:00:00. > :00:00.listen to the recommendations of pay review bodies looking
:00:00. > :00:18.More from me later, but first, he is Rico Hizon. -- here is. Hong Kong
:00:19. > :00:24.kicks off a new week with a new chief executive and a new trading
:00:25. > :00:31.link with mainland China. And in an exclusive interview with the BBC, I
:00:32. > :00:40.speak to the new head of the Philippine central bank. Good
:00:41. > :00:45.morning Asia. Hello world. It is a Monday. The start of a brand-new
:00:46. > :00:51.trading week. They you to join us for this week of Asia Business
:00:52. > :00:55.Report. It was a busy week in Hong Kong, with the 20th anniversary of
:00:56. > :01:02.the handover. A new Chief Executive has been sworn in and is building
:01:03. > :01:12.stronger ties with the mainland. The link will allow foreigners access to
:01:13. > :01:18.the third largest world market. Juliana Loo tell us how it the
:01:19. > :01:23.linkup will work. -- Liu. According to the central bank to Hong Kong and
:01:24. > :01:28.China, from today, foreign investors will be able to buy Chenies bonds by
:01:29. > :01:37.Hong Kong. That is northbound trading from Hong Kong to China. --
:01:38. > :01:44.that V programme has not yet been announced. -- that leg. It is
:01:45. > :01:51.institutional investors that will deal to make these trades. The likes
:01:52. > :01:59.of banks, insurers, and so on. This is the third largest bond market in
:02:00. > :02:03.the world. It is worth 9 trillion US dollars. At the moment, foreign
:02:04. > :02:07.investors only count for 2% of the market. Some analysts are predicting
:02:08. > :02:15.a lot of room for growth. Peter Wong, the CEO of Asia's busy
:02:16. > :02:21.Asia-Pacific has said that this will be a catalyst for the continuing
:02:22. > :02:30.development and globalisation of China's bond market. Optimism from
:02:31. > :02:37.hedges busy. And this trading link is coming so soon after China's
:02:38. > :02:43.inclusion in the MSCI. It is another opening in the Chinese financial
:02:44. > :02:49.markets? Absolutely. This is a significant step. One of the
:02:50. > :02:51.requirements in the recent listing of mainland Chinese shares is that
:02:52. > :03:10.foreigners could access the shares. Investors, Chinese bonds will soon
:03:11. > :03:16.become a part of global bond indices.
:03:17. > :03:25.Investors, Chinese bonds will soon become a part of global bond
:03:26. > :03:31.The Philippines is a standout in the region. It is one of the Korean
:03:32. > :03:36.economies in Asia exhibit infrastructure spending and robust
:03:37. > :03:49.demand. According to the World Bank's most recent projections, this
:03:50. > :03:54.could see growth of 6.5% - 7% this year alone. This week, I spoke to be
:03:55. > :04:03.head of the Philippine central bank. In his first interview since taking
:04:04. > :04:07.job, asked him what jobs lay ahead. We are just because yes, there is
:04:08. > :04:10.growth, but it is not happening for all of us. People are getting left
:04:11. > :04:17.behind. That is why we need to strengthen our policy across a broad
:04:18. > :04:23.front, for the financial sector. We are committed to creating greater
:04:24. > :04:25.financial inclusion to promote y-axis. This is important
:04:26. > :04:36.broadening the effects of the broadening the effects of the
:04:37. > :04:48.economy. -- to promote the access. I will pursue a continuity. We are
:04:49. > :04:54.looking to support us stability and financial stability. We are already
:04:55. > :05:00.pointed in the right direction, but we need to improve how we do things.
:05:01. > :05:07.This involves, in respect to financial sectors, supervision.
:05:08. > :05:11.Continuing reforms. But also this need to be done in a manner that
:05:12. > :05:16.promotes financial inclusion, as well as promoting consumer
:05:17. > :05:21.protections. So with respect to monetary policy, there it is some
:05:22. > :05:26.continuity there, because we have adopted the interest-rate corridor.
