:00:00. > :00:00.This is Business Live from BBC News with Sally Bundock and
:00:07. > :00:12.All eyes on China, where leaders are gathered for their four day meeting
:00:13. > :00:15.to discuss the nation's economic and social plans for the next five
:00:16. > :00:19.years - but what tricks does China have left up its sleeve?
:00:20. > :00:38.Live from London, that's our top story on Monday 26th October
:00:39. > :00:41.A cut in interest rates at the end of last week has given
:00:42. > :00:44.markets across Asia a boost but how optimistic can we be about
:00:45. > :00:48.the Communist Party's ideas for the world's second biggest economy?
:00:49. > :00:51.Also in the programme - Toyota is back at the top.
:00:52. > :00:53.The Japanese carmaker is the best vehicle seller
:00:54. > :00:57.of the year so far - it's overtaken Volkswagen as it grapples with the
:00:58. > :01:03.And a new trading week has just kicked off across Europe - markets
:01:04. > :01:06.are mixed as investors grapple with the latest earnings news from some
:01:07. > :01:13.And we'll be getting the inside track from the only female
:01:14. > :01:18.chief executive at one of the top ten global accountancy firms.
:01:19. > :01:21.Keep in touch with us on social media -
:01:22. > :01:26.Today we want to know what would be in your five year plan
:01:27. > :01:41.How can China kick-start its economy?
:01:42. > :01:51.China dominates the headlines this week.
:01:52. > :01:53.China's leaders are to gather for a four day event in Beijing
:01:54. > :01:56.today for its fifth plenum - whatever is decided there will set
:01:57. > :01:59.the agenda for China's policies in the coming five years.
:02:00. > :02:03.Top of the agenda, unsurprisingly it's expected to be the economy.
:02:04. > :02:08.The government's new annual growth target could be top of the agenda -
:02:09. > :02:12.with a cut of growth target from 7% to 6.5%, but some are speculating it
:02:13. > :02:20.The party will also shift the focus away from a dependence
:02:21. > :02:23.on exports and extensive investment in infrastructure to concentrate
:02:24. > :02:31.There could also be an increase in social welfare spending
:02:32. > :02:36.and push for further financial liberalisation, including promoting
:02:37. > :02:45.the internationalisation of China's currency, the renminbi.
:02:46. > :02:48.Dr Linda Yueh is a Professor at London Business School joins me
:02:49. > :03:02.Good to see you. China very much charted a course in 2003 when it
:03:03. > :03:06.started doing these plans, from a farming nation into one of mass
:03:07. > :03:10.industrialisation. Now the process has finished, where do they see the
:03:11. > :03:16.engine for growth in the future? They certainly see it in a new
:03:17. > :03:18.sector, services. Something that would be familiar to advanced
:03:19. > :03:23.economies, but for something like China it is a massive structural
:03:24. > :03:27.change, from being a manufacturing power to having its economy already
:03:28. > :03:31.predominantly driven by professional services, educational services,
:03:32. > :03:34.restaurants. That transformation is not the only one they have to
:03:35. > :03:43.contend with in this 35 year plan. They also have to work out how you
:03:44. > :03:46.drive growth, when we move away from factories producing things that can
:03:47. > :03:54.be sold by exports. They have to come up with more innovative ways to
:03:55. > :04:03.sell exports, including in the services sector. Over the last five
:04:04. > :04:07.years, they averaged about 7.8% growth. Do you think they will stick
:04:08. > :04:13.with that will do away with that target? I think the growth target is
:04:14. > :04:17.likely to be lowered. The 25 year plan, from 2011 until 2015, that
:04:18. > :04:23.have an average growth rate of about 7.5%. They have pretty much exceeded
:04:24. > :04:28.that. Looking forward, there is not a great deal of confidence. They
:04:29. > :04:35.want to sustain that kind of growth rate, but I don't think they could.
