tv Asia Business Report BBC News October 5, 2017 1:30am-1:44am BST
of the las vegas gunman, who was in the philippines at the time of the massacre. marilou danley described stephen paddock as kind, caring, and quiet and said she had no idea what he was planning. president trump has visited las vegas in the wake of sunday's attack to offer support and thank the emergency services. the mass shooting left 58 people dead and more than 500 injured. social media users in india are changing their avatars and twitter displays to support two men who were attacked apparently for having moustaches. that's all from me for now. stay with bbc news. and the top story here in the uk. theresa may has struggled to deliver her keynote speech to the annual conservative party conference after being interrupted by a prankster. she stopped and coughed repeatedly after a man handed her what appeared to be a p45.
now on bbc news, all the latest business news live from singapore. amazon and apple get slapped with hundreds of millions of dollars in back taxes by the european commission. and our tech reporter gets his hands on google‘s latest smart phone and finds out if it has what it takes to compete with the iphone. good morning, asia, hello, world. welcome to asia business report. i'm rico hizon. the european union has launched a fresh crackdown over taxes paid by technology giants amazon and apple. amazon has been ordered to repay more than $290
million in back taxes after european regulators that it was given an unfair tax deal regulators that it was given an unfairtax deal in regulators that it was given an unfair tax deal in luxembourg. the european commission also plans to ta ke european commission also plans to take island to court over its failure to collect billions of dollars of back taxes from apple. —— ireland. let's find out more on this. the european commission is really busy but what do these allegations mean for amazon? really busy but what do these allegations mean for amazon7m really busy but what do these allegations mean for amazon? it has to be said the europeans have been very aggressive with major multinational companies that they believe to be avoiding taxes. the european commission conducted a nearly three—year investigation into amazon's tax practices and they found amazon had gotten into a sweetheart deal with luxembourg starting from 2003. so the european competition commissioner margrethe vestager said amazon was allowed to pay four times less tax than local companies subject to the same rules
and she said this essentially amounts to a legal state support from luxembourg. amazon and luxembourg both deny this and amazon said they are now looking at all of the options to combat this decision, including a legal appeal. $290 million in back taxes, do you think the european commission can collect these huge sums of money from amazon? rico, remember the european regulators ordered apple to pay a record amount of money in back taxes to island. dublin was meant to collect that money in early january of this year, they haven't done it yet, and that's why they've been ordered to go to europe's highest court so the answer to that is maybe they'll get their money back but only after a long legalfight. they'll get their money back but only after a long legal fightm will be a long process! what about other multinationals, are they also being investigated by the european commission? the europeans have launched four different probes since 2014, apple in ireland, we talked
about that already, starbucks has come under investigation with their dealings in the netherlands and fiat was investigated over their dealings with luxembourg, amazon is the fourth, and the europeans are said to be looking into mcdonald's. fourth, and the europeans are said to be looking into mcdonald'sm fourth, and the europeans are said to be looking into mcdonald's. it is a long, protracted legal process. thanks so much for that update. in other business news, pepsico's latest earnings aren't as sweet as they once were. demand for gatorade is weak and marketing missteps led toa drop is weak and marketing missteps led to a drop in its north american quarterly sales. revenue falling 3.5% to $5.3 billion. the consumption has been falling for the last 12 years as more people choose healthier options. that has forced sober makers to bulk up their portfolio of noncarbonated drinks and launch low and no calorie versions of their alicia machado brands hash soda. google has updated
its version of the macro once more do buy. —— there alicia machado brands —— their alicia machado brands. in last year google brought out its first branded high end smart phone, the pixel, designed to show off all best in the android operating system. best in the android operating syste m. n ow best in the android operating system. now we have pixel two. the screen is bigger and goes further to the edge. 0ther screen is bigger and goes further to the edge. other key things at the heart of google's pixel phones is the google smart assistant and now there's a quicker way to get to it, you can talk to it and tap on it and 110w you can talk to it and tap on it and now you can squeeze the phone and up it comes. what is so special about this, google? here are some results from a search. i don't think i've
seen a new from a search. i don't think i've seen a new high—end smart phone launched in recent years where the makers haven't claimed its got the best camera ever and this is no exception, google said the pixel two ta kes exception, google said the pixel two takes amazing photos, especially in low light. 0ne takes amazing photos, especially in low light. one feature they are boasting about is the ability to ta ke boasting about is the ability to take a portrait with the background blurred, out of focus. beautiful portraits. the key thing here, because you can get that feature on a lot of phones these days, is that they are doing it with one lens, they are doing it with one lens, they say they are using clever softwa re they say they are using clever software and machine learning to do that with just one camera. let's give it a go. nice. that's better. so what's the reason for not having to cameras on the back like many phones? google says it allows it to get more in and get more battery life in a bigger battery but there's one thing missing from this phone, a headphone socket, it's gone, you have to plug your headphones in here
