:00:00. > :00:15.Now on BBC News all the latest business news live from Singapore.
:00:16. > :00:21.More foreign money pours into mainland China, but less is flowing
:00:22. > :00:25.out. We find out why. And digging up of diversity. The Philippines a
:00:26. > :00:34.posture the Environment Secretary defends her decision to shut down
:00:35. > :00:40.mines. -- Philippines' Environment Secretary. Glad you could join us
:00:41. > :00:40.for this midweek edition of Asia Business Report.
:00:41. > :00:49.New figures reveal investors are putting more money into China but
:00:50. > :00:55.China's investments overseas are falling. More than $7 billion US has
:00:56. > :01:03.been invested in a mainland so far this year, nearly double the same
:01:04. > :01:16.period in 2015. Outbound deals have dropped 40%. Managing -- I asked how
:01:17. > :01:20.long it could continue. The projection is that the currency
:01:21. > :01:28.outflow issues will last for the first half of 2017 and there will be
:01:29. > :01:34.a pickup going forward after the outflow issues have been curtailed a
:01:35. > :01:37.bit. Certainly it is in China's interest not to clamp down to
:01:38. > :01:43.tightly on all of the outbound investments of the market players.
:01:44. > :01:48.It is speculated that later in the year there will be a pickup on
:01:49. > :01:51.outbound investment and a lot of the restrictions may be eased. But on
:01:52. > :01:55.the flipside we are seeing more deals into China. Which sectors and
:01:56. > :02:03.industries have been making a big push into the mainland? To start
:02:04. > :02:08.with, I think there is both a short and long-term response to your
:02:09. > :02:15.question. The longer term response is because there is a growing middle
:02:16. > :02:20.class and because the population is ageing, the sectors are related to
:02:21. > :02:23.consumer staples, fast moving consumer goods, retail,
:02:24. > :02:29.entertainment, leisure, recreational options for the new wealth that's
:02:30. > :02:33.being created in a middle-class. From a democratic perspective
:02:34. > :02:39.because of the ageing population there is a greater need for
:02:40. > :02:44.healthcare. Pharmaceuticals, health foods. And on the care side for
:02:45. > :02:48.seniors, since there's fewer extended family to care for seniors,
:02:49. > :02:54.the fact that senior care facilities and housing would be a sort after
:02:55. > :03:02.thing as well. For foreign investors in the past we have been told horror
:03:03. > :03:08.stories about investing in China. Are we now seeing a more level
:03:09. > :03:12.playing field? Two responses. Firstly, the regulations that came
:03:13. > :03:18.out at the end of 2016 have opened up more of the economy. More sectors
:03:19. > :03:21.of the economy. The negative list is shorter, so there are more
:03:22. > :03:24.opportunities to invest, as well as streamlining the process for
:03:25. > :03:28.investing in China by foreign investors. The second issue is risk
:03:29. > :03:33.management. Foreign investors tend to be better at managing the risks,
:03:34. > :03:39.of doing business in China over time. They compare China with other
:03:40. > :03:46.emerging market risks and it is something they can manage. The
:03:47. > :03:52.Indian government is pushing back against US President Donald Trump's
:03:53. > :03:56.protectionist talks on jobs. Narendra Modi wants the US to have a
:03:57. > :04:01.balanced and long-term view on issue of skilled workers. Lawmakers have
:04:02. > :04:05.been visiting India, as well as the Microsoft boss, who has met the
:04:06. > :04:11.information technology minister. He says the US should recognise the
:04:12. > :04:16.contribution Indian companies make to its technology industry. They are
:04:17. > :04:22.creating value, they are creating employment. They are creating
:04:23. > :04:36.potential. A large number of American companies are -- are
:04:37. > :04:42.benefiting with jobs. That needs to be recognised. In Hong Kong, there
:04:43. > :04:46.is a potential trade war between China and the US and a drop in
:04:47. > :04:50.tourism is hitting the economy. We will find out how bad the impact
:04:51. > :04:55.this when Hong Kong unveils its growth begins later today. A sharp
:04:56. > :05:02.slowdown last year is expected and the forecast this year isn't much
:05:03. > :05:06.better. What can Hong Kong do about it? Don't forget, when we look at
:05:07. > :05:10.the previous years of retail sales in Hong Kong it was very much driven
:05:11. > :05:16.by mainland tourists. And the spender. So we are coming off a high
:05:17. > :05:19.based probably more normalised rate. At the same time the domestic
:05:20. > :05:24.spender wasn't really spending and there was lacklustre in that sense.
:05:25. > :05:27.One of the main reasons why mainland tourists aren't coming to Hong Kong
:05:28. > :05:32.any more if they have more options. That's true. Everyone is going to
:05:33. > :05:36.Japan, Korea, there are other tourism destinations in the region.
