09/02/2018 Asia Business Report

for killing Western hostages have

been captured by Kurdish

fighters in Syria.

They're alleged to be associates

of the man dubbed Jihadi John.

Now on BBC News all the latest

business news live from Singapore.

Asian markets head south after

another punishing session on Wall

Street.

And flying high but two were? We

find out why businesses and

spectators flocked to edge shows. --

airshow is.

Welcome to Asia Business Report live

from Singapore with me, Mariko Oi.

We start with markets and we had

another volatile trading day of the

night, Wall Street ended the day

practically in freefall and now

we're seeing Asian shares down as

well. Monica Miller has the latest.

Monica, wow, what a week?

It's been

intense. The Asian markets are

taking Wall Street's lead after the

Dow and S&P 500 are in correction

territory, plunging 10% on their

high in January and as we see here

Tokyo started down 3%, it's gained a

bit of movement there, the all

Ordinaries were down today. The Hang

Seng is just opening, it closed down

yesterday down as well. If we can

look at what happened in the US,

again it just sank right to the

bottom. The Dow Jones industrial is

now down below 24,000, closing more

than 4% down. SNP 500 and NASDAQ as

well. It's been a nerve shattering

kind of weak but there's one rally

that would have made bigger news on

any other date and that's Twitter,

Twitter has made a profit since the

first time it started trading

publicly since 2013 -- day. We will

keep an eye on the rest of the Asian

markets for today but what's going

to happen with India? Thinking about

how that's going to impact... Right

now we are going to speak to our

correspondent in them by.

Indian

markets normally take a cue from the

global markets, especially the Asian

markets, given the Dow has plunged

again today, the investors would be

nervous again when the markets open

in the next couple of hours. But if

you look at this last week, it's

been really volatile for the Indian

market. Ever since a budget was

announced last week, the Indian

markets were in red, especially

after the government announced at

the long-term capital gains tax,

taxing stocks and that had a real

impact on Indian stock markets and

then the plunge that took place

earlier this week triggered by the

Dow. Investors are worried but if

you look at the analysts they said

the liquidity markets are looking

good, this is a natural correction

because the Indian markets have been

on a fantastic run over the last 15

months. Over the next 15 to 20 days,

you could see some sort of

correction, but the markets are

fundamentally strong and should

bounce back in terms of growth. They

are showing potentially strong

numbers over the next 15 to 20 days.

Thank you very much.

These wild swings that we have seen

in the economy have put a renewed

focus on volatility in markets, both

for those who are winning and those

who are losing. The BBC's Kim get

Alston explains.

During market turmoil it can feel a

bit like you're on a boat holding on

for dear life, but unless you like

rollercoasters...

What a giddy world

it is, to think people pay to make

it giddy.

Chances are you don't love

that rush of anxiety.

Grin and bear

it, girls, you've paid for a full

share of torture.

And neither do a lot of investors so

as markets have matured, they've

come up with ways to better predict

when there will be market ups...

The

stock market has reached an all-time

high today's.

And downs,

particularly since they happen

faster than ever before.

The way

things react and the way the markets

have reacted, they react very

quickly now.

So they created basically a

prediction machine. You might have

heard of it, it's called the VIX, or

the fear index, it's basically the

weather forecast for the stock

market. Well, the SNP 500 to be

exact. A low level is like a calm

sea, smooth sailing ahead, but if

the VIX starts to spike, it's like

the first breeze that signals a

storm is coming.

A key thing, much like our weather

forecast, the VIX isn't entirely

accurate. It often thinks the storm

will be a hurricane when it's really

just a drop of water.

Basically it's a half -- glass half

empty index. This is something a

group of investors have bet on to

make quite a bit of money recently.

The only problem for them is that

when it comes in they get caught

outside without an umbrella.

The Olympics kick in Pyeongchang

today. While much of the news has

been dominated by North Korea's

participation, the event will

deliver a boost to the South Korean

economy -- kick off. Soul has spent

$12.5 billion to build Olympic

facilities and one estimate says the

event could bring South Korea nearly

$40 billion in economic benefits by

attracting additional 1 million

foreign tourists each year for a

decade -- Seoul.

Earlier I spoke to a career expert

and professor at King's Cup London.

-- Korea. I asked him if those

numbers were a bit optimistic --

King's Cup London.

I think that South Korea could

benefit greatly. -- Kings College

London. Looking at other cities,

like Naga know in Japan, they have

had boosts in tourism amongst

Australia and Southeast Asia so the

same could happen in Pyeongchang. --

Nagano.

Last night the North Koreans

had a military parade that was

smaller, they are on a charm

offensive it seems, but tourism

could be jeopardised if tensions

remain high?

That's true but after the 2002 World

Cup, the number of tourists in Korea

increased from 4.5 million in 2003

to 70,000,020 16. A fourfold

increase -- 17 million in 2016. Many

in the region don't seem to be as

concerned as we are in other parts

of the world and I think 1 million

tourists per year increase is a

reasonable figure.

Over the last three days we've been

talking a lot about some of the

hottest topics at Asia's biggest

aviation event, the Singapore

airshow. I've been there and I've

been talking to the movers and

shakers in the industry. I also

wondered, why do we have these

events and what is the appeal?

Excuse me, we're from the BBC and

we're asking people what you think

the point of an airshow is. No?

What

is the point of an airshow?

Well, it's too... -- to.

Paris, Dubai, Hamburg and here in

Singapore, the world's big four

airshows but what's the point of one

of these shows? Let's find out what

people think.

Look around, get

information.

It's for people to meet

and develop business together.

We

can expand our information about

what's new.

I came over to discuss future

business.

So, for some, airshows are all about

deals and nobody more so than the

plane like Boeing and Airbus. They

bring their latest jets to try and

generate interest from airlines.

Airshows are also a big chance for

companies to announce deals that

they have just signed and get some

headlines, that means handshakes,

smiles and normally a display of

model planes. But airshows are not

just about selling planes, they're

for everyone in the industry and

this company is touting a system

that helps airlines personalise

in-flight entertainment systems for

individual passengers. But way more

fun is showing off a virtual reality

helicopter simulator.

A fixture at every airshow, the

world's military, they are the ones

with the shiny shoes and the medals.

Defence is a huge part of any major

airshow, it's where people come to

show off their latest military

hardware.

The traditional flight display you

get at an airshow is a subtle or not

so subtle way to show the world what

you're capable of for the military,

but for everyone else it's just a

chance to see planes going very,

very fast and doing some tricks.

A bit too much me in this programme,

isn't it crazy that is what you have

to do when there has been an airshow

and there's been no major plane

announcements -- isn't it?

Sharp fall on Wall Street affecting

Asian markets. Hong Kong started

trading and is down 2.5%, Japan and

Australia also down after the Dow

fell by over 1000 points overnight.

Volatility seems to be continuing.

That's it for this