:04:36. > :04:40.It is more realistic to grow at 6.5%, or even lower than that. There
:04:41. > :04:44.is no question, that growth rate will be the single target that
:04:45. > :04:49.everybody will be watching for. I have looked at the five-year plans,
:04:50. > :04:52.and there is going to be at least 30 to 40 qualitative, as well as
:04:53. > :05:01.quantitative plans. The other one to watch for is what they do in terms
:05:02. > :05:07.of the share of the economy coming from investment, compared to
:05:08. > :05:10.consumption. Briefly, credit growth is vastly outstripping economic
:05:11. > :05:14.growth. Do you think China will come up with a plan in time for its debt
:05:15. > :05:18.mountain? They tend to say things like they want financial stability.
:05:19. > :05:22.Yes, that is one of the reasons why they don't want to grow through
:05:23. > :05:25.investment any more. A couple more targets to watch for, they usually
:05:26. > :05:30.have a money growth target. That gives you a sense of how much credit
:05:31. > :05:35.they want to unleash on the economy. Beyond that, I would keep an eye out
:05:36. > :05:38.for overall rebalancing targets. They were pretty good in the last
:05:39. > :05:43.one, but I think the next one is going to be a lot harder, especially
:05:44. > :05:45.in terms of exports. We are going to leave it there, lovely to see you.
:05:46. > :05:47.Time for a quick look at some other news:
:05:48. > :05:49.It's not quite signed, sealed or delivered, but the
:05:50. > :05:52.long-awaited sale of Japan Post and its subsidiaries is getting closer.
:05:53. > :05:54.Shares in the main holding company for the
:05:55. > :05:58.state-owned giant have been priced in the top of the expected range.
:05:59. > :06:05.That raises 693 billion yen - that's about $5.7 billion.
:06:06. > :06:09.Investors from Japan will be able to buy 80% of the shares,
:06:10. > :06:14.with the other 20 available to international investors.
:06:15. > :06:17.And bankers at Royal Bank of Scotland will soon be using Facebook
:06:18. > :06:19.to communicate with colleagues, swap information and, even,
:06:20. > :06:23.It's the first bank to adopt Facebook At Work and aims to
:06:24. > :06:26.connect people across the company more quickly and efficiently to
:06:27. > :06:42.'S been a busy day. Lots of companies out with earnings, we
:06:43. > :06:45.can't imagine everything in the show, so please look at the website,
:06:46. > :06:50.because they talk about stories as they break. This is about Phillips.
:06:51. > :06:55.better-than-expected quarterly better-than-expected quarterly
:06:56. > :06:56.profits, off the back of strong orders for US health care
:06:57. > :06:56.businesses. We this earlier. They think it is all
:06:57. > :07:05.about chronic they think they are going to be
:07:06. > :07:07.doing well. I spoke to the chief executive earlier and he was talking
:07:08. > :07:15.about the fact that one of businesses they are trying to sell
:07:16. > :07:18.off, they have hit a regulatory hurdle in the US. That was one of
:07:19. > :07:24.morning. Other stories, we can't imagine them more, more about RBS
:07:25. > :07:28.and Facebook, quite an interesting new manoeuvre on the part of RBS. I
:07:29. > :07:31.can't see us using Facebook at work. We would never do that, would we?
