17/07/2014

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:00:00. > :00:00.after a massive police operation to track down people accessing child

:00:00. > :00:00.abuse images online. Now on BBC News all the latest

:00:00. > :00:20.business news live from Singapore. South Korean Japanese social

:00:21. > :00:27.messaging services plans a multibillion dollar share listing,

:00:28. > :00:41.as it expands overseas. China's crackdown on luxury.

:00:42. > :00:47.Thank you for joining us. Before we take a look at lines messaging

:00:48. > :00:51.service, we bring some news just in, `` Lines. The Australian Parliament

:00:52. > :00:57.a short time ago voted to scrap the controversial carbon tax on the

:00:58. > :01:00.country 's big polluters. A major victory for the Conservative Prime

:01:01. > :01:04.Minister Tony Abbott. It creates uncertainty as to how Australia will

:01:05. > :01:08.meet carbon reduction goals. We can bring you more on this issue in the

:01:09. > :01:17.next hour, when we speak to our correspondent, Phil Mercer, in

:01:18. > :01:21.Sydney. Meanwhile, mobile messaging service Line has announced plans

:01:22. > :01:29.offering services in Tokyo, New York, or both. It could be worth

:01:30. > :01:36.upwards of $10 billion. It's competitor was bought by Facebook

:01:37. > :01:40.for $19 billion, Whatsapp. But, are they worth the money? Janet Yellen

:01:41. > :01:47.suggested that some social media valuations were stretched. Our

:01:48. > :01:52.correspondent explains why messaging services are so popular in Asia. It

:01:53. > :01:56.is the future, if you look at it. When it comes to Asia, Mobile is the

:01:57. > :02:00.first screen. When we will look `` when we look at the listing from

:02:01. > :02:04.Line, I'm not surprised this company is doing well. It has half $1

:02:05. > :02:10.billion of revenue. That is a major footprint in Asia. If you look at

:02:11. > :02:15.all the analyst reports, the revenue from all of these applications is

:02:16. > :02:18.going to grow to about $25 billion in the next three years. You are

:02:19. > :02:22.optimistic about social media applications, what are the risks and

:02:23. > :02:26.the downside? I don't think there is any, these are the people and

:02:27. > :02:30.consumers who have never used messaging applications before. It's

:02:31. > :02:33.an opportunity for all of them to use applications, and for

:02:34. > :02:39.advertisers to advertise and reach consumers. The engagement is very

:02:40. > :02:42.high on this. A lot of telecommunications companies here in

:02:43. > :02:46.Asia are up in arms, they are complaining they are losing business

:02:47. > :02:50.to be used messaging services. They are losing business because they are

:02:51. > :02:55.not innovative enough to come up with new services. Basically, now,

:02:56. > :03:01.the major footprint that they want to get into is the US market? Yes,

:03:02. > :03:06.that is the purpose of the listing, to really expand the operation out

:03:07. > :03:11.of the US, the big advertising dollars actually set in US and

:03:12. > :03:17.Europe. Line is looking to IPO to help them without. Will it ever go

:03:18. > :03:25.the same way as Line and go international? It will, and they are

:03:26. > :03:31.doing that now. They have a huge marketing campaign, especially in

:03:32. > :03:37.Spain, Mexico and Brazil. They have 400 million users. I believe that it

:03:38. > :03:41.is among the top three of the messaging applications, after

:03:42. > :03:45.Whatsapp and Line, it could go on to expand and be a formidable

:03:46. > :03:50.competition. In other business News, US media

:03:51. > :03:54.giant Time Warner has rejected an initial takeover bid from rival 21st

:03:55. > :04:01.Century Fox. The proposal by the firm, owned by media mogul Rupert

:04:02. > :04:05.Murdoch, was made by last month `` was made last month. But first

:04:06. > :04:12.century Fox says they are not in talks with Time Warner about

:04:13. > :04:18.pursuing the deal further. EBay has announced profits of 707 $6 million.

:04:19. > :04:25.Shares in the company were up by 1.5%, in after hours trading in New

:04:26. > :04:30.York. `` Chile comes after a challenging quarter for the firm, in

:04:31. > :04:35.May, the company said that 145 million customer accounts could have

:04:36. > :04:39.been compromised. Apple have agreed to pay as much as $400 million to

:04:40. > :04:54.settle a lawsuit following claims that it can `` colluded in fixing

:04:55. > :04:59.the cost of online books. The ruling found that Apple orchestrated a

:05:00. > :05:01.conspiracy with five publishers to artificially raise electronic book

:05:02. > :05:06.prices. Apple has denied any wrongdoing.

:05:07. > :05:10.To Amazon, it appears to be preparing a new subscription service

:05:11. > :05:18.which allows users to download as many Kindle e`book 's as they like.

