:00:00. > :00:10.This is Business Live from BBC News with Sally Bundock and Rachel Horne.
:00:11. > :00:14.China's economy is ticking along with growth at 6.7%,
:00:15. > :00:17.but what about the country's mounting debt problem?
:00:18. > :00:33.Live from London, that's our top story on Wednesday, 19th October.
:00:34. > :00:40.China is fuelling the move to consumer-driven economy
:00:41. > :00:48.Also in the programme, and not such a Hollywood ending,
:00:49. > :00:51.box office superstar Leonardo DiCaprio says he's
:00:52. > :00:58.cooperating with an investigation into Malaysian state fund 1MDB.
:00:59. > :01:05.Minister kets in Europe don't know which direction to go. They were up
:01:06. > :01:07.and now they're down. We'll talk you through the winners and losers.
:01:08. > :01:09.And we're talking wine - the UK's oldest merchant
:01:10. > :01:13.Berry Brothers and Rudd started popping corks more than 300 years
:01:14. > :01:16.ago and have been supplying the UK's Royal Family since the 17th century
:01:17. > :01:19.- we'll ask the boss how the company is staying relevant and keeping
:01:20. > :01:23.So today we want to know - if you can't make
:01:24. > :01:26.money at the bank would you invest it in your wine rack?
:01:27. > :01:46.It is never too early for a glass of good quality wine on Business Live!
:01:47. > :01:53.New growth figures from China has added to a raft of indicators
:01:54. > :01:55.suggesting the Asian powerhouse is becoming addicted
:01:56. > :02:00.The world's second largest economy grew at an annualised rate of 6.7%
:02:01. > :02:10.As we've been reporting, the country's growth rate has slowed
:02:11. > :02:14.significantly since hitting double digits five years ago.
:02:15. > :02:16.It is now at its slowest rate
:02:17. > :02:22.The figures underline China's difficulty of transforming
:02:23. > :02:24.the economy away from factories and exports towards consumption
:02:25. > :02:30.to help drive up wages and living standards.
:02:31. > :02:33.Now while government debt in China may appear to be relatively low,
:02:34. > :02:46.corporate debt stands at a worrying 145% GDP.
:02:47. > :02:48.One of the major issues is that State-owned businesses actually
:02:49. > :02:51.account for more than half of that debt pile and Chinese banks are now
:02:52. > :02:54.holding more and more loans from those companies that are either
:02:55. > :02:56.in default or close to being in default.
:02:57. > :02:59.We can cross live now to Shanghai and speak to our
:03:00. > :03:06.Robin thank you for joining us. The figures seem to give the impression
:03:07. > :03:11.that China's economy is stabilising, but is there anything else going on
:03:12. > :03:16.behind the scenes? Well, it is still growing, but still slowing is the
:03:17. > :03:21.overall picture. What we have is an economy where there is evidence that
:03:22. > :03:29.the Chinese Government through its policies seems to be stabilising the
:03:30. > :03:35.big picture and managing to shift away from an investment-led economy,
:03:36. > :03:38.focussing on exports and towards a more consumption-led domestically
:03:39. > :03:43.driven economy. Consumption accounting for over 70% of growth in
:03:44. > :03:47.the last quarter. That's a big jump on the similar period in the year
:03:48. > :03:51.before. So that is something that the Chinese Government will be very
:03:52. > :03:55.happy about, but dig a bit deeper and it is a familiar story.
:03:56. > :03:59.Infrastructure investment from central Government ticking up in
:04:00. > :04:03.that same three month period. That's evidence yet again that perhaps the
:04:04. > :04:08.fuel, the significant fuel in this engine of growth, is still money
:04:09. > :04:11.coming from central Government and being filtered down to provincial
:04:12. > :04:15.Government in big infrastructure projects and that's something that
:04:16. > :04:20.China is trying to move away from, but not too quickly because, of
:04:21. > :04:24.course, here in communist China Government spending is still so, so
:04:25. > :04:28.dominant. Robin, quite often when we talk about China and we look at
:04:29. > :04:31.Chinese figures, there is a question over the reliability of the figures
:04:32. > :04:39.that are issued, what's the feeling about today's figures? There is
:04:40. > :04:43.consistent criticism and eyebrows raised about the accuracy, even the
:04:44. > :04:47.veracity of figures like this. The Chinese Government won't like it.
