14/04/2014 Asia Business Report


14/04/2014

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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to give patients extended operating hours. Now on BBC News all the

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latest business news live from Singapore.

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Asian markets are falling, after big losses in New York. We look ahead to

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economic data which could send stocks tumbling again this week.

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And baby steps for new businesses in Sri Lanka's former war zone. Hello

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and welcome to this Monday edition of Asia Business Report. We start

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with a look at the markets. Asian shares have started the week lower.

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They are taking their cues from Wall Street. We saw Wall Street see a

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sell`off in technology shares. Indicate stock average has climbed

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just a tad after opening lower. Last week, it saw its biggest weekly fall

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since the March 2011 tsunami. And nuclear disaster. In the US, the

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NASDAQ closed lower. We have a series of big market moving news is

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that could influence investors. This includes Chinese growth data for the

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first quarter of the year, due out on Wednesday. We are seeing more

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political uncertainty brought up by the situation in Ukraine. A market

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analyst is expecting volatility. The Chinese data has been pointing lower

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and missing estimates over the past six months, that is why it has set

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such a global total. Relative to where the growth rate has been in

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the past. We think it could come in at 7.5 which is slightly better than

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expected but still below the last quarter. I think any thing above 7.5

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will be a benefit for markets, particularly for Asian markets.

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Industries like Japan have been dragged down recently by Chinese

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data. So seven and half an upward would definitely be positive.

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China's biggest oil company has been linked to a contamination scare

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affecting the dripping water of 2.4 million people. The leak has been

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blamed on a pipeline owned by a subsidiary of China National

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petroleum Corporation. Let's go live to our corresponded in Beijing. On

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Friday, we saw panic seems, people rushing to stores, buying up bottled

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water. Is that sense of panic now over? Things have come down a bit to

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a certain degree. The government announced that the water was now

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safe to drink. However, we are hearing reports that many people

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simply aren't believing that stop they are choosing to continue

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drinking bottled water. Many people are very upset with the government.

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They have heard reports the government took 18 hours to report

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there was a problem with the dripping water. This is on top of

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reports that back in March, people were smelling strange odours in the

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water. The government at the time said that water was still treatable

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but many people are questioning whether the water supply in the area

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is safe at all. The finger`pointing is safe at all. The finger`pointing

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now begins on who is to blame? It seems the government has already

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admitted that the leak is due to a leak in an oil transmission pipeline

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that is owned like China's largest oil and gas reducer and the player.

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That is the China National Petroleum organisation. Back in 2005, there

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was a similar problem, also linked to that company. When a chemical

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plant owned by the corporation had an explosion and led to water

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contamination. So this seems to be a continuing problem with this

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corporation. So far, when we look back to that incident, there don't

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seem to have been a slew of charges laid against the corporation in

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connection with that problem back in 2005. A big concern there for the

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people living there, thank you so much for that update from ageing.

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The $6 billion deal is one of China's biggest mining acquisitions

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in years. It underscores the Maylands continued demand for

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commodities in China's push for industrial growth. It is one of a

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large `` largest mines and is expected to churn out 450,000 tonnes

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of copper when production begins next year. Sharp is reportedly

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planning another public share offering to raise $2 billion in

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capital. Japan's largest display maker aims to launch the sale after

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a restructure aimed at convincing potential investors. The strategy

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will focus on cutting reduction cost is, as Sharp expands into the market

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for lower`priced smartphones. Their shares are the sharply lower

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today. The world must rapidly move away from carbon intensive fuels and

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it is to triple the energy it gets romp renewables to avoid dangerous

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levels of global warming as findings of scientists from the UN panel on

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climate change in the third part of its most comrades of study on global

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whining, the panel wanted late in cutting back rising greenhouse gases

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will limit the chances of reducing global turbojet increases. L'Oreal

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is undertaking a major overhaul of its operations in China. They pulled

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their Garnier label off the shelves off the shelves. I asked our

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correspondent why they seem to be struggling.

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Chinese women are trying to express more creativity and individualism.

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They do not want to buy the same brands as everyone else. You are

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starting to see the big luxury houses, cosmetic companies, they

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have too offer many different sub have too offer many different sub

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brands. You are no longer going to see everybody wanting to buy

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L'Oreal. So the smarter brands will have to do something like what Louis

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Vuitton are doing, where they have ten different brands to offer

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consumers. Politically, Sri Lanka is under fire

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from the international community over its human rights record. One of

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the government's responses is it is fostering economic development in

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the north, formerly a war zone. Our correspondent is looking at how a

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shopping centre is transforming the city.

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Much of the jaffa still lies in ruins at the result of years of

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neglect and dilapidation all of Bob Ludwig in the city was being fought

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over by the government and Tamil Tigers in the 1990s. Until recently,

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people would say that visiting Jaffna was like stepping back in

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time. But parts of the city are now changing. Irrevocably. Here in the

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town centre, its first ever traffic light has been brought into

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operation. Cargills, a popular chain has arrived. This brand in the city

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is the biggest in the whole of the island. Once you have stocked up on

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food, pop on Sri Lanka's only escalator. The mall is still small,

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but set to expand. There is also a food court. And a triple screen

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cinema. They say they have created 300 permanent jobs for young

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northerners and the economic benefits stretch beyond the town 's

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boundaries. We have a land 5000 farmers, we are reducing a

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proximally eight or ten times as day. Beyond retail, the town has a

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building boom. This is one of many new flats. Sri Lankan Tamils have

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flocked to buy them. Much of northern Sri Lanka is still

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suffering from the devastating consequences of civil war. But amid

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the greenery, economic change is afoot. Many see that is offering the

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seeds of hope for the wider region. Where are the best cities in the

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world to live and work? Five of the top ten emerging cities with the

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greatest potential now sit in south east Asia. In the next two decades,

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could places like Jakarta and Manila be competing with New York and

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Paris? Our correspondent explains for us the highlights of the

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company's research. For Asia at the interesting thing is

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you have four cities in the top ten. Tokyo, Hong Kong, which have always

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been there, and then Beijing breaking into the top ten, for the

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first time ever, and Singapore returning to the top ten after a two

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year absence. In addition, of the top ten cities

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and emerging cities, there are five from Asia. So Jakarta is at the top

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of the list of the countries, of the city is likely to challenge the

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established leaders. And then you have Manila, followed

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by Delhi, Kuala Lumpur. How does all this differ from the others out

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there? We had the world's costliest city, Singapore, that caused

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consternation here. So what is the purpose of a list like this? We

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don't look at single factors such as cost or single metric such as

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economics or business activities. We believe the list we have is

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well`balanced. We look at business activities, human capital,

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political, information exchange, as well as cultural experience.

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These are the things which make the city attractive for businesses and

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talent. This is how cities will compete with each other. How

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attractive we are for businesses to come to.

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Thanks for watching. You're watching BBC News. I'm Adnan

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Nawaz. Our top stories this hour. The UN Security Council is

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discussing the

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