25/08/2014

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:00:00. > :00:00.than one million people are expected to attend the entire event. Now on

:00:00. > :00:19.BBC News, all the latest business news live from Singapore. Hopes

:00:20. > :00:23.Ashima's farmers can open up new markets after the first export ship

:00:24. > :00:28.that sells out in Singapore. And we take a look at what a key meeting in

:00:29. > :00:37.an American city reveals about interest rates and the US economy.

:00:38. > :00:41.Hello and welcome to this Monday edition of Asia Business Report. I

:00:42. > :00:45.am Sharanjit Leyl, in Singapore. Japan has restarted exports of rice

:00:46. > :00:51.grown in Fukushima for the first time since foreign sales were halted

:00:52. > :00:55.in the wake of the disaster in 2011. A 300 kilograms shipment went on

:00:56. > :01:00.sale this weekend in Singapore and sold out in just over 24 hours. That

:01:01. > :01:08.raises hopes of opening up new export market. The rice was

:01:09. > :01:13.harvested in Sukagawa city, about 60 kilometres from the Fukushima

:01:14. > :01:17.nuclear plant. If this goes well, it could mark a turning point for

:01:18. > :01:21.Fukushima's farmers. It is only 60 bags of rice, but it is the first

:01:22. > :01:24.shipment to be exported from the region since foreign retailers

:01:25. > :01:32.shunned it in the wake of the nuclear disaster in 2011. In a test

:01:33. > :01:36.case, we brought in 60 bags. 300 kilograms in total. And within 24

:01:37. > :01:40.hours, half has been sold already. The proof is in the eating, that is

:01:41. > :01:45.why they had decided to cook some of the rice for people to taste. Some

:01:46. > :01:52.have agreed to try it. What do you think of the right, Sir? Good meal.

:01:53. > :01:57.It is natural, it is normal. Would you be worried about eating rice

:01:58. > :02:01.from Fukushima? No, no. I'm sure they have done enough test and stuff

:02:02. > :02:06.like that to make sure it is safe for consumption. Trade officials

:02:07. > :02:12.from Japan have come to Singapore to reassure potential buyers. One of

:02:13. > :02:16.them explains to me how the rice is tested before it can be exported.

:02:17. > :02:20.There is no hiding where this race has come from. Each bag has a

:02:21. > :02:24.sticker saying it is a product of Fukushima. At what is important here

:02:25. > :02:28.is this label. It says that it has been cleared for radiation testing,

:02:29. > :02:33.and has been certified as being safe to eat. With that clearance,

:02:34. > :02:39.Singapore was deliberately chosen as the first export market.

:02:40. > :02:43.TRANSLATION: Singapore is very strict about food safety. So we hope

:02:44. > :02:49.that now it has been approved here people realise it is safe. And this

:02:50. > :02:54.is why there is so much at stake. The tsunami earthquake which

:02:55. > :02:59.crippled the Fukushima nuclear plant years ago, spread radioactive

:03:00. > :03:03.material over nearby farmland. A region once known for its

:03:04. > :03:08.high`quality rice and fruit became a wasteland. Rice exports of more than

:03:09. > :03:15.100 tons each year, mainly to Hong Kong and Taiwan, became zero. Back

:03:16. > :03:23.here, that fate is at the front of mind of some shoppers. So that is

:03:24. > :03:29.the main reason why you are doing it? To support Fukushima.

:03:30. > :03:33.Fukushima's farmers may have a tough time selling to other consumers.

:03:34. > :03:36.While in Singapore they seem comfortable buying the rice, there

:03:37. > :03:40.is plenty of public debate about whether the rice is safe to eat.

:03:41. > :03:48.Japanese authorities know they have a big challenge overcoming those

:03:49. > :03:56.concerns. And in the American city of Wyoming, the annual get`together

:03:57. > :04:01.hosted by Janet Yellen, the chair of the US Federal reserve. There was

:04:02. > :04:04.plenty to discuss including how to manage the relationship between

:04:05. > :04:09.unemployment and inflation. The big question was when will interest

:04:10. > :04:15.rates go up? Acra 3`set the Fed is moving cautiously on interest rates.

:04:16. > :04:19.I asked our correspondent what that will mean for Asian markets. Just to

:04:20. > :04:25.explain what she means by this. She believes right now that the

:04:26. > :04:29.unemployment rate of 6.5% or so, that means that people are hiring in

:04:30. > :04:34.the US, but also that more people are getting back into the Labour

:04:35. > :04:39.force. So she thinks that the market will go up and up it was people will

:04:40. > :04:44.hire. So that is good news. The effect of that on Asian producers, I

:04:45. > :04:47.think, because people, more people are getting jobs, they should

:04:48. > :04:51.actually buy more products from Asia. There should be good news for

:04:52. > :04:57.Asian producers. But last year we saw a massive meltdown through

:04:58. > :05:00.merging markets. Many here in Asia, in May, when the Fed first signalled

:05:01. > :05:04.they would start to taper, do you think Asian markets are now more

:05:05. > :05:11.resilient to signal that the Fed will tighten? Definitely. That news