where you charge it. why does this matter? it is google saying it is finally determined to master hardware and combine it with softwa re hardware and combine it with software in the way apple has with the iphone, which has turned out to be such a stunning business. 0ne sign of that, it has spent over $1 billion a few weeks ago acquiring 2000 htc smart phone engineers. but s0 2000 htc smart phone engineers. but so far the results aren't stunning, just 0.5% of the global smart phone market accounted for by the first pixel, they say they are going to do better time around. rory cellan—jones and the new google smart phone. we shift to monetary policy now and the reserve bank of india has left key interest rates unchanged from dominic amid weak economic growth and signs of inflation. asia's third—largest economy lost momentum after the currency was scrapped in circulation last year. the cost of borrowing was
cut after trimming the growth forecast. 0ver cut after trimming the growth forecast. over to indonesia, which is facing sluggish domestic demand and having difficulty attracting foreign investment is. our asia business report correspondent karishma vaswani caught up with an investor in south east asia's biggest economy —— foreign investments. she asked him why given the size of the economy it regularly punches above its weight in terms of economic expansion. comparing india and china, the distribution cost is difficult in indonesia. if a company wa nted difficult in indonesia. if a company wanted to expand all over and touched the 240 million population, it isn't easy. and i find that the issue, because it is run by provisional state governments, you can have a clear leader at the top —— touch the. the government can say i'm going to spend x billion dollars worth of infrastructure, ultimately the guys at the provisional level
have to agree and allow that. —— provincial. when people look at it it's better than where we were but they haven't seen the true potential of the country if everything moves accordingly. what sectors in the indonesian economy do you think are currently the ones with the most potential? infrastructure will be one. ifind property as potential? infrastructure will be one. i find property as well. potential? infrastructure will be one. ifind property as well. given penetration rates for property ownership are very low, that is clear, and banking. it is interesting to see, we have very large banks. some banks aren't great but the penetration is still around 35% so not everybody has a bank account. the other thing is they are getting more traction on e—commerce. you get a lot of japanese and chinese investors, aliba ba, you get a lot of japanese and chinese investors, alibaba, tencent, all trying to make waves into e—commerce in indonesia so hopefully
they can include a bit of those financial technologies into the market. what do you think indonesia's growth level should be at given its democratic dividend and the population? for a market like indonesia you shouldn't have inflation at 4%, that tells me that consumer sentiment is weak and demand is low, inflation should be 596, demand is low, inflation should be 5%, you should have gdp around 6%. the central bank realises inflation is low and we are punching below our weight in true potential gdp. we need the engine up and running because otherwise this voter base will come back and haunt them if they can't getjobs. for them the stability of the rupee is important and inflation is important. inflation is low and the repeat is very stable. it doesn't have the confidence to reduce rates. indonesia's sluggish economy, speaking to karishma vaswani, our
asia business correspondent. let's look at the markets and new record highs again on wall street, all three major us stock indices finishing at fresh records for a third day in a row after new data revealed growth in the us services sector hit a 12 year high and the dow stands at 22,661 and the nasdaq: at the numbers in asia now, the nikkei is up 31 points. the hang seng is opening in 35 minutes. thanks for your time, the hang seng is opening in 35 minutes. thanks foryourtime, i'm rico hizon, goodbye for now. despite the struggle with a cough and a security breach, theresa may made a series of policy announcements at the conservative party conference, especially on housing and energy. john pienaar has more. theresa may had a plan today, like putting a lid on energy bills
to show those feeling the pinch that she was on their side and try to get tory doubters back on hers. doubts about butting into the energy market, warnings that investment could take a hit, were brushed aside. this was about helping customers. the energy market punishes loyalty with higher prices. and the most loyal customers — the most loyal customers, are often those with lower incomes, the elderly, people with lower qualifications and people who rent their homes. those who, for whatever reason, are unable to find the time to shop around. that's why next week, this government will publish a draft bill to put a price cap on energy bills. it's become hard or impossible for many to afford a home or pay the rent. councils want freedom to borrow more money for building but the government says no to more public debt. today, the prime minister called it her mission to solve the problem, providing land for affordable
housing, and cash — not nearly the kind of cash councils and campaigners want — but more. for 30 or 40 years, we simply haven't built enough homes. as a result, prices have risen so much that the average home now costs almost eight times average earnings. and that's been a disaster for young people in particular. today, i can announce that we will invest an additional £2 billion in affordable housing, taking the government's total affordable housing budget to almost £9 billion.