:00:00. > :00:00.a fresh team, with an aim to move the country forward. Let's go to
:00:00. > :00:14.Singapore for the latest business news.
:00:15. > :00:21.Is China's economy stabilising? We have a look at the impact of
:00:22. > :00:29.stimulus measures on the property sector. And, concerns from the head
:00:30. > :00:34.of America's central bank that social media companies are
:00:35. > :00:42.overvalued. Thank you for joining us. All eyes
:00:43. > :00:46.are in China this morning, as we await fresh data over the next 30
:00:47. > :00:51.minutes, which will reveal how much its economy grew in the second
:00:52. > :00:56.quarter. Many analysts are expecting growth to remain steady, thanks
:00:57. > :01:01.largely to increased government spending and lending. These stimulus
:01:02. > :01:04.initiatives have done little to ease concerns about the possibility of a
:01:05. > :01:12.sharp slowdown in the future, particularly in the property sector.
:01:13. > :01:18.We have more from eastern China. Despite the looming clouds on the
:01:19. > :01:22.economic horizon, this city, like so many others in China, has just kept
:01:23. > :01:27.on building. Now, though, it may have become the first to face the
:01:28. > :01:34.storm of overcapacity and unsold housing stock. This year, something
:01:35. > :01:39.previously unheard of is rife, massive property discounting. This
:01:40. > :01:43.brand`new apartment is being advertised with 30% off, leaving
:01:44. > :01:49.those who paid the original price furious. China has been through
:01:50. > :01:52.property wobbles before, the question this time is whether it is
:01:53. > :01:58.just another adjustment, or something more serious and systemic.
:01:59. > :02:01.Some observers suggest that if this country's massive construction boom
:02:02. > :02:06.really is unwinding in a catastrophic way, then it could wipe
:02:07. > :02:12.two percentage points or more of GDP at a stroke. Many analysts fear that
:02:13. > :02:18.China's property market for years, such an important engine of growth,
:02:19. > :02:21.has begun to pose the biggest risk, and there is talk of further
:02:22. > :02:27.government action to support home sales. Others, like this estate
:02:28. > :02:33.agent, say the danger is limited. Chinese families have lower debts
:02:34. > :02:37.than those in the west, so they have less vulnerability to price falls.
:02:38. > :02:43.He says it is all about the sheer weight of numbers. People from the
:02:44. > :02:46.countryside are still flooding to the cities for better education and
:02:47. > :02:51.a better life, he tells me. The demand will always be there. The
:02:52. > :02:56.Chinese government agrees. It is urbanisation, it says, that will
:02:57. > :03:03.ultimately keep growth on track, but if so, critics are beginning to
:03:04. > :03:06.wonder, why are so many new homes will empty and why are prices so
:03:07. > :03:10.damp? `` still empty.
:03:11. > :03:14.The American central bank is with the most powerful institution of its
:03:15. > :03:19.sort in the world, and controls billions of dollars of funds. So,
:03:20. > :03:25.when the boss, Janet Yellen, speaks, the world tends to listen.
:03:26. > :03:29.Today, she spoke about biotechnology companies and social media
:03:30. > :03:37.companies, and other potential global signs of warning for the
:03:38. > :03:44.community. Valuation metrics have increased, and they remain generally
:03:45. > :03:49.in line with historical norms. In some set is, such as lower rated
:03:50. > :03:57.corporate debt, valuations appear stretched, and issuance has been
:03:58. > :04:02.brisk. That was Janet Yellen, the central bank chief of the US. Mark
:04:03. > :04:08.McFarlane is the chief economist, and I asked him what is behind Janet
:04:09. > :04:13.Yellen's concerns. It has been talked about a lot, low interest
:04:14. > :04:16.rate reading financial excess, and Janet Yellen is effectively warning
:04:17. > :04:23.that rates could go up and give to be careful. She also talks about the
:04:24. > :04:38.economic outlook, and she continues to champion Lewis loose economic
:04:39. > :04:44.monetary policy. It is likely that tapering will continue, but interest
:04:45. > :04:49.rates will stay low. How do you think this will impact the monetary
:04:50. > :04:52.policies of Asian central banks? There are two types of central
:04:53. > :05:00.banks, those linked to the dollar, at the Hong Kong exchange. The
:05:01. > :05:06.policies that are linked to the dollar will automatically follow. It
:05:07. > :05:12.doesn't necessarily follow domestic conditions. You mentioned New
:05:13. > :05:16.Zealand's, which has higher interest rates, and in China and India. What
:05:17. > :05:21.about the economies that have basically kept interest rates low
:05:22. > :05:25.with loose monetary policy? How are they likely to react and move with
:05:26. > :05:31.this latest statement of Janet Yellen? Well, you have the bank of
:05:32. > :05:39.Korea, which is likely to keep interest rates climb. `` loan.
