:00:10. > :00:14.North Korea has fired what appears to be a ballistic
:00:15. > :00:18.The missile, which some reports say was a short-range Scud missile,
:00:19. > :00:20.was tracked for six minutes by the US, before
:00:21. > :00:25.2,000 civilians are reported to be trapped by fighting
:00:26. > :00:28.Government forces are trying to retake it from insurgents
:00:29. > :00:31.who have pledged allegiance to the Islamic State.
:00:32. > :00:35.And this video is trending on BBC.com.
:00:36. > :00:37.Russia has entered the highly competitive air travel market
:00:38. > :00:39.by launching its first mainline commercial aircraft
:00:40. > :00:45.The MS-21 has just completed its maiden flight.
:00:46. > :00:48.It will be going head-to-head with the popular Boeing
:00:49. > :01:14.Official sources have confirmed that an inquiry is to investigate how
:01:15. > :01:16.the security services dealt with warnings from the public
:01:17. > :01:18.that the Manchester suicide bomber, Salman Abedi,
:01:19. > :01:42.This week we get a health check on China's engine of economic growth,
:01:43. > :01:46.its manufacturing sector. An Sri Lanka's government is facing
:01:47. > :01:58.criticism for the sale of valuable infrastructure projects to China.
:01:59. > :02:02.Welcome to Asia business report. From high-tech gadgets do economic
:02:03. > :02:07.data to defence. They are all on the agenda for investors in Asia this
:02:08. > :02:11.week. Tomorrow Asia's biggest technology fair opens in Taiwan. And
:02:12. > :02:17.the state of the Chinese economy has been in the news recently with Moody
:02:18. > :02:20.'s downgrading the debt rating, and on Wednesday we get another peek
:02:21. > :02:26.into the key manufacturing sector with release of the official
:02:27. > :02:32.purchases index. And on Friday, top defence chiefs from the region will
:02:33. > :02:39.converge in Singapore at a major annual defence caught. Early I spoke
:02:40. > :02:45.and asked what we could expect from the Computex conference? I think we
:02:46. > :02:50.will be watching keenly to see what demand is like, articulately coming
:02:51. > :02:53.through from some of the big corporate is across Asia because
:02:54. > :03:01.there is some concern in this sector as to whether that desire for the
:03:02. > :03:05.corporate is to constantly renew their hardware is still to the fore.
:03:06. > :03:11.I think if you are looking at surveys that have been done of late
:03:12. > :03:18.across the OECD there is a typically a desire on the part of purchasing
:03:19. > :03:22.managers do not upgrade or not roll over their infrastructure as quickly
:03:23. > :03:27.as they have done in the past, so I think this could be a trend we need
:03:28. > :03:31.to watch out for. Speaking of purchasing managers we have the
:03:32. > :03:36.Chinese purchasing managers index due later this week and last week
:03:37. > :03:42.was the first time we saw Moody 's downgrading the country's credit
:03:43. > :03:45.rating since 1989. China's Finance Ministry said Moody 's was
:03:46. > :03:51.exaggerating the economic difficulties. Do you think they
:03:52. > :03:56.work? You might expect them to say that the China is on holiday along
:03:57. > :04:02.with the US and the UK and with the debt to GDP and China of 300%, I
:04:03. > :04:05.think it is not particularly surprising, but maybe in the sense
:04:06. > :04:11.that it's taken so long for this downgrade to come and it was all so
:04:12. > :04:16.interesting that Hong Kong was caught up in the mix with its rating
:04:17. > :04:23.downgraded but will it outlook raised to neutral from negative,
:04:24. > :04:28.much to the chagrin of politicians in Hong Kong, so not unexpected and
:04:29. > :04:35.driven clearly by the debt levels across the economy particularly with
:04:36. > :04:41.state-owned enterprises. The reading will be the slowest growth seen in
:04:42. > :04:48.eight months if that is what we see. In other business News, the head of
:04:49. > :04:52.Vietnam's's low-cost carrier, they are meeting stock exchange officials
:04:53. > :04:56.in New York about a possible share listing in the United States. The
:04:57. > :05:00.company wants to become the first Vietnamese firm to list overseas.
