05/01/2016

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:00:00. > :00:00.of failing to address concerns about safe working and unsocial hours.

:00:00. > :00:15.Now on BBC News, all the latest business news, live from Singapore.

:00:16. > :00:29.A market freefall. After Monday's fall in China they are open and

:00:30. > :00:31.next. Another choppy day. And imagine a machine that could give

:00:32. > :00:43.you moisturise as at the we will show you how. -- moisturiser. Hello.

:00:44. > :00:47.Glad you could join us. I am Rico Hizon. All eyes are now on the Asian

:00:48. > :00:52.financial markets. We start off with South Korea. Officials are ready to

:00:53. > :01:01.take action if needed to stabilise the market. Just one of the bourses

:01:02. > :01:04.in the region in positive territory this morning after the sharpest

:01:05. > :01:11.daily fall since August last year. The market turmoil comes after

:01:12. > :01:15.trading on China's mainland index, the Shanghai index, plunged

:01:16. > :01:22.dramatically on Monday. It has opened just now for trading. We will

:01:23. > :01:27.have the numbers soon. But trading in Shenzhen and Shanghai down 7% on

:01:28. > :01:30.Monday. That triggered a new circuit breaker mechanism causing trade to

:01:31. > :01:37.be suspended for the rest of the day. So, should we expect more

:01:38. > :01:43.volatility? Earlier, we had this view. I think we should definitely

:01:44. > :01:50.expect volatility to continue. Don't forget, the last trading day last

:01:51. > :01:52.year was pretty weak in the US. You could also take the perspective we

:01:53. > :02:04.are following that lead into the sea. 2015, the same themes? -- this

:02:05. > :02:10.year. Weak Chinese economic data. Yeah, and also, or example, what was

:02:11. > :02:16.you, which happened yesterday was the circuit breaker being treated

:02:17. > :02:23.for the first time. -- new. Observers might think this is

:02:24. > :02:28.positive. -- triggered. Almost everything the officials are

:02:29. > :02:33.implementing since last summer is creating confusion. They are

:02:34. > :02:38.dominated by domestic investors and retail investors. They like to

:02:39. > :02:43.panic. Will this continue to fall in the Chinese economy... Are you

:02:44. > :02:50.expecting behind landing in 2016 for them? We are expecting... You have a

:02:51. > :02:54.positive long-term view on the Chinese economy. When you see the

:02:55. > :03:01.services PMI versus the manufacturing PMI, it is taking over

:03:02. > :03:04.from manufacturing, growth in China. But that is a long-term story.

:03:05. > :03:09.Basically, investors have to be patient with this transition to a

:03:10. > :03:16.service economies investors always have to be patient, is actually in

:03:17. > :03:21.China. -- economy. Asia as a whole, which particular sectors, industries

:03:22. > :03:26.and countries do you like the moment for 2016? Within Asia, we have a

:03:27. > :03:32.positive view on north versus south. Japan, we like the reform

:03:33. > :03:39.story, slowly progressing. Were also, as mentioned, have a long-term

:03:40. > :03:43.positive view on China. -- We. We think the first half will be

:03:44. > :03:52.tougher. This is how Australia will be faring in the mid-morning trade.

:03:53. > :03:59.Down by 107 point. -- points. Sydney giving back 58 point. The Hong Seng

:04:00. > :04:09.index in Hong Kong, opening numbers very shortly. Let's look at the US

:04:10. > :04:17.markets. Overnight, the Dow lost 1.6%. And the NASDAQ is in negative

:04:18. > :04:23.territory. 2.1% at the close. Moving to other business news. South

:04:24. > :04:27.Korea's account surplus fell to 6.75 billion dollars in September. That

:04:28. > :04:33.makes it the smallest since May of last year. Exports in November

:04:34. > :04:38.dropping six and a half per cent to under $43 billion. New data from

:04:39. > :04:42.Indonesia shows that the cost of living is at it's lowest level in

:04:43. > :04:47.six years. That has raised expectations that the central bank

:04:48. > :04:53.could cut the cost of borrowing for the first time in nearly a year. --

:04:54. > :04:58.it. They have been held at seven point 5% since 2015. You would think

:04:59. > :05:05.that Chinese economies may be putting off the race Dashon plans.

