14/07/2014 Asia Business Report


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


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


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


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


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


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


carbon pollution was originally aimed at tackling the effects of


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


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


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


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


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


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


this controversial levy in his sights since it was introduced under


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


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


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


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


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


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


tax is repealed?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


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


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


government insists that household energy bills will come down if it


goes through and also that associated costs for business will


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


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


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


as Britain believe that the government is being reckless in


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


huge and Parliament last week, it will be repealed this week.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


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


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


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


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


crucial to the success of the economy. This follows embarrassing


incidents next `` in element in which female politicians were


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


Brazil will be gathering in the northeastern coastal city for a


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


financial institution aimed at challenging the likes of the World


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


weeks ahead of their highly anticipated listing on the New York


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


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


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


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


Tokyo. I spoke earlier to a correspondent from Earth extend


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


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


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


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


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


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


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


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


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


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


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


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


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


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


particularly out of Australia and other parts of the world and


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


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


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


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


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


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


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


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


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


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


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


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


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


buried. 172 Palestinians have now


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