:00:00. > :00:07.This is Business Live from BBC News with Susannah
:00:08. > :00:14.Latest growth figures from the world's second biggest
:00:15. > :00:20.Live from London, that's our top story
:00:21. > :00:40.China grows faster than expected - but will measures to rein in debt
:00:41. > :00:44.put the brakes on the world's second biggest economy.
:00:45. > :00:49.The UK's Brexit secretary urges for both sides
:00:50. > :00:52.to get down to business - as the second round of formal talks
:00:53. > :01:05.This is how the European markets have been faring so far, the FTSE
:01:06. > :01:06.100 in positive territory following on from a record close on Wall
:01:07. > :01:07.Street on Friday. And the transformation
:01:08. > :01:09.from sugary sodas - to sparkling water -
:01:10. > :01:11.we'll be talking to And Game of Thrones -
:01:12. > :01:16.the penultimate series of the blockbuster tv series
:01:17. > :01:18.is kicking off. It's reportedly worth
:01:19. > :01:21.a billion dollars a year. We want to know, are
:01:22. > :01:24.you still gripped and why? China's economy is the focus
:01:25. > :01:44.of attention today. It has grown more than
:01:45. > :01:46.expected in the second quarter of this year -
:01:47. > :01:49.by 6.9% - this matters because the country is regarded
:01:50. > :01:52.as the world's factory. It's also the world's
:01:53. > :01:56.second biggest economy. As you can see here, it's a far cry
:01:57. > :02:00.from how things used to be - this shows how for much of the last
:02:01. > :02:03.25 years, China has been One of the big worries
:02:04. > :02:12.is this number. 258% is the size of China's debts
:02:13. > :02:14.compared to its economy. That means it owes more
:02:15. > :02:17.than two and a half time Much of the debt is linked
:02:18. > :02:21.to the red hot property market which the government
:02:22. > :02:23.is trying to cool. The cost of new housing in major
:02:24. > :02:26.cities rose 10.4% in May. The government also looks
:02:27. > :02:28.likes it is succeeding This year Chinese firms have spent
:02:29. > :02:34.$75.2bn on foreign merger and acquisitions which is down
:02:35. > :02:36.almost half on the same Financial regulation has
:02:37. > :02:41.become a top priority This weekend he's been at a meeting
:02:42. > :02:46.of regulators in Beijing where he called for the country's
:02:47. > :02:49.central bank to take a bigger role Stephen McDonnell is our
:02:50. > :03:04.Beijing Correspondent. We just heard a run through the
:03:05. > :03:07.numbers, the second-quarter figures coming in slightly ahead of
:03:08. > :03:14.expectations but to what degree can we trust the numbers? That's a very
:03:15. > :03:17.good question. I was going to save the government will be very happy
:03:18. > :03:22.with these figures, better than expected at you have to take into
:03:23. > :03:28.account that some analysts don't trust the GDP figures in China.
:03:29. > :03:30.That's because some provinces inflate their own performance to
:03:31. > :03:35.appear better than they have been and others play it down because they
:03:36. > :03:38.want to attract top from central government and there's been all
:03:39. > :03:43.sorts of problems in recent times, getting the problems is to tell the
:03:44. > :03:47.truth about GDP figures. Nevertheless I think the trajectory
:03:48. > :03:52.is probably right, it's down on what it was in years gone by that people
:03:53. > :03:57.should also keep in mind it's coming off a much bigger base. Imagine, six
:03:58. > :04:03.and a half percent growth now is probably better than 8% growth some
:04:04. > :04:08.years ago because it's coming off so much more and really, economists
:04:09. > :04:13.have been saying China was growing too fast anyway, that was part of
:04:14. > :04:18.the problem. We heard before the problems of debt, housing prices,
:04:19. > :04:22.problems with pollution, all to do with breakneck growth, they've got
:04:23. > :04:27.to slow it down and the country is dry to do that, the government dry
:04:28. > :04:30.to Tay Bridge so the economy doesn't collapse, it can slow down to a
:04:31. > :04:35.manageable level and keep going at something more like, 4% or less.
