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sleep to flush out waste toxins. Those are the latest headlines from | :00:00. | :00:00. | |
BBC World News, Time now for the money news with Alice and World | :00:00. | :00:00. | |
Business Report. `` time now. China's economy picks up speed, but | :00:00. | :00:23. | |
it is still on track for its slowest year in more than a decade. We will | :00:24. | :00:30. | |
take a look behind the numbers. Plus, $950 and counting. A new | :00:31. | :00:37. | |
record high for Google as shares in the Internet giant amazes Wall | :00:38. | :00:39. | |
Street yet again. A very warm welcome to you, this is | :00:40. | :00:50. | |
World Business Report with me, Alice Baxter. Also coming up in the | :00:51. | :00:54. | |
programme, unfair exchange. Have traders been trying to fix the $5 | :00:55. | :00:59. | |
trillion a day foreign`currency market? We will have the latest on | :01:00. | :01:04. | |
that. But as you've been hearing, in the last couple of hours China has | :01:05. | :01:09. | |
unveiled its growth figures for the third quarter. The world's number | :01:10. | :01:15. | |
two economy grew at a rate of 7.8% between July and September. A slight | :01:16. | :01:19. | |
improvement on the previous quarter and the best figure so far this | :01:20. | :01:24. | |
year. And it is down to improving demand for China's goods around the | :01:25. | :01:28. | |
world and at home, which have boosted factory production and | :01:29. | :01:32. | |
retail sales. It means China is on track to hit the government growth | :01:33. | :01:37. | |
target of 7.5% for this year. Now, that might sound good compared with | :01:38. | :01:41. | |
most major economies, but for China is the weakest growth since 1999. | :01:42. | :01:49. | |
Beijing's trying to rebalance the economy after three decades of | :01:50. | :01:53. | |
surging growth, fuelled by exports and investment. Linda Yueh explains. | :01:54. | :01:59. | |
China's growth is slowing, but is this deliberate? The government | :02:00. | :02:02. | |
wants the country to grow more sustainably, which means rebalancing | :02:03. | :02:08. | |
the economy. Take a look at this, currently spending by households in | :02:09. | :02:12. | |
China accounts for just over a third of all national output. That's half | :02:13. | :02:16. | |
of that of the US. In fact, China has one of the lowest levels of | :02:17. | :02:21. | |
consumption in the world. For most developed economies, like the UK and | :02:22. | :02:26. | |
Japan, it is around two thirds of GDP. But, on the flipside, | :02:27. | :02:30. | |
investment by firms is nearly half of Chinese output. And as you can | :02:31. | :02:34. | |
see that's actually three times higher than the US and the UK. China | :02:35. | :02:40. | |
wants this to change to rely less on investment, as some firms are | :02:41. | :02:43. | |
borrowing too much, which can be risky, and increase consumption, get | :02:44. | :02:48. | |
more of the middle`class to spend by raising their income. By rebalancing | :02:49. | :02:54. | |
in this way the Cheney 's government is aiming to grow a 7.5% this year | :02:55. | :02:58. | |
`` the Chinese government is aiming to grow 7.5 this year, but they hope | :02:59. | :03:04. | |
this will be more sustainable. Managing the slowdown, though, is no | :03:05. | :03:13. | |
easy task. Grace is a senior Chinese economist at JP Morgan and she joins | :03:14. | :03:17. | |
us from our Hong Kong bureau. Thanks very much. Growth in China is | :03:18. | :03:25. | |
picking up, but it is still at its slowest pace since 1999. Y? Grace, I | :03:26. | :03:37. | |
wonder if you can hear me? `` why. Despite the fact China's growth is | :03:38. | :03:43. | |
picking up, it is still at its slowest growth rate since we have | :03:44. | :03:50. | |
seen since 1999. Why is that? This is basically reflecting the fact | :03:51. | :03:55. | |
that after the global financial crisis, China's export sector growth | :03:56. | :03:59. | |
has not been matching what we saw in the previous decade. Therefore the | :04:00. | :04:03. | |
