:00:00. > :00:17.year. Now on BBC News all the latest
:00:18. > :00:20.business news live from Singapore. China's Premier opens the World
:00:21. > :00:29.Economic Forum with an assurance the government is working to prevent a
:00:30. > :00:32.sharp economic slowdown. We speak to Philip chief executive on why he is
:00:33. > :00:40.betting on healthcare equipment to boost growth in Asia.
:00:41. > :00:48.Thank you for joining us for this edition of Asia Business Report.
:00:49. > :00:52.China wants you, that was Premier Ricky Chung message to business
:00:53. > :00:57.leaders in his opening speech at the World Economic Forum. It comes after
:00:58. > :01:01.a wave of antimonopoly investigations into foreign
:01:02. > :01:05.companies including Microsoft. That has raised concerns that they have
:01:06. > :01:10.been targeted by Beijing to limit the competition. The Premier gave
:01:11. > :01:17.words of reassurance on China's economy, saying measures are in
:01:18. > :01:21.place to prevent a sharp slowdown. China's economy is resilient and has
:01:22. > :01:26.much potential and space to grow and we have a full range of tools of
:01:27. > :01:31.macro control. The measures are good for now and for the long`term. They
:01:32. > :01:36.will enable us to prevent major fluctuations and make a hard landing
:01:37. > :01:47.less possible. Our correspondent is there for us on Day two. No measures
:01:48. > :01:52.to address the economic problems from the Premier but still a sense
:01:53. > :01:56.of confidence about the outlook and progress of the reform programme.
:01:57. > :02:01.With me is the executive vice president of the world's biggest
:02:02. > :02:05.food company, and Nestle. Many thanks for joining us `` Nestle. The
:02:06. > :02:10.Premier gave a bullish outlook on the economic growth in this country.
:02:11. > :02:16.You are a huge company in China. How do you see the consumer market? We
:02:17. > :02:24.globally see a general headwind in the economic outlook across all
:02:25. > :02:27.countries. It was good to see the Premier as a global leader
:02:28. > :02:32.recognising the slowdown in the global economy and outlining plans
:02:33. > :02:40.to tackle it by energising the young people, by innovation, small
:02:41. > :02:46.enterprises, two `` to release entrepreneurialism. Our business in
:02:47. > :02:50.China is still growing. We have pockets that grow fast and others
:02:51. > :02:54.that don't. You have to learn from what works well and transfer it to
:02:55. > :02:57.areas that don't work well. In general, what we see is when there
:02:58. > :03:02.is real innovation and consumers perceive real value of those
:03:03. > :03:06.segments show strong growth. A concern for the foreign community
:03:07. > :03:10.has been the apparent targeting of foreign companies and a range of
:03:11. > :03:13.industries including the milk powder sector. Do you think it is a level
:03:14. > :03:17.playing field for a foreign companies in China? Nestle has been
:03:18. > :03:22.in China for 30 years and to my knowledge we are the only company
:03:23. > :03:25.that has invested in a local milk district and we buy fantastic
:03:26. > :03:33.quality milk from inner Mongolia and northern China. We have worked with
:03:34. > :03:36.local communities and provincial and central governments and have had
:03:37. > :03:39.nothing but the greatest support from every level of society in
:03:40. > :03:43.China. Do you think the difference for a company like Nestle is that
:03:44. > :03:48.you are relatively local, that two thirds of revenue comes from joint
:03:49. > :03:52.sector products. It could be an advantage `` joint`venture. More
:03:53. > :03:59.than being with local companies, what is important is we have
:04:00. > :04:02.invested in the farm sector in upgrading skills and output levels
:04:03. > :04:06.and we have plugged into the local communities. What is your advice to
:04:07. > :04:11.other companies working in this landscape? Particularly when you
:04:12. > :04:14.hear those concerns from Chambers of commerce that there is perhaps
:04:15. > :04:22.anticompetitive behaviour against foreign companies. We haven't felt
:04:23. > :04:27.that kind of allegation. My advice to most companies would be to plug
:04:28. > :04:31.into the local society and try to create value for the local community
:04:32. > :04:38.at the same time to become part of the local economy. Thank you very
:04:39. > :04:44.much. There are a lot of challenges facing China. The food industry is
:04:45. > :04:47.one of its fastest growing. Our correspondent at the World
:04:48. > :04:50.Economic Forum in China. The rate of inflation on the
:04:51. > :04:54.mainland has eased more than expected in August, to a four`month
:04:55. > :04:58.low of 2%. Further evidence the economy is
:04:59. > :05:04.slowing but gives authorities room to stimulate growth if need be.
:05:05. > :05:09.Despite the low rate, food prices remain high. Our correspondent is an
:05:10. > :05:14.applet `` analyst and gives us a forecast of food prices. With pork
:05:15. > :05:22.prices rising, food inflation might pick up. We don't expect inflation
:05:23. > :05:27.to go above 3.5% this year. What about utility price reforms? Could
:05:28. > :05:35.this push inflation over the coming quarters? It could be a factor. They
:05:36. > :05:41.are talking about introducing tiered pricing for gas and water, making up
:05:42. > :05:44.3% of the CPI deal, which will impact, gradually, local governments
:05:45. > :05:52.will gradually introduce it over the course of the next year. With core
:05:53. > :05:55.inflation prices between 1.2`1.3%, does this give the central bank some
:05:56. > :06:02.leeway to further ease interest rates? Inflation is not a concern
:06:03. > :06:08.when it comes to monetary policy. The primary concern is credit
:06:09. > :06:14.growth. Excess credit growth, credit growing farther than nominal GDP.