:04:36. > :04:40.There are still concerns the amount of money being put into zombie
:04:41. > :04:46.companies, those which aren't creating much, what is planned as
:04:47. > :04:51.far as the government is concerned to try and crack down on these and
:04:52. > :05:00.limit them? One of the indications that worried people is capital
:05:01. > :05:04.flight for example, seem as a big food of no confidence in the Chinese
:05:05. > :05:08.economy. Look how many companies and individuals are dry to get money out
:05:09. > :05:12.of the country, the government is dry to calm down the horses. They
:05:13. > :05:19.are worried about overpriced housing, the value of the local
:05:20. > :05:24.currency, dead is a huge problem. I know I keep saying one thing and
:05:25. > :05:29.then another but the thing with debt here is that it's a bit different,
:05:30. > :05:34.it's old within the Communist Party if you like. Some would say it's not
:05:35. > :05:37.as big a problem as others would think because it's kind of like the
:05:38. > :05:41.Catholic Church, one part of it going the other arm of the Catholic
:05:42. > :05:47.Church monies so if they really want to sort it out in the end, they can.
:05:48. > :05:52.But we have to see to what extent this country can maintain its growth
:05:53. > :05:56.and in the long run, shift from relying so much on exports and keep
:05:57. > :06:02.building up the middle class here and pushing for more of a domestic
:06:03. > :06:04.consumption driven model. The Chinese economy going through this
:06:05. > :06:11.big period of adjustment, Stephen, thank you.
:06:12. > :06:14.Let's take a look at some of the other stories making the news...
:06:15. > :06:16.Brexit Secretary David Davis has called on both sides
:06:17. > :06:19.in the negotiations on the UK's departure from the European Union
:06:20. > :06:23.Mr Davis is in Brussels for a second round of formal talks on Brexit.
:06:24. > :06:26.He said his priority was to "lift the uncertainty" for EU citizens
:06:27. > :06:31.living in the UK and Britons living in the EU.
:06:32. > :06:35.A major cyber attack could cost the global economy around
:06:36. > :06:37.$53 billion dollars - according to research
:06:38. > :06:48.That's roughly the same cost as Superstorm Sandy,
:06:49. > :06:58.the hurricane that hit the east coast of the United States in 2012.
:06:59. > :07:03.Sony is in the final stages of buying believed digital according to
:07:04. > :07:08.Japanese media. Sony will get a majority stake and the transaction
:07:09. > :07:14.is expected to come to a close later this year. Lots of stories catching
:07:15. > :07:26.our attention on the business website. This one in particular. The
:07:27. > :07:33.city envoy saying France wants a disruptive Brexit, hoping to disrupt
:07:34. > :07:37.London's role. This is according to the City of London envoy to the EU.
:07:38. > :07:42.Jeremy Browne saying venture parodies seeking destruction, in
:07:43. > :07:48.favour of the hardest Brexit to take opportunity to win business for
:07:49. > :07:51.Paris. And much more on the business life page, we'll be bringing you
:07:52. > :07:52.some other highlights throughout the programme.
:07:53. > :07:54.South Korea has announced the biggest rise in
:07:55. > :08:06.Leisha Santorini is in Singapore - why such a big raise now?
