:00:00. > :00:20.Could Brexit mean a new financial dawn for Paris?
:00:21. > :00:23.A top official there tells the BBC that big banks are already
:00:24. > :00:29.Plus - a big setback for Abenomics as Japan's growth figures
:00:30. > :00:50.Welcome. Also in the programme, it was another record close for Wall
:00:51. > :00:55.Street. What's going on? We will fill you in. Starting with Brexit
:00:56. > :00:56.and the growing concerns within written's financial industry about
:00:57. > :00:59.departure from the European Union. In Paris, a top official has told
:01:00. > :01:03.the BBC that major banks are in advanced stages of planning
:01:04. > :01:06.to shift some operations from London Financial firms contribute some
:01:07. > :01:10.12% of the UK economy. Currently they can operate
:01:11. > :01:12.across the EU from their bases in London, a right they may lose
:01:13. > :01:28.when Britain leaves the EU. In the city of London some of the
:01:29. > :01:32.world's financial giants are pondering how to react to an
:01:33. > :01:37.uncertain future. In Paris they are in full swing. I'm told
:01:38. > :01:41.international banks are being wooed with special deals on income tax,
:01:42. > :01:47.corporation tax, they've even been told contracts will be written in
:01:48. > :01:50.English. This man oversees the French markets. You've had lots of
:01:51. > :01:56.interest from international institutions. What state are you at
:01:57. > :02:01.with negotiations? In some cases I would say we are still at the level
:02:02. > :02:08.of enquiries, informal enquiries, by lawyers and so on. But in other
:02:09. > :02:15.cases, especially with large banks, it's a normal informal enquiry, but
:02:16. > :02:23.they are already undertaking due diligence and we have received a lot
:02:24. > :02:29.of commissions, that will be managed from our perspective, the
:02:30. > :02:33.relationship with French regulators. So we now know that companies have
:02:34. > :02:37.taken big steps towards moving. And if they do come to Paris they'll
:02:38. > :02:43.probably come here, one of 70 new office buildings being planned and
:02:44. > :02:49.where an influx from Britain is seen as key to attracting the rest of the
:02:50. > :02:54.world. We are also aiming world companies that are today established
:02:55. > :02:59.in London, are looking at establishing themselves somewhere in
:03:00. > :03:02.Europe, for instance we have a lot of contacts with Chinese companies
:03:03. > :03:06.while looking for a basis in Europe and two are very interested in
:03:07. > :03:12.France and Paris for many reasons and they are very interested in the
:03:13. > :03:14.Paris business district. Do you think these companies that would
:03:15. > :03:22.otherwise have come to London? Probably. In that sense it is now
:03:23. > :03:25.off the table? Yes. Based at the bankers, regulators and politicians
:03:26. > :03:31.across Europe, what's clear is that there isn't one city, not even
:03:32. > :03:36.Paris, that thinks it can take on everything that the city of the
:03:37. > :03:41.does. But there are lots, Luxembourg, Frankfurt, Dublin and
:03:42. > :03:45.the French capital that think they can take a big chunk of that
:03:46. > :03:51.business. And if you put all those chunks together, what you end up
:03:52. > :03:54.with is a very big problem for Northbridge and's biggest and most
:03:55. > :03:58.lucrative industries. -- for Britain's. Let's take a look at
:03:59. > :04:03.Japan. In the last few hours
:04:04. > :04:06.there's been some bad news Official figures were expected
:04:07. > :04:10.to confirm a big jump in economic Japan is the world's
:04:11. > :04:17.number three economy, but for more than two decades it
:04:18. > :04:19.has been stagnating, plagued by a spiral of deflation
:04:20. > :04:22.or falling consumer prices. So let's show you some
:04:23. > :04:24.of the details. In the three months
:04:25. > :04:27.to the end of September, Japan's economy grew
:04:28. > :04:29.by an annual rate of 1.3%. That's barely up on
:04:30. > :04:34.the previous quarter. Preliminary estimates looked
:04:35. > :04:38.to growth of some 2.2%. They were expected the 2.2%
:04:39. > :04:49.to be revised upwards, so it seems they
:04:50. > :04:51.were too optimistic. These figures were supposed
:04:52. > :04:53.to signal a pick-up for Japan. It has averaged growth of less
:04:54. > :04:57.than 1% for the past two decades. It has pumped billions
:04:58. > :05:00.of dollars into the economy in successive stimulus plans
:05:01. > :05:10.to try to change that trend. The latest was the announcement of a
:05:11. > :05:12.$260 billion stimulus plan, announced in September. It will kick
:05:13. > :05:14.in in the New Year. Japanese people have
:05:15. > :05:16.been reluctant to spend, but in recent months exports have
:05:17. > :05:19.been making a difference. Demand from the US has been picking
:05:20. > :05:23.up and the slowdown in China has The Japanese currency,
:05:24. > :05:26.the yen, has been weakening against the dollar,
:05:27. > :05:37.following the election This has helped exporters who were
:05:38. > :05:37.hit by a stronger yen earlier in the year.
