tv Asia Business Report BBC News January 4, 2017 1:30am-1:46am GMT
welcome to asia business report. us car manufacturer ford cancelled plans for a car manufacturer ford cancelled plans fora $1.6 car manufacturer ford cancelled plans for a $1.6 billion plant in mexico. that was in favour of further investment at home. the ceo mark field says the policies of the president—elect and his incoming administration factored into the decision. we look at a lot of factors when we look at decisions. the announcements we are making today of $700 million in the flat rock plant and adding 700 jobs, one factor we put into that is the favourable us business environment that we see under the president—elect and some of the growth policies and reforms, whether it is tax or regulatory, that he is talking about, that played positively in this and it is a vote of confidence that he can deliver. the ceo of ford motors. he says a more favourable us environment was a reason for the decision. the threat
of harsh taxes on imports has been looming over american companies, especially carmakers. donald trump has launched a series of attacks on twitter are making big us multinationals who import goods from abroad and sell them in america. in particular the president—elect has spoken out against auto companies manufacturing ca i’s against auto companies manufacturing cars a cross against auto companies manufacturing cars across the border. the north american free trade deal allows vehicles to be sold duty—free within the us, canada and mexico if they are at least 65% made in the block. trump wants to rip up the agreement and imposea trump wants to rip up the agreement and impose a 35% border tax. in other news:, shares of the japanese conglomerate toshiba are recovering by 2% after falling 5% earlier. that follows a report that japan's security watchdog suspected
the company of padding profits over the company of padding profits over the last three years by more than $400 million. a newspaper has said the exterior —— x —— exchange commission have reported it to authorities. at a strike to come after rejecting a pay offer with british airways according to the unite union with strikes planned over christmas holidays suspended after the new offer was made. the union members rejected it by 71. the airline says it will provide further details to customers on friday when it has finalised contingency plans. now, chinese banks have begun imposing additional requirements on customers who want to buy foreign currencies. each chinese citizen has a quota of $50,000 they are allowed to exchange every year and it resets in january. with to exchange every year and it resets injanuary. with the strong us dollar and concerns about the wea kness dollar and concerns about the weakness of the chinese yuan, that is adding two rules to be able to
stop a rush to exit. he is the view from an economist in shanghai. what happens every year it is onjanuary one the quota is reset, and over the last one and a half years roughly $1 trillion has left china both through companies and individuals and the concern at the central bank is at the start of the year there would be a stampede to the exit, so it has kept the $50,000 quota and now banks have to report any transaction of more than $10,000, so effectively they are trying to put years to slow they are trying to put years to slow the rush to the exit. -- gears. you say it has been $1 trillion, is it correct, leaving the country, so this is a worry for the chinese authorities — how are they going to address it, will these rules be enough? they are trying to address it in enough? they are trying to address itina enough? they are trying to address it in a variety of ways, so the rules announced in the last days are
relating to individual transactions by individuals. beyond that, over the last couple of months, they have put restrictions on companies doing transactions abroad, whether buying companies, property, foreign investment, and they are basically stepping up scrutiny along every stepping up scrutiny along every step of the chain, making it a lot harderfor money to step of the chain, making it a lot harder for money to leave the country. at the same time they are determined to encourage what they see as good foreign investment. as you know, there has been chinese investment in energy and financial sectors, buy—in sports teams around the world, they want to see the good investment taking place, whereas what they are concerned about is people rushing out to buy property 01’ people rushing out to buy property or looking to acquire any kind of foreign asset because they are concerned about the chinese economy. there are concerns about this amounts to capital controls. they are denying it. it doesn't help that the us dollar is strong because interest rates in the us are higher.
