:00:00. > :00:00.National Insurance contributions - a week after announcing the policy
:00:00. > :00:24.two interest-rate hikes in three months. The Central Bank of the US
:00:25. > :00:31.increases rates again. We look at the Asian impact. And some parents
:00:32. > :00:37.are paying pretty penny for their child's cream of being a beauty
:00:38. > :00:43.pageant queen. -- dream. Good morning, Asia. A low, world.
:00:44. > :00:49.Thursday, Asia Business Report. I'm Rico Hizon. We start off with
:00:50. > :00:55.America's Central Bank and the Federal Reserve has raised the cost
:00:56. > :01:00.of borrowing by 0.25%, the second in three months and it is a
:01:01. > :01:04.confirmation that the Fed is a fairly upbeat view of the economy.
:01:05. > :01:10.Here is what Janet Yellen had to say. We are closing in on our
:01:11. > :01:14.employment objective, coming closer with the inflation objective and as
:01:15. > :01:20.we read those objectives, particularly in light of the fact
:01:21. > :01:24.that we see the risks of the outlook is roughly balanced at this point.
:01:25. > :01:30.That has been our assessment that the last several meetings. It looks
:01:31. > :01:36.to us to be appropriate to gradually raise the Federal funds rate back to
:01:37. > :01:43.the direction of neutral. That rate hike pumping up US stocks overnight,
:01:44. > :01:48.the Dow gaining 112 points on the NASDAQ higher by 43. What kind of
:01:49. > :01:58.impact on Asian financial markets? We're joined now by our very own a
:01:59. > :02:03.submission is correspondence. -- our very own business correspondence.
:02:04. > :02:08.How is this impact in the markets? The immediate impact we have seen
:02:09. > :02:13.both from the US rate rise overnight and Hong Kong's subsequently is that
:02:14. > :02:19.shares in Hong Kong are up. I think the explanation is the US, even
:02:20. > :02:24.though it raised interest rates last night, it signalled it will not
:02:25. > :02:29.raise them as quickly as many in the market had anticipated. Gradual rate
:02:30. > :02:34.rises. Something investors in Asia are taking a sense of relief from
:02:35. > :02:37.because they can be prepared and that is the key phrase for the day,
:02:38. > :02:41.being prepared and this is something that will happen gradually, based on
:02:42. > :02:47.how the US economy is going to do over the next couple of years. This
:02:48. > :02:52.rate rises having various effects on regional markets. Japan is down,
:02:53. > :02:57.Australia is up because of higher oil prices. Apart from Hong Kong,
:02:58. > :03:04.which other central banks could follow the same trend as the Fed?
:03:05. > :03:08.Hong Kong follows what the Fed does because the Hong Kong dollar is
:03:09. > :03:12.pegged to the US dollar but if you look at the major meetings that are
:03:13. > :03:16.taking place today, you have a decision due from Indonesia's
:03:17. > :03:22.Central Bank and the Bank of Japan making a decision. I don't expect
:03:23. > :03:26.either of them to come out with any of -- any sort of dramatic shift in
:03:27. > :03:32.policy because even though we have seen the Fed raise rates people will
:03:33. > :03:37.take a wait-and-see attitude to this sort of thing. Will they raise rates
:03:38. > :03:44.in June? Not entirely clear. The other thing is that the reason that
:03:45. > :03:49.the Nikkei has fallen, the Japanese yen has strengthened which is bad
:03:50. > :03:55.for Japanese exporters. What about the impact on China? It's been
:03:56. > :04:03.slowing down and of course, their currencies. China is the big
:04:04. > :04:07.standout, the?. It is in a tricky position because the yuan has been
:04:08. > :04:11.weakening and when money flows out of Asia, because interest rates in
:04:12. > :04:15.the US -- the US are getting higher and yielding more returns for
:04:16. > :04:23.investors, that puts pressure on a sink currencies including the yuan.
:04:24. > :04:27.-- Asian currencies. The central Chinese bank is stuck in a difficult
:04:28. > :04:31.position, will they boost rates to strengthen the yuan or do they do
:04:32. > :04:37.nothing? That is the key question going forward. Thank you very much
:04:38. > :04:40.for your insight, Karishma Vaswani, our Asia business correspondence.
:04:41. > :04:45.Now to US President Donald Trump who was in Detroit, known as the
:04:46. > :04:49.automobile capital of America. He was talking about jobs in the auto
:04:50. > :04:54.industry and met up with executives and union officials but what is
:04:55. > :04:58.getting a lot of attention is the presidential order to review fuel
:04:59. > :05:06.efficiency standards put in place by the previous administration.
