20/02/2018 Asia Business Report


20/02/2018

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


Similar Content

Browse content similar to 20/02/2018. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

I'm Sharanjit Leyl with BBC News.

0:00:150:00:19

Our top story: Students have staged

a protest outside the White House,

0:00:190:00:22

demanding action on gun control.

0:00:220:00:24

President Trump has said he supports

efforts to improve background checks

0:00:240:00:29

on gun buyers in the wake

of the Florida school shooting that

0:00:290:00:36

left seventeen people dead.

0:00:360:00:38

A UNICEF report on global infant

mortality has found that many

0:00:380:00:41

newborn deaths are preventable.

0:00:410:00:44

Around the world, 2.6 million babies

die each year before turning

0:00:440:00:47

one month old.

0:00:470:00:50

And this story is

popular on BBC.com.

0:00:500:00:52

Fast food chain KFC has been forced

to temporarily close around six

0:00:520:00:55

hundred of its restaurants

across the UK and Ireland

0:00:560:00:58

after delivery problems caused them

to run out of their most important

0:00:580:01:01

ingredient - chicken.

0:01:010:01:02

KFC said it had been let down

by a company that took

0:01:020:01:05

over its supply chain last week.

0:01:050:01:07

That's all from me for now.

0:01:070:01:09

Stay with BBC News.

0:01:090:01:09

And the top story here in the UK.

0:01:160:01:19

Theresa May has launched her

year-long review of higher education

0:01:190:01:22

funding in England, but has already

ruled out completely

0:01:220:01:24

scrapping tuition fees.

0:01:240:01:25

The Prime Minister said

she understood the "serious

0:01:250:01:27

concerns" of students who struggle

to afford the cost of studying

0:01:270:01:30

for a degree.

0:01:300:01:31

Now on BBC News, all the latest

business news live from Singapore.

0:01:310:01:44

A changing of the guard at HSBC.

Will a new leadership mean more

0:01:440:01:48

profits for the banking giant? And

Richard Branson tells the BBC about

0:01:480:01:51

his plans to build the Hyperloop

train in India. Its Tuesday. Good

0:01:510:02:06

morning, Asia. Hello, world. Glad

you could join us. HSBC will have a

0:02:060:02:14

new CEO taking the helm today after

major restructuring turned its

0:02:140:02:20

fortunes around. UK-based lender

reports full earnings and many will

0:02:200:02:27

be watching for signs that the

bank's pivot to Asia will be a

0:02:270:02:32

success. In the third quarter of

last year, nearly 90% of its pre-tax

0:02:320:02:38

profit came from here in the region.

Asia has been a key driving growth

0:02:380:02:44

in the loans, insurance and wealth

management business. The bank is

0:02:440:02:51

betting big on the Pearl River

Delta, the world's most populous

0:02:510:02:55

urban area, by investing billions of

dollars in infrastructure and the

0:02:550:03:01

area but as Stuart Gulliver hands

over to John Flint, will this

0:03:010:03:08

strategy continue?

HSBC is in a

sense of an Asian bank, it makes

0:03:080:03:18

most of its profit out of Hong Kong.

The UK is not even second or third.

0:03:180:03:24

But aren't they putting too many

eggs in one basket? Are they betting

0:03:240:03:29

too much of Asia?

It's a global

bank. Yes, but in all these years,

0:03:290:03:35

Hong Kong and Asia has been the

anchor underpinning HSBC. Hong

0:03:350:03:41

Kong's retail business is the engine

which keeps the bank going.

How

0:03:410:03:46

different for the management bile --

management style be?

Stuart

0:03:460:03:55

Gulliver, Oxbridge, trader, global.

John Flint, Polytechnic, sportsman,

0:03:550:04:00

on the ground, retail builder. I

expect to see John Flint on the

0:04:000:04:06

ground and working the machinery and

bringing it back to what its

0:04:060:04:09

original focus is which is asset

heavy mortgages, retail, wealth

0:04:090:04:14

management, those types of

businesses.

Let's create a job

0:04:140:04:21

description for John Flint.

John

Flint has to demonstrate a digital

0:04:210:04:27

strategy for the bank, it is the one

global bank which doesn't seem to

0:04:270:04:32

that articulated one very strongly.

He needs to up the fees side of the

0:04:320:04:38

business and not be so asset

dependent on the cost part, it is

0:04:380:04:42

still nagging. He needs to work on

that to bring global costs down.

15

0:04:420:04:48

to 2018 seems to be rising

inflation. Will HSBC Biela to use it

0:04:480:04:55

to their advantage?

HSBC is the most

organic commercial global bank. The

0:04:550:05:02

others have been making money from

trading accounts, investment

0:05:020:05:07

banking, global strategy. HSBC is on

the ground, a retail bank and that

0:05:070:05:12

is where it will be seeing more

benefit from rising interest rates

0:05:120:05:16

than the other banks.

How will

Brexit impact it? Or will they be

0:05:160:05:21

shielded?

Brexit is a distraction.

Look at the numbers. Despite the

0:05:210:05:29

good topline numbers, the bottomline

is very challenged. Brexit will add

0:05:290:05:33

a lot more cost. The idea of having

a front in London and others and so

0:05:330:05:43

on, it will be a distraction.

In

other business news, five Central

0:05:430:05:51

American countries will sign a free

trade arrangement with South Korea

0:05:510:05:54

this week after more than two years

of talks to ease tariffs and

0:05:540:05:58

barriers on a range of products.

