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tv   First Up With Angie Lau  Bloomberg  October 18, 2015 7:00pm-9:01pm EDT

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latest gdp data are expected to undermine the continuing slowdown. korea'sherapy is version of black friday see sales jumped 21%. treatment. carpet i am angie lau coming to you live from bloomberg vision headquarters right here in hong
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kong and streaming on area let's check in on markets. where the x 200 just started the session. waiting for all of those companies in alphabetical order. we will check in a little later in the morning. it has been weaker these past couple of days ahead of chinese ada coming out today. we arezealand, where also seeing a drop in the new zealand dollar. the kiwi weakening ahead of third-quarter gdp. also counting down to the open in japan and korea. nikkei to 25 close less than 1% higher. futures in chicago pointing to a higher open. about 110 points higher. the dollar yen slightly strengthening.
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morning, the this challenges facing china ahead of today's third-quarter gdp numbers, expected to confirm the slowdown with premier league is saying it is not going to be easy heading that 7% target. david is here to run through what we are all expecting. >> premier league, there is a statement on the consul website. 7%, it can be 7%. it should be fine. 7%, hitting that would not be easy. , which comes out three hours from now, it is third-quarter gdp data. you have estimates of 6.8%. is 6.9.estimate the lowest end is six .4%.
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not a single economists surveyed. -- surveyed thinks we are going to hit 7%. of it will take year to date growth till the low 7%. we also have another graphic which flux growth over the last 25 years. a bit of a slowdown and came to about 7%. the pickup we saw into the global financial crisis. that is when they spend their way out of the crisis. this is the current slowdown we are talking about. a bigger economy now. growthth or even higher will be mathematically harder because it is such a bigger economy. had been forecast and warned in policymakers. it is not only gdp we are
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watching, what else is on track today? >> september data. you have retail sales and fixed asset investment. here is our estimates, 10.8% fixed asset investment. you have factory output. this used to be at 12% or 13%. actually plotting this for you. you don't really get an indication of retail sales. ppi.ave retail sales, that is the story over the past eight years. that is the annual growth. the last comes out in three hours. angie: thank you for that. over to south korea. like many other south korea has been buffeted by the global slowdown with experts following
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this year. things could finally be looking up. retail sales jumped after korea took inspiration from the u.s.. it is all about the shopping. >> yes it is. it is all about going out and shopping and spending money. it is being called korea's last friday -- korea's black friday. now this government-backed initiative has business is spurring sales. a total of 92 companies participated, including online malls and 200 traditional markets. we saw sales at department stores surged 24%. -- online malls increased 29 percent. and sales jumping 36% during that period. the government currently is
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planning ahead, planning what to do next year in 2016. they are including thoughts on timing and duration. that will be announced by the end of 2015. angie: what are some of the challenges facing a south korean economy there? isit is no secret that korea very export dependent. half of its gdp accounts for exports. we are seeing gdp growth for the third that for the fourth quarter expected to slow. we are expected to come in at 2% year on year. that will be down 2.2% expansion. on ah numbers have been downward trend as of the beginning of this year. slashed itskorea growth forecast for this year down to 2.7% from 2.8% growth,
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which was already the slowest in three years. performance to poor in the second quarter and the uncertainty for the south korean economy mainly coming from overseas. not to mention the possibility of a fed rake -- fed rate hike. we have more positive retail numbers out of south korea recently and we are starting to see some pickup in consumer confidence as well as business sentiment. back to you. angie: thank you for that. checking other headlines for you. facing calls to bring back weapons of bad loans that had previously been considered too risky. bad debt securitization would help lenders package should it investors.sold to
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in china's big foreign lenders withxploring this option sliding corporate profits placing the system under strength. the malaysian prime minister's facing new pressure to resign over a funding scandal. upon his are calling for a no-confidence vote. under fire under claims that hundreds of millions of dollars linked to the state investment firm ended up in his personal account. any wrongdoing, sane the funds were political donations from the middle east. and the quality of air in singapore has worsened today with more hotspots detected on sunday. reaching 119 this morning. end of ther unhealthy range. it hit 183 earlier. the national environmental agency says the hazy conditions are expected to persist through monday. in vivo has replaced pepsi co. as the sponsor of india's
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cricket lead -- cricket league. there are no details about how much is involved. from 2013 22017. there is news today. a shakeup at deutsche bank the cut costs and boost earnings. -- prettyingular senior finger -- pretty senior figures here. have -- we have the ceo trying to cut costs and boost revenues. the investment bank is going to be split into two. that sees the departure of: fan -- of colin fan. they are doing a number of things to really shakeup senior management.
