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Union, if they got into power. He said they'd offer a vote only if the | :00:00. | :00:00. | |
UK was asked to transfer more powers to Brussels. | :00:00. | :00:00. | |
Now on BBC News all the latest business news live from Singapore. | :00:00. | :00:12. | |
After more than a week of talks, it is the last day of China's big | :00:13. | :00:19. | |
Congress gathering and we ask what comes next for the economy. And King | :00:20. | :00:28. | |
of games, creators of candy crush are buying a share sale in the US | :00:29. | :00:31. | |
and we find out how investors are likely to react. Welcome to Asia | :00:32. | :00:43. | |
Business Report. We begin in China, where an annual 10-day gathering of | :00:44. | :00:48. | |
its parliament is finishing. In the press conference at the closing of | :00:49. | :00:52. | |
proceedings, the Premier said the government was paying close | :00:53. | :00:54. | |
attention to issues like the country 's debt risk and that it would | :00:55. | :00:58. | |
continue to fight corruption. During the meeting, the only unveiled key | :00:59. | :01:05. | |
proposals for reform, including a measure to set up bank deposit | :01:06. | :01:09. | |
insurance, allowing governments to issue bonds and a plan for the | :01:10. | :01:13. | |
Chinese currency to trade more friendly. I spoke to a banker from | :01:14. | :01:20. | |
HSBC, asking his thoughts on what has come out from the meeting. We | :01:21. | :01:25. | |
get the sense of urgency. Nothing that was announced had been rumoured | :01:26. | :01:35. | |
or proposed before. At this meeting, they set a clear marker, in playing | :01:36. | :01:41. | |
timelines, giving us a sense of when they might begin implementing these | :01:42. | :01:45. | |
reforms. It is unusual in a Chinese context to do that, pre- committing | :01:46. | :01:51. | |
yourself to a timeline. But we know the deposit insurance scheme for | :01:52. | :01:54. | |
banks may be up and running before the end of the year. How significant | :01:55. | :02:01. | |
do you think they are? You mentioned this scheme. Will it be as active at | :02:02. | :02:07. | |
addressing China's debt problems? It is one of many measures needed. The | :02:08. | :02:16. | |
deposit Aaron T scheme is one way to contain deposits in the banking | :02:17. | :02:24. | |
sector. -- deposit scheme. We have seen investors investing in a shadow | :02:25. | :02:27. | |
banking system or buying poverty. But if deposits are guaranteed, they | :02:28. | :02:33. | |
are likely to keep money in banks, thus reducing the shadow banking. It | :02:34. | :02:41. | |
will reduce also the upward momentum of property prices. Also, the but | :02:42. | :02:48. | |
that means scaling back China's huge industries. How will that look for | :02:49. | :02:58. | |
China's economic future? These are hard choices China's leaders need to | :02:59. | :03:03. | |
make. But one involves prioritising the environmental issues. They want | :03:04. | :03:09. | |
to address pollution. There is clearly a lot of frustration within | :03:10. | :03:12. | |
the country about the deteriorating air quality. The leadership has | :03:13. | :03:19. | |
gotten the message. The trouble is that some of these decisions in the | :03:20. | :03:22. | |
short term will outweigh economic growth. That includes closing down | :03:23. | :03:29. | |
steel and cement plants, the big polluters. If you close them down, | :03:30. | :03:34. | |
in the short term, that has employment implications and growth | :03:35. | :03:38. | |
implications. But they have sent the message they are determined to crack | :03:39. | :03:41. | |
down on that. Staying with the mainland, there is new saying, that | :03:42. | :03:49. | |
when China sneezes, the world catches a cold. To some extent that | :03:50. | :03:57. | |
is true in the markets this week. I ore, a key ingredient in steel | :03:58. | :04:02. | |
production, saw prices fall by 20%. -- Iron. Used in everything from the | :04:03. | :04:12. | |
production of cars to refrigerators, steel is one of the most important | :04:13. | :04:18. | |
metals in life. But to create steel, unique iron ore. Iron ore is | :04:19. | :04:22. | |
Australia's most valuable commodity and has been a cash cow for some of | :04:23. | :04:26. | |
the world to that most biggest mining companies, including BHP and | :04:27. | :04:32. | |
Rio Tinto. This week, iron ore prices fell to an 18 month low, and | :04:33. | :04:37. | |
the feeling that this downward spiral will continue. Mining | :04:38. | :04:41. | |
executives say they are placed to cope with the tumbling prices, | :04:42. | :04:46. | |
despite pain to come. Share prices have fallen in recent days. Showing | :04:47. | :04:53. | |
investors may not agree. What is calling the -- causing the fall? | :04:54. | :04:59. | |
Mostly to do with China's slowing economy and a credit squeeze. China | :05:00. | :05:04. | |
is the biggest consumer of iron ore. Over the past decade, it has bought | :05:05. | :05:08. | |
huge amounts for construction and manufacturing. But, as growth | :05:09. | :05:14. | |
