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Now it's time for World Business Report.
Growth figures from the world's second biggest economy
We take a look at what goes into the making of the world's most
popular television series, Game of Thrones.
In a minute we'll also find out why Lloyd's of London believes a massive
cyber attack could cost the global economy more than some
But we begin with China's economy, which has grown more than expected
in the second quarter of this year - by 6.9%.
It matters because the country, regarded as the world's factory,
As you can see here it's a far cry from how things used to be -
this shows how for much of the last 25 years China has been
One of the big worries is this number.
258% is the size of China's debts compared to it's economy.
That means it owes more than two and a half time everything it makes
Much of the debt is linked to the red hot property market
which the government is trying to cool.
The cost of new housing in major cities rose 10.4% in May.
The government also looks likes it succeeding with another problem.
This year Chinese firms have spent $75.2bn on foreign merger
and acquisitions which is down almost half on the same time
Financial regulation has become a top priority
And over the weekend he's been at a meeting of regulators
in Beijing where he called for the country's central bank
to take a bigger role in managing financial risks.
With me is Linda Yueh, Professor of Economics
6.9%, how reliable is this a figure? Many will say it is never that
reliable. In a sense, we probably expect a slowdown in the second half
of the year so it will probably come in closer to target and the reason
is that China has been meeting their growth target by stimulating the
economy which is added to the debt. Expectation is that China should
slow its economy somewhat but the more reliable figures are factory
output and retail sales and both came in stronger than. Factory
output a key indicator grew by 7.6% in June. Retail sale, another key
indicator especially in terms of Chinese consumption which is more
sustainable, grew by 11% so those figures suggest the Chinese economy,
on the real economy side, are actually resilient and somewhat
readjusting more to domestic demand than export. It is this a just and
of the economy which is that target, really. Still an awful lot of
reforms to be an act did. -- enact did. Other concerns that too much
work still needs to be done? It beat market expectations but the concern
is how much of that is still being fuelled by the government stimulus
especially around credit. That is probably why markets would like to
see a greater slowdown than last year. 6.7% last year and the
expectation is that China should slow its economy down because most
people would rather see a more sustainable slower growth rate for
China, already a middle income country, then mimicking the past 25
years. As it becomes middle income it needs to adjust to a slower pace
of growth and to accept it. Then I think some of the reforms become
more palatable, including the financial, which is one of the main
reasons why it loan growth is such a problem because it is not properly
allocated by the market interest rates. Markets would like to see
that and slower growth rather than something that could ultimately end
rather badly. Thank you very much for talking to us.
The second round of Brexit negotiations will begin in Brussels
Ahead of the meetings between UK and EU officials,
the UK's finance minister has warned that businesses are delaying
investing in the UK because of the uncertainty surrounding Brexit.
Speaking to the BBC, Philip Hammond explained the need
for clarity, and a smooth transition process.
It is absolutely clear that businesses, where they have
discretion over investments and can hold off, are doing so and you can
understand why - they are waiting for more clarity about what the
future relationship with Europe will look like and the way to get the
economy moving and restore business confidence and then consumer
confidence is to give as much clarity as possible as early as
possible which is why I have been talking a busy all or five weeks of
the importance of a transitional arrangement.
In other news About 4 out of 10 British firms say Brexit has
In a report on cyber crime, Lloyds estimated that in the most
likely scenario, a malicious hack would take down a cloud service
provider, with estimated losses of $53 billion dollars.
That's roughly the same cost as Superstorm Sandy,
the hurricane that hit the east cost of the United States in 2012.
But that's just the average estimate.
Lloyd's believes that because of the uncertainty around
calculating cyber losses, the damage could be as high
as $121 billion, or as low as just $15 billion.
China's President Xi Jinping has called on the country's Central Bank
It's the most popular TV show of all time,
the most downloaded show of all time and is shown in 170 countries.
And last night, fans were rewarded after more than a year of waiting,
with the premiere of the show's penultimate season.
Over six seasons, TV fantasy Game of Thrones has captured the imagination
of millions of people. But far from the seven kingdoms, the costumes,
ran the sets and authentic armoury that feature in the show is serious
business for a few firms in India. Send them at least two options. It
is not just Game of Thrones. This business supplies props to many
films. We still have the art of hand embroidery alive. They cannot get it
in the West so whatever we do, it is a very handmade, it is very period
looking. I am in geek heaven. I do not know where to begin. I spotted
the sword from the Game of Thrones but nothing can beat John Snow and
here is my chance to try my hand at his cloak which is fairly heavy and
to top it all, I have his sword as well. What is John Snow without his
trusted weapon? This is where the swords are made. The largest
factories of its kind. They make every type of sword from heavy steel
to light titanium. It supplies two armies around the world but it's
swords are not sold commercially in India. Domestic business is only 10-
15%. Sometimes it can stretch in the 30%. But it is mostly seasonal. But
these are the details that make the story come alive on the big screen
and, as long as the battles go on, it means more business on the
workflow here. Lets check in with the financial
markets: The Nikkei is closed for a public holiday today -
will be interesting to see how investors will react to the news
that Sony is in the final stages of talks to acquire French music
distribution and label services Other indices have
mainly risen in Asia following another record
close on Wall Street, however Shanghai stocks fell
after that data came through showing China's economy grew more
than expected in the second quarter.