tv Asia Business Report BBC News February 5, 2018 1:30am-1:46am GMT
a delegation to south korea on friday at the start of the winter olympics. his trip is being seem as a potential diplomatic breakthrough. and earlier, a joint north and south korean women's ice hockey team played together in a landmark sporting collaboration. they were beaten by three goals to one by sweden. and there are reports that president jacob zuma of south africa has refused to step down at a meeting with senior anc members. he is under pressure to hand over to cyril ramaphosa. and this story is attracting massive attention in the us and around the world. the new england patriots are taking on the philadelphia eagles at the 52nd super bowl. if the patriots win, they'll claim a record—equalling sixth title. and that's all from me for now. stay with bbc news. and the top story here in the uk: a downing street source has insisted
that britain will leave the customs union after brexit, the system which means countries in the eu impose the same import taxes on goods coming into the bloc. donald trump's nominee takes over at the us federal reserve. will monetary policy had in a new direction under his leadership? and to boldly go where no mayor has gone before: in indonesian city official looks to star trek to lead his city into the future. good morning asia, hello world. it is a monday. glad you could join us for another exciting addition of asia business report. i am exciting addition of asia business report. iam rico exciting addition of asia business report. i am rico hizon. exciting addition of asia business report. iam rico hizon. we exciting addition of asia business report. i am rico hizon. we start off with the us central bank, and jerome powell, you see on your screens, jerome powell, you see on your screens, is said to be sworn in as
the new chair of the federal reserve , the new chair of the federal reserve, replacing janet yellen. by nominating him, donald trump river wey from tradition, as most us presidents have chosen to appoint the same chair in their first year of power. the bbc has more from new york. donald trump's pick for the job, jerome powell, is the new chair of the us federal reserve. but why is is such an importantjob, and why should it matter to you and i? welcome at the federal reserve makes decisions that into a great scholar keystone employment and inflation in check, and can step in and protect the economy, like it did to the globalfinancial the economy, like it did to the global financial crisis. the economy, like it did to the globalfinancial crisis. but the economy, like it did to the global financial crisis. but what jerome powell does can have far reaching effects the old american shores. we are raising interest rates now because the economy is strong. if we wait too long, the
economy could overheat, would have to raise rates. the best way to sustained recovery, i believe, is to head on this path of gradual rate increases. raising rates here are the us could mean that investors could prefer to put their money here, taking it away from other parts of the world. america is considered a safer investment destination than, say, an emerging economy. after the 2008 global financial crisis, which generated cows hereon on wall street, the federal reserve introduced strict rules for banks to ensure the safety of the market. there has been talk of the market. there has been talk of easington that regulation, now. and some people working here, in manhattan's general district, would be keen to hear whatjerome powell has to say about it. it is not helpful for banks to waste money, to spend more than a reasonably need to spend, to achieve these results and objectives. those costs will fall on customers. on most fronts, he is on
the same track as janet yellen. she lives with the economy in pretty good shape. it is growing steadily and employment and consumer confidence in the best they have beenin confidence in the best they have been in about 17 years. what we expect from drawn powers more of the same. the markets are expecting a minimum of two rate hikes this year. i think we might even see three, because we are starting to see an acceleration in employment and wage growth, which are starting to pick up. inflation will eventually pick up. inflation will eventually pick up. soi up. inflation will eventually pick up. so i do think that you will see three. but jerome powell how to navigate through uncertainties caused by the tax bill, and america's latest train announcements, to ensure that the index stays in the green, and people here remain happy. you get an lie, bbc news, new york. —— yogita limaye. i am joined bbc news, new york. —— yogita limaye. iamjoined by bbc news, new york. —— yogita limaye. i am joined by my colleague monica miller. this is not looking
good. investors are rattled in this pa rt good. investors are rattled in this part of the world. as you can see here, australia's major index is down 1.4% already this morning. the nikkei is down 2.2%. dow futures are down more than 200 points to. all this kind of comedy snaps are a reaction to friday, when the two major index in the us is that there winnie street. this came out because of data about wages in the us, which is ata of data about wages in the us, which is at a record high. —— winning streak. these are the highest levels ina long streak. these are the highest levels in a long time, and the concern is whether or not the us will have to increase three times, notjust for, as they had promised, so at this point, one analyst says it could be pa rt point, one analyst says it could be part three us correction, and there may be more time for the indexes to
drop. and that probably most equity markets will be impacted by this. and with the dow futures lower by 200 points, it is a bad sign when wall street reopens for a later today. monica miller, thank you for that update on the asian markets. ca rs that update on the asian markets. cars will also be in focus this week. we will be getting a snapshot of how wealthy sector is faring when the major japanese carmakers unveiled a corporate earnings. today, mitsubishi reports, after sales last year. next it is toyota, which has seen an increase in demand for pickup trucks. 0n which has seen an increase in demand for pickup trucks. on thursday, it is ms ardern, we said that its sales in the us were up 10% injanuary. —— nissan. i asked in the us were up 10% injanuary. —— nissan. iasked howjapan's carmakers will fare this season. as we head into the order season this year, we will be looking at how the automakers will be contending with
