:00:00. > :00:00.as it moves across the Philippines. Those are the latest headlines. Now
:00:00. > :00:19.for the latest financial news, Sally, World Business Report.
:00:20. > :00:29.Bang on target, China's economy grows by 7.5%, but could a slump in
:00:30. > :00:38.the housing market halt future expansion? And, Apple and IBM forge
:00:39. > :00:44.a partnership to create business apps for iPads and iPhones.
:00:45. > :00:50.Hello, and welcome. You are with World Business Report, also in the
:00:51. > :00:59.programme: more from the Farnborough airshow whereas small eco` plane is
:01:00. > :01:03.grabbing attention. Growth in China is picking up at a rate better than
:01:04. > :01:07.expected, accelerating by 7.5% in the second quarter, compared to the
:01:08. > :01:12.year before. That hits the growth target set by Premier Li's
:01:13. > :01:16.government. Despite this growth, there are concerns a sharp slowdown
:01:17. > :01:23.in the property market, which makes up 20% of China's economy, could
:01:24. > :01:29.derail the attempts to keep the growth wait at 7.5% or more. ``
:01:30. > :01:36.growth rate. Despite the looming clouds on the
:01:37. > :01:40.economic horizon, this city, like so many others, has just kept on
:01:41. > :01:44.building. Now, though, it may have become the first to face the storm
:01:45. > :01:51.of overcapacity and unsold housing stock. This year, something
:01:52. > :01:55.previously unheard of is rife. Massive property discounting. This
:01:56. > :02:00.brand`new apartment is being advertised with 30% off, leaving
:02:01. > :02:05.those who pay the original price furious. China has been through
:02:06. > :02:10.property wobbles before. The question this time is whether it is
:02:11. > :02:16.just another adjustment, or something more serious and systemic.
:02:17. > :02:18.Some observers suggest that if this country's massive construction boom
:02:19. > :02:26.really is unwinding in a catastrophic way, then it could wipe
:02:27. > :02:31.2% or more of GDP at a stroke. Many analysts fear that China's property
:02:32. > :02:37.market for years, such an important engine of growth, has begun to pose
:02:38. > :02:43.the biggest risk, and there is talk of further government action to
:02:44. > :02:50.support home sales. Others, like this estate agent, said the danger
:02:51. > :02:57.is limited. Chinese families have less debt than those in the West, so
:02:58. > :03:02.they have less to lose. People from the countryside are still flooding
:03:03. > :03:06.to the cities for better education and a better life, he tells me. The
:03:07. > :03:11.demand will always be there. The Chinese government agrees. It is
:03:12. > :03:15.urbanisation, it says, that will ultimately keep growth on track. But
:03:16. > :03:23.if so, critics are beginning to wonder, why are so many new homes
:03:24. > :03:30.deal empty, and why are prices so damp? `` still empty.
:03:31. > :03:36.For decades, these two technology giants have battled to dominate
:03:37. > :03:41.personal computing, but in this new era of tablets and smart phones,
:03:42. > :03:47.they are becoming friends. Apple and IBM have teamed up to provide simple
:03:48. > :03:52.to use business apps, and sell them to business clients. They are
:03:53. > :03:54.developing more than 100 apps to business clients, and they are
:03:55. > :04:01.hoping to make them available sometime later this year.
:04:02. > :04:06.These little devices, they are everywhere. In a city like New
:04:07. > :04:11.York, it seems that almost everyone is cutting some sort of Apple
:04:12. > :04:18.device. They are immensely popular with consumers. But, Apple is
:04:19. > :04:22.aggressively trying to make their products equally ubiquitous in the
:04:23. > :04:28.corporate world, and this partnership with IBM clears the road
:04:29. > :04:32.for them to do just that. IBM is selling Apple products to their
:04:33. > :04:38.corporate clients. IBM is keen to get more of their software onto
:04:39. > :04:43.Apple devices, and Apple is very good at creating simple to use apps.
:04:44. > :04:46.30 years ago it would have been unthinkable to see these two
:04:47. > :04:52.companies working together. In what seems to be a win win for both Apple
:04:53. > :04:56.and IBM, this could also make it virtually impossible for the once
:04:57. > :04:59.industry dominant blackberry to regain any sort of foothold in the
:05:00. > :05:25.corporate world `` BlackBerry. De BRICS bank has been announced,
:05:26. > :05:28.and we report from Fortaleza, Brazil.
