:00:00. > :00:16.it a "massacre of the moderates". Now on BBC News all the latest
:00:17. > :00:19.business news live from Singapore. New signs that China's economic
:00:20. > :00:25.growth is stabilising, why do concerns persist about the bubble in
:00:26. > :00:29.the property sector? Concerns from the head of America's central bank,
:00:30. > :00:41.that social media and biotechnology companies are overvalued.
:00:42. > :00:45.Thank you for joining us. China's economic growth number is better
:00:46. > :00:49.than expected, new data just doubt reveals it has picked up speed,
:00:50. > :00:55.expanding by 7.5% in the second quarter, and in June. Let's go to
:00:56. > :00:59.Beijing and join our correspondent Martin. What factors have basically
:01:00. > :01:06.boosted the Chinese economy from April to June? On the face of it,
:01:07. > :01:11.these figures will obviously be welcome, 7.5%, but when you look
:01:12. > :01:15.behind the figures, what is bolstering them, I think many
:01:16. > :01:20.analysts will say that they are being pushed by a government
:01:21. > :01:25.stimulus programme, which is now bearing fruit. If we look at for
:01:26. > :01:31.example, some of the banks have reduced their holdings, in order to
:01:32. > :01:35.lend more money. Panellists would say that this growth will not be
:01:36. > :01:42.sustainable without more government support, and one big area of concern
:01:43. > :01:45.is, of course, the once booming property market, which is beginning
:01:46. > :01:51.to slow. Many analysts would say that if it slows sharply, that could
:01:52. > :01:55.pull down overall economic growth. Indeed, the property sector is a
:01:56. > :02:02.major headache for the mainland officials. Why the economy was up
:02:03. > :02:05.was because of targeted stimulus measures... Do you think they could
:02:06. > :02:12.introduce more of them going forward? To sustain expansion? The
:02:13. > :02:17.Premier has said that the targeted 7.5% and it has been hit today.
:02:18. > :02:23.Obviously, they want to hit that in the future. Most analysts want to
:02:24. > :02:29.unveil smaller measures, and the danger always is that there are
:02:30. > :02:33.bubbles in the economy, and you can kick the can down the road, and not
:02:34. > :02:39.deal with fundamental problems in the world 's second`largest economy.
:02:40. > :02:44.Thank you be joining us. `` thank you for joining us. Despite this,
:02:45. > :02:49.there are concerns about a stronger slowdown in the property market,
:02:50. > :02:51.which makes up 20% of China's economy.
:02:52. > :02:56.Our correspondent joins us from eastern China.
:02:57. > :03:02.Despite the looming clouds on the economic horizon, this city, like so
:03:03. > :03:09.many Chinese cities, has kept on building. Now, it may have become
:03:10. > :03:15.the first to face the storm of overcapacity and unsold housing
:03:16. > :03:19.stock. This year, something previously unheard`of is rife.
:03:20. > :03:24.Massive property discounting. This brand`new apartment is being
:03:25. > :03:29.advertised with 30% off. That leaves those who paid the original price
:03:30. > :03:34.furious. China has been through property wobbles before, and the
:03:35. > :03:39.question this time is whether it is another adjustment or something more
:03:40. > :03:43.serious and systemic. Some observers suggest that if this country 's
:03:44. > :03:48.massive construction boom really is unwinding in a catastrophic way,
:03:49. > :03:56.then it could by two percentage points off GDP at a stroke. Many
:03:57. > :04:01.analysts had feared the market the years, and important engine of
:04:02. > :04:05.growth is posing the biggest risk, there is talk of further government
:04:06. > :04:10.action to support home sales. Others, like this estate agent, so
:04:11. > :04:15.that the danger is limited. Chinese families have lower debts than those
:04:16. > :04:18.in the west, so they are less vulnerable to price falls. Anyway,
:04:19. > :04:24.he says that it's all about the sheer weight of numbers. People from
:04:25. > :04:30.the countryside are still flooding to the cities, for better education
:04:31. > :04:35.and life. The demand will always be there. The Chinese government
:04:36. > :04:39.agrees, it is urbanisation, it says, that will ultimately keep growth on
:04:40. > :04:44.track. But if so, critics are beginning to wonder why so many new
:04:45. > :04:52.homes are still empty, and why prices are so damp.
:04:53. > :04:54.The US central bank is the most powerful financial institution of
:04:55. > :04:59.its kind in the world, and controls the flow of trillions of dollars of
:05:00. > :05:04.bonds, when the banks boss speaks, the world listens. And today she
:05:05. > :05:07.warned a stretched valuations for social media and biotechnology
:05:08. > :05:12.companies, and danger signs for the global economy.
