:00:10. > :00:17.latest business news live from Singapore. Asia Business Report with
:00:18. > :00:21.Ricoh. The chiefs from Hong Kong's biggest property developer go on
:00:22. > :00:27.trial in the biggest corruption case. China's latest trade numbers
:00:28. > :00:32.suggest a turnaround for the world 's second`largest economy. Welcome
:00:33. > :00:40.to Asia Business Report. I'm Rico Hizon. Hong Kong's biggest ever
:00:41. > :00:44.corruption trial kicked off 30 minutes ago with some big names in
:00:45. > :00:49.the Territory's is in a scene taking the stand. The city's what druthers,
:00:50. > :00:59.two of the world 's most successful developers are being prosecuted ``
:01:00. > :01:05.Kwok Brothers. Our correspondent joins us from outside the court. At
:01:06. > :01:14.very high profile and significant corruption case, what is the latest?
:01:15. > :01:21.I can tell you that the trial started about half an hour ago. This
:01:22. > :01:24.will be a jury trial. The jury is not in sight yet. We believe they
:01:25. > :01:31.may be in the process of being selected. That is for a trial
:01:32. > :01:35.expected to last more than two months. Let me summarise the charges
:01:36. > :01:46.against the defendants. The Kwok Brothers, Thomas and Raymond, are
:01:47. > :01:48.the joint chairman of one of the world 's biggest listed property
:01:49. > :01:54.companies. They are accused of a number of charges, essentially of
:01:55. > :02:00.bribing the former number two in the Hong Kong government during the
:02:01. > :02:08.years that he was in government. All three, plus two other defendants,
:02:09. > :02:13.who are at the court right now have all pleaded not guilty. If
:02:14. > :02:20.convicted, we believe they may face years in prison. Thomas and Raymond
:02:21. > :02:30.were arrested two years ago. Has this impacted their business
:02:31. > :02:34.empire? They have maintained that this case wouldn't affect their
:02:35. > :02:41.commercial operations. What they've done over the years is ring in
:02:42. > :02:45.directors into the company `` bring in. In the last two years they have
:02:46. > :02:50.been aggressive with expansion in mainland China as well as in Hong
:02:51. > :02:56.Kong. As soon as the charges were announced, company shares fell
:02:57. > :03:03.significantly. Over two years, they haven't recovered. Right outside the
:03:04. > :03:09.courthouse in Hong Kong where the corruption case is on trial. Thank
:03:10. > :03:14.you so much for the date. Fresh data from China showing a recovery in
:03:15. > :03:19.trade. Imports and exports rising for April, compared to the previous
:03:20. > :03:22.year. That is a turnaround from earlier declines which led to
:03:23. > :03:25.worries about a slowdown in the world 's second`largest economy. We
:03:26. > :03:32.crossed to John Sutton worth in Shanghai. `` we crossed. Better than
:03:33. > :03:42.expected numbers. Is this a turnaround for the Chinese economy?
:03:43. > :03:48.It will be seen as positive news. They aren't bumper numbers by any
:03:49. > :03:56.standards. We have got exports up in April by 0.9%, year on year. Given
:03:57. > :04:00.that many analysts predicted those figures would be in negative
:04:01. > :04:07.territory, this will be seen as welcome news. It follows a dreadful
:04:08. > :04:12.few months for China's trade data. It's worth bearing in mind people
:04:13. > :04:19.suggest is because figures one year ago were very much over inflated.
:04:20. > :04:23.That's because, to be frank, companies were manipulating data to
:04:24. > :04:28.get around currency controls. What are the biggest risks facing the
:04:29. > :04:33.Chinese economy at the moment? Is it had debt, the property sector,
:04:34. > :04:42.labour disputes or territorial arguments? All of those. These trade
:04:43. > :04:44.figures matter. There is hope that, with signs of a pulse in the
:04:45. > :04:52.economies of Europe and America, trade figures might pick up. The
:04:53. > :04:57.focus is across the board. There are concerns in every area. The property
:04:58. > :05:01.sector is key for Chinese growth and is showing signs of a slowdown.
:05:02. > :05:05.There is a debate about whether we are seeing the beginnings of a
:05:06. > :05:12.popping bubble or not. That's a big area of concern. Going forward,
:05:13. > :05:18.given there is consensus that we will see this weakening growth,
:05:19. > :05:23.people suggesting 7.3% for the year, at the moment, no cause for alarm.
:05:24. > :05:28.Certainly, the signs of worry is coming in some areas you mentioned,
:05:29. > :05:36.in particular focusing on property. That's a big focus and a big topic
:05:37. > :05:39.of talk at the moment. China's April trade numbers coming in better than
:05:40. > :05:46.expected with exports and imports rising. Thank you for the update.
