07/03/2014 Asia Business Report

him of using celebrity connections to bully and manipulate girls and

women into sexual acts. He denies the charges. Now, it is time for

Asia Business Report. A Chinese solar panel company says

it can't pay up, and we find out what that means and why it matters.

And, diamonds. They are supposed to be for ever, so why are some

companies in India losing hope? Welcome to this Friday edition of

Asia Business Report. We start in China, where we could see the

country's first ever corporate bond default. A Chinese solar panel maker

has already warned that it would be able to pay about $14.5 million in

interest that is due today. Chinese solar panel firms have performed

poorly in the past, but are often rescued by the government. Earlier,

I asked what this meant for the mainland. It is important that this

is happening when the NPC is going on, the national People's Congress.

It seems that this default has the tacit approval of the people right

at the top. That means that the Chinese are now going to lie, --

they are going to allow this default. The question is, are they

going to do is? They will allow one default, and in the future will they

allow more bailouts? It has become a systematic in. You think it will be

used as an example, simply because the NPC is going on at the moment?

We heard leaky chains yesterday that the country needs painful reforms --

Lee -- Li Kequiang. This will address a major problem in China,

which is overcapacity in many issues.

The European Central bank has kept its benchmark interest rate at a

record low, at 0.25%. Interest rates have remained unchanged since

November 2013. In January, inflation slowed, and that prompted worries of

deflation. The US department of justice has

launched an anti-trust investigation into a proposed buying of Time

Warner cable. It would see one of the largest cable companies in the

US joined forces with another. , -- ComCast has insisted it will not

reduce competition. The region of India is often caused

the diamond capital. But times are tough, and other high-tech diamond

factories are ripping us were in the world. We met traders there, to find

out if diamonds really can be for ever. It is hard to imagine that

amid the chaos and crowds here, treasures diamonds are being bought

and sold. This is one of the busiest parts of the diamond market. This

man is one of the small traders here. The fluctuation in the diamond

market has made things tough over the past year. Our business gets

messed up, and there is relativity in the exchange rate. We buy

diamonds at higher prices, and then have to sell them at much lower.

Small traders like us can't bear such losses. According to some

estimates, eight out of every ten diamonds sold anywhere in the world

are processed here, although India does not produce any diamonds of its

own. The diamond industry here is worth over $25 billion, and it

direct league employs around 700,000 people. Most of the diamonds that

are processed here are exported, but it is also completely dependent on

imports. When there is a fluctuation in the exchange rate, in immediate

effect is felt here. Small and medium-sized enterprises dominate

this business, and their profit margins aren't big. Typically

between one -3%. So, they need financial backing to where the

losses. TRANSLATION: We don't get loans from banks easily, and the

government also does little to help small and medium companies.

Recently, we were approached by leaders from other countries like

Luxembourg and Belgium, who say they will give us finance and other

infrastructure if we set up there. There is also competition from

China, which has been slowly setting up high-tech diamond cutting

companies. There are few modern firms here in India as well. For

now, it continues to sparkle as the world's diamond capital, but it

knows that it will need to shine brighter if it is to hold on to the

number one spot. Small and medium-sized businesses

are the backbone of many Asian economies, and for women and ever

before at the helm, starting their own businesses and continuing family

trade. International women's Day is being marked around the world this

weekend. We speak to a small-business owner in Singapore,

he says that being a woman in a male dominated world has given her

business a competitive edge. Today, we will be doing Janet. We

are on her third that too, it is just a follow-up. We are feeling in

tiny little spots that need to be done. Basically, I'm just going to

do a touchup. My grandfather came to Singapore in the 40s, and that is

when he started Tatooine. He was the first pioneer artist in Singapore to

start a too business. -- tattooed. After I took over the business, I

decided it needed a new look, a lot of things needed to change from the

typical stereotype that to shop. -- tattoo. We wanted to make sure

anybody who walks in has a comfortable mindset and doesn't get

scared. It is easier for men to approach people who just want a

small tattoo, they don't want their whole body to be covered. There is

no ego, it is not macho, that is what a more to do. Sometimes they

feel very intimidated if they come in and see a big guy who is fully

tattooed and all they want is a small one. I went in both ways. Male

and female. -- win. I still work the hardest, I still work the longest

hours. It is almost like I am still working for the family, doing this

for the family business. It doesn't really feel like I am my own boss.

Even though I call all the shots, ironically. More than 70% of Asian

businesses are family-owned, and for centuries that ownership has moved

down a male line. Today, women are increasingly taking on family trade.

One specific role stands out. The eldest daughter is often given a lot

of responsibility both with keeping the family together, making sure the

parents are well taken care of, and in many cases the eldest daughter

becomes the father's right-hand person, if he runs the main

business. The eldest daughter can in many cases more trusted than even

the sons, even though the eldest son may be expected to take over the

business. That's right, because the men often inherit these businesses,

don't they? When facing the outside world, the women are behind the

scenes. There is a special trust in the eldest daughter, because she is

not experienced as a competitor, she is not directly compare to him. It

can be a very close relationship. To the extent that the daughter is an

extension of the Father, the father sees her as an extension of himself.

She can be asked to do anyone of a wide of tasks. In many cases,

especially now, women in their 20s, 40s or 50s, have been very well

educated, have experience working in the West, and then have responded

when a father has said I need you to help me. I need to bring you in to

help me out. Let's have a quick look at the market.

help me. I need to bring you in to help me out. Let's have a quick A

positive close on Wall Street, and a good US jobless numbers is helping

to lift numbers. We know that the weaker yen helps to lift markets.

The Hong Kong market has opened and that is also trading higher at the

moment. You can follow us on Twitter, and go to BBC website.

Our top stories: In their second lengthy phone conversation in six

days, President Obama has again told Vladimir Putin that Russia's actions

in Crimea are a violation of Ukraine's sovereignty. The British

government has ordered an enquiry into allegations of corruption and

surveillance during the investigation of the murder of

Stephen Lawrence. We stay with that