19/07/2017 Asia Business Report

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

As China and America's 100 days of trade talks expire, we look at how

much has been achieved. And India's aviation minister exclusively tells

the BBC it has agreed to the of the state carrier.

Hello and welcome. American beef, natural gas and financial services.

Those are just some of the trade deals struck between the US and

China after US President Trump met the Chinese president in April. Many

are wondering if both sides can agree on more weights ways to boost

trade. Washington wishes to reduce its trade deficit which reached $347

billion last year. There are many contentious issues are still on the

table as senior officials gather in Washington for the annual bilateral

economic dialogue. We have more on that from New York.

It is made in America week in the US and President Trump is promoting it.

When we purchase products made in the USA, the profit stays here, the

revenue says here and the jobs, maybe most importantly of all, they

stay right here in the USA. That kind of protectionist language is a

worry for America's trading partners including China. These days,

however, Mr Trump's tone is more measured when it comes to China,

compared to what was said in the throes of a presidential campaign.

We cannot continue to allow China to rate our country. They have taken

our money, they have taken our jobs. The turning point in the

relationship? We need broke rank and ate cake. Now President Trump has

referred to President Xi as a terrific guy and a good friend of

mine. Given the political state, what can we expect to come out of

the summit? I would not expect any big breakthroughs. The most

important thing is that they are talking and I would expect a fairly

amicable discussion, some minor outcomes and some nice general

language that the two countries will work together to strengthen economic

relationships and reduce the trade imbalance, it imbalance.

Overshadowing the economic and trade issues is the question of North

Korea. Mr Trump wants China to exert more pressure on the country. A

failure to do so could undermine the strategic dialogues.

At a business lunch before the start of talks, the Treasury Secretary

outlined his expectations from the summer. We still have work to do

with China to achieve a balanced relationship based on reciprocal

city. This relationship will provide more opportunities for us and for

exporters and companies to compete. This means working to lift foreign

ownership restrictions so that US companies can participate more

thoroughly in China's growing financial services sector. It means

working with China to resolve barriers to trade and its

information and communication technology. Finally, it means a high

standard of openness and communicating. New and revised

policies, regulations and statistics that our companies can make

efficient business and efficient business decisions. In other news,

Bank of America has reported a better-than-expected 10% rise in

profits in the three months to June. The lenders say they did better due

to higher interest rates and a boost in retail business, offsetting a

slowdown in the investment sector. Increased sales of the 35 fighter

jet has boosted profits at Lockheed Martin. It that it beat market

expectations after posting a 5% rise to over $940 million. Sales in the

aeronautic listeners, have jumped nearly 20% in the second quarter.

Shares in Harley-Davidson are down 6% in after hours trade in New York

after the iconic motorcycle maker slashed its sales forecast for this

year. At one point they plunged 12%. And demand has dropped four years

and they are facing competition from cheaper bikes. After struggling for

years, India's government has finally agreed to privatise its

national carrier. The airline is saddled with debt and so selling

even part of it off will not be an easy task. We sat down with the

aviation minister for this exclusive interview. A royal prince is the

mascot of India's national carrier. And while they were once king of the

skies, it has not made a profit in over a decade. A5 billion dollar

bailout by the government in 2012 did not help. Today, the airline has

a debt of $8 billion. Now a committee will decide whether to

sell a minority stake or sell the airline completely. I spoke to the

aviation minister, who is on the committee, and began by asking him

if the government will write off the debt to sell the airline. You must

be practical in these things. We have a word in Hindi that means

scapegoat. A hard now and businessmen and there is always a

scapegoat that can be found. So you need escape to take up the airline?

With all of its debt, we would need about 52,000. If I had that type of

money, I could set up an outline. I would not have the eye. If you find

a buyer willing to invest, given that it is a huge mess, they would

one day a huge hand in restructuring, which would involve

cutting jobs. That will lead to long-term trouble. There is thinking

that taxpayer money is invested in other places. Rather than keeping

airline afloat. Those other places also render more jobs. In terms of

numbers and things like that. Do you see problems on that front? There

are problems everywhere. Business as usual is not an option. Will you

face political opposition? It is taxpayers money you will be using.

We do if no matter what you do you have political opposition. We could

allow Aero India to become a written off company unable to discharge its

liabilities. The Indian e-commerce firm Flipcart

is sweetening its offer to buy a rival. They have told Indian media

that Flipcart has raised its bid to 950 million. Becomes one fortnight

after its initial bid was rejected. And what SAP is now working, not

working in China. The service appears to have been hit by

disruptions and experts say could be blocked by the government. The

online currency bit coin has jumped in value after reports it may not be

split into different currencies after all. The people who run the

currency have been divided over it, Howard is used, leading to flee as

it could be split up. British American Tobacco shareholders are

set to vote later today on its $49 billion merger with a rival it will

create the world 's largest publicly listed tobacco firm. Consolidation

has been picking up in the industry as demand falls. However in Asia,

Japan, China and Indonesia are among the world's exist tobacco consuming

countries. India is also growing quickly. The use of smoke-free

products is also becoming more popular across the region. I was

told how this could affect the plans for Asia. The bulk of the profits

for BA tea will come from developing countries and emerging markets. In

Asia you will find the smoking prevalence over 40% of men, they are

smokers. This translates into big business. Not just for BAT but the

tobacco itself. When you look at large make it to markets such as

Indonesia where two out of three men are smokers, this is a huge pocket.

In the Philippines you have 17 million smokers. The future profits

of BAT is Asia and other emerging markets. 'S a quick look at the

markets and how they have opened here in Asia. Than Japanese market

is flat as is the Australian.