:07:32. > :07:35.Never, Now, as Volkswagen deals with
:07:36. > :07:37.the diesel emissions rigging scandal, Toyota is pulling ahead
:07:38. > :07:40.in terms of global vehicle sales. Mariko Oi is in Singapore - Toyota
:07:41. > :07:56.is taking full advantage of trouble Indeed, if you remember, in the
:07:57. > :08:00.first six months of this year, Volkswagen overtaxed Toyota in sales
:08:01. > :08:05.numbers for the first time, which was very exciting for the German car
:08:06. > :08:09.manufacturer. As you say, as we have been reporting, VW now has this huge
:08:10. > :08:13.scandal which affects its reputation, as well as sales
:08:14. > :08:18.figures. In the first nine months of this year, Toyota sold about 7.5
:08:19. > :08:23.million cars, while Volkswagen sold just over 7.4 million. Now, experts
:08:24. > :08:29.believe that Toyota will keep the top spot as the world's bestselling
:08:30. > :08:36.car manufacturer. It lost its top position back in 2011 because of the
:08:37. > :08:39.huge earthquake and tsunami. It regained it in 2012 and has
:08:40. > :08:44.maintained its ends. It looks like Toyota will keep the spot for this
:08:45. > :08:48.year. Thank you very much. Very interesting, in the case of Toyota
:08:49. > :08:52.and VW. They have both actually said that part of the obsession to be the
:08:53. > :08:56.number one in the world has meant they have perhaps seen some elements
:08:57. > :09:00.falling behind. Talking about the big recall crisis at Toyota, you
:09:01. > :09:07.will remember that well, not many years ago. Looking at markets across
:09:08. > :09:11.Asia, Hong Kong is flat, that was the close on Friday in the United
:09:12. > :09:14.States. These markets are still digesting the latest move on the
:09:15. > :09:21.part of China, when it comes to cutting interest rates in China.
:09:22. > :09:25.Europe has been going for about 40 minutes. Brand-new trading week. As
:09:26. > :09:29.you can say, it's all going in the wrong direction. That is despite the
:09:30. > :09:34.fact we had good news from Peugeot. It says it is much stronger in the
:09:35. > :09:39.third quarter. WPP, we will talk about that later. Also, I spoke
:09:40. > :09:43.about Phillips, I spoke to the boss, their sales are strongly as well.
:09:44. > :09:46.And now Nada Tawfiq can tell us what will making the headlines
:09:47. > :09:52.in the business world in the United States today.
:09:53. > :09:58.Earnings season is still in full swing with a number of major
:09:59. > :10:03.companies reporting, such as Apple, Twitter and Alibaba. Up first is
:10:04. > :10:09.Xerox, which expects the first quarterly loss since 2010. An
:10:10. > :10:13.increasingly digital marketplace has affected the company, widely known
:10:14. > :10:16.for paper copiers and printers. It is now shifting its focus to its
:10:17. > :10:21.government health care business. But that has not come without issues.
:10:22. > :10:25.Interrupted projects in California and Montana will hurt the company
:10:26. > :10:29.this quarter. Also on Monday, figures on new home sales are
:10:30. > :10:32.released, which helps determine consumer confidence and translate
:10:33. > :10:38.into economic momentum in other industries. On Tuesday, policymakers
:10:39. > :10:43.will begin a two Dave meeting. No rate hike is expected, but, as ever,
:10:44. > :10:43.anything can happen. -- two day meeting.
:10:44. > :10:48.Joining us is Jane Foley, Senior Currency Strategist, Rabobank.