slows, demand has lessened and there is speculation they might now be an | :05:15. | :05:20. | |
oversupply. According to one research firm, stockpiles at Chinese | :05:21. | :05:27. | |
ports are up 20%. Ultimately, Australia will be watching closely | :05:28. | :05:30. | |
to see if iron ore and other commodity prices improve, because, | :05:31. | :05:34. | |
given it is facing a decade high unemployment rate and the -- budget | :05:35. | :05:41. | |
deficit, it can't afford to discount iron ore, its biggest export earner | :05:42. | :05:48. | |
to its biggest customer. In other news making headlines, Japan's | :05:49. | :05:54. | |
electronics firm, Panasonic, will pay employees in China a premium for | :05:55. | :06:03. | |
the high pollution. Employees sent overseas receive hardship pay | :06:04. | :06:05. | |
increases and Panasonic is the first firm to pay more to do China's | :06:06. | :06:11. | |
air-quality problems. Smog has been a problem in many cities. | :06:12. | :06:15. | |
Australia's economy added 47,000 jobs in February, triple the number | :06:16. | :06:21. | |
and novelist had expected. It comes after two months in declines, | :06:22. | :06:28. | |
despite the surge in new jobs, the unemployment rate remained steady at | :06:29. | :06:34. | |
6%. US regulators have launched investigations into Herbalife. This | :06:35. | :06:40. | |
follows allegations they operate a pyramid scheme, which is making | :06:41. | :06:44. | |
money from new distributors rather than sales. A deny allegations and | :06:45. | :06:49. | |
said they will call operate in the enquiry. Shares fell by 16% of that | :06:50. | :06:54. | |
news, before recovering slightly, down at 7%. The New Zealand central | :06:55. | :07:00. | |
bank has lifted its lending rate, the first since 2012. The reserve | :07:01. | :07:07. | |
bank increased its cash rate by .25%, to 2.75% of saying that rates | :07:08. | :07:13. | |
don't need to be kept at a record low, because the economy had | :07:14. | :07:18. | |
considerable momentum. It also signalled further rises were had. | :07:19. | :07:22. | |
More on these and other stories from around the region, on the BBC | :07:23. | :07:31. | |
website. Have you heard of Candy Crush? If you play games on your | :07:32. | :07:37. | |
smart phones, it is likely you know exactly what I am talking about. The | :07:38. | :07:43. | |
Dublin -based creator of the games, King Digital entertainment, saw | :07:44. | :07:48. | |
sales surge to $2 billion. The company is looking to raise $500 | :07:49. | :07:53. | |
million from a share sale in the US. I spoke to someone about the | :07:54. | :08:02. | |
offering and whether it was reasonable. What is an IPO? The | :08:03. | :08:13. | |
founders are trying to get a stake out of the business, get a return | :08:14. | :08:20. | |
that is what an IPO is. There is a lot of popularity with regards to | :08:21. | :08:23. | |
Candy Crush and, consequently, the founders want to sell. Very | :08:24. | :08:31. | |
popular, but a lot of the eggs are in one basket. They get three | :08:32. | :08:35. | |
quarters of revenues from Candy Crush a loan. That is about 95% of | :08:36. | :08:47. | |
revenue. -- alone. What might this mean for the company's prospect? It | :08:48. | :08:53. | |
is a good point. Go that one step, the company called Zinga had a game | :08:54. | :09:04. | |
called Farmville. That was very popular until Candy Crush was the | :09:05. | :09:09. | |
next three and then came along. -- next big thing. How many big things | :09:10. | :09:14. | |
can be world tolerate's the world isn't big enough or that many big | :09:15. | :09:19. | |
things, and I right? When you look at Candy Crush, you have to ask what | :09:20. | :09:24. | |
is the longevity of the game. I am planing a little. I am waiting for | :09:25. | :09:32. | |
the next big thing. -- waning. Valuations aren't exorbitant as far | :09:33. | :09:38. | |
as investors are concerned. Will be profit be able to be sustained? If | :09:39. | :09:45. | |
not, the company does not have much of a chance. A quick look at the | :09:46. | :09:48. | |
markets. not, the company does not have much | :09:49. | :09:51. | |
of a chance. A quick look at They are rising in Asia. They are | :09:52. | :09:58. | |
recuperating losses from Wednesday. Even though there is a deal of | :09:59. | :10:03. | |
caution, we are awaiting the Chinese economic numbers, which are coming | :10:04. | :10:09. | |
out in industrial art put -- output and retail sales. | :10:10. | :10:18. | |
The Nikkei is up as a result of data from Japan. That is it for this | :10:19. | :10:30. | |
edition of Asia Business Report. Thank you for watching. | :10:31. | :10:36. | |
I'm Mike Embley. The top stories this hour. The Chinese authorities | :10:37. | :10:40. | |
have released satellite images which appear to show three objects | :10:41. | :10:43. | |
floating in the South China Sea, near where a Malaysian airliner went | :10:44. | :10:46. | |
missing on Saturday. It's not known if the objects are part of the | :10:47. | :10:48. | |
plane. President Obama says the West will | :10:49. | :10:51. | |
be forced to apply costs if Russia continues its military intervention | :10:52. | :10:53. |