14/07/2014 Asia Business Report

from the NHS `` tooth decay. Dentists say that the main cause is

busy drinks `` fizzy. Carbon taxes repeal. Australia abolishes its

controversial tax. Brazil is one of the world's must closed economies

and exporters are hoping to move over to China and India. Welcome to

Asia Business Report. It is a big tax that affects the business in

Australia but it is in a bit of trouble. The controversial tax on

carbon pollution was originally aimed at tackling the effects of

carbon change and was introduced in July 2012. It has forced the carbon

producers to pay to pollute. The Prime Minister promised to get rid

of the tax and is doing his best to have it scrapped. The legislation is

expected to pass the upper has next week but is facing tough opposition

and is going back to Parliament today. Our correspondent explains.

Tony Abbott is on a mission to abolish the carbon tax and has had

this controversial levy in his sights since it was introduced under

a Labour government A2 years ago. He says it is the hand brake on

economic activity and that it will cost families with different ``

higher power bills and will damage confidence in the economy. That is

why he is so keen to repeal the tax but we have seen that there has been

a bit of a roadblock in terms of opposition in the upper house of

Parliament. Who will be the winners and losers if the legislation and

tax is repealed? You have to remember that the tax was introduced

to put a levy on hundreds of Australia's big losers who are now

forced to pay for permits for over consumption of green has gases. The

government insists that household energy bills will come down if it

goes through and also that associated costs for business will

as well but detractors of the government of Tony Abbott say that

the carbon tax is essential in terms of safeguarding the action against

climate change in this country and even foreign politicians as far away

as Britain believe that the government is being reckless in

getting rid of the tax. The government believes that after a

huge and Parliament last week, it will be repealed this week. The face

of the oldest department store in Australia, David Jones hangs in the

balance as to whether a takeover by a local grocery store worth will go

ahead `` Woolworths. Japan's Prime Minister has renewed his promise to

create a better working environment for women saying that their power is

crucial to the success of the economy. This follows embarrassing

incidents next `` in element in which female politicians were

ridiculed. The heads of Russia, China India and South Africa and

Brazil will be gathering in the northeastern coastal city for a

summit on business in Brazil and it is expected to create a new

financial institution aimed at challenging the likes of the World

Bank. Now we go to our correspondant. This is just one of

the 800 million pairs of shoes Brazil produces every year. As the

largest footwear maker in the world, it is a potentially lucrative

industry for exports. The company produces more than 9 billion pairs

of shoes a year and exports to over 90 countries but 90% of the shoes

that they make here remain in Brazil or South America. It is one of the

world's most closed economies with exports constituting just under 8%

of GDP. While commodity hungry China is their biggest trading partner

coming it is a threat in other industries. They are one of our main

competitors for exports in shoes and we are competing all the time the

cousin of one temp `` because no one can produce shoes to the same extent

and at the same prices as China. The slight realisation of China's

potential has led to some calling Brazil rejectionist which they don't

feel is fair. TRANSLATION: We're going through a in our development

where we need to protect our country because it is on the path to

development so that analysis is not constructive and we do not believe

it is true. The challenge is that it is a very different economy to China

and has higher labour cost. But the difference is can be a good thing.

Demand is high. What we have to do is find a niche between low`cost and

high`cost production. We can be very competitive in the medium stage.

That is what this company is doing. Just 2% of its exports go to Asia

but it is trying to focus on China and India. It it succeeds, it will

be a step in the right direction `` if it. Hony Capital is buying Pizza

Express for $1.5 billion. They have dozens of of restaurants locally and

abroad. A Chinese Internet giant Ali Baba is rising in the Wessex

securities Exchange Commission's index of businesses. This comes just

weeks ahead of their highly anticipated listing on the New York

Stock Exchange. To continue with that, a new report by Ernst Young

shows that there has been a pickup in activity in the Asia`Pacific in

which there were more shares in the second half of 2014 than in any

other region `` first half, and many of them took place in Hong Kong and

Tokyo. I spoke earlier to a correspondent from Earth extend

young and asking what was driving this `` from Ernst Young and asked

what was driving this. We have seen unprecedented low volatility since

the financial crisis so it has been a good marketplace for IPO's to get

into. China came back online during the second half of the year and that

Hunter but it 55 IPOs in the first half of the year `` and that

contributed. That many have been downgrading economic growth `` but.

Why hasn't this deterred companies from going public? Everyone wants to

get ahead of the storm and if the markets are not looking good in the

long`term but they are in the moment, evil will make hay in the

sunshine `` people. We're seeing this in the United States and

Australia in which there is a lot to venture capital exits when people

recognised that there is an opportunity to get the money out.

What sectors have been aggressive with these new stock listings? All

technology. But if you look below that, financials, a bit more energy

particularly out of Australia and other parts of the world and

increasingly healthcare which is a new theme. We saw 75 healthcare IPOs

in the last the month and we will see much more of that in the next

six months. With two thirds of the global population here in Asia. Are

we likely to see the second half being better than the first or will

this excitement over initial public offerings taper off? We have a lot

still left to come out of China, 55 still to come domestically. The big

whale on the horizon is Alibaba. The numbers are looking good for the

second half. A quick look at the stocks here are getting a lift. ``

Asian markets. Thank you so much for investing your time with us.

I'm Chris Rogers. The top stories this hour. Germany defeat Argentina

in Brazil by a single goal scored in extra time. It's their fourth World

Cup victory and the first since German reunification. Fury on the

streets of Gaza, as the latest victims of Israel's bombardment are

buried. 172 Palestinians have now