:00:00. > :00:15.Now the latest financial news with the World Business Report.
:00:16. > :00:19.A sharp 3% drop for China's stock markets when they opened today.
:00:20. > :00:24.Now shares are rising as investors worldwide track the volatility.
:00:25. > :00:28.And the sun may be setting on solar power in Las Vegas
:00:29. > :00:38.following a move by the energy regulator to cut subsidies.
:00:39. > :00:42.Welcome to World Business Report. I'm Sally Bundock.
:00:43. > :00:45.Also in the programme, we will reveal to you new technology that
:00:46. > :00:54.I will say no more than that. You have to stay with us.
:00:55. > :00:56.Stock markets in China have recovered after opening more
:00:57. > :01:00.Traders described the initial losses as panic selling following
:01:01. > :01:04.the suspension of trade on Monday, when shares plunged by 7% and
:01:05. > :01:11.The falls in China, after the publication of weak manufacturing
:01:12. > :01:19.Markets across Asia, Europe and the United States all suffered losses.
:01:20. > :01:28.stockmarkets in the US closed down more than 1.5% on
:01:29. > :01:34.Germany was worst hit, with its main exchange in Frankfurt
:01:35. > :01:39.While in London, the FTSE 100 index of leading shares
:01:40. > :01:44.After the markets closed in New York, our correspondent
:01:45. > :01:59.These were not the kind of fireworks traders wanted to seek to bring in
:02:00. > :02:05.2016. The market in the United States out of two a rocky start. The
:02:06. > :02:13.Dow Jones was down 400 points, although it recovered slightly,
:02:14. > :02:17.closing down 1.6%, more than 270 points lower. The worst start to the
:02:18. > :02:23.year since 2008. Many stocks fell as a result of the sell-off from big
:02:24. > :02:29.names like I was on and Facebook. -- was on. There was a potential
:02:30. > :02:34.slowdown in China, which is worrying investors, as well as rising
:02:35. > :02:41.geopolitical tensions between Saudi Arabia and Iran. This is life
:02:42. > :02:43.traders talking about the word volatility, and all eyes now turn to
:02:44. > :02:45.China to see what will happen next. So, let's take a look at how things
:02:46. > :02:56.are shaping up at the moment. The Nikkei down slightly, so a
:02:57. > :03:01.recovery from yesterday's 3% loss at close. The Hong Kong down half a
:03:02. > :03:06.percent. The oil price edging higher today. Oil is very sensitive to what
:03:07. > :03:13.is going on with regards to Saudi Arabia and Iran. That is on the
:03:14. > :03:15.minds of investors. Safe havens like the yen in Japan becoming
:03:16. > :03:16.attractive. I'm joined by Alicia Herrera Garcia,
:03:17. > :03:28.chief economist at Asia Pacific Thank you for being on the
:03:29. > :03:41.programme. Give us your reaction to yesterday's volatility and what is
:03:42. > :03:45.going on. Yesterday was not the only time this happens in the last few
:03:46. > :03:50.months. There was a large fall in August. We have seen quite a few
:03:51. > :03:56.even smaller throughout the year, starting late June in 2015. This is
:03:57. > :04:04.just one more, and it does reflect an economy that is going down. I
:04:05. > :04:10.would not over estimate the overall outcome yesterday. It is more than
:04:11. > :04:15.that. It boils down to Chinese operations being over leveraged, and
:04:16. > :04:21.everybody tried to rush out of those. Many of those corporate 's,
:04:22. > :04:27.their CEOs are big stakeholders of other corporations in China, said
:04:28. > :04:35.they want to exit. Why haven't they done that before? Simply because it
:04:36. > :04:41.was very hard to do so. We also note now there was a margin or window of
:04:42. > :04:46.opportunity to exit, and they have used it up. What is happening in
:04:47. > :04:52.this new government intervention popping up the market again, or
:04:53. > :04:57.asking those corporations and CEOs to intervene to buy back stocks, it
:04:58. > :05:03.is basically the government against all. The rest want to exit and they
:05:04. > :05:06.are sometimes not allowed. Sometimes they find a way to do it, and that
:05:07. > :05:11.is what they did yesterday, they exited. Obviously we are seeing the
:05:12. > :05:16.impact of China trying to manage its own markets and various
:05:17. > :05:21.interventions as you have mentioned and the effects of that. At the end
:05:22. > :05:32.of the day, at some point, China must allow its market to operate
:05:33. > :05:36.freely, surely? I don't think the Chinese government really believe
:05:37. > :05:45.they have to let the markets operate. I think they actually are
:05:46. > :05:54.increasing their intervention. We can look at the exchange rate, and
:05:55. > :06:00.again, between Hong Kong this is widening. Domestic league and even
:06:01. > :06:05.in Hong Kong, I don't think we are seeing any realisation that the
:06:06. > :06:11.market should play a bigger role in China so far. -- domestically. That
:06:12. > :06:18.is why we have these he cups and movement. To my mind, 2016 would be
:06:19. > :06:22.more volatile because of the recent things are just mentioned, and
:06:23. > :06:27.beware the exchange rate. That is where we may have the biggest
:06:28. > :06:30.surprise. We have not much time left, I think you for your thoughts.