export sector is no longer that strong a driver of growth. At the | :04:04. | :04:08. | |
same time the government is trying to rebalance growth, so as to | :04:09. | :04:13. | |
achieve a more balanced growth support from the consumption and the | :04:14. | :04:18. | |
investment front. If they're doing this successfully then hopefully we | :04:19. | :04:21. | |
will see more sustainable growth in the medium`term. So this is a very | :04:22. | :04:26. | |
deliberate action on the part of the Chinese government, to slow down | :04:27. | :04:29. | |
growth from those double`digit figures we have become used to over | :04:30. | :04:35. | |
the last decade or so. This restructuring and rebalancing | :04:36. | :04:37. | |
towards consumer consumption, domestic consumption? That's exactly | :04:38. | :04:45. | |
the case. And what about this question that still hangs over the | :04:46. | :04:53. | |
reliability of these numbers? Yeah, there is definitely always the | :04:54. | :04:56. | |
question about how reliable the numbers are. I guess the way we tend | :04:57. | :05:01. | |
to counter cheque that is using other indicators, such as the more | :05:02. | :05:06. | |
high`frequency PMI number from the government, as well as from the | :05:07. | :05:10. | |
private sector, as well as other data, which tends to be more | :05:11. | :05:17. | |
reliable, as well as the financial data and also trade data. If you | :05:18. | :05:23. | |
look at that from various angles, it is quite consistent that China's | :05:24. | :05:27. | |
growth was picking up somewhat in the third quarter on both the | :05:28. | :05:32. | |
external side as well as the domestic side. And on that actually | :05:33. | :05:38. | |
the government's clarification of its policy target, as in they want | :05:39. | :05:43. | |
to stabilise growth in July, actually helped quite a bit with | :05:44. | :05:49. | |
regard to the domestic sentiment, and therefore supporting domestic | :05:50. | :05:52. | |
activity overall. It's all about that word, sustainability. Grace, | :05:53. | :05:58. | |
thanks very much. Now, Google, shares there jumped to | :05:59. | :06:07. | |
a new record high of more than $950 in after`hours trading after the | :06:08. | :06:10. | |
Internet giant posted strong results after the Wall Street closing bell. | :06:11. | :06:15. | |
Google made profits of almost $3 billion in the three months to | :06:16. | :06:21. | |
September. That's an increase of 36% on the same period last year, and | :06:22. | :06:26. | |
was actually much better than Wall Street was expecting. It's largely | :06:27. | :06:30. | |
down to strong growth in Internet advertising, but as Rico or now | :06:31. | :06:35. | |
reports from New York, the success is put in the country in that | :06:36. | :06:42. | |
company in the spotlight over its tax arrangements. In the movie The | :06:43. | :06:49. | |
Internship, Google is the cool and hip company that everyone wants to | :06:50. | :06:55. | |
join. Inside this slick campus, some of the world 's most innovative | :06:56. | :06:59. | |
minds exchange their new ideas. Its growth may not be as explosive as it | :07:00. | :07:04. | |
once was, but Google continues to lead the industry with its new | :07:05. | :07:08. | |
products and services. In the fast`growing smart phone market as | :07:09. | :07:11. | |
well its android operating system has been the winner. `` Android. | :07:12. | :07:21. | |
Currently there are over 900 million Android markets in the world. This | :07:22. | :07:24. | |
is the website the majority of people come to when they go to | :07:25. | :07:29. | |
search the Internet. Some people even say let's Google rather than | :07:30. | :07:34. | |
let search the web. And those users attract advertisers, and every time | :07:35. | :07:38. | |
people clicked on an advert Google makes money. But in the technology | :07:39. | :07:44. | |
world the fall from grace can be very fast and hard `` people clicked | :07:45. | :07:51. | |
on. Google has really surged with their Google Now products as you | :07:52. | :07:56. | |
speak to your devices `` click. Also knowing what you want before you | :07:57. | :08:01. | |