:10:49. > :10:55.We have a big week ahead. We have the Fed rate decision on Wednesday,
:10:56. > :10:58.the bank of Japan on Friday. Do you think we are likely to see a bit
:10:59. > :11:02.more stimulus when it comes to Japan? Probably not. The market has
:11:03. > :11:07.been suspecting for some time that they need to go. Japan has an
:11:08. > :11:10.inflation target which is 2%. Inflation is nowhere near. A lot of
:11:11. > :11:14.analysts have been saying they are going to have to go, but that is not
:11:15. > :11:17.the noises we have been hearing from the bank of Japan. They have been a
:11:18. > :11:24.lot more upbeat than many economists. That suggests that it
:11:25. > :11:29.won't. Many economists say that we needed, so it will be an interesting
:11:30. > :11:33.meeting. We have to talk about the Fed. We do indeed. That meeting is
:11:34. > :11:37.exciting, not necessarily because the market expects a move, they
:11:38. > :11:40.don't, but we want to see if there are clues. Is there the possibility
:11:41. > :11:46.of an interest-rate hike in December? If we go back about a
:11:47. > :11:50.year, the start of the year, the market thought the Fed would hike
:11:51. > :11:53.interest rates in June. We are now nearly in November and many people
:11:54. > :11:56.in the market, the majority of people in the market, think they
:11:57. > :12:00.will not be able to go until next year. Ben Bonallack was being
:12:01. > :12:04.interviewed over the weekend on an American news channel and was
:12:05. > :12:12.talking about how difficult it is for Janet and her team to get the
:12:13. > :12:17.timing right. Many people say it is a poisoned chalice, never an easy
:12:18. > :12:20.thing to do. Some of the corporate results, the stories we are reading,
:12:21. > :12:29.some culprits are having a tough time. If we do see more stimulus
:12:30. > :12:35.from Japan, from the eurozone, it means the dollar will probably
:12:36. > :12:40.strengthen. We will see you later. She is not off the hook yet. She has
:12:41. > :12:43.to do more in five minutes. We will be hearing from one of the top ten
:12:44. > :12:45.global accountancy firms. Our guest is the only woman at her position in
:12:46. > :12:46.the industry. The world's biggest ad agency,
:12:47. > :12:55.WPP published their trading A strong three months from its
:12:56. > :13:00.North America business helped it But there was a warning that many
:13:01. > :13:10.of their clients are still focusing on cutting costs rather than
:13:11. > :13:12.growing their businesses. You've been speaking to the chief
:13:13. > :13:23.executive Martin Sorrell - what does He has a great knack of talking for
:13:24. > :13:28.a long time so you can't ask any more questions. Did you manage to
:13:29. > :13:32.get some end? I was prepared and headed him off at the pats. I think
:13:33. > :13:37.he knows I'm not going to put up with that. Normally, when he talks
:13:38. > :13:40.about his results, he gives a very clear, unequivocal picture about
:13:41. > :13:44.what is happening in the global economy. He will say Asia is doing
:13:45. > :13:47.this, Europe is doing that, the Americans are doing this. The
:13:48. > :13:51.picture he painted today was a much, much more nuanced one. You have been
:13:52. > :13:56.talking about some other factors that play into that. One of them, of
:13:57. > :13:59.course, is the transition that is happening in China, away from the
:14:00. > :14:03.investment and manufacturing, towards consumer led economies, less
:14:04. > :14:08.of a focus on exports. The effect that has is that we have seen the
:14:09. > :14:11.falling commodities prices has been very sudden and very dramatic,
:14:12. > :14:16.particularly over the past year. I said to him, surely if we turn more
:14:17. > :14:20.Chinese people into big consumers, that is going to be helpful for
:14:21. > :14:24.advertising. He said, that is true. But that is not something that
:14:25. > :14:27.happens overnight. We have to wait a little bit for that. What you have
:14:28. > :14:31.been talking about, he said this could be a blueprint for the
:14:32. > :14:36.company. We will be looking at that closely. Another thing, because it
:14:37. > :14:41.is very much an international company, movements in the foreign
:14:42. > :14:44.exchange markets. That has been very prevalent because of what central
:14:45. > :14:47.banks have been saying. You have been reporting about what China has
:14:48. > :14:55.said about dropping interest rates. The sixth time this year. It is a
:14:56. > :15:00.very rapid change that is going on. He has said the central bank is
:15:01. > :15:07.going to keep its foot on the easing pedal. That affect the currency
:15:08. > :15:19.markets. As you have rightly pointed out, the company is very focused on
:15:20. > :15:21.cost cutting. There is some information about bingo centres up
:15:22. > :15:25.for sale. Our top story -
:15:26. > :15:29.Chinese leaders begin a four day meeting to set out an economic
:15:30. > :15:33.blueprint for the next five years. After massive industrialisation,
:15:34. > :15:36.the big question now is whether it will manage to ease
:15:37. > :15:42.the transition for the country to And now let's get the inside track
:15:43. > :15:50.from the only female boss of any of Jean Stephens is
:15:51. > :15:56.Global Chief Executive of RSM International and an advocate
:15:57. > :16:01.of diversity in the workplace. RSM is a multi-national network
:16:02. > :16:05.of accounting firms which together form the 7th largest
:16:06. > :16:08.professional accountancy services Members employ over 32,000
:16:09. > :16:14.people across the world. It includes some really big names -
:16:15. > :16:19.including McGladrey in the US, Baker Tilly here in the UK
:16:20. > :16:23.and Ruihua in China. Jean Stephens,
:16:24. > :16:37.Global Chief Executive of Welcome to the programme. You were
:16:38. > :16:40.in more than 100 countries across the world. That must be a nightmare.
