:00:00. > :00:07.container into a Britt Cox in Essex on Saturday. `` Tilbury docks. Now
:00:08. > :00:16.time for all the latest business news from Singapore.
:00:17. > :00:29.The world's biggest listed winemaker posts a 20% fall in profits. And
:00:30. > :00:36.Panasonic is an electronics giant that is branching out in unexpected
:00:37. > :00:48.ways. Welcome to Asia Business Report. The
:00:49. > :00:55.world's biggest listed winemaker and producer of the Treasury wine estate
:00:56. > :01:02.has posted a loss of $100 million, a 20% year`on`year drop. The
:01:03. > :01:05.Australian company is much sought after by two private equity groups.
:01:06. > :01:11.But it has been struggling in some markets.
:01:12. > :01:17.Treasury wine estates is behind Australia's most recognised
:01:18. > :01:23.winemaker, as well as several other well`known brands. It is much in
:01:24. > :01:31.demand. A private equity group is bidding, and so is another unnamed
:01:32. > :01:38.investment house. They have offered over $3 billion. That is in spite of
:01:39. > :01:43.a turbulent year. Increased competition in its home market in
:01:44. > :01:45.Australia is just one challenge. It has also been hit by the
:01:46. > :01:52.government's austerity measures in China. The company last year said it
:01:53. > :01:57.expected sales to triple to 500 million cases per year by 2023. But
:01:58. > :02:04.the government's anticorruption drive has slowed demand for
:02:05. > :02:08.high`priced wines. The company is also having tough times and the US.
:02:09. > :02:15.Last year it was forced to destroy tens of millions of wine that it
:02:16. > :02:20.could not sell. That is not stopping private equity firms putting the
:02:21. > :02:23.business in their sights. But the interest is conditional and are
:02:24. > :02:27.still needs to undergo due diligence. For its part, the
:02:28. > :02:36.management has been trying to discern the company around. I spoke
:02:37. > :02:42.with a market strategist at IG markets in Melbourne to ask him for
:02:43. > :02:48.his take on the firm's results. They are probably slightly
:02:49. > :02:53.disappointing. There was an expected loss that came in at $100 million.
:02:54. > :02:59.If we look at the underlying number, $12 million profit. It was
:03:00. > :03:04.slightly disappointing. It is coming out at the Australian arm. And also
:03:05. > :03:13.Asia. They have seen significant slowdown. How will the disappointing
:03:14. > :03:19.numbers impact the bidding war? An interesting question. I would assume
:03:20. > :03:31.that this would take the heat out of any bidding wars. The Asian arm has
:03:32. > :03:38.probably called by $11 million. That suggests the offer would be fair
:03:39. > :03:41.value. We are seeing a bit of a hit that could increase out of it. We
:03:42. > :03:52.will have to wait and see what happens. Briefly, what about
:03:53. > :03:59.China's policies on extravagance? Has this impacted the results? It's
:04:00. > :04:10.partly has, there is no doubt there has been a slowdown in cases. There
:04:11. > :04:14.is also a really sharp decline in sales at the back end of the
:04:15. > :04:19.financial year. In other business news,
:04:20. > :04:25.Hewlett`Packard has beaten expectations to post a 1% rise in
:04:26. > :04:31.its third quarter revenue to $27.6 billion. It has been undergoing a
:04:32. > :04:37.global restructuring amid slower demand for its desktop computers.
:04:38. > :04:41.The chief executive said her confidence in the turnaround was
:04:42. > :04:47.strong. The taxi hire a service Uber has
:04:48. > :04:54.launched a grocery delivery service in the United States. This is the
:04:55. > :05:01.red smartphone application. It covers more than 100 items. The
:05:02. > :05:04.products are competitively priced. It is an experiment and available
:05:05. > :05:13.only in America for the moment. While millions of people and their
:05:14. > :05:19.products, this is not a household name.
