0:00:00 > 0:00:00its recruitment procedures.
0:00:00 > 0:00:05Now on BBC News all the latest business news live from Singapore.
0:00:15 > 0:00:22Is the wild ride over or is it just the beginning? We find out where the
0:00:22 > 0:00:29global markets may end after the volatility of last week. And and
0:00:29 > 0:00:40enduring sports legacy. We find out about triathlon's plans for Asia.
0:00:40 > 0:00:47It's Monday, everyone. Good morning, Asia. Hello, world. Thank you for
0:00:47 > 0:00:51joining us for this edition of Asia Business Report. We begin the
0:00:51 > 0:00:55programme with the Asian markets that are offered from heavy selling
0:00:55 > 0:00:58last week following volatility on Wall Street. We had the bench mark
0:00:58 > 0:01:03indices in Japan, Hong Kong and Shanghai falling at least 10% from
0:01:03 > 0:01:10recent highs. Chinese equities in particular were under pressure,
0:01:10 > 0:01:14partly due to the weakening of their currency. Should we be bracing
0:01:14 > 0:01:22ourselves for another wild ride this week? I asked that question earlier.
0:01:22 > 0:01:25Investors seem to be responding to increased expectation that in
0:01:25 > 0:01:31flirtation will pick up -- inflation will pick up. The strength that we
0:01:31 > 0:01:37are seeing in global economy that is driving market and as we may be in
0:01:37 > 0:01:40the midst of this shift, I expect investors will see more volatility
0:01:40 > 0:01:45that has the workers went through the market.Inflation and potential
0:01:45 > 0:01:49increases in interest rates are basically feel all of this
0:01:49 > 0:01:54volatility in the stock market over the last week. On Wednesday, you
0:01:54 > 0:01:59have the consumer price index coming up in January in the United States.
0:01:59 > 0:02:04Could this add more fuel to the fire?It could add more fuel to the
0:02:04 > 0:02:08fire or it could dampen it somewhat if we saw a softer than expected
0:02:08 > 0:02:11reading. Traffic returns to the issue that we will not see any real
0:02:11 > 0:02:15closure in terms of this debate as to what is driving markets over the
0:02:15 > 0:02:20next several days and I don't think that the CPI is going to do Edi
0:02:20 > 0:02:23there. As the volatility works its way through I think that investors
0:02:23 > 0:02:27will be somewhat more defensive. When we look across currency, I
0:02:27 > 0:02:30think that means that nondollar safe havens will outperform the smaller
0:02:30 > 0:02:35and riskier currencies.Last year, many economists were predicting
0:02:35 > 0:02:40three or four more interest rate hikes from the Fed in 2018. At that
0:02:40 > 0:02:47time, the market didn't move. Why the reaction now?That is an
0:02:47 > 0:02:50interesting question as we have been seeing rises in yields for sometime.
0:02:50 > 0:02:55I think when it comes down to is the difference in terms of what is
0:02:55 > 0:02:59motivating that rise. If you had asked most investors several weeks
0:02:59 > 0:03:05ago what was driving, they would say was growth expectations and that is
0:03:05 > 0:03:09the ninth of the market. It is probably less benign if risk arises,
0:03:09 > 0:03:12is volatility arises and if investors are more concerned with
0:03:12 > 0:03:17inflation.Briefly, how much of this volatility on stocks is due to the
0:03:17 > 0:03:24weakening dollar and stocks being affected in China by their currency?
0:03:24 > 0:03:29I think it is circular. A large component is both each market drives
0:03:29 > 0:03:43the other.Remember the airbag maker Takata? There are reports that its
0:03:43 > 0:03:47US unit has reached a settlement to end their bankruptcy. I'm joined now
0:03:47 > 0:03:52by our colleague.Is this a good thing? It is and it is not,
0:03:52 > 0:03:57depending on who you why. Basically, the US unit of the company was
0:03:57 > 0:04:01gearing up for a court fight this week to get a judge a judge's
0:04:01 > 0:04:05approval for its plans to exit bankruptcy because there has been
0:04:05 > 0:04:09strong opposition from injured drivers as well as creditors. There
0:04:09 > 0:04:15have been hundreds of injuries related to these airbags. They also
0:04:15 > 0:04:21caused at least 21 deaths around the world. Over a dozen carmakers as
0:04:21 > 0:04:26well is the new owner of Takata's air bag business, they have managed
0:04:26 > 0:04:31to agree a deal with them over the weekend. They will establish a trust
0:04:31 > 0:04:35to pay compensation and if the agreement is approved by the US
0:04:35 > 0:04:38bankruptcy court it will mean injured drivers will not be allowed
0:04:38 > 0:04:42to sue the carmaker. They will monitor whether they gets approved.
0:04:42 > 0:04:46We will have to wait and see if this will push through. Thank you very
0:04:46 > 0:04:52much. India's latest Federal budget has drawn criticism from luxury
0:04:52 > 0:04:58carmakers. The government has increased taxes for foreign
0:04:58 > 0:05:02automakers and that has affected global brands like Audi, Mercedes
0:05:02 > 0:05:07and others are doing business in India. Our reporter speaks from
0:05:07 > 0:05:10their auto show.