:05:37. > :05:39.And even the once vibrant financial sector has been plagued with layoffs
:05:40. > :05:45.and dwindling stock-market turnover. It is a very interesting situation
:05:46. > :05:48.from a stock market perspective. We are seeing a revival in sentiment in
:05:49. > :05:54.certain shares, coming from the southbound trade programme, that
:05:55. > :05:57.means mainland money coming through. But don't underestimate the odd
:05:58. > :06:04.venereal spirit of Hong Kong. You will always bounce back! Yes. What
:06:05. > :06:08.about global protectionism? At the biggest fear of investors in 2017
:06:09. > :06:13.and going forward during this term of President Donald Trump. How much
:06:14. > :06:17.would Hong Kong suffer if a trade war between America and China? It
:06:18. > :06:25.suffer because don't forget Hong Kong's ports are conned at for many
:06:26. > :06:34.products. It is a real risk for market as global trade, the
:06:35. > :06:39.environment is a -- so fragile. For the first time in 15 years growth in
:06:40. > :06:46.trade was lower than GDP growth. In other business news, Yahoo has
:06:47. > :06:49.agreed to cut $350 million off its original asking price in the sale of
:06:50. > :06:58.its internet business to telecoms giant Horizon. This comes after two
:06:59. > :07:04.huge cyber attacks, ending -- attacks. The world's largest
:07:05. > :07:09.retailer has been a boost in sales. Walmart reporting profits of 1.8%
:07:10. > :07:13.higher than investors expected. An increase in online sales and higher
:07:14. > :07:16.traffic helping to lift profits, leading to a 10th straight quarter
:07:17. > :07:21.of comparable sales growth. World's it is the mining company swung back
:07:22. > :07:26.into profit in the first half. Net profits are coming in at more than
:07:27. > :07:29.$3.2 billion in the six months until December and that's an eightfold
:07:30. > :07:32.increase compared to the same period one year ago. The rebound in
:07:33. > :07:37.commodity prices boosted business confidence. BHP gave shareholders a
:07:38. > :07:42.bigger than expected dividend of 40 cents per share.
:07:43. > :07:46.Mining companies in the Philippines face different prospects.
:07:47. > :07:51.Philippines' Environment Secretary is stepping up a campaign to shut
:07:52. > :07:55.downsides that she says are causing damage. Gina Lopez has 75 mining
:07:56. > :08:01.contracts in sensitive coastal areas. This report on the impact on
:08:02. > :08:07.?1. -- on town.
:08:08. > :08:14.The city of Santa Cruz is 260 kilometres north of the capital,
:08:15. > :08:17.Manila, and is home to four mines closed down by the Environment
:08:18. > :08:21.Minister Gina Lopez. One of the largest mining firms suspended its
:08:22. > :08:25.operations last July, while the government conducted a month's law
:08:26. > :08:32.mining audit. The company's corporate manager says it has cut
:08:33. > :08:38.1150 jobs. TRANSLATION: As of this moment we don't have any operations
:08:39. > :08:41.and everyone is sad and looking for jobs elsewhere.
:08:42. > :08:44.Gina Lopez says the mines ordered closed have caused environmental
:08:45. > :08:52.damage along the coastline. There should be no mining in these areas
:08:53. > :08:57.because it will affect the quality of life there. She has promised aid
:08:58. > :09:01.for communities affected, saying eco- tourism, farming and forestry
:09:02. > :09:05.could offset the loss of the mines. What critics say Gina Lopez's
:09:06. > :09:09.decision will ruin the livelihoods of over 1 million people will wipe
:09:10. > :09:13.out jobs. The local union leader says he doubts of Santa Cruz could
:09:14. > :09:16.be transformed into a tourist destination that could compete with
:09:17. > :09:21.other popular islands in the Philippines. TRANSLATION: She is
:09:22. > :09:25.saying she can give jobs to those places that can be potential tourist
:09:26. > :09:31.spots. Yes, I believe she can do that. But how about our town here in
:09:32. > :09:34.Santa Cruz? We can't offer anything. Our islands here are too
:09:35. > :09:41.underdeveloped to become a tourist destination. However, Gina Lopez has
:09:42. > :09:43.the support of local environmentalists, who play mining
:09:44. > :09:48.activities for clogging and contaminating waterways and causing
:09:49. > :09:51.landslides. TRANSLATION: The dangers outweigh the benefits it can give.
:09:52. > :09:55.We are still hoping to live until the next generation. We have
:09:56. > :09:59.children and grandchildren who depend on the environment. Now, if
:10:00. > :10:05.our environment is destroyed, how will they live on? The Philippines
:10:06. > :10:08.has been the world's top supplier of nickel ore since 2014, when
:10:09. > :10:14.Indonesia banned exports of unprocessed minerals.
:10:15. > :10:18.In the markets, Asia is inching higher in early trade after fresh
:10:19. > :10:22.record highs on Wall Street. That was due to news on eurozone activity
:10:23. > :10:26.accelerating to a six-year high and the dollar gained against was the
:10:27. > :10:29.Japan, Hong Kong and Australia in positive territory. As for your
:10:30. > :10:30.time. Sport Today is coming