29/09/2014 Asia Business Report

at the general election is a vote for labour's Ed Miliband. Let's find

out what is happening in the business world, with Asia Business

Report. `` Labour. Police crack down on protesters in

Hong Kong. Its stock market falls, and several banks suspend

operations. Rockstar welcome for India's PM, but will that translate

to business deals? Welcome to Asia Business Report.

Hong Kong traders are bracing for a sell`off this Monday, with markets

already lower. Any are making plans to work outside the financial

district. That is after the biggest police crackdown in the city since

it was returned to Chinese rule. Police used tear gas to break up the

demonstrations, after protesters locked traffic in and around the

central business district. It is home to the world's fifth`largest

stock market. 29 branches of 17 banks have suspended operations

today. Let's have a look at the markets, they have been open for

about an hour, and they have fallen to a two`month low, sinking well

over 1%. That is following the weekend unrest, as you can see.

over 1%. That is following the weekend unrest, as you can The Hang

Seng is down considerably over 500 points. The closure of some of the

city's most busy roads lead to widespread chaos. Some bank branches

are shut, as our schools. That is not the case with all the markets,

because Japan's Nikkei is higher, mainly because it is aided by the

weakness of the yen. That is boosting the export sector,

Australian shares being hit by falls in iron ore prices. Mark Konan is

the chief executive of Cathay combing asset management in Hong

Kong. He explains how the violence has affected the city. This is a

question of access to offices and public transport, and that is where

the disruption is most heavily felt this morning. A number of train

stations have been extremely congested, as access to those has

been restricted. A number of bus services servicing the key areas on

the island, the business district is, have been rerouted, which is

made life more difficult for those trying to get to work. Schools in

the central area on the island as well have been closed, which did

ease traffic this morning. As you say, tourist arrivals could be

heard. This comes at a time anyway with the clampdown on conspicuous

consumption in China, which is affecting the retail industry in

Hong Kong will broadly. Very quickly, do you think all of this

will be a short`term impact, or are they concerned it could: longer?

Especially as there is no sign of China or the Hong Kong government

giving in? It started off this time as a student protest, and it has

been taken on by the occupier central movement. `` occupier

central. The stand`off has become a little bit out of control, but

whether this leads into a further stand`off where it extends in terms

of further progress in the central business district, I think it's

largely rest in the reaction we see from the leadership here, and what

reaction we are going to get from Beijing. Given it is a short week,

things could get difficult in and around the public holiday. The

Indian PM, Narendra Modi, has been given a welcome normally reserved

for rock stars on his visit to the US. His appearance at Madison Square

Garden on Sunday sold out. It is a trip focused on boosting trade, and

Narendra Modi is expected to hold meetings with leaders from several

Fortune 500 companies, including Pepsi Cola, Boeing and Google. Our

business correspond it asked the head of the US business alliance if

he can deliver. I think his track record is very good, which is why he

got elected with such a mandate. The difference is this mandate is that

because of the coalition government, he has a clear mandate. With that he

can get things done. The odds are that he will get things done. Is

this visit hitting the reset button? I think it is more than hitting the

reset button. For a person who is persona non grata until about a year

ago, he has now been posted for lunch by the vice president and

Secretary of State, he is making the defence secretary and being hosted

by the Congressional organisation, I think that button has been hit very

hard. Bank in Japan is in talks to acquire DreamWorks, the animation

studio behind the movies Schreck and Madagascar. It is set to be worth

$3.4 million. It would be the second Japanese finance company to buy a

Hollywood studio. China's e`commerce giant, Ali Baba, has bought a 50%

stake in a Chinese technology company. It is a firm's first big

investment since his record`breaking share listing in New York. The

collapse of Indian carrier Kingfisher airlines was an

embarrassment for the aviation industry in India, and the

businessman behind it. Now, a bank has declared him a wilful default

over debts that he racked up while he had the airline.

At the height of his success, veejay Mallya was known as the king of The

Times, and there were plenty of those. A one`time billionaire,

thanks to his success in the alcohol industry, his flamboyant lifestyle

led him to be referred to as the Richard Branson of India. But since

Kingfisher was grounded due to massive losses, is business prospect

of change dramatically. This was the headquarters of Kingfisher Airlines,

in the heart of Mumbai. It is close to the airport, and one of many

properties that were taken over by the bank after the company failed to

repay its debts. It owes nearly $1.2 billion. Now, the lenders are trying

to claw back some of that money by selling these assets. Earlier this

month, one of those lenders declared him and his airline a wilful

default. A term for those believed to have deliberately not met their

payments, even though they were able to pay. Many more banks are expected

to follow suit with the same declaration. That is damaging. Once

tagged as a wilful default, people can be barred from accessing Indian

financial markets to raise funds, and are kept out of influential

corporate positions. Kingfisher Airlines, which has gone to the

courts to fight these charges, has said...

For now, his options are limited. He has to figure out a way to pay gap,

or convince the bank that he genuinely does not have funds to

clear his debts. Either way, the making good times now faces some

tough debts instead. For the first time, the Xbox will go

on sale in China. This is after a lifting of a government ban on on

game consoles. All years, Microsoft, Sony and Nintendo wanted access to

the Chinese market, but as our Beijing correspondent reports, they

will now face tough competition. They are old school and still going

strong. But with China now lifting its ban on and gaming consoles, some

warn that these arcade could soon become a thing of the past. I'm

going to let you into a little secret. Despite the ban, millions of

consoles have already been sold in China. This man bought his Xbox on

the black market. Like many, he is a fan of violent games, but he says

that if these games, as seems likely, are banned by the

government, then an official sales will start struggle to take off.

TRANSLATION: I think players would be willing to buy the official Xbox,

as long as they can get the good games. But if there are

restrictions, people won't pay hundreds of dollars to play boring

games. Because of rampant piracy, china's games industry develops

differently from the West. Videogame companies, like this one in Beijing,

aim to first hooked the player in hope of future profits. TRANSLATION:

Chinese games had the runway of making money. Players download them

for free, we give the best thing they can offer, and if they like the

game they can pay for extra items. All the games at this company are

actually being developed for mobile phones. That is because China sees

the smart phone and not the console is the future of gaming here.

Are very quick recap of the markets. Our top line about the protests in

Hong Kong, that has impacted the market, which is down to a 2.5 month

low. Welcome back. A reminder of the

BBC's top stories this power. Hong Kong protests are escalating,

thousands continuing to defy police and authorities. The Islamic State

advance into Iraq is now less than ten kilometres to from