:00:00. > :00:18.disappeared just over a month ago. Now on BBC News, all the latest
:00:19. > :00:21.business news live from Singapore. Hong Kong's umbrella revolution is
:00:22. > :00:25.set to swell. Retailers brace for a dip in national holiday sales.
:00:26. > :00:40.And, a pickup in business confidence among manufacturers in Japan.
:00:41. > :00:43.Thank you for joining us. Hong Kong's stock exchange is closed
:00:44. > :00:45.this Wednesday, perhaps a welcome break after two days of losses
:00:46. > :00:54.triggered by pro`democracy protest concerns. Speculation is growing
:00:55. > :01:04.over whether Beijing will impose economic pressure to put a lid on
:01:05. > :01:07.the protesters' campaign. For more about the response I spoke to Gavin
:01:08. > :01:12.Perry, a managing director in Hong Kong.
:01:13. > :01:14.Economic sanctions, they are one way, hypothetically, that the
:01:15. > :01:29.mainland could increase pressure on Hong Kong to get some movement to
:01:30. > :01:32.come to a negotiated settlement. There is a lot of talk that China
:01:33. > :01:41.could remove its 50% retail luxury tax, which would hurt the flood of
:01:42. > :01:44.tourists to the city. The last round of protests against anti`subversion
:01:45. > :01:54.legislation, that was one of the rumours that went around. That the
:01:55. > :01:57.arbitrage tourists, tourists in relation to the luxury tax on the
:01:58. > :02:01.mainland, was something that was tabled. Hypothetically, the mainland
:02:02. > :02:10.could look at decreasing that, which would stem the flow of tourism and
:02:11. > :02:12.retail purchases in Hong Kong. Any kind of economic pressure and
:02:13. > :02:21.sanctions could undermine Hong Kong's status as a global hub. And
:02:22. > :02:26.they each need each other. They have made a show that Hong Kong is the
:02:27. > :02:31.golden goose for them. One of the main aspects is the connect
:02:32. > :02:35.programme between economies. We have been concerned in Hong Kong of a
:02:36. > :02:41.growing probability of an international port in Shanghai. When
:02:42. > :02:46.they revamped the board in Shanghai, we assumed that would
:02:47. > :02:48.become the international bourse. With the Hong Kong stock exchange,
:02:49. > :02:55.China is putting Hong Kong forward effectively as the international
:02:56. > :03:00.Shanghai. That was Gavin Perry in Hong Kong.
:03:01. > :03:05.Mainland China begins trading between the yuan and the euro as it
:03:06. > :03:10.encourages the use of its currency. The euro will become the sixth major
:03:11. > :03:16.currency which can be exchanged directly in Shanghai.
:03:17. > :03:23.Our correspondent explains the significance of this development.
:03:24. > :03:25.This is another step to try to internationalise the Chinese
:03:26. > :03:32.currency, to make it more widely available outside China. It has
:03:33. > :03:38.deals with America, the UK, Australia and Japan, so the euro is
:03:39. > :03:42.an obvious partner. China is trying to make the yuan available through
:03:43. > :03:46.the people's bank of China through the European ECB. The Hong Kong
:03:47. > :03:49.dollar is at a six`month low against the greenback, could we eventually
:03:50. > :03:57.see the unpicking of the Hong Kong currency against the US dollar? I
:03:58. > :04:00.doubt it. Hong Kong has been through theese turmoils before. They are
:04:01. > :04:04.trying to break the linkage between the Hong Kong dollar and the US
:04:05. > :04:10.dollar. But Hong Kong is resilient. It will be able to maintain that no
:04:11. > :04:12.matter what. Business confidence among
:04:13. > :04:19.manufacturers in Japan has improved since. `` back for the first time in
:04:20. > :04:22.2/4. There has been a pickup in the three months till September.
:04:23. > :04:28.Sentiment worsened more than expected. A Japan expert and chief
:04:29. > :04:33.Asia economist at the bank of Singapore explains what we should
:04:34. > :04:37.take from these mixed numbers. On balance, it was quite poor. There
:04:38. > :04:42.was a small bounce in manufacturing. If you look at industrial
:04:43. > :04:46.production, that stalls. Confidence shouldn't improve. The drop in
:04:47. > :04:50.nonmanufacturing confidence told you that the rise in sales tax that we
:04:51. > :04:55.had a few back has hurt the economy more than people expected. As we can
:04:56. > :04:58.see, there is a double edged sword for the weakening Japanese yen
:04:59. > :05:01.against the US dollar. It is a benefit for exporters but not good
:05:02. > :05:13.news for small and medium`sized enterprises. Clearly, it squeezes
:05:14. > :05:21.margins for some people. In many ways a weaker yen means they have
:05:22. > :05:24.very few options. They have `` the yen pushing the lower, stimulating
:05:25. > :05:29.labour demand and hopefully at some point consumption, they are pinning
:05:30. > :05:37.their hopes on that I mention. In the second quarter we saw a
:05:38. > :05:39.contraction in the economy. Could we see a technical recession, meaning
:05:40. > :05:51.two consecutive quarters of falling economic data? You may see it. It
:05:52. > :06:00.isn't likely that the second quarter was so bad that you would expect a
:06:01. > :06:04.short term bounce. More worrying is the fact that indicators,. Exports
:06:05. > :06:09.and so on, are at lower levels than they were a year ago. That shows you
:06:10. > :06:16.how much the economy is installing. And where does the Bank of Japan go
:06:17. > :06:20.from here? How can they boost the economy for Shinzo Abe? How could
:06:21. > :06:22.they boost the Economy? They are in trouble. They have very little
:06:23. > :06:25.chance of hitting their 2% inflation target next year. When they revise
:06:26. > :06:29.the target in October, they will have to recognise the economy is off
:06:30. > :06:33.track, step up stimulus and perhaps move into negative interest rates.