:05:29. > :05:33.After hosting football players for the last month, Dilma Rousseff has
:05:34. > :05:38.turned to hosting political leaders. After months of talk, big
:05:39. > :05:42.announcements were made. The BRICS have announced their new development
:05:43. > :05:46.bank, the fund projects in developing markets. It will
:05:47. > :05:51.initially have $50 billion worth of funds, and the capacity to double
:05:52. > :05:55.that figure. As well as the bank, they have agreed on a contingency
:05:56. > :06:00.fund worth 100 $11. It is a pool of money that will help BRICS countries
:06:01. > :06:05.when they are under pressure. These announcements are significant. BRICS
:06:06. > :06:09.countries have long criticised the World Bank and the IMF for not
:06:10. > :06:15.giving developing nations enough representation. I creating their own
:06:16. > :06:20.bank account control where their money goes and what influence they
:06:21. > :06:22.have. BRICS countries say they need an estimated $4.5 trillion to fund
:06:23. > :06:27.infrastructure projects in the next five years. The bank can go some way
:06:28. > :06:31.to plugging the gap, but it is just a start. The big question is whether
:06:32. > :06:36.that institution can really challenge the World Bank and develop
:06:37. > :06:40.a sense of competition, or whether it will be a mere symbol. I think it
:06:41. > :06:47.depends a bit on how these countries get along. They don't really know
:06:48. > :06:51.each other so well. The BRICS nations feel they can offer a better
:06:52. > :06:56.alternative. As Brazil's president said on Tuesday, they can make
:06:57. > :06:59.changes that are equal and fair. These countries want more of a say
:07:00. > :07:03.in global politics, and this is their first step in making that
:07:04. > :07:08.happen. We will discuss that further when we
:07:09. > :07:11.look at the papers. Of all the vintage and state`of`the`art planes
:07:12. > :07:15.at this week's Farnborough airshow, one tiny two seater is taking part
:07:16. > :07:21.in the display. It is standing out because it is almost silent, it
:07:22. > :07:27.doesn't need any kerosene to get off the ground. It is being bankrolled
:07:28. > :07:32.by Airbus has an experimental project.
:07:33. > :07:36.They have not yet dared to cross the English Channel in this tiny plane,
:07:37. > :07:42.but that is a plan for someday soon, as Airbus engineers test ideas to
:07:43. > :07:48.eat out more air miles from no or very little airline fuel. There are
:07:49. > :07:52.a lot of electric buggies rolling around here, so it was only a matter
:07:53. > :07:56.of time before we got an all electric plane. This has two seats,
:07:57. > :08:05.it is powered by lithium iron factories, which are stored in the
:08:06. > :08:08.wings. They provide about 50 kilowatts between them. This can
:08:09. > :08:12.only run for about half an hour, but they are working on that. Cost of
:08:13. > :08:19.running it is minimal, which is why there are already applications for
:08:20. > :08:25.planes like this as pilot trainers. We had some very specific ideas on
:08:26. > :08:30.how to isolate every cell and make it very safe. The next generation of
:08:31. > :08:36.batteries has come through, and it will be a lot safer for the future.
:08:37. > :08:40.If we have a hybrid, the thermal engine will only be used to
:08:41. > :08:45.replenish batteries. All the proportion will always be electric.
:08:46. > :08:47.The ultimate goal for Airbus is to combine this with hybrid tech
:08:48. > :08:53.knowledge it and produce a regional jet that could maybe carry 90 people
:08:54. > :08:56.in the air for a couple of hours. The problem is, if we look at the
:08:57. > :09:01.modern airliner, even compared to five years ago, it uses are not more
:09:02. > :09:06.electricity, so maybe we have to wean ourselves off that power. We
:09:07. > :09:13.are seeing it as a technological platform to demonstrate electrical
:09:14. > :09:18.plane capabilities, and at the same time, with the Boeing 787, we are
:09:19. > :09:24.over consuming electricity, we couldn't manage the battery because
:09:25. > :09:27.when you look at the previous generation, the 787 is consuming
:09:28. > :09:35.three times more electricity than the previous generation. Industry
:09:36. > :09:40.leaders know they need to keep investing, and what they need now is
:09:41. > :09:46.better batteries. Let's have a look at the markets.
:09:47. > :09:54.The better than expected growth in China gave them a bit of a boost.
:09:55. > :09:57.They are fairly flat. These markets are also digesting what Janet Yellen
:09:58. > :10:05.had to say about foreign monetary policy. They could be going up if
:10:06. > :10:10.the jobs market in the US creep up faster than expected. You can see,
:10:11. > :10:11.this is the close in the US, and a stronger dollar. I will see you
:10:12. > :10:26.soon. The Department of Education says
:10:27. > :10:27.that 99% of schools are