:00:00. > :00:00.new evidence comes to light. The Sinn Fein leader denies any
:00:00. > :00:00.involvement in the kidnap and murder of Jean McConville. Time for Asia
:00:00. > :00:20.Business Report. Economy versus politics, what role
:00:21. > :00:25.will be central bank lay ahead of Australia's Budget. The Filipino
:00:26. > :00:33.economy, we look at the impact of rising prices on future growth.
:00:34. > :00:37.Welcome to Asia Business Report. Australia's central bank is expected
:00:38. > :00:43.to leave interest rates on hold when it meets today, as the economy shows
:00:44. > :00:48.signs of returning to growth. A much anticipated economic audit released
:00:49. > :00:54.last week warned of a looming fiscal crisis. The government has hinted at
:00:55. > :00:59.a temporary income tax hike, a higher retirement age, and cuts to
:01:00. > :01:03.spending on social services. Earlier, I spoke to our Sydney
:01:04. > :01:06.reporter, Phil Mercer, asking him if the government's view of the economy
:01:07. > :01:13.is at odds with that of the central bank.
:01:14. > :01:18.Interest`rate 2.5%, which is historically low. As far as the
:01:19. > :01:25.central bank is concerned, the economy is in a reasonable state,
:01:26. > :01:28.considering the fading of the mining boom. Conservatives believe that
:01:29. > :01:32.radical spending cuts need to be addressed, that welfare rates are
:01:33. > :01:37.too high, and that they may need to be a deficit tax, for example, in
:01:38. > :01:44.next week's budget, to try to bring that back into surplus. There seems
:01:45. > :01:50.to be a clear gulf between what the reserve bank of Australia thinks,
:01:51. > :01:56.and that of the government. If there is a tough Budget next week, it may
:01:57. > :02:00.be the case that they have to try to counter some cuts. Could that be the
:02:01. > :02:10.case, if growth looks like it is in danger? Next week's Budget could
:02:11. > :02:14.look like that. If they pursue a very aggressive and austere budget,
:02:15. > :02:18.with cuts to spending on welfare, we could see the reserve bank having to
:02:19. > :02:28.wade in to reach is interest rates to pick up slack in the economy. Not
:02:29. > :02:32.only is next week's Budget crucial to the health of the Australian
:02:33. > :02:37.economy, it is shaping up to be extremely important to Tony Abbott.
:02:38. > :02:41.He did mention this temporary deficit levy, and all hell broke
:02:42. > :02:52.loose, with some of his own party members saying it would be political
:02:53. > :02:55.suicide to pursue that idea. Inflation figures for the
:02:56. > :03:00.Philippines are out today, and it seems the basics of life, like food
:03:01. > :03:04.and electricity, will be the biggest drivers of consumer prices. The
:03:05. > :03:09.Supreme Court recently blocked a bid by the country's largest energy
:03:10. > :03:15.supplier for a large hike, and they are trying to import more rice to
:03:16. > :03:23.ease the cost. Figures this morning are expected to see prices rising in
:03:24. > :03:31.the range of 4%. I was speaking to a Filipino expert from credit Suisse.
:03:32. > :03:37.I think inflation should calm down. We have seen a sequential momentum
:03:38. > :03:40.of CPI coming down, so I think that should be helpful in the second half
:03:41. > :03:44.of this year. When you have inflation running at about 4%, is
:03:45. > :03:47.that a risk to growth? The Philippines has been one of the
:03:48. > :03:52.fastest`growing regional economies. Yes, I think the issue for the
:03:53. > :03:56.Philippines is not so much, but too much of it. It is growing very fast,
:03:57. > :04:00.and the key is to make sure the growth is sustainable in the long
:04:01. > :04:06.run. I don't think inflation per se should impact growth. Once the
:04:07. > :04:14.stimulus programme has ended, will interest rates have to rise?
:04:15. > :04:20.Absolutely. What will that mean for growth? I think growth will
:04:21. > :04:23.continue, and if the government continues implement the structural
:04:24. > :04:31.reforms, if it continues its path of reform over the rest of the next
:04:32. > :04:37.three years. A Macau casino operator has come up
:04:38. > :04:42.with a winning hand, raking in $750 million in its first quarter. The
:04:43. > :04:47.territory has hit the jackpot to become the world's gambling capital.
:04:48. > :04:51.Casinos in Macau took in $45 billion last year, earning more in two
:04:52. > :05:02.months than Las Vegas does in a year.
