:00:00. > :00:16.Now it's time for World Business Report.
:00:17. > :00:20.Growth figures from the world's second biggest economy
:00:21. > :00:28.We take a look at what goes into the making of the world's most
:00:29. > :00:36.popular television series, Game of Thrones.
:00:37. > :00:45.In a minute we'll also find out why Lloyd's of London believes a massive
:00:46. > :00:47.cyber attack could cost the global economy more than some
:00:48. > :00:53.But we begin with China's economy, which has grown more than expected
:00:54. > :01:00.in the second quarter of this year - by 6.9%.
:01:01. > :01:03.It matters because the country, regarded as the world's factory,
:01:04. > :01:09.As you can see here it's a far cry from how things used to be -
:01:10. > :01:12.this shows how for much of the last 25 years China has been
:01:13. > :01:15.One of the big worries is this number.
:01:16. > :01:18.258% is the size of China's debts compared to it's economy.
:01:19. > :01:22.That means it owes more than two and a half time everything it makes
:01:23. > :01:26.Much of the debt is linked to the red hot property market
:01:27. > :01:28.which the government is trying to cool.
:01:29. > :01:31.The cost of new housing in major cities rose 10.4% in May.
:01:32. > :01:34.The government also looks likes it succeeding with another problem.
:01:35. > :01:37.This year Chinese firms have spent $75.2bn on foreign merger
:01:38. > :01:40.and acquisitions which is down almost half on the same time
:01:41. > :01:44.Financial regulation has become a top priority
:01:45. > :01:51.And over the weekend he's been at a meeting of regulators
:01:52. > :01:54.in Beijing where he called for the country's central bank
:01:55. > :01:58.to take a bigger role in managing financial risks.
:01:59. > :02:00.With me is Linda Yueh, Professor of Economics
:02:01. > :02:19.6.9%, how reliable is this a figure? Many will say it is never that
:02:20. > :02:23.reliable. In a sense, we probably expect a slowdown in the second half
:02:24. > :02:28.of the year so it will probably come in closer to target and the reason
:02:29. > :02:34.is that China has been meeting their growth target by stimulating the
:02:35. > :02:40.economy which is added to the debt. Expectation is that China should
:02:41. > :02:46.slow its economy somewhat but the more reliable figures are factory
:02:47. > :02:54.output and retail sales and both came in stronger than. Factory
:02:55. > :03:01.output a key indicator grew by 7.6% in June. Retail sale, another key
:03:02. > :03:08.indicator especially in terms of Chinese consumption which is more
:03:09. > :03:15.sustainable, grew by 11% so those figures suggest the Chinese economy,
:03:16. > :03:18.on the real economy side, are actually resilient and somewhat
:03:19. > :03:26.readjusting more to domestic demand than export. It is this a just and
:03:27. > :03:32.of the economy which is that target, really. Still an awful lot of
:03:33. > :03:45.reforms to be an act did. -- enact did. Other concerns that too much
:03:46. > :03:49.work still needs to be done? It beat market expectations but the concern
:03:50. > :03:54.is how much of that is still being fuelled by the government stimulus
:03:55. > :03:59.especially around credit. That is probably why markets would like to
:04:00. > :04:06.see a greater slowdown than last year. 6.7% last year and the
:04:07. > :04:10.expectation is that China should slow its economy down because most
:04:11. > :04:17.people would rather see a more sustainable slower growth rate for
:04:18. > :04:24.China, already a middle income country, then mimicking the past 25
:04:25. > :04:32.years. As it becomes middle income it needs to adjust to a slower pace
:04:33. > :04:38.of growth and to accept it. Then I think some of the reforms become
:04:39. > :04:43.more palatable, including the financial, which is one of the main
:04:44. > :04:46.reasons why it loan growth is such a problem because it is not properly
:04:47. > :04:51.allocated by the market interest rates. Markets would like to see
:04:52. > :04:59.that and slower growth rather than something that could ultimately end
:05:00. > :05:00.rather badly. Thank you very much for talking to us.
:05:01. > :05:03.The second round of Brexit negotiations will begin in Brussels
:05:04. > :05:07.Ahead of the meetings between UK and EU officials,
:05:08. > :05:09.the UK's finance minister has warned that businesses are delaying
:05:10. > :05:13.investing in the UK because of the uncertainty surrounding Brexit.
