09/09/2014 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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business news live from Singapore. As we await fresh numbers on


household spending in Japan, a look at the prospects for the next


planned tax rise. Apple shares dip on the eve of its


big launch. Is it a sign of what is to come?


Thank you for joining us for this addition of Asia Business Report.


After posting its worst performance since the end of the financial


crisis, we are expecting fresh data on the state of the Japanese


economy. We will be getting a measure of consumer confidence. It


comes after news that the third`largest economy shrank at a


rate of 7.1% in the three months ending in June compared to the same


period in 2013. Japanese households have been cutting back spending


following a 3% increase in the sales tax in April. I asked if today's


numbers would be as bad as the GDP. We think it is quite possible that


is some negative sentiment. But as investors, this does not give us so


much cause for concern as an opportunity. The bank of Japan will


respond forcefully if consumer confidence goes down too much. But


in the meeting last week, the bank of Japan held back on monetary


policy and did not make any moves in terms of stimulating the economy.


When I we likely to see a boost in consumer confidence. You will see


them move if there is a panic. But when the bad GDP figure came out,


the stock market still went up. The fact that second`quarter numbers


were going to go down, everybody had accepted that. If we have a


third`quarter rebound as we expect, we will be back towards 2.5%, then


probably the bank will not take any action. With the current state of


consumer confidence, do you think that Shinzo Abe will push through


with the next planned tax hike next year? That is a bit more of a


challenge. We will have to see how the third and fourth quarter go. We


will have to see where he is politically to see if that becomes a


priority one of the things he puts aside in 2015.


After a decade of delay and disagreements, fresh hope in


Australia and China that a free`trade deal could be signed by


day's end. Trade has already doubled and a free`trade arrangement could


boost this even further. China's demand for iron and other


natural resources help the Australians avoid the worst of the


global recession. The trade between the nations is only growing. Today


China is Australia's largest trading partner. 2`way trade is worth more


than $140 billion. Australia is china's sixth`largest trading


partner, with almost a quarter of Australian exports going to China.


Future prosperity will depend in large part on the education and


tourism is. They hope to attract more of china's wealthy middle


classes. In Sydney, the Foreign Minister has held talks with his


counterpart, who says the bilateral relationship is mature and strong.


We are on track to sign a free trade agreement with China later this year


which will further strengthen this relationship. Over the past year,


Australia has sealed a free`trade agreements with Japan and South


Korea. Canberra's close ties with Tokyo have caused some annoyance in


China. Although not enough to derail a prosperous economic relationship.


TRANSLATION: China may not be Australia's closest friend at the


moment, but we can truly become your most sincere. Australia says it


often challenges China over human rights in Tibet. Canberra's military


alliance with the United States might be another source of tension.


But some diplomacy has allowed Australia to call the closer


economic ties with China while pursuing a closer security


relationship with Washington. Best of's market value has stopped


at $200 billion, making it one of the world's biggest companies. This


followed investor optimism about the future of mobile advertising. That


makes Facebook the 22nd largest company in the world, ahead of


Toyota. For Apple enthusiasts, the wait is


almost over. The new iPhone will no longer be shrouded in secrecy. Along


with all the hype, should we expect a bounce in Apple's share price?


Actually, no. It typically dips on the day it releases a new phone. A


market strategist said this is part of a trend. We always see a rally


ahead of the announcement and a buildup of expectations. I had we


are going to have new size, expectations, built up, and then


excuses. If the announcement does not meet expectations, we have got a


lot of problems. Rivals, the iPhone crowd leak, a price cut on the new


phone from $200 to 99. So competition is becoming more this.


You still have the competition from Samsung. It is seeing its revenues


falling due to competition from cheaper manufacturers. It is similar


to what we have seen before. We have got the Chinese telecoms cutting


back on marketing subsidies to the tune of $5 billion. That means bad


for handsets and more leveraged for new makers. The advantage of apple


is that it has its own operating system, as opposed to its


competitors to use android. What is the future of Apple? We will have to


see if Apple will come out with differentiating features. And also


whether we will see I payments. How that will play out. That should lock


in more users. Could this be the most expensive


video game ever created? Destiny is reported to have cost $500 million


to make and it is said to be the most significant release since the


next`generation consoles arrived late last year.


Destiny is a games at 700 years in the future. But it is the next ten


years that the producers will be most concerned about. Call of duty


and while the four craft are not selling as much as they used to. So


they are relying on Destiny to be a big hit. It has spent $500 million.


It is going to be a blockbuster. It is not a risk. We have marketed the


game and worked with retailers. We think we have done all of that.


Destiny is a massive new title for Activision. What is it going to be


like? It is a first person shooter. You will be involved in a lot of


firefights, on your own or with friends. They will be multiplayer


activities. You will also be exploring different planets and


fighting the enemy of us. At its essence, it is a game where you are


a Guardian protecting the last known city on earth. You have to go out


and explore planets and become legend. What happens is that the


service cannot cope for many games. How confident are you that this will


not happen to Destiny? It is critical. We are confident that once


the servers are turned on, because they already have been, it will be a


great game and experience. We had in excess of 4.6 million people on the


open beta. We wanted to make sure we could test the robustness of the


server. We are confident everything will be fine.


You can read more about Destiny by logging onto our website. Before we


go, a quick look at the markets. Asian stocks are lacklustre in early


trading. Japan continues to be on the rise as the yen continues to


weaken against the dollar. Thank you for investing your time with us.


Goodbye for now. Here are the headlines: Iraq's


parliament has endorsed a new, more representative government. The


United States has called it a crucial step towards defeating the


group known as Islamic


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