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the executive committee is going to be abolished. that 19 member group will be abolished. 10 of the 16 management board committee. the other board will be expanded from eight members to 10 members. the investment bank will be split into two. he is really trying to put a stamp on things that deutsche bank and many analysts say that he's getting ready -- getting rid of the people hand-picked by his predecessor. a handful of those positions will be shaken up. angie: choosing his own lieutenants. >> there are reports that 8000 jobs across germany's largest bank will go. deutsche bank has announced it will book a 5.8 billion euro write-down for the year. knew those were going.
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there are reports of another 8000 jobs. year to date they are still looking ok. the company has to turn the fortune. angie: is this restructuring template going to be adopted by other possibilities? there are reports that it is going to sail back in asia. lower than what you see in your. a lot of banks are struggling to adapt to requirements. manages $40who billion, saying to optimistic on revenues. it may also go down the same route as deutsche bank and announce big changes to management and job cuts at lower levels. angie: the tip of the iceberg.
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thank you so much for that. you can get more on today's top stories at our digital destination. bloomberg business bringing together the best of bloomberg news. business week bloomberg television and new digital content in all one address. also u.k. and china set for a deal on the world's costliest nuclear plan, plus why aluminum missed out on the metals rally. a children's horror movie has topped north america's weakened box office two weeks before halloween. -- beatingtook him steven spielberg's first film in 20 years. -- first film in years. it is based on a series of the same name. star wars fans, prepare for the
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next chance to visit a galaxy far far away. disney has confirmed tickets for the seventh movie in the franchise will go on sale on tuesday. sales go out after the studios releases of best release of a new trailer. disney has released the official poster of the film, which opens in december. just ahead, further signs of a slowdown. economists suspect disappointing data later today. we are going to be asking our next guest for his take.
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first time that treasury wine is treating -- is trading. to seven dollars 40 -- 43australian dollars australian dollars. up 15%, no doubt among the
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board. at least three people were killed and thousands more 18-hit the philippines. a 14-year-old boy died when his home collapsed wall to people drowned figure them the storm weakened as it made landfall. winds blew down to 85 kilometers per hour printer thousands of airline passengers worst round -- were stranded and clue -- were stranded and schools have been closed. his decision to rewrite the constitution and allow japanese forces to serve abroad is prompting criticism from china, korea, and others. it also led to popular protests at home. says it willbe
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help their forces were closely with u.s. and other allies have warned the west to keep its nose out of regional affairs. a three-day security doormat -- security forum in beijing says western interference in the south china sea would be the worst possible scenario. the pentagon said it may send warships into the area. china's increasing control of disputed islands -- we have a busy week. of economic data out of china today. for more on what is coming up this week and how markets are going to react, we are joined by jay bryson. he is a global economist at wells fargo security. right here in our studio today in hong kong. welcome to asia and our studio. does it reinforce your sentiment about the slowdown and what it
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means for the global economy? the datal see what brings us. people are looking for the consensus forecast and gdp number. the real question is how soft is this going to be. if it comes in below expectations i would people are going to get really nervous. then you get the retail sales number and industrial production. it gives us a sense on what areas of the comment doing well and what areas are not doing so well. angie: specifically factors in that china slowdown. world'sit was the seventh largest economy, now it is the world's second-largest. j: i would say that in the analysis we have done, some of the china affect may be somewhat exaggerated. take an example of a chipmaker in singapore.
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and it goes tops china, but is it actually stay in china? put in iphones and exported out to western europe and places like that. if you look at export numbers and things like that, china is as important as those export numbers would lead you to believe. the effect may be overstated. if the u.s. economy continues to do well and europe continues to pick up, then things in the global economy probably aren't quite as bad as people have made out here. angie: some people say maybe they are better in china than all of the sentiment that exists right now. are you one of those people? j: i don't think things are necessarily better. houseou are seeing his prices are starting to stabilize, not only in the big cities but some of the smaller ones as well, starting to get some stability. keep in mind the service sector
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in china, which is difficult to measure, that has become bigger over the years. as is more of a slowdown of construction and industry. the service sector appears to be holding up ok. at she: we looked electricity use. what do you look at? j: certainly those things. those things do overstate the importance. you will have to look at loan growth in their, retail sales are important to look at. look at a broad range of different indicators. angie: who is going to grow the fastest? and how is that going to impact any decision we are going to see? j: i'll take was going to grow the fastest -- i will tell you
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who is going to grow the fastest, probably india. out of that affect the global economy? doesn't it have a big impact? india doesn't have the same weight as china does. how does this affect the fed's decision? the rest of the world has relatively small weight in terms of the u.s.. it is a downside risk for the fed. if we are in an environment where they are and should -- where they are undershooting their target, maybe they want to stable and hold. the direct effects on what is happening in this region are actually pretty small. if you go back to the asian financial crisis 15 years ago, understand things have changed. there were some economies that were in deep recession, not depression at the time. if you look at gdp growth in that state it didn't budge. angie: thank you so much for joining us today. a global economist for wells fargo securities. coming up next china's president will be given the red carpet
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treatment when he arrives the u.k. later. ♪
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angie: written prepares to roll out the red carpet for president g zhang ping -- for president xi jinping. will give china's stake in the world's most
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expensive -- most extensive energy plan. we take a look at the grand welcome being prepared and what britain is hoping for while he is there. --president gigi ping president xi jinping hospers dine -- the president will with the queen of buckingham palace and take a ride in a royal carriage and the five-star treatment is aimed at making written china's leading trade partner in europe. china currently invest 25 billion pounds in the u.k.. britain wants that to hit 100 billion by 2025. is a 2top of their list billion pound investment. offering of 12 billion pounds of contracts for the high-speed rail scheme and a 1.2 billion pound investment in 10,000 new homes in the north of the country. china is also said to be eyeing
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further investments and london could be the first overseas financial center to open a market for chinese sovereign debt. little wonder if both sides are hailing this as a golden era. angie: another nailbiting weekend with the rugby cup. south africa proved too strong for whales while new zealand thumped france. scotland played better for years but lost by a single point to australia. and scots were leading by two points in the dying moments when the referee called a deliberate offside. replay seems to show the ball had touched a player. in the last four.
