:00:20. > :00:38.Resources sector digging a hole? And the key industries best known
:00:39. > :00:47.families. -- tea. Glad you can join us. There has been a global sell-off
:00:48. > :00:53.in commodity stocks as Brent crude fell to below $40 per barrel in
:00:54. > :01:07.almost 30 years and I and all hit a ten year low. -- iron ore. A slight
:01:08. > :01:19.recovery fall crude. A gain of 1.7% from the close in New York. Brent
:01:20. > :01:27.crude also higher. At one point, we saw these prices fall below $40 per
:01:28. > :01:36.barrel and at the lowest level since the collapse of Lehman Brothers in
:01:37. > :01:43.2009. The price of red crude oil fell below $40 per barrel on
:01:44. > :01:48.Tuesday, a 60% drop over the past 18 months. Companies are warning that
:01:49. > :01:54.profits will not be as good and demand for oil - the lifeblood of
:01:55. > :02:00.the economic system - is waning but despite this, on Friday, the major
:02:01. > :02:08.group OPEC refused to cut back production and instead members in
:02:09. > :02:12.Iran and Iraq promised to ramp up production. Since then, the dollar
:02:13. > :02:20.has strengthened putting more pressure on the price of commodities
:02:21. > :02:28.like oil. Vic continuing slide of iron ore and the mining stocks
:02:29. > :02:36.sinking. -- the continuing price. Plans to cuts to staff to 50,000
:02:37. > :02:44.from 2017. Prices are now at a ten year low having fallen sharply from
:02:45. > :02:52.August when they were at $140 per ton. Some fear they could still go
:02:53. > :03:00.lower. Analysts saying companies will struggle to break even if
:03:01. > :03:07.prices fall below $30. I asked which will be most at risk. Probably the
:03:08. > :03:16.smaller ones. The bigger ones have staying power. For some it cost $18
:03:17. > :03:22.per ton to bring the material out off the ground. They are also in
:03:23. > :03:29.eight consolidation phase. What is it like to come back? China has the
:03:30. > :03:40.biggest piece of demand and eye on all - they are the biggest steel
:03:41. > :03:50.producer. -- eye on all. -- iron ore. It is losing its lustre. Where
:03:51. > :03:56.do we see it by 2016? It could head lower because, if you look at the
:03:57. > :04:02.big companies and everything they are doing to drive cost efficiency
:04:03. > :04:17.and production costs being $18, let's say, it can head towards that.
:04:18. > :04:24.What about the price of oil at 70 -- seven Ye lows? US production is
:04:25. > :04:31.expected to decline for the first time in eight years. It has seen on
:04:32. > :04:38.average 1 million in its production tanks, from next year it is expected
:04:39. > :04:43.the 100 thousand less. But Russia is producing bowl and demand is going
:04:44. > :04:51.nowhere so pretty much the same scene will or you'll. Iran and Iraq,
:04:52. > :04:58.if you add them to the equation, putting the oil in the market would
:04:59. > :05:06.depress prices? That is one of the problems in OPEC. As a result,
:05:07. > :05:16.nobody wants to cut and everybody wants prices higher. The slump in
:05:17. > :05:22.commodities is also affecting Morgan Stanley, it has dropped a quarter of
:05:23. > :05:28.its staff. It is closing its basemetal trading desk globally
:05:29. > :05:33.because of pressure from the slump in commodities and smaller profits.
:05:34. > :05:41.China's economy not only has brought about the worst colicky downturn in
:05:42. > :05:49.close to a decade - commodity. But it has also affected other sectors.
:05:50. > :05:57.Real estate developer talks to us. It is humongous. Roughly 20% of the
:05:58. > :06:04.economy isn't related to this industry so, in the old days, when
:06:05. > :06:14.we sold prices go up, many other industries benefited but now as it
:06:15. > :06:17.slows down, 20% of the economy is affected and said the government
:06:18. > :06:24.will have to have other means of spurring the economy. There is a
:06:25. > :06:28.probability the US central bank will raise interest rates in December,
:06:29. > :06:34.what impact will it have on Asia's property market and in Hong Kong and
:06:35. > :06:39.China in particular? In Hong Kong very little because all of the major
:06:40. > :06:50.players have very low debt. I company for the last nine years has
:06:51. > :06:57.had zero net debt. In China it matters more because companies in
:06:58. > :07:08.general are far more in debt had but if you over borrow, you deserve to
:07:09. > :07:15.be hurt. Right? Any developer who is only a market developer is not a
:07:16. > :07:21.good developer. In other business use, shares in Yahoo! Jumping after
:07:22. > :07:29.reports it will not sell off its $32 billion stake in Chinese company
:07:30. > :07:36.Alibaba. Pressure from a potentially huge tax bill from the sell-off. It
:07:37. > :07:42.is looking at spinning its core Internet business instead. Myanmar
:07:43. > :07:53.is launching its first stock exchange. With a reported investment
:07:54. > :07:57.of $24 million, it is a joint venture by the economic bank, double
:07:58. > :08:04.securities and the Japan exchange group. In China, tea it is a
:08:05. > :08:10.medicinal remedy, in India note on the station is complete without tea
:08:11. > :08:17.and in the UK there is no conversation without tea.
:08:18. > :08:26.Competition is tough. We go and meet one famous tea family. It is one of
:08:27. > :08:31.Sri Lanka is big as the companies. Began in the 1950s when the
:08:32. > :08:37.departure of the family decided to bring Sri Lankan tea to the world.
:08:38. > :08:42.It is now expanding to the Middle East and Europe and facing stiff
:08:43. > :08:46.competition from cheaper brand. I caught up with the men behind the
:08:47. > :08:52.family business to find out what makes the company tick. Did you know
:08:53. > :08:56.that it was going to end up becoming in this family run business? What
:08:57. > :09:05.did you tell the children as they were growing up? When they reached
:09:06. > :09:10.11 years of age, our country was in political turmoil and I saw no
:09:11. > :09:15.future so I sent them to the best Christian school in England, for
:09:16. > :09:24.their education, hoping they would nullify well and find jobs but quite
:09:25. > :09:30.contrary to my expectations, both of them, after graduation, joined the
:09:31. > :09:39.family business and that brought me strength and that provides me with
:09:40. > :09:46.so much great ambition for the consumer and for the industry. This
:09:47. > :09:53.is a family run this as. How are you changing or evolving it? --
:09:54. > :09:59.business. There is an emerging niche market interested in the natural
:10:00. > :10:05.goodness relating to the world is in the product they consume. Are also
:10:06. > :10:10.in terms of the ethics and integrity, things that my father
:10:11. > :10:17.share. Ultimately, we are not looking to address the mass market
:10:18. > :10:22.but rather developing a niche. They have been steeped in the tradition
:10:23. > :10:28.of tea making for generations but finding the perfect cup for two days
:10:29. > :10:37.consumers is likely to be a far more challenging affair. Falling bristles
:10:38. > :10:42.and oil stocks will be pressuring Asian equities once again today.
:10:43. > :10:46.Japan is down but Australia is flat. Thank you for now.