21/08/2014 World Business Report

quarantine measures. Those are the latest headlines from

BBC World News. Now for the latest financial news in

World Business Report. Will faster reforms speed up France?

President Hollande seeks to bolster the country's economy, which has

ground to a halt. And because 90% of vegetables in

Singapore are imported, electronics giant Panasonic are literally

branching out, for a price. Welcome to World Business Report.

I'm Sally Bundock. Also in the programme: Rico Hizon

will be joining me from Singapore with the latest economic news from

China and Japan. But first, as fears mount about the

lack of growth in the key economies in Europe every bit of economic data

released is being scrutinized. Today we'll get an indicator of the

health, or otherwise, of the manufacturing sector in Germany and

France when the Purchasing Managers' Index, also known as PMI's, are

released. France's President Hollande is now back from his

holidays and says he is ready to revive the French economy with

reforms that will go faster and further, but he is providing little

detail At the beginning of this month he increased pressure on the

European Central Bank to do more to pick up the sluggish

Germany rejected the call to promote economic growth in Europe, saying

it's already pulling its weight. And the ECB said it would maintain a

wait`and`see mode as it continues to monitor major stimulus measures

taken in June. But with French growth at a standstill and Germany

contracting Duncan Crawford.

The French economy isn't in a good place, just look at this market

stall, it is deserted. Traders here is a people are spending less and

there is a lack of confidence. In six months, the French economy

hasn't grown. It is stagnating and there is concern that France could

be tipped into another recession. This year 's growth forecast has

been slashed and the EU has been warned it won't hit its deficit

target. For the French President, Francois Lunt, it is a challenge and

the same one he has had since being elected, to create jobs, help

business be more competitive `` Hollande. His Socialist government

has tried to bring in austerity measures but many are pessimistic

about whether France, the eurozone's second largest economy,

can bring in the radical changes to fix things. If it doesn't, there is

concern the rest of the eurozone will be affected.

Germany was supposed to pull the eurozone out of stagnant growth, but

the opposite is happening as Steve Evans our correspondent in Berlin

explains. Until the spring, there is a economy

seemed on the right track. Growing steadily, albeit slowly. Then, in

the second quarter of the year, figures show the economy shrunk down

by more than 0.2%. The general idea was that the German economy would

pull a European economy out of the trough. But, it turns out, the

European economy, the rest of it, is in such deep, difficulties that it

is pulling Germany back. The big problem now is those clouds from the

east. If sanctions over Russia worsen, that could tip this a

economy from slow but steady growth into recession.

So that is the state of play in Europe. What about the two biggest

economies in Asia, China and Japan? The latest manufacturing data is out

today as well. Rico Hizon is in Singapore for us.

Let's start with China. China growth slowed. What can you tell us?

That is right. Last month when we were talking to each other we

reported an 18 month high for China's Purchasing Managers' Index.

Growth this August has slowed to a three`month low as output and new

orders have moderated. This shows that the growth in the China economy

continues to be uneven. The index slipped to 50.3 from 51.7 in the

month of July. The PMI stayed above the 50 point level that separates

growth in activity from contraction. Overall, the data suggest that

economic recovery is continuing `` suggests. Its momentum has slowed.

With conditions looking increasingly unsteady, when speaking with

economists in the region, they say that China needs more stimulus in

the coming months to boost growth and offset the slowdown in the

housing market. So, let's now discuss Japan, we have

spoken about them a lot. Use today? `` news. Good news, the rest in an

increase in exports and domestic demand. This is offering hope that

economic growth is getting back on track after a slump due to the sales

tax increase in April from five after 8%. It is a relief after the

economy shrank in the April`June period by more than 6%. The PMI rose

to 52.4 in August, up from 50.5 in July and it is the fastest expansion

since March. The figures are easing fears that manufacturers would scale

back production after seeing inventory pileup following a tax

hide and this positive data is indeed giving Japanese stocks a

boost in late trade today. Thank you very much Rico Hizon. We will see

you soon. You might think of Panasonic as an

electronics giant. Well, think again. Try veggie farmer. The

Japanese brand that built its name on TVs and DVD players and has

branched out into everything from smart phones to cameras is now

growing lettuces and radishes in Singapore. Ali Moore discovered.

No, it's not a television or a DVD player, in fact there isn't an

electrical wire inside, it is our letters, a premium Japanese variety,

but still a vegetable, grown by Panasonic. This is Singapore's first

licensed indoor vegetable farm, the temperature, humidity and level of

oxygen, everything, is carefully controlled. There are no pesticides

in the soil and there are special lamps to simulate the rays of the

sun. And, there is one other thing, the plants are played special music

to help them grow. Before entering, you need to put this mask on. Every

plant counts. We treat them like our kids. Like babies. Yes. We give them

tender loving care. For manager Alfred Tan this is a labour of love.

The factory grows three different varieties of vegetables right now

with the aim of expanding to 30. But with so much tender loving care,

there is a pricetag to match. How affordable and sustainable is this

type of farming? We are targeting premium crops kind of market and

then definitely, you know, it is definitely affordable by everyone.

If you are in the premium range? That is right. Can you see a time

when this is not just for premium crops? We don't want to rule out the

possibility. More than 90% of the vegetables eaten in Singapore are

imported, so the aim is to try to help the islands become more food

self`sufficient and of course to make money. Panasonic sees big

potential in agribusiness and points to growing populations and

increasing concerns over food safety and quality. They are starting

small, but thinking big. Our correspondent in Singapore. I

wonder if there will be some Panasonic branding on the radishes.

In other news: Treasury Wine Estates has reported its first annual loss

due to slower sales in China and oversupply in the US market. The

Australian wine maker posted a net loss $94 million US. Slow sales last

year led to the group destroying thousands of bottles of excess wine

at its US division. The firm, which is much sought after by two private

equity groups, has been struggling in several of its markets. It has

been a big story in recent weeks in the market. Russia's consumer safety

agency orders the closure of the American fast food chain,

McDonald's, in Moscow, due to what it says are numerous violations of

sanitary regulations. McDonald's says it's studying the complaints.

Computer giant Hewlett`Packard has reported a sharp fall in profit

despite a rise in revenue helped by improved computer sales. The firm

reported $985 million dollars profit compared to $1.39 billion a year ago

for the three months to the end of July.

Still, the growing sign is seeing some growth. To the financial

markets. Let's look at how things are going. A lot for investors to

judge us. Japan is up. Hong Kong is down almost 1%. We had dismal news

from China, remember, about manufacturing. The yeah is very

weak, helping Japan with export shares. `` yen. That is the close in

the caddie states and that is it from World Business Report. I will

see you soon as we review the papers. Stay with us.

Hello again. Students from England, Northern Ireland and Wales are set

to get their GCSE grades today, while schools in England are bracing

themselves for a volatile year of results following significant

changes to