:00:10. > :00:19.Economy versus politics, what role will the central bank play ahead of
:00:20. > :00:22.Australia's Budget? The Filipine economy, we look at the
:00:23. > :00:27.impact of rising prices on future growth.
:00:28. > :00:30.Welcome to Asia Business Report. Australia's central bank is expected
:00:31. > :00:39.to leave interest rates on hold when it meets today, as the economy shows
:00:40. > :00:41.signs of returning to growth. But, a much anticipated economic audit
:00:42. > :00:45.released last week warned of a looming fiscal crisis. The
:00:46. > :00:49.government has hinted at a temporary income tax hike, a higher retirement
:00:50. > :00:53.age, and cuts to spending on social services. Earlier, I spoke to our
:00:54. > :00:57.Sydney reporter, Phil Mercer, asking him if the government's view of the
:00:58. > :01:09.economy is at odds with that of the central bank. Interest`rates are at
:01:10. > :01:12.2.5%, which is historically low. As far as the central bank is
:01:13. > :01:20.concerned, the economy is in a reasonable state, considering the
:01:21. > :01:22.fading of the mining boom. Conservatives believe that radical
:01:23. > :01:26.spending cuts need to be addressed, that welfare rates are too high, and
:01:27. > :01:29.that there may need to be a deficit tax, for example, in next week's
:01:30. > :01:36.budget, to try to bring that back into surplus. There seems to be a
:01:37. > :01:46.clear gulf between what the reserve bank of Australia thinks, and that
:01:47. > :01:50.of the government. If there is a tough budget next week, it may be
:01:51. > :01:54.the case that they have to try to counter some cuts. Could that be the
:01:55. > :02:02.case, if growth looks like it is in danger? Next week's budget could
:02:03. > :02:06.look like that. If they pursue a very aggressive and austere budget,
:02:07. > :02:09.with cuts to spending on welfare, we could see the reserve bank having to
:02:10. > :02:23.wade in to reach interest rates to pick up slack in the economy. Not
:02:24. > :02:26.only is next week's budget crucial to the health of the Australian
:02:27. > :02:32.economy, it is shaping up to be extremely important to Tony Abbott.
:02:33. > :02:35.He did mention this temporary deficit levy, and all hell broke
:02:36. > :02:42.loose, with some of his own party members saying it would be political
:02:43. > :02:48.suicide to pursue that idea. In just over a week, we will blow which
:02:49. > :02:52.direction Tony Abbott and his government will want to take the
:02:53. > :02:56.budget. `` we will know which direction.
:02:57. > :02:59.Inflation figures for the Philippines are out today, and it
:03:00. > :03:02.seems the basics of life, like food and electricity, will be the biggest
:03:03. > :03:05.drivers of consumer prices. The Supreme Court recently blocked a bid
:03:06. > :03:08.by the country's largest energy supplier for a large hike, and they
:03:09. > :03:11.are trying to import more rice to ease the cost. Figures this morning
:03:12. > :03:19.are expected to see prices rising in the range of 4%. I was speaking to a
:03:20. > :03:27.Filipino expert from Credit Suisse. He shared his outlook for the
:03:28. > :03:30.south`east Asian country. I think inflation should calm down. We have
:03:31. > :03:33.seen a sequential momentum of CPI coming down, so I think that should
:03:34. > :03:40.be helpful in the second half of this year. When you have inflation
:03:41. > :03:41.running at about 4%, is that a risk to growth? The Philippines has been
:03:42. > :03:46.one of the fastest`growing regional economies. Yes, I think the issue
:03:47. > :03:50.for the Philippines is not so much, but too much of it. It is growing
:03:51. > :03:55.very fast, and the key sure the growth is sustainable in
:03:56. > :04:04.the long run. I don't think inflation per se should impact
:04:05. > :04:09.growth. Once the stimulus programme has ended in the US, will interest
:04:10. > :04:14.rates have to rise? Absolutely. What will that mean for growth? I think
:04:15. > :04:17.growth will continue, and if the government continues to implement
:04:18. > :04:26.the structural reforms, if it continues its path of reform over
:04:27. > :04:30.the rest of the next three years. A Macau casino operator has come up
:04:31. > :04:40.with a winning hand, raking in $750 million in its first quarter. The
:04:41. > :04:43.territory has hit the jackpot to become the world's gambling capital.
:04:44. > :04:46.Casinos in Macau took in $45 billion last year, earning more in two
:04:47. > :04:55.months than Las Vegas does in a year.
