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tv   Asia Business Report  BBC News  November 30, 2017 1:30am-1:46am GMT

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the north korean regime "will be utterly destroyed" if war breaks out. that is what the us ambassador, nicky hailey, told an emergency meeting of the un security council. it comes after north korea tested another ballistic missile with intercontinental range. donald trump has told the uk to "focus on the destructive radical islamic terrorism," rather than him, after downing street said it was wrong for the president to share anti—muslim videos posted on line by the deputy leader of the far—right group britain first. and this video is trending on in a breathtaking stunt, a pair of french daredevils dived off a mountain in the alps, before gliding to jump into a plane in mid—air! it took them over 100 practice flights to perfect the dangerous feat. that's all from me for now. stay with bbc news. and the top story here in the uk: the uk has offered a large potential
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divorce bill to the eu worth up to 50 billion euros. asked on a trip to iraq if the figure was agreed, the prime minister, theresa may, said talks were continuing. now on bbc news, all the latest business news live from singapore. shares of australia's big four banks plunge after the government sets up a financial commission to investigate it. and will be rebound from last quarter's sluggish growth rates 7 from last quarter's sluggish growth rates? good morning, asia. hello, world. welcome to another edition of asia business report. i am rico hizon. it's a thursday. we start off in australia. the prime minister of the country announced this morning he has established a royal commission to investigate the
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banking industry. this comes after the four big banks of australia called on the government to open the enquiry to restore the public‘s faith in the financial system. it caused shares in the big four banks to fall roughly 1.5% in sydney trade. for news on the latest in parliament, i am joined trade. for news on the latest in parliament, iamjoined by trade. for news on the latest in parliament, i am joined by a trade. for news on the latest in parliament, iam joined by a market strategist from a trading floor in sydney. thank you forjoining us. was it a wise move for the big four banks for an investigation? hello. it was becoming inevitable. there was a push for a couple of years now for a royal commission. the labour party said it would hold one if they got in at the next election. i think the big four banks sniffed the wind and thought it would be better to get it over with rather than die by
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1000 type. —— cuts. get it over with rather than die by 1000 type. -- cuts. what could potentially be the political fallout, greg, from the royal commission's findings? it is interesting. to unpack. malcolm turnbull has done a backflip. he realised they could lose a vote on the floor of parliament. politically, we have a substantially weakened prime minister and treasury. in terms of the banks, there have been many missteps, especially from the commonwealth bank. is the royal commission goes after them, we could have even stronger regulations. —— apr. the banking regulator has put in place many over the past two years. that could impact the economy. how long do you think this probe could last
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and when will the royal commission released the findings? -- royal commission release. the government has given them a year. that is plenty of time. we will know in 12 months what the recommendations are it is going to make. it will all trickle out over the course of that period. anytime the banks try to rally too far there will be another news story to put them back. 365 days for the enquiry. this could hurt the share price and valuations of the banks. could this at the australian economy? yeah, confidence is important in any economy. confidence has been undermined in the banks through their scandals in the banks through their scandals in the past two years. the owners of the past two years. the owners of the banks will hope this draws a line under the lack of confidence that was starting to build. to that extent, yes, it could hurt the
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economy. but when we look at things, the global economy and our economy is doing well, so on balance, i don't think it will. thank you for your thoughts on the latest development on the banking sector in australia. staying with the financial industry, in the last hour, the bank of korea has raised the cost of borrowing for the first time in six years. they increased it a quarter of a percent, bringing to an end a five—year cycle of low rates for the fourth largest asian economy. south korea has been riding an economic boom thanks to its demand for its electronic service is. this is the biggestjump in seven years. bitcoin went past 11,000 just one day after breaking $10,000. in fact, 11,000 just one day after breaking $10,000. infact, there 11,000 just one day after breaking $10,000. in fact, there was so much activity that the major bitcoin
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exchange crashed at one point. an astonishing climb from its debut value of 6 cents. it has fallen back to earth at around $9,000 already. in india, we will find out later today how much the economy has grown when the latest gdp figures are released. it slipped to a three—year low in the previous quarter, prompting the government to look at ways to restart the economy. 0ne area of concern is the banking system. there are now plans to inject $32 billion over the next two yea rs into inject $32 billion over the next two years into india's banks. why is this necessary? let's find out! this is the amount of money that is owed to the banks of india. but how did things get so bad? for years, large corporate sober pay back loans. this is one of them. he is famous for
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making beer. is debt rose to $2 billion. this is causing india big problems. the debt is eating into bank profits, choking off new lending to smallerfirms bank profits, choking off new lending to smaller firms which boost growth. what do you do with this much debt? the government has a plan. 70% of the bad loans are owned to government run banks. it wants to inject funds into those banks. they wa nt to inject funds into those banks. they want to release the money in three ways. most will come from selling bonds. indian banks are flush with cash after a ban on almost 90% of cash after a ban on almost 90% of cash last year. they want to buy bonds using that money and then it will put cash back into the banks. this will improve their balance sheets, allowing them to lend more money and make profit. the rest of the money will come from selling sta kes the money will come from selling stakes in the banks and the
