10/04/2014 Asia Business Report

murdering PC Keith Blakelock during riots in north London in 1985. Nicky

Jacobs was accused of attacking him with a large knife. Now on BBC News

all the latest business news live from Singapore. Toyota announces a

global recall, millions of vehicles heading back to Garrard says. And

eyes on China. `` garages. Welcome to Asia Business Report. We start

today with the carmaking giant Toyota. Questions are being asked

about its production processes after another major recall. This time

million vehicles are being affected. Yaris, and other models have

potential problems with their airbags, which don't always inflate.

No accidents have yet in associated with these problems. I asked our

correspondent how investors are likely to respond. Looking at stock

prices yesterday, they have fallen off 3% yesterday. Given that it has

risen about 60% over the past year, this event was more of an

opportunity for investors to take profits from the table. I think the

short`term ramifications tend to ease off as the issues are

forgotten. More marketing campaigns will be given. You also have a

fairly weak yen, which will help exports, as well is the consumption

tax. They are supportive of repatriated earnings. Earnings for

the Toyota have doubled its profits last year. They will experience a

profit not experienced since 2007. You are right that consumption taxes

will affect domestic sales. Looking at their vision, they have a more

regional and international outreach. Therefore, it might soften

the impact on the consumption tax hike. Staying with the car industry.

The BMW group has reportedly sold more than 112,000 BMW at Rolls`Royce

and Mini vehicles. It is their best ever results. It is an increase in

their last record high, from March 2012. The Bank of America has agreed

to pay 783 million in fines and refunds to settle accusations that

it misled customers about red card services. Some of that will be paid

in penalties to regulators. The pay`out relates to the giant's

representation of identity theft services from 2010 and 2012. More

light will be shed on the health of trade balance and economy. The

outlook for trade in China and its potential impact on the rest of the

world. I spoke with a correspondent to ask about what we can expect to

hear from Beijing later today. We are looking for a moderate influence

from the trade figures in the last month. We think this is the start of

a period of adjustment for the Chinese economy. Trade will start to

play a smaller role. The overall growth picture, by design, and

partly as a result of the downturn in the economy in China. Trade is

dependent on the external picture. That is stable. So we expect

external demand to be relatively intact for this year. Overall,

policymakers in Beijing want a reduced the external vulnerability

of the economy and reduced the potential for shocks which they

experienced in 2008 in 2009 during the financial crisis. You are

calling this an adjustment by Chinese authorities. They also

announced a small stimulus last week which they hope will help lift some

of the slowdown projected for the economy. Do you see this happening?

What the stimulus really is is moving some projects Ford which were

scheduled for later this year. We will see what that does for the

coming few quarters. Overall, I think they are not keen on bailing

out the old model, they want to ease out of the period of rapid growth.

These kinds of infrastructure projects, are relatively good ways

to do that. I think there may be more to come later this year if

growth continues to weaken. We don't see this as stimulus so much as

stabilisation. I think they will reassess when we get to June and

July. The IMF is worrying about rising debt levels. The fund, which

is often referred to as the lender of last resort, warned that the

issue poses a risk. Our correspondent was in Washington and

has been speaking to the director of IMF. One topic being discussed

inside the headquarters of the IMF is how it years of cheap credit have

led to a rise in corporate debt. In fact, in emerging economies, it has

surpassed levels seen before the crisis. That worries those seen

inside this building. The director told me that the prospect of lower

interest rates and slowing growth could mean some companies in

emerging markets could have difficulties paying back the money

they have borrowed. The corporate debt in emerging markets, the

significant fraction could be a risk. 35% of corporate debt in many

emerging markets would be owned by firms which would have difficulties

in servicing their debt obligations. Given their worries about corporate

debt, I also asked him what lessons can be learned from the recent

failure of a Chinese company that defaulted on its debt. This led him

to address another concern, China's shadow banking system. It is very

important, given the growth in this in China, the so`called shadow

banking system, it is important that these small defaults can play a role

in taking out moral hazard, and making investors and savers are

where of the risks which are associated with higher returns. D on

the national level, Walmart wants to see greater global co`operation. As

ever, with countries facing different challenges at different

stages of development, that is easier said than done. To Walmart,

which is going ahead with plans to build another 50 stores in India.

That is despite possible policy changes which could arise should a

new government win the election. Today could mark a turning point as

voters go to the polls. Our correspondent in Delhi. Why is the

retail sector so controversial in these elections? Absolutely, it is

almost one of the key points this election. There is a sharp divide

between the ruling party and opposition on where they stand on

opening up of the retail sector. The sector in India itself was opened up

almost one year ago, but no big player has opened shop here yet.

There is a cash and carry and whole`cell format, for BJP, and it

has taken many by surprise that they have announced 50 new stores. It was

in all the papers. The opposition party just came up with its

manifesto, saying they would scrap the policy if they came to power.

The main constituents who vote for them are small traders who would be

affected by this decision when it happens. So BJP has constantly been

saying it would affect traders in the country. And most of the sector

is not well organised, and small stores would fear for their jobs. If

you bring in big players, the supply chain will be in Hants, and jobs

will be created. With BJP, despite their manifesto, they will need a

coalition to form government. What are the odd that this declaration,

that they will be able to follow through with its? That is the thing.

Even if it is the Congress, or the Asia Business Report, anyone who

comes in almost probably have to have a coalition with small regional

players. In