:00:00. > :00:00.A strong earnings season in the US has helped lift Asian stocks, but
:00:00. > :00:09.will that continue? And, why this circus wants to somersault into
:00:10. > :00:22.China by linking up with the Blue Man Group. It's a busy week for US
:00:23. > :00:29.companies, reporting earnings. We will hear from some key firms
:00:30. > :00:35.including Google, and their parent company, Alphabet. They will release
:00:36. > :00:42.the revenue of YouTube for the first time. We will also hear from General
:00:43. > :00:46.Motors and McDonald's during the two-day policy meeting. On
:00:47. > :00:53.Wednesday, we find out how Facebook and Nintendo are faring, followed by
:00:54. > :01:02.Amazon, Twitter and Starbucks on Thursday. We learnt what to expect.
:01:03. > :01:05.There are going to be several 100 American companies reporting this
:01:06. > :01:11.week. As far as corporate earnings are concerned, what has been driving
:01:12. > :01:16.the market up to now has been companies cutting costs, and using
:01:17. > :01:20.those cuts, and not raising wages that much in America. What they do
:01:21. > :01:25.with the extra cash is to purchase their own shares back. When you do
:01:26. > :01:29.that, fewer shares in the market, it means that the profit per share goes
:01:30. > :01:33.up. That is what has been driving the stock market for the last ten
:01:34. > :01:40.years. People are now looking at whether these companies can grow
:01:41. > :01:49.their revenues. Those that can go sales by Mike grow sales will see a
:01:50. > :01:55.benefit, those who can't will not be rewarded as much. Are you expecting
:01:56. > :02:01.much from the Federal reserve on Tuesday? No, I think it is too soon
:02:02. > :02:05.for an increase. I think what people will be looking for is what they
:02:06. > :02:12.will say, the kind of tone they will give to the market. The problem that
:02:13. > :02:16.the Federal reserve has is the $4.5 trillion balance sheet, they need to
:02:17. > :02:20.find a way to drain some of that cash from the global economy. How
:02:21. > :02:24.they would do that is really up to the Federal reserve. Warren Buffett
:02:25. > :02:28.once said he would be very interested to see how they could
:02:29. > :02:33.drain this cash without causing market disruptions. We know it has
:02:34. > :02:37.been distorting the market and housing prices. It would be
:02:38. > :02:42.interesting to see Amazon results, they are making a huge push into
:02:43. > :02:49.markets like China. Can they make much of a dent when you have got
:02:50. > :02:57.hugely established competitors such as Alibaba? Yes, Alibaba have about
:02:58. > :03:02.50% of the market in China, then you have Amazon trying to move it. I
:03:03. > :03:07.think they should really leave China alone, it is too big of a battle for
:03:08. > :03:12.that. I think they should focus on India where they have a much better
:03:13. > :03:16.chance, where they are more role less neck and neck. -- more
:03:17. > :03:27.or less. We also have the latest global economic forecast. Attention
:03:28. > :03:31.will be on what IMF says about the Chinese economy and any possible
:03:32. > :03:38.effect on the UK economy because of Brexit talks. The US website WebMD
:03:39. > :03:42.is reportedly being sold to a private equity company. The company
:03:43. > :03:48.is estimated to be worth more than $2 billion. According to Reuters,
:03:49. > :03:59.negotiations are being made for an all-cash deal. The company
:04:00. > :04:11.purchasing will add it to their portfolio. A driver death linked to
:04:12. > :04:16.Takata is being investigated. It is the 18th that had he recorded
:04:17. > :04:20.worldwide related to auto parts made by the automaker. More than 2
:04:21. > :04:24.million cars have been targeted in a recall in Australia since 2009. The
:04:25. > :04:30.Japanese company filed for bankruptcy protection last month. It
:04:31. > :04:35.should be a smooth commute for Japanese workers this morning. The
:04:36. > :04:41.24th of July has been designated the start of the Olympic and Paralympic
:04:42. > :04:46.day of telly work, encouraging people to work from home ahead of
:04:47. > :04:54.the games. It proved to be successful in the 2012 Olympics. --
:04:55. > :05:01.tele-work. The world's leading oil producers are meeting in Russia.
