:00:00. > :00:13.Now on BBC News, all the latest business news live from Singapore.
:00:14. > :00:21.Has the Olympic Games come to an end, next stop, Tokyo. The 2020
:00:22. > :00:26.Olympics, could they ignite the sluggish economy? And could this
:00:27. > :00:31.football club become the next target for rich Chinese investors? Good
:00:32. > :00:37.morning, Asia. Hello, world. I'm Rico Hizon. In glad you could join
:00:38. > :00:44.us for the Monday edition of Asia Business Report. The 2016 summer
:00:45. > :00:50.Olympics is ending. The flag will now be passed to Tokyo. The 2020
:00:51. > :00:54.games have already been hit by a number of scandals, including
:00:55. > :00:59.corruption allegations. The biggest headache of all is the ballooning
:01:00. > :01:03.cost. The budget was just over $7 billion. But now with a swell it has
:01:04. > :01:10.gone to as much as 30 billion US dollars. That will make the Tokyo
:01:11. > :01:16.Olympic Games the most expensive ever. Is at work that? I spoke with
:01:17. > :01:20.an economist in Tokyo and asked them if this will jumpstart the Japanese
:01:21. > :01:26.economy? It will definitely help Japan. Tokyo is a construction
:01:27. > :01:31.industry. But for the taxpayer as a whole I think it will be very
:01:32. > :01:39.wasteful to spend it on sport. Where can the government save in boosting
:01:40. > :01:44.the Games? The Governor has been quoted in The Japan Times saying
:01:45. > :01:48.that he will definitely try to save on many venues and make it useful
:01:49. > :01:53.going forward after the Olympic Games. The Japanese government and
:01:54. > :01:56.the Tokyo government should definitely try to cut as much as
:01:57. > :02:02.possible. Given that they have committed certain infrastructure for
:02:03. > :02:08.the Olympic Committee I think there is a limit to how much they can cut
:02:09. > :02:14.down on infrastructure. But if they do spend on infrastructure, to build
:02:15. > :02:19.all these new venues and roads, how will this help the Japanese economy?
:02:20. > :02:27.This is a big spending projects. This will definitely help Japan's
:02:28. > :02:33.growth, at least in the medium term. 2016- 2018, in the run-up to the
:02:34. > :02:36.Olympics. It is estimated that because of this investment, the
:02:37. > :02:43.Japanese economic growth will be boosted by 0.1- 0.2%. It does help.
:02:44. > :02:55.But the question is, is it worth it? Is it, in your view? No. I am of the
:02:56. > :03:01.opinion that Tokyo should not have become the host of the Olympics. Now
:03:02. > :03:05.it is too late. But as I said, the Japanese government and the
:03:06. > :03:18.governors should attempt to reduce the inefficiency as much as
:03:19. > :03:21.possible. From Tokyo. Profits in Australia's Blue Scope Steel missed
:03:22. > :03:28.expectations even though they doubled their demands. They made
:03:29. > :03:34.$230 million in the year until June, 110% of a rise in profits. The Chief
:03:35. > :03:38.Executive expects the global steel glut to remain for some time despite
:03:39. > :03:42.the shutdown of some Chinese facilities as the country tries to
:03:43. > :03:46.reduce pollution. The operator of the Hong Kong stock exchange has
:03:47. > :03:50.introduced measures affected the day to deal with extreme price waves in
:03:51. > :03:56.the stock market. It will restrict stock from moving more than 10%
:03:57. > :03:59.during a five minute period during the trading day. That is similar to
:04:00. > :04:09.models used by stock exchanges in Singapore and Tokyo. China's Mertu
:04:10. > :04:15.has applied for a share sale in Hong Kong later this year. The selfie app
:04:16. > :04:21.is the most popular on the Chinese mainland. It could raise up to $1
:04:22. > :04:27.million. Most companies like Alibaba refer to list in the US. After
:04:28. > :04:34.months of speculation, the Indian government has appointed this man to
:04:35. > :04:41.replace the Governor of India's Central Bank. Who is he? This is a
:04:42. > :04:48.promotion. He is currently the deputy governor at the Reserve Bank
:04:49. > :04:52.of India who is an economist who has worked with the IMF. Like the man
:04:53. > :04:55.currently in the job, he has a reputation for being a warrior on
:04:56. > :05:00.inflation, who believes in keeping rates high to keep the cost of
:05:01. > :05:05.living under control. What are some of the big issues that the new
:05:06. > :05:12.governor will face when he takes over next month? We have been taking
:05:13. > :05:15.a look from the capital, Mumbai. His appointment has a thumbs up from
:05:16. > :05:21.most analysts and economists. He seems a safe pair of hands, maybe
:05:22. > :05:28.even more than the current man in the job. His reputation might be
:05:29. > :05:33.different from the previous person. But the situation he faces is the
:05:34. > :05:36.same. Cleaning up India's banking system will be a priority. State
:05:37. > :05:42.owned banks have been plagued by high levels of bad notes with bad
:05:43. > :05:49.economic growth and the delayed infrastructure projects. Given that,
:05:50. > :05:54.thanks provide over 75% of credit to individuals, getting their books in
:05:55. > :06:00.order is crucial to the well-being of India's economy. -- banks. The
:06:01. > :06:04.predecessor kept interest rates high to fight inflation which was close
:06:05. > :06:14.to double digits three years ago. Now it has slowed down to about 6%.
