:00:00. > :00:15.Now on BBC News, all the latest business news live from Singapore.
:00:16. > :00:22.On the sidelines of the G7 meeting the Japanese central bank chief
:00:23. > :00:26.talks about how an exit from the EU with Britain could in fact world
:00:27. > :00:38.trade. And from Sydney to London, can you believe it? Hypersonic
:00:39. > :00:44.flights might become reality. Welcome to Asia Business Report. The
:00:45. > :00:51.Japanese central bank governor told the BBC a UK exit from the EU would
:00:52. > :00:55.be a major risk to global growth. In the same interview he also defended
:00:56. > :01:01.his controversial negative interest rate policy. He was speaking with
:01:02. > :01:06.our correspondent on the sidelines of the G7 meetings in Japan. Of
:01:07. > :01:20.course, it is up to British people to decide whether or not to exit
:01:21. > :01:30.from the EU. But certainly, the latest T20 communique, or IMF
:01:31. > :01:40.analysis showed that this could be potentially quite serious -- G20. If
:01:41. > :01:49.a breeze it is agreed, it would have a significant impact. What about on
:01:50. > :01:56.Japan's economy? I am afraid through trade or in general the global
:01:57. > :02:03.economy, including Japan, the US or other economies would be affected,
:02:04. > :02:07.but as I said the decision is up to the British people to decide. The
:02:08. > :02:14.implementation of negative interest rates in January took everyone by
:02:15. > :02:17.surprise. When do you think it will start to IMPAC Japan's economy and
:02:18. > :02:26.what if it doesn't, what options do you have? -- impact. You will know
:02:27. > :02:33.that we announced in January, and implemented this new policy midyear
:02:34. > :02:37.February, we are still in early May. So although the impact on the
:02:38. > :02:47.financial market is quite clear, and already made, but impact on the real
:02:48. > :02:52.economy and the prices will take some more time. Is the ammunition
:02:53. > :02:56.running out, and what options do central banks have come a given
:02:57. > :03:07.these controversial monetary policy tools don't appear to be working any
:03:08. > :03:14.more? --, given these... In the US, the eurozone as well is Japan, I
:03:15. > :03:30.Singh Mann a trip policy has been making significant impact on the
:03:31. > :03:37.economy -- I think monetary policy. In that sense, monetary policy has
:03:38. > :03:43.worked. I don't think not just Japan, or even the ECB, I don't
:03:44. > :03:49.think at this stage monetary policy has reached the limit, I don't think
:03:50. > :03:58.so. Still we have enough room to further these monetary conditions.
:03:59. > :04:03.Of the Japanese central bank chief. Staying with Japan, latest data this
:04:04. > :04:07.morning showed a drop in demand for Japanese goods with exports falling
:04:08. > :04:08.10% in April compared with last year -- The Japenese. The slowdown is due
:04:09. > :04:13.to sluggish -- The Japenese. The slowdown is due
:04:14. > :04:19.to demand from China. Imports plunged 23% in April. The detainees
:04:20. > :04:26.trade balance is at a surplus of $7.5 billion. -- Japanese. Indian
:04:27. > :04:29.Prime Minister Narendra Modi has arrived in for the first time in a
:04:30. > :04:35.decade to strengthen ties following the end of a most -- and most of the
:04:36. > :04:41.sanctions. Talks with the President are expected to focus on plans to
:04:42. > :04:45.develop the southern port. India is investing in the project which could
:04:46. > :04:52.boost trade between India, Iran and Afghanistan, bypassing Pakistan.
