14/07/2014 Asia Business Report


14/07/2014

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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from the NHS `` tooth decay. Dentists say that the main cause is

:00:00.:00:15.

busy drinks `` fizzy. Carbon taxes repeal. Australia abolishes its

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controversial tax. Brazil is one of the world's must closed economies

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and exporters are hoping to move over to China and India. Welcome to

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Asia Business Report. It is a big tax that affects the business in

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Australia but it is in a bit of trouble. The controversial tax on

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carbon pollution was originally aimed at tackling the effects of

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carbon change and was introduced in July 2012. It has forced the carbon

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producers to pay to pollute. The Prime Minister promised to get rid

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of the tax and is doing his best to have it scrapped. The legislation is

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expected to pass the upper has next week but is facing tough opposition

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and is going back to Parliament today. Our correspondent explains.

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Tony Abbott is on a mission to abolish the carbon tax and has had

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this controversial levy in his sights since it was introduced under

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a Labour government A2 years ago. He says it is the hand brake on

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economic activity and that it will cost families with different ``

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higher power bills and will damage confidence in the economy. That is

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why he is so keen to repeal the tax but we have seen that there has been

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a bit of a roadblock in terms of opposition in the upper house of

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Parliament. Who will be the winners and losers if the legislation and

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tax is repealed? You have to remember that the tax was introduced

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to put a levy on hundreds of Australia's big losers who are now

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forced to pay for permits for over consumption of green has gases. The

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government insists that household energy bills will come down if it

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goes through and also that associated costs for business will

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as well but detractors of the government of Tony Abbott say that

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the carbon tax is essential in terms of safeguarding the action against

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climate change in this country and even foreign politicians as far away

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as Britain believe that the government is being reckless in

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getting rid of the tax. The government believes that after a

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huge and Parliament last week, it will be repealed this week. The face

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of the oldest department store in Australia, David Jones hangs in the

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balance as to whether a takeover by a local grocery store worth will go

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ahead `` Woolworths. Japan's Prime Minister has renewed his promise to

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create a better working environment for women saying that their power is

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crucial to the success of the economy. This follows embarrassing

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incidents next `` in element in which female politicians were

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ridiculed. The heads of Russia, China India and South Africa and

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Brazil will be gathering in the northeastern coastal city for a

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summit on business in Brazil and it is expected to create a new

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financial institution aimed at challenging the likes of the World

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Bank. Now we go to our correspondant. This is just one of

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the 800 million pairs of shoes Brazil produces every year. As the

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largest footwear maker in the world, it is a potentially lucrative

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industry for exports. The company produces more than 9 billion pairs

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of shoes a year and exports to over 90 countries but 90% of the shoes

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that they make here remain in Brazil or South America. It is one of the

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world's most closed economies with exports constituting just under 8%

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of GDP. While commodity hungry China is their biggest trading partner

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coming it is a threat in other industries. They are one of our main

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competitors for exports in shoes and we are competing all the time the

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cousin of one temp `` because no one can produce shoes to the same extent

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and at the same prices as China. The slight realisation of China's

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potential has led to some calling Brazil rejectionist which they don't

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feel is fair. TRANSLATION: We're going through a in our development

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where we need to protect our country because it is on the path to

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development so that analysis is not constructive and we do not believe

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it is true. The challenge is that it is a very different economy to China

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and has higher labour cost. But the difference is can be a good thing.

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Demand is high. What we have to do is find a niche between low`cost and

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high`cost production. We can be very competitive in the medium stage.

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That is what this company is doing. Just 2% of its exports go to Asia

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but it is trying to focus on China and India. It it succeeds, it will

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be a step in the right direction `` if it. Hony Capital is buying Pizza

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Express for $1.5 billion. They have dozens of of restaurants locally and

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abroad. A Chinese Internet giant Ali Baba is rising in the Wessex

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securities Exchange Commission's index of businesses. This comes just

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weeks ahead of their highly anticipated listing on the New York

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Stock Exchange. To continue with that, a new report by Ernst Young

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shows that there has been a pickup in activity in the Asia`Pacific in

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which there were more shares in the second half of 2014 than in any

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other region `` first half, and many of them took place in Hong Kong and

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Tokyo. I spoke earlier to a correspondent from Earth extend

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young and asking what was driving this `` from Ernst Young and asked

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what was driving this. We have seen unprecedented low volatility since

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the financial crisis so it has been a good marketplace for IPO's to get

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into. China came back online during the second half of the year and that

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Hunter but it 55 IPOs in the first half of the year `` and that

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contributed. That many have been downgrading economic growth `` but.

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Why hasn't this deterred companies from going public? Everyone wants to

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get ahead of the storm and if the markets are not looking good in the

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long`term but they are in the moment, evil will make hay in the

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sunshine `` people. We're seeing this in the United States and

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Australia in which there is a lot to venture capital exits when people

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recognised that there is an opportunity to get the money out.

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What sectors have been aggressive with these new stock listings? All

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technology. But if you look below that, financials, a bit more energy

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particularly out of Australia and other parts of the world and

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increasingly healthcare which is a new theme. We saw 75 healthcare IPOs

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in the last the month and we will see much more of that in the next

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six months. With two thirds of the global population here in Asia. Are

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we likely to see the second half being better than the first or will

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this excitement over initial public offerings taper off? We have a lot

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still left to come out of China, 55 still to come domestically. The big

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whale on the horizon is Alibaba. The numbers are looking good for the

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second half. A quick look at the stocks here are getting a lift. ``

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Asian markets. Thank you so much for investing your time with us.

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I'm Chris Rogers. The top stories this hour. Germany defeat Argentina

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in Brazil by a single goal scored in extra time. It's their fourth World

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Cup victory and the first since German reunification. Fury on the

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streets of Gaza, as the latest victims of Israel's bombardment are

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buried. 172 Palestinians have now

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