:04:56. > :05:04.This is the newest casino resort from Sands China, in Macau. It is a
:05:05. > :05:06.popular destination from tourists from mainland China. More of them
:05:07. > :05:17.are coming, and on average staying for longer. That is translating into
:05:18. > :05:20.profits for the company, which hosted more than 17 million visits
:05:21. > :05:23.in the first three months of the year. Tourists like to state their
:05:24. > :05:27.money on roulette or slot machines. It has become the jewel in the crown
:05:28. > :05:30.for Las Vegas Sands. In the first three months of the year, profits at
:05:31. > :05:37.Sands China jumped by almost 66%, compared to 2013. Ever since the
:05:38. > :05:39.Chinese government launched a crackdown on corruption last year,
:05:40. > :05:47.business from its expanding VIP customers has been under pressure.
:05:48. > :05:52.That has so far been offset by a rise in holidaymakers. So, casino
:05:53. > :06:02.operators are counting on them to drive revenue in the coming years.
:06:03. > :06:10.AIG has reported a drop in quarterly profit, due to high losses in its
:06:11. > :06:20.subsidiary businesses. The net income fell to $1.6 million. Last
:06:21. > :06:37.year, it was more than $2 billion. Apple closed $6 billion up for the
:06:38. > :06:42.first time in several years. Renewed growth for the iPhone. Last month,
:06:43. > :06:50.they posted its quarterly earnings, which beat expectations. Target says
:06:51. > :06:52.it is chief executive and chairman has resigned. His departure comes
:06:53. > :06:55.after a difficult year for the retailer, which was a victim of a
:06:56. > :06:58.data breach that shook customer confidence and hurt the company's
:06:59. > :07:00.profits. Up to 70 million customers had their payment card and personal
:07:01. > :07:07.information stolen from the company's database is in December.
:07:08. > :07:18.The chief information officer, Beth Jacob, who oversaw the computer
:07:19. > :07:22.systems, resigned in March. For more on that story and other headlines
:07:23. > :07:29.around the world, please visit our website. What began as one woman's
:07:30. > :07:33.desire to work for herself, has turned into a multi` million`dollar
:07:34. > :07:36.business. An American retailer got its start by selling clothing on
:07:37. > :07:44.eBay, and its owner is one of the people who will be speaking at a
:07:45. > :07:49.conference for tech start`up people. This is Tech Crunch. It is the place
:07:50. > :07:56.to be if you want advice from other success stories. It is events like
:07:57. > :08:14.these that give many tech companies their first big break. Sophia
:08:15. > :08:16.Amoruso has a different story. She is the founder of the already
:08:17. > :08:20.successful online retailer, Nasty Gal, is now one of tech's biggest
:08:21. > :08:23.retailers. I had no idea that when I chose the name Nasty Gal, would be
:08:24. > :08:31.saying it over seven years later, but it. You were one of the
:08:32. > :08:41.fastest`growing retailers in the US, to what you credit that success? We
:08:42. > :08:44.have always carried unique pieces. It started with vintage, really
:08:45. > :08:50.memorable vintage pieces, and that was my buying training. We went to
:08:51. > :08:53.trade shows, and now we are designing. We are designing for a
:08:54. > :09:04.girl with an appetite for something unique which you can't find at the
:09:05. > :09:22.shopping mall. Arc do you consider yourself a tech company? I wouldn't
:09:23. > :09:25.call us a tech company, but I wouldn't call us many e`commerce
:09:26. > :09:27.sites are now opening bricks and mortar stores. Is that something you
:09:28. > :09:31.are considering? And is that something that is necessary for
:09:32. > :09:33.these kinds of companies? We will be opening stores within the next year,
:09:34. > :09:37.which I'm excited about. We will start in LA. I think a brand is best
:09:38. > :09:40.experienced in all channels. While some people have to go off`line to
:09:41. > :09:43.continue going, perhaps their businesses more niche, it is a
:09:44. > :09:47.choice. I want to let our customers touch and feel our clothes. I want
:09:48. > :09:53.to see someone run out of stall happy a shopping bag, I have never
:09:54. > :09:56.had that experience. It is people talking on social media, which is
:09:57. > :09:59.great, but to meet a customer in the real world is an exciting thing. It
:10:00. > :10:00.is that experience, physically finding something perfect, that time
:10:01. > :10:13.for a quick check of the markets. The one market that is trading is up
:10:14. > :10:24.a little, having taken its lead from Wall Street. The Australian market
:10:25. > :10:29.is even, head of the interest rate decision due out in two hours. That
:10:30. > :10:41.is it for this edition of Asia Business Report.
:10:42. > :10:42.Our top stories: Nigeria's Boko Haram