:05:47. > :05:57.Meanwhile, Thailand has a new interim leader. A court has ordered
:05:58. > :06:00.to step down after finding her guilty of abuse of power. This move
:06:01. > :06:03.extends the political crisis, which had led to violent protests and
:06:04. > :06:05.brought the economy to a standstill. Further uncertainty on Thailand's
:06:06. > :06:08.political leadership proposes a threat to future investments. The
:06:09. > :06:20.economy has already seen a slump in tourism and a slowdown in domestic
:06:21. > :06:22.demand. Earlier I asked how the latest developments will be
:06:23. > :06:25.perceived by the international business community. I suspect they
:06:26. > :06:31.will be doing it with a degree of despair. What it means in the
:06:32. > :06:42.immediate term is probably more protests on the streets of Bangkok.
:06:43. > :06:44.It will almost certainly mean for perhaps the next six months a
:06:45. > :06:47.continuation of the government's inability to transact with
:06:48. > :06:49.investors. Everything is on hold. But I suggest they should look
:06:50. > :06:52.deeper, because what happened yesterday was a full`blown judicial
:06:53. > :06:55.coup. That would have been quite catastrophic in terms of the degree
:06:56. > :07:00.of violence and disruption it would have brought to Thailand. You say
:07:01. > :07:03.more protests and instability in the medium term. How should the sisters
:07:04. > :07:11.and investors manage the risks in Thailand? ``businesses. They will
:07:12. > :07:14.have to play a long game. Yesterday we saw the beginning of the end of
:07:15. > :07:23.Thailand's long`running stand`off, the latest round of which began last
:07:24. > :07:39.December. We are seeing signs of a path out of this problem. It might
:07:40. > :07:42.seem negative that Yingluck Shinawatra has been forced out, but
:07:43. > :07:46.what remains is the majority of her Thai government. In the next day or
:07:47. > :07:49.two we will see a decision on whether the July general elections
:07:50. > :07:52.go`ahead. If we see that made, investors should take solace from
:07:53. > :07:54.it. It is a path towards not necessarily a political solution but
:07:55. > :08:01.an accommodation that should see business function much better. Japan
:08:02. > :08:05.says it is making progress in trade talks with the US in establishing
:08:06. > :08:12.the transpacific partnership, or at the TPP, being negotiated by 12
:08:13. > :08:17.nations with the Japan earnings and the US as the biggest economies.
:08:18. > :08:22.Credited with turning around the economy, the finance minister says a
:08:23. > :08:27.deal can be reached. On a visit to the UK, he spoke with business
:08:28. > :08:35.correspondent. For Japan, it is a cultural products. TRANSLATION: For
:08:36. > :08:38.the US it is automobiles. These are considered to be sensitive items. It
:08:39. > :08:41.doesn't mean it has already concluded. We agreed on an equation,
:08:42. > :08:44.a framework, to reach that conclusion. In a way it could be
:08:45. > :08:48.said as a type of breakthrough. Because if Japan and the US can come
:08:49. > :08:52.to an agreement, the negotiations with other countries will progress
:08:53. > :09:00.significantly. Japan has a mind`boggling amount of debt. The
:09:01. > :09:04.debt to... That Japan owes more than 2.5 times the amount it creates
:09:05. > :09:14.every year. That is higher than Greece or much higher than other
:09:15. > :09:17.countries. If interest rates around the world start to rise, which many
:09:18. > :09:21.people think they will and in fact in some countries they have already
:09:22. > :09:24.started to do so, is that not a nightmare for Japan? Because of the
:09:25. > :09:35.sheer amount of debt we would have to service? That would eat up all of
:09:36. > :09:38.the government revenue? TRANSLATION: Japan's long`term debt level, the
:09:39. > :09:45.government debt level, is close to two times GDP. So, if there is an
:09:46. > :09:49.increase in interest rates, this is going to be a very serious situation
:09:50. > :09:52.for Japan. We need to boost the credibility of the central bank. And
:09:53. > :09:54.we need to present the government's Strong will for fiscal
:09:55. > :09:57.consolidation. We need to create a plan for fiscal consolidation. The
:09:58. > :10:00.government has a strong will for fiscal consolidation and it has also
:10:01. > :10:02.presented its plan. In Europe, a certain country is focused on
:10:03. > :10:05.austerity towards fiscal consolidation and it has failed.
:10:06. > :10:15.Because what you need to do is cut the waste in your fiscal policy and
:10:16. > :10:18.make it efficient. But at the same time you do need a growth strategy
:10:19. > :10:28.to increase revenue. You need a combination. That's what Japan is
:10:29. > :10:31.doing. Asian shares are in positive territory after news that China's
:10:32. > :10:34.trade numbers came in better than expected. We now end this edition of
:10:35. > :10:44.Asia Business Report. Thanks for investing your time with us. The top
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