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it has been ireland three times scotland'sd cup area last-minute defeat means there will be no northern hemisphere team in the semi finals for the first time ever. weekend.ches our next well coming up next, indian bill in their -- indian billionaire pushing ahead of for a planned $5 billion coal mine in australia. we will be live in sydney for all the details.
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angie: a live look at singapore. that air has worsened with more hotspots detected. live pictures from the city where the pollutant engage reached 119 having topped 183 earlier. on your tv and mobile, you are watching "first up." angie: at the top stories. we are waiting third-quarter gdp from china and further signs of
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weakness are anticipated. analysts surveyed to save economy grew at 6.8% the last 2009.r, the slowest since industrial output and retail sales figures expected to remain weak. will's first black friday be a repeat next year. a large of that's a string a large retailers. department store jumped 24% while online sales increased 30%. however, the biggest result was 36% jump of sales. deutsche bank is clearing the decks under the new ceo john cryan. senior managers who helped a big desk built -- built will be moved to other divisions. as part of a plan to cut costs, it will abolish the executive committee as well as 10 of 16
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management board committees. check in of markets in asia and trading today of the new week. new zealand where we are seeing fractional gains and the kiwi weaken ahead of all of that chinese data included third-quarter gdp where it is expected to be at the slowest pace since 2009. to australia we go, resumed trading and up 15%, leading the leaderboard on the asx 200 right now after buying a wine asset. australian dollar like of the kiwi, weakening ahead of chinese data. also counting down to the open in japan and korea. closed and green, when percent higher. chicago futures pointing to a higher open. -- closed in green, 1% higher.
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the australian government expects a controversial coal mine to -- receive environmental approval. the $5 billion project is facing weak coal prices and opposition from the green lobby. over to paul allen for more. paul, this mine has a troubled history and construction has not even begun. paul: that is right. a difficult to be sure. back in august that it environmental groups a decision in federal court because of the mine had failed to consider the impact of 2 species. we many people never heard ofak until then. at the time tony abbott was president and called is sabotage and the government was considering legislation of vigilante against the sort of projects. now the environmental permission
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costed and it is going to 5.2 billion dollars and australia's largest coal mine. it will ship 60 million tons of coal per year and create 10,000 jobs. it has no shortage of enemies. also going to we need dredge and off of the port to allow the coal to be shipped out. it will be close to the great barrier reef marine park. and aredo not like it concerned about the impact on the water table without considering the applications for climate change. angie: environmental issues aside, does the mind stack of economically with current coal prices? that as the $5.2 billion question. they are keen to receive even though coal prices are the weakest as they have been in more than eight years. however, a bank has said they were not fond of the mi -- would
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not fund the miner. they were not asked but offered an opinion. they said it is truly broken and could fall further. over the weekend, the resources minister said this would need to be a commercial operation is it goes ahead and likely to be any government assistance for it. a strong moral case for the ine, saying it will lift millions out of energy poverty. angie: thank you for that, paul allen out of sydney. .ver to japan sony has been switching from gamingones and tv's to and streaming as the highest profit in nearly 20 years. r&d unit has innovative ways to boost the bottom line. now.ore, we go to grace she at the sony computer science repertory's annual open house. what was most interesting?
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actually, a very interesting event. for sony and r&d doing an open house once a year and more than 20 tell her to scientists from all of the work -- talented scientist from all of the world and show their research results. one of thing i found interesting and gathering a large crowd was a research fund donna by a done by afrom toby -- professor from tokyo university. does, sort of a myself seeing myself from a distance away. it is an experience making yourself seeing what yourself can do. maybe a distance away.
