21/08/2014

Download Subtitles

Transcript

:00:00. > :00:00.quarantine measures. Those are the latest headlines from

:00:00. > :00:00.BBC World News. Now for the latest financial news in

:00:00. > :00:23.World Business Report. Will faster reforms speed up France?

:00:24. > :00:26.President Hollande seeks to bolster the country's economy, which has

:00:27. > :00:28.ground to a halt. And because 90% of vegetables in

:00:29. > :00:29.Singapore are imported, electronics giant Panasonic are literally

:00:30. > :00:48.branching out, for a price. Welcome to World Business Report.

:00:49. > :00:51.I'm Sally Bundock. Also in the programme: Rico Hizon

:00:52. > :00:56.will be joining me from Singapore with the latest economic news from

:00:57. > :01:00.China and Japan. But first, as fears mount about the

:01:01. > :01:03.lack of growth in the key economies in Europe every bit of economic data

:01:04. > :01:05.released is being scrutinized. Today we'll get an indicator of the

:01:06. > :01:08.health, or otherwise, of the manufacturing sector in Germany and

:01:09. > :01:17.France when the Purchasing Managers' Index, also known as PMI's, are

:01:18. > :01:20.released. France's President Hollande is now back from his

:01:21. > :01:23.holidays and says he is ready to revive the French economy with

:01:24. > :01:26.reforms that will go faster and further, but he is providing little

:01:27. > :01:29.detail At the beginning of this month he increased pressure on the

:01:30. > :01:35.European Central Bank to do more to pick up the sluggish

:01:36. > :01:43.Germany rejected the call to promote economic growth in Europe, saying

:01:44. > :01:47.it's already pulling its weight. And the ECB said it would maintain a

:01:48. > :01:50.wait`and`see mode as it continues to monitor major stimulus measures

:01:51. > :01:54.taken in June. But with French growth at a standstill and Germany

:01:55. > :02:08.contracting Duncan Crawford.

:02:09. > :02:13.The French economy isn't in a good place, just look at this market

:02:14. > :02:17.stall, it is deserted. Traders here is a people are spending less and

:02:18. > :02:22.there is a lack of confidence. In six months, the French economy

:02:23. > :02:27.hasn't grown. It is stagnating and there is concern that France could

:02:28. > :02:31.be tipped into another recession. This year 's growth forecast has

:02:32. > :02:35.been slashed and the EU has been warned it won't hit its deficit

:02:36. > :02:39.target. For the French President, Francois Lunt, it is a challenge and

:02:40. > :02:43.the same one he has had since being elected, to create jobs, help

:02:44. > :02:49.business be more competitive `` Hollande. His Socialist government

:02:50. > :02:53.has tried to bring in austerity measures but many are pessimistic

:02:54. > :02:56.about whether France, the eurozone's second largest economy,

:02:57. > :03:00.can bring in the radical changes to fix things. If it doesn't, there is

:03:01. > :03:05.concern the rest of the eurozone will be affected.

:03:06. > :03:08.Germany was supposed to pull the eurozone out of stagnant growth, but

:03:09. > :03:13.the opposite is happening as Steve Evans our correspondent in Berlin

:03:14. > :03:19.explains. Until the spring, there is a economy

:03:20. > :03:22.seemed on the right track. Growing steadily, albeit slowly. Then, in

:03:23. > :03:30.the second quarter of the year, figures show the economy shrunk down

:03:31. > :03:34.by more than 0.2%. The general idea was that the German economy would

:03:35. > :03:38.pull a European economy out of the trough. But, it turns out, the

:03:39. > :03:44.European economy, the rest of it, is in such deep, difficulties that it

:03:45. > :03:50.is pulling Germany back. The big problem now is those clouds from the

:03:51. > :03:54.east. If sanctions over Russia worsen, that could tip this a

:03:55. > :04:01.economy from slow but steady growth into recession.

:04:02. > :04:05.So that is the state of play in Europe. What about the two biggest

:04:06. > :04:08.economies in Asia, China and Japan? The latest manufacturing data is out

:04:09. > :04:15.today as well. Rico Hizon is in Singapore for us.

:04:16. > :04:22.Let's start with China. China growth slowed. What can you tell us?

:04:23. > :04:30.That is right. Last month when we were talking to each other we

:04:31. > :04:34.reported an 18 month high for China's Purchasing Managers' Index.

:04:35. > :04:38.Growth this August has slowed to a three`month low as output and new

:04:39. > :04:46.orders have moderated. This shows that the growth in the China economy

:04:47. > :04:52.continues to be uneven. The index slipped to 50.3 from 51.7 in the

:04:53. > :04:57.month of July. The PMI stayed above the 50 point level that separates

:04:58. > :05:02.growth in activity from contraction. Overall, the data suggest that

:05:03. > :05:09.economic recovery is continuing `` suggests. Its momentum has slowed.

