24/07/2017 Asia Business Report

A strong earnings season in the US has helped lift Asian stocks, but

will that continue? And, why this circus wants to somersault into

China by linking up with the Blue Man Group. It's a busy week for US

companies, reporting earnings. We will hear from some key firms

including Google, and their parent company, Alphabet. They will release

the revenue of YouTube for the first time. We will also hear from General

Motors and McDonald's during the two-day policy meeting. On

Wednesday, we find out how Facebook and Nintendo are faring, followed by

Amazon, Twitter and Starbucks on Thursday. We learnt what to expect.

There are going to be several 100 American companies reporting this

week. As far as corporate earnings are concerned, what has been driving

the market up to now has been companies cutting costs, and using

those cuts, and not raising wages that much in America. What they do

with the extra cash is to purchase their own shares back. When you do

that, fewer shares in the market, it means that the profit per share goes

up. That is what has been driving the stock market for the last ten

years. People are now looking at whether these companies can grow

their revenues. Those that can go sales by Mike grow sales will see a

benefit, those who can't will not be rewarded as much. Are you expecting

much from the Federal reserve on Tuesday? No, I think it is too soon

for an increase. I think what people will be looking for is what they

will say, the kind of tone they will give to the market. The problem that

the Federal reserve has is the $4.5 trillion balance sheet, they need to

find a way to drain some of that cash from the global economy. How

they would do that is really up to the Federal reserve. Warren Buffett

once said he would be very interested to see how they could

drain this cash without causing market disruptions. We know it has

been distorting the market and housing prices. It would be

interesting to see Amazon results, they are making a huge push into

markets like China. Can they make much of a dent when you have got

hugely established competitors such as Alibaba? Yes, Alibaba have about

50% of the market in China, then you have Amazon trying to move it. I

think they should really leave China alone, it is too big of a battle for

that. I think they should focus on India where they have a much better

chance, where they are more role less neck and neck. -- more

or less. We also have the latest global economic forecast. Attention

will be on what IMF says about the Chinese economy and any possible

effect on the UK economy because of Brexit talks. The US website WebMD

is reportedly being sold to a private equity company. The company

is estimated to be worth more than $2 billion. According to Reuters,

negotiations are being made for an all-cash deal. The company

purchasing will add it to their portfolio. A driver death linked to

Takata is being investigated. It is the 18th that had he recorded

worldwide related to auto parts made by the automaker. More than 2

million cars have been targeted in a recall in Australia since 2009. The

Japanese company filed for bankruptcy protection last month. It

should be a smooth commute for Japanese workers this morning. The

24th of July has been designated the start of the Olympic and Paralympic

day of telly work, encouraging people to work from home ahead of

the games. It proved to be successful in the 2012 Olympics. --

tele-work. The world's leading oil producers are meeting in Russia.

Ministers from the OPEC countries, as well of other oil producers, are

going to be in St Petersburg discussing plans they put in place

to deal with the glut in world oil supplies. We came up with a plan to

curb production and stock prices from falling, but that has not been

working. UC prices trading below the $50 mark. Earlier, I asked the chief

investment officer in Sydney what impact non- OPEC members will have

in production. It is going to be a very interesting meeting. The

markets are saying that the oil cut is not working, markets are down 12%

-- non-OPEC. I don't think they are going to come up with much, but I

think the key development will be whether Libya and Nigeria actually

join part of the supply cut. At the moment, they are being excluded from

its. That's right. Even if they do, with an agreement, how much of that

would be symbolic? We talk about some non-compliance by nonmembers,

how can they possibly stick to the cuts they propose? -- Cirque du

Soleil. The interesting thing is the compliance issue. -- come up with.

All the acting outside, people are going to really question what OPEC

is all about. At the end of the day, I think it is going to be quite

crucial. Oil prices will come under increasing pressure if they don't

get what they want. Now, Cirque du Soleil is looking outside the big

top in a bid to diversify. It has approached the US company that owns

the Blue Man Group. We find out what's behind it.

Cirque du Soleil is putting the spotlight on this Chinese city,

where they planning a permanent show. We asked why they are doing

this. We see China as being the next market where Cirque du Soleil can

really establish themselves in a very strong way. In announcing this

tour, they have got the right shows to enter the Chinese market for the

next 14 months. What are some of the difficulties of going into such a

tightly controlled market? Cartel in each with marketing is to make the

Chinese understand what Cirque du Soleil is all about. We're not a

circus, we are dance, music, cinematography, we a different kind

of show. We will put in a lot of effort to make sure the Chinese

understand that. When Cirque du Soleil acquired Blue Man Group, you

said it would broaden your horizons? What did you mean by that? Now with

Cirque du -- Blue Man Group, we see huge potential. That is how my life

has changed since last week. Now when I am meeting potential

partners, I not only offer the Cirque du Soleil shows, I am now

selling Blue Man Group as well. One of the oldest circus acts, the

swinging brothers, had to shut down after almost 150 years. Is that

something you fear could happen to you? The challenge we have is to

remain the leader, but rain on the edge of the time. We want to bring

new ideas, new technology is going to play a major role in our future.

3-D technology, virtual reality. We are investing a lot in research and

development. It is our challenge to remain relevant to the public. So

far, it's working very well for us. Time for a look at the markets

before we go. Some of the Asian markets have opened. Australia's all

ordinaries are already down, this is due to the falls in oil prices on

Friday. That is taking a real hit on commodity stocks. A lot of

nervousness ahead of the Federal reserve meeting later this weekend.

And that's it for this edition of Asia Business Report.

President Duterte will later deliver a second state of the nation address

to a joint session of Congress in the Philippines.