13/02/2018 Asia Business Report


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13/02/2018

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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Earlier, Oxfam's deputy chief

executive, Penny Lawrence, resigned.

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Now on BBC News all the latest

business news live from Singapore.

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Wall Street closes higher, but our

investors nervous about what comes

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next?

We will hear from a large fund

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manager. And how companies are

helping clean up the oceans by

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cutting down on plastic waste.

Good morning, Asia, hello world. It

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is a Tuesday. Glad you could join us

for another exciting addition for

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Asia Business Report. I'm Rico

Hizon. We kick off with the markets.

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We saw Wall Street closing higher

overnight with the Dow Jones adding

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1.7% and the broader S&P 500 hired

by 1.4%. That Mackay by. We have

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seen one of the wildest runs in US

stock market history. In Asia,

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markets followed Wall Street moved,

it is that make it sell trade. The

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Nikkei and be indexed and South

Korea. I spoke to Shaun Taylor about

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what he has been watching for in the

market right now.

The way we are

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looking at inflation is we see it in

the US getting it to about 1.8 by

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the end of the year. It will be two

steps forward, one step back, and

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continuing that pattern. The fancy a

more confident they will reach the

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2% target, finally. And probably we

will have a rate rise in March at

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the next meeting. It is not

unexpected. If you look at the

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behaviour of the bond market over

this period it has been reasonably

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stable relative to when we have had

passed selloffs. This is an equity

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issue, values had got reasonably

high, the market had done very well

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in January, particularly some of the

risky markets like emerging markets

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and Asia, and was due a pause. When

people are on the short volatility

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trade it comes off very quickly and

they have to close their positions,

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it does cause some volatility.

What

is your advice to right now for your

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investors in this market volatility?

We would be more cautious on the

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Treasury is going forward. Interest

rates are clearly going up and that

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will affect treasuries across the

globe. We are very confident still

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on corporate credit and we are

excited about equities earnings are

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still getting upgraded. You will see

downgrades normally in the US.

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Jussie we have seen upgrades of

4.8%. In 1.2 on revenues -- this

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year we have seen.

Shaun Taylor.

President Trump has promised what he

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is calling the biggest and boldest

infrastructure investment in US

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history. Announcing his budget

plans, he said he wanted to spend

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$1.5 trillion in roads, highways,

ports, and airports.

Joe Mellor from

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New York. We have been hearing about

this month on and months and months.

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The Trump Administration has

promised a big announcement on

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infrastructure since at least the

summer of last year. And here it is.

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The basic premise behind it is

something all parties basically

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agree on, it is that America's

roads, bridges, railways, they are

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travelling in the investment. It was

a big campaign promise of Donald

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Trump to pour money into

infrastructure. On that almost

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everyone is a line. Then a glider

where the money will come from.

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Today's announcement does not really

remedy that. There is only 200

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billion coming from Washington

itself, from federal funds. That is

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a drop in the ocean from anyone's

standards. The rest, Donald Trump

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said today, has to come from the

private sector or cities or states.

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The cities and states say they don't

have the money and it is much harder

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for them to borrow money than the

Federal government. They are much

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more restricted when it comes to

that. They are arguing they are

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never going to be able to make up

the shortfall that will get them to

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$1.5 trillion in investment.

In

other business news making

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headlines, Amazon is reportedly

cutting hundreds of jobs after

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several years of major growth. The

layoffs were reported by the Seattle

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Times, which said the actions

focused on streamlining the

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company's consumer retail business.

The firm employed more than 560,000

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full and part-time workers at the

end of December. There will Epernay

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new $3.4 billion Cesena in Macau

just in time for the Chinese New

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Year holiday. It marks the biggest

investment in the Territorian. It

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comes after uncertainty after

condition of its licensors. 20

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century Fox has promised to keep Sky

News in depending continue funding

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the loss-making channel for five

years, as it tries to overcome

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regulatory concerns over its

takeover. The deal, if approved, is

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worth $15 billion. Starting today,

Japanese cryptocurrency exchange

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Coincheck will allow people to

withdraw money from its portal. Just

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over two weeks ago hackers stole

$530 million worth of digital money.

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More on this issue and the unfolding

developments behind Coincheck, I am

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joined by Mariko Oi. Have the

withdrawals started?

It has

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actually. I was just looking at

Twitter. Some of the users saying

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they have started to receive money.

That is only the Japanese yen and

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not cryptocurrency. Not because of

their falling prices. Some of them

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are not happy. They are basically

sitting on huge losses, ballooning

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losses, if you like. This theft has

highlighted how vulnerable the

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exchanges. It shocked the nation

which are so far embraced

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cryptocurrencies, unlike neighbours

like South Korea and China which

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have been cracking down on. Last

year, Japan became the first country

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to nationally regulate these

exchanges. So far there have been 16

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others awaiting clearance. Since

this Pack two weeks ago the

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regulator has been looking into all

these exchanges and Coincheck has to

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submit by the end of the day to show

how to improve security.

More

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transparency. But we have seen every

falling cryptocurrency since the

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beginning of the year. My colleague

and business reporter Mariko Oi. The

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plastic. It is one of the favourite

packaging materials in the world. It

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is cheap and efficient for

transporting goods, but only a

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fraction of it is recycled. And as

an increasing number of consumers to

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man's green alternatives, some

companies have been dreaming up

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fresh ways to combat waste.

At least 8 million tons of plastic

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ends up in the ocean each year. One

of the biggest culprits is the

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consumer goods industry, plastic

packaging is often used just once

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before being thrown away.

Only 10%

of plastic in the world is actually

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recycled. That leaves 90% either

been buried or burned or lost into

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the environment.

Now a number of

companies are trying to stem the

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tide. British firm Recycling

Technologies think this machine can

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be a game changer. It takes

difficult items like food wrappers,

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toothpaste tubes, coffee cups, and

binliners, some very high to

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bridges, and breaks down the plastic

to its raw material. At the end of

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the process you get something like

this, an oil that can be sold back

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to petrochemical companies to be

made back into plastic once again.

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We are building a facility in

Swindon to make 200 machines per

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year, each machine will do 7000 tons

plastic. That is 1.4 million tons of

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recycling capacity being added into

the system every year. We would be

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able to quadruple the capacity of

European recycling in the next

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years.

Many plastics can currently

only be recycled ones. A company who

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makes household cleaning products

once its products to be recycled

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again and again.

The most

sustainable system we could have a

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plastic usage is if everyone used

transparent bottles, because then

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all bottles would be recycled back

and any bottle could be recycled

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into any other bottle.

Plastic is a

lightweight, durable, and cheap, and

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crucially it keeps food fresh. But

some companies are finding

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alternatives. SAP Rutba 's use

packaging that disappears

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completely.

This is compostable

material. In about six month it will

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fully decompose, meaning all of the

nutrients are returned to the

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natural cycle.

Small companies look

for ways to tackle the problem

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plastic waste, the more we do at the

price will come down. Some firms

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find they can do without plastic

after all. And the let us have a

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look at the markets. Currently

better than expected. The Nikkei up

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by 117 points. The Hung Phan and

open about ten minutes ago and it is

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surging by 390 points. The All

Ordinaries index gaining 6.5 points.

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So far all good, all in positive

territory. The three major indices

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rebounded overnight with broad-based

schemes across the sector. The Dow

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Jones industrial average and two

trading days, Friday and Monday, up

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by more than 700 points. Overnight

gaining 1.7%. The NASDAQ up

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