23/12/2015 Asia Business Report


23/12/2015

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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The crude reality. Oil prices reach a new depth. What about the

:00:16.:00:24.

prospects for next year? Looking sunkissed without the risk. The fad

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taking off in Asia. Hello, and welcome to Asia Business Report.

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OPEC is one of the most powerful cartels. It has been haemorrhaging

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hundreds of billions of dollars because of a collapse in oil prices.

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This week, Brent crude has tumbled, $36 a barrel, at an 11 year low.

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Could it fall further? We will get an idea today when OPEC releases the

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world oil outlook. I ask what we can expect. What we anticipate is what

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OPEC set in 2014 -- said. Short term, until 2019, non- OPEC

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supplies, Russia, the US, Canada, will lead the supply. From 2040

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-2040 they believe it will be back to them, they will be the ones doing

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it. -- 2020 -2040. They will stress on renewables, which is what we

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expect. The OPEC policy has always been long-term. The theory is trying

:01:52.:01:57.

to keep prices low and maintain production to price out expensive

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producers, the US shell produces, for instance. -- shale. How dearly

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has it cost them? Rather than price, we should look at it from the market

:02:10.:02:13.

point of view. This is a war of attrition game. It is not about

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current prices, not about current losses, but about how much longer

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this war can be prolonged, and indicators are around what the

:02:26.:02:30.

investments they are trying to make so they can have the war going on

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until someone blinks. The first one to blink we think will be Russia.

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And they are already suffering. And the rouble has been devalued. We

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don't believe the US will be affected drastically. US, yes,

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investment has been cut down. Oil prices should stabilise after a few

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quarters. In other news, Nike reports a 20% rise in profits thanks

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to sales in shoes. The future orders came in stronger than expected

:03:12.:03:15.

thanks to Chinese demand. The shares of the company are the top on the

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Dow. Boeing has been ordered to pay a $12 billion fine. The regulator

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said they failed to meet a deadline to provide fuel tank safety

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instructions to airlines. The strategic investment from a Chinese

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carmaker for Uber, after trying to expand in the most pillars company,

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however, competition is fierce -- populace. Every Christmas there is

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tension between shops and online. Some try to sit on both sides of the

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divide. Spencer Kelly reports from a shop going just one step further.

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This shop in east London might look like an ordinary shop but it is also

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a lab for testing the latest shopping technology. I am sure that

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stores in the street want to be able to do what online shops to and offer

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targeted products at every opportunity. -- do. But in order to

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target more, they need to know more about the target. Look at this.

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Shops are interested in footfall but when you walk in here what you are

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wearing when you walk in is analysed. Yes, apparently, our shoes

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save lots about us, shoes heels, shoe size are some of the software

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look for. At the moment we can look at the gender and whether they are

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coming in alone or with family. When you know who is walking past your

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shop, you can change your shop window to greet them. This is very

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cool! Look at this. This is a real shop display with real objects. But

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in front of it is a transparent LCD screen. This is just a normal LCD

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and they have ripped the backlight off it and replaced it with a big

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white box with stuff in it, which means you can change the display

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depending on the time of day or who is walking past at the time. The

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very latest in shopping technology with Spencer Kelly. It looks like

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lawyers and investment bankers have been kept busy this year because of

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a record number of global deals announced. Mergers and acquisitions

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totalling $4.6 trillion in 2015. Including deals between drug giants

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and beer brewers. Last month, Mariette and Starwood in one of the

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biggest hospitality mergers. Could Consolidation be the way for Hotel

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groups? The president of Hilton has been speaking about how his hotel

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group is adjusting its challenge to stay in the game. We are seeing

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consolidation activity in the industry, it it will be the norm. As

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we saw in China, we saw this happening -- it will be the norm. In

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the industry, Asian players go together with international

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players. I think it is formidable to have great competitors. We focus on

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our 12 strong brands and continue to grow those internationally. Profit

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has jumped 50%, driven by a tax's region. His growth like this

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sustainable? Yes. -- APEC. It will be the strongest growth market in

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the world, looking at the size of India and China. Even with the

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slowing down of the Chinese market, there is Myanmar at Thailand,

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Indonesia. Those markets will grow in order to increase the penetration

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-- Myanmar, Thailand. Other markets are compensating for China's

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slowdown. The Asia-Pacific region will be the growth engine in the

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hospitality region worldwide. In Asia, pale skin has been seen as a

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sign of beauty. Women spent billions each year on products to try to

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whiten their complexions. We know that times are changing. Asians are

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looking to have that sunkissed look without harmful ultraviolet rays.

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Some are trying out spray tans. Aversion to the sun is so intense

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that in some parts it is not unusual to see people on the beach in these

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cover up face bikinis. For generations in Asia are tanned skin

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has been frowned upon, associated with working outdoors in the field.

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Attitudes are changing as the younger Asians see prestige and

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glamour in tanned skin. It gives a healthy glow. Spray tanning enhances

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your complexion. This trend means big business for companies like this

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Singapore mobile business that sprays customers from head to toe in

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their desired shade. It was my desperate need for a spray tan, that

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is how it started. And I had seen a gap in the market. Everybody

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laughed. Friends laughed and said it wouldn't work. No one will be

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interested because we've got the sun and everyone wants whitening. All of

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the moisturiser has whitening, and the deodorant. The reaction was one

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of, I'm not sure that will work. But that has changed. Starting with one

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client, she now has 120 regulars and contracts at clubs and gyms across

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Singapore. Next year she plans to open a salon and set up partnerships

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with hotels in Thailand and Malaysia. It is not only women who

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are spray tan. In the sport and fitness industry, I think we're more

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leaning towards fake tanned bodies, which look sparkling. She puts the

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change to social media and the popularity of world tanned Western

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celebrities -- well tanned. The biggest growth market would be

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within the Asian market. It has increased I would say about 80% in

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the last two years. Whether people want to look like they've just had a

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beach holiday or they are copying bronzed Hollywood stars, getting a

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tan in Asia, at least the spray on kind, is no longer beyond the pale!

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I would rather be on the beach. Let's have a look at the markets

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now, because they're all fairly flat. The Japanese Nikkei is shut

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because of the Emperor's birthday. Some gains in Australia. The Hang

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Seng is slightly up. Taking keys from the US which is quiet ahead of

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Christmas. That is it for this edition of Asia is in

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Christmas. That is it for this edition of Asia is -- Asia Business

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Report. Thank you for watching. Heavy fighting continues

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in Afghanistan's Helmand Province between government forces

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and Taliban militants. There are conflicting reports

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about who's in control

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