:16:41. > :16:46.You must spend a lot of time on planes. I sometimes live on a plane.
:16:47. > :16:53.I spend about 75% of my time travelling. Meeting with members,
:16:54. > :16:58.talking and sharing strategies. That was part of your ambition, wasn't
:16:59. > :17:05.it? You wanted to work for a global company as opposed US company. Yes,
:17:06. > :17:11.I trained as a CPA in the US, I graduated young and got my masters.
:17:12. > :17:18.Explain that. Certified Public accountants. I am a chartered
:17:19. > :17:22.accountant. I got my degree and then my license, I loved it, but I'll was
:17:23. > :17:28.had a dream of living abroad, living and working abroad and being in a
:17:29. > :17:34.different culture. Having the opportunity to come to the
:17:35. > :17:41.headquarters in London with the then CEO, working with him for ten years,
:17:42. > :17:46.and then we grew and developed and I was fortunate that they asked me to
:17:47. > :17:49.take over when he stepped down. You've grown up throughout the
:17:50. > :17:55.company, you've been there a long time. I wonder what the biggest
:17:56. > :17:59.challenges for you must be, trying to manage a consistency across the
:18:00. > :18:03.entire network when it comes to all the different cultures and people
:18:04. > :18:10.you've got to work with, because there are lots of ways of doing
:18:11. > :18:15.business. That is right, and it is what has kept me in this position
:18:16. > :18:19.for so long. The issues that we have around the world are so varied, I
:18:20. > :18:29.start my day with Asia and follow the time zones with regards to
:18:30. > :18:33.talking to our members. I love that. We are very focused on client
:18:34. > :18:39.service, adding value to our clients, working with them, with
:18:40. > :18:43.their growth ambitions. As part of that, there are two things that I
:18:44. > :18:46.really focus on, one is the quality structures we have within our
:18:47. > :18:51.organisation, doing our very best to make sure that is the highest level,
:18:52. > :18:56.and the other is the relationships we have with each other. If we can
:18:57. > :19:01.connect very easily and seamlessly then that brings value to our
:19:02. > :19:07.clients. We want to provide the services based on those
:19:08. > :19:12.relationships. Something that is important to you is diversity, and a
:19:13. > :19:22.big part of that is enabling women to claim the ladders. You are
:19:23. > :19:26.actually in favour of quarters. -- quotas. How did you get to where you
:19:27. > :19:32.are given many women say it is difficult to get to the top? Most
:19:33. > :19:39.professions, we are still not at the level that I think we need to, to
:19:40. > :19:43.have a well rounded workforce. I believe when you have diversity at
:19:44. > :19:48.the table, not just gender but all diversity, it makes for better
:19:49. > :19:54.business, and better decisions. Everybody agrees with that but it is
:19:55. > :19:58.how you make that happen. It is multilayered, it is very
:19:59. > :20:01.complicated, that I think one is having the conversations, the
:20:02. > :20:07.current leaders need to set the stage for making that happen. I am
:20:08. > :20:15.very fortunate to work within RSM, in a predominantly male profession.