:08:07. > :08:12.In short it's because South Korea's new President is trying to get
:08:13. > :08:15.people to spend more in order to reduce the economy's reliance on
:08:16. > :08:22.exports and that's why they are raising the minimum rate wage next
:08:23. > :08:27.year by 16% to $6.60 per hour, the biggest jump since 2001. The
:08:28. > :08:33.President wants to increase it further in the coming years to about
:08:34. > :08:38.$8 80 by 2020. The decision to increase wages wasn't easy, it took
:08:39. > :08:44.more than a month of negotiations between business and labour groups,
:08:45. > :08:47.businesses oppose a large increase to wages because they say it will
:08:48. > :08:55.hurt profitability and it will be to job losses. The trade unions say
:08:56. > :08:59.higher wages are needed to ensure families have a minimum level of
:09:00. > :09:02.dignity, both sides coming to a compromise and part of that entails
:09:03. > :09:07.giving small-business owners financial aid in order to help
:09:08. > :09:12.offset the wage increase and that's going to be paid for by the
:09:13. > :09:13.government as well. Thank you. Let's check in with the rest of the
:09:14. > :09:16.financial markets. The Nikkei is closed
:09:17. > :09:18.for a public holiday today. It will be interesting to see how
:09:19. > :09:21.investors will react to the news that Sony is in the final stages
:09:22. > :09:24.of talks to acquire French music distribution
:09:25. > :09:25.providing Believe Digital. Other indices have mainly risen
:09:26. > :09:27.in Asia following another record However, Shanghai stocks fell
:09:28. > :09:34.after the data came through showing China's economy grew more
:09:35. > :09:36.than expected in the second quarter. It's because, as we were discussing
:09:37. > :09:38.earlier, about those ongoing concerns about China's debt burden
:09:39. > :09:41.and the lack of reforms many This is what it's
:09:42. > :09:50.looking like in Europe. EasyJet's share price
:09:51. > :09:53.has fallen after news its Chief Executive Carolyn McCall
:09:54. > :09:55.is to head up the UK broadcaster ITV and its shares
:09:56. > :10:05.have risen as a result. We'll talk more about that in a
:10:06. > :10:07.moment. After that record close for both
:10:08. > :10:10.the Dow and the S 500 on Friday, Michelle Fleury has the details
:10:11. > :10:21.about what's ahead From banking to consumer goods to
:10:22. > :10:24.the tech sector, we learn a lot more about the help of corporate America
:10:25. > :10:27.this week as firms continue to report quarterly profits. This
:10:28. > :10:31.Monday the world's largest money manager Blackrock leases its
:10:32. > :10:37.second-quarter profits, at the end of the previous quarter it had by
:10:38. > :10:42.$.4 trillion worth of assets under management. Netflix is piling up any
:10:43. > :10:45.nominations, investors in the streaming service hope its strong
:10:46. > :10:50.content will lead to more than just critical accolades when it reported
:10:51. > :10:57.quarterly profits this Monday. It shows like 13 reasons why and
:10:58. > :10:59.stranger things, Wall Street expects Netflix to report substantial growth
:11:00. > :11:05.in the number of viewers signing up for its servers. The company is
:11:06. > :11:06.projected to have added 600 and the 1000 subscribers in the US during
:11:07. > :11:09.the quarter. Thank you. Joining us now is David Buik
:11:10. > :11:19.from Panmure Gordon. Good morning. Ladies, what a joy.
:11:20. > :11:24.Let's talk about what's happening on the markets. Trading in the narrow
:11:25. > :11:29.band but lots going on. There is a lot of business going on, it's
:11:30. > :11:34.interesting, a feeling which Michelle referred to, that the
:11:35. > :11:38.quarter earnings in the United States will be quite good. We had
:11:39. > :11:44.three large banks on Friday all beating expectation, whose one
:11:45. > :11:51.junior members club that people didn't like, the fact trading
:11:52. > :11:57.revenues in the large banks, down 19%, JP Morgan down 6%, Citigroup,
:11:58. > :11:59.but the real bread and butter and King was in grade order and the
:12:00. > :12:05.prospect of higher interest rates in the United States looks good but
:12:06. > :12:08.these shares have rallied between 23-35% since the 8th of November
:12:09. > :12:13.last year. It is interesting given the fact tax cuts promised are still
:12:14. > :12:20.some way off, even so... Infrastructure spending still miles
:12:21. > :12:24.off. The expectation is there because Janet Yellen and said she
:12:25. > :12:30.hopes to raise interest rates slowly and stop quantitative easing, not
:12:31. > :12:35.stop it but Tay Bridge as far as she can. Do you think the Brits we
:12:36. > :12:41.should keep an eye on going forward, as far as US stocks are concerned?
:12:42. > :12:44.Obviously Netflix today, a lot of other companies like Johnson and
:12:45. > :12:50.Johnson, I want to see how they are getting on, what we want by the end
:12:51. > :12:54.of this week as a prop church of exactly how all the sectors have.