:05:12. > :05:15.came unexpectedly to most people around the world. I don't know why

:05:16. > :05:20.they won't expecting that. But now that they have taken a hit on that,

:05:21. > :05:25.most people have priced that in, and actually when the Fed tapers and

:05:26. > :05:29.actually removes quantitative easing effects, we shouldn't see much of an

:05:30. > :05:35.effect on the stock markets around the world, or even currencies. Now,

:05:36. > :05:41.if the ten members of the Association of Southeast Asian

:05:42. > :05:45.nations, or ASEAN, form a community as planned, it won't just be trade

:05:46. > :05:48.that benefits. People who live in the region will be able to work

:05:49. > :05:53.anywhere within ASEAN. Some experts say this could pose challenges as

:05:54. > :05:58.well as opportunities I spoke to the chairman of a company of how this

:05:59. > :06:02.will `` about how this will affect Asia. Southeast Asia used to be

:06:03. > :06:08.classified under Asia, Asia`Pacific, far east. Nowadays it stands up as a

:06:09. > :06:13.region in its own right. In the sort of organisation of global

:06:14. > :06:22.businesses. And that can, I think that sort of mindset, as to how one

:06:23. > :06:33.looks at this, it can only intensify. And it can only

:06:34. > :06:36.escalate. That of course we'll see a lot of governmental and public

:06:37. > :06:40.reforms. But I think on the private sector side, we are beginning to

:06:41. > :06:48.already see increased collaboration, increased investments

:06:49. > :06:54.throughout the region. Chinese carmaker BYD, backed by US

:06:55. > :07:00.billionaire Warren Buffett, noted a drop in profit. It fell to 58

:07:01. > :07:03.million, dragged down by a 27% fall in vehicle sales. It is down

:07:04. > :07:09.sluggish sales of gasoline cars which has offset a surge in its

:07:10. > :07:14.electric car business. And Chinese oil giant has beaten forecast, it

:07:15. > :07:18.forecasts with a rise in second`quarter profits. It has

:07:19. > :07:24.posted a net profit of 3 billion for the three months to June period,

:07:25. > :07:28.compared to 2.2 billion a month earlier. It follows improvement at

:07:29. > :07:32.its refining business which offset its weakening chemicals business. A

:07:33. > :07:37.dialogue between India and Pakistan has again been derailed. Talks

:07:38. > :07:41.between foreign secretaries of the two countries scheduled to be held

:07:42. > :07:45.today in Islamabad were called off by India after Pakistan's ambassador

:07:46. > :07:59.met with Kashmiri separatist leaders. From Mumbai, our

:08:00. > :08:05.correspondent reports. Your Mac ties had been improving, and the new

:08:06. > :08:11.premise to Narendra Modi had invited the president Sharif, a gesture seen

:08:12. > :08:16.as unprecedented. But all too quickly, over the touchy issue of

:08:17. > :08:21.Kashmir, relations have once again soured. That means trade ties, which

:08:22. > :08:29.are already very limited, could also suffer. Our trade is 2.6 billion. It

:08:30. > :08:36.is nothing, it is illegal trade is twice as much, and so is third`party

:08:37. > :08:42.trade, mostly through Dubai. This is a tax on everybody, the Pakistani

:08:43. > :08:46.government, the Pakistani people, the Indian government, and the

:08:47. > :08:53.Indian people. India often buys onions from Pakistan when prices

:08:54. > :08:59.soar here. And Islamabad depends on Delhi for wheat exports. But the

:09:00. > :09:04.potential is much higher. Period in Mumbai, India's business capital and

:09:05. > :09:08.an important port on the country's West Coast, Pakistan's city Karachi

:09:09. > :09:14.is only a short distance for cargo ships, and not too long for

:09:15. > :09:18.passengers either. It is a link that could and if it both countries if it

:09:19. > :09:22.was open to free traffic. But so far, security concerns have held

:09:23. > :09:25.that back. This check post is one of the few places along the border

:09:26. > :09:31.where goods are traded between the two countries. While India has no

:09:32. > :09:36.restriction on imports and exports, there are more than 1200 Indian

:09:37. > :09:40.products banned from Pakistan, including some garments and

:09:41. > :09:46.textiles. Even in Pakistan, the restriction on trade is viewed as a

:09:47. > :09:49.lost opportunity. Here in India, in his first three months in office,

:09:50. > :09:56.Prime Minister Modi has made it clear he wants to strengthen ties in

:09:57. > :10:00.south Asia, visiting both Nepal and elsewhere, trying to curtail

:10:01. > :10:05.China's strength in the region. Despite the political conflict with

:10:06. > :10:07.pukka Sun, there is a realisation that without improving that

:10:08. > :10:13.relationship, this may never be possible `` Pakistan. A quick look

:10:14. > :10:16.at the markets. possible `` Pakistan. A quick look

:10:17. > :10:31.at the Here in Asia, the weaker yen, stronger your. `` stronger dollar.

:10:32. > :10:32.Australia is a tad lower. That is it for this edition of Asia Business

:10:33. > :10:45.Report. Thank you for watching. You are watching BBC News. The top

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