:05:40. > :05:49.Shares in Intel have gained 4%. Profits rising 45% in the second
:05:50. > :05:56.quarter to $2.8 billion. Driven by stronger than expected sales, Intel
:05:57. > :06:01.also predicted stronger than expected revenue growth for the
:06:02. > :06:10.remainder of the year. Shares in the internet giant Yahoo! Have rebounded
:06:11. > :06:15.after a lacklustre earnings report. Revenue also fell, dropping 3% to 1
:06:16. > :06:19.billion. Most of the decline was due to a sharp drop in digital display
:06:20. > :06:26.advertising, which plunged 8% in the second quarter. Apple and IBM are
:06:27. > :06:31.joining forces to codevelop business centric applications for iPhones and
:06:32. > :06:36.iPads. IBM will also start selling Apple's mobile devices pre`installed
:06:37. > :06:41.with software for business clients. They were one`time rivals, but
:06:42. > :06:45.experts say it is too soon to know how significant the deal will be.
:06:46. > :06:50.The leaders of the world's largest emerging economies in Brazil have
:06:51. > :06:56.signed a deal to create a new 100 yen dollar development and emergency
:06:57. > :07:02.reserve fund. The first president for the bank will be from India. Our
:07:03. > :07:07.South America correspondence is in Fortaleza, Brazil, where the leaders
:07:08. > :07:14.have been meeting. She explains the reasons behind this. I think the
:07:15. > :07:22.fact is that the BRICS countries have felt that they lose out when it
:07:23. > :07:26.comes to financial institutions. They feel that they are emerging
:07:27. > :07:30.economies, they hold 40% of the world's population, so why should
:07:31. > :07:34.they not have more of a say when it comes to lending? That is what this
:07:35. > :07:39.bank is about. It is what resident Dilma Rousseff, the Brazilian
:07:40. > :07:43.President, talked about. The fact that BRICS have a chance to change
:07:44. > :07:47.for the good, in terms of making things fair and equal. The idea is
:07:48. > :07:50.that they can fund things in developing countries, and they can
:07:51. > :07:54.extend outwards to other emerging markets. They can have a bit more of
:07:55. > :08:01.an influence, really, on emerging markets in the world. What will
:08:02. > :08:06.happen if the International monetary fund, in this new body in the BRICS
:08:07. > :08:11.group of nations, have different or contradictory approaches to dealing
:08:12. > :08:15.with the financial crisis? I think this is one of the big concerns.
:08:16. > :08:19.Critics talk about the fact that BRICS are often more rivals than
:08:20. > :08:23.friends, and up until the announcement was made earlier on
:08:24. > :08:28.Tuesday there was concern that the headquarters in Shanghai, that India
:08:29. > :08:34.would want to have a say in it, and there would be rivalries between the
:08:35. > :08:36.countries. It is still very early days, they need to iron out some of
:08:37. > :08:41.these issues. The bank hasn't started yet, and how this money will
:08:42. > :08:53.be spent is going to be very important. Most of the crucial thing
:08:54. > :08:59.`` one of the most crucial things is that the same amount goes in from
:09:00. > :09:02.each country, and that will be hugely important in developing it.
:09:03. > :09:08.For more than two decades the global aviation industry has been dominated
:09:09. > :09:14.by Boeing and Airbus. Asian players have yet to make much impact, but
:09:15. > :09:24.Nigel Cassidy caught up with one of the main challenges. The CEO told
:09:25. > :09:31.him how they are coping with concerns for the prospects of their
:09:32. > :09:39.C series plane. We had a little issue with an engine, we have worked
:09:40. > :09:43.on that. We are now testing for the root cause, making modifications to
:09:44. > :09:47.the engine, and we feel conned and we can be back in the air in a few
:09:48. > :09:52.weeks. In terms of orders or potential orders, you are in a
:09:53. > :09:59.slightly better place than you have been. Absolutely, we have announced
:10:00. > :10:05.five customers for the C series. It has 150 seats, and there will be the
:10:06. > :10:17.it for about 750,000 aircraft over the next 20 years in this segment.
:10:18. > :10:23.We feel we can take the lead. That was Bombardier's CEO.
:10:24. > :10:33.Asian markets are flat to lower, after the Fed reserve chairwoman,
:10:34. > :10:40.Janet Yellen, raised concerns about high price values in social media
:10:41. > :10:44.and technology stocks. The GDP numbers will be coming out in about
:10:45. > :10:52.20 minutes time, and they are waiting for that as well. Thank you
:10:53. > :11:04.for investing your time with us. Sport today is next. `` sport Today.
:11:05. > :11:08.An attempt to introduce a ceasefire in the Gaza Strip has failed, with
:11:09. > :11:10.rocket attacks