29/07/2014 Asia Business Report

opens for new licences to extract shale gas. `` bidding. Those are the

latest headlines. Now on BBC News all the latest business news live

from Singapore. The green light to recall mine that

could provide power to millions, but environmentalists are worried. `` a

coal mine. And a Chinese bass at the centre of the food scandal. It is

all about wielding respect and trust in the management of systems aren't

that integrity. `` and their integrity. The Australian government

has approved the construction of the biggest coalmine.

Its could provide electricity to millions, but could threaten the

Great Barrier Reef in Queensland. I asked how the markets have been

reacting. The environmentalists are concerned about the Carmichael

coalmine being approved. It will be Australia's against thermal coal

operation once it is in production. `` biggest. The environmentalists

are concerned about the amount of coal because there are water tables

and also the area where the call will be shipped. `` coal. Does it

need another mine? How will this address energy needs? This will be

able to supply power stations for a long time to come. The life of the

mine is something like 60 years. Thermal coal as an energy source is

not going to go away. It will incrementally increase. By the time

this project comes into force, we do expect the demand for thermal coal

would have risen. By the mid` 2020. `` Mitt

`` mid`2020s, I expect it will be well used. The country is not happy

with the most recent tax hike. He campaigned and he promised and he

delivered and now his popularity is declining, in part due to those

promises, aimed at bringing Japan back on the path of economic growth.

18 months after taking office, Prime Minister Shinzo Abe's policies are

no longer popular at home. A poll carried out showed his approval

rating for his cabinet fell to 45.6%, which is the lowest ever. 47%

expressed disapproval of the Prime Minister's economic policies. His

most recently implemented policy was to increase consumption tax, a move

expected to spur spending. It is also designed to bring down Japan's

massive public debt. One month after the hike in consumption tax, retail

sales fell at a record price in May. Consumers

held off on spending. The government will need to decide in December

whether they should hike the unpopular tax from 8% to 10%.

Apparently, Shinzo Abe is still very popular despite his economic

policies. His popularity is below 50%. Most politicians would be

envious of his 45% rate. Taxes have been hiked and people are not happy

about it. That is natural. That is the way it is. The underlying

economic recovery in Japan is still intact. A feelgood factor is going

to start coming through in the next couple of months. How is the Prime

Minister trying to bring back voters and boost the rural economy? There

are no easy solutions. Taxes will have to go up further. Japan's

public deficit is more than 250% of GDP. It is not easy. The good news

is the private sector. It is not about the Prime Minister or the

government. Corporate Japan has restructured. They are hiring people

quite aggressively. It is their falling unemployment rate, their

improvement in income, that to swear their feelgood factor is coming from

in Japan. New figures show unemployment in Japan rose for the

first time in almost a year. The jobless rate climbed to 3.7% in

June. The markets had been expecting unemployment to remain flat, but it

may not be as bad as it seems. The Labour Ministry said the number of

job offers rose to its highest rate in more than two decades. More

people are said to be looking for work as the labour market improves.

Nissan has reported a rise in profits, which is a 13% jump. It is

more than triple after they felt the impact of a expansion drive in

lifting its global market share. Microsoft has confirmed that the

body responsible for enforcing business laws in China visited some

of its officers. The firm, which is not accused of any wrongdoing, did

not disclose the reasons for the visit, but it may face an anti`trust

investigation. It says it will answer any concerns the government

have. An American meat supplier which owns a Chinese company at the

centre of the food scare is stepping in to take control of operations.

Husi in Shanghai fell short of high standards. It comes after five Husi

staff were detained last week, following allegations he firm sold

out of date meat to firms like KFC and McDonald's. The firm is now in

damage control. It is about rebuilding trust and respect in

systems with integrity. It is about ensuring that never happens again.

The scandal was not only in China. It also affected Japan and Hong

Kong, where local food safety officers are looking into it. This

McDonald's located in Hong Kong's business district has stopped

selling its products because of a tainted meat scandal. Chicken

McNuggets amongst other items have been pulled from the menu because

they have been linked to Husi, the supplier accused of selling expired

meat. And other parts of the country, hamburgers are also off the

menu. It is no exaggeration that business is to be booming for

breakfast, lunch and dinner and all the hours in between. Now it is

clear they far fewer customers. What do consumers have to say about

eating here? TRANSLATION: I know that McDonald's food is not healthy.

After the news broke, I stopped eating McDonald's because I worried

that more problems would arise later. I am not surprised. I think

that other companies would have similar things, whether this is

exposed or not. There is a mix of opinion here. It is important to

point out that no one has reported being sickened by the expired meat.

They promise to resume selling salad as early as next week, with supplies

from Taiwan or the United States. It is not clear when you can will be

back on the menu. We are looking at the markets now. Retail sales have

fallen .6% in June. Household spending has declined, although not

as much as expected. Elsewhere, the Hang Seng is higher. In Australia,

stocks are flat. We are expecting more Australian companies with

results out this month. That is Asia Business. Intense shelling is

continuing in Gaza, despite renewed international calls for a ceasefire.

The house of the Hamas leader, Ismael Haniyeh, has been hit, but no

casualties have been reported. Earlier the Israeli Prime Minister,

Benjamin Netanyahu, said his country must be prepared for