18/06/2014 Asia Business Report

was for elected heads of state ` and not the European Parliament ` to

decide who should get the job. Now on BBC News all the latest business

news live from Singapore. Japan takes steps towards legalising

casino gambling. Could it be a pillar of future economic growth?

China and the UK to sign more than $34 billion worth of deals in a sign

of warming ties. Thanks for joining us on Asia Business Report. I'm Rico

Hizon. There were long`awaited talks on a bill to lift a ban on casino

game in Japan. Japan had the potential to make `` become one of

the biggest gambling market in the world and the Prime Minister says it

will be a highlight of his growth strategy. The second largest economy

in Asia may need that boost, figures released today show Japan lobbed it

23rd straight trade deficit in May after exporter fell by more than

expected. I spoke to Catherine Yong on whether a bet on gambling would

pay for Japan. If you look at gaming and casino operations in Macau and

the Philippines, they are doing well. It will increase the amount of

tourist in Japan to 20 million. And the target is for the Olympics in

Tokyo. Does it have the support? We are in the early stages so it is too

early to call. Shinzo Abe is adamant and when you look at him, he has a

lot of good ability and is therefore a long`term. When he says things,

they do tend to work towards the aim. Hopefully it is not just

rhetoric because everyone is now expecting what will happen in this

growth strategy and particularly, the corporate tax which is one of

the highest in the world. You think this will be produced? Likely to be

reduced by about 2% this year with the aim of ultimately around 20 to

30%. A bit like attracting tourists, they also want to attract

corporations. Legalising gambling, reducing corporate tax, Labour

market stability, progressing with the transpacific partnership. If

this all comes to fruition, held at growth will this add to the Japanese

equity? We are not going to seek huge numbers that we have seen out

of India or China. When you look at Abenomics, is a steady, slow pace

but at least it is a pace. From an investment perspective, we are

finding corporate reforms are very interesting. The past two decades,

the Governor has lent corporations. There is now a focus on big

shareholder friendly and increasing profitability. What if he does not

push through with these reforms? What will happen with the Japanese

economy? It will go back to where we were seeing it a couple of decades

ago. That is important in terms of the overall Abenomics. You have

various aspects whether it is immigration or corporate reforms.

There is a change in mindset for Japanese and that could be a risk

but their stars are aligned. Given the risks and rewards, what are you

telling investors right now about the economy? When you look from a

stock respective, corporate reform is important. The market is down

today. From the valuations perspective, the market is looking

attractive. It is on a stock by stock bases. The Chinese Premier is

in the UK for his first official visit and more than $24 billion

worth of deals have a load. The two sides have been looking to mend

economic and diplomatic relations following a row over Tibet. Our

China editor has the details. The Chinese Prime Minister claimed the

London sunshine was a good omen for UK`China relations. Even politicians

from a one`party state like photo opportunities. The Premier of the

People's Republic of China, Your Majesty. This is a privilege more

usually granted to presidents, but what the Chinese want, they

increasingly get. In return, ?14 billion worth of deals for the UK.

It's no longer an option not to do business with China. The question

for David Cameron is who benefits and whether he has to compromise

other values in a world where China can use its economic strength to

push other issues. A nation of 63 million meets one 20

times as big. The British outnumbered around their own Cabinet

table. The key moment in the day ` the deal. Signing ceremonies,

including nuclear co`operation, banking and liquid gas.

Good afternoon and welcome. Then an unfamiliar encounter with

the free press. I asked whether China had anything

to learn from the UK on human rights. TRANSLATION: The Chinese are

continuously pushing forward on human rights in close dialogue with

the UK and other countries. In many ways, we can learn a lot from each

other, even as we follow our own paths. There was a small

intervention about the Scottish referendum.

TRANSLATION: We want to see a strong, prosperous and united United

Kingdom. From the other side of the street, the message was disunity,

aimed at the Chinese Prime Minister and his British host. But David

Cameron's view is that the rise of China is a defining event of the

century and he assured his visitors that the UK supports it.

In other business News making headlines, Oracle is reportedly

nearing a deal to buy their smaller rival for more than $5 billion. The

company sells software and services for hotels, restaurant and

retailers, sought by as much as 22% in US trading. The maker of photo

shop and Acrobat software posted better than expected numbers because

of higher sales. Adobe's second quarter profit load `` rose. Its

shares gaining nearly 9%. Citigroup has paid a record number for a Hong

Kong power. The largest property transaction in the Chinese

territory. It is scheduled to be completed next year and will bring

most of their employees under one roof. A British Guiana 1 cent

postage stamp sold for a record 9/2 million dollars at auction. The

stamp is the only one of its kind to exist and is the most expensive

stamp ever sold. Measuring one inch by one and a quarter inch, option

house, Sotheby's said it is the world most valuable object by weight

and size. The football World Cup in Brazil is a bonanza for many

businesses around the world. In Bangladesh, leading makers have won

at least $500 million in export orders to produce World Cup

T`shirts, caps and flags for fans worldwide. The new orders came at a

time when the industry is in crisis after a string of disasters.

It might be a long way from Ozil but there is no escaping the World Cup

here. The merchandise is everywhere. This is big business. Bangladeshi

manufacturers received orders worth more than $500 million. From

sportswear giants like Adidas and Puma. We export millions of pieces

which can translate to $2.5 million equivalent. If you look at the

intercountry export, not only the T`shirts but other merchandise like

flags, caps and other stuff. The World Cup merchandise is made mostly

in China and tangled ash. The two major players in the global clothing

industry. `` Bangladesh. They are not just exporting World Cup

merchandise, they are also catering to the domestic market. There is

World Cup fever here as you can see, the shops are selling T`shirts,

flags and and different product relating to the World Cup. The

Bangladeshi clothing industry has been under scrutiny following a

series of disasters. The World Cup orders came as a big boost.

Following the accident, Western retailers have set up teams to

inspect safety standards in factories across Bangladesh. Several

factories which were not compliant have been shut down. Western brands

have already warned that they will look elsewhere if the safety

standards are not improved. I do not think we should take our buyers are

granted. There is a project in Myanmar that the UN has invested

in, it is investing in building their capacity. There are newer

market like Ethiopia opening up. There is a population in India where

they are going to get more business from last. For the moment, the

exporter keep growing. They are expected to reach a record $25

billion in this fiscal year. That is more than 80% of the country 's

annual export. The industry has the potential to change the lives of

millions of people. If the manufacturers can strike a balance

between low`cost deduction based and safety standards.

For more news, please visit our website. Thank you so much for

interesting your time with us. Sport Today is up next.

I'm Mike Embley. The top stories this