:05:19. > :05:26.It indicates the available library could equal more than 600,000

:05:27. > :05:30.titles. Kindle would compete with oysters e`book application, but

:05:31. > :05:34.Amazon has deleted the details were now. Fine wines improve with age,

:05:35. > :05:42.but the market for them is not so intent on maturity, but it is the

:05:43. > :05:48.emerging market in China that shows a fondness for new wines. Many wine

:05:49. > :05:52.merchants are looking for growth themselves. Our correspondent found

:05:53. > :05:56.out. At the end of a busy work week, this

:05:57. > :06:01.man likes to relax by meeting his friends, and they usually come

:06:02. > :06:05.here, to this popular wine bar in Singapore, to enjoy a glass of wine

:06:06. > :06:11.or two. He enjoys his wine so much that he has built up a collection at

:06:12. > :06:17.home. I started drinking wine 15 years ago. I have 150 bottles at

:06:18. > :06:22.home. It tastes good, I like it. I have a healthy spread of red and

:06:23. > :06:31.white wines, I have a lot of German ones, Chardonnay from Australia,

:06:32. > :06:36.Bordeaux, Burgundy... It is quite a mix. He is not unusual. He is part

:06:37. > :06:42.of a growing number of consumers in Asia willing to spend on wine. Much

:06:43. > :06:48.is made of the wine market in China. The Chinese now consume the

:06:49. > :06:53.most amount of red wine in the world. Overtaking Europe only last

:06:54. > :06:59.year. 40% of the wine consumed in Asia is outside of China. Southeast

:07:00. > :07:03.Asia is becoming an important market. It has become such a

:07:04. > :07:06.promising market, that an established British wine merchant

:07:07. > :07:11.has set up a sales office in Singapore, in order to cater for the

:07:12. > :07:19.region. It is estimated that 24 million litres of wine every year

:07:20. > :07:25.come into Singapore, and of that, only five million stay here. The

:07:26. > :07:28.rest is exported to all of the other countries in South East Asia.

:07:29. > :07:34.Southeast Asia now accounts for 3% of the firm 's global wine sales.

:07:35. > :07:40.They expect it to grow to 15% of the global business in five years. Wine

:07:41. > :07:42.cellars are looking up markets beyond China, following the nation

:07:43. > :07:48.'s clamp down on corruption, which has hit wine consumption. Wine and

:07:49. > :07:53.spirit firms have reported lower sales because of it. Increasing

:07:54. > :07:57.disposable income, and growing wealth in the region of 600 million

:07:58. > :08:06.people, is now making Southeast Asia a market with the growth potential

:08:07. > :08:14.of wine being uncorked. A European `based firm is selling a

:08:15. > :08:18.stake to a Chinese firm. The Beijing group paid 106 two $5 million for a

:08:19. > :08:23.quarter of the company. Our correspondent caught up with the

:08:24. > :08:27.founder, finding out of China would be the newest frontier. Our business

:08:28. > :08:31.in the UK and in Europe, it is exploding, and we are building in

:08:32. > :08:39.Asia, and China is an important market. China will be doing $5

:08:40. > :08:43.billion in revenue I believe. How tricky is it to source that many

:08:44. > :08:48.coconuts? It is very tricky, and today it is the biggest barrier to

:08:49. > :08:55.entry in this category. Sourcing. We built an incredible supply chain

:08:56. > :08:58.across five countries, with eight manufacturing facilities that we

:08:59. > :09:03.have built. We have this incredible chain that is cracking 1.5 million

:09:04. > :09:06.coconuts a day. That is only the beginning, the current supply

:09:07. > :09:13.footprint will allow us to build the business into $1.6 billion business.

:09:14. > :09:17.By getting water from 5% of the commercially harvested coconuts in

:09:18. > :09:22.the regions of which we produce. Where did they come from? 40% from

:09:23. > :09:27.Brazil, the rest from Mexico, India, Sri Lanka, and the Philippines. I am

:09:28. > :09:31.looking at the wall behind, pictures of Demi Moore, Madonna, they are

:09:32. > :09:36.celebrity investors. Over my shoulder, there is a photo of

:09:37. > :09:40.Rhianna, a brand ambassador for you. How important has the celebrity

:09:41. > :09:44.endorsement been? Critical, when we began the business, everyone

:09:45. > :09:48.believed that it was a fad, small niche. When the dollar invested in

:09:49. > :09:58.the business, putting real dollars into the business, and promoted the

:09:59. > :10:03.brand, as did Matthew McConnachie `` Matthew McConaughey, if they are

:10:04. > :10:10.investing and putting dollars into it, there is something there.

:10:11. > :10:15.Before we go, a quick look at the markets. Asian markets are in

:10:16. > :10:27.positive territory. Share prices rose overnight.

:10:28. > :10:38.Thank you for investing your time with us, goodbye for now.

:10:39. > :10:44.You are watching BBC News. I'm Adnan Nawaz. The top stories this hour.

:10:45. > :10:46.Israel announces a temporary "humanitarian ceasefire" in Gaza,

:10:47. > :10:49.hours after the deaths of four Palestinian boys, killed by an

:10:50. > :10:53.Israeli strike on a beach. President Obama confirms the most wide`ranging

:10:54. > :10:54.US economic sanctions yet on Russia, over its actions in