:06:15. > :06:18.But the RBA has set an ambitious target of reducing a further 24%
:06:19. > :06:25.next year. A huge task even the volatility of global food prices.
:06:26. > :06:33.Deciding whether to raise or cut rates will soon no longer be the
:06:34. > :06:36.only job of the Governor. They are putting in a monetary policy for
:06:37. > :06:41.collective decision. It is similar to the one followed in the US and
:06:42. > :06:46.UK. The government would have a say on who is on the committee. That is
:06:47. > :06:51.while most of the challenges for Patel will be using the system
:06:52. > :06:57.without ruining the autonomy of the Central Bank. He proposed a Monetary
:06:58. > :07:02.Policy Committee. That is why we will have vested interest in making
:07:03. > :07:11.it work and making it a success, the 24th Governor. BBC News, Mumbai. The
:07:12. > :07:17.world's biggest pharmaceutical companies are in an ongoing legal
:07:18. > :07:27.fight. The Japanese firm bought a stake of the Indian company. But
:07:28. > :07:30.there was misrepresentation of data and fraudulent activities. The
:07:31. > :07:39.dispute is in India and Singapore. We have more. Most Indians who
:07:40. > :07:43.visited a pharmacy like this one would have had contact with a
:07:44. > :07:47.factory. They employ more than 10,000 people creating medicines on
:07:48. > :07:57.display here. This vaccine is owned by some pharmaceuticals. But in
:07:58. > :08:05.2008, Japan's Daijisankyou took a controlling stake in the largest
:08:06. > :08:09.seas of an Indian company abroad. Damaging data surfaced a few years
:08:10. > :08:15.back and made headlines on financial pages. But most of the medicines
:08:16. > :08:19.they make our genetic. It is not something people talk about much.
:08:20. > :08:22.Why does this arbitration have the potential to cost it millions of
:08:23. > :08:34.dollars? It is unlikely to cause reputation damage in its homeland,
:08:35. > :08:39.though. China's Olympic gold medals have been done. It has set the
:08:40. > :08:45.target of winning the World Cup by 2050. They have bought much of Milan
:08:46. > :08:53.Dhammika AC Milan and Atletico Madrid and others. 26 years since
:08:54. > :08:57.Liverpool last won the top flight of English football. For two decades
:08:58. > :09:01.before that they were absolutely dominant internationally and
:09:02. > :09:04.domestically. But with the exception of the Champions League victory in
:09:05. > :09:12.2005, it has been relatively quiet for Liverpool fans. Any investment
:09:13. > :09:14.in the club, whether that is a stake or something more, could enable the
:09:15. > :09:21.club to buy the kind of players that win leagues like Pogba, Neymar, or
:09:22. > :09:25.Ronaldo. The clubs says it is not for sale of course. But it has
:09:26. > :09:30.hinted it may sell part of the business. China, of course, has been
:09:31. > :09:35.buying a load of European football clubs over the last two weeks alone.
:09:36. > :09:44.-- lot. It has Aston Villa, Atletico Madrid, AC Milan, Inter Milan, and
:09:45. > :09:49.just to name a few. China has a stated goal of winning the World Cup
:09:50. > :09:53.by 2050. To do that you need to get the populace interested in the sport
:09:54. > :09:57.and playing the sport, and where better to start than taking a stake,
:09:58. > :10:08.whether large that is, in a major European club. Before we go, a quick
:10:09. > :10:12.look at the stock market. We can see now, previous investors will be
:10:13. > :10:17.focused on oil prices, dollar weakness, and the Japanese yen. The
:10:18. > :10:24.Nikkei is up by 28 points currently. The All Ords Index is flat or lower.
:10:25. > :10:29.Thank you for an the singer to Nina us. I am Rico Hizon. Sport Today is
:10:30. > :10:39.up next. I am Greg Olsen. The top stories
:10:40. > :10:50.now.