23/08/2016 Asia Business Report

child sex offences. He admitted abusing 11 boys between 1969 in

1986. Now on BBC News, life in Singapore. Win Palace opens an

account that can turn around the fortunes of the territory's

struggling gaming incher street. And charities are stepping in to help

first-time homebuyers in Australia. Good morning, Asia. Glad you could

join us. Casino magnate and rolling dice on the future of gaming in

Macau, an industry struggling with very little growth. But investors

continued to pour money despite China's sterling economy and the

government's campaign against corruption. Check out this footage.

American casino tycoon macro tool, just open the most expensive casino

in Macau,. -- Steve Wynn. Its rival, Sheldon Anderson, hopes to open a $3

billion resort but will they walk away with winning profits? I asked

Sophie from corporate ratings whether the men are making safe

bets. We do expect slower growth in casino 's these days. Normally it

will take up to 18 months but for Wynn Palace and also the recently

opened studio city, we expect 18- 24 months to become a more mature

casino, given the top rating environment. It is a tough operating

environment. It is quite saturated. So many casinos in Macau and also,

you have more competition throughout the region, particularly from the

likes of Singapore and the Philippines. We do expect Macau to

be relatively competitive, not only because of the holdings in Macau but

also, the Philippines, Vietnam, Cambodia and also Singapore. They

also compete for VIP gamblers from China. That being said, we are still

positive on the long-term growth in Macau gaming given the penetration

and also the rising middle class as well as the growing disposable

income in China. Macau, Sophie, also has a limited number of licences.

How will this impact the industry? Most of the licences will expire in

2020 or 2022. We do expect the government will review the licences

of when the time is bad but given a huge amount of investment, we cannot

think of any one of them that may not be given the gaming licence

renewal when the current licence expires. Sophie Lin they're speaking

about Macau's gaming market. Profits at Petronas have dropped 96% in the

three months to June. Though oil prices and volatility in the sector.

Net income falling to $86 million. The firm had been planning a

restructure of its business with a loss of about 1000 jobs. Letters

have a quick look at oil price is standard early Asian trading. To

step. This is in addition to the loss of

3% in New York trading overnight. US pharmaceutical giant, Pfizer has

confirmed it will buy back cancer drug company Medivation. It produces

a well-known prostate cancer treatment which is reportedly worth

about $2 billion in retail sales. Shares in the Swiss agricultural

group have grown after US regulator approved a takeover by Chemchina. It

will be the biggest acquisition by a Chinese firm that it still needs

final regular tree approval by regulators. The company makes

pesticides on seeds and a quarter of its sales are in the US. Well, it's

been two months since British voters decided to leave the European Union

and head of the referendum, Japanese businesses were some of the most

vocal against Brexit. Household names such as Hitachi and Nissan

said they might even pull investment out of the UK. Lawyers Simon Black

implies is Japanese businesses. They asked him what he is telling his

clients today. The first think we are telling them is to try to

clarify some of the uncertainties, particularly on process of the

withdrawal and the timing of Article 50 and try to give some insight into

what the likely negotiating position of the British government is because

that then sets the scene for businesses to do, in some degree,

planning. It is very uncertain. But the timing and negotiating position.

Are they still threatening to pull out of or are they reckoning to stay

put until the situation is clearer. I think the threat of pullout

remains. But businesses look at these over the long-term. They

really want to assess the impact of Brexit. They were so many

uncertainties. I don't think anyone is pulling out of and major

investments have been made. Indeed, that is a sign of confidence. But

these companies all sectors or industries that are threatening to

pull out, which one of these. I think the banks have the biggest

challenge. Those Japanese banks that have UK subsidiaries, they can do

financial services businesses throughout the EU. That is at risk.

The banks need to make contingency plans. For banks to reorganise, it

is a major undertaking and takes more than two years. In addition,

the banks understand that some businesses may flow out of London.

Simon Black there in Tokyo. Getting on the property ladder can be

tougher homebuyers the world over that in Australia, the property

dream is slipping away for many. It is the world 's third least

affordable place to buy and with most people preferring to live in

the capital cities, prices there have risen by more than one third

over the past five years. Charities are now offering buyers financial

help to purchase their first home. Phil Mercer reports from Sydney.

1.375. Selling houses in Australia is often great better. It is here

the dreams of property ownership are made but at a cost. The price the

rundown 4-bedroom home in a leafy suburb, more than $1.3 million.

Competition for this property that lies about a half-hour drive from

the centre of Sydney has been intense. House prices in Australia's

most expensive city have soared by almost 60% in the past five years.

Many prospective buyers fear being priced out of the market. Much of

Australia's growing population hugs the east coast where space and the

major centres is often scarce. As prices in Sydney continue to rise,

the coalition of charities wants to go into partnership with first time

buyers. Buyers who otherwise would be locked out of the market. You

take out a mortgage to your share in a community housing provider will

pay the rest of the mortgage on that property. At some point, if your

income goes up, you can actually, what we say, is staircase up, by

another slice of that property as well. With the young family to

support, Paul Robinson, whose salaries above the national average,

says a shared ownership scheme is his only chance of buying a home in

Sydney. It is where he has seen prices spiral. Out of control,

astronomical. A difficult market to get into pull someone like me. I

earn a decent wage of about $85,000 but to support my family, pay my

rent and get a 10% deposit, it's just an impossibility. It is the old

Australian dream of owning a home, it's not a reality any more. There

are many reasons why house prices are soaring. Among them, record low

interest rates, tax breaks for investors foreign buyers. As another

inspect -- expensive property goes under the hammer, for those

unsuccessful bidders, the Hunter their dream home continues. Phil

Mercer, BBC News, Sydney. Earlier, we brought you the challenges facing

Macau's casinos but what about the threat of online gaming. It is a $46

billion industry. We caught up with a full-time gambler to hear his

story. I have never had a proper job. I'm technically unemployed. But

me and my friends all play online poker for a living. It takes a lot

of work to get good enough to make any money, let enough -- let alone

up to support yourself. A mathematical brain and self

discipline and control do not get too upset. A typical day would

involve me starting playing about 8pm 9pm and finishing at 2am or 3am,

depending on the game. The best times to work our Friday night,

Saturday nights and evenings and weekends, essentially. Now there are

all sorts of software tools to help people get better, including

artificial intelligence, which people are using to create new

strategies. A lot of challenges ahead for human players and I don't

think I will still be playing poker in pre-5 years. Before we go, a

quick look at the markets. Asia is drifting sideways in early Tuesday

trading up to US equities closed lacklustre overnight.

Those are the markets. Thank you for investing your time at us. Have a

great Tuesday. Sport Today is up next. Goodbye for now.