09/03/2018 Asia Business Report

I'm Kasia Madera with BBC News.

Our top story: There's been

an historic announcement

about North Korea

at the White House.

President Trump has agreed to meet

the North Korean leader,

Kim Jong-un.

The White House confirmed

the meeting would happen at a time

and place yet to be determined.

The head of a South Korean

delegation that held talks with both

leaders this week said the meeting

would happen by May.

The South Korean envoy praised

Mr Trump's uncompromising stance

for adding to the pressure

on North Korea.

North Korea has agreed also agreed

to halt nuclear and missile tests.

The White House said the Trump

administration looked forward

to the denuclearisation

of North Korea -

but in the meantime,

all sanctions and maximum pressure

must remain on Pyongyang.

The President said he agreed to the

meeting because he is the ultimate

decision-makers in his country.

And the top story here in the UK:

A jury at the Old Bailey

has been shown a video,

of the moment a bomb partially

exploded on a tube train

in South West London last September.

Now on BBC News all the latest

business news live from Singapore.

President Donald Trump accepts North

Korea's offered to talk about

denuclearisation. Our tough

sanctions responsible for the change

of heart? And looking for the next

big flavour. For those with a sweet

tooth in Asia. Good morning, Asia.

Hello, world. Glad you could join us

on this Friday edition of Asia

Business Report. As you have been

hearing on BBC World News over the

past 90 minutes, Donald Trump has

agreed to meet with North Korean

leader Kim Jong-un in order to

defuse the nuclear. Let's get more

on this with Leisha Santorelli. The

potential meeting that might take

place. But still, no venue. Donald

Trump tweeted that currently in the

midst of coming up with a date and

time and place but initially, what

has been the reaction of the

financial markets in Asia?

As this

news was coming through, Japan and

South Korea in stock markets were

opening and they are soaring. Japan

up by 2%, South Korea 1.5% and its

currency is doing well and this is

because of such a dramatic

breakthrough in the tensions on the

Korean Peninsula and obviously

investors are overjoyed. At the

prospect we could see a de-

nuclearised North Korea. We have to

treat this planned meeting with

caution. Previous attempts to

negotiate with North Korea on a

bilateral and multilateral level

have all failed. A lot of credit

must be given to Donald Trump and

his administration for putting a lot

of pressure on North Korea but that

we still need to be sceptical as to

whether we will see any deal

delivered.

What about giving credit

to China who is a major political

and economic ally for North Korea?

We know that North Korea has been

hit by its toughest ever sanctions

on an international level -- level.

From the EU, Japan and South Korea.

Crucial to all is China. It accounts

the 90% of trade with North Korea.

The US and China have been having

their own intense relationship.

China has been in a position where

they need to be more accommodating

for North Korea. We are seeing a

crackdown on smuggling of goods into

North Korea. I think China must be

given some credit.

A knee-jerk on

the upside for markets in Asia.

Thank you for the update. My

business colleague Leisha

Santorelli. President Trump has

followed through on his campaign

promise and signed an order putting

steel and aluminium tariffs in

place.

We want a lot of steel coming

into our country but we wanted to be

fair and we want our workers to be

protected and we want frankly our

companies to be protected. By

contrast, we will not place any new

tax on product made in the USA. So

there is no tax if a product is made

in the USA. You don't want to pay

tax? Bring it to the USA, there is

no tax.

Some argue that these

tariffs are moving the US closer to

a trade war but there are exemptions

for Mexico and Canada, according to

experts.

Their 25% import tariffs on

steel, 10% import tariffs on

aluminium. Steel imports to the US

are not gigantic. 1.6% of imports.

0.2% of GDP. These are not huge

numbers when it comes to the overall

US economy but the key thing is

whether or not these tariffs set up

a trade war. We have seen threats of

retaliation by the European Union

who has threatened to tax everything

from American bourbon which is

manufactured in Mitch McConnell's

home State of Kentucky to American

motorcycles in Paul Ryan's State of

Wisconsin. We will see the European

Union is successful at getting rid

of these extensions. This is a White

House which likes to put on a show

so inviting nations to apply for

exemptions, give us your best offer

and we are more than willing to give

what we've given to Mexico and

Canada.

The Republican Party, some

of President Trump's major allies,

and the Democrats are against these

trade tariffs. Is there a likelihood

they will even get into effect?

We

have 15 days for the tariffs to take

effect. We have seen strong

opposition from President Trump's

own party. There are over 100

members who said they were deeply

concerned, in the Republican Party,

and other Republicans who came out

and say they wanted to introduce new

legislation which could strip

President Trump of his powers to

institute tariffs such as these.

More to be seen.

More than a year

ago, Mr Trump through a wrench into

a free-trade arrangement once ranked

as the world's largest and now the

remaining 11 countries are going

ahead without America and signing a

revamped version. It's been

rebranded as comprehension --

copperhead seven progress of

agreement for the Trans-Pacific

Partnership or CP TPP. We sat down

with the Australian Trade Minister.

We know already there is interest

from other economies who would like

to join. The more that do, the

stronger the value of the

Trans-Pacific Partnership.

Seeing

this become a reality, there are

some huge hurdles in each of the

countries to deal with Congress.

Ultimately that will be determined

by the domestic processors each

country must pursue but the

consensus view, the agreement coming

into effect by the end of this year

or early next year. We need six

countries to give effect to it. If

we do that, the agreement should

come into effect in the not too

distant future.

Today has been a day

of mixed feelings with the US going

one day and Australia, and others

going the other way in terms of

trade. Is this the new way for

global trade now?

There is nothing

particularly new about the fact that

different countries adopt different

positions on trade. History has

taught us that has been the case

since time immemorial. We have seen

over the last 40 or 50 years in

particular the liberalised trade has

driven economic growth and jobs.

Countries that engage in trade a

more prosperous. Countries engaged

in trade have higher levels of

employment in the country is because

you can grow businesses, they are

more stable if they are engaged in

international trade is that is what

drives our approach.

The Australian

Trade Minister there. Opening a

chewing gum lab in Singapore makes

as much sense as setting up a bar at

a meeting of teetotallers. The

government sees gum as a sticking

nuisance but global snack company

Mondelez saw an opportunity to sink

its teeth into a project.

Chewing gum and Singapore are an

unusual pairing but global snacks

company Mondelez says Singapore was

just the place rich new research

centre for gum and candy.

Singapore

is a wonderful place because of its

diversity. Course the high quality

of talent and good R&D.

Mondelez was

spun off from US food giant craft in

2012 and makes everything from

Cadbury chocolates and Oreo cookies

to denting chewing gum. It may seem

like child's play but developing

suites is supplied singly

complicated. Creating a jelly can

take months or even years in

research and development and make

sure it's just right and this is the

place where scientists are working

on new types of gum candy. I could

try one. I can't tell you what it

tastes like because still top

secret. Consistency and flavours are

a big part of the work here and that

can vary from market to market. Take

China, for example.

There is a

cultural heritage which is using

lower sweetness and less sugar and

our products see we will customise

this product is the China to have a

lower level of sweetness.

Suites and

snacks are $41 billion is this in

Asia-Pacific and with an expanding

middle-class, the region is set to

become the fastest-growing market.

So localising flavours helps to win

over more palates. How are you

doing? Every little detail right

down to the packaging is important

as Mr Kelaher and his team are

hoping to win over hearts and

satisfy Asia's sweet tooth.

It has been a sweet day so far

operation stock markets. They are

surging. Japan, Hong Kong and

Australia