08/05/2014 Asia Business Report

latest business news live from Singapore. Asia Business Report with

Ricoh. The chiefs from Hong Kong's biggest property developer go on

trial in the biggest corruption case. China's latest trade numbers

suggest a turnaround for the world 's second`largest economy. Welcome

to Asia Business Report. I'm Rico Hizon. Hong Kong's biggest ever

corruption trial kicked off 30 minutes ago with some big names in

the Territory's is in a scene taking the stand. The city's what druthers,

two of the world 's most successful developers are being prosecuted ``

Kwok Brothers. Our correspondent joins us from outside the court. At

very high profile and significant corruption case, what is the latest?

I can tell you that the trial started about half an hour ago. This

will be a jury trial. The jury is not in sight yet. We believe they

may be in the process of being selected. That is for a trial

expected to last more than two months. Let me summarise the charges

against the defendants. The Kwok Brothers, Thomas and Raymond, are

the joint chairman of one of the world 's biggest listed property

companies. They are accused of a number of charges, essentially of

bribing the former number two in the Hong Kong government during the

years that he was in government. All three, plus two other defendants,

who are at the court right now have all pleaded not guilty. If

convicted, we believe they may face years in prison. Thomas and Raymond

were arrested two years ago. Has this impacted their business

empire? They have maintained that this case wouldn't affect their

commercial operations. What they've done over the years is ring in

directors into the company `` bring in. In the last two years they have

been aggressive with expansion in mainland China as well as in Hong

Kong. As soon as the charges were announced, company shares fell

significantly. Over two years, they haven't recovered. Right outside the

courthouse in Hong Kong where the corruption case is on trial. Thank

you so much for the date. Fresh data from China showing a recovery in

trade. Imports and exports rising for April, compared to the previous

year. That is a turnaround from earlier declines which led to

worries about a slowdown in the world 's second`largest economy. We

crossed to John Sutton worth in Shanghai. `` we crossed. Better than

expected numbers. Is this a turnaround for the Chinese economy?

It will be seen as positive news. They aren't bumper numbers by any

standards. We have got exports up in April by 0.9%, year on year. Given

that many analysts predicted those figures would be in negative

territory, this will be seen as welcome news. It follows a dreadful

few months for China's trade data. It's worth bearing in mind people

suggest is because figures one year ago were very much over inflated.

That's because, to be frank, companies were manipulating data to

get around currency controls. What are the biggest risks facing the

Chinese economy at the moment? Is it had debt, the property sector,

labour disputes or territorial arguments? All of those. These trade

figures matter. There is hope that, with signs of a pulse in the

economies of Europe and America, trade figures might pick up. The

focus is across the board. There are concerns in every area. The property

sector is key for Chinese growth and is showing signs of a slowdown.

There is a debate about whether we are seeing the beginnings of a

popping bubble or not. That's a big area of concern. Going forward,

given there is consensus that we will see this weakening growth,

people suggesting 7.3% for the year, at the moment, no cause for alarm.

Certainly, the signs of worry is coming in some areas you mentioned,

in particular focusing on property. That's a big focus and a big topic

of talk at the moment. China's April trade numbers coming in better than

expected with exports and imports rising. Thank you for the update.

Meanwhile, Thailand has a new interim leader. A court has ordered

to step down after finding her guilty of abuse of power. This move

extends the political crisis, which had led to violent protests and

brought the economy to a standstill. Further uncertainty on Thailand's

political leadership proposes a threat to future investments. The

economy has already seen a slump in tourism and a slowdown in domestic

demand. Earlier I asked how the latest developments will be

perceived by the international business community. I suspect they

will be doing it with a degree of despair. What it means in the

immediate term is probably more protests on the streets of Bangkok.

It will almost certainly mean for perhaps the next six months a

continuation of the government's inability to transact with

investors. Everything is on hold. But I suggest they should look

deeper, because what happened yesterday was a full`blown judicial

coup. That would have been quite catastrophic in terms of the degree

of violence and disruption it would have brought to Thailand. You say

more protests and instability in the medium term. How should the sisters

and investors manage the risks in Thailand? ``businesses. They will

have to play a long game. Yesterday we saw the beginning of the end of

Thailand's long`running stand`off, the latest round of which began last

December. We are seeing signs of a path out of this problem. It might

seem negative that Yingluck Shinawatra has been forced out, but

what remains is the majority of her Thai government. In the next day or

two we will see a decision on whether the July general elections

go`ahead. If we see that made, investors should take solace from

it. It is a path towards not necessarily a political solution but

an accommodation that should see business function much better. Japan

says it is making progress in trade talks with the US in establishing

the transpacific partnership, or at the TPP, being negotiated by 12

nations with the Japan earnings and the US as the biggest economies.

Credited with turning around the economy, the finance minister says a

deal can be reached. On a visit to the UK, he spoke with business

correspondent. For Japan, it is a cultural products. TRANSLATION: For

the US it is automobiles. These are considered to be sensitive items. It

doesn't mean it has already concluded. We agreed on an equation,

a framework, to reach that conclusion. In a way it could be

said as a type of breakthrough. Because if Japan and the US can come

to an agreement, the negotiations with other countries will progress

significantly. Japan has a mind`boggling amount of debt. The

debt to... That Japan owes more than 2.5 times the amount it creates

every year. That is higher than Greece or much higher than other

countries. If interest rates around the world start to rise, which many

people think they will and in fact in some countries they have already

started to do so, is that not a nightmare for Japan? Because of the

sheer amount of debt we would have to service? That would eat up all of

the government revenue? TRANSLATION: Japan's long`term debt level, the

government debt level, is close to two times GDP. So, if there is an

increase in interest rates, this is going to be a very serious situation

for Japan. We need to boost the credibility of the central bank. And

we need to present the government's Strong will for fiscal

consolidation. We need to create a plan for fiscal consolidation. The

government has a strong will for fiscal consolidation and it has also

presented its plan. In Europe, a certain country is focused on

austerity towards fiscal consolidation and it has failed.

Because what you need to do is cut the waste in your fiscal policy and

make it efficient. But at the same time you do need a growth strategy

to increase revenue. You need a combination. That's what Japan is

doing. Asian shares are in positive territory after news that China's

trade numbers came in better than expected. We now end this edition of

Asia Business Report. Thanks for investing your time with us. The top

stories this hour. As Nigerian police offer a reward for

schoolgirls kidnapped by Boko Haram, it has emerged hundreds more have

died in another attack by the Islamist