:05:14. > :05:16.Speaking to the BBC, Philip Hammond explained the need
:05:17. > :05:23.for clarity, and a smooth transition process.
:05:24. > :05:29.It is absolutely clear that businesses, where they have
:05:30. > :05:35.discretion over investments and can hold off, are doing so and you can
:05:36. > :05:39.understand why - they are waiting for more clarity about what the
:05:40. > :05:44.future relationship with Europe will look like and the way to get the
:05:45. > :05:47.economy moving and restore business confidence and then consumer
:05:48. > :05:52.confidence is to give as much clarity as possible as early as
:05:53. > :05:56.possible which is why I have been talking a busy all or five weeks of
:05:57. > :05:58.the importance of a transitional arrangement.
:05:59. > :06:14.In other news About 4 out of 10 British firms say Brexit has
:06:15. > :06:17.In a report on cyber crime, Lloyds estimated that in the most
:06:18. > :06:20.likely scenario, a malicious hack would take down a cloud service
:06:21. > :06:23.provider, with estimated losses of $53 billion dollars.
:06:24. > :06:25.That's roughly the same cost as Superstorm Sandy,
:06:26. > :06:28.the hurricane that hit the east cost of the United States in 2012.
:06:29. > :06:30.But that's just the average estimate.
:06:31. > :06:32.Lloyd's believes that because of the uncertainty around
:06:33. > :06:35.calculating cyber losses, the damage could be as high
:06:36. > :06:40.as $121 billion, or as low as just $15 billion.
:06:41. > :06:43.China's President Xi Jinping has called on the country's Central Bank
:06:44. > :06:46.It's the most popular TV show of all time,
:06:47. > :06:49.the most downloaded show of all time and is shown in 170 countries.
:06:50. > :06:54.And last night, fans were rewarded after more than a year of waiting,
:06:55. > :07:16.with the premiere of the show's penultimate season.
:07:17. > :07:29.Over six seasons, TV fantasy Game of Thrones has captured the imagination
:07:30. > :07:32.of millions of people. But far from the seven kingdoms, the costumes,
:07:33. > :07:39.ran the sets and authentic armoury that feature in the show is serious
:07:40. > :07:45.business for a few firms in India. Send them at least two options. It
:07:46. > :07:55.is not just Game of Thrones. This business supplies props to many
:07:56. > :08:03.films. We still have the art of hand embroidery alive. They cannot get it
:08:04. > :08:12.in the West so whatever we do, it is a very handmade, it is very period
:08:13. > :08:18.looking. I am in geek heaven. I do not know where to begin. I spotted
:08:19. > :08:24.the sword from the Game of Thrones but nothing can beat John Snow and
:08:25. > :08:30.here is my chance to try my hand at his cloak which is fairly heavy and
:08:31. > :08:39.to top it all, I have his sword as well. What is John Snow without his
:08:40. > :08:45.trusted weapon? This is where the swords are made. The largest
:08:46. > :08:52.factories of its kind. They make every type of sword from heavy steel
:08:53. > :08:56.to light titanium. It supplies two armies around the world but it's
:08:57. > :09:05.swords are not sold commercially in India. Domestic business is only 10-
:09:06. > :09:17.15%. Sometimes it can stretch in the 30%. But it is mostly seasonal. But
:09:18. > :09:23.these are the details that make the story come alive on the big screen
:09:24. > :09:25.and, as long as the battles go on, it means more business on the
:09:26. > :09:37.workflow here. Lets check in with the financial
:09:38. > :09:40.markets: The Nikkei is closed for a public holiday today -
:09:41. > :09:44.will be interesting to see how investors will react to the news
:09:45. > :09:47.that Sony is in the final stages of talks to acquire French music
:09:48. > :09:50.distribution and label services Other indices have
:09:51. > :09:53.mainly risen in Asia following another record
:09:54. > :09:54.close on Wall Street, however Shanghai stocks fell
:09:55. > :09:57.after that data came through showing China's economy grew more
:09:58. > :09:59.than expected in the second quarter.