09/02/2018

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0:00:00 > 0:00:01for killing Western hostages have been captured by Kurdish

0:00:01 > 0:00:02fighters in Syria.

0:00:02 > 0:00:05They're alleged to be associates of the man dubbed Jihadi John.

0:00:05 > 0:00:07Now on BBC News all the latest business news live from Singapore.

0:00:17 > 0:00:23Asian markets head south after another punishing session on Wall

0:00:23 > 0:00:26Street. And flying high but two were? We

0:00:26 > 0:00:37find out why businesses and spectators flocked to edge shows. --

0:00:37 > 0:00:41airshow is. Welcome to Asia Business Report live

0:00:41 > 0:00:46from Singapore with me, Mariko Oi. We start with markets and we had

0:00:46 > 0:00:50another volatile trading day of the night, Wall Street ended the day

0:00:50 > 0:00:53practically in freefall and now we're seeing Asian shares down as

0:00:53 > 0:01:00well. Monica Miller has the latest. Monica, wow, what a week?It's been

0:01:00 > 0:01:04intense. The Asian markets are taking Wall Street's lead after the

0:01:04 > 0:01:09Dow and S&P 500 are in correction territory, plunging 10% on their

0:01:09 > 0:01:16high in January and as we see here Tokyo started down 3%, it's gained a

0:01:16 > 0:01:21bit of movement there, the all Ordinaries were down today. The Hang

0:01:21 > 0:01:26Seng is just opening, it closed down yesterday down as well. If we can

0:01:26 > 0:01:32look at what happened in the US, again it just sank right to the

0:01:32 > 0:01:38bottom. The Dow Jones industrial is now down below 24,000, closing more

0:01:38 > 0:01:45than 4% down. SNP 500 and NASDAQ as well. It's been a nerve shattering

0:01:45 > 0:01:49kind of weak but there's one rally that would have made bigger news on

0:01:49 > 0:01:53any other date and that's Twitter, Twitter has made a profit since the

0:01:53 > 0:01:59first time it started trading publicly since 2013 -- day. We will

0:01:59 > 0:02:03keep an eye on the rest of the Asian markets for today but what's going

0:02:03 > 0:02:09to happen with India? Thinking about how that's going to impact... Right

0:02:09 > 0:02:17now we are going to speak to our correspondent in them by.Indian

0:02:17 > 0:02:21markets normally take a cue from the global markets, especially the Asian

0:02:21 > 0:02:25markets, given the Dow has plunged again today, the investors would be

0:02:25 > 0:02:30nervous again when the markets open in the next couple of hours. But if

0:02:30 > 0:02:34you look at this last week, it's been really volatile for the Indian

0:02:34 > 0:02:39market. Ever since a budget was announced last week, the Indian

0:02:39 > 0:02:42markets were in red, especially after the government announced at

0:02:42 > 0:02:46the long-term capital gains tax, taxing stocks and that had a real

0:02:46 > 0:02:50impact on Indian stock markets and then the plunge that took place

0:02:50 > 0:02:54earlier this week triggered by the Dow. Investors are worried but if

0:02:54 > 0:02:59you look at the analysts they said the liquidity markets are looking

0:02:59 > 0:03:03good, this is a natural correction because the Indian markets have been

0:03:03 > 0:03:08on a fantastic run over the last 15 months. Over the next 15 to 20 days,

0:03:08 > 0:03:11you could see some sort of correction, but the markets are

0:03:11 > 0:03:17fundamentally strong and should bounce back in terms of growth. They

0:03:17 > 0:03:21are showing potentially strong numbers over the next 15 to 20 days.

0:03:21 > 0:03:25Thank you very much. These wild swings that we have seen

0:03:25 > 0:03:30in the economy have put a renewed focus on volatility in markets, both

0:03:30 > 0:03:36for those who are winning and those who are losing. The BBC's Kim get

0:03:36 > 0:03:37Alston explains.

0:03:37 > 0:03:42During market turmoil it can feel a bit like you're on a boat holding on

0:03:42 > 0:03:46for dear life, but unless you like rollercoasters...What a giddy world

0:03:46 > 0:03:51it is, to think people pay to make it giddy.Chances are you don't love

0:03:51 > 0:03:56that rush of anxiety.Grin and bear it, girls, you've paid for a full

0:03:56 > 0:03:59share of torture. And neither do a lot of investors so

0:03:59 > 0:04:03as markets have matured, they've come up with ways to better predict

0:04:03 > 0:04:08when there will be market ups...The stock market has reached an all-time

0:04:08 > 0:04:11high today's.And downs, particularly since they happen

0:04:11 > 0:04:15faster than ever before.The way things react and the way the markets

0:04:15 > 0:04:18have reacted, they react very quickly now.

0:04:18 > 0:04:23So they created basically a prediction machine. You might have

0:04:23 > 0:04:28heard of it, it's called the VIX, or the fear index, it's basically the

0:04:28 > 0:04:33weather forecast for the stock market. Well, the SNP 500 to be

0:04:33 > 0:04:38exact. A low level is like a calm sea, smooth sailing ahead, but if

0:04:38 > 0:04:43the VIX starts to spike, it's like the first breeze that signals a

0:04:43 > 0:04:48storm is coming. A key thing, much like our weather

0:04:48 > 0:04:52forecast, the VIX isn't entirely accurate. It often thinks the storm

0:04:52 > 0:04:56will be a hurricane when it's really just a drop of water.

