tv Newsweek South Asia PBS October 3, 2013 11:30pm-12:01am PDT
us live from kuala lumpur. the chinese president wrapped up his visit to indonesia where he met with the country's president and business leaders. both countries signed deals worth more than $28 billion in mining, manufacturing, and also energy. xi address indonesia's parliament in his first speech ever they're made by a foreign leader. he discussed trade and relations. >> china is willing to work together with indonesia and other asian countries to be good neighbors, friends, and partners who share danger and safety and sale in the same boat and jointly build a closer china-as ia community of common destiny. >> officials say they hope cooperation with china will help boost the economy there. tourism is a big part of indonesia's economy as more chinese tourists are visiting that country every single year. our correspondent sat down with the indonesian tourist minister about this trend. >> of course, china right now is
one of the biggest tourism markets in the world. it is about $400 million -- $80 million a year. at the moment, we are only receiving about 700,000, 800,000 a year. china is also -- is the biggest market in terms of expenditure. i think lester, it was 102 billion dollars and expenditure by chinese tourists. we feel that china is a very important market for us. it is also the highest growth market for us. >> that was indonesia's minister of tourism speaking to our correspondent in jakarta. coming up, much more on the impact of the u.s. government shutdown, especially on companies trying to list on the u.s. stock exchange. plus, we will look at twitter. it is moving on its ipo. find out why the market is not going for the social media giant, even though it has never
turned a profit. >> i'm checking her top stories. a dramatic scene caught on video in washington. a car rams into a police barricade outside the white house. it is chased, surrounded by officers with weapons drawn, backs into more please cars in the capital, speeds away, and police opened fire. by the time it is over, the female driver is killed. a one euro child is taken from the car unharmed. the woman was not armed. the motivation for this incident, still unclear this evening. the shooting came as much of washington was focused on the u.s. government shutdown, now in its third day. parks, museums, and many government offices remain closed. some 800,000 federal workers have been told to stay home. democrats and republicans show no signs of reaching agreement on a budget.
a grim scene off the coast of italy following the capsizing of a boat packed with hundreds of african immigrants. the viper is talk of a fire on board that prompted passengers to throw themselves overboard. most apparently were unable to swim. the death toll has reached 130 and is excepted to climb higher. hundreds of migrants remain unaccounted for at this hour. those are the top world headlines. "biz asia america" continues right now. >> "biz asia america welcome back to -- welcome to "biz asia america." >> in washington, d.c., i am phillip yin. these are your top headlines. the pentagon has pumped $5.5 billion into 94 contractors' bank accounts of the day before the u.s. shutdown. it covers everything from robot submarines to the air force
academy's new jim. it is a big deal. regulators say an analyst leads research on an apple supplier to sac capital full day early so other people can benefit. south korea's foreign reserves also rose to another record in the month of september. this after it sold $1 billion worth of u.s. bonds. we will have much more on the ipo situation with tracy tandon in new york. >> that's right. twitter has unseal the documents for its planned initial public offering, and the social media company says it hopes to raise up to $1 billion. since twitter was created in 2006, it has actually never turned a profit. but on the brighter side, the company does say that revenue is growing. the big question on everyone's mind that remains unanswered is, where will twitter list? twitter digg say it plans to use the ticker symbol twtr.
twitter's path to an ipo should move rather quickly. there are so many unanswered questions. tuning me here live on the set is a respondent to as been following the story all day. -- is our correspondent who has been following the story all day. think you for joining us. sam, i want to start off with you. you have been going through the 300-something pages of this document and what are some things that really stood out for you in twitter's public filing? >> overall, we were very positive about twitter's ipo going into this release. we felt a little bit disappointed. it is like as if we were dressed for a black-tie affair, and we showed up, and it was a frat party. you open up and you see losses after losses. you see all these expenses they really should not be having for such a simple service. overall, it is one of disappointment. >> you were a little let down.
