17/04/2017 Asia Business Report

China unveils its latest economic growth numbers in just over an hour

a strong performance is predicted. And we find out why Cadbury has lost

taste for chocolate making in New Zealand.

Good morning. Glad you could join us for this Monday edition of Asia

Business Report. I'm Rico Hizon. We are counting down to new data from

China which will reveal how much of its economy grew in the first three

months of this year. And there are positive signs with the rebound in

exports, a rise in government spending on infrastructure and

housing prices continuing to soar. Many believe today's numbers could

come in comfortable it higher than the government's estimate for the

year at 6.5%. China is still motoring. Do received

wisdom for growth in its economy, GDP at the beginning of 2017, is it

will come in at around 6.8%. This is the main reason for that continued

buoyancy. Construction. In particular, government funded

infrastructure projects. There is a new entrance to Shanghai's Metro

system here. There is also private money here doing offices and retail.

All of this continues to create jobs, it continues to create demand

for steel, the things go in to steal like iron ore and that's why we

continue to see this buoyancy, this continued growth in the economy. The

rate of that growth is slowing. 6.8% is far away from the growth its

economy was experiencing years and years ago. Overall, it remains

positive. The government is looking at 6.5% for all of 2017 so these

figures could be slightly above that target. This look at some other

statistics. On the retail side, there will be a new development here

of high end stuff. Retail growth remained in the high and singledigit

but it has slowed to a slower street in two years and that may be a

concern. And experts remain high. -- imports and exports. A return to a

trade service to this country as well. The overall project here in

China remains to try to refocus the economy away from being led, driven,

by public money, infrastructure projects and depending on exports

and being more focused on the Chinese consumer, what Chinese

people are spending. That is a long way off. These figures, if they do

come in at 6.8%, suggests it is still public money infrastructure

projects that continue to drive the growth. Slowing growth but

nonetheless growth in China's economy.

Those mainland numbers are out in less than that 90 minutes time.

Let's look at what else is coming up over the next few days. US Vice

President Mike Pence is attending South Korea, Japan and Australia. He

is due to make -- top of the agenda will be North Korea's missile

programme. Moving onto the corporate calendar. Netflix will be kicking

off the season. We expected earnings to rise 400% per share. On Friday,

the IMF will be giving a briefing on the economic prospects for the

region. Earlier, I spoke to Amy from the bank. She is explaining why she

is in the camp of 6.8%. Usually the housing market has a

lagging effect on the economy. That means especially at the end of last

year construction rose and a service boomed. It is continually having a

positive effect on the economy through the manufacturing and

service sector. One could this be the Achilles heel of the Chinese

economy in the second half of the year because of --a lot of people

are predicting a bubble due to rising prices. The government is

aware of this risk and that is why they have been slowly tightening.

Cooling down on the housing market. Liam Broady scene is when new

construction starts are slowing down. -- we have already seen that.

Is that say that they won't be a property bubble because the property

market continues to grow at twice of the underlying economy. You could

argue whether we already have a property bubble. If you look at

prices competitive come compared to rent. We already have huge bubble.

It is just a matter of time whether this will become bigger and right

now, the government is tragedy fleck that bubble. That will have a

cooling effect later this year. But would it also helped the Chinese

economy going forward? If US softens its stance towards China? Recently

doing a U-turn on claims it will not branded a currency manipulator and

you also have the US Vice President visiting Asia but not China. Is

there something we are not seeing here? I'm saying is not surprising

that p has put China on its agenda. So soon after Trump and Xi Jinping's

face off. They look at some close ties towards other Asian natures.

But China, a close partner in terms of the US in terms of trade policies

and the economic agenda and the rising geopolitical tensions with

North Korea. In other business news, making

headlines. Telecommunications giant ZTE is to post a modest earnings.

Its numbers come just after the US lifted a trade ban on the company.

The Chinese handset maker is the only firm from the mainland which

has managed to crack the US market, standing at the fourth largest

behind South Korea's LG. $40 million in pay and bonuses was paid last

year which is said to be more than the highest salaries at Apple or

IBM. It has been boosted by online games and advertising. There has

been an nationwide a clash in New Zealand against the decision by

chocolate giant Cadbury to move its operations to Australia next year.

The company's American owner says it is not profitable enough to keep the

factory in the country and the hundreds of jobs are to go. The

local rival is enjoying huge success operating in New Zealand and is

expanding globally. The world-famous jaffa race brings

out the cheering crowds in their thousands as Cadbury chocolate balls

made just down the road rolled down the world's steepest street. But now

crowds are protesting against Cadbury which has made chocolate

here since 1930 and become a part of the community's identity. I think

it's disgusting because we are making a profit here will stop I

mean, it's not like we are not. We just work hard. Despite turning a

profit, the company that owns -- Cadbury says the factory isn't

sustainable and more than 360 workers will lose jobs. A major blow

for a provincial centre. It's about time our multinationals begin

looking after people who have been looking at them to the last 100

years. Contractors, tourism. There are reports of keeping the world

open but it's a bit silly having it opened without the cab roof to

decide it. It has over 100,000 visitors per year. It was to

redevelop the tourist attraction. For many, it isn't enough. A

national campaign has been started to Boy boycott Cadbury products.

Here, just north of Wellington, Whitakers is proving otherwise. It's

me making chocolate for more than 120 years and has become one of the

country's success stories. We have shown that we are growing. Big

multinationals often have strategic views in certain areas and I think

we are just solely focused on quality of product. The family run

business has been growing using innovative flavours and slick

marketing. Now, it is taking a careful approach into the Middle

East, Canada and Asia. We don't try to spread ourselves too thinly. We

just need to focus on particular areas. When you look at China, in

particular, the change in demographic is the biggest

opportunity on our horizon. With its main competitors production now

leaving New Zealand, the prospect of the southern chocolate here are

mouthwatering. -- Chocolatier. Asian stocks are currently under

pressure in early Monday trading as rising tensions in the Korean

peninsula. Tokyo stocks are down by about 68%. It is tending four days

of losses as the yen remains strong on geopolitical risks. As the Wall

Street, it was closed on Friday due to the Easter holidays and will

start the new trading week with the Dow and the NASDAQ in negative

territory. Thank you so much for investing your time with us. Sport

Today is coming up next. One of the biggest teachers' unions

says children with special needs, aren't getting the support

they're entitled to,