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tv   Asia Business Report  BBC News  December 20, 2018 1:30am-1:46am GMT

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our top story: president trump announces the total withdrawal of us troops from syria. the decision by the white house to pull out all of the remaining 2,000 american personnel is being criticised widely by republican leaders. the pentagon has also expressed its reservations. the us central bank, the federal reserve, has raised interest rates for a fourth time by 0.25%. the decision comes in in the face of warnings by donald trump that it would be a mistake. and this distinctive style of art might be familiar to you. it appeared on a garage in the welsh town of port talbot and has been confirmed as street art from banksy. worth more than the building it was painted on, it has now been fenced off to protect it. that's all. stay with bbc world news. and the top story in the uk: the government has set out its immigration policy for the uk after brexit. ministers say it will be skills that
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will determine applications. now on bbc news, live to singapore for asia business report. shares in softbank‘s mobile unit are falling for a 2nd day, now down more than 20% after a disappointing debut on the tokyo stock exchange. and asian and us markets plunge after the federal reserve raises rates for the federal reserve raises rates for the 4th time this year. good morning and welcome to asia business report, live from singapore, with me, mariko oi. live from singapore, with me, mariko 0i. let's start with japan's biggest share listing, because shares in the mobile unit of japanese technology giant softbank have open for their
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2nd day of trading and they are down by as much as 8%. yesterday they slumped by 14.5% on their market debut. analysts like mark einstein point to a number of reasons for the fall. the government's pressure on telecoms companies to cut prices for their customers and the cost of new equipment in the wake of the huawei scandal. i think the new issues on the market pushing the price down even further, as you mentioned, the government thinks that telecom ta riffs government thinks that telecom tariffs might the 40% to higher in japan. they don't want carriers to subsidise phones, which could also affect usage, and the fact we will not be able to use chinese equipment injapanforsg not be able to use chinese equipment injapan for 56 and ag not be able to use chinese equipment injapan for 5g and 4g networks means that margins are going to be squeezed and tariffs might go up further than anticipated. how low can it go? i sawi analyst saying possibly 800. i think that the low y1000 is quite possible. we will
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have to see how that plays out in the coming days but i would agree that it's possible. so 2 weeks ago, softbank‘s mobile service had huge disruptions affecting a lot of customers, and softbank even admitted it lost over 10,000 customers within 5 days of that. do you think that scared some of the retail investors? so that might have scared people off although to be fair that was the fault of the vendor, not really softbank‘s fault, and they're very well might be a lawsuit from softbank are against that vendor. that same outage happened in the uk, so they might seek to recoup some funds. so that might have made people a little jittery, but i don't think that is 1 of the main drivers right now. do you think softbank‘s parent company, do you think they care about this shortfall? they did in the end raise all the money. yes, absolutely, softbank have major plans, they also
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have a lot of debt, and this ipo was really engineered to help pay off some of that debt. and of course, you know, to continue their global shopping spree of tech companies. mark einsteinjoining shopping spree of tech companies. mark einstein joining the earlier from tokyo and the rest of japanese markets are also trading lower, down by almost 1%, because america's central bank has raised the cost of borrowing, despite president trump's repeated tweaks urging them not to and just as the president feared, shares fell on wall street as well to the lowest levels of the year. they are in fact on track to have the worst december since 2009. the bbc‘s north america business correspondentjoined me earlierfrom outside the federal reserve and explained what the fed's chairman said. has been growing concern lately about the state or the strength of the us economy. now, those inside the building behind me are those inside the building behind me a re clearly those inside the building behind me are clearly of the view that the
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economy here is still strong, that the expansion continues, that the jobs picture is improving. and as a result of that, they raised rates not just today, but they also projected 2 more rate increases this year. it is really a vote of confidence, if you like, in the strength and the health of the us economy. it is now 100 days until brexit and preparations for no deal are fully under way in the uk and in the eu. mps are due to vote by 21 january next year on the prime minister's deal to leave the european union, and of course, all of this comes ahead of the deadline for the uk to exit the eu on 29 march 2019. what i want to show you what happened in parliament earlier, because their mood has been very tense. i know it is the christmas season and the pantomime season, but what do we see from the labour front branch and the right honourable gentleman? he is going to put a confidence vote, oh yes he is. oh no
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he isn't. i have some news for him. i have some advice for the right honourable gentleman. look behind you. they are not impressed, and neither is the country. you might be wondering whatjeremy corbyn said there. some thought he said stupid woman, which he denies. 0ur there. some thought he said stupid woman, which he denies. our global business adviser says the debate has clearly grown to a fever pitch. jeremy corbyn is a very soft—spoken man, soi jeremy corbyn is a very soft—spoken man, so i very much doubt that he used the word stupid but if you wa nted used the word stupid but if you wanted a word to describe the last three years of conservative conduct, stupid is not a bad one, actually. three years of conservative conduct, stupid is not a bad one, actuallylj wa nted stupid is not a bad one, actually.” wanted to mention that you were on the policy forum which put together david cameron's manifesto back in 2015. the critical thing about that is that racks that was not discussed once in the run—up to cameron's second election, so it came as a
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com plete second election, so it came as a complete surprise and we are really seeing the results of that complete lack of planning ever since. so what will happen next? there is a lot of talk about a second referendum. the conservatives do not want a second referendum. if, heaven forbid, there we re referendum. if, heaven forbid, there were no brexit option and if that we re were no brexit option and if that were to win, that would make the last three years seem like a colossal waste of time and it would indicate that the conservatives have led the uk down a cul—de—sac. so what she will be looking to do, and is doing, is frightening people into accepting her deal by holding out the prospect of a no deal brexit and talking about calling out the army and stock piling pharmaceuticals and food, things guaranteed to make people panic, in the hope that at the end of the day party loyalty will prevail and the 100 mps who have said they will vote against her will vote for her, and the deal will get through. let's catch up with our tea m get through. let's catch up with our team in india, as the country reaches a new milestone which is out of this world, quite literally. its
