tv Asia Business Report BBC News December 7, 2018 1:30am-1:46am GMT
because of doubts that there'll be a quick end to the trade war between the us and china. the worries have been aggravated by the arrest of a top executive from chinese tech giant huawei on an american warrant. there are fears this will further undermine us—china trade relations. meng wanzhou was detained in canada after an extradition request from the united states. it's understood she's accused of violating us sanctions against iran. beijing wants her release. and this story is trending on bbc.com. these are pictures of a space x rocket failing to land safely back on earth. it was returning to florida when it started spinning on its descent. it's guidance system directed it to splash down in the ocean. that's all. stay with bbc world news. and the top story in the uk: leading brexit supporters have rejected theresa may's effort to persuade them to support her withdrawal deal. she suggested mps would have a say on activating the controversial backstop on northern ireland.
now on bbc news, live to singapore for asia business report. to cut or not to cut? crude feels the pressure as major oil producers continue to wrangle over output production is to boost prices. huawei arrest rocks market, global share markets on a rollercoaster ride. attention of the chinese executive heightens trade war fears. it is friday, almost the weekend. good morning asia, hello world. glad you could join us. we start off with oil prices and they have been under pressure as some of the world ‘s biggest producers continue their crunch meeting, as you can see on
the board, they are starting to dip in mid—morning trade. ministers from opec and non— opec countries, including russia, are discussing whether to cut output in an attempt to stabilise markets and that would d efy to stabilise markets and that would defy calls from donald trump for action to bring down prices. our oil a nalyst told action to bring down prices. our oil analyst told us that the pressures from washington. i think if you look at the market situation today, there is some pressure coming in from the us. but oil prices are already down from where they were a few weeks back. i think there is left pressure. “— back. i think there is left pressure. —— less pressure. back. i think there is left pressure. -- less pressure. is there area certain pressure. -- less pressure. is there are a certain number where trump wa nts are a certain number where trump wants an oil production, or a reduction in oil output?” wants an oil production, or a reduction in oil output? i don't think he is looking for a particular number. the reason why this is taking more time is something else.
to cut or not to cut or push and not to push. the question is how much to cut and how does this is get spread? in your view, how much of a cut? in our numbers we expect between up to 1.2 million barrels per day. how this will be spread is something that has been discussed and russia we re that has been discussed and russia were played a key part in making a decision on how much. how keen is russia in this meeting which will be taking place today with non— opec members now that qatar will be pulling out of the organisation by january? pulling out of the organisation by january? russia is important. if you look at the cooperation with russia has provided is key in stabilising the market and slushy. russia has been saying they will still be co—operating, but the degree of production that they agree to is still uncertain and that will be discussed today. if there is a cut
of1.2 discussed today. if there is a cut of 1.2 million barrels per day, could this bring prices back up to $80 per barrel? we don't think it is possible with this 1.2 million barrels per day, but with expect that prices could reach around $65 per barrel in the first half of 2019. they will need deeper cuts to reach $80 per barrel because phonic jet we are seeing a surplus in all quarters. what about iran, how significant are they? the sanctions have been waived for now, but temporarily, we expect by may next year they will start again putting more pressure on iran. the arrest of huawei's finance chief has sent shock waves through global equity markets. asian stocks are regaining ground this morning after yesterday ‘s slide. let's take a look, the nick kay up by 0.5% and the all ordinaries three quarters of a
percent. the dow jones ordinaries three quarters of a percent. the dowjones had a slump before recovering late in the session. the nasdaq recovering by 30 points. i think people are starting to pay attention to this trade truce and moving forward, now that the us has arrested a senior company executive, from huawei, who has been in the cross ha i rs from huawei, who has been in the crosshairs of the us for some time. had been investigating the company for a while, two years ago they invested —— opened an investigation into it and now you are seeing the news of the arrest. all of this is a reminder that the us is pursuing the company for security reasons and making it very difficult for negotiations in this back. —— that drop, to move forward. it was a
rollercoaster ride on the stock market. you saw the markets tumbling more than 700 points in the case of the tower for more than 700 points in the case of the towerfor climbing more than 700 points in the case of the tower for climbing back to finish the session virtually flat. investors clearly feeling very fragile at the moment. our china correspondent told me how this is being reported in the mainland. at the moment, they are continuing with the line that there has been no justification continuing with the line that there has been nojustification for the arrest of her. that is because people have not heard these detailed reasons and we will hear more about that when she appears in court later today. but there is a more broad feeling in china, that this is quite strange. if the us was serious about this 90 day period, why would you do
something so inflammatory as to arrest this huawei executive? according to some analyst we're in china, the us isn't really serious about this 90 day period, they don't actually want to solve the trade war and in fact, actually want to solve the trade war and infact, if actually want to solve the trade war and in fact, if you take this to its logical conclusion, that the trade war is not even about the trade war. what this means is is that really this is that an attempt by the us, the trump administration, or at least some people within the trump administration, to use this crisis just to wind back chinese economic and geopolitical influence is. the german company leca, has an exclusive agreement with huawei to make their cameras at. their chief executive said they are monitoring this. we are monitoring this because we