0:04:56 > 0:05:03Basically it's a half -- glass half empty index. This is something a

0:05:03 > 0:05:08group of investors have bet on to make quite a bit of money recently.

0:05:08 > 0:05:15The only problem for them is that when it comes in they get caught

0:05:15 > 0:05:16outside without an umbrella.

0:05:16 > 0:05:22The Olympics kick in Pyeongchang today. While much of the news has

0:05:22 > 0:05:27been dominated by North Korea's participation, the event will

0:05:27 > 0:05:33deliver a boost to the South Korean economy -- kick off. Soul has spent

0:05:33 > 0:05:36$12.5 billion to build Olympic facilities and one estimate says the

0:05:36 > 0:05:44event could bring South Korea nearly $40 billion in economic benefits by

0:05:44 > 0:05:47attracting additional 1 million foreign tourists each year for a

0:05:47 > 0:05:52decade -- Seoul. Earlier I spoke to a career expert

0:05:52 > 0:05:58and professor at King's Cup London. -- Korea. I asked him if those

0:05:58 > 0:06:02numbers were a bit optimistic -- King's Cup London.

0:06:02 > 0:06:07I think that South Korea could benefit greatly. -- Kings College

0:06:07 > 0:06:15London. Looking at other cities, like Naga know in Japan, they have

0:06:15 > 0:06:22had boosts in tourism amongst Australia and Southeast Asia so the

0:06:22 > 0:06:29same could happen in Pyeongchang. -- Nagano.Last night the North Koreans

0:06:29 > 0:06:32had a military parade that was smaller, they are on a charm

0:06:32 > 0:06:38offensive it seems, but tourism could be jeopardised if tensions

0:06:38 > 0:06:42remain high? That's true but after the 2002 World

0:06:42 > 0:06:48Cup, the number of tourists in Korea increased from 4.5 million in 2003

0:06:48 > 0:06:57to 70,000,020 16. A fourfold increase -- 17 million in 2016. Many

0:06:57 > 0:07:01in the region don't seem to be as concerned as we are in other parts

0:07:01 > 0:07:06of the world and I think 1 million tourists per year increase is a

0:07:06 > 0:07:08reasonable figure.

0:07:08 > 0:07:12Over the last three days we've been talking a lot about some of the

0:07:12 > 0:07:16hottest topics at Asia's biggest aviation event, the Singapore

0:07:16 > 0:07:20airshow. I've been there and I've been talking to the movers and

0:07:20 > 0:07:24shakers in the industry. I also wondered, why do we have these

0:07:24 > 0:07:30events and what is the appeal? Excuse me, we're from the BBC and

0:07:30 > 0:07:34we're asking people what you think the point of an airshow is. No?What

0:07:34 > 0:07:43is the point of an airshow? Well, it's too... -- to.

0:07:50 > 0:07:55Paris, Dubai, Hamburg and here in Singapore, the world's big four

0:07:55 > 0:07:59airshows but what's the point of one of these shows? Let's find out what

0:07:59 > 0:08:04people think.Look around, get information.It's for people to meet

0:08:04 > 0:08:11and develop business together.We can expand our information about

0:08:11 > 0:08:14what's new. I came over to discuss future

0:08:14 > 0:08:18business. So, for some, airshows are all about

0:08:18 > 0:08:23deals and nobody more so than the plane like Boeing and Airbus. They

0:08:23 > 0:08:30bring their latest jets to try and generate interest from airlines.

0:08:30 > 0:08:34Airshows are also a big chance for companies to announce deals that

0:08:34 > 0:08:38they have just signed and get some headlines, that means handshakes,

0:08:38 > 0:08:43smiles and normally a display of model planes. But airshows are not

0:08:43 > 0:08:48just about selling planes, they're for everyone in the industry and

0:08:48 > 0:08:54this company is touting a system that helps airlines personalise

0:08:54 > 0:08:58in-flight entertainment systems for individual passengers. But way more

0:08:58 > 0:09:05fun is showing off a virtual reality helicopter simulator.

0:09:10 > 0:09:15A fixture at every airshow, the world's military, they are the ones

0:09:15 > 0:09:20with the shiny shoes and the medals. Defence is a huge part of any major

0:09:20 > 0:09:24airshow, it's where people come to show off their latest military

0:09:24 > 0:09:32hardware. The traditional flight display you

0:09:32 > 0:09:37get at an airshow is a subtle or not so subtle way to show the world what

0:09:37 > 0:09:41you're capable of for the military, but for everyone else it's just a

0:09:41 > 0:09:47chance to see planes going very, very fast and doing some tricks.

0:09:57 > 0:10:02A bit too much me in this programme, isn't it crazy that is what you have

0:10:02 > 0:10:07to do when there has been an airshow and there's been no major plane

0:10:07 > 0:10:09announcements -- isn't it?

0:10:11 > 0:10:16Sharp fall on Wall Street affecting Asian markets. Hong Kong started

0:10:16 > 0:10:21trading and is down 2.5%, Japan and Australia also down after the Dow

0:10:21 > 0:10:28fell by over 1000 points overnight. Volatility seems to be continuing.

0:10:28 > 0:10:29That's it for this