26/09/2014 Asia Business Report

of her last known movements. Now on BBC News all the latest business

news live from Singapore. India's Prime Minister is looking to

drum up more business on a high profile visit to the US.

China vows penalties after a massive trade financial fraud was revealed.

Welcome to Asia Business Report. India's Prime Minister Narendra Modi

touches down in the US on Friday, a country that denied him these are

four years after religious riots in the State of Gujarat where he was

the Chief Minister. This will be his first visit since taking office, he

is set to meet 17 business leaders including the heads of Google,

Goldman Sachs and others. He is expected to declare India open for

business. Now we go to our correspondent.

Narendra Modi's rousing invitation to foreign companies has already got

some response from the East with his visit to Japan and then his meeting

with the Chinese president ending with the promise of investments in

India worth tens of billions of dollars. But now as the Prime

Minister heads West, can he convince America to do the same? Especially

after the troubled relationship he had shared with the US in the past.

There are American companies which operate out of Gujarat so they have

an experience of how he ran Gujarat as Chief Minister. He also has a

reputation of being good at implementing and delivering on his

promises, so I think what he says he will deliver, that should be

expected. But he may have to do more. US companies, in particular

pharmaceutical firms, are worried about patent protection in India.

And the American drug authority has had problems with the authority of

some medicines produced in the country. But India also want more

from the US. IT firms here are concerned about new immigration laws

in America and what they mean for their staff's work permits. And then

there is the civil nuclear deal, an agreement signed years ago between

the two countries stuck over a dispute about who would be liable if

there was a nuclear accident. There was a deficit of trust. We attempted

to do some big things with the last government but got stuck. But

getting some of these issues back on track would help. India's is already

a place where some American brands have found success. Many more would

like to tap into this large population.

find themselves dealing with more competition than ever before and

exploit this opportunity, the government here will have to ensure

that it exceed passage to India is your for businesses from overseas.

`` easier. India's bureaucracy and its slow

reform have been challenges for the country especially as it attracts

more business from the US. But my guest says India's government is

starting to make changes. We have a government that is more cohesive.

But the key will be at the state`level and if his party can

take state level officers so you can have uniform voice is. `` voice. One

of the issues in India has always been navigating through the

bureaucracy. Over the next several years as the election in the states

occur there is optimism. The US and India, particularly with Modi, there

has been a rocky relationship. Will they be able to resolve these? They

have to. This relationship will be incredibly important. They have to

work through these trade deals. They recognise the importance of

cross`border trade. India and Japan will have had issues, even India and

China, they have had border issues and economic issues as well so Modi

is making an attempt to go out and build those relationships. What does

India need to do to try to compete with the dominance of China,

especially with these huge deals that have been announced with the

Chinese investing in India? 100 million people will be entering the

workforce in the next few years, that is more than a population of

England and France combined. So they are a huge population but they need

to get their infrastructure updated. They need to improve their operating

models for more efficiency and less bureaucracy. They also have to send

a signal to investors through tax changes, but in the past there have

been some rocky roads. In other business news, Apple shares slid by

4%, wiping out $23 billion in market value due to problems with its new

products. It has also faced claims that the new iPhone 6 is prone to to

bending. Apple says they have only received a few complaints over the

bending. Nike shares jumped by 5% in US trade. Profit rose to $963

million because of higher sales during the World Cup. Shares of a

Korean carmaker tumbled to a six`month low over fears of a

strike. Workers have been in a pay dispute with management for months.

Japan's efforts to curb inflation appears to be waning. Core consumer

prices rose in August which is below market expectations. It has been

below the market forecast of 2.3% with the effect of Japan's recent

tax changes. It is 1%, well below the target of 2% of the central

bank. For more news and analysis be sure to log onto our website. China

has discovered almost $10 billion in fraudulent trade deals following a

year`long investigation. Companies faked, forged and legally reused

export `import documents. That is according to their currency

regulator. China also said there was an illegal channel for some tunnels

to move funds. Earlier I asked a financial analyst how this would

impact markets. Chinese companies have been pledging commodities, iron

ore copper, even cornl, against bank loans which they have taken and

reinvest and that money into property and unrelated areas. This

means that the global numbers on commodity imports by China, which is

the significant importer of all commodities, have been inflated much

beyond what analysts had expected. As a consequence, markets are being

riled as we speak because if those numbers were inflated it means

actual demand is much more or less than it seemed to be. We saw

commodity markets being rattled when this was first revealed in June, so

how will markets react now? The whole year has seen commodity

markets doing poorly. They have been falling in gold, that clearly shows

how important China is in terms of all commodity prices. Copper prices

have been coming down since the unveiling of this scandal in June

and one issue I have been looking at is corn. That is American corn

farmers could be impacted if the price of corn is affected. That is

because the numbers were artificially inflated. So it is a

list and not just the iron ore, or copper markets but other things such

as agriculture will have huge repercussions. Exactly. This would

impact on global trade in commodities over the next couple of

months until we can figure out how much of this shadow lending occurred

in China by the banks. This added to the over inflation of magnitudes of

commodities being traded. Formula 1 is the pinnacle of motor

racing where teams spend millions of dollars on their cars and drivers.

Technology affects team chances of winning, so how has it changed over

the years? We will hear from 13 time Formula 1 winner Tim Coulthar. It

has changed so much since I started. When I started there while

the three buttons on the wheels, but now it has been much more advanced.

Now there are 35. Drivers make the adjustments while they are driving

as well. We have much better use of data transfer and storage. Computer

Power has improved and the software that the cars run on enables more

parameters to be logged and data logging as well, that can be

adjusted by the driver. That is all for this addition of Asia Business

Report, thanks for watching. I'm Mike Embley. The FBI has said it

has identified the man who beheaded journalists and aid workers in

Islamic State 80 is. President Obama has warned of the consequences if

the world