:00:00. > :00:17.Now on BBC News, all the latest business news live from Singapore.
:00:18. > :00:23.America's central bank makes it clear it is in no rush to raise the
:00:24. > :00:27.cost of borrowing. The largest e`commerce site in the world,
:00:28. > :00:34.Alibaba, gets set for what could be the biggest ever public share
:00:35. > :00:39.listing. Welcome to Asia Business Report.
:00:40. > :00:44.Is the American economy strong enough to survive without emergency
:00:45. > :00:48.help Western interest rates have been at record lows since 2008 and
:00:49. > :00:57.billions has been pumped into the economy. In Washington, the US
:00:58. > :01:00.Federal Reserve made it clear while stimulus measures might be ending,
:01:01. > :01:08.it's not rushing to raise the cost of borrowing.
:01:09. > :01:10.Here at the central bank, the focus was on whether change would be
:01:11. > :01:17.occurring in the language to describe a rise in interest rates.
:01:18. > :01:20.That's because the Fed has insisted it won't raise rates until
:01:21. > :01:27.considerable time after the end of its economic stimulus programme.
:01:28. > :01:36.With that expiring next month, tension shift to when rates might
:01:37. > :01:38.rise. The chair of the Fed insisted that guidance of considerable time
:01:39. > :01:44.shouldn't be linked to a specific date. I want to emphasise that there
:01:45. > :01:51.is no mechanical interpretation of what the term considerable time
:01:52. > :01:55.means. As I have repeatedly said, the decisions the committee makes
:01:56. > :02:01.about what is the appropriate time to begin raising its target for the
:02:02. > :02:06.federal funding rate will be dated depending. What's the point of
:02:07. > :02:12.forward guidance if not linked with a date? The Fed needs to adapt to
:02:13. > :02:18.changing economies. Unemployment is falling, inflation coming back in
:02:19. > :02:23.line, but it needs the flexibility to adapt to changing economic
:02:24. > :02:27.conditions. Raising rates too quickly could choke an economic
:02:28. > :02:33.recovery. Keep them too low for too long and the economy could spiral
:02:34. > :02:35.out of control. America has been awash with cheap cash through low
:02:36. > :02:43.interest rates and economic stimulus. Those emergency measures
:02:44. > :02:48.can't last indefinitely. Shares in Sony have fallen by 12% in
:02:49. > :02:55.Tokyo today after they said it stands to lose $2 billion this year.
:02:56. > :03:00.That's more than four times its forecast of just a few months ago.
:03:01. > :03:05.The company blames a downturn in mobile phone business for the
:03:06. > :03:12.estimated net loss. Sony has promised a turnaround but will it
:03:13. > :03:17.deliver? I spoke earlier with a partner at frost and telephone and
:03:18. > :03:24.asked him if Sony's troubles were linked with a smart phones `` Frost
:03:25. > :03:26.and Sullivan. It is a balance sheet. They are taking the goodwill they
:03:27. > :03:34.had in the business. Having said that, the forecast has been lowered.
:03:35. > :03:42.The positioning is muddied. They aren't at the top end. They aren't a
:03:43. > :03:47.follower. They aren't acting at the low end. They are in a muddled
:03:48. > :03:54.position. It isn't the first choice of the customer. Zero at the mass
:03:55. > :04:00.market. Any indication they are addressing the issues? Apple has
:04:01. > :04:05.released new products. Samsung will react. There are so many other
:04:06. > :04:11.brands in the market. I don't see that changing. They are launching a
:04:12. > :04:18.new product. I don't see anything that will make it a category leader.
:04:19. > :04:24.I don't see anything that will attract it for the small market.
:04:25. > :04:29.They don't have a strategy if you look at what they have done. They
:04:30. > :04:35.will continue to muddle, begging the question, should they be in the
:04:36. > :04:39.business? Official figures in Japan show exports fell by 1.3% from one
:04:40. > :04:46.year ago. The data shows Japan shipments to the US declined in
:04:47. > :04:49.August, adding to concerns of the third`largest economy mightn't be
:04:50. > :04:54.able to rely on a pick up in trade to help recover from the April tax
:04:55. > :04:59.hike. News Corp demands of the European Commission have a tough
:05:00. > :05:01.approach with Google. They say the search engine has
:05:02. > :05:07.become a platform for piracy and that powers increase in every day
:05:08. > :05:12.with Google. Google said it tackles piracy rigourously.
:05:13. > :05:17.EBay has been compromised with users who clicked on some links diverted
:05:18. > :05:22.to a site designed to steal their credentials.
:05:23. > :05:25.It was set up to look like eBay's welcome page. Motorists in the UK
:05:26. > :05:32.are warned about the dangers of using smart watches while driving.
