Transcripts For BBCNEWS Asia Business Report 20170601

Now on bbc news all the latest Business News live from singapore. Backin back in the club. Pakistan reclaims its status as an investment destination. Our Oil Investors react . And, find out why this airport in south asia is not popular with travellers or airlines. Welcome to Asia Business report. A big day for pakistan, one that brings a boost to the countrys stock market as today is when pakistan rejoice the msci emerging markets index, that list looks at top rank stocks from around the world, they use those lists to determine where and how much to invest in stocks. It signals that things could be turning around for a nation where political and terror related problems have taken centre stage. Pakistan used to be part of the index but was removed due to the decision to shut down for four months in late 2008 after prices dropped dramatically meaning Foreign Investors could not get their money out. We arejoined by investors could not get their money out. We are joined by our correspondent now. Why are they back in the club . Well, i think if you Ta Ke In The Club . Well, i think if you take a look at the performance of the stock exchange, versus the msci emerging markets index, the grass itself can tell you pretty much everything about why the msci has decided to re include pakistan back into its emerging markets index. This blue line, consistently outperforming emerging markets. That is not all. I spoke to be ceo of the pakistan stock exchange. He told me prior to this that the stock market has taken some major reforms in pakistan. There has been a lot of lobbying and Corporate Governance going on. Theres the issue of better economic growth, that eve ryo ne better economic growth, that everyone is not amused about not eve ryo ne everyone is not amused about not everyone is not amused about not everyone is amused about this. Someone said to me that perhaps pakistan has bitten off more than it can chew. It is great for pakistans ego, they love the idea that now we are no longer in the frontier, we are in the respectable index. But, they must remember that before they were a big fish in a small pond. It was about 8 waiting in the frontier index, now it is maybe i , or less, waiting. They are a small fish in the big pond now. That was mark may be speaking. We looked at the charts, pretty impressive gains there. It does not ta ke impressive gains there. It does not take away from the fact that pakistan is somewhat scary a place with Terror Attacks and osama bin ladens death as well. Doesnt it put off investors . You are right, we should not underestimate how much of a major blow to confidence many of those terror related to tax and political problems we have seen in pakistan have been, notjust for Foreign Investors but domestic investors. This data surprised me when i researched the story that i put in my blog on the website today. Look at these figures coming out of pakistan for more than a decade. There is that dip in economic growth, in mid 2000 gt many of the financial problems. Then you have that trajectory upwards. 5 growth rate, respectable in this part of the world. A Big Domestic Consumption Story reflected in the performance of the Karachi Stock Exchange over 20 years. Look at this chart. All of those terror related incidents we talked about, political issues like the assassination of the former Prime Minister, every time these things happen, there is a dip, an impact on the stock market but pakistani shares tend to do very well over a long term period. People i spoke to who invested in the market over that ten or 20 year horizon have done remarkably well. There is the fact that china is investing in pakistan with the chinese Pakistan Economic cadre, pa rt chinese Pakistan Economic cadre, part of one belt, one road. That plan that china has. We will see more investment there. Turning to neighbouring india, it has lost its title as the worlds Fastest Growing major economy. In the first three months of 2017, the rate was 6. 1 , compared to china which was 6. 9 growing in the first three months. It is thought to be due to the banks ban on big banknotes. General electric and caterpillar are among the first to tie up deals with vietnam. The boss of the Low Cost Carrier there has two group ag five billion dollars. The Prime Minister in the middle here with the Trade Secretary has said he expects up to 17 billion worth of deals to be signed during his trip to meet the us president donald trump. The usa expressed concern about the rapid growth of vietnams death said. A chinese activist has been detained while investigating alleged rights abuses. The man was working undercover at a Factory Making Shoes for the us president s daughters shoe company. Most people look to pharmaceutical firms to provide life saving medicine but do not give much thought as to how critical drugs are transported. Extreme temperatures can affect the effectiveness of the drug. This is where Drug Distribution Companies Come in. The Chief Executive of one firm told us that they are focusing on getting medicine to some of asias poorest countries. Some countries still have frontier tenancies, there is a lot of building still to do. The philippines, my mother with a population of 60 Million People and a huge democratic future ahead. Myanmar. Hopefully it will bring in opportunities. Our competitors have been there a while, but it is time for some change. Unusually, you sold out of your chinese state, out of the chinese market. Are you potentially losing out on growth . |j learned potentially losing out on growth . learned in my various guises by working in china