:05:27. > :05:30.reshaping the way we conduct my reshaping the way we conduct my
:05:31. > :05:35.cherry policy towards a more market oriented system. The Governor with
:05:36. > :05:44.the global current economic fundamentals, with China, Japan, and
:05:45. > :05:49.Brexit negotiations... Could this trigger another global financial
:05:50. > :06:03.crisis in and other shape or form? The world is facing uncertainty. If
:06:04. > :06:08.you look at the data, we are doing well. The element of uncertainty
:06:09. > :06:13.with the places you have identified is quite strong. That is a reason to
:06:14. > :06:17.not be complacent. For us, we had to forge ahead with the reforms we have
:06:18. > :06:22.been doing for the last decade or so. He takes the reins at the start
:06:23. > :06:29.of the second year of President Rodrigo Duterte's taking of office.
:06:30. > :06:36.He promised to spread the economic growth to everybody. I spoke to an
:06:37. > :06:40.expert and asked how Rodrigo Duterte's first years compared to
:06:41. > :06:44.his predecessors. The fact year. his predecessors. The fact year.
:06:45. > :06:48.SINGING I think what makes it different is that he was able to
:06:49. > :06:52.facilitate the construction of progress.
:06:53. > :07:10.They can make progress. He has continued reforms. As he added to
:07:11. > :07:16.what has started? I think no new infrastructure can be triggered to
:07:17. > :07:21.the Rodrigo Duterte's pipeline. Had the projects are ready started? It
:07:22. > :07:26.had been 360 days since it started as president. Adding most of his big
:07:27. > :07:30.projects would only kick in and around 2019, so that is why the tax
:07:31. > :07:34.reform is important, because that is expected to finance his big projects
:07:35. > :07:39.outside of the capital region. What you make of these changes in the tax
:07:40. > :07:45.reform policy? It really helped the Philippine economy? As it is, it has
:07:46. > :07:51.been watered down significantly. But what you would really see here is
:07:52. > :07:57.that it would push up the consumption of the domestic economy
:07:58. > :08:01.like cutting the domestic income tax. But this has been driven by
:08:02. > :08:09.huge remittances from overseas Filipino workers like you and me. So
:08:10. > :08:13.are we going to see more work in the Philippines, or will the economy be
:08:14. > :08:18.driven by outsourcing, remittances, and infrastructure? I think going
:08:19. > :08:24.out of the country has become more of a collocated question, now.
:08:25. > :08:29.Because most graduates, maybe ten years ago, immediately thought of
:08:30. > :08:36.going out of the country. But with the BPO sector being very high
:08:37. > :08:42.salary, it is now a very good alternative to staying in the
:08:43. > :08:49.Philippines. How would you rate Rodrigo Duterte enters of economic
:08:50. > :08:56.reform? I would say about eight as far as his performance is concerned.
:08:57. > :09:01.In other business news, making headlines, it is back. Samsung has
:09:02. > :09:11.announced it will sell a re- furbished version of its Galaxy Note
:09:12. > :09:16.7 phone. It had to recall them after problems with fire prone batteries.
:09:17. > :09:20.The cost Samsung over by billion dollars in operating profit. It will
:09:21. > :09:27.only be available in Korea and will retail for a much lower price than
:09:28. > :09:32.the original. Let's now have a look at what we are watching this week on
:09:33. > :09:36.the business and trading front. On Tuesday, the reserve bank of
:09:37. > :09:41.Australia will be announcing their cash rate decision. The central bank
:09:42. > :09:47.is expected to give it at a record low of 1.5% at its monthly meeting.
:09:48. > :09:53.And moving to the next important day, and the European Union ramps up
:09:54. > :09:59.talks with ASEAN. Senior officials from both sides are meeting in
:10:00. > :10:03.Bangkok. And world leaders and central bankers are gathering in
:10:04. > :10:12.Hamburg for the G20 international summit. Let's have a look briefly at
:10:13. > :10:16.the markets. And at the open, the Nikkei is getting 45 points. The all
:10:17. > :10:21.of Mary 's index is down by 83 points in early trade. Thank you for
:10:22. > :10:25.investing your time with us. I am Rico Hizon in Singapore. Sport Today
:10:26. > :10:27.is coming up next. Stay tuned for