:05:06. > :05:09.But not so for Chinese airlines. -- their expansion plans. They are

:05:10. > :05:15.going global. Nearly a dozen carriers are going to launch

:05:16. > :05:20.international programmes this year. That is to cope with mainland

:05:21. > :05:25.tourists going overseas. We explain why this is important. It is

:05:26. > :05:29.significant. We are seeing a lot of international expansion. For the

:05:30. > :05:35.first time, many carriers are taking on big routes and sometimes we are

:05:36. > :05:41.seeing more than one Chinese carrier on a Sydney pair. America and

:05:42. > :05:45.Australia. That increases the competition among Chinese carriers.

:05:46. > :05:50.Most of them are owned by the government. Correct. Therefore, they

:05:51. > :05:54.are stopped from competing against each other usually. But it looks

:05:55. > :05:58.like the government is opening bat up a bit but the bad is good because

:05:59. > :06:04.it will lead to more competition. -- that up. It is not just major

:06:05. > :06:10.carriers. We are seeing second and heard year carriers joining. --

:06:11. > :06:17.third. We are seeing new city is opening up, smaller cities, though

:06:18. > :06:23.quite big I Western standards. -- by. This is because China is living

:06:24. > :06:25.more new airports because there are more and additional emerging

:06:26. > :06:32.carriers coming up the ladder. Absolutely. We are seeing the

:06:33. > :06:35.emergence of low-cost carriers in China. They could be a big thing.

:06:36. > :06:40.They will drive expansion domestically and in two places like

:06:41. > :06:45.Southeast Asia. Is this aggressive and is along the large and smaller

:06:46. > :06:50.carriers? -- into. Many countries right now are more affordable

:06:51. > :06:54.because of the declining currencies and the rising Chinese

:06:55. > :06:59.middle-class. Absolutely. We have certainly seen that in the

:07:00. > :07:03.Australian market. Many Chinese carriers are flying to Australia and

:07:04. > :07:05.New Zealand and the like. But many of these outlines, flying overseas,

:07:06. > :07:11.it means is a national currency hedge for them, especially where it

:07:12. > :07:17.is falling slightly. But, what could be the downside for these

:07:18. > :07:23.expansions, when the Chinese economy is slowing down. So far, we haven't

:07:24. > :07:26.seen much impact from the slowdown in the Chinese economy. Many are

:07:27. > :07:30.still travelling in China and outside of it as well. There hasn't

:07:31. > :07:35.been much of an impact for airlines. Though, longer term, if it

:07:36. > :07:41.deepens, it could be a problem. But at the moment it seems it hasn't

:07:42. > :07:46.stopped Tony's travellers. -- Chinese. Chinese manufacturing data

:07:47. > :07:51.showed activity falling in December, raising rush concerns about the

:07:52. > :07:57.demands for the largest consumer of metal. Prices have gained ground in

:07:58. > :08:07.recent months from six-year lows. But they were short lived. Test are

:08:08. > :08:13.being carried out. -- tests. A la minion -- Aluminium ore has turned

:08:14. > :08:20.the sea on the cost a red -brown colour. The concern is growing about

:08:21. > :08:25.the impact on the environment. -- coast. Chances are that you have

:08:26. > :08:30.applied some sort of rather than your face this morning, I have.

:08:31. > :08:34.Billions are spent on cosmetics every year. But imagine if you could

:08:35. > :08:41.customise your own moisturiser. And machine that can do just that will

:08:42. > :08:47.be shown this week. -- A. That is in Las Vegas but the we met the

:08:48. > :08:59.president of the company. -- Las Vegas. COUNTRY MUSIC.

:09:00. > :09:06.What would you recommend for me if I was to try it was yellow because we

:09:07. > :09:14.are in Paris, it is very cold. -- it. This is for people with cold

:09:15. > :09:19.skin. It mixes with the sea and squirts out... Now you can wear this

:09:20. > :09:23.outside. Ten years younger. Part of the fun of expensive beauty products

:09:24. > :09:29.is you go to the shop, try them out, get pampered... You are asking them

:09:30. > :09:35.to do it at home. Doesn't that take out the fun? no. We will have our

:09:36. > :09:43.own shops. You will have the same experience wherever you are.

:09:44. > :09:46.Wherever you live. This doesn't care... We are taking care of it is

:09:47. > :09:54.now. This machine can mix different ones. -- of this. Some for sport,

:09:55. > :10:01.some for going out... Can I have these in my cupboard? It depends on

:10:02. > :10:03.your way of life, of course. All this week we will bringing you the

:10:04. > :10:05.very latest gadgets and