even know it. It's a little scary to some people because they are looking | :08:02. | :08:04. | |
at your calendar and your Gmail, and they are figuring out you have a | :08:05. | :08:09. | |
flight coming up, or you care about some sport, and they're providing | :08:10. | :08:12. | |
you with that information before you even think to ask for it. But for a | :08:13. | :08:17. | |
company that seemingly can't do any wrong, it's recently faced heavy | :08:18. | :08:21. | |
criticism for not paying a fair share of corporate tax. While not | :08:22. | :08:26. | |
illegal, Google has been taking advantage of low tax rates in | :08:27. | :08:31. | |
countries like Ireland. Until that's resolved, it's hip and cool image | :08:32. | :08:38. | |
may be less than squeakyclean. Now, The Internship... Sorry, moving | :08:39. | :08:50. | |
on, we want to ask is have traders been fixing the $5 trillion a day | :08:51. | :08:56. | |
foreign exchange market? That's the question regulators are now asking | :08:57. | :08:58. | |
from London to Hong Kong to New York. In the last few hours | :08:59. | :09:04. | |
Bloomberg has reported that the authorities are examining electronic | :09:05. | :09:11. | |
messages sent between senior traders at top banks between the last few | :09:12. | :09:16. | |
years. Sharanjit Leyl has been following this from Singapore. What | :09:17. | :09:20. | |
else do we know about this? Essentially sources are saying that | :09:21. | :09:25. | |
these messages sent by senior bankers, from Barclays, Citigroup, | :09:26. | :09:29. | |
Royal Bank of Scotland and UBS, amongst others, they are being | :09:30. | :09:33. | |
scrutinised, part of the global probe into the manipulation of the | :09:34. | :09:39. | |
foreign exchange market. According to the Bloomberg report, the senior | :09:40. | :09:44. | |
bankers over the last three years exchanged messages through their | :09:45. | :09:46. | |
Bloomberg terminals outlining the tile of their positions and client | :09:47. | :09:54. | |
orders and made trades. Investigators are looking into | :09:55. | :09:58. | |
whether those messages are mounted as attempts to manipulate the | :09:59. | :10:02. | |
market. We know Barclays, Citigroup, Royal Bank of Scotland and UBS | :10:03. | :10:06. | |
account for 40% of trade in the foreign exchange market and the | :10:07. | :10:11. | |
U.K.'s financial conduct authority this week opened the formal probe | :10:12. | :10:15. | |
into currency trading, which essentially joined a global | :10:16. | :10:18. | |
investigation that involves regulators in the US, the European | :10:19. | :10:23. | |
Union, Switzerland and Hong Kong. This enquiry comes as regulators | :10:24. | :10:25. | |
around the world basically examine the possible abuse of financial | :10:26. | :10:30. | |
benchmarks by companies that actually play a crucial role in | :10:31. | :10:34. | |
setting them. We know Royal Bank of Scotland and Barclays have already | :10:35. | :10:38. | |
been fined about $2.6 billion in the last two years for fixing the liable | :10:39. | :10:46. | |
rate. We will have to watch to see how this plays out. Thanks very | :10:47. | :10:51. | |
much. From the and the business team, goodbye for this hour. Back | :10:52. | :10:56. | |
for a look at the papers in a moment `` from the. | :10:57. | :11:05. | |
One of the main stories in the UK this morning is a maximum life | :11:06. | :11:11. | |
sentence bore the worst cases of human trafficking and exploitation, | :11:12. | :11:15. | |
which is to be introduced in the UK `` for the. This comes after the | :11:16. | :11:19. | |
reason they said tougher action, sanctions, would be brought in to | :11:20. | :11:23. | |
tackle modern day slavery as it's being called. According to | :11:24. | :11:27. | |
government figures the number of cases of human trafficking | :11:28. | :11:30. | |
discovered in the UK has risen by 25% in the last year. Another | :11:31. | :11:37. | |
early`morning call for the Met's specialist antitrafficking squad. | :11:38. | :11:40. | |
The owner of | :11:41. | :11:42. |