:00:00. > :00:18.Is China's dragon economy still firing on all cylinders?
:00:19. > :00:21.The country is growing at 6.7%, but analysts warn it could be
:00:22. > :00:32.Box office superstar Leonardo DiCaprio says
:00:33. > :00:34.he is cooperating with an investigation into Malaysian
:00:35. > :00:38.state fund 1MDB, which may have helped to fund The Wolf
:00:39. > :00:57.I'm Sally Bundock, here with your daily business snapshot.
:00:58. > :01:03.We will have the details on Yahoo! 'S latest results in a moment.
:01:04. > :01:06.New growth figures from China has added to a raft of indicators
:01:07. > :01:08.suggesting the Asian powerhouse is becoming addicted
:01:09. > :01:19.The world's second-largest economy grew at an annualised rate of 6.7%
:01:20. > :01:22.That is slightly below last year's growth rate,
:01:23. > :01:25.but still within the government's target range of 6.5%-7%.
:01:26. > :01:28.As we have been reporting, the country's growth rate has slowed
:01:29. > :01:30.significantly since hitting double digits five years ago,
:01:31. > :01:33.and is now at its slowest rate in more than 25 years.
:01:34. > :01:35.The figures underline China's difficulty of transforming
:01:36. > :01:38.the economy away from factories and exports, towards consumption,
:01:39. > :01:51.to help drive up wages and living standards.
:01:52. > :01:53.And that is a transition that takes time.
:01:54. > :01:56.To keep the economy on track in the intervening period,
:01:57. > :01:58.the government has been stimulating growth through cheap credit.
:01:59. > :02:02.Now, while government debt in China may appear to be relatively low,
:02:03. > :02:04.corporate debt stands at a worrying 145% of GDP.
:02:05. > :02:09.State-owned businesses actually account for more than half of that
:02:10. > :02:12.debt pile, and Chinese banks are now holding more and more loans
:02:13. > :02:15.from those companies that are either in default or close
:02:16. > :02:29.We can cross live now to Beijing, and speak to Jeremy Stevens,
:02:30. > :02:40.Good morning. Give us your reaction to today's numbers, in the middle of
:02:41. > :02:46.the government target, with the service industry pacing the growth.
:02:47. > :02:51.Good morning. As far as I can tell this is a continuation of relatively
:02:52. > :02:54.stable data out of the Chinese economy, underpinned by state led
:02:55. > :02:59.infrastructure spending, and we are telling our client is predominantly
:03:00. > :03:05.that but we anticipate that the next six months will probably see some
:03:06. > :03:09.weakening in the macroeconomic data, as they shift to supply-side reform,
:03:10. > :03:13.getting a little bit more serious on debt, and pushing against the
:03:14. > :03:19.housing price gains. What about the issue we have raised about credit,
:03:20. > :03:22.about toxic debt? It is a problem, a huge problem, and something that we
:03:23. > :03:26.have been watching very carefully. China is basically, there are
:03:27. > :03:32.economy has become more reliant on credit and it is a very policy
:03:33. > :03:38.oriented economy, and this year has really all been about fixed
:03:39. > :03:42.investments underpinned by debt and we are seeing the average continue
:03:43. > :03:46.to rise but one of the things we are seeing on the ground here in China
:03:47. > :03:49.is that a lot of the policy documents which have been released
:03:50. > :03:53.in the last two months have started to push ordered against this rising
:03:54. > :03:56.debt and finding ways to address, and we are seeing debt commissions
:03:57. > :04:00.where companies are sitting with creditors and local government
:04:01. > :04:03.authorities to try and negotiate the terms of the debt and try and get
:04:04. > :04:07.serious on repaying the debt. It suggests to us that the credit cycle
:04:08. > :04:11.has probably peaked in the Chinese economy for the time being, and they
:04:12. > :04:17.are going to push forward on constraining the credit so that they
:04:18. > :04:21.can create a better environment for the private sector next year. So as
:04:22. > :04:24.you say that has been a policy towards reining in financial risk.
:04:25. > :04:30.They have also tried to prevent a real estate bubble from bursting,
:04:31. > :04:35.and figures 'Today' show that investment was up by nearly 6%
:04:36. > :04:42.between January and September, so it would seem that the real estate
:04:43. > :04:47.market is also spiking as well. Correct. So this year we have seen
:04:48. > :04:52.life in the real estate market, it has predominantly been in prices and
:04:53. > :04:56.sales. Construction, and as you mentioned 6% growth is not crazy in
:04:57. > :05:02.the context of China. We anticipate that inventory levels in one or two
:05:03. > :05:06.cities will be back to 2011 levels by the end of the year and so one of
:05:07. > :05:09.outside calls for the end of next year is that when the government
:05:10. > :05:12.does want to support growth next year after the second, third and
:05:13. > :05:16.fourth quarters, they may allow development in real estate in one or
:05:17. > :05:21.two cities but the inventory levels are way too high in third and fourth
:05:22. > :05:27.years cities, and we see them as deadweight on the economy, and have
:05:28. > :05:31.for some time. Are you concerned about the outlook for China? If you
:05:32. > :05:36.say what is happening over China for the next five years, absolutely.