0:05:10 > 0:05:16Luxury cars on display in the world's third-largest auto market.
0:05:16 > 0:05:20And emerging young and growing middle class has attracted major
0:05:20 > 0:05:26global high-end auto brands to set up a shop in India. But after doing
0:05:26 > 0:05:30so, with promises of tax incentives from the government, car
0:05:30 > 0:05:34manufacturers say the government backtracked on its plans when it
0:05:34 > 0:05:44announced a plan to hike tax on imported auto-parts. Most global
0:05:44 > 0:05:50luxury brands in India import beer engine in different parts from their
0:05:50 > 0:05:55countries and assemble at here. They do that with a tax benefit promised
0:05:55 > 0:05:58earlier by the government. Now that incentives is withdrawn and
0:05:58 > 0:06:08investment is in doubt. For this man, who heads Germany in India --
0:06:08 > 0:06:12Tarlee in India, this is a blow. Currently very assemble within the
0:06:12 > 0:06:17country almost 95% of its cars sold here. Under the new regime, the cost
0:06:17 > 0:06:25of doing so will rise substantially. splashback we are making substantial
0:06:25 > 0:06:28investments in the country.We believe in the growth of the marker
0:06:28 > 0:06:32but we also need to make sure that there is this growth scenario that
0:06:32 > 0:06:37is now being restricted.Luxury cars make up 2% of the total vehicle
0:06:37 > 0:06:43market in India. Foreign brands here fear that further protectionist
0:06:43 > 0:06:48measures could hurt their expansion plans in the country.Overall in
0:06:48 > 0:06:52context I see that India will have to review their policy as well on
0:06:52 > 0:06:57bringing cars into the country. A short-term hopeful gain of winning a
0:06:57 > 0:07:02few revenues on taxation is not in line with the positioning yourself
0:07:02 > 0:07:08as a market welcoming foreign investors. For now, luxury carmakers
0:07:08 > 0:07:14say they will pass on most of the tax sites to car buyers. And while
0:07:14 > 0:07:18that may be a small difference to those paying thousands of dollars
0:07:18 > 0:07:23for rape high-end car, the shaken trust between foreign brands and the
0:07:23 > 0:07:30government will be a big hurdle to overcome. -- thousands of dollars
0:07:30 > 0:07:33for a high-end car.
0:07:33 > 0:07:41A lawsuit has been filed against the Weinstein Company alleging that it
0:07:41 > 0:07:48failed to protect employees from Harvey Weinstein. Becomes after the
0:07:48 > 0:07:51Mogul's career ended in disgrace over allegations of sexual
0:07:51 > 0:07:56misconduct from over women. A royal commission into Australia's banking
0:07:56 > 0:08:02is set to get under way in Melbourne they have faced scandals and
0:08:02 > 0:08:05concerns over money laundering, legislation accusations that some
0:08:05 > 0:08:09institutions withheld legitimate health-insurance pay-outs and gave
0:08:09 > 0:08:15misleading financial advice. There is no other sporting event in the
0:08:15 > 0:08:20world where athletes and you are a four kilometre swim, a 180 kilometre
0:08:20 > 0:08:26bike ride and a 42 kilometre marathon back-to-back. And did I
0:08:26 > 0:08:34mention a 17 hour limit? Ironman celebrated its 40th anniversary and
0:08:34 > 0:08:39its popularity is growing in the region. It was recently purchased by
0:08:39 > 0:08:47a Chinese company. The chief executive of ironman told us how the
0:08:47 > 0:08:52sport started.Ironman started from the most modest beginnings. 15
0:08:52 > 0:08:59people deciding to do the Waikiki rough water swim, a bike race and
0:08:59 > 0:09:06Marys on on the same day. Since that day in 1978, every year more people
0:09:06 > 0:09:10have crossed a ironman finish line than the year before. We are now
0:09:10 > 0:09:14truly a global sport. We have 235 event weekends in 50 countries
0:09:14 > 0:09:21around the world. Despite us being the dominant global player we think
0:09:21 > 0:09:25that we have about 13% of the global mass participation market and we
0:09:25 > 0:09:29think there is an opportunity for us to continue to grow are creating new
0:09:29 > 0:09:33events and by acquiring other events.
0:09:37 > 0:09:44He has been extremely useful in the Chinese market. He has deep
0:09:44 > 0:09:48connections, not just within the Central government but due to their
0:09:48 > 0:09:53real estate development, they have a presence and relationships in 100
0:09:53 > 0:10:01Chinese cities. Those are helpful for us as we think about getting
0:10:01 > 0:10:04races off the ground, getting roads closed, having direct relationships
0:10:04 > 0:10:12with the cities and with the party is vital and essential in China.And
0:10:12 > 0:10:16in the markets, it could be another week of volatility in Asia. We can
0:10:16 > 0:10:20already see it on the board here. The Hang Seng is currently up by
0:10:20 > 0:10:270.7%. The All Ordinaries is down by 91 points. And the South Korean
0:10:27 > 0:10:28market is currently mixed to lower.