:06:34. > :06:39.They need to try harder. Due to the weak Hong Kong report,
:06:40. > :06:44.the Japanese yen is now at 110 against the US dollar, a level not
:06:45. > :06:47.seen in more than six years. This is due to expectations that the central
:06:48. > :06:52.bank will ease monetary policy to jumpstart the economy.
:06:53. > :06:57.Moving onto it other news and Thailand's factory output fell in
:06:58. > :07:01.August, Keating by 2.7% compared with the same Year 1 year ago ``
:07:02. > :07:07.keeping. That is at a slower pace than the light, thanks to a drop in
:07:08. > :07:12.car production which is blamed on weaker domestic and overseas demand.
:07:13. > :07:18.E`commerce site eBay plans to split its payment system PayPal into a
:07:19. > :07:22.separate company. News of the initiative expected to be completed
:07:23. > :07:29.in the second half of 2015% of their shares soaring by 7% in US trade.
:07:30. > :07:33.Microsoft discloses the details of its next system, windows ten,
:07:34. > :07:39.skipping version nine. It will run on a range of devices from phones,
:07:40. > :07:44.tablets, PCs and Xbox games and consoles and will bring back a start
:07:45. > :07:50.menu which was removed from Windows 8. Hopes are high in India that a
:07:51. > :07:55.meeting between Narendra Modi and the President will bring significant
:07:56. > :07:58.returns for the economies. India is counting on US investors for big
:07:59. > :08:02.infrastructure projects and investors are keen to see Mr Modi
:08:03. > :08:11.cut red tape and combat corruption. This report from Washington.
:08:12. > :08:16.It has been a hugely successful trip for the Indian leader.
:08:17. > :08:18.New York was about showcasing brand India and brand Modi. Telling
:08:19. > :08:26.America that India business. In Washington, the effort
:08:27. > :08:30.was to underscore the common US and Indian values, and a striking up a
:08:31. > :08:35.chemistry. Security was tight around the White House, as the two leaders
:08:36. > :08:39.got down to business. Prime Minister Modi and President Obama sat
:08:40. > :08:41.side`by`side and talked on a list of issues, ranging from the Middle East
:08:42. > :08:50.to Ebola but the economy was central. Last night during our
:08:51. > :08:56.dinner we spent most of our time talking about the economy. We agreed
:08:57. > :08:59.that in both countries, one of our primary goals is to improve
:09:00. > :09:10.education and job training so that our younger people can compete in
:09:11. > :09:12.the global marketplace. Modi did not shy away from raising issues on
:09:13. > :09:28.trade disputes, nuclear cooperation and visas, which have dogged the
:09:29. > :09:30.relationship for some time. TRANSLATION: I also sought the
:09:31. > :09:33.support from President Obama for service companies in the US market
:09:34. > :09:36.that are from India. Experts say it would be miraculous
:09:37. > :09:39.if all these disputes can be resolved overnight, but the two
:09:40. > :09:43.leaders do seem to have made a promising start. They have agreed to
:09:44. > :09:47.set up a new agenda to revive this flagging relationship. While Mr Modi
:09:48. > :09:50.has a strong domestic economic focus, and the US supports that, it
:09:51. > :09:57.also expects India to be an effective and strategic partner on
:09:58. > 0:03:00global platforms. If the two can fit both on the same page, that
0:03:01 > 0:03:00called a success. There has been a jump in sales in
0:03:01 > 0:03:00China's in cinemas. `` Chinese cinema receipts. It is a more
0:03:01 > 0:03:00successful year than 20 13. The best movie so far is Transformers Age of
0:03:01 > 0:03:00Extinction, the new movie. Before we go, a quick look at the
0:03:01 > 0:03:00markets. Some stocks move into positive territory despite unrest in
0:03:01 > 0:03:00Hong Kong hurting sentiment. The Nikkei is up by 37 points as the
0:03:01 > 0:03:00Japanese yen has crossed over 110 on the US dollar, the weakest level in
0:03:01 > 0:03:006.5 years. Thank you so much for investing your time with us. Goodbye
0:03:01 > 0:03:00the now. `` for now. I'm Mike Embley.
0:03:01 > 0:03:00The top stories this hour: crowds of protesters are still on the street
0:03:01 > 0:03:00in Hong Kong as China's national day begins.
0:03:01 > 0:03:00The US diagnose as its first case of the Ebola virus on American soil.
0:03:01 > 0:03:00The man is an American back from West Africa and is treated in
0:03:01 > 0:03:01isolation in a Dallas hospital. Police investigating the death