:12:55. > :12:58.We've heard about financial, some of the consumers will say Johnson and
:12:59. > :13:05.Johnson, we need to know about groups like smaller companies. I
:13:06. > :13:15.want to ask you about smaller stock, the sale of food group to Unilever.
:13:16. > :13:18.What the company has had to do in the same way as Unilever did was
:13:19. > :13:23.focus on key businesses. They are about to pay 18 billion dollars for
:13:24. > :13:29.a main food operator, they have got to make room for that, cut back as
:13:30. > :13:31.much as they can, hopefully selling things like Coremans mustered,
:13:32. > :13:37.Unilever is the favourite but cannot be ruled out, wholemeal foods that
:13:38. > :13:43.make spam, I don't think and I didn't think people make that any
:13:44. > :13:48.more. Keep an eye on the spam! Thank you so much. You're going to stick
:13:49. > :13:49.around and take us through some of the other stories, David, great to
:13:50. > :13:51.have you here. The transformation from sugary
:13:52. > :13:54.sodas to sparkling water. We'll be talking to
:13:55. > :13:56.the head of Soda Stream. You're with business
:13:57. > :14:23.live from the BBC News. The final route for HS2 be announced
:14:24. > :14:30.later. Carillion is amongst the companies awarded the contract ?7
:14:31. > :14:32.billion, information on around 16,000 jobs. Joe Lynam has much
:14:33. > :14:49.more. It's Britain's biggest investment
:14:50. > :14:51.ever in public transport. HighSpeed2 is designed to cut
:14:52. > :14:53.journey times and increase the number of passenger
:14:54. > :14:55.seats between London It's been six years
:14:56. > :14:58.in the planning but now the first construction contracts have been
:14:59. > :15:01.signed, and they're worth ?6.6 billion, which the government says
:15:02. > :15:03.will support 16,000 jobs The first trains aren't
:15:04. > :15:06.expected to run, though, until 2026, by which time they hope
:15:07. > :15:09.to carry 300,000 passengers per day. ?50 billion on a track
:15:10. > :15:11.of this nature... The Stop HS2 Campaign
:15:12. > :15:17.in the Chiltern says it will only benefit the richest in society
:15:18. > :15:22.and the corporations who build it. And reports on the weekend said HS2
:15:23. > :15:25.could end up as the most expensive Even so, the muddy work of spades
:15:26. > :15:30.in the ground begins next year for what the government
:15:31. > :15:32.calls "The backbone Let's check in with
:15:33. > :15:52.the financial markets. We have an update on the BBC Online
:15:53. > :15:55.website, ITV naming easyJet's Carolyn McCall as the new Chief
:15:56. > :16:01.Executive. As we were saying earlier, on the back of this story
:16:02. > :16:06.we saw that ITV shares have rallied whilst easyJet's have taken a slump.
:16:07. > :16:10.Carolyn McCall appointed adds the new Chief Executive of the
:16:11. > :16:15.broadcaster ITV, having formerly been at the budget airline easyJet.
:16:16. > :16:18.There's been a lot of speculation on this move already affecting the
:16:19. > :16:24.share prices of both the companies. Now we have that story confirmed.
:16:25. > :16:30.Much more on the BBC website for you, including the Biz live page.
:16:31. > :16:44.Overseas landlords shun the UK as tax changes bite.