:05:07. > :05:13.Another campaign style event for a president who has been in office
:05:14. > :05:17.almost two months. This is the first time Mr Trump has come to Detroit
:05:18. > :05:21.since his election win. Now he's back to deliver on some of his
:05:22. > :05:28.promises. My administration will work tirelessly to get rid of the
:05:29. > :05:32.industry killing regulations, lower job crushing taxes and ensure a
:05:33. > :05:39.level playing field for all American companies and workers. For motor
:05:40. > :05:44.city, that means addressing fuel efficiency standards, originally put
:05:45. > :05:47.in place by the Obama Administration, American car
:05:48. > :05:51.manufacturers were being forced to make an entire fleet of cars that
:05:52. > :05:55.make these lower emissions requirements. President Trump has
:05:56. > :05:59.promised to review these rules. We are going to ensure that any
:06:00. > :06:05.regulations we have protect and defend your jobs, your factories. We
:06:06. > :06:10.are going to be fair. But it's hard to see how these particular
:06:11. > :06:12.regulations have hurt America's auto industry which has been renting in
:06:13. > :06:17.high gear with record sales for the high gear with record sales for the
:06:18. > :06:20.last two years. When you look at the record sales they have and the
:06:21. > :06:24.record profits they have in the fact that you already have cars on the
:06:25. > :06:30.road now that meet these 2025 standards, I think the industry has
:06:31. > :06:35.shown it can meet and improve the standards. The industry has shown it
:06:36. > :06:39.can innovate and make the kind of targets that are laid out in the
:06:40. > :06:43.current rules. President Trump is trying to show that he can bring
:06:44. > :06:49.jobs back to America by cutting some of the costs of doing business but
:06:50. > :06:51.on Wednesday, he was short on specifics, stating only that those
:06:52. > :07:00.regulations were up for review. The business of beauty pageants in
:07:01. > :07:05.Asia might not be as jawdropping moneywise it is the -- as it is in
:07:06. > :07:10.North America but it's still a business and one that costs families
:07:11. > :07:13.money. For the latest in our series, we meet a tiny international
:07:14. > :07:15.competitor and a former child star who share with is how pageants
:07:16. > :07:47.shaped them. I have to do a lot of research and
:07:48. > :07:55.they say, talent, and I have to find a talent the port to perform,
:07:56. > :07:58.costume and everything. -- for her to perform. I will get a
:07:59. > :08:04.professional before the time so one month before, I will get a
:08:05. > :08:12.professional catwalk to train her fall once a week. Other than
:08:13. > :08:17.costume, we always order from the US who specialise in pageant costume.
:08:18. > :08:24.This is my favourite dress. It's pink and there are buckles on it.
:08:25. > :08:26.And look at this. It's so cool. When you move anywhere, it will follow
:08:27. > :08:51.you. That is why I like this. When I went to compete in the
:08:52. > :09:00.States, a lot of the diamonds, the crowns, the sashes, all the
:09:01. > :09:10.beautiful dresses, came from the US. I wish nothing but the best for
:09:11. > :09:15.you... There are people monitoring what you are saying to people. There
:09:16. > :09:24.are people telling you what to do it each time you go on stage, where you
:09:25. > :09:31.walk. Eventually, he became kids to justice and to instructions. Which
:09:32. > :09:37.girl doesn't want to be a princess? I'm not sure how much I spend.
:09:38. > :09:48.Whatever she wants, to do something and it's a benefit to her and me,
:09:49. > :09:53.why not? It's an investment. The business of kids beauty pageants.
:09:54. > :10:01.Now let's have a look at the markets. As you can see on your
:10:02. > :10:05.screens, currently a mixed bag with the Nikkei down and that is because
:10:06. > :10:08.of the strength of the Japanese yen against the US dollar which is
:10:09. > :10:13.having an impact on exporters. The Hang Seng Index gaining a hefty 309
:10:14. > :10:22.points after the de facto Central Bank of Hong Kong raised the cost of
:10:23. > :10:28.borrowing in tandem with the US Fed. Rising oil prices helping the All
:10:29. > :10:33.Ordinaries Index -- index. Thank you so much for investing your time with
:10:34. > :10:35.us. Have a wonderful birthday, I am Rico Hizon, thank you for joining
:10:36. > :10:43.us. The Dutch Prime Minister Mark Rutte
:10:44. > :10:44.has claimed victory in prime ministerial