:04:48. > :04:50.There has been criticism in the past of media like us and others who
:04:51. > :04:54.question the statistics, but look, for three-quarters in a row now, the
:04:55. > :04:59.Chinese Government has released official figures showing that growth
:05:00. > :05:05.is at exactly 6.7%. It is very close to the official Government target of
:05:06. > :05:11.between 6.5% and 7.5% growth overall for 2016. They have never had this
:05:12. > :05:16.back-to-back consistency before and many people suspect that it is just
:05:17. > :05:21.frankly too good to be true. Just last month the former chief
:05:22. > :05:25.economist at the IMF told the BBC that he thought a truer figure was
:05:26. > :05:30.around 3% growth in this country. So look, we raise concerns and we ask
:05:31. > :05:33.questions about the figure, but the Chinese Government insist they are
:05:34. > :05:38.accurate, but there are many who see this, three-quarters in a row, spot
:05:39. > :05:41.on 6.7%, it is convenient, isn't it? Robin Brant, in Shanghai, thank you
:05:42. > :05:43.very much for joining us this morning.
:05:44. > :05:48.Yahoo's profits more than doubled to $163 million in the third quarter
:05:49. > :05:54.The numbers provide some reassurance to investors after it was revealed
:05:55. > :05:56.that 500 million customers had their accounts hacked.
:05:57. > :05:58.These are the first financial results since Verizon
:05:59. > :06:04.announced its plan to buy the tech company for $4.8 billion.
:06:05. > :06:07.Shares in Sharp have risen by more than 10% after the loss making
:06:08. > :06:09.Japanese company announced it expects full year profits
:06:10. > :06:11.to "improve significantly" compared to last year.
:06:12. > :06:13.The electronics firm was snapped up by Taiwanese manufacturer Foxconn
:06:14. > :06:19.for $3.5 billion in July after going through two major
:06:20. > :06:26.South Korean prosecutors are reportedly poised
:06:27. > :06:29.to file corruption charges against the chairman of one
:06:30. > :06:30.of the country's most influential conglomerates,
:06:31. > :06:33.It's alleged Shin Dong-bin, together with his father and brother
:06:34. > :06:46.committed offences worth hundreds of millions of dollars.
:06:47. > :06:51.There is a lot going on on the markets this morning. Some
:06:52. > :07:01.eye-catching movers on the London markets. We can see some shares are
:07:02. > :07:06.down. BHP Billiton down 0.7%. That's despite the fact that some commodity
:07:07. > :07:14.prices seem to be coming back up. Falling commodity prices have been a
:07:15. > :07:15.story for the last year or so. BHP Billiton seeing early signs of
:07:16. > :07:18.market recovery. Oscar-winning star Leonardo DiCaprio
:07:19. > :07:20.says he is aiding authorities with the ongoing investigation
:07:21. > :07:22.into Malaysian state Christine Hah is in Singapore
:07:23. > :07:36.and has the details. Well, as you know the Department of
:07:37. > :07:42.Justice in the US filed a civil suit back in July. They want to get back
:07:43. > :07:48.about $1.3 billion which they say is money that came from the Malaysian
:07:49. > :07:54.state fund and channelled into US assets like paintings, luxury
:07:55. > :08:01.apartments, a private jet and investment into the Leonardo
:08:02. > :08:05.de-Capri owe's film The Wolf Of Wall Street, even though he's
:08:06. > :08:12.co-operating, when he won a Golden Globe he personally thanked the
:08:13. > :08:22.people implicated people in the suit a the person who runs the production
:08:23. > :08:25.company. So a little bit of life imitating art there! Very
:08:26. > :08:29.interesting. Christine, thank you very much. The plot thickens on that
:08:30. > :08:34.story. A mixed picture in Asia, but I have
:08:35. > :08:37.to say, markets around the world really relieved about the numbers
:08:38. > :08:41.coming out of China. Robin mentioning some of the challenges
:08:42. > :08:47.and scepticism about the numbers still. There was no surprises or
:08:48. > :08:51.shocks. So Japan and Hong Kong, everywhere else relatively flat. We
:08:52. > :08:56.had the oil price heading upwards. Let's look at Europe. Just to have a
:08:57. > :09:00.sense of how things are going. All headed south at the moment. Rachel
:09:01. > :09:04.rattling through the winners and losers for the FTSE 100. Of course,
:09:05. > :09:07.we've got the UK jobless figures coming out later today. We will talk
:09:08. > :09:08.about the issues in Europe in a moment.
