16/06/2016 Asia Business Report

Now on BBC News, all the latest business news, live from Singapore.

On hold. The Federal Reserve stands back on interest rates because of

weak growth and the possible impact of a British expert. Mickey Mouse

has set up base in Shanghai. Will be $5.5 billion investment be a hit? --

the. Good morning, Asia. Hello, world. I'm Rico Hizon. This is Asia

Business Report. Thank you for investing your time with us. It is

Thursday. We start with the US Federal Reserve. They have left

interest rates on hold. It is not in a hurry to increase them. They

expressed concern over weak US jobs growth and the possible impact from

Brexit. Recent economic indicators have been mixed, suggesting that our

cautious approach to adjusting monetary policy remains appropriate.

As always, our policy is not on a preset course. If the economic

outlook shifts, we will shift correspondingly. Earlier, I spoke to

Krishnan Tshwane on the impact on markets. No one was surprised by the

fact that the rates have been put on hold. There is an indication that

they have been put up again this year slowly but surely, but not at

the pace we expected when the central bank in the US had said it

is the end of the virtually low interest rate environment. We have

to start weaning ourselves off cheap money and seeing interest rates go

up. The trouble is that the world and US economy are in a far more

precarious condition than they were back in December when the interest

rate environment started to rise. What you are seeing now is global

uncertainty increasing especially over factors like Brexit. That was

mentioned in the press conference after the official statement. This

is spooking many investors? It is. We have seen it happen over the last

couple of days. Investors are flocking to safe haven currencies,

like the yen, here in Asia. That has put the spotlight on another central

bank out here in the last couple of days from Wednesday. In fact, the

Bank of Japan has been meeting and assessing what to do about the

strength of the yen because it has been strengthening as a result of

investors looking for safe havens. Putting Brexit a side. With the

Federal Reserve sitting on monetary policy at this point, as it also

benefited many Asian economies? They would rather see a central bank not

moving on interest rates rather than raising the cost of rowing. Yeah.

That is true. -- borrowing. Asian economies benefited from the zero

interest-rate environment in the US. Billions of dollars worth of foreign

funds pumped money into the Malaysian currency, for example, and

they really benefited from this. The problem is not the fact the US is

not raising interest rates right now, but what it tells you about the

environment we are in in terms of the global economic uncertainty.

That is why, whether you are in Asia or the US, the outlook for the

economy all over the world is looking pretty grim. A la Asia

Business Report correspondent. -- our. Civil Aviation Authority is our

shaking up the rules. Bolstering competition and connecting more of

the country. A role has been scrapped stopping airlines being in

business for five years before becoming international. -- rule. No

passengers taking flights around India than ever before. -- more. It

is great news for the country's airlines. And on Wednesday, they got

another boost when it got easier for Indian carriers to frying abroad. --

to fly. A rule stopping anyone who has not flown for five years going

international has been scrapped. Companies like AirAsia still must

have at least 20 planes in their fleet, meaning the weight to fly

those more lucrative journeys goes on. -- wait. TRANSLATION: On the

whole it is a positive policy that will promote growth in India. After

turbulent times, some Indian airlines made profits in 2015 after

a fall in crude oil Reifers meant cheaper jets fuel. The number was

three times that growth here. That makes India one of the

fastest-growing aviation markets in the world. But flying here is not

cheap. The government wants to change that by making a slight small

affordable and accessible. -- air flights. The new policy promises to

make fares cheaper. Capping our long flights at $42. -- hour-long. In

such a vast company oh country, they have promised new airports as well

as the bigger she country. If we can have a 22% growth rate with 15 main

cities imagine if I bring, you know, another 50 or 100 cities into the

network, how much growth would happen? Counting fares. The

government will be looking for signs that this policy will help the

industry take off. BBC News, Delhi. Disney has entertained over 1000

ominous party officials in Shanghai as it prepares to open its first

theme park in Shanghai. It has been described as the biggest step the

company has ever taken. But there has been criticism in the Chinese

media about the price visitors have to pay. We were there. It looks like

Disney, with that castle anchored in the centre. It feels like Disney, an

escape from the real world. And it sounds like Disney! Welcome to

Shanghai, Disney. But this park is different. This time, Mickey Mouse,

is Communist Party approved. This was the latest meeting between the

president, Xi Jinping, and the company's Chief Executive. The

Communist Party chief has already been to three Disney parks,

apparently. It has taken $5.5 billion, but now the executive has

his park and it is ready for visitors. Everything they see and

experience, the attractions, the food, the entertainment, down to the

smallest level of detail, is instantly recognisable, not only as

authentically Disney, but as distinguish I need is. But, it --

Chinese. But it comes at a price. They refused to let us have and

interview. Is just for rich people? I don't want to talk about it. For

some of the 10,000 staff behind the scenes, a day at Disney is beyond

their reach. A day for the show would be more than the monthly

income in China. This person told us he was happy with his pay. Butty

couldn't talk about it. Said it wasn't convenient to discuss. -- but

he. Disney is unapologetic about its high-end food prices. It is all

about a battle for the richer look last. The home-grown mega firm is up

for it. It has opened a home-grown theme park just two weeks ago in the

region. Disney thinks it will tempt people with its authentic offering.

And there are lots to tempt. 330 million within a few hours loop is

drive. Is it the real thing? -- hours'. Disney has gone through a

long road to change to be unique to Shanghai. But the radical difference

is behind the scenes. This is a joint-venture. Disney is in business

with firms owned by the Shanghai government. That makes lots of

profits. It is a distinctly Chinese arrangement in an authentically

Disney setting. BBC News, Shanghai. And, of course, tomorrow, on Asia

Business Report, we will get taking a look at whether the theme park in

Shanghai will draw visitors await from China's other Disneyland across

the border in Hong Kong. -- away. Watch out for that. A quick look at

the markets. A mixed sentiment about Asian investors in early Thursday

trading. This is after the central bank kept business -- interest rates

unchanged. The Nikkei is bothered by the stronger yen against the US

dollar and the meeting from the Bank of Japan. The All Ords Index is up.

There is relief for them that the Federal Reserve did not raise