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treasury. but many say instead of a bailout would really need to be done is to reform the banks to make them more efficient in things like lending. if that is not done, the government may have to dive into its savings once more to rescue the banks again. india's banking sector is going through a turbulent time with rising bad loans and pressure to cut costs. private banks are adopting processes which have led to job losses. we caught up with the ceo of one of the largest banks in india and ask about the 1000 job losses in icici. digital channels is where we are doing most of our transactions. and we have a lot of artificial learning. to some extent, some of thejobs artificial learning. to some extent, some of the jobs are probably irreleva nt some of the jobs are probably irrelevant due to new technology. but if you reskill those people you
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can use them in the otherjobs that technology creates. let's talk about what the challenges are four of the indian banking sector. we have the issue of stretched large corporate assets. there are multiple reasons why that happened. i think they are focusing on the resolution, though. we have not seen growth in micro credits are small loans, in india. —— in. will private enterprises get into that? it is a huge sector. the economy is getting more and more formalised through demonetisation. money is coming into the economy. it is becoming more inclusive. that allows ba n ks is becoming more inclusive. that allows banks to offer loans to people who were otherwise not capable of getting loans because
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they were not part of the formal economy. you are at the helm of one of india's largest private banks. what advice do you have for working women about balancing home and work? the first thing is, you know, you have to realise both are important. 0nce have to realise both are important. once you decide that, you should do it if you'd desire to do it! —— you desire. if you think it is just expected of you, it will never happen. you should say you are doing it because you want a career for yourself and you desire to see your family nurtured in a way you feel proud about. it is about you making up proud about. it is about you making up your mind. make sure you are working hard enough. i still sleep with a list of things to do in the night next to me even in this digital age. there are two columns. 0ne digital age. there are two columns. one is everything i have to finish the next day at work, but there is
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one column of what i have to organise at home. but i like to do it. i put it next to my bed, and when i wake up in the morning, the day starts with that and there is not a minute to waste. let's have a look at the markets. the asian markets, most are in negative territory after a technology sector sell—off on wall street and on stocks globally. the dowjones had another record high, though. it surged by more than 100 points, to a new high. thank you forjoining us. iam rico new high. thank you forjoining us. i am rico hizon. hello. new high. thank you forjoining us. iam rico hizon. hello. i'm ben bland. the top stories this hour: following north korea's latest missile test, the us ambassador to the united nations has warned the north korean leadership that it would be "utterly destroyed" if war broke out. politicians across the board have condemned president trump for re—tweeting anti—muslim videos
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posted by the far right group, britain first. but the white house says it's standing by the message. a man who a judge ruled had probably sexually assaulted his baby daughter before she died has been giving evidence at an inquest into her death. 13—month—old, poppi worthington, died after sustaining unexplained injuries at her home in 2012. a police investigation into her death was botched and the verdict at the first inquest quashed by the high court. today poppi's father, paul worthington, who has always denied wrongdoing, refused to answer questions sixty nine times at today's second inquest. 0ur reporter, danny savage, was there. poppi worthington's life was tragically short. the saga surrounding her unexplained death is very long. 13—month—old poppi died nearly five years ago. she'd been rushed to hospital in barrow after being found unconscious at home early one morning. many months later, a family court judge found that poppi's father had probably sexually
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assaulted her shortly before her death. today, he was bundled through the back door of the coroner's court under police guard. paul worthington denies any wrongdoing and has never been charged, but he's been called as a witness at the inquest into his daughter's death. screened from the public but not the press, he agreed that poppi was as fit as a fiddle and would wake up just before 6am. but when asked about events closer to the day that poppi died, he kept replying, "i refer to my previous statements. i rely on the right not to answer under rule 22." that rule states no witness at an inquest is obliged to answer any question which might incriminate them. last year, cumbria police was heavily criticised for its handling of the investigation into poppi's death. that report detailed a catalogue of mistakes made by detectives,
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saying that crucial evidence was thrown away, witnesses weren't interviewed for eight months, and there was enough evidence to arrest poppi's father on day one. accused of sexually assaulting his own daughter, paul worthington has been in hiding for months. but he was called to give evidence here in person, although he repeatedly exercised his right not to answer questions. he is expected back here tomorrow. danny savage, bbc news, kendal. don't forget you can get in touch with me and some of the team on twitter. i'm ben bland. time now for all the sports news in sport today. this is sport today, live from the bbc sport centre.
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coming up on this programme... there's drama aplenty in the english premier league as city's sterling downs the saints with the last kick of the match to the man in charge of the russian world cup says fans should not fear rough treatment by the police next year. and police complete their investigation into the incident involving england all—rounder ben stokes, but there won't be a resolution for at least several weeks. hello and thanks forjoining us. it's been another busy day in the english premier league with six more matches on wednesday. and there was drama at the etihad as league leaders manchester city scored with seconds remaining to beat southampton 2—1. nicolas 0tamendi had put pep guardiola's side 1—0 up before 0riel romeu equalised for the saints. but a stunning last minute strike from raheem sterling means city stay eight points clear of their rivals manchester united and have now won a club record 12 league games in a row.


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