:00:00. > :00:00.have been turned off around the country to mark the moment.
:00:00. > :00:14.Now time for the latest business news with Asia Business Report.
:00:15. > :00:21.A pulse check on Indonesia's economy. We look at the tasks that
:00:22. > :00:26.lie ahead for the President`elect. Shares in the world's biggest sports
:00:27. > :00:33.of supply again as they begin trading on the stock exchange.
:00:34. > :00:42.`` sports supplier. Thank you for joining us. Indonesia
:00:43. > :00:45.has been one of Asia's best performing markets this year but its
:00:46. > :00:51.overall economic growth has been slowing and as the country prepares
:00:52. > :00:57.to show its second`quarter figures, we find out there are hopes by its
:00:58. > :01:04.new government will find a way to push through with some much`needed
:01:05. > :01:09.reforms. From furniture maker to Jakarta
:01:10. > :01:17.governor to Indonesia's president elect, Joko Widodo has seen his
:01:18. > :01:21.political star rise rapidly. There are hopes his business friendly
:01:22. > :01:29.attitude will help spur growth. But as the euphoria wears off, he has a
:01:30. > :01:33.long list of challenges to tackle. Rampant corruption, rising prices,
:01:34. > :01:41.slowing foreign investment, poor infrastructure and a stubborn fiscal
:01:42. > :01:46.deficit. A key to fixing its finances is cutting fuel subsidies
:01:47. > :01:54.which take up about 16% of the government's budget. He promised to
:01:55. > :01:59.do away with the subsidies within four to five years but it is a
:02:00. > :02:03.sensitive topic and previous attempts to raise the price of fuel
:02:04. > :02:09.have led to huge protests. He will also have to play tough politics.
:02:10. > :02:13.His main rival in the election is contesting the results claiming
:02:14. > :02:17.massive fraud. His party does not have a large majority in Parliament
:02:18. > :02:22.so it is harder to pass laws. Combined with his relative
:02:23. > :02:26.inexperience at national politics, some warn his efforts to get the
:02:27. > :02:33.economy back on the fast track may be a slow slog.
:02:34. > :02:44.I asked a representative from the Royal Bank of Scotland about this.
:02:45. > :02:48.We expect a slow number for this quarter and this is part of a
:02:49. > :02:57.broader slowdown we expect to last for some time. We expect a number
:02:58. > :03:00.similar to quarter one. What about the election spending of the
:03:01. > :03:06.candidates, won't that have an effect on the economy? Yes indeed.
:03:07. > :03:12.We have seen retail sales up, that means consumption up but slowdown in
:03:13. > :03:17.exports, a slight rise in imports, a fall in public spending. Put all
:03:18. > :03:24.that together, we will see a slower number. We are already in the third
:03:25. > :03:32.quarter. Will it be more of the same as the first and second? As the
:03:33. > :03:43.adjustment process, it is lagging but as it continues we will see the
:03:44. > :03:48.numbers are low. The president elect has to fix a lot of things in the
:03:49. > :03:51.economy. He takes over in the fourth quarter of the year. What do you
:03:52. > :03:57.think should be his priorities because one is basically pushing
:03:58. > :04:03.growth to 7% in two years. Essentially he needs to focus on
:04:04. > :04:07.boosting investments, infrastructure spending and structural reform. Some
:04:08. > :04:11.of that will come later in his term but we expect him to start with
:04:12. > :04:18.infrastructure spending, looking at some of the governance issues.
:04:19. > :04:22.In other business news in making headlines, LinkedIn, the
:04:23. > :04:27.professional networking site has agreed to pay $6 million in wages
:04:28. > :04:31.and damages after regulators found it had failed to account for all of
:04:32. > :04:37.the hours worked by employees. The figure includes more than $3 million
:04:38. > :04:41.in unpaid wages and also damages to be paid to former and current
:04:42. > :04:46.employees. McDonald says the food scare it has
:04:47. > :04:53.undergone in China and Japan is having a significant negative impact
:04:54. > :04:59.on sales in the region. Last month they expanded sales of Nugget in
:05:00. > :05:04.Hong Kong after concerns about a Chinese meat supplier.