that you either go big or not at all. Half in and half out, you get murdered. It was a competitive market in china. There was a lot of Working Capital required to succeed and we would never have had the resources to do china justice. Cardinal health are doing a very good job. It would have meant we had to close down other operations in other markets where we have leadership positions. I would rather be a strong leader in the markets i operate in rather than be a weak player in china where local players have me for breakfast. You have got quite big clients and drug companies, like gs k, pfizer, novartis, this has been impacted greatly by consolidation. How has it impacted you as a Drug Distributor . You win some and you lose some, we have had some major changes in the last three or four years. We benefited from some of those as partners see us benefited from some of those as partners see us as a benefited from some of those as partners see us as a long term safe haven, and sometimes it goes the other way. We live with the reality that there is consolidation and there needs to be, as Different Companies focus on certain therapeutic areas, we live with the reality. It does not damage us, sometimes it helps and sometimes it hinders. Now, take a look at this. That is the tarmac of an airport in sri lanka that has been dubbed the worlds emptiest International Airport. It cost about 1 billion to build, funded by loans from china. But why is it hardly in use . Our tea m we nt but why is it hardly in use . Our team went there to the International Airport to find out. Is sri lankas second International Airport after columbo in the south of the country, and opened in 2013. Im told there is not much going on here. Lets have a look. Slider by is the chief Flight Operator from this airport. It goes from columbo to dubai. And it is the only airline that operates . Yes. At the moment. How many passengers do you get per week . Per day, we can say about 50 to 75 of guests departing from this airport. Lets have a look at the markets before we go. Japans mckay has opened and it is at 1 higher. There was a rebound in oil prices. They have fallen to a three week low, helping resource related stock. Thats all for this edition of Asia Business report. Thank you for watching. The top stories at this hour. World leaders condemn the massive bomb attack in kabul which has killed at least 90 people. The afghan president calls it a crime against humanity. The Chinese Premier Li Keqiang is in germany, where hes been holding talks with chancellor angela merkel. Climate change and trade are expected to top the agenda. Lets return to the election now. People in Northern Ireland are going to the polls for the fourth major vote injust over two years. Brexit remains a crucial issue, as the future relationship with the Republic Of Ireland remains unclear. The largest Unionist Party in Northern Ireland, the dup, has launched its manifesto, promising to work for the best deal, in the brexit talks. The party also pledged to make tourism a billion pound industry, and called for a Public Holiday to celebrate Northern Irelands centenary in 2021. The dups leader and former first minister, arlene foster, said she wanted a mandate for talks aimed at restoring power sharing at stormont. But above all, she said, the election was about making sure Northern Ireland remains in the uk. Onjune the 8th, im asking people to get Northern Ireland back on the right track. To vote to get the best deal for Northern Ireland. To strengthen our hand in the upcoming negotiations. To get the assembly back up and running. To protect our place within the United Kingdom. And to unite behind one strong unionist voice. Northern irelands Alliance Party has also launched its election manifesto, promising progressive and pro european politics. The manifesto includes a series of commitments on power sharing in the assembly, the economy and justice, but focuses on brexit. This is a manifesto that pledges to oppose a hard brexit, support a special deal for Northern Ireland, and give the public the final say on the outcome of those brexit negotiations. It is a manifesto that recognises whatever the outcome of the negotiations are, our best feature from Northern Ireland and all of these islands is one that recognises interdependence and cooperation with the rest of europe as the best way forward. And for the latest on the campaign with analysis of all the main developments and issues in the nations and regions of the United Kingdom take a look at our website. Youll find all of the fallout from last nights debate, the bbcs Reality Check Fact Checking some of the claims made and the latest poll tracker. Time for a look at all of the sport news. Hello, this is sport today live from the bbc sport centre. Coming up on this programme. Defending mens champion Novak Djokovic cruises into the third round of the french open. Its official now as Arsene Wenger agrees to two more years as arsenal manager. And uruwa red diamonds score an extra time winner to qualify for the Asian Champions League quarterfinals. Hello and welcome to the programme where we start with the tennis news that defending french open champion Novak Djokovic and nine time winner rafael nadal eased into the last 32 at Rolland Garros on wednesday, while womens defending champion Garbine Muguruza survived a second round scare. Austin halewood rounds up the best of the action from day four in paris. World number two Novak Djokovic was looking to become the first man in the open error to win each grandson twice. If his second round match was anything to go by. You would be brave to bet against him. He barely