18/10/2013

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:00:00. > :00:00.sleep to flush out waste toxins. Those are the latest headlines from

:00:00. > :00:00.BBC World News, Time now for the money news with Alice and World

:00:00. > :00:23.Business Report. `` time now. China's economy picks up speed, but

:00:24. > :00:30.it is still on track for its slowest year in more than a decade. We will

:00:31. > :00:37.take a look behind the numbers. Plus, $950 and counting. A new

:00:38. > :00:39.record high for Google as shares in the Internet giant amazes Wall

:00:40. > :00:50.Street yet again. A very warm welcome to you, this is

:00:51. > :00:54.World Business Report with me, Alice Baxter. Also coming up in the

:00:55. > :00:59.programme, unfair exchange. Have traders been trying to fix the $5

:01:00. > :01:04.trillion a day foreign`currency market? We will have the latest on

:01:05. > :01:09.that. But as you've been hearing, in the last couple of hours China has

:01:10. > :01:15.unveiled its growth figures for the third quarter. The world's number

:01:16. > :01:19.two economy grew at a rate of 7.8% between July and September. A slight

:01:20. > :01:24.improvement on the previous quarter and the best figure so far this

:01:25. > :01:28.year. And it is down to improving demand for China's goods around the

:01:29. > :01:32.world and at home, which have boosted factory production and

:01:33. > :01:37.retail sales. It means China is on track to hit the government growth

:01:38. > :01:41.target of 7.5% for this year. Now, that might sound good compared with

:01:42. > :01:49.most major economies, but for China is the weakest growth since 1999.

:01:50. > :01:53.Beijing's trying to rebalance the economy after three decades of

:01:54. > :01:59.surging growth, fuelled by exports and investment. Linda Yueh explains.

:02:00. > :02:02.China's growth is slowing, but is this deliberate? The government

:02:03. > :02:08.wants the country to grow more sustainably, which means rebalancing

:02:09. > :02:12.the economy. Take a look at this, currently spending by households in

:02:13. > :02:16.China accounts for just over a third of all national output. That's half

:02:17. > :02:21.of that of the US. In fact, China has one of the lowest levels of

:02:22. > :02:26.consumption in the world. For most developed economies, like the UK and

:02:27. > :02:30.Japan, it is around two thirds of GDP. But, on the flipside,

:02:31. > :02:34.investment by firms is nearly half of Chinese output. And as you can

:02:35. > :02:40.see that's actually three times higher than the US and the UK. China

:02:41. > :02:43.wants this to change to rely less on investment, as some firms are

:02:44. > :02:48.borrowing too much, which can be risky, and increase consumption, get

:02:49. > :02:54.more of the middle`class to spend by raising their income. By rebalancing

:02:55. > :02:58.in this way the Cheney 's government is aiming to grow a 7.5% this year

:02:59. > :03:04.`` the Chinese government is aiming to grow 7.5 this year, but they hope

:03:05. > :03:13.this will be more sustainable. Managing the slowdown, though, is no

:03:14. > :03:17.easy task. Grace is a senior Chinese economist at JP Morgan and she joins

:03:18. > :03:25.us from our Hong Kong bureau. Thanks very much. Growth in China is

:03:26. > :03:37.picking up, but it is still at its slowest pace since 1999. Y? Grace, I

:03:38. > :03:43.wonder if you can hear me? `` why. Despite the fact China's growth is

:03:44. > :03:50.picking up, it is still at its slowest growth rate since we have

:03:51. > :03:55.seen since 1999. Why is that? This is basically reflecting the fact

:03:56. > :03:59.that after the global financial crisis, China's export sector growth

:04:00. > :04:03.has not been matching what we saw in the previous decade. Therefore the

:04:04. > :04:08.export sector is no longer that strong a driver of growth. At the

:04:09. > :04:13.same time the government is trying to rebalance growth, so as to

:04:14. > :04:18.achieve a more balanced growth support from the consumption and the

:04:19. > :04:21.investment front. If they're doing this successfully then hopefully we

:04:22. > :04:26.will see more sustainable growth in the medium`term. So this is a very

:04:27. > :04:29.deliberate action on the part of the Chinese government, to slow down

:04:30. > :04:35.growth from those double`digit figures we have become used to over

:04:36. > :04:37.the last decade or so. This restructuring and rebalancing

:04:38. > :04:45.towards consumer consumption, domestic consumption? That's exactly

:04:46. > :04:53.the case. And what about this question that still hangs over the

:04:54. > :04:56.reliability of these numbers? Yeah, there is definitely always the

:04:57. > :05:01.question about how reliable the numbers are. I guess the way we tend

:05:02. > :05:06.to counter cheque that is using other indicators, such as the more

:05:07. > :05:10.high`frequency PMI number from the government, as well as from the

:05:11. > :05:17.private sector, as well as other data, which tends to be more

:05:18. > :05:23.reliable, as well as the financial data and also trade data. If you

:05:24. > :05:27.look at that from various angles, it is quite consistent that China's

:05:28. > :05:32.growth was picking up somewhat in the third quarter on both the

:05:33. > :05:38.external side as well as the domestic side. And on that actually

:05:39. > :05:43.the government's clarification of its policy target, as in they want

:05:44. > :05:49.to stabilise growth in July, actually helped quite a bit with

:05:50. > :05:52.regard to the domestic sentiment, and therefore supporting domestic

:05:53. > :05:58.activity overall. It's all about that word, sustainability. Grace,

:05:59. > :06:07.thanks very much. Now, Google, shares there jumped to

:06:08. > :06:10.a new record high of more than $950 in after`hours trading after the

:06:11. > :06:15.Internet giant posted strong results after the Wall Street closing bell.