:09:09. > :09:13.Samira Hussain has the details about what's ahead on Wall Street Today.
:09:14. > :09:21.The third and final US Presidential debate takes place on Wednesday in
:09:22. > :09:24.Las Vegas. It will be moderated by Fox News and the topics will include
:09:25. > :09:27.debt, entitlements and the immigration and the economy. Lots of
:09:28. > :09:32.companies will be reporting earnings on Wednesday. In financials, we will
:09:33. > :09:35.hear from Morgan Stanley and like other big banks, Morgan Stanley has
:09:36. > :09:41.been cutting costs to try and make up for lower profits. Oil companies
:09:42. > :09:45.Kinder Morgan and Hallliburton will be reporting earnings. The two have
:09:46. > :09:50.been hit by low oil prices and falling demand. And finally, online
:09:51. > :09:55.retailer eBay saw traffic from online searches increase for the
:09:56. > :09:58.first time in nearly six quarters. Attracting more shoppers to its
:09:59. > :10:02.website. And that will be welcome news for investors who will be
:10:03. > :10:03.looking for updates on the company's outlook ahead of the holiday
:10:04. > :10:11.shopping season. Sue Noffke, UK Equities Fund
:10:12. > :10:19.Manager at Schroders. We will look at UK figures. Lots of
:10:20. > :10:22.figures out for the UKment we had inflation figures out yesterday, up
:10:23. > :10:26.1%. A steep rise. Unemployment figures due out today. What are we
:10:27. > :10:30.expecting and how is sterling reacting? Well, I think, everyone is
:10:31. > :10:35.trying to pick through the figures to find that evidence of Brexit. And
:10:36. > :10:39.what was interesting in yesterday's inflation data was that we weren't
:10:40. > :10:42.seeing very much other than the rise in oil which has been independent,
:10:43. > :10:48.but of course, it is priced in dollars. So that's been adding to
:10:49. > :10:53.inflationary pressures from a very low base. If we look to employment
:10:54. > :10:57.data, this will be the second most post the decision to leave the EU
:10:58. > :11:03.that we get. Last month's figures were surprisingly steady. So it is a
:11:04. > :11:07.question of do we carry on in this steady vain or do we start to see
:11:08. > :11:10.some of the business nervousness that's been talked about actually
:11:11. > :11:13.come through in the figure as soon as Some of the fears is about
:11:14. > :11:16.inflation, is about the weakness of the pound, all these things and the
:11:17. > :11:21.effects it will have on the UK economy and that jump in inflation,
:11:22. > :11:29.more than expected, kind of fuel those fears a bit, do you think or
:11:30. > :11:32.not? No. I think we know that it takes sometime for sterling's
:11:33. > :11:37.depression to feed through into the inflation numbers. I think it is
:11:38. > :11:42.around what policy responses are we going to get? The Bank of England
:11:43. > :11:47.tends to look through any increase that comes from currency moves
:11:48. > :11:49.through to inflation. In terms of holding monetary policy fairly
:11:50. > :11:54.steady. I would expect that's what the Bank of England will do this
:11:55. > :12:01.time as well. What we will have to see is what happens to wages and
:12:02. > :12:05.employment. Because if we start to see wage pressures and that feed
:12:06. > :12:08.through on top of sterling's depression to inflation then I think
:12:09. > :12:16.the Bank of England has a tougher job to do. OK. Sue, those figures
:12:17. > :12:20.out at 9.30am UK time. So out in 45 minutes. I wouldn't want to be Mark
:12:21. > :12:23.Carney right now or Philip Hammond for that matter!