:06:15. > :06:18.That is what the main concern is. It is why policymakers have not been as
:06:19. > :06:25.active in monetary stimulus as they were in 2012.
:06:26. > :06:29.China's producer price insect `` index, PDI, prices paid to companies
:06:30. > :06:34.has been falling for more than two years as that is due to a
:06:35. > :06:38.combination of a drop in prices for raw materials and excess capacity in
:06:39. > :06:43.many Chinese industry. What you think of the brand`name
:06:44. > :06:46.Phillips? `` when you think. You might think of lighting and
:06:47. > :06:50.electronics but half of its business is focused on healthcare. The Dutch
:06:51. > :06:54.company is selling its home entertainment division and is
:06:55. > :06:57.betting on business in Asia due to the ageing population. That includes
:06:58. > :07:02.a multimillion dollar investment in a regional headquarters in
:07:03. > :07:07.Singapore. Our correspondent asks Phillips' chief executive what is
:07:08. > :07:11.behind this push into Asia. Hundreds of millions of people
:07:12. > :07:15.without enough doctors and nurses. Through the pioneering efforts that
:07:16. > :07:19.we are doing in Singapore, together with innovation partners, I am sure
:07:20. > :07:23.that we can innovate the healthcare system in this region may be faster
:07:24. > :07:28.than in the United States or Europe where people are perhaps a little
:07:29. > :07:31.bit more conservative. Which countries and regions are driving
:07:32. > :07:36.growth for Phillips? Over five years, we have seen strong growth
:07:37. > :07:41.from the emerging countries, especially Asia, where we have seen
:07:42. > :07:47.double`digit growth. In an era where Europe is stagnant. I am pleased
:07:48. > :07:50.with our growth here. 35% of Phillips' revenue comes from this
:07:51. > :07:56.region. Going forward, we will see a little bit more bumpy ride after
:07:57. > :08:03.all, the world economy is facing headwinds. Nevertheless, with our
:08:04. > :08:07.focus on improving healthcare, bringing energy efficient lighting
:08:08. > :08:10.and focusing on people's well`being, we expect growth in all areas. They
:08:11. > :08:16.must be competition from cheap rivals in Asia. That is right. Even
:08:17. > :08:21.though we are the global leader in healthcare solutions we see new
:08:22. > :08:24.competition coming from China, Japan and Korea. We see these competitors
:08:25. > :08:31.are focusing very much on standalone products. That's not really what
:08:32. > :08:35.hospitals need. Hospitals are looking for an integrated solution.
:08:36. > :08:40.How is technology affecting your business and the focus of your
:08:41. > :08:44.research and development? This is the 21st century and big date and
:08:45. > :08:51.the internet Lee a role in all new solutions. `` big date. That applies
:08:52. > :08:55.to healthcare. `` play a role. The date can bring healthcare providers
:08:56. > :08:58.closer together and enable collaboration between primary care
:08:59. > :09:04.physicians and specialist clinic and Hospital 's `` data. The data can
:09:05. > :09:08.help analyse diagnostics and come to better conclusions. We provide
:09:09. > :09:12.clinical decision`making support so that the same amount or staff can
:09:13. > :09:19.help more patients. This can be extended to the home, where patients
:09:20. > :09:24.with chronic afflictions, such as cardiac failure, heart failure, can
:09:25. > :09:30.be supported to live a good life at home.
:09:31. > :09:36.CEO of Phillips. Microsoft is in talks to take over the videogame
:09:37. > :09:40.studio behind Minecraft the deal to buy the Swedish studio could be
:09:41. > :09:46.around $2 billion. Reports suggest it could be signed this week. Mojang
:09:47. > :09:50.said it had sold 54 million copies of its game. Since then, it has been
:09:51. > :09:55.released for XBox One and PlayStation 4, further boosting
:09:56. > :09:59.sales revenue. We all know that Apple Mac fans can and will do
:10:00. > :10:03.anything to get there hands on the very latest gadgets from the tech
:10:04. > :10:07.giant `` Apple. Here is a queue at one store on your screen in Tokyo
:10:08. > :10:12.where Apple devotees have lined up waiting for the new iPhone six and
:10:13. > :10:15.six plus to go on sale. They have set up camp even though the device
:10:16. > :10:22.won't be released until next week. TRANSLATION: I haven't determined
:10:23. > :10:25.which the buyer, I will think over it slowly and deeply for the next
:10:26. > :10:29.nine days to make my choice before the launch. TRANSLATION: I am
:10:30. > :10:36.counting down the ladies until the launch of iPhone six. TRANSLATION:
:10:37. > :10:39.It is a chance for us iPhone fans to get together once per year and say
:10:40. > :10:50.hello to each other, like a street festival.
:10:51. > :10:54.Also releasing at the same time are South Korea, Singapore and Hong
:10:55. > :10:59.Kong. Here is a look at the markets. Asia is edging lower in trade after
:11:00. > :11:03.Barack Obama vowed to fight Islamic State militants scaring away in vest
:11:04. > :11:12.is. Thank you for investing your time with us.
:11:13. > :11:17.`` investors. I am Mike Embley in London with a
:11:18. > :11:19.new story is this hour: President Obama