19/03/2014 Asia Business Report


19/03/2014

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Treasury says a new design that's more difficult to replicate is

:00:00.3:59:59

needed Now on BBC News all the latest

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business news live from Singapore. A property developer on the verge of

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bankruptcy. What are the risks facing China's financial system?

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Spend or save? We look at the habits of youth in the Asia`Pacific region.

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Thank you for watching Asia Business Report.

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We start with China. The looming bankruptcy of a mainland property

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developer that owns billions to domestic banks is causing jitters in

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the property industry. There are growing concerns about that in

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China, following the first domestic bonds default earlier this month.

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There are also worries about a property bubble in the mainland

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which might burst. A consultant working in property, based in

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Shanghai, shared his outlook earlier. It will cool down but we

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definitely do not see a hot `` hard landing. Back in 2011 we saw this,

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because of a credit environment, property cooled down but it started

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to rebound in 2012 and 2013. Given the current market environment, the

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property market will remain relatively stable in the months to

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come. We hear of ghost cities in China where there are vast areas of

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empty offices and housing. Is the Chinese government contributing to

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the problem? Yes, I think in terms of organisation, in 2000, at the

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beginning of the century the oven is a rate was 35% and now it is 35%.

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There is a huge increase in urbanisation. Local governments have

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very much relied on the property market to find this kind of

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urbanisation so that has resulted in issues like what you just

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mentioned. There are unaffordable prices in cities but in the lower

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tier cities, there is increasing concern about the oversupply of

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property. The US Federal reserve's two`day meeting is under way. The

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biggest test of the leadership of the new chair will be how she shifts

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from firefighting mode back to neutral.

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She is one of the most powerful women in the world. This Wednesday,

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Janet Yellin posts first news conference as chairwoman. On Wall

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Street, economists say that this is a transitional moment for the US

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central bank. The economy is gaining momentum and they are on their way

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and this is why the process of exiting accommodative policy has

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begun. Managing a smooth exit from extraordinary monetary policy

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accommodation is one of the main challengers. What can expect?

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Tapering will continue. The Fed will still buy bonds, just not as many.

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Wall Street is watching whether `` what the Fed will say about forward

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guidance. They have vowed not to raise rates as long as unemployment

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was above 6.5%. Unemployment in America has fallen faster than

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expected but nobody believes that the job market is terribly healthy.

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This threshold will likely be scrapped. The change will be in how

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they nuanced their forecasts, what they call forward guidance. I do not

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think that their timeframe on interest rates will change to 2015.

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But you will see a change in how they talk about it. She may have ``

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she may have more control than any central banker, but it will be the

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health of the US economy that determines when she declares victory

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and lets borrowing costs go up. The Japanese economy has reported its

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smallest trade deficit in nine months. Exports rose nearly 10%. The

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Japanese yen against the dollar remains much higher. That translated

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to another trade deficit for a 20th straight month. Young people have

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access to more information than ever before about personal finances but

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there are more temptations to spend online. What are the youth of today

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doing with their money? Are they saving it or spending it? Are

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reported comes from Jakarta. I do not have trouble paying my bills

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because they keep tracking my expenses from my bank statements so

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I know how much you spend. I can't afford a long`term financial plan

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yet because my monthly spend and my monthly income balance. At my age

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expenses is something that you can't control. We know about needs and

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wants at my age, but I have a lot of wants so I cannot control my

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expenses that easily. Earlier I spoke to an analyst from MasterCard

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which completed a study in financial literacy among young people in the

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region. Most young people at school do not have a lot of money so it is

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only when they start to get a job that they are starting to take it

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seriously. Being more responsible? Things take time. Have you seen a

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difference in mentality between the young in Asia compared to the West?

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Not really. You could say that there can be some conservatism in some

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places, northern Asia and Japan for example, but broadly speaking the

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concerns and issues are the same. It is more about the underlying

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economic environment. The Internet has made it easier for people to

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shop online. How does this get in the way of saving versus spending? I

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do not think it gets in the way. What happens is that people use the

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Internet for information. They rely on their peers and social networks.

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They are thinking about what they need to spend and then go after the

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smaller amounts because they do not have a lot of access to credit in

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they're thinking about the future. `` and they are. What do you want to

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be when you grow up? Or are you too old for that question? Many said

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they wanted to be a pop star. How does this job in Korea rank with

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others? TRANSLATION: The first time ever

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performed in a big stage was through a TV audition show. I was one of the

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contestants and got selected for the top ten. Before, I played in an

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amateur band but not professionally. I never owned anything for singing.

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Sometimes they had to pay to get on stage. For me, those days were like

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a relentless wave hitting the shores again and again. I was not sure

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where my singing would lead me. It is just about doing it, playing

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music. Through this process, my dreams and passion became more

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focused. You get more disciplined and become more organised. That is

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how I grew. To get into Kpop, you have to prepare and work for it. If

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you want to do dance music, you really have to practise your dance

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moves to get noticed. For those who want to play in a band, they have to

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train for a long time until they find opportunities and they can grab

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the chance. The bottomline is that it requires a lot of time and

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effort. `` bottom line. Those already in the business may appear

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nonchalant, but everyone had days of sweating blood. After my debut, the

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hardest thing in my new job was the change in lifestyle. Now I have to

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wake up early in the morning, go to the gym, stick to a preplanned

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diet. They even forced me to quit smoking and drinking. I think the

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coolest thing about becoming a Kpop Star is that I can pursue whatever

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music I like. The fillet true sense of exhilaration, like I have never

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felt before. It is not just the felt before. It is not just the

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fans, but the music that you feel throughout your body. On stage it is

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to be there, able to sing at the top of your lungs.

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Thank you for investing your time with us. Sport Today is next. The

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main news stories this hour. The search the missing Malaysian airline

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has been widened to an area the of Australia. Relatives of passengers

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threatened their hunger strike in protest at

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