:12:24. > :12:25.Still to come, what makes a winning wine?
:12:26. > :12:28.We'll be speaking to one of the UK's oldest merchants to find out.
:12:29. > :12:42.You're with Business Live from BBC News.
:12:43. > :12:51.The jobless figures are out in 45 minutes time.
:12:52. > :12:53.Official figures this morning will show how many
:12:54. > :12:56.people are out of work - with the government pushing
:12:57. > :12:59.companies to do more to recruit workers from within the UK.
:13:00. > :13:00.Many businesses say they are doing just that.
:13:01. > :13:03.Victoria Fritz is at one such factory in Birmingham with more.
:13:04. > :13:08.Hello there. Yes, that's right. They're currently a record number of
:13:09. > :13:13.people in work in Britain. Over 31 million people in Britain actually
:13:14. > :13:18.have jobs. Over 28 million of those are UK nationals which leaves about
:13:19. > :13:21.3.5 million that are classified by the Office for National Statistics
:13:22. > :13:25.as non-UK nationals and it is that group and the businesses that employ
:13:26. > :13:28.them that have found themselves at the centre of a fierce debate over
:13:29. > :13:32.immigration, economic immigration and whether or not there should be
:13:33. > :13:35.restrictions to who can apply for jobs in this country? Now this
:13:36. > :13:40.company, it is a factory in Birmingham. It makes cooling systems
:13:41. > :13:43.for everything from buses and coaches to things like military
:13:44. > :13:50.vehicles as well. It is exporting to 28 countries across the world. About
:13:51. > :13:53.22% of the business is actually staffed by people who were born
:13:54. > :13:57.overseas and the boss has been telling me that without that mix, he
:13:58. > :14:01.would face skills shortages right across the business from here on the
:14:02. > :14:04.shop floor all the way up to the level of senior thermal engineers.
:14:05. > :14:09.He says without that mix, without access to people from across the EU,
:14:10. > :14:12.and elsewhere, he wouldn't be able to develop next gun ration products
:14:13. > :14:16.things like the thermal systems that are going to go into the next
:14:17. > :14:20.generation of electric vehicles. So he's concerned about some of the
:14:21. > :14:24.comments that came out from the Tory Party conference earlier on in the
:14:25. > :14:30.month that there maybe some kind of restriction on access to people from
:14:31. > :14:34.abroad. This is an issue that's a very emotive, it is an emotive issue
:14:35. > :14:38.as well as a practical one and one that's been discussed by businesses
:14:39. > :14:44.from the shop floor through to management level across the country.
:14:45. > :14:49.Those employment figures are coming out at 9.30am. So stay tuned.
:14:50. > :15:01.That was Victoria. We've got results in from Hotel
:15:02. > :15:22.Chocolat. Their revenue is up. The top story today: the Chinese
:15:23. > :15:26.economy is growing at a rate of 6.7%.
:15:27. > :15:32.analysts warn it could be storing up problems for the future.