are also in discussions with other companies in the smartphone business, but with huawei who are able to get a contract as they understood what we could bring to the table. if the trade war goes on, we will see what we do. huawei is the world ‘s biggest telecommunications maker. it also makes marco. these devices transform how we communicate. but the smart revolution is also a cause for concern for consumers. a recent survey revealed that more than 80% of people fear their data is not secure and about 70% worry their medical records will be compromised. an overwhelming majority say brands are responsible for their own ethical use of technology. i was told how people are responding to new technology. i think we have to step back. there is very high expectations from consumers that brands will continue to use technology to innovate and make products and services more accessible. however, the trade—off
is we are seeing highly visible data breaches, fears of consumers that their mobile devices are listening to them. we are even seen fears from consumers that they might be run over by an autonomous vehicles at the there is a tug of war happening between humanity and technology, where brands can come in and mediate that dispute, helping to alleviate the fear and make sure innovation is enterprising and consumer specific. but consumers are not against in innovation? they are not. but they are not aware of the trade—off. in user agreements, how many consumers are reading is at agreement and understanding than? instagram has a user agreement that runs 1a pages, single space. nobody is reading that, when a consumer opts into that artform, they are not aware of both the risk and reward of the technology. consumers in our study are saying, 90% of them across the markets that we do the study are
saying that we will start holding the brand is responsible for ethical and responsible innovation. they are not going to hold a platform responsible and will not hold the technology responsible, so brands are in the middle of the debate. some major issues now regarding the chinese teller communications operators. why is their mistrust amongst western nations to work the chinese teller communications suppliers? that is a political question and much better to talk to the us government and the chinese government about. there is obviously fears about z te and huawei as well, that i suspect may be a little bit more politically motivated that they are consumer driven. moving to other business news making headlines, japan's softbank and uk mobile phone operator o2, japan's softbank and uk mobile phone operator 02, said tens of millions of their customers were unable to use data due to a good software made by ericsson. in japan, use data due to a good software made by ericsson. injapan, all services have been restored at restored but shares fell as much as 6%. in the
uk, 02 and ericsson have issued a joint apology, giving assurances that a full—service would be restored by friday morning. and that is it for this edition of asia business report. thank you for investing your time with us. that forget to follow us on twitter,. sport today is coming up next on bbc world news. thanks for watching. this is bbc news. the top stories this hour: there's been a modest recovery on asian stock markets, despite new concerns that the trade war between the us and china could be heating up again. the worries have been aggravated by the arrest of a top executive from chinese tech giant huawei on a warrant from the united states. two former directors of tesco have been cleared of committing a £250 million fraud after their 8
week trial collapsed because of a lack of evidence. they were accused of orchestrating a false accounting scandal which saw the supermarket chain overstate its profits four years ago. one of the directors charged said it should never have gone to court. andy verity reports. you must be relieved? the former head of commercial food at tesco, emerging from southern crown court, where a judge threw out the case against him. can you say anything? not at this stage. he hasjust been through four years of hell being prosecuted for a fraud in the case that a judge has now ruled that should never have been brought and the court of appeal has upheld that. in september 2014, tesco revealed it had overstated its profits by a quarter of £1 billion. its share
price plummeted. tesco was due to get income overfive price plummeted. tesco was due to get income over five years from suppliers in exchange for stocking and promoting their goods on each shelves. it had been pulling forward that future income as if it had all been paid in year 1. the pressure to do that came from the top, according to thejudge. he found there was insufficient evidence to show chris bush, seen here, and john scouler, knew it was improper and unlawful. to reach this stage, four years of his life with this hanging over him, is a terrible ordeal. for a judge to recognise at the end of that period that there was not enough evidence to bring this prosecution. the serious fraud office said, "we were content there was sufficient evidence to proceed and that the public interest was met in doing so." tesco, the firm, has admitted responsibility for false accounting and paid a fine of more than £120 million, but today it is far from clear who was to blame. andy verity, bbc news. more than forty people, convicted of drug—driving,
have been cleared following an investigation into the manipulation of evidence at a forensics lab. the motorists were banned from driving and in some cases fined. about 10,500 test results are being reviewed after allegations emerged last year against scientists at a private contractor. now on bbc news, sport today. hello, i'm sarah stone and this is sport today, live from the bbc sport centre. coming up on this programme: india are all out for 250. how will australia's batsmen respond in the first test? kane williamson hits out to overshadow yasir shah's day. and more than 2,500 police officers will be delpoyed on the streets of madrid ahead of the copa libertadores final. on the streets of madrid ahead of the copa libertadores final.
hello and welcome along to the programme. we start with cricket, and they're approaching lunch on day two of the first test between australia and india in adelaide. cheteshwar pujara's century helping india recover on day one, before they were all out for 250 in the morning session on day two. it's a test now for australia's new—look top order. chris mitchell is there for us live at the adelaide oval. chris, how is it all going over there, how's it looking? well, in the last few moments, india have got a much—needed wicket. 45—2, australia, as it stands. debutant marcus harris, one of the openers, out, caught off the bowling of ravi ashwin. i say it's a much—needed wicket because harris and usman