:05:33. > :05:35.The wrist device are covered by other laws designed to stop people
:05:36. > :05:40.checking gadgets on the move but officials say any accidents caused
:05:41. > :05:43.wide drivers distracted by the device will result in severe
:05:44. > :05:46.penalties. Currency and market watchers are
:05:47. > :05:52.waiting to see how Scotland votes in its referendum on Friday. Some tip
:05:53. > :05:59.the pound to head for a fall if it is a yes vote. I spoke earlier with
:06:00. > :06:06.Tony Nash from Delta economics. If there is a yes vote there will be
:06:07. > :06:11.volatility, some say 10%. It depends on how people calibrate the value of
:06:12. > :06:17.that pound. What is the GDP contribution? What stays with
:06:18. > :06:22.England? The separation isn't for some time. The volatility we will
:06:23. > :06:30.see is people figuring out the calculation. There are so many
:06:31. > :06:37.unknowns. The issue of currency and what Scotland users, sharing the
:06:38. > :06:41.pound, the euro, that isn't decided. That isn't decided yet. Until it is,
:06:42. > :06:49.it will be difficult to assign a value. Do you see the pound falling
:06:50. > :06:52.as much as 10% as some predict? It is possible but it depends on the
:06:53. > :06:58.tone from both sides. If you assume a yes vote, is there an agreeable
:06:59. > :07:06.tone? Many small countries don't have their own country, it currency.
:07:07. > :07:10.`` their own currency. Discussion has said that Scotland can't use the
:07:11. > :07:15.pound when a lot of other countries do that with other currency. An
:07:16. > :07:22.agreeable tone would help to calm the market and ease volatility. Lots
:07:23. > :07:29.of countries hold foreign currency in the pound. What impact in the
:07:30. > :07:35.region? Depending on the value and volatility, if there is a devalued
:07:36. > :07:38.pound, countries could look at their allocation of the pound, the
:07:39. > :07:45.third`largest reserve currency globally. If people retain a certain
:07:46. > :07:48.value to their reserve holdings, they might up their holdings or
:07:49. > :07:53.switch to other currencies. Not too long and we will know the outcome of
:07:54. > :07:57.the referendum. One of the world's biggest offerings will take place in
:07:58. > :08:00.New York with China's leading e`commerce site Ali Bubba expected
:08:01. > :08:06.to complete it they'll all shares to investors on Thursday `` Alibaba.
:08:07. > :08:13.Trading opens on Friday to the public. What can the company expect
:08:14. > :08:18.from investors? The big apple, America's financial
:08:19. > :08:22.centre. New Yorkers have a reputation as a tough crowd to
:08:23. > :08:27.please especially with investment as massive Chinese company at Alibaba,
:08:28. > :08:32.will soon discover when shares begin trading here at the New York stock
:08:33. > :08:38.exchange. In 20 years trading, it has been one of the biggest events I
:08:39. > :08:45.have witnessed. Inside this emblem of capitalism, Alibaba, trading and
:08:46. > :08:50.Alibaba, is about to have what could be the biggest stock offering on the
:08:51. > :08:54.planet, bigger than Facebook. Such is the anticipation for this trader
:08:55. > :09:00.who has had a request for shares by a Chinese social media. I am active
:09:01. > :09:04.on Chinese social media and I have had people chatting with me asking
:09:05. > :09:09.if I can connect them with their IPO team because they want to buy two `5
:09:10. > :09:17.million shares of the IPO. Why all the hype? This internet analyst
:09:18. > :09:21.explains. The company is poised to take advantage of the largest
:09:22. > :09:24.emerging middle class in the world, China, and the largest consumer
:09:25. > :09:30.class in the history of the world, China. Alibaba's success has made it
:09:31. > :09:36.the biggest force in Chinese internet. It's helped turn its
:09:37. > :09:45.founder Jack Meagher from a teacher into one of China's richest men. ``
:09:46. > :09:50.Jack Ma. Investors have been told to trust Jack, but should they? This
:09:51. > :10:02.company comes with unusual risk, including a unique owning structure,
:10:03. > :10:08.giving Mr Ma control. Despite the risk it appears there isn't a
:10:09. > :10:12.shortage of investors in the world largest economy covering for Alibaba
:10:13. > :10:19.in the rise of the world's second`largest economy.
:10:20. > :10:23.A look at the market and you can see the turnaround in trade this
:10:24. > :10:26.morning. The Nikkei is up, the Hang Seng and Australia are down despite
:10:27. > :10:30.those comments from the Federal Reserve in the US. That is it from
:10:31. > :10:38.this edition of Asia Business Report. Thank you for watching.
:10:39. > :10:44.Report. I am Mike Embley with the main news
:10:45. > :10:47.stories. With hours to go before polls open,
:10:48. > :10:49.both sides in the Scottish referendum campaign have held
:10:50. > :10:52.rallies as they made their final efforts to win over undecided
:10:53. > :10:56.voters. President Obama says American forces
:10:57. > :10:58.won't have a combat mission in Iraq, the day after his top general