04/09/2017 Asia Business Report

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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