:16:45. > :17:04.China's economy grew at 6.9%, higher than many forecast. It's trying to
:17:05. > :17:06.rein in debt. Let's check in with
:17:07. > :17:10.the financial markets. The Nikkei is closed
:17:11. > :17:34.for a public holiday today. A quick look at how
:17:35. > :17:37.the markets are faring. Today we are going to get busy
:17:38. > :17:43.with a fizzy, a slogan that was made to sell sugary sodas,
:17:44. > :17:45.which is now being used to persuade consumers to switch
:17:46. > :17:48.to sparkling water instead. Soda Stream originated in 1903
:17:49. > :17:50.with the first apparatus that It reached maximum popularity
:17:51. > :17:54.in the 60s and 70s, aided by the tag line that we mentioned,
:17:55. > :17:57.as bottle shops became hangout In 1991, the drinks-maker
:17:58. > :18:00.was purchased from Cadbury-Schweppes In 2014, the company switched focus
:18:01. > :18:05.from the overcrowded flavoured drinks market to sparkling water
:18:06. > :18:08.with an environmental plastic-free emphasis,
:18:09. > :18:10.a shift that saw a quadrupling We are joined by Daniel Birnbaum,
:18:11. > :18:25.CEO of Soda Stream. Thank you for coming in and bringing
:18:26. > :18:30.some freshly carbonated water for us. We have been mentioning how long
:18:31. > :18:36.soda stream has been around, 100 years, but there's been a see
:18:37. > :18:39.change. You were known for sparkly, fizzy sweet unhealthy drinks but now
:18:40. > :18:43.you are making the shift into healthy sparkling water. How are you
:18:44. > :18:48.managing to get that message across? That's right. Soda stream is a brand
:18:49. > :18:53.in transition and we used to be a fizzy drinks maker. Then in 2014 we
:18:54. > :18:57.announced a strategy to focus on sparkling water. Today we are the
:18:58. > :19:04.largest sparkling water brand in the world, three times the size of San
:19:05. > :19:08.Pellegrino. We are one of the fastest growing brands in the world
:19:09. > :19:12.so something is work, here. It's about the consumer, voting against
:19:13. > :19:21.sugar and disposable plastic bottles. This bottle can make 30,000
:19:22. > :19:27.litres of sparkling water, 3,000! In a world where we are creating so
:19:28. > :19:31.much trash, it's a billion and a half disposable bottles every single
:19:32. > :19:35.day are manufacturered and used, which is incredible. This waste is
:19:36. > :19:39.going nowhere. All the plastic that's ever been created in the
:19:40. > :19:45.world still exists. In the garages up and down this country, there'll
:19:46. > :19:52.be lots of redundant soda streams. I have one in our house because I had
:19:53. > :19:55.one when I was growing up and there is a sticky residue in the
:19:56. > :20:03.cupboards. What is the market now, not children any more? There are
:20:04. > :20:13.millions of soda streams in homes because everyone used to have one.
:20:14. > :20:17.It's easy and convenient, you save money, you are healthy. Or just
:20:18. > :20:22.drink tap water? Exactly. It's cheap and safe. While we have the
:20:23. > :20:27.companies out there, the bottled brands led by Coca-Cola and Nestle
:20:28. > :20:32.that are seducing customers into believing tap water is unsafe and
:20:33. > :20:35.they should pay money for the bottled waters, at soda stream, we
:20:36. > :20:38.are saying drink tap water. If you want the bubbles, we have a device
:20:39. > :20:42.to help you do that cheap and easy. There are a lot of markets that you
:20:43. > :20:46.are not going into because you are dubious about the quality of the tap
:20:47. > :20:50.water? Well, no, we are already in 45 countries in the world, the
:20:51. > :20:55.fastest growing... You are not in China or Brazil? We are in Brazil.
:20:56. > :21:00.In China we are waiting because we have so much growth potential where
:21:01. > :21:04.we are. 60% of our revenue comes from Europe, the largest market is
:21:05. > :21:08.Germany. We expect the UK to vote against plastic waste and drink tap
:21:09. > :21:11.water and if they want bubbles use soda stream and bring in their old
:21:12. > :21:17.machines, we'll give a heavy discount on a new device. I want to
:21:18. > :21:22.ask you about controversy that's surrounded the firm and it's also
:21:23. > :21:25.the track fill which was located, there was a boycott at one point.
