14/06/2017 Asia Business Report


Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.

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That is all for now. Stay with us. More coming up from me later, but


first, all the business news with Rico Hizon in Singapore and Asia


Business Report. We look at what companies in America and Asia want


from the US Fed 's intraday's meeting. --.


I'm glad you could join us. I am Rico Hizon. It is less than 24 hours


before we find out if the US central bank will raise interest rates for a


second time this year. Analysts widely expect the Fed to increase


the cost of borrowing. It has fallen to a 16 year low and economic growth


appears to have picked up, with inflation so low, Wieters the Fed


stand ready to act again? Michelle Fleurieu has more from New York. --


Fleury. This factory is growing at a dizzying pace. We have been grown


for the last 18 months between 15 and 18%. This woman left university


to set up this start-up, hoping to revive an industry many left for


dead. Here, they sell close not to customers but directed to


businesses, who demand a fast turnaround. The firm now employs 65


people, and has set up its own university to train people. We knew


right from the beginning that we had to train our workforce, make them


employable. So we do that. We have had had 18 graduates from the


university are ready, and then they graduate from the system. The Djere


the Federal reserve must decide if the rest of the economy still needs


support in the shape of altar low borrowing costs. -- Suuchi. This


former official believes they are ready to act. This economic data was


next to me so why the rush? It has been mixed because the inflation


numbers have softened a little. A lot of that has been transitory and


surprising declines in things like cellphone bills, oil prices having


dropped a little, but they are likely to be temporary. The key


thing is the labour market continues to tighten. With the unemployment


rate at a 16 year low, those inside here are betting that wage growth


might not be far behind. A driving force in the global economy, America


is enjoying one of the longest expansions in its history. To


prevent the economy from overheating, the US central bank is


likely to raise interest rates this Wednesday, in another step towards


concluding the stimulus campaign that began after the financial


crisis. Michelle Fleury, BBC News, Washington. Even if they increase


rates, it is unlikely that Asian central banks will follow suit. What


we have seen, despite a lot of talk and a text book approach that other


central banks would have to move along, the reality is that in the


past, when the US Fed has done this, Asian central bank said not


necessarily that long. And so much of the issues are actually local


issues and dagger to base their decisions on local conditions. Not


what the US Fed does. How could this impact Asian companies? There are


several potential impact. These are, ageing committee to borrow US


dollars could face higher borrowing costs if the US dollar appreciates.


But on the other hand, the outlook for growth in Asia is still very


good. There has been close to 6% growth in Asia projected by the ADB.


Even with higher US interest rates or a higher borrowing cost, Asian


companies ago to make money this year based on local economic


conditions, and given that the other plagiarist generally positive, the


fact that the US raises rates by a small amount, or later this year, is


from Ali to have the monumental impact that some of the pundits tell


us. -- given that the other forecasts are generally positive. So


much of the growth is based on local economic conditions. Even with high


rates, US growth is generally good, so on the export side, if the US is


growing, that is good for Asian exporters, and domestic me, for


companies that make money to local market selling products and services


locally, the outlook is good in Asia this year. So they should not see a


impact on local sales or local economic conditions in the because


the US Fed raises rates. So much of this sentiment over this issue is


built on, and the focus should be a local economic conditions in the


Asian market. Ross Finegold in Hong Kong. In other business news, the


boss of Uber players who take time away from the company and could


return in a diminished role. This comes after a review of management


and practices after a former employee's claims about sexual


harassment. One of China's is known billionaires is stepping down from


Anbang. He has only given personal reasons. Chinese media has reported


that Mr Wu was detained by authorities last week. There has


been billion-dollar loan five provincial capitals in Bangladesh.


In aviation, Katter Airways has told the BBC the Donald Trump is not a


business friendly president. -- Qatar. Saudi Arabia, Bahrain, and


Egypt have accused Doha of supporting terrorism and getting too


close to Iran. The implication that Qatar has been allied with terrorism


is incorrect. We have been the leaders in fighting terrorism. We


have the largest base outside the United States. We have 10,000


American troops here. Don't you think that a leader of a superpower


should at least have his act together and be consistent? How can


he be business friendly as a president if he is encouraging and


condoning the blockade of the tiny nation that is so important in the


Emre Can fight against terrorism. That was the boss of Qatar Airways.


Elliott management has called BHP Billiton to upgrade its board of


directors. This comes as the move to choose a new chairman. Electronic


giants have been grabbing headlines at the largest gaming show in the


world, E3, not least Nintendo, which has introduced a number of new


games. All these games are being launched for the Iran. But after


dominating the industry for decades, Japanese and these are now


struggling with a petition. Earlier, I spoke to David Haig about why. In


the 90s, they had the discipline and hard work, they had the product


around the world. -- Iran. But now there are several other countries.


-- David Haigh. Why have these companies fall behind and Koreans


and Chinese caught up with an? One of the things is culture. -- up with


them. In China, India, they argue that they change things and they


rapidly change. They fulfilled the lines as they arise. Is also


possible, David, that there is not enough international talent and


creativeness in these Japanese countries, companies? -- Japanese


companies? Ted Mack I think that is true. They are sometimes very


difficult to deal with because of the overpowering culture of not


arguing or changing things. Jese make what must these companies do to


change things up now compete with the cheaper Korean Chinese brands?


-- just what must these countries. They need a wider range of talent


coming to this covered it. What about the governments and the


accounting scandals, all these things have hurt the Japanese


The headlines: Jeff Sessions has told the congressional committee


that allegations his campaign colluded


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