:04:53. > :04:57.Ensure an group Axa is selling its investments in tobacco -- Insurance
:04:58. > :05:01.group. As one of the big institutional investors, to make
:05:02. > :05:09.such a move, Axa says it will sell bonds worth $2 billion. Here is the
:05:10. > :05:12.incoming CEO. Axa is announcing to divest from its tobacco
:05:13. > :05:17.investments. The reason is a very simple one. We are a large provider
:05:18. > :05:23.of healthcare insurance and what we have seen more and more is obviously
:05:24. > :05:26.chronic diseases cost a lot of money and we need to invest more in
:05:27. > :05:33.prevention in order to prevent those chronic diseases, and we want to
:05:34. > :05:38.really support that and not invest in tobacco, which creates more
:05:39. > :05:45.chronic diseases. Imagine flying from Sydney all the way to London in
:05:46. > :05:48.just two hours. Scientists are working on technology that could
:05:49. > :05:56.make such hypersonic flight a reality. They have successfully
:05:57. > :06:00.flown this rocket at 7.5 times the speed of sound, and it is led by the
:06:01. > :06:03.Australian government. Earlier I spoke with the chief defence
:06:04. > :06:10.scientist and asked about the latest on the project. Hypersonic flight is
:06:11. > :06:15.when you move at greater than mach five and five times the speed of
:06:16. > :06:19.sound. We are investigating flight faster than that. In theory you
:06:20. > :06:23.should be able to then be able to fly from Sydney to London in a
:06:24. > :06:27.couple of hours. However, if we do look at where commercial flight,
:06:28. > :06:32.which has been done at supersonic speed, like the Concorde, it is a
:06:33. > :06:37.tough commercial market. It does take some years to develop. We think
:06:38. > :06:39.that initially the applications will not necessarily be in human
:06:40. > :06:45.transportation but maybe in other things such as... You have mentioned
:06:46. > :06:49.Concorde. I was going to bring it up. It was retired and long time
:06:50. > :06:54.ago. It was too costly to run. It would suggest that perhaps getting
:06:55. > :07:02.somewhere quickly isn't really a priority. Yes. I think people would
:07:03. > :07:06.like to get somewhere quickly. Even if you get there quickly you still
:07:07. > :07:10.have jetlag. That is true. I am suffering from that now. There are
:07:11. > :07:15.other applications to this. It won't be applied to commercial flights
:07:16. > :07:21.yet. It might not be transporting people. Who will transport? Military
:07:22. > :07:25.applications are here? There would be military applications. The
:07:26. > :07:35.fastest planes we have seen in the military sense have been mach two or
:07:36. > :07:38.three, such as the SR71, so there could be applications in that sense
:07:39. > :07:44.to build very fast fighter jets potentially. But there is also the
:07:45. > :07:50.application in missiles, potentially, for defence purposes,
:07:51. > :07:56.and I think there is also a more near-term application of launching
:07:57. > :08:00.satellites. Cyber security might be a threat for every government and
:08:01. > :08:02.company around the world, but what is the chance of a truly
:08:03. > :08:06.catastrophic attack which could cause global havoc, and who is
:08:07. > :08:12.responsible for stopping the attacks, the government or private
:08:13. > :08:16.enterprise? One of the world's top cyber security expert and former
:08:17. > :08:20.Obama Administration adviser Jonathan Reeder says the private
:08:21. > :08:24.sector must step up and I asked him the biggest concern for the US. This
:08:25. > :08:29.thing we are worried about is destructive attacks on critical
:08:30. > :08:33.infrastructure -- Reiber. That is from security planning standpoint.
:08:34. > :08:38.There are other important things, like theft, but if you focus on
:08:39. > :08:41.destructive attack capability, we have seen examples where state and
:08:42. > :08:45.nonstate groups have done those things. Notable example in 2012, a
:08:46. > :08:52.hostel actor destroyed 30,000 hard drives for one of the largest oil
:08:53. > :08:58.companies in the world, Al making us revert to faxing and tight writing
:08:59. > :09:03.to continue business. -- making us. It could have perhaps altered
:09:04. > :09:07.production. Those kinds of attacks, if you assume that could happen in a
:09:08. > :09:10.conflict, there would be no holds barred we are looking at more
:09:11. > :09:15.potential destructive capabilities -- typewriting. You were the author
:09:16. > :09:20.of the US department of defence cyber strategy in 2015. Do you think
:09:21. > :09:25.the onus is on governments to solve the issue? That is a good question.
:09:26. > :09:31.Government and private sector have to work closely together. The
:09:32. > :09:34.private sector can block 90% of the incidents which could happen in
:09:35. > :09:40.cyberspace by making basic security investments. That is one example. In
:09:41. > :09:45.one destructive attack in the last couple of years the company had all
:09:46. > :09:50.passwords in a folder marked passwords. To access the system the
:09:51. > :09:53.password was password. Private sector companies leave themselves
:09:54. > :09:58.open when they do that. That is not OK. Private sector can raise the
:09:59. > :10:02.level of defence significantly. Instances when the private sector
:10:03. > :10:05.and government want to work together is an important area. One
:10:06. > :10:09.recommendation two countries I make is to have a mechanism for
:10:10. > :10:12.communicating between public and private sectors. That includes
:10:13. > :10:21.sharing information about threats and developing solutions. That ends
:10:22. > :10:32.this edition of Asia Business Report. Thanks for watching.
:10:33. > :10:36.The top stories this hour: President Obama has begun a visit to
:10:37. > :10:38.Vietnam aimed at strengthening defence and economic ties.
:10:39. > :10:41.The Vietnamese government is hoping that Mr Obama will announce
:10:42. > :10:46.the lifting of the partial US arms embargo.
:10:47. > :10:50.The result of Austria's presidential election is too close to call.