16/07/2014 Asia Business Report

a fresh team, with an aim to move the country forward. Let's go to

Singapore for the latest business news.

Is China's economy stabilising? We have a look at the impact of

stimulus measures on the property sector. And, concerns from the head

of America's central bank that social media companies are

overvalued. Thank you for joining us. All eyes

are in China this morning, as we await fresh data over the next 30

minutes, which will reveal how much its economy grew in the second

quarter. Many analysts are expecting growth to remain steady, thanks

largely to increased government spending and lending. These stimulus

initiatives have done little to ease concerns about the possibility of a

sharp slowdown in the future, particularly in the property sector.

We have more from eastern China. Despite the looming clouds on the

economic horizon, this city, like so many others in China, has just kept

on building. Now, though, it may have become the first to face the

storm of overcapacity and unsold housing stock. This year, something

previously unheard of is rife, massive property discounting. This

brand`new apartment is being advertised with 30% off, leaving

those who paid the original price furious. China has been through

property wobbles before, the question this time is whether it is

just another adjustment, or something more serious and systemic.

Some observers suggest that if this country's massive construction boom

really is unwinding in a catastrophic way, then it could wipe

two percentage points or more of GDP at a stroke. Many analysts fear that

China's property market for years, such an important engine of growth,

has begun to pose the biggest risk, and there is talk of further

government action to support home sales. Others, like this estate

agent, say the danger is limited. Chinese families have lower debts

than those in the west, so they have less vulnerability to price falls.

He says it is all about the sheer weight of numbers. People from the

countryside are still flooding to the cities for better education and

a better life, he tells me. The demand will always be there. The

Chinese government agrees. It is urbanisation, it says, that will

ultimately keep growth on track, but if so, critics are beginning to

wonder, why are so many new homes will empty and why are prices so

damp? `` still empty.

The American central bank is with the most powerful institution of its

sort in the world, and controls billions of dollars of funds. So,

when the boss, Janet Yellen, speaks, the world tends to listen.

Today, she spoke about biotechnology companies and social media

companies, and other potential global signs of warning for the

community. Valuation metrics have increased, and they remain generally

in line with historical norms. In some set is, such as lower rated

corporate debt, valuations appear stretched, and issuance has been

brisk. That was Janet Yellen, the central bank chief of the US. Mark

McFarlane is the chief economist, and I asked him what is behind Janet

Yellen's concerns. It has been talked about a lot, low interest

rate reading financial excess, and Janet Yellen is effectively warning

that rates could go up and give to be careful. She also talks about the

economic outlook, and she continues to champion Lewis loose economic

monetary policy. It is likely that tapering will continue, but interest

rates will stay low. How do you think this will impact the monetary

policies of Asian central banks? There are two types of central

banks, those linked to the dollar, at the Hong Kong exchange. The

policies that are linked to the dollar will automatically follow. It

doesn't necessarily follow domestic conditions. You mentioned New

Zealand's, which has higher interest rates, and in China and India. What

about the economies that have basically kept interest rates low

with loose monetary policy? How are they likely to react and move with

this latest statement of Janet Yellen? Well, you have the bank of

Korea, which is likely to keep interest rates climb. `` loan.

Shares in Intel have gained 4%. Profits rising 45% in the second

quarter to $2.8 billion. Driven by stronger than expected sales, Intel

also predicted stronger than expected revenue growth for the

remainder of the year. Shares in the internet giant Yahoo! Have rebounded

after a lacklustre earnings report. Revenue also fell, dropping 3% to 1

billion. Most of the decline was due to a sharp drop in digital display

advertising, which plunged 8% in the second quarter. Apple and IBM are

joining forces to codevelop business centric applications for iPhones and

iPads. IBM will also start selling Apple's mobile devices pre`installed

with software for business clients. They were one`time rivals, but

experts say it is too soon to know how significant the deal will be.

The leaders of the world's largest emerging economies in Brazil have

signed a deal to create a new 100 yen dollar development and emergency

reserve fund. The first president for the bank will be from India. Our

South America correspondence is in Fortaleza, Brazil, where the leaders

have been meeting. She explains the reasons behind this. I think the

fact is that the BRICS countries have felt that they lose out when it

comes to financial institutions. They feel that they are emerging

economies, they hold 40% of the world's population, so why should

they not have more of a say when it comes to lending? That is what this

bank is about. It is what resident Dilma Rousseff, the Brazilian

President, talked about. The fact that BRICS have a chance to change

for the good, in terms of making things fair and equal. The idea is

that they can fund things in developing countries, and they can

extend outwards to other emerging markets. They can have a bit more of

an influence, really, on emerging markets in the world. What will

happen if the International monetary fund, in this new body in the BRICS

group of nations, have different or contradictory approaches to dealing

with the financial crisis? I think this is one of the big concerns.

Critics talk about the fact that BRICS are often more rivals than

friends, and up until the announcement was made earlier on

Tuesday there was concern that the headquarters in Shanghai, that India

would want to have a say in it, and there would be rivalries between the

countries. It is still very early days, they need to iron out some of

these issues. The bank hasn't started yet, and how this money will

be spent is going to be very important. Most of the crucial thing

`` one of the most crucial things is that the same amount goes in from

each country, and that will be hugely important in developing it.

For more than two decades the global aviation industry has been dominated

by Boeing and Airbus. Asian players have yet to make much impact, but

Nigel Cassidy caught up with one of the main challenges. The CEO told

him how they are coping with concerns for the prospects of their

C series plane. We had a little issue with an engine, we have worked

on that. We are now testing for the root cause, making modifications to

the engine, and we feel conned and we can be back in the air in a few

weeks. In terms of orders or potential orders, you are in a

slightly better place than you have been. Absolutely, we have announced

five customers for the C series. It has 150 seats, and there will be the

it for about 750,000 aircraft over the next 20 years in this segment.

We feel we can take the lead. That was Bombardier's CEO.

Asian markets are flat to lower, after the Fed reserve chairwoman,

Janet Yellen, raised concerns about high price values in social media

and technology stocks. The GDP numbers will be coming out in about

20 minutes time, and they are waiting for that as well. Thank you

for investing your time with us. Sport today is next. `` sport Today.

An attempt to introduce a ceasefire in the Gaza Strip has failed, with

rocket attacks