17/01/2014 Asia Business Report

Mikaeel Kular, the three-year-old boy who has gone missing in

Edinburgh. Now, it is time for Asia Business

Report. Global prospects, what is the year

have in store for Asia and other major economies? And, India looks to

tap into Myanmar, but will investment opportunities their pay

off? Welcome to Asia Business Report. We are into the third week

of the New Year, and both the World Bank and the International Monetary

Fund have been optimistic about a pickup in the global economy. The

World Bank also said it sees higher growth in America, which suggests

that the Federal Reserve's aggressive monetary policy measures

are actually working. The American Central Bank will welcome a new

chairman in February. In his final appearance, Ben Bernanke said it had

enough tools to manage its policy. I think we have plenty of tools at

this point, we have developed all the tools we need to manage interest

rates, to tighten monetary policy, even if the balance sheet stays

where it is a bit bigger. Because we can do that, that means that we can

run monetary policy the normal way, and avoid any risks of undue

inflation or such problems. I don't think that is a concern. Earlier, I

spoke with Fred Newman from HSBC and asked for his reaction to Ben

Bernanke's comments. With a fairly upbeat US economy, the bad news

seems to be behind us, the devastating news of the global

financial crisis. I think he can tap himself on the shoulder. There are

still problems ahead, but the economy is stabilised, and he does

point out, for example, that the large balance sheet that the Federal

Reserve has, shouldn't be a problem in the years to come. It is

interesting when you see how Asian stocks finished up at the end of

last year. Ricky upbeat, but the last few weeks have not been very

good. -- pretty. What is your view on how things will go in the next

few months for Asian markets? Asian markets often anticipate business.

They had some strong movements last year anticipating some of the

movements of the global economy. There are still dangers lurking in

the economy, for example we see disinflationary pressures. In the US

and Europe it is very low, which is bad. Markets over time. The GDP

figures are coming out in China, what do you expect to see? A slight

deceleration. It did very well in the first quarter, but some data

suggests that China is slowing down. It is not a collapse, but a slight

slowdown. We might see new weekly growth echoes the reform process

itself is weighing on economic demand. Looking into that crystal

ball of yours, Tommy what you think will be the big thing we need to

watch out for when looking at the Asian economy this year. -- tell me.

It is not just a Chinese issue, it is an Indian problem, a Japanese

issue, Southeast Asia. They have to reform the economy is to rescue

growth. This week we have been looking at property sectors in Hong

Kong and London. In a final instalment, we caught up with the

founder of Singapore -based capital land. She asked him what qualifies

as a hot property market. I definition of hot property market is

what they see as high return and high risk investment. You commented

on money going in and seeking high and fast returns. Is there a danger

that some of the cities could be experiencing a bubble? In the city,

in the first place, there is some control over how much you can pay

for your mortgage. The leverage cannot be 100%. In Asia, in

Singapore, you only get about 60%. So, you have 30% scheme inside your

investment, the bubble happening is less because unless the value is

beyond 40%, then you have bust. Now, over two Myanmar. China became its

biggest trading partner. Now, with Myanmar opening up its trade with

other countries, India has seen an opportunity. We went away trade fair

to find out more. There are strong historical ties

between the unmarked and India. Odds of Hermes Indians live here -- lots

of earn these Indians -- Burmese. In terms of trade and investment here

India lags a long way behind. In the struggle for influence here between

China and India, the two economic superpowers of the region, it has so

far been China who has been coming out on top, with little concern for

democracy or human rights. Over the last several decades they have

invested the lens of dollars in an oil and gas pipeline, and

large-scale infrastructure projects. But the relationship with China has

cooled, and countries such India are sensing an opportunity. At the

moment, India imports more from in the -- Myanmar than it exports. The

time is never so late. How easy is it to do business here? Does that

put off some Indian companies from coming here? I would say that Indian

companies are still not clear about the political scenario of this

country. They are still looking forward to, they are waiting for

2015, then it will be much clearer. After the election in 2015. Those

two there are all sorts of tactical device is being sold at this fair,

irrigation systems, solar panels... This is by far the most popular of

the stalls. Look at this. Of course, the Indians are not the only

ones celebrating opportunity here. Many Western countries have

established a presence here in Myanmar. Hermes hope the companies

don't just come here to sell their products, but that they invest money

as well. One week into the US and earnings

season, and many are looking for indications of corporate America is

starting to invest again. The trend for several years has been to cut

back on spending. We take a look at whether companies are taking a fresh

look at investing in their businesses.

One tile at a time, these workers are transforming this 9000 square

feet space in Brooklyn into Jonathan Butler's newest project. He is

bringing his successful summer outdoor food market inside. This is

our first venture into bricks and mortar. We have been operating as

businesses that are open, that pop up on the weekends and have gone on

Mondays. We thought it was time to put down some routes and get some

seven-day a week business. Many are hoping this will become a trend in

corporate America. Now that the GDP looks to us to be the most stable

and consistent asset in the world, CEOs are starting to feel more

confident that they can loosen the cough is a little bit. It is not

just a GDP that is looking good, but Washington is no longer dragging

confidence, and the Federal Reserve is starting to ease its financial

support of the US economy. Indications point to a Woolwich

market. -- bullish. If the economy is doing better and producing more

goods, it will be healthier, stronger, and more wealthy. Beer and

food, the winning combination that made this company invest. Now it is

a matter of other businesses doing the same.

Damping results from America have cast a shadow on Asian trading this

morning. Our top stories: The Afghan Taliban

have told the BBC they believe they are winning the fight against NATO