:05:01. > :05:05.The government changed rules to allow greater foreign investment in
:05:06. > :05:10.the tightly controlled aviation sector. The US could widen its ban
:05:11. > :05:15.on laptops in cabins to cover all international flights in and out of
:05:16. > :05:20.the country. America's Homeland Security secretary said there was a
:05:21. > :05:23.real threat that the US has already banned economic -- electronics
:05:24. > :05:27.larger than a mobile phone being brought on to flights departing from
:05:28. > :05:32.the Middle East and North Africa, in March. And 10 cents is challenging
:05:33. > :05:37.Ali Babar's dominance in the e-commerce in China. The hugely
:05:38. > :05:40.popular media network started selling luxury handbags and clothes
:05:41. > :05:46.on its online platform from the likes of Burberry. Other brands are
:05:47. > :05:54.all reportedly offering flash sales in a bid to test demands. A Swedish
:05:55. > :05:58.film called The Square has backed the top award at the Cannes film
:05:59. > :06:04.Festival. The satire about the art world was one of 19 films competing
:06:05. > :06:08.for the Palm d'Or prize. This festival this year has been
:06:09. > :06:15.surrounded by controversy. Netflix broke with tradition by not
:06:16. > :06:20.releasing its two entries in cinemas. I spoke to the Netflix
:06:21. > :06:26.chief product officer about why they chose that distribution model. We
:06:27. > :06:30.are really trying to meet consumer expectations around their
:06:31. > :06:37.entertainment experience, meaning broad access to content and we know
:06:38. > :06:41.that the films, we know this global distribution platform we have the
:06:42. > :06:44.person I -- personalisation platform can find the biggest audience and
:06:45. > :06:49.support those creators more effectively and we think it's a
:06:50. > :06:53.great option the distribution. You have the issue about how friends
:06:54. > :06:58.cinema tickets are taxed and a lot of those proceeds go to brand --
:06:59. > :07:03.fund the French cinema so in essence your distribution model would kill
:07:04. > :07:07.French cinema. Do you think it will? We are investing a huge amount in
:07:08. > :07:10.French cinema and local retirement and it is effective because we are
:07:11. > :07:14.bringing those stories from France to the world in a way that finds a
:07:15. > :07:19.bigger audience and are much more relevant for French content and we
:07:20. > :07:23.see it differently. We know it is a crowded Margret and you have the
:07:24. > :07:36.likes of HBO and Showtime doing what you are doing -- market. How do you
:07:37. > :07:38.deal with this increasing competition? It's not surprising
:07:39. > :07:40.there's a lot of people who want to ride this wave of Internet
:07:41. > :07:42.revolutionising entertainment. But we think of the competitive space
:07:43. > :07:44.from a consumer perspective and it is broader than that. We are
:07:45. > :07:47.competing with everything that a consumer might do to entertain
:07:48. > :07:52.themselves, whether it's reading a book or going out with friends,
:07:53. > :07:55.watching linear television, all of those things. You are the chief
:07:56. > :08:01.product officer, so lots of pressure to come up with content. How do you
:08:02. > :08:05.come up with a great idea? We use data to try and understand what
:08:06. > :08:11.people will love around the world map model informs us. But the second
:08:12. > :08:14.half is the magic of creators and having a vision for a story they
:08:15. > :08:18.want to tell and buying into that vision. Then we handed over to them
:08:19. > :08:23.and give them the reins and let them have control and give them the tools
:08:24. > :08:30.to tell the story in the best possible way they can. Over in Sri
:08:31. > :08:37.Lanka, in fact -- and expensive infrastructure projects are weighed
:08:38. > :08:41.down by loans. The economy is struggling with a debt crisis so the
:08:42. > :08:45.Sri Lanka and government is handing control to some of its projects to
:08:46. > :08:57.Chinese companies that facing opposition. This port in southern
:08:58. > :09:03.Sri Lanka. Opened in 2010 it costs more than $1 billion and was paid
:09:04. > :09:07.for by loans from China. There was one ship here this morning and left
:09:08. > :09:13.a little while ago. The next one doesn't until tomorrow. Compare that
:09:14. > :09:17.to this country's other port in Colombo which sees dozens of ships
:09:18. > :09:24.going in and out each day. So all of this has been built here, but barely
:09:25. > :09:27.anyone is using it. For Sri Lanka, the port has become a large
:09:28. > :09:33.investment that is bringing few returns. That means the country is
:09:34. > :09:37.unable to pay back the money borrowed to build it. So instead,
:09:38. > :09:41.the Sri Lanka and government is now planning to give a major stake in
:09:42. > :09:49.the port to a Chinese firm. It could be as high as 80%. It is easier for
:09:50. > :09:54.our activity that does not bring an economic return. We keep the place
:09:55. > :09:58.closed and pay out, why should we do that? The next option is for people
:09:59. > :10:03.who might like to come and take a stake. There are other megaprojects
:10:04. > :10:08.China is investing in. Here is a brand-new city is being created --
:10:09. > :10:13.created off the coast of Colombo. It will have corporate offices, shiny
:10:14. > :10:18.apartments, parks and even a marina. All of this is being built by eight
:10:19. > :10:22.Chinese state-owned company investing $1.5 billion, but in
:10:23. > :10:26.return for the money about two thirds of this new city will be
:10:27. > :10:31.handed over to the firm, so liked the proposed deal at the port, China
:10:32. > :10:36.will effectively control another part of Sri Lanka. Some China backed
:10:37. > :10:40.projects led to protests earlier this year from locals unwilling to
:10:41. > :10:45.sell their land, homes and farms for development. There are others who
:10:46. > :10:51.object more broadly to what they call a sale of Sri Lankan territory.