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space research 0rganisation of this world, quite literally. its space research organisation has launched three satellites in just 35 days as the indian government prepares to set up a special defence agency to help its armed forces. 0ur business reporterjoins us live from delhi. how is india developing its space technology? well, this is the third satellite which will help india develop its communication technology in this space for the defence forces here. and india is pa rt defence forces here. and india is part of the $120 billion space market. it is trying to improve its credibility there. right now the leaders are the us, russia and france, but india is slowly catching up. currently it has just over 0.5% of the market. there have been a number of launches in just this year itself, as india is trying to improve on the cost effectiveness of the satellites that are launched on
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this side of the world. india says they are cheaper. it also says that they are cheaper. it also says that they are cheaper. it also says that they are able to not only launch, but also build and sustain communication in outer space, and this seems to be a growing so. on the other side, many have criticised india for spending the billions of dollars in space research when a quarter of its population is in poverty. thank you so much for that update. let's bring you up—to—date with other business news making headlines this morning. elon musk has unveiled his underground tunnel, two years after complaining about los angeles traffic. it is only one mile long at the moment but the goal is to build a network to ease chronic traffic congestion. modified electronic cars would be lowered into the tunnel and travel at speeds of up to 150 mph. singapore's central bank has banned a goldman
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sachs director for life after he admitted two charges from the justice department. the charges relate to malaysian state 1mdb. —— state fund 1mdb. he pleaded guilty to charges including conspiracy to commit money laundering and malaysia has formally filed charges against goldman sachs and its employees earlier this week. before we go, let's recap some of our top stories this morning. shares in the mobile unit of japanese technology giant softbank have opened for their second day of trading and they are down by as much as 8%, dragging the rest of the nikkei down as well. yesterday we saw a sharp fall of 14.5% on their market debut, so now they are down by 20% or even more. as our analyst was telling us earlier, investors are starting to get a bit nervous about the
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company's get a bit nervous about the compa ny‘s outlook, but get a bit nervous about the company's outlook, but whether or not the parent company really cares is another question. all the other asian markets are also lower, and thatis asian markets are also lower, and that is because they are basically taking their cue from wall street, as well, after the federal reserve raised the cost of borrowing for the fourth time this year. the last rate hike, of course, was back in september. the federal reserve seems to indicate there will be fewer rate hikes in 2019. all the wall street markets are down sharply, in fact they are now on track for the worst december since 2009. that's it for this edition of asia business report. thank you so much for watching. this is bbc news. the top stories this hour: us forces are being withdrawn from syria following president trump's declaration of victory over islamic state militants. the european commission says it has started to implement its preparations for a no—deal brexit. it appears it doesn't pay to be loyal.
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it turns out that millions of people who stay with companies for insurance and mobile phones for years are actually losing out. simon gompertz reports. the loyalty penalty can grind off your hard—earned cash without you noticing. nick, near doncaster, found he was paying more than £1,000 a year more than he needed to for house insurance. we were paying {1,929.82 a year. loyal for 21 yea rs, the cost had tripled. shopping around got him a policy for less than £500. i think it's despicable. it's an easy way for them to make more money, so they'lljust constantly put the price up, year after year after year. and they assume that if people aren't making complaints, and they're not chasing it up, then it's a safe bet for them. insurers say they're taking action against the loyalty penalty.
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the provider santander explains nick made claims, though he says he only ever got £200. two strawberry, now £1. two blueberry, now £1.50. at doncaster market, nearby, such explanations from insurers, also mobile phone and broadband providers and banks, get short shrift. well, i think it's a disgrace, actually, because i think loyal customers should get treated better. it'sjust outrageous. it should be the other way round. what would happen to you if you charged your loyal customers more than someone who just came in for the first time? i wouldn't last two minutes. i'd be bankrupt. so the competition watchdog is targeting companies who introduce price rises by stealth, or impose costly exit fees from deals, plus those who put up barriers to switching or cancelling, and make you auto renew to get a deal, then roll it over at a higher price.
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it is an issue which infuriates people, because it seems unfair, it seems underhanded, that prices should be allowed to creep up without you knowing. and it happens because big businesses are allowed to charge their long—standing customers more. so how to protect people? today, we're promised there will be court action against the worst perpetrators, and caps on excessive prices if they're needed. simon gompertz, bbc news, doncaster. now on bbc news, sport today. hello, i'm tulsen tollett and this is sport today. live from the bbc sport centre. coming up on this programme: former player 0le gunnar solksjaer is confirmed as the manchester united caretaker manager until the end of the season
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gareth bale scores a hatrick to send real madrid through to the club world cup final where they'll face hosts al ain. and major league baseball have agreed a deal with their cuban counterparts that will see players able to freely sign for north american teams. hello and welcome to the programme where just a day after sacking jose mourinho — manchester united have named former player 0le gunnar solskjaer as caretaker manager until the end of the season. solskjaer spent 11 seasons at old trafford, scoring the winning goal in the 1999 champions league final — and takes over with united sixth in the premier league. our sports correspondent andy swiss has more. it girls


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