17/08/2017 Asia Business Report

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

A weaker Philippines currency is taking its toll on the economy, how

will it impact president Rodrigo Duterte Rodrigo Duterte

infrastructure plans. Canada, the US and Mexico rehashing the North

American free-trade agreement, 23 years after it went into effect.

This is Newsday. Thank you for joining us. The Philippines will be

posting growth figures for the second quarter and it is one of the

fastest-growing economies in Asia but it has a weakening currency and

concerns over a growing account deficit. Rodrigo Duterte on a

campaign to increase infrastructure spending but he needs funds to do

this. We match up with Carlos Dominguez, the Finance Secretary. We

think it is a very important neighbour and it is important for us

to test the market in China so we are coming up to a small issue of

$200 million and we just want to sit how well it will be received. -- to

see. You are getting these at a time when you're trying to fight your

claims against China in the South China Sea. Isn't there a risk you

will give up on these claims in the China Sea? Absolutely not. We have

won our case in the arbitration Court but, as president Rodrigo

Duterte Rodrigo said, we will take these issues up sometime in the

Administration but at this point it is important to build confidence in

each other. Before we tackle the difficult issues that are posed in

the South China Sea. We are not abandoning any claims but we think,

the president thinks, this is time to be more friendly rather than

contentious. China is growth is slowing down and the ruck and turns

of a debt bubble. Many countries who have taken loans from there are now

worried of being in debt to China. Is the Philippines in this position?

We think Chinese loans can be beneficial to us, particularly if we

negotiate them in a clever man. , using our national interest is our

prime measure as to whether we take the loan or not. Nobody is forcing

them down our throat and we will look to our interests first.

Currently it the biggest partner for the Philippines is the US. Do you

see that changing? Our business with the US will continue but probably it

will not be as big a part of our economy is in the past. It isn't

showing over the years... We used to have only American cars, in the 60s,

then suddenly a Japanese cars came in. Now we are seeing Chinese cars

coming in, Chinese motorcycles. I mean, we have to move with the time.

The Finance Secretary for the Philippines Carlos Dominguez. The

third biggest economy is showing signs it is bouncing back. Numbers

are just released, exports rising more than 13% in July compared to a

year ago. Imports were also up more than 16%. The Japanese economy is on

track to grow at its fastest pace in more than two years. Analysts

looking at smart phone games, payment and online advertisers. The

most valuable company listed in Asia is running away with success. But on

more than $2.7 billion, up 70% from a year ago. Cathay Pacific reported

its worst half-year loss in at least two decades and says it does not

expect to see an improvement for the remainder of the year. It posted a

loss and is struggling to retain customers. After tumultuous couple

of days, Donald Trump announced he will be spent to business councils

after corporate chief executives quit over his remarks are blaming

violence in Virginia last week not only on white nationalists but also

protesters opposing them. The president promised to cut taxes and

regulations to help grow US businesses. The start of talks to we

negotiate Nafta. We was introduced 23 years ago. -- it was. Donald

Trump called it the worst deal ever and vowed to rip it up or fix it.

Donald Trump blames the North American free trade agreement, a

pact between the US, Canada and Mexico the sending jobs south of the

border. Companies taking advantage of cheaper wages in Mexico. It is a

sentiment shared by Robert Lighthouse who said that at the

start of talks, Nafta had failed many Americans. Aha you minimum wage

in Mexico is to be looked at. But not so fast according to some. It is

difficult to change wages. Wages are part of the market and we want to

keep them that way so it is important that it is a free and you

cannot artificially limit or enclose restrictions or the other way around

and Labour. Another potential source of friction is any attempt to

rewrite the mechanisms through which disputes are resolved, chapter 19,

the Canadians said this could be a deal breaker. The chief negotiator

told me why. It is fundamental because of the commerce Department

here takes a lot of Asia's and countervailing duties which are

sometimes are unjust and unfounded and through that mechanism, which is

much faster than the World Trade Organization mechanism, we win and

these decisions are reversed so they are fundamental. The Canadians came

in defending Nafta and striking a broadly optimistic tone, contrast

that to the US which took a tougher tone. It is a reminder of how

politically difficult it is to get trade deals done when the benefits

can be brought but the pain caused local. Expectations are high for

Alibaba current numbers released later today. China's consumer demand

by shopping online has made Alibaba the dominant player in that sector

with companies. A brick and mortar present for Alibaba. Also cloud

services. Finance and logistics. Firstly, if you look at the

business, there has been very popular and it is going to continue

to grow in these quarter. E-commerce, online retail has gone

up for China in June and he continues to be significant. Alibaba

has faced a backlash, particularly from luxury retailers, that they

have been selling fake goods. Will this continue to have a stigma and

hurt its earnings? I think it has been resolved when it went into an

agreement. I believe that in China this is not affected its sales or

reputation. Are they still selling counterfeit goods and it has not

been regulated? They are taking steps to prevent this. When someone

lodges a complain, they respond and do something about it. They are

taking steps to address this. Alibaba's earnings will be released

very soon. Looking at the Asian market... It is a mixed Baga. --

bag. Terminal in Washington and US Fed meeting is showing worries about

inflation. In the US market... In positive territory. Thank you so

much for investing your time with us. Bye for now.