:10:52. > :10:58.Any land we give China, we don't like. Any country that comes to take
:10:59. > :11:02.land from Sri Lanka, we don't like. But not all Chinese investment has
:11:03. > :11:07.been without benefit. The many highways and roads constructed have
:11:08. > :11:12.helped boost tourism. But Sri Lanka is tap -- trapped in a debt crisis
:11:13. > :11:17.and owes $8 billion to China alone. So whether good or bad, the
:11:18. > :11:20.government here does not have much room to negotiate on the kind of
:11:21. > :11:28.deals it strikes to help its economy and its people. And for those of you
:11:29. > :11:35.who like watching our programmes, guess what, we have a new programme
:11:36. > :11:39.debuting tonight, Talking Business. Viewers in Asia can watch the
:11:40. > :11:45.programme at 9:30pm here in Singapore and Hong Kong and 7pm in
:11:46. > :11:49.Mumbai. A quick look at the markets. Currently flat. Shrugging off all of
:11:50. > :11:50.those tensions and concerns around the missile launch in North Korea.
:11:51. > :11:59.That is it. Thanks for watching. The Japanese government has
:12:00. > :12:02.condemned North Korea's latest Around two thousand people
:12:03. > :12:10.are still thought to be trapped in the southern Philippine city
:12:11. > :12:13.of Marawi as troops battle militants Both the Conservatives
:12:14. > :12:19.and Labour Party, have been focusing on national security today
:12:20. > :12:21.in the election campaign. The Home Secretary Amber Rudd,
:12:22. > :12:23.reaffirmed that the Conservatives would set up a commission
:12:24. > :12:27.to promote British values and tackle extremism,
:12:28. > :12:35.while Labour wants to recruit 1,000 security experts in addition
:12:36. > :12:37.to 10,000 extra police. Here's our Political
:12:38. > :12:38.Correspondent Alex Forsyth. In the aftermath of such
:12:39. > :12:40.an atrocity, inevitable questions about how to stop something
:12:41. > :12:42.like this happening again. The actions of this man,
:12:43. > :12:45.Salman Abedi, forced a pause Now preventing others like him
:12:46. > :12:48.is part of the debate. The Home Secretary said today
:12:49. > :12:54.the Government had for the first time used powers to prevent
:12:55. > :12:55.suspected terrorists On the Manchester attack,
:12:56. > :12:59.she said police and security With questions about who knew
:13:00. > :13:05.what and when, she was asked about reports that friends
:13:06. > :13:07.and community leaders had raised Was Salman Abedi on
:13:08. > :13:14.a surveillance list? I don't know those details that
:13:15. > :13:17.you have set out to me because the intelligence services
:13:18. > :13:19.are still collecting information But I wouldn't rush to conclusions,
:13:20. > :13:25.as you seem to be, that they somehow People had phoned the terror
:13:26. > :13:31.hotline, as they are told to do. And the reason we have put
:13:32. > :13:36.in place the terror hotline, the reason we have put in place
:13:37. > :13:38.the Prevent strategy is because we recognise
:13:39. > :13:42.the scale of the problem. So what would different parties do
:13:43. > :13:44.to tackle the problem? Well, the Conservatives
:13:45. > :13:45.would introduce So far short on detail, it
:13:46. > :13:53.would advise new laws and policies. They say they have committed extra
:13:54. > :13:55.funding for counterterrorism agencies and are recruiting
:13:56. > :13:59.more security officers. Labour, too, has promised more
:14:00. > :14:01.security and intelligence staff and 10,000 more police officers
:14:02. > :14:03.as well as more prison In the battle for power here,
:14:04. > :14:09.Labour are attacking the Conservatives over cuts,
:14:10. > :14:12.saying they have left The Tories are defending
:14:13. > :14:19.their record on crime. But like so much in this election,
:14:20. > :14:22.they want to make this The Shadow Home Secretary was asked
:14:23. > :14:27.again today about past comments she had made,
:14:28. > :14:31.seemingly supportive of the IRA. It was 34 years ago, I had a rather
:14:32. > :14:35.splendid afro at the time. I don't have the same hairstyle
:14:36. > :14:38.and I don't have the same views. Labour says the focus now
:14:39. > :14:40.should be how to keep people safe from this,
:14:41. > :14:51.an attack which, rather than undermine the democratic
:14:52. > :14:53.system, has highlighted the choice Who is best to lead,
:14:54. > :14:57.who is best to protect?