18/03/2014 Asia Business Report

to benefit the North of England more quickly. Time now for the latest

business news live from Singapore. It is Asia business report.

Of the job. Workers in India are demanding higher wages from Japanese

car`maker Toyota. And a special report on Turkey. One of the economy

is from a cutback in US stimulus programmes.

Wellcome. Toyota's India subsidiary will meet today with the state

government in an attempt to end in industrial dispute that has dragged

on for ten months. Yesterday, the Japanese car`maker announced a

lock`out of nearly six and a half thousand workers from its two

assembly plants, claiming some employees have threatened

supervisors and resorted to deliberate stoppages.

Toyota has shut down its manufacturing plants. The company

said in a statement over the past 25 days, a section of employees had

disrupted business and stopped production lines. This after the

management today met with unions and local government and failed to reach

an agreement. They added that the shutdown will result in the loss of

700 units every day. We are not clear as to when the planes will

resume operations. India is not a huge contributor in terms of revenue

for Toyota, but it is a significant market. The firm has raised millions

of dollars over the years to expand its manufacturing presence in the

country. The auto industry here is used to it. In 2012, another

Japanese car`maker, Suzuki, had stoppages that with violent and left

one person dead. They had to shut production for several weeks, losing

many millions of US dollars. Activists and labour unions say a

lot of companies exploit contract workers by paying them less than

company employees. Auto companies have been hiring more contractors to

cut costs as the union auto market has been hit by a slowdown over the

last couple of years. Toyota's rival, General Motors, has

issued new recalls of 1.5 million cars, it's utility vehicles, and

luxury brands. It came after a report that engine fires happened in

two vehicles. General Motors has recalled around 3 million vehicles

worldwide due to faulty airbags and brake parts across several models.

Car`maker said it would take a huge cost. As the US Federal reserve

meets for the first time under its new chief, Janet Yellen, global

investors are jittery with anticipation of continued reduction

of the stimulus programme. That programme has provided liquidity

into many emerging markets, such as Turkey. Since it was winding back

stimulus last year, the Turkey Euro has lost 20% of its value, and the

stock market has fallen 25%. Our correspondent went to Turkey.

Turkey has one of the biggest deficits amongst emerging economies.

That means that it loses more than earns on its exports and

investments. A result, Turkey owns a lot of money to foreigners. The debt

is up to 50% of GDP, which is a risky level. It has cut back on

cheap cash infections. That cash had been going to other emerging

economies. The lira has weakened, making it harder to repay the debt.

The Turkish central bite `` bank has hiked rates, which are now at double

figures. Needless to say, seeing this, such magnitude would be a

shock to anyone with a mortgage business plan. That is why when the

money leaves, it can hurt growth. Even worse, if a country can't repay

its debts, it will default and crisis will blame.

Our correspondent caught up with Turkey's finance minister, and asked

about the state of the economy. Because this package has slowed

down, we will be willing to move with a more modest growth. Consumer

comfort has collapsed. Industrial output is up, which is unusual. Even

though we may experience some slowdown, I think it is unlikely to

resuscitate, because what is happening is on the back of these

domestic political happenings. I suppose the political instability,

corruption, and unrest in the country 's has led to this. If you

look at opinion polls, they have good sense of is happening. They

understand much of this is politically motivated. Even if there

are problems, I think they still have confidence in us addressing

those problems. In your kind of analysis, how much of the fall of

the lira, how much of the concerns over Turkey, will result in a

changing your? I would say a substantial portion of currency

weakness is attributable to that decision. That tapering, if there

was clarity as to when and how, I think it is now better. Markets

adjust. We will adjust. When there is uncertainty, that's where the

problems come in. I think the market still offer value. The political

noise in a number of countries may get in the way, whether you are

talking about Ukraine or Venezuelan oil Turkey, Thailand, I can only

speak of Turkey as far as politics are concerned, and people want

clarity, and that will mean going back to basics.

Japan will suspend talks on investment and relaxation on Visa

requirements as part of sanctions against Russia. This comes after

Moscow recognised Crimea as a sovereign state following a

referendum over the weekend. Japanese officials says the

referendum has no legal force and is a breach of Ukraine's Constitution.

US casino Caesars entertainment has been given preliminary approval to

build a casino resort in South Korea. It will be up the resort in a

joint deal with Indonesia conglomerate. It will include a

theme park, two hotels, and a casino that will cater only to foreigners.

They are targeting for the resort to be built by 2018.

And more on the gaming industry in South Korea and other business

headlines around the world, visit the BBC website. China has pledged

to increase the speed of modernisation. With Asian investors

keen to grow their wealth at home and abroad, they saved the markets

are changing with traditional property sectors coming increasingly

crowded. I asked where investors were putting their money when it

comes to bricks and mortar. There are two ways to look at it. There

are countries that are popular with active capital markets, such as

Japan and Australia. A lot of funds raised in China, so those other

still the three biggest in terms of capital. The other thing to bury in

mind is there is a quality question. The big shiny office

buildings, the shopping mauls. That is pointing to returns earlier.

Quality property has a lot of capital targeting. Does that mean

people will look elsewhere, such as niche markets? Our recommendation to

investors this year is twofold. To move a little bit of the risk

curve, or take on some leasing risk outside the CBD or older properties.

All get markets, such as medical markets in China. Industrial China.

Some variants of hotels as well. At the same time, we have things like

in Australia, the Parliamentary committee looking into foreign

investment such as Chinese investment into residential

property, and whether that is pricing local buyers out of the

market. That concern about foreign investment, particularly

residential, is that more widespread? It is, and there is

often a tendency to paint this in general is the equivalent is

negative, which is not fair or true. Australia is certainly looking at

this in measures such as Singapore and Macau. All four of these

economies, I where supply is tight. What is the cause here?

That's it for this edition. Don't forget to follow us on Twitter.