0:00:00 > 0:00:03keep on winning? We look ahead. In his first TV interview since taking
0:00:03 > 0:00:10over as CEO, the boss of India's Jet Airways talks about what its new
0:00:10 > 0:00:19European alliance means. Good morning, Asia. Hello, world. This is
0:00:19 > 0:00:28the start of a brand-new week. We kick up the final month of 2017 and
0:00:28 > 0:00:34here is the calendar for the week ahead. Lots of rates decisions with
0:00:34 > 0:00:39Australia's Central Bank deciding on the cost of borrowing on Tuesday,
0:00:39 > 0:00:44currently at 1.5%. This will be followed by another key meeting from
0:00:44 > 0:00:50India's Reserve Bank on Wednesday. Also, finding out more about
0:00:50 > 0:00:54Australia's economic performance in the middle of the week and rounding
0:00:54 > 0:00:58off, we have trade data from the world's second largest economy on
0:00:58 > 0:01:05the eighth of December. Earlier, I spoke with economist Peter McMahon
0:01:05 > 0:01:11and asked if rates will remain the same. -- Peter McGuire.Record lows
0:01:11 > 0:01:17to continue because we have seen wage growth decline. We are not eat
0:01:17 > 0:01:23-- not saying it is a robust. House prices on the east coast. The 1.5%
0:01:23 > 0:01:30will remain.But the Australian economy continues to grow.Yes, it
0:01:30 > 0:01:35does and we look at that inflation number around the 3% annualised. He
0:01:35 > 0:01:40saw the quarter on quarter about 0.7 for the third quarter but overall,
0:01:40 > 0:01:46very high household debt because, quite simply, at house pricing. If
0:01:46 > 0:01:50you raise interest rates, that will take more out of the wallet and the
0:01:50 > 0:01:54purse which will constrain growth and that is the great challenge the
0:01:54 > 0:01:59Reserve Bank faces.India's Central Bank meeting on monetary policy, how
0:01:59 > 0:02:06are they likely to go?They will keep interest rates where they are.
0:02:06 > 0:02:11You have the GDP running at 7%. They have got a couple of issues over
0:02:11 > 0:02:16there, the de- monetisation and naturally their introduction of a
0:02:16 > 0:02:21GST so very, very large issues that have come to the play over the last
0:02:21 > 0:02:249- 12 months and moving forward, they will keep rates where they are.
0:02:24 > 0:02:30You might even see a rate rise sometime in 2018 but the jury is out
0:02:30 > 0:02:35at the moment. They will probably stay where they are.The outlook is
0:02:35 > 0:02:40for Australia and India to keep monetary policy on old but South
0:02:40 > 0:02:43Korea raised the benchmark interest rate. Could this put pressure on
0:02:43 > 0:02:48regional central banks if the Federal Reserve tightens again this
0:02:48 > 0:02:53December?Yes, it could and I take that on board. That will underpin
0:02:53 > 0:02:58the US dollar's strength, probably be better for the likes of Australia
0:02:58 > 0:03:04and India though the Indian rupee, I was there last week, it seems to be
0:03:04 > 0:03:07range bound compared to the Australian dollar. I take all those
0:03:07 > 0:03:11components into play and at present, I would have to say that both
0:03:11 > 0:03:19central banks will hold. South Korea is a little bit different, of
0:03:19 > 0:03:24course.China's trade report. The trade imbalance between China and
0:03:24 > 0:03:31the US.They could well do. Overall, a attraction. They are receptive to
0:03:31 > 0:03:40talks. Growth numbers in turn, a roundabout that 7.2 number. Overall,
0:03:40 > 0:03:44the Trump administration is feeling as though it is getting some
0:03:44 > 0:03:50movement and that could be a good sign for him.The White House says
0:03:50 > 0:03:54it would be willing to accept a slightly higher corporate tax rate
0:03:54 > 0:04:01if it means getting a final bill through Congress. The Senate
0:04:01 > 0:04:05versions of the bill sets the rate at 20% but the right -- the White
0:04:05 > 0:04:10House Budget chief said the final figure could be 22% once a final
0:04:10 > 0:04:17bill goes through. So what effect might a 20% corporate tax rate have?
