04/07/2017 Asia Business Report

of the island's care system and also warned that some young

Now on BBC News all the latest business news live from Singapore.

Australia's central bank is said to make its latest policy decision.

Will it change course? And we find out if women CEOs can close the

gendered gap by catering to other women. Good morning Asia hello

world, glad you could join us for this Tuesday edition. I am Rico

Hizon. We start off with the central bank in Australia and it is widely

expected that the Reserve Bank will leave rates on hold at its meeting

today. The rate is currently sit at a historic 1.5%, where they have

been since August last year. With a strengthening jobs market and a

cooling housing sector, is the bank likely to change course in the

coming months? Earlier I asked an economist based in Sydney. I think

they are sitting on the fence and now and that will probably remain

the story going into next year. It is possible, though, that the

Reserve Bank may come out and say well, just like the bank of Canada

and the Bank of England, they need to think about, eventually, raising

interest rates. If they do that it is a story of the second half or

possibly even later, in 2018. Right now indicated on the economy are

mixed. Employment is strong but the housing sector is slowing. The

economic data for Australia right now, is it a debate over whether the

glass is half empty or half full? When is it headed in the second

half? That is correct. Most economists see interest rates on

hold but there are a number who see rate hikes on the horizon. Another

handful who see rate cuts. It depends on your perspective. My

feeling is we still have a relatively sluggish growth in

Australia. The recession but certainly not booming and probably

not enough to give upwards pressure on wages. By the time we reach the

end of 2018 or going into 2019, the economy should be strong enough to

withstand interest rate hikes. Right now I think it is far too early. How

about the state of the resource economy? When are we likely to see

that ounce and back was to mark it has been suffering over the past few

years. It certainly hasn't had been drag on the economy. The big thing

there is the slump in mining investment. It earlier it boomed

recently it has been slumping. That is a drag on states like Western

Australia. That drag is getting close to the bottom and I think that

the worst is probably over for the mining sector. But we are a long way

from going back to a boom. This is not 2004, 2005, in the foothills of

the massive boom. I think we are in for a long workout. A drag on the

economy from the slump in the mining sector is over.

A key measure of inflation meant in Southeast Asia remains close to the

central bank's target. The consumer price index climbed in June. The

increase is due mostly to a sharp rise in fruit and vegetable prices,

caused by drought. Core inflation which excludes volatile food and oil

prices was lower at 1.5%. US car sales continue to slow in June,

marking the sixth straight month in decline. The two big car makers in

the country of reported that total sales fell about 5% from the

previous month. The sale space was 16.5 million units. That is

considerably down from 2016 when sales hit a record 17.5 million. The

chief executive of Tesla says that the first model number three will be

rolling off the company's assembly line this week. It is their first

mass-market car and it expects to ramp up production by the end of the

year. Tesla delivered thousands of electric cars and sedans in the

first half of 2017. That is at the lower end of its own forecast. They

said a severe shortfall in new battery packs had constrained

vehicle manufacturing. Four ex Berkley 's bankers including the

former chief executive have appeared in court in the UK charged with

fraud. The charges relate to the way Berkley has raised billions of

pounds from Qatari investors during 2008. It is the first time that any

UK bank has faced charges over the way they behaved during the

financial crash. A recent survey by the consultancy group found that

women occupy only one quarter of senior management positions

worldwide. Some have found that creating businesses that cater to

other women can be a smoother path to success. But does this approach

to reinforce a gender divide in business? Sol cycle. It is loud,

dark and it is popular. That popularity has propelled his brand

of stationary cycling from a single studio to a national phenomenon and

soon it will be on the public stock exchange. It does its dependence on

women speak to the wider trend of women studying female focused

companies. What investors are looking for is businesses with sound

fundamentals. Can you grow your business, are you making returns on

your capital? Studies have shown the women are more reluctant to get into

business and a good in is solving a problem you face personally. That

was how the tampon alternative Flex was born. I never wanted to be an

entrepreneur. Quite frankly I was terrified of becoming an

entrepreneur. The likelihood of success is slim to none. But I was

very passionate about this problem and I knew I had to solve it. But if

female entrepreneurs only focus on solving their own problems, or

catering to women, they risked reinforcing the same stereotypes

that have plagued women in business for years. The stereotypes and

preconceptions about what men and women are good at the traits that

they possess a more exaggerated than reality. In most businesses, in

reality, men and women are equally likely to have the traits needed to

be successful. The problem is the perception rather than reality. Less

than 5% of Fortune 500 countries have female CEOs. And while more

women than ever are starting businesses, it is still far less

than men. If the economy is ever going to receive the full benefits

of gender equality, everyone will need to rethink what business --

businesses women can succeed in. The Chinese president is in Moscow for

talks with Vladimir Putin ahead of the G20 Summit in Germany later this

week will there is plenty to discuss between the two leaders. The two

countries are major trading partners and they are expected to sign a

number of deals that this meeting. But even though China's one bel, won

road plan goes through much of Central Asia, Russia will largely

missed out on the economic benefits. Earlier I spoke to a Russian

business specialist. I asked of the one. One road initiative will cause

any friction between the two leaders. Russia does not participate

exactly in this initiative but it supports it. And because the Russian

union is going along... Both are want to create free-trade zones

which will contribute to the incontinent. Will China also be

losing by bypassing a large chunk of Russia? I would not say China will

lose something. We know from the gas contract between Russia and China,

both countries benefit a lot. Russia allows a lot of gas pipes in order

to share. Sherrod a competitive price. I'm sure the two countries

can arrange a good price for both. Despite the situation between Russia

and China at the moment, traders up by over 26% between the two

countries. What drives this higher trade? Trade has been developing

investment and opportunity with finance and mass media and

education. Many different fields are developing and just now the Chinese

President is coming to Moscow to discuss mutual bilateral relations

until 2020. Because until then, trade should reach $200 billion.

Before we go, let's have a quick look at how Asian markets are faring

at in the morning trade this Tuesday. All are in positive

territory. To the All Ordinaries gaining 35 points. This is due to

rising oil prices and investor appetite for financial stocks which

helped to boost most of the US and European equities while the dollar

rebounded on exchange markets. Thank you for investing your time with us.

Have a productive Tuesday.