03/04/2017

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:00:00. > :00:00.And a stop story in the UK, -- top story. Theresa May says the UK is

:00:00. > :00:17.steadfastly committed to the city of triple toe. -- Gibraltar.

:00:18. > :00:22.Chinese President Xi Jinping heads to the US. We preview his meeting

:00:23. > :00:29.with Donald Trump and other key market events of this week. And

:00:30. > :00:31.bubble, toil and trouble. Is Beijing becoming too expensive for its

:00:32. > :00:44.residents to buy a home? Welcome to Asia Business Report live

:00:45. > :00:50.from Singapore with me, Mariko Oi. We have a packed show and week ahead

:00:51. > :00:53.of us. Line and ministers and central bank governors from the

:00:54. > :00:59.Association of Southeast Asian Nations art meeting in the

:01:00. > :01:03.Philippines. On Tuesday, we have surely a's central bank expected to

:01:04. > :01:08.meet and probably keep borrowing costs on hold and then on Thursday

:01:09. > :01:13.and Friday, Chinese President Xi Jinping meets US President Donald

:01:14. > :01:18.Trump in Florida. Earlier, I spoke with the chief investment officer

:01:19. > :01:22.with the bank of Singapore. I started by asking what we can expect

:01:23. > :01:27.from the Mac you to meeting. I don't think we are expecting too much. --

:01:28. > :01:33.ASEAN. Lots of things might get discussed. Some statement in support

:01:34. > :01:37.of global free trade that not much more than that. And I can't have

:01:38. > :01:42.broke the news only that the Reserve Bank on Australia meeting on Tuesday

:01:43. > :01:45.but not expecting to do anything either? The bank of Australia has

:01:46. > :01:49.been discounted as doing very little for quite sometime. I think the

:01:50. > :01:53.fundamentals are moving their way slowly but I think they will be

:01:54. > :01:57.patient through the rest of the year, possibly. And the most

:01:58. > :02:02.interesting agenda for many this week will be the meeting between the

:02:03. > :02:07.Chinese and US presidents. What are we expecting? We sought Donald

:02:08. > :02:12.Trump's leading to executive orders on Friday kind of targeting China

:02:13. > :02:17.even though he says he is not. Are we expecting some kind of frictions

:02:18. > :02:23.or are we expecting a deal? I think it is too early for a deal. I think

:02:24. > :02:26.Mr Trump has made various promises. He has certainly lost out on

:02:27. > :02:31.healthcare so getting tough on China is probably in line with his

:02:32. > :02:36.thinking. There is some risk that it gets verily robust between him and

:02:37. > :02:44.China -- fairly. Certainly a initially. Maybe push for a deal a

:02:45. > :02:48.little bit later. Certainly, it might be on the all arming side. And

:02:49. > :02:54.when the Japanese Prime Minister West they are, the two leaders

:02:55. > :03:00.played golf but this time we are not expecting that? Certainly not but

:03:01. > :03:05.lots of talk. There has been talk of conflict of interest. China has been

:03:06. > :03:11.a guess working favourably to the Trump organisation. If that likely

:03:12. > :03:15.to have any kind of impact? There has certainly been an effort by the

:03:16. > :03:23.Chinese to position themselves into the vacuum but they believe Mr John

:03:24. > :03:31.to live in, certainly in their Asian region. -- Mr Trump. That is the

:03:32. > :03:38.risk he is running. It is a risk to his policy to give the ground to

:03:39. > :03:48.China. It is not our view. The Chinese are probably going to be in

:03:49. > :03:53.a position to get in there. At a -- at the same time, we expecting it Mr

:03:54. > :03:59.Trump to be tough. It will be a tricky end to the week. Mix that in

:04:00. > :04:04.with the numbers on Friday, an interesting week for markets. All of

:04:05. > :04:11.this week, we are looking at the property show in this region. We

:04:12. > :04:18.experiencing a boom, bust or a bubble? Today we start in China

:04:19. > :04:41.warehousing has become somewhat unaffordable. -- where jhousing.

