:00:00. > :00:00.BBC World News. Now for the latest financial news with World Business
:00:00. > :00:18.Report. Trade talks resume between the US
:00:19. > :00:22.and EU to create the world's largest free trade agreement. But Europe
:00:23. > :00:26.won't pander to German demands to include a data protection clause in
:00:27. > :00:29.the deal. And it's the world's biggest online
:00:30. > :00:31.shopping bonanza. Cyber Monday in China could reap sales of nearly $5
:00:32. > :00:45.billion. Welcome to World Business Report.
:00:46. > :00:48.Also in the programme ` as China's leaders meet to discuss economic
:00:49. > :00:53.policy we focus on its poorest region and what difference their
:00:54. > :00:56.decisions will make. It's poised to be the biggest
:00:57. > :00:59.free`trade deal in history. Today, the second round of talks resume
:01:00. > :01:02.between the United States and the European Union to agree on what's
:01:03. > :01:07.known as the Transatlantic Trade and Investment Partnership. The talks,
:01:08. > :01:12.which are expected to last a week, were postponed due to the US
:01:13. > :01:16.government shutdown. Officials are aiming to have a deal signed by the
:01:17. > :01:21.end of this year, which would create a market of 800 million people.
:01:22. > :01:24.Already, together, the US and the EU account for around $30 trillion of
:01:25. > :01:27.annual output, almost half the world's total, and it's estimated
:01:28. > :01:30.that greater free trade between them has the potential to boost economic
:01:31. > :01:39.growth by $100 billion per year in reduced tariffs. However, the talks
:01:40. > :01:42.have been overshadowed by the recent leak that America's security agency
:01:43. > :01:47.has been tapping German Chancellor Angela Merkel's mobile phone. The
:01:48. > :01:53.allegation resulted in Germany pushing to include data protection
:01:54. > :01:57.rules in the talks. But EU officials in Brussels have denied this will
:01:58. > :02:06.happen. With me is Holger Schmieding, Chief Economist at
:02:07. > :02:08.Berenberg Bank. It is lovely to see this morning.
:02:09. > :02:16.Politics always features heavily in trade discussions. These talks this
:02:17. > :02:18.week will be made that much more difficult because of the spying
:02:19. > :02:26.story emanating from the US regarding Angela Merkel and other EU
:02:27. > :02:30.leaders. What you think of Germany's move to include the data
:02:31. > :02:35.protection clause? A think it should be left aside. They should be
:02:36. > :02:39.separate negotiations. They should not be tied to trade talks. Judging
:02:40. > :02:50.the political mood on the European continent, to get a trade deal
:02:51. > :02:54.ratified will need to see some data protection deal. These are separate
:02:55. > :02:58.issues, they should not be tied up into one negotiation. There is a lot
:02:59. > :03:04.of difficult things to be talked about. The US is accusing Germany of
:03:05. > :03:11.driving out competition in Europe with its strong exports, tell us
:03:12. > :03:16.more about that and how it could affect these talks is weak. The
:03:17. > :03:25.reason a discussion between the US and some European countries. We are
:03:26. > :03:29.now in the stage of trade talks. German exports are a great
:03:30. > :03:34.contribution to global trade. Germany is a competitive country.
:03:35. > :03:39.Other parts of Europe need to be more competitive. They are trying to
:03:40. > :03:45.get there. If we look at the latest data, we see that the German trade
:03:46. > :03:57.surpassed the rest of the eurozone. It has come down sharply. Germany is
:03:58. > :04:01.even now. It is the resulting boom that we have in the US that sucks in
:04:02. > :04:07.German imports. The German strength is relative to the US, they have a
:04:08. > :04:12.strongly growing economy. German strength is no longer relative to
:04:13. > :04:15.the rest of the euro. When we look at it at that we have a week of
:04:16. > :04:20.talks ahead of this, they are hoping to have a deal in place by the end
:04:21. > :04:27.of the year. How optimistic RU? These talks are riddled with all
:04:28. > :04:31.sorts of issues. I am optimistic by nature, but this is an ambitious
:04:32. > :04:36.task to get trade talks completed by the end of the year. Chances are
:04:37. > :04:42.that we will hit a few roadblocks. What are they likely to be? There
:04:43. > :04:49.are issues of deregulation when it comes to services. Can you as
:04:50. > :04:55.financial firms operate freely? It is to make a modified food, these
:04:56. > :04:59.type of consumer protection issues. Always good to have it on the
:05:00. > :05:02.programme. We will keep you up`to`date as the week progresses on
:05:03. > :05:06.how those trade talks are going. Tens of millions of Chinese internet
:05:07. > :05:08.users stayed up on Sunday night to shop for bargains at midnight, when
:05:09. > :05:14.online retailers slashed prices by at least 50%. It has become the
:05:15. > :05:17.biggest day of the year for Chinese consumers. Last year, the Alibaba
:05:18. > :05:19.group alone accounted for $3.1 billion worth of transactions, far
:05:20. > :05:34.surpassing big shopping days in the US or Europe. Our Hong Kong
:05:35. > :05:41.Correspondent Juliana Liu reports. No, this isn't latest animated
:05:42. > :05:47.children's game, it is a promotion for China's version of cyber Monday.
