:00:00. > :00:00.of her last known movements. Now on BBC News all the latest business
:00:00. > :00:19.news live from Singapore. India's Prime Minister is looking to
:00:20. > :00:26.drum up more business on a high profile visit to the US.
:00:27. > :00:45.China vows penalties after a massive trade financial fraud was revealed.
:00:46. > :00:48.Welcome to Asia Business Report. India's Prime Minister Narendra Modi
:00:49. > :00:51.touches down in the US on Friday, a country that denied him these are
:00:52. > :00:54.four years after religious riots in the State of Gujarat where he was
:00:55. > :00:58.the Chief Minister. This will be his first visit since taking office, he
:00:59. > :01:04.is set to meet 17 business leaders including the heads of Google,
:01:05. > :01:08.Goldman Sachs and others. He is expected to declare India open for
:01:09. > :01:17.business. Now we go to our correspondent.
:01:18. > :01:20.Narendra Modi's rousing invitation to foreign companies has already got
:01:21. > :01:23.some response from the East with his visit to Japan and then his meeting
:01:24. > :01:26.with the Chinese president ending with the promise of investments in
:01:27. > :01:31.India worth tens of billions of dollars. But now as the Prime
:01:32. > :01:37.Minister heads West, can he convince America to do the same? Especially
:01:38. > :01:44.after the troubled relationship he had shared with the US in the past.
:01:45. > :01:47.There are American companies which operate out of Gujarat so they have
:01:48. > :01:55.an experience of how he ran Gujarat as Chief Minister. He also has a
:01:56. > :01:58.reputation of being good at implementing and delivering on his
:01:59. > :02:11.promises, so I think what he says he will deliver, that should be
:02:12. > :02:15.expected. But he may have to do more. US companies, in particular
:02:16. > :02:23.pharmaceutical firms, are worried about patent protection in India.
:02:24. > :02:24.And the American drug authority has had problems with the authority of
:02:25. > :02:33.some medicines produced in the country. But India also want more
:02:34. > :02:36.from the US. IT firms here are concerned about new immigration laws
:02:37. > :02:46.in America and what they mean for their staff's work permits. And then
:02:47. > :02:49.there is the civil nuclear deal, an agreement signed years ago between
:02:50. > :02:53.the two countries stuck over a dispute about who would be liable if
:02:54. > :02:57.there was a nuclear accident. There was a deficit of trust. We attempted
:02:58. > :03:00.to do some big things with the last government but got stuck. But
:03:01. > :03:06.getting some of these issues back on track would help. India's is already
:03:07. > :03:14.a place where some American brands have found success. Many more would
:03:15. > :03:15.like to tap into this large population.
:03:16. > :03:23.find themselves dealing with more competition than ever before and
:03:24. > :03:26.exploit this opportunity, the government here will have to ensure
:03:27. > :03:36.that it exceed passage to India is your for businesses from overseas.
:03:37. > :03:39.`` easier. India's bureaucracy and its slow
:03:40. > :03:47.reform have been challenges for the country especially as it attracts
:03:48. > :03:51.more business from the US. But my guest says India's government is
:03:52. > :03:56.starting to make changes. We have a government that is more cohesive.
:03:57. > :03:59.But the key will be at the state`level and if his party can
:04:00. > :04:13.take state level officers so you can have uniform voice is. `` voice. One
:04:14. > :04:15.of the issues in India has always been navigating through the
:04:16. > :04:19.bureaucracy. Over the next several years as the election in the states
:04:20. > :04:23.occur there is optimism. The US and India, particularly with Modi, there
:04:24. > :04:28.has been a rocky relationship. Will they be able to resolve these? They
:04:29. > :04:35.have to. This relationship will be incredibly important. They have to
:04:36. > :04:41.work through these trade deals. They recognise the importance of
:04:42. > :04:45.cross`border trade. India and Japan will have had issues, even India and
:04:46. > :04:48.China, they have had border issues and economic issues as well so Modi
:04:49. > :04:56.is making an attempt to go out and build those relationships. What does
:04:57. > :04:58.India need to do to try to compete with the dominance of China,
:04:59. > :05:04.especially with these huge deals that have been announced with the
:05:05. > :05:07.Chinese investing in India? 100 million people will be entering the
:05:08. > :05:13.workforce in the next few years, that is more than a population of
:05:14. > :05:20.England and France combined. So they are a huge population but they need
:05:21. > :05:23.to get their infrastructure updated. They need to improve their operating
:05:24. > :05:28.models for more efficiency and less bureaucracy. They also have to send
:05:29. > :05:43.a signal to investors through tax changes, but in the past there have
:05:44. > :05:46.been some rocky roads. In other business news, Apple shares slid by
:05:47. > :06:10.4%, wiping out $23 billion in market value due to problems with its new
:06:11. > :06:14.products. It has also faced claims that the new iPhone 6 is prone to to
:06:15. > :06:21.bending. Apple says they have only received a few complaints over the
:06:22. > :06:24.bending. Nike shares jumped by 5% in US trade. Profit rose to $963
:06:25. > :06:30.million because of higher sales during the World Cup. Shares of a
:06:31. > :06:36.Korean carmaker tumbled to a six`month low over fears of a
:06:37. > :06:45.strike. Workers have been in a pay dispute with management for months.