:05:05. > :05:10.Fresh data from Australia has shown that the trade deficit in June
:05:11. > :05:22.narrowed to about $1.56 billion from a revised deficit. We crushed to
:05:23. > :05:27.Sydney. Thank you for joining us. Why are we seeing a narrowing of the
:05:28. > :05:34.trade deficit, which is quite considerable, from May to June? Yes
:05:35. > :05:38.it was and a bit of a surprise for the markets, expecting a deficit of
:05:39. > :05:45.around 2 billion. A drop on imports, they were down 1% and although the
:05:46. > :05:48.overall export performance was flat, surprise increases in key
:05:49. > :05:54.commodities have driven a better than expected result. Has a China's
:05:55. > :06:00.improving conditions contributed to the deficit because the mainland are
:06:01. > :06:06.a major importers of Australia's iron ore. An increase in iron ore
:06:07. > :06:11.and coal, largely driven by trade with China that has contributed to
:06:12. > :06:16.this result. And liquid national gas, although that goes to other
:06:17. > :06:21.parts of Asia are not China, it isn't regional partners driving that
:06:22. > :06:26.performance. In July and August will be see a continuing trend of the
:06:27. > :06:32.narrowing of the trade deficit? A lot will depend on commodities and
:06:33. > :06:35.the level of the Australian dollar. Export volumes were a surprise given
:06:36. > :06:39.the maintained hike against other currencies. If it does as expected
:06:40. > :06:47.and falls, we could see further narrowing of the gap. Apart from the
:06:48. > :06:52.trade deficit, attention will be on the monetary policy position, will
:06:53. > :06:56.they keep rates at 2.5%? Almost certainly they will keep the rate
:06:57. > :07:02.stable. That is what the RBA has flagged to the market, an extended
:07:03. > :07:07.period of stability. It would be a real surprise if we saw a change.
:07:08. > :07:11.The market is likely to focus on the statement that any change in
:07:12. > :07:19.language and any efforts to talk down the Australian dollar. Thank
:07:20. > :07:24.you for your insights. Shares in WH group made its debut
:07:25. > :07:35.this week. Shares are sitting at about $6 70 Hong Kong dollars. Up
:07:36. > :07:42.from the initial price. They raised funds in the second attempt of
:07:43. > :07:47.public offering, the biggest in Asia this year.
:07:48. > :07:53.A steaming wok full of freshly cooked pork and vegetables. It is by
:07:54. > :08:00.far China's favourite meat. Every region has its own special recipes.
:08:01. > :08:05.In Hong Kong, in south China, besides fragrant stirfry is there is
:08:06. > :08:13.also roast pork. And juicy barbecued pork buns. This country consumes
:08:14. > :08:17.half of the world's pork and is expected to account for 75% of
:08:18. > :08:24.growth in consumption over the next five years. That is why an initial
:08:25. > :08:30.public offering by the biggest pork supplier on the pay`out is
:08:31. > :08:35.commanding so much attention. `` pork supplier on the planet. The
:08:36. > :08:39.firm made headlines last year when they purchased America's largest
:08:40. > :08:45.pork supplier. The biggest deal of its kind and left the company deeply
:08:46. > :08:50.in debt. To pay it back, they turned to the Hong Kong stock market,
:08:51. > :08:54.trying to raise $5 billion in April. After a few weeks it had to cancel
:08:55. > :09:01.the listing when investors decided it was far too expensive. They
:09:02. > :09:06.stockbrokers said it was wise for the country to return several months
:09:07. > :09:14.later with a much more modest deal. They lowered the price
:09:15. > :09:21.substantially. Most of all, they cut the amount of money raised by 50%.
:09:22. > :09:28.It is much easier. And investment banker who turned analyst agrees.
:09:29. > :09:35.believes how the shares trade over the next few months will affect the
:09:36. > :09:41.entire industry. Will be watching this very closely. It is big,
:09:42. > :09:49.eye`catching and how it trades, how significant trading volumes develop
:09:50. > :09:52.will bear on the decision to launch transactions in August, September
:09:53. > :09:56.and October. China's love of pork was supposed to result in the
:09:57. > :10:01.biggest listing of the year in Hong Kong. It did not happen but this
:10:02. > :10:06.resurrected deal may still help drive investor appetite for major
:10:07. > :10:10.offerings. Before we go a quick look at the
:10:11. > :10:16.Asian stock markets, which have become lacklustre in mid`morning
:10:17. > :10:22.Tuesday trade. This is despite a rally in US equities overnight.
:10:23. > :10:25.Japan is shopping as it waits for corporate earnings. Australian
:10:26. > :10:29.investors remained cautious at the start of the earnings season. Thank
:10:30. > :10:40.you so much for investing your time with us. I am Rico Hizon. Goodbye
:10:41. > :10:43.for now. In London with the main news
:10:44. > :10:49.stories: Israel and hammers have agreed to a
:10:50. > :10:53.new three`day ceasefire in Gaza. More civilian casualties. Israel is
:10:54. > :10:56.accused of hitting a camp sheltered by refugees.
:10:57. > :10:58.Ukraine is dying hundreds of its