:21:26. > :21:30.What have you done to try to tackle that issue? That is true. We used to
:21:31. > :21:35.have a factory in the West Bank in Israel. We shifted that factory
:21:36. > :21:40.because we grew so much, we needed to relocate. What we do is, we do
:21:41. > :21:44.the economy of peace. We reach out to people from both sides of the
:21:45. > :21:48.conflict, Palestinians and Israelis. We employ 2,000 people in Israel and
:21:49. > :21:54.get people to know each other and live together and respect each other
:21:55. > :21:58.and celebrate coexistence. I invite you to come and visit the factory
:21:59. > :22:04.and you will see what peace looks like and we are proud of that. It's
:22:05. > :22:06.a big claim. It is. Thank you very much for coming in. Thanks for
:22:07. > :22:28.having me. Online shaving subscriptions are out
:22:29. > :22:35.there now. Products like shaving foam and gel can be delivered to
:22:36. > :22:42.your home. The CEO secret team have been
:22:43. > :22:44.talking to the man who has been behind this. Focus on your
:22:45. > :23:00.priorities. My days can be really busy, filled
:23:01. > :23:03.with meetings, runs around from place-to-place, I wake up, I'm on my
:23:04. > :23:07.phone seeing what happened overnight. My daughter comes in and
:23:08. > :23:13.joins me, grabs my phone and starts to try to eat it which is usually a
:23:14. > :23:16.good reminder, I try to schedule blocks of time, one or two hours of
:23:17. > :23:21.uninterrupted time, pretend like it's a meeting. It's hard to get ten
:23:22. > :23:25.things done when you are trying to juggle all ten done at once. It's
:23:26. > :23:28.easier to get two or three things done if you can create time and
:23:29. > :23:40.space to focus on the two or three things.
:23:41. > :23:43.Let's see what other stories are being talked
:23:44. > :23:50.Joining us again is David Buik from Panmure Gordon.
:23:51. > :23:56.Lloyds says cyber attack comed cost $120 billion, the same as Hurricane
:23:57. > :24:01.Katrina, but there is a caveat. It says it's very difficult to try and
:24:02. > :24:05.assess the costs really? It's impossible, but what I'm really
:24:06. > :24:09.pleased about is the Chief Executive of Lloyds of London has thrown not a
:24:10. > :24:12.pebble in the water but a bolder, saying Guys and Dolls, if you don't
:24:13. > :24:21.watch out, this is what can happen. So you cannot do enough in terms of
:24:22. > :24:30.security. Hurricane Katrina in 2005 cost about $105 billion and there
:24:31. > :24:34.was a more recent one in 2012 which cost about $50-$60 billion. There
:24:35. > :24:42.are two areas where we need to be careful. One is the business of the
:24:43. > :24:46.cloud. That could cost $53. The figure varies between 15 and 120
:24:47. > :24:50.billion dollars, the second most likely is computer operating systems
:24:51. > :24:55.where they think the loss could be as much as 28.7. We had the national
:24:56. > :25:00.health system hijacked last time and we got away with murder thanks to
:25:01. > :25:04.the young fellow coming out of the clouds from nowhere. It was
:25:05. > :25:11.extraordinary. Lucky. It won't be as lucky as that next time. Is it
:25:12. > :25:14.Governments that need to act or... And corporate people and the
:25:15. > :25:18.computer companies. It's a full-on job. I want to ask you about what we
:25:19. > :25:23.have all been talking about, the fact that here in the UK tonight we
:25:24. > :25:29.can watch the first series of Graham of Thrones, we asked our viewers if
:25:30. > :25:34.they were excited. Nicholas says too much gratuitous sex and violence,
:25:35. > :25:40.not seen any of it. Derek says I wish the books stayed ahead of the
:25:41. > :25:44.series. And Trevor says the greatest TV series of all-time. It's a
:25:45. > :25:49.money-spinner if nothing else? There are 30 million people that disagree,
:25:50. > :25:55.of course, you know! 8.9 million watched the last episode and this is
:25:56. > :25:59.the seventh series. Keeps running. Never beat Sopranos in a million
:26:00. > :26:00.years. There you've got it. Thanks for coming in.
:26:01. > :26:05.There'll be more business news throughout the day on the BBC live
:26:06. > :26:07.web page and on ward business news report.
:26:08. > :26:17.Some warm, even hot temperatures in the first part of the week. The risk
:26:18. > :26:18.of a thunder storm