the slowdown in there to biggest markets. the us market and the chinese market. those are the big anchors and driving forces for the japanese. but this year, the us market is expected to decline, and the chinese market is set to slow dramatically. what about cost pressures on brawl materials, and skyrocketing research and development investments? will there also impact the bottom lines of japanese automakers? yes. that is another issue coming into play. they will be pitched at both ends. costs are rising in some ways for the material. and at the same time, they need to spend more for investment in these new technologies that are becoming the forefront of the industry. we are talking about time as driving, rectification, connectivity of the cars. that is all demanding huge investments from these companies, and it is all coming ata these companies, and it is all coming at a time when sales are
beginning to slow. and that was hans grimel joining beginning to slow. and that was hans grimeljoining us on the japanese carmakers that will be reporting their earnings this week. moving now to indonesia, and the mayor of bandung is driving a vision for his city. his goal of turning it into a technology capital has led to heavy investments in technology and credit indices. some projects include building a star trek inspired command centre, and free public wi—fi across the city. —— technology and creative industries. we said a cross bonded to go see how this could become one of asia's silicon valleys. architect and mayor of bandung was
inspired by star trek when he designed this command centre, with the idea of using technology to better serve the people of bandung. we use technology to make everything better, and suddenly, everything is in place. i am very happy. this is my legacy. —— architect and mayor of bandung, ridwan kamil. the recipe of silicon valley is it you need to have the university is close to many areas. people forget that without the size and the education system and university, you do not get that of energy. —— universities close.
its goal to become one of asia's silicon valleys. that is it from asia business report. thank you for investing your time with us. please follow us on twitter. sport today is up follow us on twitter. sport today is up next on bbc news. the top stories this hour: north and south korea thaw relations on the ice rink with a single, united women's ice hockey team, playing ahead of the winter 0lympics. there are reports that south africa's president jacob zuma is resisting calls to stand down. mps have warned that custody royal
marines could significantly weaken the british defence systems. —— that cuts to the. the government, which is reviewing defence spending, is said to be considering axing two thousand marines and the royal navy's two amphibious assault ships. daniela relph reports. it is a warning to government over the future of the royal marines. they are among britain's elite fighting forces and provide up to half the personnel for the uk's special forces. the defence select committee report says that further cuts to the marines would damage their ability to be a high readiness unit. and warns plans to end the use of hms albion and hms bulwark — ships from which beach assaults are made — would be militarily illiterate at this time. the committee praises the defence secretary, gavin williamson, for taking control of a defence review. he is under pressure to make cuts against the strong funding cases being made by other government departments, but also faces arguments from military chiefs that defence must be a priority. since 2010, our military has been
cut by a third in its capability. if this new round of cuts come, it will have been cut by half. can you imagine if we had half the number of hospitals? spending on defence has fluctuated over decades. rising when british forces are involved in a live conflict, but since 2010, the figures show a consistent decrease, reinforced by austerity measures. defence is now more complex and sophisticated than ever before. the head of the army recently warned of russia's increasingly powerful and aggressive military. a capability he said the uk would struggle to match. but as well as traditional battles, there is now a technological fight that also needs money and resources. i think in the cabinet office there is a suspicion that defence hasn't delivered the savings they had promised to in 2015, and they have to put defence up against the wall now to make them deliver the savings that were promised.
the ministry of defence say the royal marines play a vital role in protecting the uk, but its budget is stretched and in the face of powerful arguments being made by other government departments, defence is trying to ensure its case for increased funding is heard. daniela relph, bbc news, at the mod. to pensioners have been injured in a suspected gas explosion near bolton. emergency services were called to a town where a man in his 70s is in a serious condition. the undullah stoney is here at two o'clock. now it is sport today wigmore on the super bowl. —— is here hello, i'm gavin ramjaun, and this is sport today, live from the bbc sport centre. coming up on this programme: super bowl lii is under way, with the patriots hoping to equal
a long—standing record as they take on the eagles in minnesota. drama till the very end as a controversial injury—time penalty sees tottenham come away with a draw at liverpool. and cameron can't save the day. great britain are beaten by spain in the davis cup after norrie loses in four sets. we start with super bowl, which has just got under way in sub—zero conditions in minnesota. the new england patriots are up against the philadelphia eagles, who are going for their first title. this is the latest: the score is 22—12 to the philadelphia eagles. nick hoult is found jeffrey to put the eagles in the lead and the patriots led by quarterback tom brady have the chance to equal the