04/09/2017 Asia Business Report


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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Now on BBC News, all the latest business news live from Singapore.


Asian market reactions. Pyongyang's latest nuclear test and Donald Trump


threats. And from a vibrant tourist town to a ghost town. Why did


authorities shut down a resort destination in China? Good morning,


Asia. Hello, world. Welcome to another edition of Asia Business


Report. I'm Rico Hizon. Thank you for joining us. It's a Monday. A few


things we are keeping an eye on from the business calendar. We start with


China playing host to leaders from the BRICKS grouping, which includes


Brazil, South Africa, and other countries, on Tuesday. The Central


Bank will look at whether it needs to change the cost of borrowing from


a record low of 1.5%. It has been at that rate since August last year. We


will begin with developments over the weekend. Just hours after


Pyongyang said it tested a hydrogen bomb, Donald Trump tweeted the


United States is considering slapping trade embargos on all


countries that do business with North Korea. How are the markets


reacting? It is the start of the brand-new trading week. We will ask


Lisa, our business reporter. We are two minutes into the open for


Australia, Japan, and South Korea. What has the reaction been? Markets


are down following the sixth test by North Korea. The biggest fallout is


South Korea. At the open there was a steep sell-off, negative 1.4% last


time I checked. Australia and Japan are down. Investors are taking a


risk-off approach, moving money from risky stocks to safe havens. Gold is


now trading at $1335. Other safe havens include the Japanese yen, the


Swiss franc, and other US government bonds. We are seeing the ten year


Treasury yields doing well, even though US markets are closed today.


This has happened too often over the past several months. North Korea


missile tests, stabilisation, and markets going up again to be given


the severity, and similar to Hiroshima, people are wondering if


this is a game-changer. If President Trump cuts off all trade ties for


countries to trade with North Korea, it will be difficult to implement,


but it would be severe, and cutting off the oil supply to North Korea


would be difficult as well. North Korea will be the crucial element.


The tension is more intense. Thank you so much. Of course, events in


Pyongyang overshadowed the annual meeting of BRICKS members in the


south China city. I asked what the future holds for these emerging


economies that seemed to be drifting apart. The term BRICKS was coined at


the turn of the millennium in 2001. It was supposed to exempt the thigh


five countries that were supposed to grow relatively quickly. --


exemplify. Three of those economies have knows dived, one is slowing and


one is growing -- nose-dived. It is difficult to see what connects these


countries now. I don't know what this summit is supposed to achieve.


It is meant to be a talking shop for Russia, China, India, and... Well,


those are the main economies. Then you have South Africa as well. The


largest technology show in Europe is currently under way in the German


city of Berlin. Over the past two years, titans like Samsung has


abandoned the exhibition, preferring to launch flagship products on the


rain. That has allowed others to use these exhibits to show their goods.


-- on their own. This is the stand out product. There is no


sightscreen, no modular design. The focus is on taking pictures and


shooting videos. To that end, there are two cameras, a beautiful OLED


screen, and is in figure where you can pick and -- an object or person


and zoom in. Some have had cutting edge technology. I think LG has


always been about choice. It may not be number one, it may not be the


thinnest, cheapest, brightest, I mean, there are many things we are


not. But one thing we have always been is giving people an alternative


choice. There are two ways you can compete with the Samsungs and Apples


of this world, cutting-edge features, and like this $400 Moto


X4, compete massively on price. Someone who wants a high quality


smartphone experience but cannot afford the flagship phones. That is


what we provide. In just a couple of weeks, a new iPhone is likely to


dominate the headlines. Manufacturers like those here will


be hoping they can also make a splash. BBC News. Since the 1980s,


China's unbridled development has brought improved standards for


millions of its citizens. It has also had issues with its unregulated


expansion, especially when it comes to the natural environment. That has


led authorities in the south-west to take the drastic step of shutting


down an entire resort town. Not everyone is happy. Steve McDonald


has more. TRANSLATION: This has usually affected allies. We used to


work in hotels. -- our lives. Now we have lost our lives. TRANSLATION:


Businesses have closed. The economy has been affected. People don't


understand. In the long-term, I think they will. The little hotel


behind me has been forced to close, as with all the other small


businesses along the for sure. That is because this once thriving


tourist town in the lake behind it were being loved too much. --. A


victim of success. And with such spectacular scenery, you can


understand why people have been coming in to visit. But now China is


slowly but surely moving away from the unregulated chaos of the past in


order to protect places like this. We have come here to find out why


the authorities pulled down the local tourism industry pretty much


overnight. We will meet one of the hotel owners.


TRANSLATION: We make our living from fishing now. Our income is very low.


Of course, we are angry they closed the hotel. Before the closure, rooms


would be booked out before the summer holidays.


TRANSLATION: Before we put economic develop and the head of the


environment. Now we pay attention to both. -- ahead of the. If we keep


everything clean, business will be better in the future.


Stephen MacDonald in China. And before we go, here is a look at


another business development. Steven Mnuchin, the US secretary, says


areas hit by Hurricane Harvey may have help delayed. Donald Trump has


said it will give $1 billion of aid, but the US is set to hit the debt


limit soon. This is one of the costliest storms in US history. $800


billion, according to the mayor. Thank you for investing your time


with us. I am Rico Hizon. Goodbye for now. You are watching BBC News.


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