04/09/2017 Asia Business Report


04/09/2017

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.

:00:00.:00:15.

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

:00:16.:00:28.

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

:00:29.:00:34.

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

:00:35.:00:40.

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

:00:41.:00:43.

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

:00:44.:00:52.

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

:00:53.:01:01.

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

:01:02.:01:05.

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

:01:06.:01:09.

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

:01:10.:01:14.

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

:01:15.:01:17.

will begin with developments over the weekend. Just hours after

:01:18.:01:23.

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

:01:24.:01:26.

United States is considering slapping trade embargos on all

:01:27.:01:29.

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

:01:30.:01:37.

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

:01:38.:01:42.

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

:01:43.:01:46.

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

:01:47.:01:52.

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

:01:53.:01:59.

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

:02:00.:02:06.

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

:02:07.:02:14.

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

:02:15.:02:22.

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

:02:23.:02:25.

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

:02:26.:02:33.

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

:02:34.:02:38.

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

:02:39.:02:45.

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

:02:46.:02:53.

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

:02:54.:02:56.

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

:02:57.:03:02.

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

:03:03.:03:05.

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

:03:06.:03:09.

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

:03:10.:03:19.

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

:03:20.:03:27.

Pyongyang overshadowed the annual meeting of BRICKS members in the

:03:28.:03:34.

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

:03:35.:03:37.

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

:03:38.:03:45.

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

:03:46.:03:49.

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

:03:50.:03:55.

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

:03:56.:04:03.

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

:04:04.:04:07.

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

:04:08.:04:13.

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

:04:14.:04:19.

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

:04:20.:04:27.

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

:04:28.:04:31.

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

:04:32.:04:35.

abandoned the exhibition, preferring to launch flagship products on the

:04:36.:04:43.

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

:04:44.:04:59.

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

:05:00.:05:04.

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

:05:05.:05:11.

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

:05:12.:05:18.

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

:05:19.:05:32.

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

:05:33.:05:38.

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

:05:39.:05:49.

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

:05:50.:05:53.

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

:05:54.:05:56.

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

:05:57.:06:15.

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

:06:16.:06:18.

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

:06:19.:06:21.

smartphone experience but cannot afford the flagship phones. That is

:06:22.:06:26.

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

:06:27.:06:28.

dominate the headlines. Manufacturers like those here will

:06:29.:06:34.

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

:06:35.:06:44.

China's unbridled development has brought improved standards for

:06:45.:06:47.

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

:06:48.:06:52.

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

:06:53.:06:59.

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

:07:00.:07:03.

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

:07:04.:07:10.

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

:07:11.:07:15.

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

:07:16.:07:20.

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

:07:21.:07:24.

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

:07:25.:07:29.

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

:07:30.:07:33.

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

:07:34.:07:41.

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

:07:42.:07:48.

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

:07:49.:07:51.

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

:07:52.:07:56.

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

:07:57.:07:58.

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

:07:59.:08:26.

the authorities pulled down the local tourism industry pretty much

:08:27.:08:33.

overnight. We will meet one of the hotel owners.

:08:34.:08:43.

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

:08:44.:08:51.

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

:08:52.:08:56.

would be booked out before the summer holidays.

:08:57.:09:20.

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

:09:21.:09:25.

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

:09:26.:09:33.

everything clean, business will be better in the future.

:09:34.:09:53.

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

:09:54.:10:04.

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

:10:05.:10:13.

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

:10:14.:10:21.

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

:10:22.:10:28.

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

:10:29.:10:34.

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

:10:35.:10:39.

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

:10:40.:10:44.

These are the

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