:20:16. > :20:22.I don't have my own children, so I'm able to devote a lot more time than
:20:23. > :20:28.others could. That is just a reality of the world we are in. In business,
:20:29. > :20:36.we need to make adjustments for the different needs our people have so
:20:37. > :20:40.we can get that diversity. With regards quotas, we've been talking
:20:41. > :20:44.about this for so long. I graduated a long time ago and we were talking
:20:45. > :20:49.about it then, we are still talking about it. Everybody agrees we've not
:20:50. > :20:56.made enough progress. The pace of change is not fast enough. Quotas
:20:57. > :20:59.can help. They can mandate and drive change to the point where we don't
:21:00. > :21:04.need them. Interesting that you say you don't have children. In the
:21:05. > :21:10.Green room you said there is a recruitment that is 50-50 but you
:21:11. > :21:15.said you see the fallout after eight or ten years. How do you manage to
:21:16. > :21:21.get women to boardroom level and still be able to have a family? I
:21:22. > :21:30.think it starts with women having a discussion with the employer, saying
:21:31. > :21:38.this is what they need, and being flexible with regards the hours,
:21:39. > :21:44.making it easy for women to have that, and families. It is not just
:21:45. > :21:51.women, it is a family issue. When you talk in Scandinavian countries,
:21:52. > :21:58.it is much more socially acceptable for them to take time off. We've got
:21:59. > :22:14.to challenge all those things and having the discussion is very
:22:15. > :22:29.important. It would be good to get to the point. Thank you for this.
:22:30. > :22:32.There are lots of ways to keep up with BBC business. We would love to
:22:33. > :22:40.hear from you, here's a reminder of how to get in touch. You can stay
:22:41. > :22:43.ahead with all the day's breaking business news. We will keep you
:22:44. > :22:48.up-to-date with insight and analysis from the team of editors around the
:22:49. > :23:01.world. We want to hear from you, get involved on the web page. You can
:23:02. > :23:12.get involved on Twitter. It is on TV and online. Jane is back and with us
:23:13. > :23:23.in the studio to talk about the other stories out there. There is a
:23:24. > :23:28.story in the Financial Times. This relates to sanctions. There have
:23:29. > :23:35.been sanctions placed on Russian businesses. Banks have the job of
:23:36. > :23:45.facilitating business. I work for a bank, we have all had compliance
:23:46. > :23:51.training. We have had training with businesses that are sanctioned. This
:23:52. > :23:55.investigation, reported in the FT, says the US authorities are
:23:56. > :24:00.investigating some business that Deutsche Bank has been doing in
:24:01. > :24:11.Russia. It is only an investigation at this stage, but they are saying
:24:12. > :24:16.they are potentially investigating a breach of those sanctions. One of
:24:17. > :24:21.the stories we were alluding to is what is going on with earnings at
:24:22. > :24:25.the moment and the slowdown. The Wall Street Journal is looking at
:24:26. > :24:32.this, companies warning they will see a dip in profits and sales. This
:24:33. > :24:41.is fascinating. All year we've been debating whether it is doing well
:24:42. > :24:47.enough for them to hike interest rates. This story suggests US
:24:48. > :24:51.corporate, manufacturers are stressing out. One manufacturer says
:24:52. > :24:56.the sector is in recession. We know that energy companies are under
:24:57. > :25:01.pressure because of oil prices but this goes further in suggesting
:25:02. > :25:05.other corporate companies are under stress as well. I would say that we
:25:06. > :25:10.can take this back to the first quarter. A number of corporate work
:25:11. > :25:16.complaining about the strength of the US dollar, the strongest
:25:17. > :25:27.currency over the last 12 months, it has affected the profits of many
:25:28. > :25:37.companies overseas. A story which caught our attention, the originator
:25:38. > :25:45.of Green Black saying he regretted selling it to Cadbury. He says we
:25:46. > :25:50.value corporate for how much they are valued for, not the number of
:25:51. > :25:56.people we employ. Short-term as is the failure of capitalism. That is
:25:57. > :26:00.such a deep ending. See you soon.