0:04:17 > 0:04:21I'm joined by Timothy McDonald. How does it stack up against the Asian
0:04:21 > 0:04:28tax rates?It's a bit higher and the difference between 20 and 22%
0:04:28 > 0:04:32doesn't sound like all that much. If you went to a restaurant, 2% would
0:04:32 > 0:04:37not cover your appetisers but when you have billions on your balance
0:04:37 > 0:04:44sheets, it starts to be a bit different. It still would be at a
0:04:44 > 0:04:47higher rate than quite a few Asian economies including here in
0:04:47 > 0:05:00Singapore. Taiwan is about 17%. 16.5%. Some of these countries have
0:05:00 > 0:05:07used low taxes to promote economic growth. That is what they are hoping
0:05:07 > 0:05:13to do with the US. The question is where that money goes in the
0:05:13 > 0:05:16companies have a bit of extra money. Do they invested into long-term
0:05:16 > 0:05:19projects or return it to shareholders? That's something we'll
0:05:19 > 0:05:26have to watch and wait and see. There is supposed to be this, Donald
0:05:26 > 0:05:30Trump is host -- hoping there will be a rush of money back into the US
0:05:30 > 0:05:36economy. Oxfam estimates there is something like $1.3 trillion of
0:05:36 > 0:05:40money from major US corporations stashed away overseas and how much
0:05:40 > 0:05:45of that returns home is really anybody's guess, considering the
0:05:45 > 0:05:48whole region -- the whole reason it's over in the first place, they
0:05:48 > 0:05:55pay very tax -- very little tax.On the campaign trail, Donald Trump was
0:05:55 > 0:06:00pushing for more like 15%. Thank you so much for the update, Timothy
0:06:00 > 0:06:07McDonald. In other business news, British Prime Minister Theresa May
0:06:07 > 0:06:11is due to travel to Brussels on Monday for talks with European
0:06:11 > 0:06:19Commission President Jean-Claude Juncker. The focus has so far been
0:06:19 > 0:06:27on citizens rights but also the amount of money the UK will pay. The
0:06:27 > 0:06:30EU will talk about trade when sufficient progress has been made on
0:06:30 > 0:06:37these subjects and it's due to decide whether this happens at a
0:06:37 > 0:06:44summit on the 14th and 15th of December. A commercial deal
0:06:44 > 0:06:48involving Jet Airways aimed at improving collectivity with Europe
0:06:48 > 0:06:54and this is happening while India is set to become the third biggest
0:06:54 > 0:07:00aviation market. We sat down with the CEO of Jet Airways, Vinay Dube
0:07:00 > 0:07:05and asked what the deal brings to this carrier.It allows us to offer
0:07:05 > 0:07:10106 or more destinations in Europe, access to 200 in North America and
0:07:10 > 0:07:15as consumers start leading towards a combination of debt and KLM, who
0:07:15 > 0:07:27knows. More passengers are flying in India than they were before.We put
0:07:27 > 0:07:36in order for 75 aircraft. We will buy an extra 75 narrowbody aircraft.
0:07:36 > 0:07:41Some of them will be growth. Overall, we hope to grow the
0:07:41 > 0:07:47category between eight and 10% over the next five years.Jet Airways
0:07:47 > 0:07:50performance over the last two quarters has actually gone down. Why
0:07:50 > 0:07:55is it not able to capitalise on this opportunity and make more money?We
0:07:55 > 0:08:00have put out nine profitable quarters. If you look at the last
0:08:00 > 0:08:04two quarters in particular, certainly fuel has gone up, despite
0:08:04 > 0:08:10an increase in inflation. We've been able to reduce our unit costs. We
0:08:10 > 0:08:14believe this trend will continue over the course of the next 2.5
0:08:14 > 0:08:18years, putting us in a position to be able to capitalise on demand
0:08:18 > 0:08:23because you talk to mount -- talked about demand. And my view is that
0:08:23 > 0:08:29air travel demand is really going to grow over the next 20 years.The
0:08:29 > 0:08:35current aviation rules allow foreign carriers to invest up to 49% in
0:08:35 > 0:08:45domestic carriers. But there is it. There are limitations on ownership
0:08:45 > 0:08:49and foreign ownership in particular is not unique to India. In most
0:08:49 > 0:08:55other Western countries, certainly the Far East, the restrictions are
0:08:55 > 0:09:00even more. What you are describing is not something I look at as an
0:09:00 > 0:09:08immediate reaction.The Indian government is planning to privatise
0:09:08 > 0:09:12Air India and Jet Airways has been interested in buying a stake.It's
0:09:12 > 0:09:17too early for us to say but something that is even more
0:09:17 > 0:09:24important, no matter how this plays out, when you take out a subsidised
0:09:24 > 0:09:28player from any market, whether it is aviation or steel or
0:09:28 > 0:09:34manufacturing or retail, it's good, in my view for consumers. That is
0:09:34 > 0:09:40what we look for.Vinay Dube, the CEO of Jet Airways there are. Let us
0:09:40 > 0:09:50look at the markets. Asia is in negative territory. We also have the
0:09:50 > 0:09:56All Ordinaries Index a fraction lower. This is after US equities
0:09:56 > 0:10:03finished the week on a tumultuous note. Thank you so much for
0:10:03 > 0:10:04investing your time at