10/06/2016 Asia Business Report

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

??NEWELEMENT What will renewed worries about the state of the

global economy mean for investor sentiment for the remainder of the

year? And China reveals a device with an additional option. Will this

help to get more sales? Good morning, Asia, hello world.

Glad you could join us for this Friday edition of Asia Business

Report, I am Rico Hizon. We are seeing a weak start for markets

across Asia at the end of the trading week, before the weekend,

this follows a down day on Wall Street overnight. Earlier this week

the World Bank lowered its global growth forecast and that has renewed

worries among investors. We also have a slide in oil prices

overnight, also waiting on US energy stocks. Japan's Nikkei is down by

about 74 points, that is about 0.4%. The all ordinaries also in negative

territory. So what is likely to be the tone for the markets for the

second half of the year? Let get some direction from Michael

McCarthy, joining us from Sydney. Thank you so much for joining us,

Michael. First of all, if you take a look at the Asian market indices

there is a lot of unevenness in the trends. Japan is up, Australia is

up, but Hong Kong is down. The Philippines is in positive

territory. So there is a lot of volatility in the first half. Is

this likely to continue from the second half of the year? That seems

very likely, acrid that volatility is being caused by differing

standards around the globe. -- that seems very likely, Rico. Those

crossflow is in markets mean that the volatility we saw particularly

in the first quarter of this year is likely to be repeated again as

investors and sentiment respond to those various central bank moves.

This volatility is very good for traders like yourself and your

colleagues behind you but a lot of a knees for medium and long-term

investors. That's right, Rico volatility is the traders but was

friend but it can spook investors and cause concerns. It is because of

the heightened risks which occur in volatile markets, there can be more

rewards. Those investors who can steal themselves to invest through

the volatility can do very well in markets moving as rapidly as the

markets we are seeing today -- steel themselves. Apart from global

economic growth and the potential rate hike from the US Federal

Reserve over the next few months, what other factors should investors

be watching out for the second half? Quite clearly out of Europe you have

the potential for the British to vote to leave the European Union,

and while that is not a likely scenario it is a possibility and a

risk for markets and the ongoing watch that we have in the

Asia-Pacific region is on China and its growth prospects. We will get

another read early next week on industrial production and retail

sales and the demand we saw coming through on imports in the recent

trade data gives us some reasons to be optimistic about the potential

for retail sales and possibly even industrial production to surprise on

the upside. That of course would be a real support for risk assets in

the region and around the globe. Given this current market landscape,

Michael, what are you telling investors and clients? How should

they manage their money, briefly? Stay active and use the derivatives.

The moment that tools available are important for investors who can do

the hard work, to understand how they can do well in the current

market. Michael McCarthy, joining us from the Sydney trading floor, thank

you for your views. Honda is recalling 784,000 vehicles in Japan

due to faulty airbag inflated as forefront passenger seats. --

inflators. The faulty inflators have been responsible for at least 11

fatalities worldwide and more than 100 injuries. Click for food. Amazon

has launched a full online supermarket service in the UK,

covering areas in central and East London. The service will be expanded

to other areas but the company has not set a specific date for the

rollout. The supermarket service has been running in the US since 2007. A

French court has imposed a $900,000 fine on the right hailing

application Uber for running an illegal taxi service, Uber POP, for

non- professional drivers. It also slapped fines on two executives. The

case is the first of its kind in Europe. A spokesman says the company

will appeal against the court ruling. Motorola has announced a new

telephone line up that lets users snap on optional hardware. The

Chinese device maker slipped to number six among the world's top

smartphone makers earlier this year but they are hoping their new model

will be boosting their sales. A senior executive explained the idea

to our technology reporter. You are from Motorola and your big

announcement has been this phone here. Yes, this is the Moto Z, 5.2

millimetres thin, and the Moto Z Force, available in the US. The

thing we are most excited about besides these flexible phones is the

16 pins on the back which allow you to extend the capability of the

phone. Additional sensors and capabilities. What I brought here

today is a sound booster which attaches to the back like this and

snaps on, it becomes part of the device. What I was showing earlier,

you start playing music, you can hear it from the front speakers. It

is fairly quiet right now. Once you attach the speakers you can

definitely hear it. Quite a difference. It has a nice little

kickstand so you can... OK, so obviously there is plenty of

Bluetooth speakers on the market. I have one in my kitchen at home. Why

would I go to the bother of getting this phone to do that? Dust like the

best camera is one that is always with you, the best loud speakers are

the ones that are with you -- just like. Fitting in your pocket is

fantastic. Secondly we have this projector. I still have Google Play

music on here but let's start The Project. You can see it on the wall.

It is a little bright and I am projecting on a projection, but you

can see that everything we do here is high speed. And so these added

accessories, how much would someone expect to pay to get the projector

or the speakers, what is the type of price? We are not talking about

prices on the modifications yet. Well, the luxury goods market has

been through a boom but now we are seeing a slowdown in Asia and in

parts of Europe. That has not stopped many of the big names

continuing to expand their business, opening new and costly stores. The

chief executive of the company was in London to open their new

boutique. If you examine the history, we had some passage and

flowing down in 2008 and 2009, but luxury for the big houses, the big

names, have been reborn. From time to time it is flat, because you know

what happened in Paris, for instance. Then you have the problems

with Hong Kong, the Chinese market is still doing well domestically.

But tourist are paying less. -- tourists. It is not the kind of

gross we have in the last years, but I am confident with the luxury

sector in the medium and long-term. You mentioned the challenge of store

openings, during your tenure Dior has opened 200 stores globally. That

is interesting because many of your competitors these days are choosing

not to invest in the overheads related to physical stores, instead

choosing to invest in the e-commerce site of their business. Why are you

focusing on the stores themselves? When you buy perfume, when you come

ready to order, and the type of ready to order we sell, you need

advice, you need fitting. You may come with a boyfriend, it may come

with your husband, you may come with your daughter. You may come alone,

but you need to communicate. It is not just buying a jacket. It is

about continuing the dream. And that was Dior's chief executive speaking

to the BBC's Alice back staff. We are talking about the Asian markets,

being in negative territory -- Alice Baxter. China's slowing growth, the

Brexit. The markets are in broad decline in commodity and stock

prices in major world markets, lifting the Japanese yen against the

US dollar. It is always a safe haven currency during times of uncertainty

and after reaching an 11 month peak, oil prices are taking a breather as

you can see on your screens. Light crude, 50.47, Brent crude, 51.8

five. Thank you for investing your time with us. I am Rico Hizon.

Goodbye for now. The top stories this hour:

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