:00:00. > :00:14.Now on BBC News, all the latest business news live from Singapore.
:00:15. > :00:29.Rock bottom and still sliding. Iron ore prices have a new decade low.
:00:30. > :00:31.Following in the family. How this third generation business is
:00:32. > :00:44.competing on the High Streets of Hong Kong. Welcome to Asia Business
:00:45. > :00:49.Report. The price of iron ore, the key ingredient of this deal, has hit
:00:50. > :00:58.a fresh ten year low. It closed at $43. $43.89 a ton. Some say it has
:00:59. > :01:05.got much further to fall. This economist says it will go below $40
:01:06. > :01:12.a ton by the end of the year and will be in the Turkey is at the end
:01:13. > :01:16.of 3016. This is why. -- thirties. -- 2016. It is not sustainable. I
:01:17. > :01:24.think the demands will cool off white a lot in the next year. --
:01:25. > :01:30.quite. China's production and demand will fall a lot. There will be some
:01:31. > :01:36.pushing of the price down to where only the largest producers can be
:01:37. > :01:43.profitable. There will be many bankruptcies. Number one, there are
:01:44. > :01:48.Chinese high cost producers that are used to 100 million tons. Most of
:01:49. > :01:55.the world will need to be priced out. That will be a painful process.
:01:56. > :02:00.I put that question to an analyst in Sydney. When you look at the market
:02:01. > :02:11.and how it is priced at the moment you can see that looking 2-3 years
:02:12. > :02:15.out it will be lower. The market is already rising levels below $40 in
:02:16. > :02:19.the next couple of years. -- pricing. When you look at it there
:02:20. > :02:23.is a lot of capacity coming to the market. Whether it will stay at
:02:24. > :02:31.those levels is another thing. As he correctly pointed out, as the price
:02:32. > :02:35.goes low you lose our lot of tons through minds shutting down. It is
:02:36. > :02:39.through that that you will find the price will be more supportive. --
:02:40. > :02:44.mines. The you see the big miners will continue to ramp up production?
:02:45. > :02:47.That is what we have seen, ironically, because they are
:02:48. > :02:51.low-cost operators and are putting more iron ore on the market. If you
:02:52. > :02:58.look at the export that continue to go at record levels I don't see that
:02:59. > :03:08.ranging. -- exports. What is more important is what is being produced
:03:09. > :03:14.is consumed. -- reducing. Those that cannot will actually be taken over
:03:15. > :03:22.or go out of business or shut down. BOC price is sitting at the $30 mark
:03:23. > :03:28.for a few years to come? -- Do you see the. Or are you more optimistic
:03:29. > :03:35.and say $50 a ton? I am more optimistic. When you look at the
:03:36. > :03:41.price of iron or where it is and where China is positioned, China
:03:42. > :03:46.requires growth at 7.5 to 8% to keep the economy stable. -- iron ore. I
:03:47. > :03:51.think the more negative the data is that comes out of China the more
:03:52. > :03:55.stimulus they will put in the market and there will be more demand. You
:03:56. > :04:01.are optimistic. Does this more positive outlook... Some people are
:04:02. > :04:06.thinking, why do I care about the iron ore? But it is about the
:04:07. > :04:12.broader economic Outlook. China is still putting stimulus on the table.
:04:13. > :04:20.-- outlook. We have to ask a why I be looking at increasing interest
:04:21. > :04:23.rates? -- why are they looking at. Consumption will dramatically pick
:04:24. > :04:27.up and as a result of that capacity in the market and the spare capacity
:04:28. > :04:31.we are in at the moment, in my mind, it will be taken up in the market.
:04:32. > :04:38.That will create stable, if not, higher prices are quite China's
:04:39. > :04:43.slowing economy is not just causing those problems, but key issues for
:04:44. > :04:55.other businesses like the largest private investment fund for the
:04:56. > :05:00.mainland. -- prices. The executive vice president told Sharanjit Leyl
:05:01. > :05:08.that now is a good time to go global. We believe that China is at
:05:09. > :05:11.a stage where we will see more companies going global and becoming
:05:12. > :05:18.international players in the next ten years. I think for an investment
:05:19. > :05:25.company this is a good opportunity. To help them grow globally as well
:05:26. > :05:31.as make good profit, I mean. But the signals from China are not
:05:32. > :05:38.reassuring. Six rate cuts in a year and constant stimulus to reignite
:05:39. > :05:46.the economy... Had is that impact your firm? It will be more difficult
:05:47. > :05:50.to invest ethically in China because the economy is slowing down. -- how.