:06:46. > :06:59.Japan's efforts to curb inflation appears to be waning. Core consumer
:07:00. > :07:02.prices rose in August which is below market expectations. It has been
:07:03. > :07:06.below the market forecast of 2.3% with the effect of Japan's recent
:07:07. > :07:13.tax changes. It is 1%, well below the target of 2% of the central
:07:14. > :07:18.bank. For more news and analysis be sure to log onto our website. China
:07:19. > :07:22.has discovered almost $10 billion in fraudulent trade deals following a
:07:23. > :07:30.year`long investigation. Companies faked, forged and legally reused
:07:31. > :07:34.export `import documents. That is according to their currency
:07:35. > :07:40.regulator. China also said there was an illegal channel for some tunnels
:07:41. > :07:54.to move funds. Earlier I asked a financial analyst how this would
:07:55. > :07:56.impact markets. Chinese companies have been pledging commodities, iron
:07:57. > :07:59.ore copper, even cornl, against bank loans which they have taken and
:08:00. > :08:02.reinvest and that money into property and unrelated areas. This
:08:03. > :08:05.means that the global numbers on commodity imports by China, which is
:08:06. > :08:13.the significant importer of all commodities, have been inflated much
:08:14. > :08:16.beyond what analysts had expected. As a consequence, markets are being
:08:17. > :08:19.riled as we speak because if those numbers were inflated it means
:08:20. > :08:23.actual demand is much more or less than it seemed to be. We saw
:08:24. > :08:30.commodity markets being rattled when this was first revealed in June, so
:08:31. > :08:36.how will markets react now? The whole year has seen commodity
:08:37. > :08:40.markets doing poorly. They have been falling in gold, that clearly shows
:08:41. > :08:46.how important China is in terms of all commodity prices. Copper prices
:08:47. > :08:50.have been coming down since the unveiling of this scandal in June
:08:51. > :08:55.and one issue I have been looking at is corn. That is American corn
:08:56. > :09:08.farmers could be impacted if the price of corn is affected. That is
:09:09. > :09:13.because the numbers were artificially inflated. So it is a
:09:14. > :09:15.list and not just the iron ore, or copper markets but other things such
:09:16. > :09:19.as agriculture will have huge repercussions. Exactly. This would
:09:20. > :09:23.impact on global trade in commodities over the next couple of
:09:24. > :09:28.months until we can figure out how much of this shadow lending occurred
:09:29. > :09:34.in China by the banks. This added to the over inflation of magnitudes of
:09:35. > :09:37.commodities being traded. Formula 1 is the pinnacle of motor
:09:38. > :09:41.racing where teams spend millions of dollars on their cars and drivers.
:09:42. > :09:53.Technology affects team chances of winning, so how has it changed over
:09:54. > :09:59.the years? We will hear from 13 time Formula 1 winner Tim Coulthar. It
:10:00. > :10:02.has changed so much since I started. When I started there while
:10:03. > :10:07.the three buttons on the wheels, but now it has been much more advanced.
:10:08. > :10:13.Now there are 35. Drivers make the adjustments while they are driving
:10:14. > :10:26.as well. We have much better use of data transfer and storage. Computer
:10:27. > :10:30.Power has improved and the software that the cars run on enables more
:10:31. > :10:37.parameters to be logged and data logging as well, that can be
:10:38. > :10:44.adjusted by the driver. That is all for this addition of Asia Business
:10:45. > :10:52.Report, thanks for watching. I'm Mike Embley. The FBI has said it
:10:53. > :10:59.has identified the man who beheaded journalists and aid workers in
:11:00. > :11:00.Islamic State 80 is. President Obama has warned of the consequences if
:11:01. > :11:01.the world