:05:48. > :05:52.Retailers here on Alibaba compete against each other, promising
:05:53. > :05:59.savings of at least 50%. This Hong Kong watchmaker has a virtual shop.
:06:00. > :06:03.The company has long had a physical presence, but now it is betting big
:06:04. > :06:09.on the Internet. It expects to sell more watchers on Monday than it
:06:10. > :06:14.normally sells in two months. TRANSLATION: In China, online
:06:15. > :06:21.shopping is more popular than normal shopping. Customers have become used
:06:22. > :06:26.to playing in this way. The online shopping experience is so
:06:27. > :06:28.convenient. The biggest winner on the day will be Alibaba, the
:06:29. > :06:34.Internet giant that started their sales events. They have boosted
:06:35. > :06:41.their network capacity to cope with the extra demand. It is about 2.5
:06:42. > :06:45.times what we prepared last year. We are very well`prepared this year for
:06:46. > :06:54.the in traffic. Last year, in the first minute alone week has 10
:06:55. > :06:58.million unique visitors. To find out how keen Chinese shoppers are to
:06:59. > :07:04.open their wallets online, we have come to one of Hong Kong's
:07:05. > :07:11.best`known retail areas. TRANSLATION: Atlanta's buy shoes and
:07:12. > :07:17.handbags. A lot of the big brands are selling online. It is much
:07:18. > :07:22.cheaper than normal. TRANSLATION: There is nothing there that I want.
:07:23. > :07:26.A friend had told me it is a feisty get the good stuff. If you wanted,
:07:27. > :07:31.you have to wait by the computer and constantly refresh the page to
:07:32. > :07:38.order. You have to be so fast. I do not think it is worth it. The sale
:07:39. > :07:44.is worth it to tens of millions of online shoppers who will be using
:07:45. > :07:49.their online smart phones to bring up another record year.
:07:50. > :07:52.It sounds quite hectic. We will stay with China.
:07:53. > :07:54.Strong economic data out of China over the weekend will offer some
:07:55. > :07:57.confidence to the country's leaders who are currently meeting to
:07:58. > :07:59.determine changes to policy for the coming decade. Industrial production
:08:00. > :08:03.data beat expectations while inflation came in lower than
:08:04. > :08:06.forecasts. It's the third and penultimate day of the Plenum, at
:08:07. > :08:12.which the Chinese government is sounding the horn to comprehensively
:08:13. > :08:18.deepen reform. That's according to the People's Daily, which is the
:08:19. > :08:20.Communist Party's mouthpiece. The BBC's China correspondent Martin
:08:21. > :08:28.Patience is in Henan Province, one of the country's poorest regions.
:08:29. > :08:32.Good to see you. Before we talk about what impact the region you are
:08:33. > :08:40.in will feel as a consequence of the talks, tell us if there is any news
:08:41. > :08:44.out of the gathering. This hugely important meeting is taking place in
:08:45. > :08:51.Beijing, a ten Hour Drive from where I am, while the delegates are
:08:52. > :08:55.meeting in a hotel. According to some reports, they are not allowed
:08:56. > :09:06.to leave the hotel to prevent leaks. Certainly, some details have been
:09:07. > :09:09.emerging. Today we heard some of the scope of the possible reforms to
:09:10. > :09:18.state`owned enterprises. There has been all liquid is and that a lot of
:09:19. > :09:21.criticism saying that the private sector needs a greater say. There
:09:22. > :09:26.was an indication of private investors would be old to buy stakes
:09:27. > :09:30.in those companies. That will be welcomed by economic liberals
:09:31. > :09:38.calling for greater reforms. Thank you. Can question you any further,
:09:39. > :09:42.we are tied for time. We will be hearing from Martin through the day
:09:43. > :09:51.as he analyses what the discussions really mean for areas like high nine
:09:52. > :09:56.in China. There is a lot more online Peter Reid. A little Toshiba
:09:57. > :10:02.markets, it is a mixed picture. You can see Japan standing out, the yen
:10:03. > :10:14.has weakened. Strong jobs news out has boosted demand. Soon as we look
:10:15. > :10:21.to the papers. `` I will see you soon.
:10:22. > :10:27.You are with BBC World News. Singer Miley Cyrus has caused more
:10:28. > :10:30.controversy by smoking what's thought to be cannabis while picking
:10:31. > :10:48.up an award at the MTV European Music Awards in Amsterdam. In a nod
:10:49. > :10:54.to the host, the city's famously tolerant attitude towards drugs. She
:10:55. > :11:05.had visited eight copy shop were drugs were also on the menu. This
:11:06. > :11:11.Mac a coffee shop. The sensationalist Miley Cyrus, ensuring
:11:12. > :11:12.she maintains the spotlight. Thank you guys very much. Good