16/11/2015 Asia Business Report

Asian markets open lower following the attacks in Paris. Myanmar will

have a new government but how will it run the economy? Good morning.

Welcome to Asia Business Report. We start with markets. Asian markets

have opened lower this morning after the Paris attacks which left 129

dead. Japan and Australia are trading with Japan down 1%,

Australia down .5%, Hong Kong has started trading as well. On Friday,

US shares fell with disappointing earnings and we saw oil prices

continuing to fall. It saw the biggest weekly loss in eight months

because of oversupply. After the Parisian attacks, gold prices are

rebounding from five-year lows as it is a safe haven investment. The

prospect of a rate rise in the US Fed is compounding uncertainty. I

asked an economist if that will affect sentiment in Asia. After the

events of Friday it was almost certain there would be a negative

impact this morning. The Leeds from America were quite weak to be honest

so it was written much of their -- leads. It will take time for

investors to really work out what the reaction will be -- there. We

have seen a number of attacks around the globe over the last few years.

There is a little expectation that is how events will happen and it is

how governments will respond to that. The G20 meeting will hopefully

guide markets going forward. It is added uncertainty at this time,

likely playing on volatility we have seen, and perhaps impacting the Fed

in December. What does it mean for commodity prices? Does it mean to

save haven aspect of gold might be appealing? We have seen that this

morning in the currency markets, with the yen strengthening. Safe

haven is starting to be attractive to investors once again. Golf might

find resilience and support around these levels. However, the move

below 1100 was key from a technical perspective. We have seen

consolidation around that mark at the moment. These fundamental

factors might play on the next move, however the overall complex

has looked weak. For the last, well, quite a long while, and so whether

it creates a change in investor sentiment will have to be seen. In

other news, Japan's economy slipped into a technical recession, two

consecutive quarters of negative growth after the economy shrank 1%

in the months between July and September. It came in weaker than

expected because of slowing domestic spending and uncertainty about the

global outlook. Now to Myanmar, one week after defeat in the elections,

the president of the country has promised to hand over power to the

government smoothly and calmly. We are still waiting for the final

results. The opposition party has won more than 80% of the contested

seats, so the focus is on what kind of government the National League

for Democracy will have and how it will handle the economy. I put that

question to 28 political analyst. -- I put that question to a political

analyst. They have a manifesto published and they talk about things

like reducing poverty, focusing on developing agriculture, which is 70%

of the economy, they are interested in investment in manufacturing,

which is less than 1%, but there is not a lot of details, they haven't

put it together. Foreign investors have flooded the market after the

economy started to open. Should they be worried, given the lack of

experience in running the economy? It is a concern. In five years we've

seen tenfold in investment. A lot have been waiting to see what will

happen with the election and with the policies generally. There is

interest in the extract is, with tourism and hotspot but we just

don't know how it will be governed and what the policies will be --

extractives. Import leak, the political risk hasn't gone away. We

don't know how the military will work together -- importantly. We

have seen some good signs. This is an unprecedented time and there is a

lot investors don't know. They like more than anything certainty. You

would expect a pause in foreign investment into Myanmar? I think

they have been sitting on the sidelines for a time and they will

continue to do so. We won't see the parliament sit until

January-February and then they elect the president and then the President

elect the Cabinet. It is early days and I don't think we will see

investment until at least spring. They want to see who will be running

everything and how the policies will shape our. Here in Singapore, global

security and law enforcement experts for the environment are gathered

this week to discuss issues ranging from wildlife to pollution -- shape

out. Fires are still blanketing parts of Indonesia. The conference

is being brought into focus. Earlier I spoke with the head of the

Interpol environmental security unit and asked why the haze is continuing

to affect the region yearly stop yellow we are trying to work with

the government to look at the ongoing course -- yearly. In some

cases the cause is deliberate firing. If it is arson, we need to

investigate and try to take those out of the chain altogether. We had

a correspondent who was asking people what happened, and they said

it was just natural. Even if a law is there, if it is not enforced,

what is the point? Don't take the first response you get as part of

the investigation. Law enforcement will conduct a thorough

investigation. Are they a vested interest and corruption on behalf of

the government? You must acknowledge, yes there will be. You

have to pursue those undermining the response. Government officials

contributing to the degradation of the environment, with fraud or

corruption, should be dealt with by the full extent of the law. It is

early in the week, but with alcohol in India, whiskey is the most

popular, the spirit which has its origins in Scotland, but as we have

found out, trade is going both ways. Whiskey is one of Scotland's's most

valuable exports. 90% of what it makes is sold overseas. France and

the US are the biggest markets. But India is catching up. 80 million

bottles were shipped to India last year and demand is growing. There

are limitations on growth, not least price. Local taxes and import duty

means this bottle of Scottish whiskey costs 5900 rupees, about

$90, twice what you would expect to pay in the UK. Whiskey is the much

cheaper locally made variety. Some are looking at Indian made whiskey

differently. A decade ago this distillery started producing single

malt aimed at the international market, initially. Half what it

makes here is sold in Europe, America and Australia. They are

seeing more locals trying it. There is an element of snobbery that

Scotch whiskey is what people want to drink. Nevertheless, when I see

the consumer profile of people drinking whiskey, they are people in

the age bracket of 30-40. They are buyers in my generation which is

probably not coming in the next. The humidity helps whiskey mature more

quickly than in cooler climates, like Scotland. It also means more is

damaged in the process and has to be thrown away. They say that means

prices won't be cheaper than imported rivals, even if it doesn't

contend with heavy import taxes. Competing on quality, not price, is

what many whiskey makers are having a taste for. Let's recap the

markets, because I can show you Hong Kong's Hang Seng has opened 2% lower

after the Paris attacks on Friday night. That is it for this edition

of Asia Business Report. In Europe, a huge manhunt is under

way for one of the suspected