18/06/2014 Asia Business Report

Commission ripe `` right up until the end. Mr Cameron insisted it 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 $25 billion worth of deals in a sign

of warming ties. Thanks for joining us for Asia

Business Report. I'm Rico Hizon. Japan's will make us start

long`awaited talks today on a bill to lift a ban on casino gambling.

Japan had the potential to become one of the biggest gambling markets

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,

as figures released today show Japan logged a 23rd straight trade deficit

in May, after exports fell by more than expected. I spoke to Catherine

Yong on whether a bet on gambling would pay for Japan. `` pay off. If

you look at gaming and casino operations in Macau and the

Philippines, they are doing well. The aim is to increase the amount of

tourists in Japan to 20 million by 2020. And the target is for the

Olympics in Tokyo. Do you think it will be passed by parliament? 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 there for

the 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. Do you

think this will be reduced? 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, how much

growth will this add to the Japanese economy? We are not going to see

huge numbers, like we've seen come out of India or China. When you look

at Abenomics, is a steady, slow pace but at least it's a pace. From an

investment perspective, we are finding corporate reforms are very

interesting. The past two decades, the governor has lent to

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. Especially the third arrow. You have

various aspects, whether it is immigration or corporate reforms.

But it's a change in mindset for the 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 perspective, 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 since

taking office. More than $24 billion worth of deals have followed. 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: China is

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. He assured his visitor

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, restaurants and retailers, and soared by as much as

22% in US trading. The maker of Photoshop and Acrobat

software posted better than expected numbers because of higher sales.

Adobe's second quarter profits gained 16%. Its shares gaining

nearly 9% in after`hours US trade. A major pipeline will carry crude oil

for export to Asia. The plant pipeline will stretch from Alberta

to the West Coast of Canada. But the project is likely to be challenged

by environmental and aboriginal groups.

Citigroup has paid a record fee for a Hong Kong `` for a Hong Kong

tower. 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.

The football World Cup 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 Brazil

but there's no escaping the World Cup here. The merchandise is

everywhere. And this is big business. Bangladeshi manufacturers

received orders worth more than $500 million. From sportswear giants like

Adidas and Puma. We export more than a million pieces, which can

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

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

flags, caps and other stuff, all together I'm sure the business is

around $1 billion. The World Cup merchandise is made mostly in China

and Bangladesh. The two major players in the global clothing

industry. Bangladesh is also catering to the domestic market.

There is World Cup fever here. As you can see, the shops are selling

T`shirts, flags and caps 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 don't think we should take our buyers for

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

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

like Ethiopia opening up. There is a population hungry India, where they

are going to take more business from us. For the moment, the exports 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 exports. The

industry has the potential to change the lives of millions of people. If

the manufacturers can strike a balance between low`cost production

and safety standards. For more news on the World Cup and results, go to

the BBC website. Thank you for watching. The sport is

next. This is BBC News. The