what about you, lily? >> i thought what was really revealing was the revenue and net losses. revenue we saw for the full year 2012, about 370 million dollars. in the first half of this year, it was already 250 million dollars. clearly, something is working. a lot of that growth came from mobile advertising revenue. really discouraging was net losses. that grew in the first half of the year by 40% from last year. kind of worrying. i think investors will be looking to see if twitter can sustain its growth and turn a profit sooner than later. >> one of the things that did, was the fact that they are going to raise $1 billion. if that in line with expectations -- is that in line with expectations ? >> i think that is a floor. they will go public. most ipos sell about 20% of the company. if you do the math, you're looking at $3.5 billion in an ipo. one of the biggest of the year.
his is a big ipo. it is a lot of stuff to digest. >> one of the things that we did not get out of the prospectus, which i think everybody was waiting to find out, is aware will twitter list? right here at the nasdaq or the new york stock exchange? where do you think it will be? >> twitter has not made a decision yet. it does suggest that perhaps nasdaq has a stronger fighting chance then we all thought. a lot of people were betting on the new york stock exchange, particularly because of nasdaq apostates that fiasco, the trading which we saw in august. -- the trading glitch we saw in august. has that has more to lose. -- nasdaq has more to lose. we are seeing a shift among ipos. >> six years ago, the new york stock exchange had only 16% of u.s. tech ipos. 94% to nasdaq. so far this year, it is three to two.
40% on the nasdaq. that is since the eye -- the facebook ipo flop. i think on wall street right now, people are saying, no one ever got fired for choosing the new york stock exchange. now we are thinking the fact that they have an -- they have named the exchange, -- haven't named exchange, nasdaq has a fighting chance. >> which means there are going to be a lot more comparisons to facebook. what will twitter's ceo dick costolo do versus what mark zuckerberg did? >> one thing he will not do is go on the rich are doing a hoodie. what are the differences that we are going to see between the two ipos? >> just the professionalism of the ce. dick costolo is a real professional.
i have always said that mark zuckerberg is in over his hoodie. i think he is. dick costolo is very familiar with the process. i think that is number one. in general, twitter knows what all of the mistakes facebook made. they are taking facebook's playbook for the accurate. >> less hype. there hasn't been much hype. >> they have managed to lead up to this very well. it clearly shows they are being very cautious about their ipo, taking all sorts of precautions here. >> confidential filing. everything very hush-hush. >> i want to talk about the timeline. we have the public prospectus out for everyone to see. what next? when are these shares going live? what sort of time i'm looking at? >> we have 21 days. that is what investors can go over the information, absorb it, make informed decisions, and
then stay up all night. then the roadshow comes after that. it could be shorter than the usual rotor. twitter is a familiar name all right or -- already. twitter presumably wants to get ahead of the thanksgiving season, get ahead of the holiday season, and also get way ahead of the other big ipo, alibaba. >> which will be an enormous ipo. >> good timing for twitter? >> even for twitter, they will not move christmas. twitter has to ipo november 8, that friday. that is our bet. >> we have until november 8 to buy those twitter shares. >> yes, that is when you have to get your bids in. i would recommend -- we don't normally say buy or sell, but i think after christmas -- i think waiting for an after christmas sale on the and. >> thank you for joining us to talk about twitter.
>> there is the music. welcome back. it is time for our tech focus. tesla, there is trouble ahead. the electric car maker is struggling with a public relations nightmare after this video of a burning car went viral. tesla shares were hounded over the last two days. the company lost over $3 billion in market value alone. the battery in the car caught fire after it ran over something metal-related in the city of seattle.
amazon.com has plan to jump into the video streaming market with its own device. this, according to "the wall street journal." the gadget would compete with devices such as apple tv. amazon has not said when they would release the set-top box. china's ali baba has raised $50 million to invest in a u.s. tech company. the company's signature software is a search engine for astrid alibaba will get a seat on the u.s. company's board. the deal highlights ali baba's bid to expand its influence in selecting valley. we are now going to continue on with our tech focus. we will focus on the city of kansas city. a new generation of startups has found a unique place to call home. it is a far cry from silicon valley, but mark newstead by two c -- mark newstead by to see what it was like in kansas city. >> what do you guys have? >> the fiber house.