:06:16. > :06:21.Google made profits of almost $3 billion in the three months to

:06:22. > :06:26.September. That's an increase of 36% on the same period last year, and

:06:27. > :06:30.was actually much better than Wall Street was expecting. It's largely

:06:31. > :06:35.down to strong growth in Internet advertising, but as Rico or now

:06:36. > :06:42.reports from New York, the success is put in the country in that

:06:43. > :06:49.company in the spotlight over its tax arrangements. In the movie The

:06:50. > :06:55.Internship, Google is the cool and hip company that everyone wants to

:06:56. > :06:59.join. Inside this slick campus, some of the world 's most innovative

:07:00. > :07:04.minds exchange their new ideas. Its growth may not be as explosive as it

:07:05. > :07:08.once was, but Google continues to lead the industry with its new

:07:09. > :07:11.products and services. In the fast`growing smart phone market as

:07:12. > :07:21.well its android operating system has been the winner. `` Android.

:07:22. > :07:24.Currently there are over 900 million Android markets in the world. This

:07:25. > :07:29.is the website the majority of people come to when they go to

:07:30. > :07:34.search the Internet. Some people even say let's Google rather than

:07:35. > :07:38.let search the web. And those users attract advertisers, and every time

:07:39. > :07:44.people clicked on an advert Google makes money. But in the technology

:07:45. > :07:51.world the fall from grace can be very fast and hard `` people clicked

:07:52. > :07:56.on. Google has really surged with their Google Now products as you

:07:57. > :08:01.speak to your devices `` click. Also knowing what you want before you

:08:02. > :08:04.even know it. It's a little scary to some people because they are looking

:08:05. > :08:09.at your calendar and your Gmail, and they are figuring out you have a

:08:10. > :08:12.flight coming up, or you care about some sport, and they're providing

:08:13. > :08:17.you with that information before you even think to ask for it. But for a

:08:18. > :08:21.company that seemingly can't do any wrong, it's recently faced heavy

:08:22. > :08:26.criticism for not paying a fair share of corporate tax. While not

:08:27. > :08:31.illegal, Google has been taking advantage of low tax rates in

:08:32. > :08:38.countries like Ireland. Until that's resolved, it's hip and cool image

:08:39. > :08:50.may be less than squeakyclean. Now, The Internship... Sorry, moving

:08:51. > :08:56.on, we want to ask is have traders been fixing the $5 trillion a day

:08:57. > :08:58.foreign exchange market? That's the question regulators are now asking

:08:59. > :09:04.from London to Hong Kong to New York. In the last few hours

:09:05. > :09:11.Bloomberg has reported that the authorities are examining electronic

:09:12. > :09:16.messages sent between senior traders at top banks between the last few

:09:17. > :09:20.years. Sharanjit Leyl has been following this from Singapore. What

:09:21. > :09:25.else do we know about this? Essentially sources are saying that

:09:26. > :09:29.these messages sent by senior bankers, from Barclays, Citigroup,

:09:30. > :09:33.Royal Bank of Scotland and UBS, amongst others, they are being

:09:34. > :09:39.scrutinised, part of the global probe into the manipulation of the

:09:40. > :09:44.foreign exchange market. According to the Bloomberg report, the senior

:09:45. > :09:46.bankers over the last three years exchanged messages through their

:09:47. > :09:54.Bloomberg terminals outlining the tile of their positions and client

:09:55. > :09:58.orders and made trades. Investigators are looking into

:09:59. > :10:02.whether those messages are mounted as attempts to manipulate the

:10:03. > :10:06.market. We know Barclays, Citigroup, Royal Bank of Scotland and UBS

:10:07. > :10:11.account for 40% of trade in the foreign exchange market and the

:10:12. > :10:15.U.K.'s financial conduct authority this week opened the formal probe

:10:16. > :10:18.into currency trading, which essentially joined a global

:10:19. > :10:23.investigation that involves regulators in the US, the European

:10:24. > :10:25.Union, Switzerland and Hong Kong. This enquiry comes as regulators

:10:26. > :10:30.around the world basically examine the possible abuse of financial

:10:31. > :10:34.benchmarks by companies that actually play a crucial role in

:10:35. > :10:38.setting them. We know Royal Bank of Scotland and Barclays have already

:10:39. > :10:46.been fined about $2.6 billion in the last two years for fixing the liable

:10:47. > :10:51.rate. We will have to watch to see how this plays out. Thanks very

:10:52. > :10:56.much. From the and the business team, goodbye for this hour. Back

:10:57. > :11:05.for a look at the papers in a moment `` from the.

:11:06. > :11:11.One of the main stories in the UK this morning is a maximum life

:11:12. > :11:15.sentence bore the worst cases of human trafficking and exploitation,

:11:16. > :11:19.which is to be introduced in the UK `` for the. This comes after the

:11:20. > :11:23.reason they said tougher action, sanctions, would be brought in to

:11:24. > :11:27.tackle modern day slavery as it's being called. According to

:11:28. > :11:30.government figures the number of cases of human trafficking

:11:31. > :11:37.discovered in the UK has risen by 25% in the last year. Another

:11:38. > :11:40.early`morning call for the Met's specialist antitrafficking squad.

:11:41. > :11:42.The owner of