:05:03. > :05:09.This is the newest casino resort from Sands China, in Macau. It is
:05:10. > :05:13.popular destination from tourists from mainland China. More of them
:05:14. > :05:17.are coming, and on average staying for longer. That is translating into
:05:18. > :05:20.profits for the country, which hosted more than 17 million visits
:05:21. > :05:25.in the first three months of the year. Tourists like to state their
:05:26. > :05:30.money on roulette or slot machines. It has become the jewel in the crown
:05:31. > :05:36.for Las Vegas Sands. In the first three months of the year, profits at
:05:37. > :05:43.Sands China jumped by almost 66%, compared to 2013. Ever since the
:05:44. > :05:47.Chinese government launched a crackdown on corruption last year,
:05:48. > :05:52.business from its expanding VIP customers has been under pressure.
:05:53. > :05:57.That has so far been offset by a rise in holidaymakers. So, casino
:05:58. > :06:06.operators are counting on them to try revenue in the coming years.
:06:07. > :06:16.`` Drive revenue. AIG has reported a drop in quarterly
:06:17. > :06:21.profit, due to high losses in its subsidiary businesses. The net
:06:22. > :06:37.income fell to $1.6 million. Last year, it was more than 2 billion
:06:38. > :06:42.dollars. Apple closed $6 billion up for the first time in several years.
:06:43. > :06:49.Last month, they posted its quarterly earnings, which beat
:06:50. > :06:52.expectations. Target says it is chief executive and chairman has
:06:53. > :06:56.resigned. His departure comes after a difficult year for the retailer,
:06:57. > :07:01.which was a victim of a data breach that shook customer confidence and
:07:02. > :07:04.hurt the company's profits. Up to 70 million customers had their payment
:07:05. > :07:08.card and personal information stolen from the company's database is in
:07:09. > :07:15.December. The chief information officer, Beth Jacob, who oversaw the
:07:16. > :07:27.computer systems, resigned in March. What began as one woman's desire to
:07:28. > :07:37.work for herself, has turned into a multi` million`dollar business. An
:07:38. > :07:42.American retailer got its start by selling clothing on eBay, and its
:07:43. > :07:55.owner is one of the people who will be speaking at a conference for tech
:07:56. > :07:59.start`up people. This is Tech Crunch. It is the place to be if you
:08:00. > :08:04.want advice from other success stories. It is events like these
:08:05. > :08:14.that give many tech companies their first big break. Sophia Amoroso has
:08:15. > :08:27.a different story. She is the founder of Nastigal, and is now one
:08:28. > :08:32.of tech's biggest retailers. I had no idea that when I chose the name
:08:33. > :08:38.Nasti Gal, would be saying it over seven years later, but it. You were
:08:39. > :08:43.one of the fastest`growing retailers in the US, to what you credit that
:08:44. > :08:49.success? We have always carried unique pieces. It started with
:08:50. > :08:54.vintage, really memorable vintage pieces, and that was my buying
:08:55. > :08:58.training. We went to trade shows, and now we are designing. We are
:08:59. > :09:06.designing for a girl with an appetite for something unique which
:09:07. > :09:15.cardfile at `` you can't find at the shopping mall. I wouldn't call us a
:09:16. > :09:18.tech company, but I wouldn't call us many e`commerce sites are now
:09:19. > :09:23.opening bricks and mortar stores. Is that something you are considering?
:09:24. > :09:26.And is that something that is necessary for these kinds of
:09:27. > :09:31.companies? We will be opening stores within the next year, which I'm
:09:32. > :09:36.excited about. We will start NLA. I think a brand is best experienced in
:09:37. > :09:42.all channels. While some people have to go off`line to continue going,
:09:43. > :09:47.perhaps their businesses more niche, it is a choice. I want to let our
:09:48. > :09:51.customers touch and feel our clothes. I want to see someone run
:09:52. > :09:57.out of stall happy a shopping bag, I have never had that experience. It
:09:58. > :10:01.is people talking on social media, which is great, but to meet a
:10:02. > :10:05.customer in the real world is an exciting thing. It is that
:10:06. > :10:09.experience, physically finding something perfect, that time for a
:10:10. > :10:21.quick check of the markets. The one market that is trading is up
:10:22. > :10:25.a little, having taken its lead from Wall Street. That is it for this
:10:26. > :10:33.edition of Asia Business Report. Thank you for watching.
:10:34. > :10:41.Our top stories: Nigeria's Boko Haram has admitted for the first
:10:42. > :10:43.time that they are responsible for abducting hundreds of schoolgirls.
:10:44. > :10:44.They have