:05:20. > :05:24.But they are being watched by Asia and the US. It supplies many of the
:05:25. > :05:28.toys, clothes and other goods for places like Walmart and target. The
:05:29. > :05:32.results will not only show how it is performing, but they will be a guide
:05:33. > :05:37.to the health of American retailers. When they are doing well, they order
:05:38. > :05:42.more. I asked what we should expect from the company's results. We might
:05:43. > :05:47.be surprised. Most people do not think this will
:05:48. > :05:55.have been the best six months. Analysts are expecting very modest
:05:56. > :06:00.growth. An operating profit of 1%. Even a decline. That is due to a
:06:01. > :06:05.variety of factors. America saw unseasonably cold weather in the
:06:06. > :06:11.first few months of the year. That could put off shoppers. We have also
:06:12. > :06:19.had a number of high`profile ante Chinese protests in factories in
:06:20. > :06:22.Vietnam. Those factors delayed shipments to America. That is
:06:23. > :06:28.expected to turn out in the earnings results. Traditionally the second
:06:29. > :06:36.half of the year is much stronger for retailers. Companies that source
:06:37. > :06:41.for them. We have to see how they get on in the coming months. For
:06:42. > :06:46.example, the back`to`school season. People tend to shop and much more.
:06:47. > :06:50.And also Christmas and the holiday season. We will be getting an
:06:51. > :06:55.indication from them of how they are doing in the second half of the
:06:56. > :06:58.year. For the first time, they will not be able to count on
:06:59. > :07:04.contributions from their brand management unit. That unit was sent
:07:05. > :07:07.off to a second business on the Hong Kong stock exchange. That
:07:08. > :07:13.contributes quite a lot to the bottomline. We will have to see.
:07:14. > :07:22.You might think of Panasonic as an electronics giant. It began. Try
:07:23. > :07:25.purchased `` vegetable farmer. It has branched out into everything
:07:26. > :07:32.from smartphones the cameras and is now growing letters
:07:33. > :07:36.Singapore. It is not a television or a DVD
:07:37. > :07:44.player. In fact, there is not an electrical wire inside. It is a
:07:45. > :07:48.lettuce. A premium Japanese variety. It was grown by Panasonic. This is
:07:49. > :07:55.Singapore's first licensed indoor vegetable farm. Everything is
:07:56. > :08:00.carefully controlled. There are no pesticides in the
:08:01. > :08:07.special lamps to simulate the rays of the sun. And there is one other
:08:08. > :08:12.thing. They are played special music to help them grow. You need to put
:08:13. > :08:29.the mask and her net on. Every plant, we treat them like
:08:30. > :08:35.children. Like babies. There is a lot of tender, loving care. For the
:08:36. > :08:37.manager, this is a labour of love. Factory grows three different
:08:38. > :08:41.varieties of vegetables right now, with the aim of expanding to 30. It
:08:42. > :08:48.would so much tender loving care, there is a pricetag to match. How
:08:49. > :08:53.affordable and sustainable is this type of farming? We are targeting to
:08:54. > :09:04.premium crops. It is affordable. If you are in the
:09:05. > :09:07.premium range? That is right. Can you see a day when this is not
:09:08. > :09:08.for premium crops? We do not want to for premium crops? We do not want to
:09:09. > :09:21.90% of the vegetables eaten in Singapore are imported. The aim is
:09:22. > :09:27.make money. Panasonic sees big potential in agriculture. Points to
:09:28. > :09:31.growing populations and increasing concerns over food safety and
:09:32. > :09:40.quality. They are starting small but thinking big. We will start in
:09:41. > :09:46.Singapore. In the future, we want to expand to other countries in Asia,
:09:47. > :09:54.such as Vietnam, Thailand and Indonesia. Panasonic is expert at
:09:55. > :09:57.automated factory systems. And it is those skills the company is
:09:58. > :10:01.transferring to vegetables. Perhaps one day the brand will be as
:10:02. > :10:06.synonymous as radishes as it is with TVs.
:10:07. > :10:17.Before we go, a quick look at the markets. Most originals are in
:10:18. > :10:20.positive territorial. After investors were given reason to
:10:21. > :10:30.believe the central bank is in no rush to raise the cost of borrowing.
:10:31. > :10:41.Thank you for investing your time with us. Goodbye for now.
:10:42. > :10:53.Here are the headlines: The Pentagon has revealed a secret mission this
:10:54. > :10:59.summer failed to find hostages captured by ISIS this summer.
:11:00. > :11:01.Funerals have been held for the wife and child of the senior Hamas leader
:11:02. > :11:02.killed by