22/08/2016 Asia Business Report


22/08/2016

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Now on BBC News, all the latest business news live from Singapore.

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Has the Olympic Games come to an end, next stop, Tokyo. The 2020

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Olympics, could they ignite the sluggish economy? And could this

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football club become the next target for rich Chinese investors? Good

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morning, Asia. Hello, world. I'm Rico Hizon. In glad you could join

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us for the Monday edition of Asia Business Report. The 2016 summer

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Olympics is ending. The flag will now be passed to Tokyo. The 2020

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games have already been hit by a number of scandals, including

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corruption allegations. The biggest headache of all is the ballooning

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cost. The budget was just over $7 billion. But now with a swell it has

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gone to as much as 30 billion US dollars. That will make the Tokyo

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Olympic Games the most expensive ever. Is at work that? I spoke with

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an economist in Tokyo and asked them if this will jumpstart the Japanese

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economy? It will definitely help Japan. Tokyo is a construction

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industry. But for the taxpayer as a whole I think it will be very

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wasteful to spend it on sport. Where can the government save in boosting

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the Games? The Governor has been quoted in The Japan Times saying

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that he will definitely try to save on many venues and make it useful

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going forward after the Olympic Games. The Japanese government and

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the Tokyo government should definitely try to cut as much as

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possible. Given that they have committed certain infrastructure for

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the Olympic Committee I think there is a limit to how much they can cut

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down on infrastructure. But if they do spend on infrastructure, to build

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all these new venues and roads, how will this help the Japanese economy?

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This is a big spending projects. This will definitely help Japan's

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growth, at least in the medium term. 2016- 2018, in the run-up to the

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Olympics. It is estimated that because of this investment, the

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Japanese economic growth will be boosted by 0.1- 0.2%. It does help.

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But the question is, is it worth it? Is it, in your view? No. I am of the

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opinion that Tokyo should not have become the host of the Olympics. Now

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it is too late. But as I said, the Japanese government and the

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governors should attempt to reduce the inefficiency as much as

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possible. From Tokyo. Profits in Australia's Blue Scope Steel missed

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expectations even though they doubled their demands. They made

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$230 million in the year until June, 110% of a rise in profits. The Chief

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Executive expects the global steel glut to remain for some time despite

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the shutdown of some Chinese facilities as the country tries to

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reduce pollution. The operator of the Hong Kong stock exchange has

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introduced measures affected the day to deal with extreme price waves in

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the stock market. It will restrict stock from moving more than 10%

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during a five minute period during the trading day. That is similar to

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models used by stock exchanges in Singapore and Tokyo. China's Mertu

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has applied for a share sale in Hong Kong later this year. The selfie app

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is the most popular on the Chinese mainland. It could raise up to $1

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million. Most companies like Alibaba refer to list in the US. After

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months of speculation, the Indian government has appointed this man to

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replace the Governor of India's Central Bank. Who is he? This is a

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promotion. He is currently the deputy governor at the Reserve Bank

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of India who is an economist who has worked with the IMF. Like the man

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currently in the job, he has a reputation for being a warrior on

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inflation, who believes in keeping rates high to keep the cost of

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living under control. What are some of the big issues that the new

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governor will face when he takes over next month? We have been taking

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a look from the capital, Mumbai. His appointment has a thumbs up from

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most analysts and economists. He seems a safe pair of hands, maybe

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even more than the current man in the job. His reputation might be

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different from the previous person. But the situation he faces is the

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same. Cleaning up India's banking system will be a priority. State

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owned banks have been plagued by high levels of bad notes with bad

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economic growth and the delayed infrastructure projects. Given that,

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thanks provide over 75% of credit to individuals, getting their books in

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order is crucial to the well-being of India's economy. -- banks. The

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predecessor kept interest rates high to fight inflation which was close

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to double digits three years ago. Now it has slowed down to about 6%.

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But the RBA has set an ambitious target of reducing a further 24%

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next year. A huge task even the volatility of global food prices.

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Deciding whether to raise or cut rates will soon no longer be the

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only job of the Governor. They are putting in a monetary policy for

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collective decision. It is similar to the one followed in the US and

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UK. The government would have a say on who is on the committee. That is

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while most of the challenges for Patel will be using the system

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without ruining the autonomy of the Central Bank. He proposed a Monetary

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Policy Committee. That is why we will have vested interest in making

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it work and making it a success, the 24th Governor. BBC News, Mumbai. The

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world's biggest pharmaceutical companies are in an ongoing legal

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fight. The Japanese firm bought a stake of the Indian company. But

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there was misrepresentation of data and fraudulent activities. The

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dispute is in India and Singapore. We have more. Most Indians who

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visited a pharmacy like this one would have had contact with a

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factory. They employ more than 10,000 people creating medicines on

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display here. This vaccine is owned by some pharmaceuticals. But in

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2008, Japan's Daijisankyou took a controlling stake in the largest

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seas of an Indian company abroad. Damaging data surfaced a few years

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back and made headlines on financial pages. But most of the medicines

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they make our genetic. It is not something people talk about much.

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Why does this arbitration have the potential to cost it millions of

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dollars? It is unlikely to cause reputation damage in its homeland,

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though. China's Olympic gold medals have been done. It has set the

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target of winning the World Cup by 2050. They have bought much of Milan

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Dhammika AC Milan and Atletico Madrid and others. 26 years since

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Liverpool last won the top flight of English football. For two decades

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before that they were absolutely dominant internationally and

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domestically. But with the exception of the Champions League victory in

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2005, it has been relatively quiet for Liverpool fans. Any investment

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in the club, whether that is a stake or something more, could enable the

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club to buy the kind of players that win leagues like Pogba, Neymar, or

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Ronaldo. The clubs says it is not for sale of course. But it has

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hinted it may sell part of the business. China, of course, has been

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buying a load of European football clubs over the last two weeks alone.

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-- lot. It has Aston Villa, Atletico Madrid, AC Milan, Inter Milan, and

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just to name a few. China has a stated goal of winning the World Cup

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by 2050. To do that you need to get the populace interested in the sport

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and playing the sport, and where better to start than taking a stake,

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whether large that is, in a major European club. Before we go, a quick

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look at the stock market. We can see now, previous investors will be

:10:09.:10:12.

focused on oil prices, dollar weakness, and the Japanese yen. The

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Nikkei is up by 28 points currently. The All Ords Index is flat or lower.

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Thank you for an the singer to Nina us. I am Rico Hizon. Sport Today is

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up next. I am Greg Olsen. The top stories

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now.

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