:05:13. > :05:16.Prices of real estate, equity and corporate bonds have risen
:05:17. > :05:21.appreciably, and valuation metrics have increased. But, they remain
:05:22. > :05:30.generally in line with historical norms. In some sectors, like lower
:05:31. > :05:40.rated corporate debt, valuation is stretched, and insurance has been
:05:41. > :05:45.brisk. I asked what is behind her concerns. It is about financial
:05:46. > :05:49.imbalance, it is what has been talked about, low interest rates
:05:50. > :05:52.breeding financial excess. What she is effectively warning is that rates
:05:53. > :05:58.can go up and you have to be careful. She also talks about the
:05:59. > :06:07.economic outlook in the US, and continues to champion it. She says
:06:08. > :06:11.the labour market is slack, the Fed have to keep interest rates low for
:06:12. > :06:16.as long as possible. It is unlikely that interest rates will go up as
:06:17. > :06:20.fast as the market expects. She will keep interest rates low, but how do
:06:21. > :06:26.you think this could impact the monetary policies of Adrian `` Asian
:06:27. > :06:33.central banks? Those linked to the dollar, and in Singapore, to some
:06:34. > :06:36.extent, and there are those who run independent policies, like New
:06:37. > :06:42.Zealand. The policies linked to the dollar will follow. Automatically.
:06:43. > :06:45.Those that don't are not concerned by domestic conditions. New Zealand
:06:46. > :06:51.have raised interest rates, you have high interest rates in Indonesia,
:06:52. > :06:57.and in India. What about the economies that have basically kept
:06:58. > :07:01.interest rates low with their monetary policies? How will they
:07:02. > :07:05.react and move with the latest statement from Janet Yellen? You
:07:06. > :07:10.have career who have kept interest rates low. They will not do anything
:07:11. > :07:15.until they see a pickup in global growth and trade. And in the
:07:16. > :07:24.domestic economy. Shares in the ship maker Intel have risen by 4% when
:07:25. > :07:29.the company grows profits. It has gone up stronger than expected.
:07:30. > :07:37.Intel also expected growth for the remainder of the year. Shares in the
:07:38. > :07:42.Internet giant Yahoo have rebounded after a fall, an 18% rise until the
:07:43. > :07:47.end of June. Revenue will drop, falling by 3%. Most of the decline
:07:48. > :07:51.was due to a sharp drop in digital and display advertising which
:07:52. > :07:56.plunged by 8% in the second quarter. Apple and IBM are joining forces in
:07:57. > :08:01.a partnership to design applications for iPhones and iPods. IBM will
:08:02. > :08:05.begin selling Apple devices preinstalled software to business
:08:06. > :08:09.clients. They were once rivals, but experts say it is too soon to know
:08:10. > :08:13.how significant the deal will be. Leaders of the world 's largest
:08:14. > :08:20.emerging economies meeting in Brazil have signed a new agreement, a 100
:08:21. > :08:30.billion dollar reserve fund. They will be recording in Shanghai.
:08:31. > :08:33.The fact is that the BRICs countries have always felt that they lose out
:08:34. > :08:36.when it comes to the global financial institution, the World
:08:37. > :08:42.Bank has always had an American president, the IMF has had a
:08:43. > :08:45.European leader, they feel these are emerging economies, they are
:08:46. > :08:48.powerful and hold 40% of the world 's population, why shouldn't they
:08:49. > :08:53.have more of a say when it comes to London? That is what the bankers
:08:54. > :08:57.about, and it is what Brazil's president spoke, the fact that the
:08:58. > :09:02.BRICs have the power to change for the good in terms of making things
:09:03. > :09:06.fair and equal. The idea behind this is that they can fund projects in
:09:07. > :09:15.the developing world, not only in BRICs countries, but they can extend
:09:16. > :09:17.outwards to other emerging markets. They can have more of an influence,
:09:18. > :09:19.on the emerging markets in the world. What will happen if the
:09:20. > :09:25.International monetary fund, in this new body of the BRICs group of
:09:26. > :09:30.nations, have a different or contradictory approach to deal with
:09:31. > :09:34.the financial crisis? One of the concerns is that the critics talk
:09:35. > :09:37.about the fact that the BRICs are more rivals than friends. Certainly,
:09:38. > :09:41.up until the announcement was made early on Tuesday, there were
:09:42. > :09:46.concerns that these new headquarters that would be in Shanghai men that
:09:47. > :09:50.India would have a say, there are concerns in the rivalry between the
:09:51. > :09:54.two countries. And in the wider BRICs as well. It is early days,
:09:55. > :09:58.they have to iron out these issues. The bank has not begun yet, and how
:09:59. > :10:03.the money will be spent is important. One of the crucial things
:10:04. > :10:08.is that these countries will put in equal amounts into the bank, in the
:10:09. > :10:12.start of it. It is an important role, that these institutions are
:10:13. > :10:18.equal going into the beginning of the development bank.
:10:19. > :10:28.Before we leave, we will tackle the aviation sector. Malaysia Airlines
:10:29. > :10:37.have signed a deal to buy players. `` air Asia. It is worth $40
:10:38. > :10:54.billion, and it will start in 2018. Now, let's have a look at the Asian
:10:55. > :10:57.markets. `` to buy planes. Thank you for investing your time
:10:58. > :11:07.Sport Today is up next. This is BBC News. I'm Adnan Nawaz.
:11:08. > :11:10.The top stories this hour. An attempt to introduce a ceasefire
:11:11. > :11:12.in the Gaza Strip fails, with rocket attacks