30/09/2014 Asia Business Report

the government. Now on BBC News, all the latest

business news live from Singapore. Street protest in Hong Kong rattle

global markets from Asia to Wall Street, stocks fall. And after the

primaries to India meets Fortune 500 executives in the US, we look at

success of his US trip so far. Thank you for joining us. I am Rico Hizon.

Investors are bracing for more volatility when the stock market

reopens at it on long in a fume minutes time. `` Hong Kong. ``

fewer. Protesters are defying calls to go home. We will see initial

numbers soon, and wait to see if the downturn continues. On Monday, the

benchmark index closed lower by 2% and the Hong Kong dollar fell to a

six`month low against the US dollar. Earlier I spoke to a media come in

direct about the long`term impact on the economy of Hong Kong. If the

protest lasts throughout this week, then there is a resolution, it will

be temporary. People are working, some retell shops are suffering. If

this lasts four a week or ten days, the damage will be content. ``

retail. This is all about sustainability and the growing

crowds in the central business shirt. Protests like this have had a

major impact on the tourism, such as in Bangkok. A lot of the tourists in

Hong Kong from mainland China. `` district. This week was the

holidays, that has been disrupted. There are some operators that will

not be too happy right now. But the broader test use, will middle`class

people who have come out in force, will they come out tomorrow and the

public holiday? Will they support the students and the activist, or

will it remain a 1`dimensional show of force? Apart from the issue of

democracy, there is a lot of unhappiness in Hong Kong over high

housing prices. There is also a growing income gap, and an influx of

mainland visitors. These are both seen as different aspects of one

country, two systems, not working out for a lot of people of Hong

Kong. That is fuelling a lot of the unrest. The issue of mainland

visitors, people feel they are being Democrat lead overwhelmed. `` to

critically. There is investment nudges from the mainland, but all

over the place. It is squeezing out the middle class. China's bank

regulator has reportedly approved the launch of two privately owned

commercial banks, in an attempt to increase competition in the state

dominated ranking industry. One of those to benefit is an affiliate of

Ali Baba, which has a licence to open a bank in the east. High end

what company Ta Heaur has lowered its profit outlook. Hong Kong

represents about 2% of the luxury watch sales for the coming. Italian

authorities are investigating executives, stemming from the ten

year they were bathed in a suburb. It is not the first time authorities

have targeted high profile brands, last year. She and got one came on

this could be as well. `` Luxembourg. `` i. The leaders of the

two largest democracies in the world are having dinner together before me

doing in the oval office. Primers on the red a deep will meet Barack

Obama. `` PM Virendra Modi. The response has been more than

excellent, and I think there will be a lot of results coming from

investment into India. PM Modi, before he left India, made an

announcement to create more jobs in his country. He has won the support

of some US businessmen but others are questioning Mr Modi's reformist

credentials, particularly on the issue of global trade. They are

saying India is playing hardball that is one aspect of it. But the

country is making a lot of changes. The speed of action is greater than

before. 27 processors have been brought down to four or five. On the

bigger projects he has taken personal control and brought in the

right people to push his agenda through where investment is

concerned. A lot of US businesses are complaining about India's unfair

trade axis, particularly raising tariffs and imposing new testing

requirements on medication rucks. `` to medication products. He is

tackling big problem, he is new in the office. He has a ready visited

Japan and China. This has had a significant impact on the US as.

There is good strategic direction by him visiting in America. This is the

first time an Indian leader has had overwhelming support, and President

of bomber cannot ignore this. `` of bomber. And there has going to be

some change on is a travel between the two countries? None yes he has

said he will try and make it easier. But new data from Japan reveals

household lending is falling in Japan. It represents a drop for a

fifth straight month since the sales tax rose in April. South Korea's

industrial output is down 3.8% in August, the worst monthly fall since

the 2008 global financial crisis. Thailand is due to reveal key

economic data that will probably confirm that industrial performers

has fallen for the 17th of month in a row. It is further proof that the

military gender of Thailand faces an uphill battle. `` i.

The economy has continued to struggle since the Thai military

took over in May. A further fall is predicted. Trouble in the carmaking

industry is helping to drive the decline, it has been selling since

last year following the scrapping of a state subsidy for people buying

new cars. Some economists had forecast that the economy may

improve under the military. But so far recovery is slower than

expected. Tourism accounts for around 10% of the Thai economy, and

it has taken a big hit after many months of political unrest. Across

the world market, there is only one country that has not grown year on

year. That is Thailand. Notwithstanding what I've just said,

by Christmas Thailand will be back where it was before. Are not

everyone is optimistic. Exports account for more than 60% of the GDP

of Thailand, but they fell 7.4% in August, the biggest percentage drop

since the floods of 2011. Last week the central bank abandoned the

forecast of 3% export growth for this you, saying that it our expects

no increase. A quick recap of the markets in the

Asia`Pacific. Hong Kong has just reopened.

Investor support remains weak with many buyers still on the sidelines.

Thank you for your time.