>> three printing startup -- 3-d printing startup handprint decided to join kansas city start of vision. -- village. >> this is our living room. we have writable. we've got big computer screens. >> visiting at 1:00 in the afternoon may be a little early. >> he was up until 3:00 a.m. working on some code. coding is really like an art, right? you only have so many hours of productivity a day. if you are really into what you are working on, it is nice to just keep going into the next day good >> another big reason handprint came to the village is free access to google fiber, which provides internet speeds 100 times faster than traditional connections. >> we had like 200 tabs of and. it is just crazy to have
internet at the instant like that. it is an entirely different experience. >> a new upstairs office is in the works. while friends on the coast still question why they are running a startup in kansas city, handprint says it is not only giving them resources, but the advantage of midwestern hospitality. >> in austin when you set up a meeting, they will spend 1520 minutes with you, and they will be looking at their watch. here, you set up a coffee meeting, and it drags on for an hour and a half, which is wonderful. >> you get introduced to people with one line e-mail intros. those meeting sometimes go five hours long. it is just incredible value. >> handprint isn't the only out- of-town startup setting up shop on this famous street. most of the homes in the kansas city star village are either undecided the street or on that side of the street. it is somewhat ironic because this is on a state line. i am now in kansas city, missouri. if i walk across over here, i am still in kansas city, it is
kansas city, kansas. inside this special phone, a startup with eye-opening elements. this is uranium. we are assured the amount is safe. it is the latest startup to stay in this house for three months, rent-free, through an ongoing program. access to blazing fast google fiber speeds. one hacker recent greeted the curious fbi agent at their door. >> i told him, by the way, i have some uranium front. his reaction was like, oh no! i wish you had not only that. i was like, no, it is cool. we got it off of amazon. it is cool. we promise we did not break any laws. >> it is not a group of undisciplined hackers read they go to bed by 10:00 p.m. and are up by 6:00 in the morning to do
what is called the insanity workout. these hackers even follow a strictly meets investable side. >> i've lost almost 50 pounds since i got here. >> how about yourself? >> i've lost almost 60 pounds good when i first got here, i cannot run a block. >> homes for hackers and kansa city have given the syrup a surge of energy. >> cutting our rent bill out for three months for three people, that is very important to us at our stage in our business. it has allowed us to focus full- time on development and marketing. everybody wants to help out. they hear about something, and they are thinking about you. you should make this connection which is person. >> the man who started the homes for hackers program is just a regular guy with a salaried job. >> i ended up liquidating a retirement account to fund the down payment on a house for other people to live in for free. i get the question a lot, why aren't you taking equity in the startups?
these guys, they just need a hand up. they are just bootstrapping it. >> merry christmas, follows. >> this genuine hospitality is what they say makes homes for hackers and kansas city unlike any other startup environment in the world. mark new, cctv, kansas city. >> it looks like college life. coming up next, we will have the latest on asia's market openings in their reaction to what is happening here. plus, three times is the charm in the philippines gets another credit rating upgrade. this time, from movies. we are back in just a moment.
the shutdown of the u.s. government. the picture in europe appears to be getting a little better. recent data shows that retail sales in the eurozone are on the rise. k parkinson takes us there. >> retail sales figures are an important barometer of economic confidence as they show that consumers are more willing to spend rather than save, despite factors such as high unemployment and government- imposed austerity measures. they are also a major component of growth. the data that retail sales across the eurozone have risen by 7/10 of 1% in august, up from the previous month, is particularly encouraging. the august increase added to the previous months 0.5% rise, itself reside -- revise higher. it came above market expectations.
