federal reserve. But why

is is such an important job, and why

should it matter to you and I?

Welcome at the Federal reserve makes

decisions that into a great scholar

Keystone employment and inflation in

check, and can step in and protect

the economy, like it did to the

global financial crisis. But what

Jerome Powell does can have far

reaching effects the old American

shores.

We are raising interest

rates now because the economy is

strong. If we wait too long, the

economy could overheat, would have

to raise rates. The best way to

sustained recovery, I believe, is to

head on this path of gradual rate

increases.

Raising rates here are

the US could mean that investors

could prefer to put their money

here, taking it away from other

parts of the world. America is

considered a safer investment

destination than, say, an emerging

economy. After the 2008 global

financial crisis, which generated

cows hereon on Wall Street, the

Federal reserve introduced strict

rules for banks to ensure the safety

of the market. There has been talk

of Easington that regulation, now.

And some people working here, in

Manhattan's general district, would

be keen to hear what Jerome Powell

has to say about it.

It is not

helpful for banks to waste money, to

spend more than a reasonably need to

spend, to achieve these results and

objectives. Those costs will fall on

customers.

On most fronts, he is on

the same track as Janet Yellen. She

lives with the economy in pretty

good shape. It is growing steadily

and employment and consumer

confidence in the best they have

been in about 17 years.

What we

expect from drawn powers more of the

same. The markets are expecting a

minimum of two rate hikes this year.

I think we might even see three,

because we are starting to see an

acceleration in employment and wage

growth, which are starting to pick

up. Inflation will eventually pick

up. So I do think that you will see

three.

But Jerome Powell how to

navigate through uncertainties

caused by the tax bill, and

America's latest train

announcements, to ensure that the

index stays in the green, and people

here remain happy. You get an lie,

BBC News, New York. -- Yogita

Limaye. I am joined by my colleague

Monica Miller.

This is not looking

good. Investors are rattled in this

part of the world. As you can see

here, Australia's major index is

down 1.4% already this morning. The

Nikkei is down 2.2%. Dow futures are

down more than 200 points to. All

this kind of comedy snaps are a

reaction to Friday, when the two

major index in the US is that there

Winnie Street. This came out because

of data about wages in the US, which

is at a record high. -- winning

streak. These are the highest levels

in a long time, and the concern is

whether or not the US will have to

increase three times, not just for,

as they had promised, so at this

point, one analyst says it could be

part three US correction, and there

may be more time for the indexes to

drop. And that probably most equity

markets will be impacted by this.

And with the Dow futures lower by

200 points, it is a bad sign when

Wall Street reopens for a later

today. Monica Miller, thank you for

that update on the Asian markets.

Cars will also be in focus this

week. We will be getting a snapshot

of how wealthy sector is faring when

the major Japanese carmakers

unveiled a corporate earnings.

Today, Mitsubishi reports, after

sales last year. Next it is Toyota,

which has seen an increase in demand

for pickup trucks. On Thursday, it

is Ms Ardern, we said that its sales

in the US were up 10% in January. --

Nissan. I asked how Japan's

carmakers will fare this season.

As

we head into the order season this

year, we will be looking at how the

automakers will be contending with

the slowdown in there to biggest

markets. The US market and the

Chinese market. Those are the big

anchors and driving forces for the

Japanese. But this year, the US

market is expected to decline, and

the Chinese market is set to slow

dramatically.

What about cost

pressures on brawl materials, and

skyrocketing research and

development investments? Will there

also impact the bottom lines of

Japanese automakers?

Yes. That is

another issue coming into play. They

will be pitched at both ends. Costs

are rising in some ways for the

material. And at the same time, they

need to spend more for investment in

these new technologies that are

becoming the forefront of the

industry. We are talking about time

as driving, rectification,

connectivity of the cars. That is

all demanding huge investments from

these companies, and it is all

coming at a time when sales are

beginning to slow.

And that was Hans

Grimel joining us on the Japanese

carmakers that will be reporting

their earnings this week. Moving now

to Indonesia, and the Mayor of

Bandung is driving a vision for his

city. His goal of turning it into a

technology capital has led to heavy

investments in technology and credit

indices. Some projects include

building a Star Trek inspired

command centre, and free public

Wi-Fi across the city. -- technology

and creative industries. We said a

cross bonded to go see how this

could become one of Asia's Silicon

Valleys.

Architect and Mayor of Bandung was

inspired by Star Trek when he

designed this command centre, with

the idea of using technology to

better serve the people of Bandung.

We use technology to make everything

better, and suddenly, everything is

in place. I am very happy. This is

my legacy. -- architect and Mayor of

Bandung, Ridwan Kamil. The recipe of

Silicon Valley is it you need to

have the university is close to many

areas. People forget that without

the size and the education system

and university, you do not get that

of energy. -- universities close.

So these are some of your stickers?

Yes.

I don't think we are ready to become

the next Silicon Valley, because

there are still a lot of businesses

that still prefer to do everything

in the old ways. They will not

really open to new services.

And that is Bandung, Indonesia, and

its goal to become one of Asia's

Silicon Valleys. That is it from

Asia Business Report. Thank you for

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