25/08/2014 Asia Business Report


25/08/2014

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

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BBC News, all the latest business news live from Singapore. Hopes

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Ashima's farmers can open up new markets after the first export ship

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that sells out in Singapore. And we take a look at what a key meeting in

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an American city reveals about interest rates and the US economy.

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Hello and welcome to this Monday edition of Asia Business Report. I

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am Sharanjit Leyl, in Singapore. Japan has restarted exports of rice

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grown in Fukushima for the first time since foreign sales were halted

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in the wake of the disaster in 2011. A 300 kilograms shipment went on

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sale this weekend in Singapore and sold out in just over 24 hours. That

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raises hopes of opening up new export market. The rice was

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harvested in Sukagawa city, about 60 kilometres from the Fukushima

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nuclear plant. If this goes well, it could mark a turning point for

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Fukushima's farmers. It is only 60 bags of rice, but it is the first

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shipment to be exported from the region since foreign retailers

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shunned it in the wake of the nuclear disaster in 2011. In a test

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case, we brought in 60 bags. 300 kilograms in total. And within 24

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hours, half has been sold already. The proof is in the eating, that is

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why they had decided to cook some of the rice for people to taste. Some

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have agreed to try it. What do you think of the right, Sir? Good meal.

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It is natural, it is normal. Would you be worried about eating rice

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from Fukushima? No, no. I'm sure they have done enough test and stuff

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like that to make sure it is safe for consumption. Trade officials

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from Japan have come to Singapore to reassure potential buyers. One of

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them explains to me how the rice is tested before it can be exported.

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There is no hiding where this race has come from. Each bag has a

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sticker saying it is a product of Fukushima. At what is important here

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is this label. It says that it has been cleared for radiation testing,

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and has been certified as being safe to eat. With that clearance,

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Singapore was deliberately chosen as the first export market.

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TRANSLATION: Singapore is very strict about food safety. So we hope

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that now it has been approved here people realise it is safe. And this

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is why there is so much at stake. The tsunami earthquake which

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crippled the Fukushima nuclear plant years ago, spread radioactive

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material over nearby farmland. A region once known for its

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high`quality rice and fruit became a wasteland. Rice exports of more than

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100 tons each year, mainly to Hong Kong and Taiwan, became zero. Back

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here, that fate is at the front of mind of some shoppers. So that is

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the main reason why you are doing it? To support Fukushima.

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Fukushima's farmers may have a tough time selling to other consumers.

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While in Singapore they seem comfortable buying the rice, there

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is plenty of public debate about whether the rice is safe to eat.

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Japanese authorities know they have a big challenge overcoming those

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concerns. And in the American city of Wyoming, the annual get`together

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hosted by Janet Yellen, the chair of the US Federal reserve. There was

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plenty to discuss including how to manage the relationship between

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unemployment and inflation. The big question was when will interest

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rates go up? Acra 3`set the Fed is moving cautiously on interest rates.

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I asked our correspondent what that will mean for Asian markets. Just to

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explain what she means by this. She believes right now that the

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unemployment rate of 6.5% or so, that means that people are hiring in

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the US, but also that more people are getting back into the Labour

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force. So she thinks that the market will go up and up it was people will

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hire. So that is good news. The effect of that on Asian producers, I

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think, because people, more people are getting jobs, they should

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actually buy more products from Asia. There should be good news for

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Asian producers. But last year we saw a massive meltdown through

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merging markets. Many here in Asia, in May, when the Fed first signalled

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they would start to taper, do you think Asian markets are now more

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resilient to signal that the Fed will tighten? Definitely. That news

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came unexpectedly to most people around the world. I don't know why

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they won't expecting that. But now that they have taken a hit on that,

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most people have priced that in, and actually when the Fed tapers and

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actually removes quantitative easing effects, we shouldn't see much of an

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effect on the stock markets around the world, or even currencies. Now,

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if the ten members of the Association of Southeast Asian

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nations, or ASEAN, form a community as planned, it won't just be trade

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that benefits. People who live in the region will be able to work

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anywhere within ASEAN. Some experts say this could pose challenges as

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well as opportunities I spoke to the chairman of a company of how this

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will `` about how this will affect Asia. Southeast Asia used to be

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classified under Asia, Asia`Pacific, far east. Nowadays it stands up as a

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region in its own right. In the sort of organisation of global

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businesses. And that can, I think that sort of mindset, as to how one

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looks at this, it can only intensify. And it can only

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escalate. That of course we'll see a lot of governmental and public

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reforms. But I think on the private sector side, we are beginning to

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already see increased collaboration, increased investments

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throughout the region. Chinese carmaker BYD, backed by US

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billionaire Warren Buffett, noted a drop in profit. It fell to 58

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million, dragged down by a 27% fall in vehicle sales. It is down

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sluggish sales of gasoline cars which has offset a surge in its

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electric car business. And Chinese oil giant has beaten forecast, it

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forecasts with a rise in second`quarter profits. It has

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posted a net profit of 3 billion for the three months to June period,

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compared to 2.2 billion a month earlier. It follows improvement at

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its refining business which offset its weakening chemicals business. A

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dialogue between India and Pakistan has again been derailed. Talks

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between foreign secretaries of the two countries scheduled to be held

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today in Islamabad were called off by India after Pakistan's ambassador

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met with Kashmiri separatist leaders. From Mumbai, our

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correspondent reports. Your Mac ties had been improving, and the new

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premise to Narendra Modi had invited the president Sharif, a gesture seen

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as unprecedented. But all too quickly, over the touchy issue of

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Kashmir, relations have once again soured. That means trade ties, which

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are already very limited, could also suffer. Our trade is 2.6 billion. It

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is nothing, it is illegal trade is twice as much, and so is third`party

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trade, mostly through Dubai. This is a tax on everybody, the Pakistani

:08:37.:08:42.

government, the Pakistani people, the Indian government, and the

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Indian people. India often buys onions from Pakistan when prices

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soar here. And Islamabad depends on Delhi for wheat exports. But the

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potential is much higher. Period in Mumbai, India's business capital and

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an important port on the country's West Coast, Pakistan's city Karachi

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is only a short distance for cargo ships, and not too long for

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passengers either. It is a link that could and if it both countries if it

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was open to free traffic. But so far, security concerns have held

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that back. This check post is one of the few places along the border

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where goods are traded between the two countries. While India has no

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restriction on imports and exports, there are more than 1200 Indian

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products banned from Pakistan, including some garments and

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textiles. Even in Pakistan, the restriction on trade is viewed as a

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lost opportunity. Here in India, in his first three months in office,

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Prime Minister Modi has made it clear he wants to strengthen ties in

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south Asia, visiting both Nepal and elsewhere, trying to curtail

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China's strength in the region. Despite the political conflict with

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pukka Sun, there is a realisation that without improving that

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relationship, this may never be possible `` Pakistan. A quick look

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at the markets. possible `` Pakistan. A quick look

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at the Here in Asia, the weaker yen, stronger your. `` stronger dollar.

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Australia is a tad lower. That is it for this edition of Asia Business

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Report. Thank you for watching. You are watching BBC News. The top

:10:33.:10:45.

stories this hour: Richard Attenborough, widely regarded as one

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of Britain's greatest actors and film directors, has died at the age

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of 90. An American journalist kidnapped nearly two

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