:15:33. > :15:39.Let's have a look at the markets. The European markets slightly in the
:15:40. > :15:44.red. The figures from China gave a bit of stability. We can see that
:15:45. > :15:48.they are trading ever so slightly down. Keep an eye on the pound. It
:15:49. > :15:55.might move. Now, it's time for Inside Track
:15:56. > :15:58.and today we are focusing Berry Bros Rudd is one
:15:59. > :16:01.of UK's oldest businesses. Founded in 1698 -
:16:02. > :16:03.the merchant started supplying Britain's royals with wine
:16:04. > :16:07.during the reign of King George III - and are still the official
:16:08. > :16:10.suppliers to Buckingham Palace. Today, Berry Bros sells a range
:16:11. > :16:14.of over 3,000 wines that are sourced from over 25 countries
:16:15. > :16:18.around the world. Statistics based
:16:19. > :16:20.on a survey conducted by Wine Intelligence show that 25%
:16:21. > :16:25.of the UK's nearly 30 million regular wine drinkers ordered wine
:16:26. > :16:29.on the internet last year. So is this the future
:16:30. > :16:33.of wine-selling? Dan Jago, Chief Executive
:16:34. > :16:45.of Berry Brothers and Rudd is here. Good morning. We paused the question
:16:46. > :16:52.about how important the Internet is. Were you the UK's first merchant to
:16:53. > :16:57.go online? Yes, back in the early 90s. It was pretty revolutionary.
:16:58. > :17:04.You could order wine online and have it delivered. We are still doing
:17:05. > :17:12.that today. The way you came is an interesting story, you had gone to
:17:13. > :17:17.Tesco as wine director and then you went to Berry Bros. How did you find
:17:18. > :17:19.it crossing the fence? I've not worked out whether it is put your
:17:20. > :17:28.turned gamekeeper or the other around. -- poacher. I worked with
:17:29. > :17:32.Tesco, and when I was told, do you want to take on the biggest wine
:17:33. > :17:37.buying job in the world it was quite hard to decline. Very different
:17:38. > :17:41.businesses. One was about entrepreneurialism and the other was
:17:42. > :17:45.about consistency. But in both cases it has been customer focused. Most
:17:46. > :17:51.retailing is about customers and people. It is interesting you should
:17:52. > :17:55.say that. In the news at the moment there is talk of tension between
:17:56. > :18:04.suppliers and supermarkets, especially with the devaluation of
:18:05. > :18:08.the pound and what that means. Take us through that. We always get the
:18:09. > :18:13.impression the relationship is not good between Tesco and suppliers.
:18:14. > :18:23.The buyer and the seller will always have a convert of relationship. --
:18:24. > :18:26.combative relationship. I really enjoyed it and our suppliers
:18:27. > :18:32.realised we were a business aiming to do the best job for customers. We
:18:33. > :18:39.have enthusiastic negotiations with our suppliers for similar regions.
:18:40. > :18:48.Let's talk about sterling. It has been falling. Have you felt the
:18:49. > :18:55.impact? It has been marginal so far. If you go back a few years the
:18:56. > :18:59.exchange rate was roughly the same. It is not somewhere we've been
:19:00. > :19:08.before but the speed has caught everybody by surprise. It is going
:19:09. > :19:12.to have to happen. If we get stability we will predict for the
:19:13. > :19:19.future. Most of your sales are for individuals. Just over half. Two
:19:20. > :19:29.used order wine for them and people can sell each other's wine. We have
:19:30. > :19:33.a unique thing called PBX. It is an exchange. We have a lovely shared
:19:34. > :19:42.down in Basingstoke. It is very glamorous. -- storage facility. We
:19:43. > :19:48.keep wine there and we allowed customers to sell to other
:19:49. > :19:52.customers. We want to know about Buckingham Palace. What are you
:19:53. > :19:58.allowed to tell us. It's just down the road. Quite close. We want to
:19:59. > :20:08.know about their drinking habits. My chairman, the seventh generation
:20:09. > :20:14.chairman, is keeper of the Queen's wine cellar. I'm sure he's not
:20:15. > :20:18.allowed to tell anything. He doesn't tell me anything! But we are very
:20:19. > :20:24.proud of having a warrant and we have had it since the 17th century.