:05:02. > :05:06.Ministers from the OPEC countries, as well of other oil producers, are
:05:07. > :05:10.going to be in St Petersburg discussing plans they put in place
:05:11. > :05:15.to deal with the glut in world oil supplies. We came up with a plan to
:05:16. > :05:22.curb production and stock prices from falling, but that has not been
:05:23. > :05:30.working. UC prices trading below the $50 mark. Earlier, I asked the chief
:05:31. > :05:36.investment officer in Sydney what impact non- OPEC members will have
:05:37. > :05:42.in production. It is going to be a very interesting meeting. The
:05:43. > :05:46.markets are saying that the oil cut is not working, markets are down 12%
:05:47. > :05:51.-- non-OPEC. I don't think they are going to come up with much, but I
:05:52. > :05:55.think the key development will be whether Libya and Nigeria actually
:05:56. > :06:00.join part of the supply cut. At the moment, they are being excluded from
:06:01. > :06:10.its. That's right. Even if they do, with an agreement, how much of that
:06:11. > :06:15.would be symbolic? We talk about some non-compliance by nonmembers,
:06:16. > :06:20.how can they possibly stick to the cuts they propose? -- Cirque du
:06:21. > :06:29.Soleil. The interesting thing is the compliance issue. -- come up with.
:06:30. > :06:35.All the acting outside, people are going to really question what OPEC
:06:36. > :06:40.is all about. At the end of the day, I think it is going to be quite
:06:41. > :06:48.crucial. Oil prices will come under increasing pressure if they don't
:06:49. > :06:56.get what they want. Now, Cirque du Soleil is looking outside the big
:06:57. > :07:00.top in a bid to diversify. It has approached the US company that owns
:07:01. > :07:40.the Blue Man Group. We find out what's behind it.
:07:41. > :07:46.Cirque du Soleil is putting the spotlight on this Chinese city,
:07:47. > :07:54.where they planning a permanent show. We asked why they are doing
:07:55. > :07:57.this. We see China as being the next market where Cirque du Soleil can
:07:58. > :08:06.really establish themselves in a very strong way. In announcing this
:08:07. > :08:11.tour, they have got the right shows to enter the Chinese market for the
:08:12. > :08:16.next 14 months. What are some of the difficulties of going into such a
:08:17. > :08:24.tightly controlled market? Cartel in each with marketing is to make the
:08:25. > :08:31.Chinese understand what Cirque du Soleil is all about. We're not a
:08:32. > :08:35.circus, we are dance, music, cinematography, we a different kind
:08:36. > :08:38.of show. We will put in a lot of effort to make sure the Chinese
:08:39. > :08:41.understand that. When Cirque du Soleil acquired Blue Man Group, you
:08:42. > :08:50.said it would broaden your horizons? What did you mean by that? Now with
:08:51. > :08:56.Cirque du -- Blue Man Group, we see huge potential. That is how my life
:08:57. > :08:59.has changed since last week. Now when I am meeting potential
:09:00. > :09:04.partners, I not only offer the Cirque du Soleil shows, I am now
:09:05. > :09:09.selling Blue Man Group as well. One of the oldest circus acts, the
:09:10. > :09:17.swinging brothers, had to shut down after almost 150 years. Is that
:09:18. > :09:22.something you fear could happen to you? The challenge we have is to
:09:23. > :09:26.remain the leader, but rain on the edge of the time. We want to bring
:09:27. > :09:32.new ideas, new technology is going to play a major role in our future.
:09:33. > :09:37.3-D technology, virtual reality. We are investing a lot in research and
:09:38. > :09:39.development. It is our challenge to remain relevant to the public. So
:09:40. > :09:49.far, it's working very well for us. Time for a look at the markets
:09:50. > :09:58.before we go. Some of the Asian markets have opened. Australia's all
:09:59. > :10:03.ordinaries are already down, this is due to the falls in oil prices on
:10:04. > :10:07.Friday. That is taking a real hit on commodity stocks. A lot of
:10:08. > :10:12.nervousness ahead of the Federal reserve meeting later this weekend.
:10:13. > :10:17.And that's it for this edition of Asia Business Report.
:10:18. > :10:26.President Duterte will later deliver a second state of the nation address
:10:27. > :10:30.to a joint session of Congress in the Philippines.