Costa Rica, El Salvador, Honduras,

0:05:580:06:04

Nicaraguans, and Panama will sign on

to the deal. Guatemala will remain

0:06:040:06:09

outside pending negotiations.

Central America imported more than

0:06:090:06:14

$1 billion from South Korea and

exported $143 million to the

0:06:140:06:19

country. Finger licking but gone

missing. KFC has ruffled a few

0:06:190:06:24

feathers after closing hundreds of

its restaurants across the UK and

0:06:240:06:27

Ireland because of a shortage of

chicken. The problem arose over the

0:06:270:06:31

weekend after the fast food chain

switched its contract to DHL. The

0:06:310:06:36

delivery company has blamed the

problem on operational issues. KFC

0:06:360:06:42

apologised saying it let customers

down but getting chicken to 900

0:06:420:06:45

restaurants is very complex. Richard

Branson wants to bring a futuristic

0:06:450:06:52

Hyperloop style train system to

India. He signed a preliminary

0:06:520:06:56

arrangement with the Prime Minister

to build a route that will connect

0:06:560:07:05

the cities of Pune and Mumbai and 25

minutes, saving three hours. We met

0:07:050:07:10

with him and asked whether this

could become a reality.

0:07:100:07:16

Look, there are going to be

naysayers at the start of any new

0:07:160:07:20

industry and our right to be

naysayers until we have actually

0:07:200:07:24

proven wrong. The upside of it is

gigantic. Trains made a very big

0:07:240:07:31

difference to India in the last

century. I believe that Hyperloop

0:07:310:07:36

will be the giant step forward that

India needs. Hyperloop can connect

0:07:360:07:41

most of the major cities in India in

well under two hours.

You have to

0:07:410:07:46

make sure that the cost is

reasonable because the cost of

0:07:460:07:50

building is too high. Certainly in

countries like India where basic

0:07:500:07:54

transportation and infrastructure is

an issue. A lot of governments might

0:07:540:07:59

find the idea interesting but the

project cost could be too high and

0:07:590:08:02

they would get turned off.

Firstly,

the cost of building Hyperloop would

0:08:020:08:07

be private money. The cost to the

passenger of travelling on a virgin

0:08:070:08:13

Hyperloop will be competitive with

any high-speed train and we believe

0:08:130:08:18

quite a lot less. We think we can

build virgin Hyperloop for a lot

0:08:180:08:22

less than you can build a high-speed

train. Therefore, we should be able

0:08:220:08:26

to charge less.

Recent deal friend

and rival Elon Musk launched the

0:08:260:08:36

fault can heavy rocket. You said you

are a bit jealous.

You said it could

0:08:360:08:42

be this year? I would be very

disappointed if it's not this year.

0:08:420:08:47

Before other people go up, we'll

have our break, test pilot is going

0:08:470:08:53

up. And I will go up.

Will we see

you going up this year?

I would

0:08:530:09:00

obviously love to go up this year so

we will see how it goes.

You've been

0:09:000:09:04

trying to do this a long time. As

Elon Musk increased the pressure?

In

0:09:040:09:09

this business, there must be no

pressure. We spent 12 years getting

0:09:090:09:13

this part. We will not rush

unnecessarily to be the first to put

0:09:130:09:20

people into space. If we happen to

be the first to put people into

0:09:200:09:26

space, I hope Elon Musk would do the

same but we'll see how it goes. The

0:09:260:09:33

reason he has not put people into

space is because he wants to be sure

0:09:330:09:37

of their safety.

0:09:370:09:41

Stating that India and Canada's

Prime Minister Justin Trudeau

0:09:410:09:46

continues a week-long visit to

promote trade and investment. It is

0:09:460:09:53

his first visit to India since

taking office. He will meet the

0:09:530:09:57

Prime Minister with an agenda

covering energy and education and

0:09:570:10:00

infrastructure. For more, we are

joined by a macro -- or more, we are

0:10:000:10:12

joined by Devina Gupta. It looks

like both countries want to increase

0:10:120:10:16

trade and investment?

Yes, and it is

down to business for Justin Trudeau

0:10:160:10:21

who will be meeting Mumbai business

leaders in the financial hub of the

0:10:210:10:25

country. India and Canada trade is

at about $8 billion and Justin could

0:10:250:10:30

I was looking to expand it. India is

crucial for Canada agricultural

0:10:300:10:34

produce. Almost a third of Canadian

exports to India are agricultural

0:10:340:10:40

produce for dental and other pulses

but also its clean technology where

0:10:400:10:44

Canada would be hoping to see the

deal with India. -- lentils. A very

0:10:440:10:51

crucial deal of $280 million to

supply uranium for India's nuclear

0:10:510:10:57

power plants. Going ahead, looking

at green technology. There is a

0:10:570:11:03

retinue of businessmen from Canada.

Today will be a day-long crucial

0:11:030:11:10

meeting.

A lot of high-profile CEOs

and leaders visiting India. You have

0:11:100:11:18

the son of the US President visiting

Delhi. There it a business trip or

0:11:180:11:23

is it a political trip?

It is purely

a commercial trip. Look at these

0:11:230:11:31

adverts which are out in almost

every national daily. India is the

0:11:310:11:35

largest market for Trump real estate

products.

Thank you so much the

0:11:350:11:45

update, Devina Gupta there are

joining us from Delhi. And with that

0:11:450:11:48

we end this edition of Asia Business

Report. Have a productive day ahead.

0:11:480:11:53

Goodbye Furnell.

0:11:530:11:56

Download Subtitles

SRT

ASS