:00:13. > :00:17.Record low interest rates, that's what investors in Australia are
:00:18. > :00:26.hoping for. But will they get them? And not long until fans of Samsung's
:00:27. > :00:29.Galaxy get to see the latest model, but can the company continued its
:00:30. > :00:36.strong growth and the more competition from China?
:00:37. > :00:44.Good morning, Asia. Hello, world. It's Tuesday and glad you could join
:00:45. > :00:48.us for this edition of Asia Business Report, I'm Rico Hizon. Pressure is
:00:49. > :00:53.on the central bank of Australia to give a jolted economy a boost when
:00:54. > :00:57.it reveals its interest rate decision in a few hours. Week wages
:00:58. > :01:02.and a strong currency are causing inflation to fall earlier. I asked
:01:03. > :01:05.Phil Mercer earlier if anyone is expecting a rate cut.
:01:06. > :01:11.That's the view of many economists in Australia. They believe the
:01:12. > :01:16.Reserve Bank of Australia will pull the trigger on another rate cut.
:01:17. > :01:22.That would take the cost of borrowing in Australia from its
:01:23. > :01:27.current level of 1.75% to a new record low. If the bank decides to
:01:28. > :01:32.reduce interest rates in this country it will be an attempt to
:01:33. > :01:36.increase the flow of money in the economy, to remove any blockages
:01:37. > :01:39.that may be hindering economic growth and providing a boost for
:01:40. > :01:44.employment. There are some economists in this
:01:45. > :01:49.country, though, Rico, who believe the Reserve Bank won't cut rates
:01:50. > :01:53.today, instead saving their powder should the Australian economy in any
:01:54. > :01:54.real trouble in the next few months -- hit.
:01:55. > :02:01.Phil Mercer in Sydney. In other business news making headlines,
:02:02. > :02:05.Cathay Pacific and Dragonair, its affiliate, cancelled all of their
:02:06. > :02:09.flights in and out of Hong Kong last night for 16 hours as Typhoon Nida
:02:10. > :02:13.swirls towards the region. The cancellation will last until 2pm
:02:14. > :02:15.today and it will involve more than 100 flights.
:02:16. > :02:21.South Korea will decide whether to revoke the certification of
:02:22. > :02:24.Volkswagen vehicles because of allegations the firm fabricated
:02:25. > :02:29.emissions test documents. It could result in the suspension of their
:02:30. > :02:31.sales and a fine on the German automaker. The decision is expected
:02:32. > :02:40.in a few hours time. Samsung will unveil its Galaxy seven
:02:41. > :02:45.today and investors will hope stocks continue to soar above expectations.
:02:46. > :02:50.The South Korean conglomerate posted its best profit in over two years
:02:51. > :02:55.last quarter, while its main rival Apple saw a sharp fall in profits
:02:56. > :02:59.due to tumbling iPhone sales during the same period. I asked Jake
:03:00. > :03:01.Saunders what the latest model is expected to offer.
:03:02. > :03:05.That's one of the things they are trying to emphasise with this
:03:06. > :03:11.release, the curved screen and the curved edge. With the S7 they had an
:03:12. > :03:16.edge to the screen but the phone was flat, so there will be a economics
:03:17. > :03:20.there as well. It will be 5.7 inches as well. Is it a marketing gimmick
:03:21. > :03:24.for Samsung because they are skipping the model number six, which
:03:25. > :03:29.it had with the smart phone, it is a five and now it is a seven? It seems
:03:30. > :03:33.like they can't count but also Microsoft did something similar with
:03:34. > :03:39.Windows, they went from eight all the way to ten. If Microsoft can do
:03:40. > :03:44.it then why not Samsung? It's about bringing the phones into
:03:45. > :03:47.synchronisation. You had the S7 and the S7 edge, which came out in
:03:48. > :03:54.March, so they want the linearity with the modelling. Could this
:03:55. > :03:58.sustain their profitability into another quarter? They have been
:03:59. > :04:06.hammered over the past two years by the Chinese manufacturers. Certainly
:04:07. > :04:10.in 2015, second quarter of 2015 was very tough for them and they
:04:11. > :04:14.experienced heavy conditions due to the new iPhone that came out last
:04:15. > :04:24.year. Yes we have seen while way, out with its P9 putting pressure on.