:05:10. > :05:13.With conditions looking increasingly unsteady, when speaking with

:05:14. > :05:19.economists in the region, they say that China needs more stimulus in

:05:20. > :05:23.the coming months to boost growth and offset the slowdown in the

:05:24. > :05:30.housing market. So, let's now discuss Japan, we have

:05:31. > :05:33.spoken about them a lot. Use today? `` news. Good news, the rest in an

:05:34. > :05:39.increase in exports and domestic demand. This is offering hope that

:05:40. > :05:45.economic growth is getting back on track after a slump due to the sales

:05:46. > :05:52.tax increase in April from five after 8%. It is a relief after the

:05:53. > :06:00.economy shrank in the April`June period by more than 6%. The PMI rose

:06:01. > :06:04.to 52.4 in August, up from 50.5 in July and it is the fastest expansion

:06:05. > :06:08.since March. The figures are easing fears that manufacturers would scale

:06:09. > :06:11.back production after seeing inventory pileup following a tax

:06:12. > :06:16.hide and this positive data is indeed giving Japanese stocks a

:06:17. > :06:20.boost in late trade today. Thank you very much Rico Hizon. We will see

:06:21. > :06:23.you soon. You might think of Panasonic as an

:06:24. > :06:26.electronics giant. Well, think again. Try veggie farmer. The

:06:27. > :06:30.Japanese brand that built its name on TVs and DVD players and has

:06:31. > :06:32.branched out into everything from smart phones to cameras is now

:06:33. > :06:45.growing lettuces and radishes in Singapore. Ali Moore discovered.

:06:46. > :06:51.No, it's not a television or a DVD player, in fact there isn't an

:06:52. > :06:54.electrical wire inside, it is our letters, a premium Japanese variety,

:06:55. > :06:56.but still a vegetable, grown by Panasonic. This is Singapore's first

:06:57. > :06:59.licensed indoor vegetable farm, the temperature, humidity and level of

:07:00. > :07:06.oxygen, everything, is carefully controlled. There are no pesticides

:07:07. > :07:13.in the soil and there are special lamps to simulate the rays of the

:07:14. > :07:25.sun. And, there is one other thing, the plants are played special music

:07:26. > :07:33.to help them grow. Before entering, you need to put this mask on. Every

:07:34. > :07:45.plant counts. We treat them like our kids. Like babies. Yes. We give them

:07:46. > :07:48.tender loving care. For manager Alfred Tan this is a labour of love.

:07:49. > :07:54.The factory grows three different varieties of vegetables right now

:07:55. > :07:57.with the aim of expanding to 30. But with so much tender loving care,

:07:58. > :07:59.there is a pricetag to match. How affordable and sustainable is this

:08:00. > :08:03.type of farming? We are targeting premium crops kind of market and

:08:04. > :08:09.then definitely, you know, it is definitely affordable by everyone.

:08:10. > :08:15.If you are in the premium range? That is right. Can you see a time

:08:16. > :08:18.when this is not just for premium crops? We don't want to rule out the

:08:19. > :08:21.possibility. More than 90% of the vegetables eaten in Singapore are

:08:22. > :08:24.imported, so the aim is to try to help the islands become more food

:08:25. > :08:29.self`sufficient and of course to make money. Panasonic sees big

:08:30. > :08:31.potential in agribusiness and points to growing populations and

:08:32. > :08:44.increasing concerns over food safety and quality. They are starting

:08:45. > :08:49.small, but thinking big. Our correspondent in Singapore. I

:08:50. > :08:54.wonder if there will be some Panasonic branding on the radishes.

:08:55. > :08:58.In other news: Treasury Wine Estates has reported its first annual loss

:08:59. > :09:01.due to slower sales in China and oversupply in the US market. The

:09:02. > :09:04.Australian wine maker posted a net loss $94 million US. Slow sales last

:09:05. > :09:07.year led to the group destroying thousands of bottles of excess wine

:09:08. > :09:10.at its US division. The firm, which is much sought after by two private

:09:11. > :09:21.equity groups, has been struggling in several of its markets. It has

:09:22. > :09:25.been a big story in recent weeks in the market. Russia's consumer safety

:09:26. > :09:28.agency orders the closure of the American fast food chain,

:09:29. > :09:30.McDonald's, in Moscow, due to what it says are numerous violations of

:09:31. > :09:33.sanitary regulations. McDonald's says it's studying the complaints.

:09:34. > :09:36.Computer giant Hewlett`Packard has reported a sharp fall in profit

:09:37. > :09:38.despite a rise in revenue helped by improved computer sales. The firm

:09:39. > :09:42.reported $985 million dollars profit compared to $1.39 billion a year ago

:09:43. > :09:56.for the three months to the end of July.

:09:57. > :10:02.Still, the growing sign is seeing some growth. To the financial

:10:03. > :10:07.markets. Let's look at how things are going. A lot for investors to

:10:08. > :10:11.judge us. Japan is up. Hong Kong is down almost 1%. We had dismal news

:10:12. > :10:16.from China, remember, about manufacturing. The yeah is very

:10:17. > :10:21.weak, helping Japan with export shares. `` yen. That is the close in

:10:22. > :10:25.the caddie states and that is it from World Business Report. I will

:10:26. > :10:34.see you soon as we review the papers. Stay with us.

:10:35. > :10:39.Hello again. Students from England, Northern Ireland and Wales are set

:10:40. > :10:42.to get their GCSE grades today, while schools in England are bracing

:10:43. > :10:43.themselves for a volatile year of results following significant

:10:44. > :10:44.changes to