:05:51. > :05:55.But we can also see, because of the slowdown, many Chinese companies are
:05:56. > :06:00.trying to grow their business overseas. That is also a good sign
:06:01. > :06:07.for us. In my personal opinion, I guess, starting a US business in a
:06:08. > :06:11.slowdown period is probably a good thing, rather than in peaktime. You
:06:12. > :06:16.can pick up some bargains, is what you are saying? No, we see good
:06:17. > :06:22.opportunities. In other news, Ali Abbas insurance is setting up a
:06:23. > :06:28.joint-venture with China's search engine. -- Alianz. It is to
:06:29. > :06:33.establish an on line insurer in the country. It only brings in a small
:06:34. > :06:37.part of their overall revenues but China's expanding middle-class has
:06:38. > :06:45.seen increased demand for insurance products. The Chinese smartphone
:06:46. > :06:49.maker has launched its latest handset to revive dwindling sales.
:06:50. > :07:02.Revised three months after its loss is, it is relatively cheap and has a
:07:03. > :07:09.fingertips and so. -- predecessor. -- fingertip sensor. China is
:07:10. > :07:11.increasing the minimum wage to boost consumer spending and economic
:07:12. > :07:17.growth. That economy has leapt into recession twice Shinzo Abe came to
:07:18. > :07:23.power nearly three years ago. -- Japan. His government has been under
:07:24. > :07:29.pressure to improve the economy's performance. Hong Kong was once the
:07:30. > :07:32.factory of the world making everything from electronics to
:07:33. > :07:44.toys. But after it opened up in the 19 50s many live to the mainland. --
:07:45. > :07:50.1950s. Decades later only a handful of businesses remained there. One is
:07:51. > :07:59.making shoes. Were told how the enterprise is revamped. -- We are
:08:00. > :08:05.told. TRANSLATION: It was founded in 1958 by my grandfather. It was just
:08:06. > :08:10.a booth under a staircase. It was a smart shop that sold all kinds of
:08:11. > :08:15.bugs, mainly Chinese slippers. -- products. I started helping out at a
:08:16. > :08:20.very young age. Slowly, I fell in love with traditionally embroidered
:08:21. > :08:25.shoes. Dan Norris started to get involved in the designing. -- then I
:08:26. > :08:31.started. That is when I decided I could invest one whole life in the
:08:32. > :08:36.business. Before slippers were warned mainly in the last. -- my.
:08:37. > :08:41.Then I tried to modernise the design and use new materials. -- worn. Now
:08:42. > :08:50.they can be used outside. These are the traditional shoes revamped. Many
:08:51. > :08:56.people like to wear high heels at their weddings. Traditionally, they
:08:57. > :09:02.were all flat shoes. I get a lot of inspiration from my daily life. I
:09:03. > :09:06.like to hang out in different places and get inspired by many things. I
:09:07. > :09:10.like to explore the neighbourhood around my shop. I spend hours
:09:11. > :09:19.looking for fabrics and designs. I often forget out what to do during
:09:20. > :09:23.my next season during this process. -- figure out. I started social
:09:24. > :09:29.media to attract more younger customers. People say, I didn't know
:09:30. > :09:33.these shoes were still being sold. All our products are handmade. My
:09:34. > :09:39.biggest obstacle is that I don't have enough staff. Very few people
:09:40. > :09:45.in Hong Kong choose to make shoes as a full-time job. Another obstacle is
:09:46. > :09:50.the rent prices. We were forced out of our former location in Hong Kong.
:09:51. > :09:56.Since we moved, we have lost a lot of older customers. They weren't
:09:57. > :09:59.able to find us. The customers we were able to keep worthy younger
:10:00. > :10:05.ones who kept up with us on social media. More than half of our
:10:06. > :10:09.customers are now under 40. -- were the. I hope to keep doing this, not
:10:10. > :10:13.just to keep it in the family, but to broaden interest among fellow
:10:14. > :10:21.designers to get into this business, to do this with me. It is
:10:22. > :10:26.time for just a quick check of the Asian markets. You can see that most
:10:27. > :10:33.of them are just ever so slightly down. The Nikkei is down 120 point.
:10:34. > :10:36.The All Ords is also down. That is it for Asia Business Report. --
:10:37. > :10:44.points. Thank you for watching.