:05:37. > :05:39.What I am trying to fight against is the complacency around the data we
:05:40. > :05:42.have seen for the first three quarters. We do anticipate witness
:05:43. > :05:49.in the economy over the next six months. Then we think as China leads
:05:50. > :05:54.into the 19th party congress, we see life in the second, third and fourth
:05:55. > :05:58.quarter. Then we see the downgrading and continuing weakening in economic
:05:59. > :06:03.momentum in China to continue for some time. That is typical in an
:06:04. > :06:06.economy which has seen an explosion of credit as we have in China, for
:06:07. > :06:08.some time. In other news: Yahoo's profits more
:06:09. > :06:10.than doubled to $163 million in the third quarter,
:06:11. > :06:13.beating Wall Street estimates. The numbers provides some
:06:14. > :06:15.reassurance to investors, after it was revealed that
:06:16. > :06:17.500 million customers These are the first financial
:06:18. > :06:20.results since Verizon announced its plan to buy the tech
:06:21. > :06:23.company for $4.8 billion, a figure that could now be
:06:24. > :06:26.renegotiated in light Two of Australia's biggest gambling
:06:27. > :06:32.firms have announced a plan to merge, as they try to compete
:06:33. > :06:35.against the rise of online betting. Tabcorp and Tatts Group,
:06:36. > :06:38.the country's two largest non-casino gambling firms, hope to form
:06:39. > :06:41.a business worth $US8.7 billion, if they can get regulatory
:06:42. > :06:43.and shareholder approval. Australia is the world's most
:06:44. > :06:45.lucrative gambling market per head, with an average loss every year
:06:46. > :06:53.of $US1,130 per person. Shares in Sharp have
:06:54. > :06:56.risen by more than 10%, after the loss-making Japanese
:06:57. > :06:58.company announced it expects this full year profits to improve
:06:59. > :07:01.significantly compared to last year. The electronics firm was snapped up
:07:02. > :07:04.by Taiwanese manufacturer Foxconn for $3.5 billion in July,
:07:05. > :07:06.after going through two major South Korean prosecutors
:07:07. > :07:19.are reportedly poised to file corruption charges against
:07:20. > :07:22.the chairman of one of the country's most influential conglomerates,
:07:23. > :07:24.the Lotte Group. It is alleged Shin Dong-bin,
:07:25. > :07:26.together with his father and brother, committed
:07:27. > :07:28.offences worth hundreds Oscar-winning star Leonardo DiCaprio
:07:29. > :07:40.says he is aiding authorities with the ongoing investigation
:07:41. > :07:42.into Malaysian state In July, the US department
:07:43. > :07:45.of justice moved to seize more than $1 billion from the fund,
:07:46. > :07:49.which it said had been misappropriated to fund the lavish
:07:50. > :07:51.lifestyles of some public officials. The Hollywood star is tied
:07:52. > :07:55.to the case because money from 1MDB was allegedly used to fund
:07:56. > :07:58.the production of the movie The Wolf of Wall Street, and might even have
:07:59. > :08:01.gone to Mr DiCaprio's charity Mariko Oi joins us
:08:02. > :08:24.now from Singapore. Good to see you. So the plot
:08:25. > :08:29.thickens. Tell us the latest. Indeed, it is a bit ironic, isn't
:08:30. > :08:32.it, his film about Wall Street corruption and greed was actually
:08:33. > :08:39.financed by a production company which was co-founded by the stepson
:08:40. > :08:47.of the Malaysian Prime Minister, who of course created the 1MDB fund back
:08:48. > :08:50.in 2009. The aim was to invest in the country's development, but of
:08:51. > :08:55.course as we have been reporting over the last year or so, it has
:08:56. > :08:58.been accused of corruption and has now been investigated, not just in
:08:59. > :09:07.the US but in several countries including here in Singapore. Both he
:09:08. > :09:11.and 1MDB deny the investigation but when the actor found out, he had his
:09:12. > :09:17.representative contact them to see whether he or his charity received
:09:18. > :09:21.any gifts or donations, and if so to return them as soon as possible. US
:09:22. > :09:27.authorities are, as you mentioned, trying to seize more than $1 billion
:09:28. > :09:30.from 1MDB, so the plot thickens, as you mentioned. This is probably the
:09:31. > :09:42.twist that we were not really expecting. Let's show you financial
:09:43. > :09:45.markets. The news about the Chinese markets being stable has led the
:09:46. > :09:49.market is treading water at the moment. The price of oil heading up
:09:50. > :09:57.by 1% and you can see the pound tinkering around $1, just over 22
:09:58. > :09:59.cents at the moment. I will see you very soon as we review the other
:10:00. > :10:06.stories in the media. Stay with us. A senior member of the European
:10:07. > :10:09.Parliament has accused