24/06/2014 World Business Report

with America. Those are the latest headlines from

BBC World News. Now for the latest financial news with Sally.

Shinzo Abe prepares to cut Japan's corporation tax ` one of the highest

in the world. And deregulate the labour market. And, Dad's the word `

the rise of stay`at`home fathers in America.

Welcome to World Business Report. I'm Sally Bundock. Also in

programme, we'll look at the Sri Lankans being forced from their

homes in the name of progress. But first, they call it 'Abenomics'

` Shinzo Abe's road map to restoring Japan's economic prowess. Later

today, the Prime Minister will detail his reforms designed to make

Japan a better place to do business. That's expected to include cutting

one of the highest corporation tax rates in the world. We're also

expecting less bureaucracy and red tape in the labour market and a

range of sectors such as night clubs and dance halls, and reduced visa

requirements for foreign firms wanting to start up in Japan. This

is known as the third arrow in Abe's plan to get Asia's second biggest

economy in better shape. Is it working? Seijiro Takeshita is a

Senior Strategist at Mizuho International.

Let's begin with some of the key elements, the deregulation of the

labour market, the corporation tax coming down. To what extent will

this help the Japanese economy? It will help a lot, especially

considering the moment involved. There is spending by the

corporatist, and to have enterprise tax reduction would not only

increased momentum but induce foreign direct investment back into

Japan. That will hold a lot of Japanese companies going out of

Japan as well `` halt. That will kill three birds with one stone. As

you mentioned, these things do not happen right way, but it is a basic

foundation for Japan's future. It is very important. He is taking on some

unpopular areas as well, like the farming community. That adds 1% to

Japanese GDP. What is he planning there? He is planning to tackle

investment interest. If he succeeds, I will praise him highly. The reason

for this is that we have not seen this for decades. Farming

Association, for example in Japan, as you said, they make up 1% of GDP

but hold up 4% of the population. They have the votes. They have an

extra power in Japanese politics. They can open up Japan, and the

Trans`Pacific Partnership, all of these regulations and international

strategies that he wants to do, if he tackles walls like them, it would

have a smooth inclination in years ahead. How is Abenomics working? We

have seen the yen, down in value, sales tax go up, and today's

announcements, it working? Japanese courts are coming back on track, I

think the market and the people are too hesitant about the results of

the third arrow, as we said, these are structural and conditional

issues, it will take a long time, as early as next year, and people are

expecting results. Either way, the Japanese, especially in

macroeconomic situation is, they will improve by the end of the year.

Thank you very much for your time, and when we get the full

announcement Shinzo Abe, we will update you.

Let's now go to the United States. `` the full announcement from

Abenomics. `` the full announcement from Shinzo Abe.

In the United States, the number of full`time fathers has doubled in a

generation. Initially men laid off from their jobs in traditional

industries like car`making took over running the home while their wifes

and partners worked. But, as Samira Hussain reports, increasingly it's a

lifestyle choice. It is no special treat to have these two dads racing

cars with their sons on a weekday afternoon. While their wives are at

work, they take care of their little boys. The two stay at home dads. It

was very important for us, over the first couple of years, to have one

of us at home. It was a natural fit for it to be me. I went Tin

extremely nervous. With a lot of reservations. `` I Win Tin. I didn't

know if I would embrace my role. Six years and is leaving his role as a

public school teacher, he has no regrets. It helps that more fathers

are taking on what has long been considered as woman's work. The

number of fathers who stay at home with their children has doubled in

the last 25 years. In 1989, there were 1.1 million stay at home dads.

Now that is 2 million. Increasingly, the dads who have chosen to stay at

home have done so to care for the family. Four other men, factors like

not being able to find a job or a disability has led them to stay at

home. Despite these advances, there is still a perception that staying

at home with the kids, is the mother 's job `` for other men. There is

this idea traditionally that mothers are more caregivers then dad. ``

than fathers. But 41% of the public think that coming a stay at home

mother is give the kids, only 8% say the same about dads. We live in New

York City, you do not see that many does, especially nine years ago,

pushing a stroll down the street, 10am on a Tuesday morning. I felt

that the world was judging me, I felt that the world was looking at

me. Really, in the end, in most places, people really do not care

what you are doing. What better listen to teach his own two boys?

In other business stories, France is bracing itself for another day of

travel disruption. One of the main two unions representing air traffic

controllers is holding a six day strike. The SNCTA called off its

protest against planned government cuts in what is being seen as a

climb`down. The Civil Aviation Authority says it expects three

quarters of flights to operate despite the action.

South African mining union AMCU is set to sign a new wage deal with

platinum companies on Tuesday, ending the longest strike in the

country's history. Miners walked off the job in January in a dispute over

pay. The world's biggest Platinum producer Lonmin and its peers have

agreed to raise average wages by 20 per cent over three years `

equivalent to an extra $94 a month. Since the end of the civil war, the

physical face of Sri Lanka's commercial capital Colombo has been

radically changed. As part of what the government calls

"beautification", long`standing low`income areas are being

demolished to make way for prestige developments. It is like a mini Sri

Lanka, in the beating heart of the city. In Slave Iskand, Muslims,

Buddhists, Christians and Hindus, jostle side`by`side. Life is lived

on the streets and in the alleyways. Most people here do not

have a lot of money but value their way of life. This woman from the

ethnic Malay minority watches the world go by. Now 65, she was born in

the same house which now shelters her large family. She is unhappy, it

has been earmarked for demolition. I do not want to go, I want to stay in

Slave Iskand, she says. `` Slave Island. They want a Colombo that can

rival Singapore. They want to demolish these lands the commercial

purposes. In recent months, entire streets of those small intimate

houses have been flattened. That results in this. Luxury high`rise

flats and hotels have come up, like these mushrooming in the city. Slave

Island includes India's Tater, and in the suburb of more modest flats

from people evicted from Slave Island, like this man and his

family, they were displaced some years ago. He says it is nice that

they're old neighbours have moved here, but they got no payment for

their old house, but a small sum towards rent. Some human rights

campaigners say that the people of Slave Island are being unwillingly

forced out with no consultation, the urban development authority is run

by the powerful defence Ministry, people fear protesting. The

authorities say that the move from houses to flats is natural. In the

second generation, people will get used to that situation, it happened

in Singapore and in other countries, it is normal social behaviour. They

have promised to build flats for the locals, where the old houses were,

next to the new luxury blocks. That will help them keep something they

treasure about Slave Island, its centrality, but the architectural

heritage and unique atmosphere is passing into history.

We have a mixed session emerging, Japan are down slightly. That is

everything from World Business Report, I will see you soon.

We are going to have a look at the newspapers in a moment, but first,

let's talk about the living wage commission. It is recommending that

measures be taken to cut the number of low`paid workers by one million,

to end the national scandal of poverty. A year`long study by the

Commission recommends a series of moves to tackle low pay, but stops

short of making it