01/07/2016

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:00:00. > :00:00.decision on airport expansion in the south-east of England until a new

:00:00. > :00:19.Prime Minister is in place. An announcement on projects at Heathrow

:00:20. > :00:25.or Gatwick had been expected. As the financial turmoil following

:00:26. > :00:29.Britain's leave vote, has it subsided? And, the sharp edge of the

:00:30. > :00:31.deal. From today, the Japanese electronics giant belongs to a

:00:32. > :00:46.Taiwanese company. Good morning, it is Friday, almost

:00:47. > :00:50.the weekend. That you could join us for this edition of Asia Business

:00:51. > :00:59.Report. Markets have been all over the place during the last week or

:01:00. > :01:02.so. Creeping confidently up, tumbling down, gradually climbing up

:01:03. > :01:07.again. It has been a week since the EU voted to leave the European

:01:08. > :01:13.Union, with the pound getting a hammering. How bad has it really

:01:14. > :01:20.been? Power Asia business correspondence is a look.

:01:21. > :01:24.What a week it has been, some $3 trillion wiped off global markets in

:01:25. > :01:31.the aftermath of the vote for Brexit. Asian markets were the first

:01:32. > :01:36.to react to the news that the UK had voted to leave. Then the case or the

:01:37. > :01:49.biggest one-day fall since the tsunami in 2011. Look at the damage.

:01:50. > :01:55.It was the same across the UK, Europe and the US. But take a look

:01:56. > :02:00.at this. The barring blue is the Asia Pacific index, excluding Japan,

:02:01. > :02:06.and about five days after Brexit, Asian markets were still down, but

:02:07. > :02:10.not as badly off as the rest of the world. It is the same theme after

:02:11. > :02:16.other major natural events. Take a look at this chart. About a week

:02:17. > :02:22.after the 2008 collapse of Lehman brothers, the world index was up

:02:23. > :02:30.about 2.4%, but the Asia index was up even more. Then a month later, at

:02:31. > :02:35.world stocks fell by 17%. Asia fell as well but not by as much. It is

:02:36. > :02:41.the same story after a major national disaster, even if that has

:02:42. > :02:44.taken place in Asia. After the 2011 earthquake and tsunami in Japan,

:02:45. > :02:50.stocks in Asia recovered to do three times as well as the rest of the

:02:51. > :02:56.world. It is not just markets. Even though projections for growth this

:02:57. > :03:03.year have been reduced, Asia is still expected to post 5% growth as

:03:04. > :03:11.a whole. That is compared to low or negative growth in the developed

:03:12. > :03:15.world. The Brexit decision is also likely to play out positively for

:03:16. > :03:18.Asia. China's slowdown is having an impact, which is likely to be the

:03:19. > :03:24.biggest risk for Asia in the months ahead.

:03:25. > :03:33.In addition to stocks, investors are keeping a close eye on UK property.

:03:34. > :03:38.Many developers and banks have investors in London, and a major

:03:39. > :03:43.Singapore bank decided on Thursday to stop offering loans for London

:03:44. > :03:46.property. Other Singapore banks are urging caution, but are some

:03:47. > :03:51.investors looking for opportunities now that the pound is at record

:03:52. > :03:55.lows? Earlier I spoke to the managing director for South East

:03:56. > :04:02.Asia at the property giant. I think some investors will think so. I

:04:03. > :04:07.think we can expect some discount in prices. The London residential

:04:08. > :04:15.market had already come off about 5-10%, and it could come off more.

:04:16. > :04:20.What about the commercial side? It is more resilient, underpinned by

:04:21. > :04:29.some good strong fundamentals, it is at a 15 year low, vacancy. I think

:04:30. > :04:35.the commercial market will be more resilient, but it is bound to be

:04:36. > :04:39.more subjective, and there will be some concern on occupancy and where

:04:40. > :04:43.rent is going. We can see some price adjustment as investors pull out of

:04:44. > :04:46.the market we don't get as much investment capital. It has been a

:04:47. > :04:56.week are now since the Brexit vote. What are the trends right now? I

:04:57. > :05:01.think it is too early to say. I suspect over the coming months we

:05:02. > :05:05.will see fewer transactions. The investors we were talking to are

:05:06. > :05:12.starting to say that it could be an opportunity to enter the market at a

:05:13. > :05:17.lower point. Along long-awaited tax amnesty scheme takes effect in

:05:18. > :05:20.Indonesia today, lasting for five months, and the government will hope

:05:21. > :05:26.this is bringing in billions of dollars in extra revenue it can use

