16/02/2018 Asia Business Report


16/02/2018

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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offences of sexually

assaulting boys.

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Now on BBC News, all the latest

business news live from Singapore.

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It's all smiles from North Korea and

the Winter Olympics but will that be

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enough to lift sanctions on the

country. And we had to Hyderabad to

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find out why this city's drawing so

much talent. Gong Xi Fa Cai, have

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been Lunar New Year to all our

viewers, welcome to Asia Business

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Report. -- happy. The world has

heard from North Korea more from the

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last few days than in decades, their

figure skating team, cheerleaders

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and North Korean leader Kim

Jong-un's sister have all won the

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hearts in the Winter Olympic Games

in Pyeongchang but good this soft

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diplomacy translate into loosening

sanctions against the State? Earlier

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I asked Justin Hastings, an expert

on the North Korean economy, how the

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international community had reacted

to the latest moves from the

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country.

UN sanctions and US sanctions aren't

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going anywhere so what the North

Koreans can hope to gain is

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ultimately weaken South Korea's will

to enforce sanctions and maybe get

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more aid or money out of South

Korea. At some point North Korea

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will have to make some concessions

even for aid to be politically

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palpable in South Korea itself.

Chinese sanctions play a huge role

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in this as well and President Xi was

absent from Pyeongchang so far, how

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is that going to affect the North

Korean economy?

China has been more

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vigorously enforcing sanctions over

the past year, which has hurt the

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North Korean economy somewhat. The

temperature on the Korean peninsula

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decreases, with the Olympics you can

see China more willing to allow more

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investment into North Korea than it

has. It pulled back, now it may be

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more willing.

It's always tricky to

predict but according to some

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figures the North Korean economy was

estimated to have grown by 3.9% in

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2016, what do you think was the

growth in 2017 and going forward?

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Any time you have a number in North

Korea it will be problematic to

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speculate but I would say it would

be lower. Chinese sanctions have had

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greater impact and to the extent

North Korea is engaging in trade,

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it's having a slightly more

difficult time.

Seoul is perfect,

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paying for the North Korean

delegation is in Pyeongchang, do you

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think the Games will help the North

Korean economy by attracting more

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tourists?

That is up to the

guarantees North Korea makes to

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China and South Korea. Not directly.

Ultimately you could see more

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willingness to give aid or have

investment from China and South

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Korea. Indirectly we might see an

affect.

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Iran's president is making his first

visit to India since he took office

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in 2013. Trade between the two

countries is worth almost $13

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billion, but President Hassan

Rouhani is hoping to drum up even

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more new business with India after

crippling economic sanctions against

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his company were eased following its

2015 nuclear pact. For more business

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reporter Divina Gupta joins us live

from Delhi. We know what Iran wants

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but what does India want out of

these talks?

Carrico

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but what does India want out of

these talks?

Carrico, there will be

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to clear points when India is

negotiating bilateral trade deals

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with the Iranian president --

Mariko. One is energy and the other

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is connectivity. India needs to

import huge amounts of its crude oil

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consumption, Iran is a key player in

the region and out of the trade

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India does with Iran, it is about

$10 billion of import of crude oil

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that it is doing with Iran, so it

will be looking at furthering the

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energy packed with Iran, and the

other is connectivity because India

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is looking at Iran as a corridor to

access central agent markets. The

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newly built Chabal port in eastern

Iran, will be a point where India is

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looking at investment, also a place

where India is looking to access

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Afghanistan to have trade relations

with Afghanistan bypassing its

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partner here.

How will India balance

its economic interests in the region

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cause it has a lot of diplomatic

tensions?

That's very interesting

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because as we know, Iran is

dominated with one sect of Muslims,

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Shias, and the Indian Prime Minister

was in the Gulf region last week, in

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the UAE, he sent a signal to Saudi

Arabia that India wants to do trade

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with the entire region and why

should Iran be an exception?

Thank

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you for the update. Staying with

India and for years Bangalore has

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enjoys a reputation as the darling

of India's tech industry but that

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perception is changing because of

problems like congestion. The new

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rising star is Hyderabad. In a tale

of two Indian Tech City is, we find

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out how Hyderabad stacks up as one

of Asia's Silicon Valley is. --

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Indian Tech City is. -- Silicon

Valleys. -- Indian tech cities.

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Prices have risen, transportation is

becoming a real issue in Bangalore,

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which for a start-up removes some of

the agile benefits of being a small

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company.

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The ecosystem is vibrant and very

dynamic. There's a lot of government

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support. The ease of doing business

is a fact. Bureaucracy has been

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reduced and there is a lot of

support for very early stage

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start-ups.

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We've grown it with a plan in place,

we've grown it in a way that makes

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any everything integrated so we are

building milestones and we are

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hitting a job those milestones. The

fact we have government support,

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it's being done in a good man and

people here are willing to help each

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other out and that's the

differentiating thing between us and

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Bangalore.

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In other business news making

headlines, shares in Airbus are

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jumping by more than 10% after it

reported strong earnings for 2017,

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which beat analyst expectations. The

firm was hit by a charge of $1.6

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billion because of the delay in its

A400 military plane programme but

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investors responded positively

towards its shift to commercial

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models. It says it expects to

deliver 800 commercial aircraft in

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2018 if engine manufacturers stick

to their commitments. McDonald's is

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removing cheeseburgers from happy

meals as customers look for

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healthier options. They say by 2022

they will offer a more balanced

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meals on their children's menu

across 120 markets. That means meals

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that are 600 calories or less, but

they still include the choice of a

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hamburger or a box of chicken

McNuggets. The classic cheeseburger

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will only be available at a

customer's request. US regulators

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have rejected the sale of the

Chicago stock exchange to a group

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led by Chinese based investors over

concerns with its ownership

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structure. For more on the story we

are joined by our business reporter

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Monica Miller. It was initially

approved and then put on hold, did

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this come as a surprise?

I think it

did to some people. Essentially in

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the 76 page document they said it

simply didn't comply with US rules

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and regulations. Exchanges but the

real concern was whether the SEC

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would have enough say and control if

the deal had gone through. This went

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on for two years, it had been

approved but then it was put on hold

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last August for further review. It

was led by Chongqing casing exercise

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group, real estate, finance,

infrastructure, a big conglomerate

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that had lot of blowback from

Washington because they were

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concerned about security and they

didn't want the Chinese government

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involved. Now, this is a Chinese

company and the bourse is only

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small, only half a percent of what

US trades come through, but the deal

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was going to be a global market for

equities, particularly in the

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Chinese market.

I guess it joins the

long list of Chinese companies

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facing these challenges in America.

Thank you for that, Monica.

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A quick look at markets, lots of

Asian markets are closed today.

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Japan and Australia are

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