:04:42. > :04:47.It is start of the evening rush-hour in Beijing. These young people are

:04:48. > :04:50.pouring out of the towers above and into the subway below. In their

:04:51. > :04:54.millions, they will join the commute to the outer suburbs. There is no

:04:55. > :04:59.way that most young people here could afford to buy a flat downtown.

:05:00. > :05:03.In fact, it's hard to imagine how most of them could ever afford to

:05:04. > :05:27.buy a property anywhere in this city.

:05:28. > :05:34.It is true, there are plenty of cities in the world where property

:05:35. > :05:38.is expensive. Sydney, Paris, Singapore, it you name it. Here, the

:05:39. > :05:40.flats might cost just as much about people's salaries could be half or

:05:41. > :06:55.even less. So, who is buying property here? The

:06:56. > :07:00.government is trying to rein in this explosion by limiting access to

:07:01. > :07:02.credit in the hope that China's young workers may one day be able to

:07:03. > :07:18.buy a place of their own. In other business news making

:07:19. > :07:22.headlines, Toshiba is down by more than 7% at this hour on reports that

:07:23. > :07:27.it may miss its earnings yet again. It is now expected it shares will be

:07:28. > :07:31.demoted to the second section of the Tokyo's stock exchange in August.

:07:32. > :07:35.Staying with Japan, business confidence has improved and amongst

:07:36. > :07:41.its big manufacturers, according to the bank of Japan's closely watched

:07:42. > :07:44.survey. The headline index for many manufacturers sentiment stood at

:07:45. > :07:51.plus 12 in March compared with plus ten in the previous survey. Japan

:07:52. > :07:55.has a officially recognised digital currency bit coin as a formal method

:07:56. > :08:03.of payment but there are strict rules. Companies need permission to

:08:04. > :08:12.use a bit coin and must have at least $100,000 in backup cash.

:08:13. > :08:18.Earlier I spoke to Toby from ten X. I asked him how significant the move

:08:19. > :08:25.is. Quite significant. Japan is one of the biggest retail of ex-

:08:26. > :08:33.markets. It allows big players for example GM oh which is the biggest

:08:34. > :08:40.broker to come into this market. I would say for 2017, bitcoin at

:08:41. > :08:45.option is interesting to watch. Will it be popular especially since it

:08:46. > :08:49.would be quite expensive? Because of the new regulation, there are

:08:50. > :08:53.stricter regulatory requirements. As well as it requires companies to

:08:54. > :08:58.apply for licences. That however has not stopped companies to enter this

:08:59. > :09:05.market. What about the reputation issue because of the collapse of a

:09:06. > :09:11.company making a huge news headlines. As it recovered? It

:09:12. > :09:17.collapsed in 2014. It has at this time left a lot of mistrust and

:09:18. > :09:20.uncertainty in relation to bitcoin. Because of big institutions entering

:09:21. > :09:26.the market with strategic investments or announcements of

:09:27. > :09:30.going really into it, I think we now have a market in combination with

:09:31. > :09:34.the regulation that allows for a lot more safety for the end consumer to

:09:35. > :09:39.trade as well is use bitcoin as a means of payment. I guess the big

:09:40. > :09:44.question among players is whether it will be subject to consumption tax.

:09:45. > :09:47.What is your view on that? The new regulation allows for buying and

:09:48. > :09:52.selling of bitcoin to be strictly can set -- exempt of consumption

:09:53. > :09:57.tax. That said, games or profits from trading are still liable to

:09:58. > :10:01.capital gains tax. And briefly, to expect any other countries to

:10:02. > :10:04.follow? That is an interesting point. I guess if we see this

:10:05. > :10:07.current trend of really profitable industry growing further in Japan

:10:08. > :10:14.then other countries will follow suit. That show you the markets

:10:15. > :10:17.before we go. It is the first day of the second quarter but not too

:10:18. > :10:27.exciting. The Nikkei is up by just 1.0%. --0 .1%. In the US, Wall

:10:28. > :10:31.Street ended the first quarter in the red. That is it for this version

:10:32. > :10:43.of Asia Business Report. Thank you for watching.

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