:05:38. > :05:39.In fact, some say there could be a Trump dividend
:05:40. > :05:42.for Japan if he gets the US economy growing strongly.
:05:43. > :05:45.Although a poll this week shows many Japanese business leaders
:05:46. > :05:49.are worried about a rise in trade protectionism.
:05:50. > :06:01.Let's speak to Martin Schultz, joining us from Tokyo. Good to see
:06:02. > :06:09.you again. Why did the Japanese economy not perform as well as we
:06:10. > :06:16.hoped in the last quarter? Well, a lot is in the data. There was a huge
:06:17. > :06:19.revision of GDP Dato, which is crucial to an economy growing
:06:20. > :06:23.slowly, as minor changes might give a completely different outlook on
:06:24. > :06:30.the attitude on what's going on. -- data. Surprisingly we had
:06:31. > :06:33.surprisingly strong exports. But in the revised data experts are at the
:06:34. > :06:39.more normal level of 0.3% or something for the quarter and we had
:06:40. > :06:42.investment data which was much more negative than before. But not
:06:43. > :06:46.because companies are not putting money in, but because they were
:06:47. > :06:50.running down their infantry is, so they were brothers selling off what
:06:51. > :06:58.they had and not doing as much. -- inventories. What's the for Japan in
:06:59. > :07:03.the New Year? What can we expect? Well, actually the interesting thing
:07:04. > :07:08.is that the data for Japan is much better than they look like. The main
:07:09. > :07:12.reason is investment is increasing. Companies used the last quarter to
:07:13. > :07:18.sell off inventories, stuff they produced before. Now they are
:07:19. > :07:22.investing again and what a difference a quarter makes, because
:07:23. > :07:26.we had the elections in the US, we have with the victory of Mr Trump in
:07:27. > :07:32.the US a much stronger dollar, a much lower yen, which makes it much
:07:33. > :07:36.easier to export in particular to the US and the rest of Asia. That
:07:37. > :07:41.helps in terms of the outlook for what Japan is doing because interest
:07:42. > :07:44.rates are going up in the US and globally, but not so in Japan, so
:07:45. > :07:48.the outlook for business and investment is much better now than
:07:49. > :07:53.looking forward to next year. In terms of stimulus, it was announced
:07:54. > :07:57.this year it would take effect in the New Year. How much of an impact
:07:58. > :08:03.would that have? So far the impact of government investment was
:08:04. > :08:07.limited. Now we are seeing a bigger package and overall we are seeing a
:08:08. > :08:12.reshuffle that we feel around the world. It is a shift from monetary
:08:13. > :08:16.policy, which has been much less effective than people were thinking
:08:17. > :08:19.before. It is more fiscal stimulus, getting the economy going not just
:08:20. > :08:25.from the private side, it is pretty much stable, but also with the
:08:26. > :08:29.weaker yen, with more exports, more investment into the market in the US
:08:30. > :08:37.and government demand for healthcare, education and also a
:08:38. > :08:43.level that hopefully will benefit everyone. Thank you. In other
:08:44. > :08:47.stories, the financial markets are keeping a close eye on the European
:08:48. > :08:52.Central Bank. It is holding its policy meeting later. Mario Draghi
:08:53. > :08:59.is expected to prolong his stimulus programme. They are trying to push
:09:00. > :09:03.down borrowing costs for governments and firms and inject cash into the
:09:04. > :09:06.system. The scheme is currently due to end in March, but there are
:09:07. > :09:11.worries around the election of Donald Trump and instability in
:09:12. > :09:21.Italy, so they may announced an extension. The Kremlin has announced
:09:22. > :09:25.the purchase of a 19.5% stake in Russia's largest oil company. The
:09:26. > :09:38.surprise move sees Glencore cut off $11.3 billion. BP already owns
:09:39. > :09:42.90.75%. Some state assets will be sold to help boost the budget amid a
:09:43. > :09:48.two-year recession caused by the drop in global oil prices. And
:09:49. > :09:52.Western sanctions. So, up, up and away for markets around the world.
:09:53. > :09:58.It would seem there is no stopping them at the moment. Japan is up over
:09:59. > :10:01.1%, Hong Kong not far behind. A fairly weak yen, although it has
:10:02. > :10:05.strengthened the little in the last 24 hours. In the US the Dow Jones is
:10:06. > :10:10.breaking records every day at the moment. Everybody looking ahead to
:10:11. > :10:12.what Mario Draghi will announce midday in Europe, that will be key
:10:13. > :10:29.for markets today. See you soon. Sally will be back as we look at the
:10:30. > :10:31.international