:04:25. > :04:28.But they have to innovate. They have to make the whole service tighter
:04:29. > :04:32.and they have to benefit the profitability, which you mention, in
:04:33. > :04:34.to a fairly positive second half to to a fairly positive second half to
:04:35. > :04:42.the year. A marriage made in Silicon Valley,
:04:43. > :04:45.Tesla merging with the Zola installer Solar City. The move is
:04:46. > :04:49.considered a game changer as the joint company prepares to launch its
:04:50. > :04:52.massive plan for the future later this week. Earlier I asked Dave lead
:04:53. > :05:01.if everyone thinks it's a good idea. Elon Musk actually has a big stake
:05:02. > :05:06.in both Tesla and Solar City. Wild Hasler is known as an electric car
:05:07. > :05:11.maker, one side of their business is creating energy storage units. --
:05:12. > :05:16.while Tesla. You can buy them for your home or your business. Solar
:05:17. > :05:20.City make solar panels. Joining the two countries they hope to have
:05:21. > :05:23.literally a top to bottom solution, people having solar panels on their
:05:24. > :05:28.roof and a storage unit in the building. By bringing the companies
:05:29. > :05:35.together Elon Musk thinks they can streamline that, saving $150 million
:05:36. > :05:39.a year by doing that. That's the thinking behind this Foreteller.
:05:40. > :05:44.Dave, this is a merger of two money-losing enters these, depending
:05:45. > :05:51.on borrowing from the market -- entities. This is a risk reward kind
:05:52. > :05:54.of deal? It really is. Many investors have shared their
:05:55. > :06:02.concerns. This is a company... They are calling it a KERS lurve backed
:06:03. > :06:07.bailout of Solar City -- Tesla backed. The stock was heading
:06:08. > :06:12.downwards. Tesla taking them over. Many think it is Elon Musk's way of
:06:13. > :06:16.saving a company he had a large interest in, owning 20% of their
:06:17. > :06:20.stock. A lot of criticism of Elon Musk to do that.
:06:21. > :06:28.Uber has made a deal to merge its loss-making operation in China with
:06:29. > :06:31.local rival Didi Chuxing. The ride sharing app has been battling to win
:06:32. > :06:38.a bigger share of the Chinese market since launching two years ago
:06:39. > :06:40.Stoppila Sunzu at what's at stake. -- two years ago. Let's look at
:06:41. > :07:34.what's at stake. Joining me now from New York is a
:07:35. > :07:38.CEO of Task Ventures and a strategic advisor to Uber. Thank you for
:07:39. > :07:45.joining us on Asia Business Report. Was this a good deal for Uber or was
:07:46. > :07:49.it lopsided for DD? At least from Uber's perspective, whenever you
:07:50. > :07:54.invest $2 billion and less than two years later you get $7 billion value
:07:55. > :07:57.back, that's a good deal. I make investments in tech companies all
:07:58. > :08:03.the time and if I could do that I would do it any day of the week. But
:08:04. > :08:08.by signing off on this deal, doesn't Uber basically raised the white
:08:09. > :08:13.flag, we've given up on China? I think Uber came a lot further in
:08:14. > :08:16.China than a US tech company ever has by a longshot and now they are
:08:17. > :08:21.part of a company within China that has the potential to go from its
:08:22. > :08:25.current valuation of $35 million to five or ten times that, which will
:08:26. > :08:29.make Uber vastly wealthier and more successful than it is right now. To
:08:30. > :08:33.be you have to operate different league in different parts of the
:08:34. > :08:38.globe and Uber thought the best way to do that was to consult with Didi
:08:39. > :08:42.in this case -- differently. But tell us, losing $1 billion a year,
:08:43. > :08:56.why was it different to make money in China -- difficult? Almost every
:08:57. > :09:00.tech company, you did a report on Tesla and SolarCity, to scale
:09:01. > :09:03.globally you have to invest a lot of resources before you get the
:09:04. > :09:07.profitability. That's true of Facebook and Google and other
:09:08. > :09:13.companies and Google is already profitable all over the world. Uber
:09:14. > :09:16.now by emerging with Didi it can be profitable in China too. It takes
:09:17. > :09:23.the most valuable start-up in the entire world and making it more six
:09:24. > :09:32.at and better. The deal with Didi Chuxing, does it pave the way for
:09:33. > :09:36.the Uber IPO -- make it more successful and better. I've been
:09:37. > :09:39.doing business with Travis for five years now and whenever I think he
:09:40. > :09:44.will go left, he goes right, and whenever I think he goes right, he
:09:45. > :09:51.goes left. I remember when Facebook bought WhatsApp for $19 billion, I
:09:52. > :09:56.remember thinking, while, if Uber had $19 billion I would be so happy.
:09:57. > :10:02.We are now worth 3.5 times that -- while. Would you like it to happen
:10:03. > :10:07.now? I don't know -- plough. When I let Travis do his job he makes me a
:10:08. > :10:10.lot of money cash while. I will let him do that whenever he wants. --
:10:11. > :10:18.wow. There is plenty more on the Didi
:10:19. > :10:23.Uber deal on the website including an analysis from our ABI
:10:24. > :10:31.correspondent Richmond Ridge Warnie -- AVR correspondent -- AVR.
:10:32. > :10:42.Days before the opening of the Rio Olympics,
:10:43. > :10:45.research suggests that pollution levels remain worryingly high.
:10:46. > :10:48.South China is braced for powerful Typhoon Nida,