what has been happening when donald trump takes office? as he says, he labels china a currency manipulator? the trade war is a concern, if he caused them a currency manipulator, although that doesn't necessarily lead to specific action. china is worried it will eventually lead to steep tariffs, so china is buying time with trump, you can see it has on the one hand criticised what his tea m on the one hand criticised what his team had threatened and it is trying to give enough space, wiggle room, to give enough space, wiggle room, to back down from his fierce rhetoric. now, investors snapped up shares of fear not airlines on tuesday. the government owned airline offered new shares —— vietnam airlines. the airline is valued atjust over $2
billion. this might benefit the government, which wants to sell off the majority stake in the carrier. a monitor of the airlines industry has more on how the sale is likely to unfold. it is a very small stake and it stems from the government's concern about letting these assets go to cheaply, accounting for the small stake size. what will they hope to gain? the government realises it is not a great place to run an airline. governments in developing nations who have run airlines don't do a good job of it, so airlines don't do a good job of it, so it makes sense that they want to offload and bring in foreign partners. it is interesting you say they are trying to get rid of it, we know this huge demand in aviation is an area that is set to grow, the international air transport association essentially estimating the region is among the top five fastest—growing in the next 20 yea rs, fastest—growing in the next 20 years, so fastest—growing in the next 20 yea rs, so we fastest—growing in the next 20 years, so we saw fastest—growing in the next 20 years, so we saw the ipo price skyrocketing, what do you a tribute
that too, growth in the sector? skyrocketing, what do you a tribute that too, growth in the sector7m would be part of that, it is a tiny sta ke would be part of that, it is a tiny stake size though, so there is pent—up demand to take up v&a is a boom story —— attribute. there is a bit of it going on. if you want to play the airline sector in vietnam you don't have any other options other than vietnam's airlines of stock. the initial ipo was in 2014 but bureaucracy to lead the listing until yesterday. the low—cost rival is always talking about an ipo and that might come out at some point as well but we are never sure exactly when that is going to be. now, a cheap umbrella would usually only cost you a few dollars and that isa only cost you a few dollars and that is a good thing if you are prone to forgetting it. well, at least year's consumer electronics show in las vegas, a new technology will be launched to remind you to pick up
your umbrella before you head out the door, but does the innovation justify the pricetag? you have a smart umbrella, it sounds like one of the more ridiculous things on show. what does it do? yeah, it is not ridiculous, because what happens when umbrellas is you lose it all the time, you leave at the height or whatever, so we decided to create an umbrella that is unforgettable, and to do that we created disconnected umbrella. and so created disconnected umbrella. and so how does it work? it has a small chip in the handle that is connected here with your smart phone, and this chip sends you another, on your smart phone, so if you leave it behind, with the bluetooth election not connected, it will give you an alert, to say, don't leave me stop for those who leave it on the bus it
will save money, so what will it cost? $89, which means, you do the maths, if you're used to losing umbrella is all the time, it is worth it. you would have to lose quite a lot of umbrellas for that? this is also an amazing design, so you'll never forget it. and, of course, keep across all our ces coverage online. a quick look at the markets before we go, because they have all opened ona we go, because they have all opened on a positive note, that is here in asia, japan of course, the nikkei seeing the first trade for that day into any 17. i told you about the toshiba shares, reversing earlier declines, they are also rising. this is because the us dollar hit a 14 year high, helping exporters, and likewise in the other markets which have also opened higher. and that is it for this edition of asia business report. thank you for watching. i'm babita sharma.
the top stories this hour. republicans in the us congress have ditched plans to reduce the powers of an independent ethics watchdog, after voters and donald trump questioned their priorities. the attacker responsible for the new year's eve gun attack —— it's one of scotland's most beautiful mountain ranges but a couple from leicestershire who disappeared after setting off with their dog on a new year's day walk in the cairngorms have been speaking of their lucky escape. bob and cathy elmer, both experienced hill walkers, were caught out by the weather. our scotland correspondent lorna gordon has the story. the brutal conditions of a scottish winter. out on the heels, 50 mph winds, freezing temperatures and deep snow. bob and cathy elmer had become disorientated in the appalling weather and have realised their only option was to hunker down when they torch failed. their footprints and those of their dog spotted from a helicopter helped narrow the search. then this, the
moment a mountain rescue team found them and then guided them to safety. the snow was at times up to our waste. we eventually got out onto the plateau. with the intention of trying to get to the summit of cairngorm, then my headlamp gave up, so we cairngorm, then my headlamp gave up, so we decided that we couldn't go on any further —— waist. ‘cause we didn't any further —— waist. ‘cause we didn‘t really know where we were going. you couldn‘t see your hand in front of your face. so we decided to get the survival bags out. and we got done for the night in them. get the survival bags out. and we got done for the night in themm was a move rescuers believed saved their lives and that of their dog, meg, who had her own separate survival bag. conditions were arctic and where they were, you know, no matter which way they walk it was steep ground, and in the dark with one head torch and disorientated it would have been so easy to take a very, very serious tumble. this is one of scotland‘s highest mountains and conditions further up towards the summit can closing quickly,
catching out even the most experienced climbers. and the couple‘s" underlines just how dangerous winter walking can be. we survived. if like they say, if we hadn't had the right equipment we wouldn't be here. it is a grim place in the wintertime, especially when the conditions change and, you know, you can, if you‘re not prepared for it, you can seriously run into some serious situation. safely down but not put off and determined to return to the mountains one day. at not that mt? not that one. 0h, we will be back. we will definitely be back, but, oh, we will probably be a little bit more careful next time. keen but certainly more cautious after their new year‘s day walk ended with their dramatic rescue. hello.
this is sport today, live from the bbc sport centre. coming up on this programme: giroud grabs a goal and a point for the gunners as they come from 3—0 down to draw with bournemouth. another one bites the dust. mike phelan is the fourth premier league manager to be sacked this season. he leaves hull city less than three months into thejob. matt renshaw goes for 184, but australia are dominant. we‘ll bring you up to date with the third and final test against pakistan. hello and thanks forjoining us, there was a six—goal thriller on the south coast as bournemouth and arsenal played out an enthralling 3—3 draw in the english premier league on tuesday. incredibly the cherries were 3—0 up with 20 minutes to go — when alexis sanchez pulled one back to launch arsenal‘s revival. lucas perez made it 3—2 a few minutes later.