:05:27. > :05:30.to close its ongoing budget gap. Earlier I spoke to the editor of BBC

:05:31. > :05:35.Indonesia, who took to the streets of the capital to see how locals

:05:36. > :05:43.felt about the rules. They are hoping that by pardoning past tax

:05:44. > :05:49.fraud and giving people low tax rates that they will get an extra

:05:50. > :05:54.billion dollars they can put in the budget, particularly a focus on

:05:55. > :05:59.infrastructure, growth and building, which are the key elements of Joko

:06:00. > :06:05.Widodo's presidency, and an attempt to spur growth. The markets

:06:06. > :06:08.responded positively to this move, strengthening the rupiah. When I

:06:09. > :06:15.took to the streets of Jakarta people felt very uncomfortable.

:06:16. > :06:20.TRANSLATION: I don't think it is a fair policy at all, it is completely

:06:21. > :06:24.unfair. I work and I pay the right amount of tax. My tax comes out of

:06:25. > :06:33.my salary every month at the same rate. I work very hard and pay my

:06:34. > :06:38.tax on time to the government. It is a progressive public policy, but

:06:39. > :06:42.will it benefit the people of Indonesia? What we need to make sure

:06:43. > :06:46.of is that the tax money that does come back is not stolen by corrupt

:06:47. > :06:56.officials. Everyone needs to be honest. It is not just, not paying

:06:57. > :06:59.tax is a form of corruption. I fully understand how the process of

:07:00. > :07:04.sending money overseas works. There is no way that large amounts of

:07:05. > :07:08.tax-free money can be processed and sent overseas without some kind of

:07:09. > :07:14.cooperation by government officials or knowledge. With this tax amnesty

:07:15. > :07:18.we are being too obliging to people who run away with money that should

:07:19. > :07:23.have gone to the government and used for the good of the people. There

:07:24. > :07:27.have been a number of high profile tax corruption cases, one in

:07:28. > :07:31.particular that involved a tax official who was helping effectively

:07:32. > :07:38.smuggle money out of the country without paying tax. These kinds of

:07:39. > :07:42.cases are in peoples minds. Across the country, quite startling figure

:07:43. > :07:54.is that only 30 million people in Indonesia pay any form of tax, in a

:07:55. > :07:57.country of 250 million. Sharp electronics will be overtaken today

:07:58. > :08:02.by a Taiwanese company. There may be as many as 7000 job losses. How does

:08:03. > :08:16.Japan feel about losing ownership over one of its iconic ransom? With

:08:17. > :08:22.a pricetag of $2000, this robot is sharp's latest Android, which come

:08:23. > :08:29.with features of the smartphone. It was unveiled as the firm agreed to

:08:30. > :08:35.be taken over by Fox column, becoming the first electronic giant

:08:36. > :08:41.to fall into foreign hands. Had if that one of the most iconic brands

:08:42. > :08:47.in Japan being snapped up by China? China tends to copy other's

:08:48. > :08:53.technology, so I am worried. I earn a lot of Sharp products, so I feel

:08:54. > :08:57.sentimental. Sharp was once a crown jewel of the Japanese tech sector.

:08:58. > :09:02.It was behind the first commercially produced TV set here, now it is on

:09:03. > :09:10.the long list of recent Chinese acquisitions of foreign companies.

:09:11. > :09:19.So what went wrong? Sharp netted on very large kilometres. Consumers

:09:20. > :09:24.shifted their interest from large TVs too much smaller smartphone.

:09:25. > :09:30.Sharp had a big factory for large skin televisions south of Osaka, and

:09:31. > :09:33.made the big mistake that they financed it with bank loans instead

:09:34. > :09:41.of shares. To make it profitable again they will need to tap into the

:09:42. > :09:43.latent potential. The concern is whether its innovative spirit will

:09:44. > :09:51.be able to move on under new management.

:09:52. > :09:58.Before we go, a quick look at the markets. Asia gaining yet again for

:09:59. > :10:03.a fourth straight session. It is up, up and away. The Nikkei up half a

:10:04. > :10:10.percent, the All Ordinaries leading .4%, still in positive territory.

:10:11. > :10:14.Wall Street investors feeling increasingly confident America will

:10:15. > :10:21.not feel significant effects from Brexit. On Wall Street, the Dow

:10:22. > :10:29.Jones soaring by 1.3%, and that is a gain of about 800 points in three

:10:30. > :10:30.days. Thank you for investing your time with us, Sport Today is