also on thursday, data released to the financial information company market found that business activity across the eurozone rose in september at its fastest pace since the summer of 2011. market says it's purchasing index, which is a broad gauge of business activity across manufacturing and services sectors, rose to attend -- to a 27-month high. the figures echoing recent findings that a eurozone recovery is taking place after the single currency emerged in the second quarter from the longest recession in its near 15-year history. kate parkinson, cctv, paris. >> these are your top stories that we have been following grade the u.s. treasury department says the economy may be facing a downturn worse than the last recession, this congress does not raise the debt ceiling.
the u.s. will run out of borrowing power on october 17, and after that, the treasury -- the treasury says the government will only have around $30 billion left of cash on hand to pay its bills. twitter has unsealed documents with its initial public offering. the company says it hopes to raise $1 billion for its ipo. it did not specify which exchange it would list at, but the ticker symbol will be tstwt. we are also watching chinese president xi jinping who is now in malaysia, a part of the southeast asian trip. this is his first visit to the region and he took office in march gradexi was in indonesia where he signed a series of economic agreements. xi will travel to the apex summit, this year held in indonesia. let's get a check on asian markets. hi, serena. >> well, while president barack
obama is exasperated, in his words come over the gridlock, asian markets have broadly shrugged it off grid markets closed mixed in the previous session. today, hong kong's hang seng is lower, along with japan and australia's market could markets will be eyeing hsbc services pmi, which will provide a clearer picture of the state of china's economy. china's services industry so far has weathered the global slowdown much better than the factory sector. three times the charm for the philippines, which was once called the sick man of asia. all three major rating firms, standard & poor's, fitch, and now movies, have given the country's debt a thumbs-up. moody's has upgraded the country's sovereign debt to investment grade. the philippine stock exchange has had a remarkable year. it is up nearly 10%. analysts say the upgrade will be even better for markets because investors with a stricter mandate will not be allowed to park money in the philippines.
today the philippine stocks are lower by about 6/10 of 1%. in regional company news, south korean tech giant lg electronics lance -- plans to introduce smartphone with a curved screen. this comes after samsung electronics planned to unveil its own curved smartphone. clearly, the battle between the two korean tech giant is heating up. i am still quite happy with my phone. >> rick scott, serena. thank you very much. tourists and travelers have quite a lot of choices when it comes to deciding which places to visit during the seven-day national holiday. the forbidden city has always been a big place for people to visit. our correspondent was there to see what it was like during this holiday. >> large, slow-moving crowds, heading towards the palace museum. also known as the forbidden city, it has been the home of emperors of many dynasties and
world-famous as a tourist destination. massive numbers of tourists come to visit the palace museum everyday. during the golden week holiday, the flock of tourists is extremely huge. according to the statistics, yesterday on october the seventh, the total volume of tourists reached 175,000. the ancient architecture and imperial treasures here have always attracted visitors from home and abroad. the massive swarm is impressive, but it also brings with it a fair share of inconvenience. >> it is very difficult to buy a ticket. i came here yesterday to try to buy one, but could not. >> we will have to figure out if it is worth the time or if we want to do something else and then come back maybe tomorrow or saturday. i don't know. i don't think the cross will be any less. >> museum authorities on their part have taken measures to tackle the congestion with a set of contingency plans to improve the service system.
>> there are now more than 30 ticket outlets, compared with 16 before. for the first time, we have launched a security mechanism with more troops and firefighters to keep people safe. >> some say the tourism peak during this year's national holiday is partially due to china's first tourism law, which was implemented on october 1. since the new tourism law enforced goods purchases, overseas tour packages and prices have gone up. many are choosing to take cheaper options within china. in this case, managing huge crowds across the country might become a daunting task. cctv, beijing. >> it is almost 57 patty ordered one of wall street's most notorious characters, he is the bad guy.
bernie made off sold apartment is being put up for $770 million -- for $17 million. madoff will be remembered for his defrosting of billions of billions -- billions and billions of dollars from investors. for tracing tendon, i am cash for tracy tandon, i am phillip yin in washington. we will see tomorrow.