:06:31. > :06:33.Good to get your perspective. -- thank you.
:06:34. > :06:35.There's been a boom in the use of solar energy
:06:36. > :06:38.in the United States, and nearly 5 million homes have
:06:39. > :06:42.The city of Las Vegas has been one of the fastest-growing users
:06:43. > :06:45.But a recent move to cut the payments solar homeowners get
:06:46. > :06:52.Our technology correspondent Rory Cellan-Jones is in Las Vegas.
:06:53. > :07:02.It is the global capital of excess, a city in a desert sucking up water
:07:03. > :07:07.and energy like it is going out of fashion. But here is something
:07:08. > :07:13.surprising about Las Vegas, it is also a pioneer in America's solar
:07:14. > :07:23.energy boom. The solar powered City Hall is one example. The mentally
:07:24. > :07:31.they is another. -- Mandalay Bay. The cost of panels and installation
:07:32. > :07:35.have edged down the overall cost of power. It is no longer a big premium
:07:36. > :07:40.to buy solar power in Nevada. Generous payments back into the grid
:07:41. > :07:43.have made it attractive for thousands of households across the
:07:44. > :07:49.city to have solar panels installed. All of this activity has suddenly
:07:50. > :07:53.stopped. Such has been the boom in solar energy that around twice as
:07:54. > :07:56.many people are now employed in the industry is working in coal mining
:07:57. > :08:02.in the United States. But suddenly there is a backlash. A recent ruling
:08:03. > :08:11.by the energy regulator that the economics of putting solar panels on
:08:12. > :08:14.your roof now look questionable. Nirvana's monopoly energy company
:08:15. > :08:17.added people with solar panels were effectively being subsidised by
:08:18. > :08:23.their neighbours who do not have them. The regulator agreed. --
:08:24. > :08:28.Nevada. We have one on this, that has gone solid just recently. This
:08:29. > :08:33.man has followed the trend of his neighbours in a Las Vegas suburb and
:08:34. > :08:39.gone soul at the wrong time. It has surprised us. -- seller. The panels
:08:40. > :08:45.have only been on the roof less than a month and they have already yanked
:08:46. > :08:49.the rug out from under us. That is what is happening as far as Las
:08:50. > :08:51.Vegas is concerned. The annual technology show is happening there
:08:52. > :08:52.as well. Now, as promised, you're
:08:53. > :08:54.about to get a glimpse of the future - it certainly is a
:08:55. > :08:57.remarkable innovation-in-progress. LG Display has been working on a
:08:58. > :09:00.fully flexible screen for some time now, but it's at this year's CES
:09:01. > :09:03.show that's under way in Las Vegas that the BBC has been given the
:09:04. > :09:15.exclusive first hands-on access. This is from LG Display, the first
:09:16. > :09:20.fully flexible LED screen. You can roll it, and the picture stays in
:09:21. > :09:27.high-definition Advantest equality. The screen is 18 inches. It could be
:09:28. > :09:33.85 inches soon. Rather than having a TV taking up space, when you have
:09:34. > :09:37.watched TV, you can roll it up, put it in the cupboard, and never see it
:09:38. > :09:41.again. The screen is a work in progress. You can only wallet in one
:09:42. > :09:48.direction. If you are too rough, some of the individual axles die
:09:49. > :09:53.easily. -- pixels. It means there are pieces missing from the picture.
:09:54. > :09:58.Why would someone need a flexible screen like this? Today you are
:09:59. > :10:03.watching an 18 inch prototype, but imagine you have a larger size,
:10:04. > :10:08.larger than a 25 inch, and you can roll up your TV when you do not need
:10:09. > :10:15.it -- 85. You can still look at your beautiful wallpapers. This is just a
:10:16. > :10:22.concept at the moment. It is certainly an interesting side of
:10:23. > :10:25.what may be the future of TV. There you have it, a TV you can roll
:10:26. > :10:28.up. See you later.