:20:25. > :20:28.What is the most expensive wine you've got? We've got a Magnum of
:20:29. > :20:33.Burgundy for ?16,000. I think it is a collectors item. So little of it
:20:34. > :20:43.was made and it is a wine that everybody wants. We could talk for
:20:44. > :20:47.hours. Thank you for your time. Throughout the week we've been
:20:48. > :20:50.hearing personal stories of workers and entrepreneurs who are driving
:20:51. > :20:53.what is known as the gig economy. Over the last year Brazil
:20:54. > :20:56.has seen a huge jump in its unemployment rate -
:20:57. > :20:58.and this type of freelance work has helped many
:20:59. > :21:00.there to keep earning an income. We hear from two people who say
:21:01. > :22:06.the gig economy is working for them. I love the fact that she can stay at
:22:07. > :22:10.home with her dog. We ask you at the beginning of the programme, you
:22:11. > :22:17.invest in the finer things? Interest rates, some of you have been getting
:22:18. > :22:25.in touch. We've had a tweet from Sonia seeing she would invest your
:22:26. > :22:30.money in guilt tracker funds. Andy says peer-to-peer lending sites have
:22:31. > :22:33.been around since 2006, at the time they were seen as very
:22:34. > :22:49.revolutionary, now it's a standard recess. One of you did mention wine.
:22:50. > :22:57.We should have spoken about that with a guest. We've got Dominic
:22:58. > :23:06.O'Connell with us. Good morning. We're going to start with this story
:23:07. > :23:13.on sterling. It says the pound could crash a further 10%. We've seen it
:23:14. > :23:18.down 19% against the dollar. Still further to go? Could be. If you look
:23:19. > :23:22.at the history of the pound it has had this ever since the Second World
:23:23. > :23:29.War, and a typical correction has been around 25%. If you look at that
:23:30. > :23:33.then it does not look out of order but yesterday it had the best day
:23:34. > :23:36.since the vote. There will be a lot of flip-flopping around as we go
:23:37. > :23:42.through this political process of negotiating the terms. One report
:23:43. > :23:47.yesterday was that Parliament would get the final vote, that gave it the
:23:48. > :23:53.best day. If Goldman Sachs is right, what impact will it have? You will
:23:54. > :23:57.see what we had last week, more of that. This thing of imported goods
:23:58. > :24:04.being more expensive and falling living standards. Her first speech
:24:05. > :24:09.was, I'm going to improve living standards. If, in her first year,
:24:10. > :24:16.living standards fall, that's a political problem let's move on to
:24:17. > :24:24.Yahoo. Earnings more than doubling. The market expectation comes after
:24:25. > :24:27.this big data hack. Everybody thought it would send people
:24:28. > :24:32.scurrying away from them. It has not happened. It may be too early to
:24:33. > :24:36.tell. Some analysts said it will have checked they have not been
:24:37. > :24:42.compromised. I think Yahoo is benefiting from customer inertia.
:24:43. > :24:46.People don't pay much attention to these reports. More interesting,
:24:47. > :24:52.they are about to sell the online business, the bit we think of as
:24:53. > :25:04.Yahoo, in America. But the most valuable bit is the 15% stake they
:25:05. > :25:17.own in Ali Baba from China. Let's talk about these reports that the
:25:18. > :25:21.CEO of Nissan Renault could be on the move. What do you do to the man
:25:22. > :25:26.who is chief executive of the biggest car companies in the world?
:25:27. > :25:34.You give him a third. Nissan is about to buy 30% of Mitsubishi. It
:25:35. > :25:43.has all was been the weakest of the Japanese car-makers. It will happen
:25:44. > :25:49.after a board meeting in December. They need to be turned around. The
:25:50. > :25:53.comings and goings. Watch this space. Thanks for coming by the
:25:54. > :25:58.studio. That's it for another day. We're back tomorrow. See you soon.
:25:59. > :26:11.Goodbye. It looks like a pretty reasonable
:26:12. > :26:15.day across most parts of the United Kingdom. Some showers in the
:26:16. > :26:17.forecast but most places for most of the claim will have a reasonable day
:26:18. > :26:18.with some spells of