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and able to buy glass and motion sensor. this is a technology. -- enabled by glass and motion sensor. maybe in playstation or -- [indiscernible] experts can not to be at the site but others can actually help to solve the problem at the site. veryis experts like -- cool technology at the site. angie: yeah, technology literally giving you an out of body experience. how did of these interventions linked to sony's performance? csle huang: actually sony was funded in 1985. it was the solve the problem of common human beings shared but not necessarily for problems
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sony is facing. it is aiming to develop the inhnology that can be used the near future but maybe 10 years from now. solving problems like global warming, poverty, and, you know. and i see the recent open house, i find it is very interesting they are coming to sony related stuff. for example, as they are starting a new service from a venture project within the lab. applicationphone released in no member it is coming soon. it is a very interesting application. -- in november, it is coming soon. streaming videos are popular so they come up with a solution. can,g it better so you real-time and share your
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comments to the live streaming video. who is a broadcasting can also see. like angie, where you are in the studio, you can see clapping to you or saying something or you are doing a nice job. angie: that would freak me out more than a help me out. grace huang, thank you. time now for a look at some of the top corporate stories on the bloomberg terminal. zeb: thank you. forn's biggest -- is moving with a banking and assures unit. set a price. analysts expect shares toward the top end of the market for over one demand from investors of the postbank imposter shorts as much as fought -- and post insurance over five times. it may raise $12 billion for
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alibaba is adding to the investment in the streaming business and offering $4.6 billion to buy a different that 82% of youku. new customers sprint analysts -- customers -- analysts say it would allow more streaming. ibm said is giving the chinese government access to some of its software code as is six to prove beijing -- as it seeks to prove beijing is not connected to espionage. for technology companies have to show software code to the government. would not get a backdoor into is technology. agreed to reveal so when does source code to china. a check on the top corporate stories. i am zeb eckert in hong kong.
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angie: time for a look at the big events we will be following this week. china's president xi jinping makes his first day visit to the u.k. commerce minister in beijing said it expects a number of what it calls huge investment deals to be signed during the president's five day trip. singapore kicks off the third-quarter earnings season on wednesday. the monetary authority sat in his working with sgx to strengthen though mark -- the monetary authority said it is working with sgx to strengthen the market. the first chinese lender to report of what is been a volatile quarter on friday. the benchmark tumbled 20% in three months. and friday, the spotlight on malaysia. fears of the economy. the president will present the budget for 2016 despite calls
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for his head over multimillion dollar funding scandal. weakconomy hit by commodity prices and expected to announce a bigger handouts to the poor to bolster support. of course, he may also face a new pressure in parliament over the scandal with the opposition seeking a no-confidence vote. even on man looking at this -- even on man looking at the -- yvonne man look at it and how likely is it to succeed? yvonne: likely to fail said one member. parliament meets today. the motion faces obstacles being beingof and obsolete voted on. not to mention the opposition, alliances caught at fighting for months now. we have seen momentum that has given the former prime minister,
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publicly commenting on the prime minister to step down. people saying may be able to weather this storm and has the support for many divisional heads in his own ruling party. as you mentioned expected to raise handouts to the poor. many which is a core support base. even within, we talked about a cabinet reshuffle. firing his devotee premier and still some tension in his own party. this motion kind of a call from the opposition saying she has failed to talk and address the claims of how this money ended up in his account. linked to the estate investment bank and he has denied any wrongdoing. investors -- investigators saying these funds are linked to potential donations from the middle east. investorsyou said, fleeing with those stocks and
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bringing it down. thank you for that. had a third i quarter gdp numbers from china. are we being too bearish? of third-quarter gdp numbers from china. we will ask our guests coming up. ♪
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angie: other stories. taiwan's ruling party has set a presidential candidates which three months before an election. a poll said the opposition should win. the mayor of a new taipei city replacing the unpopular candidate. he initially declined and nomination but stepped in. citizens in thailand said of their country general election, almost 600 people registered to
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vote. there is a tiny fraction of the estimated 2 million who live in thailand. many illegally. and willon on october be the biggest test so far of the move toward democracy and more openness. solar powered cars to hit the road in northern australia for a 3000 kilometer race across the outback. the solar challenge run every year since 1987. edit this year, 46 entrance from 25 countries. a dutch team is defending the trophy against rivals from universities and high schools. the cars left on sunday with the winners expected to cross the finish line in adelaide on wednesday. more in our top story. china releasing third-quarter gdp figures later this morning and asia. my next guest set the world's second-largest economy is not as weak as it may look. he is president of china and
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joins us from new york. we have been talking about this from the past couple of quarters. you noted that in fact, this downward sentiment on china is overblown. do you see that for the third quarter as well? guest: we do. well seen third-quarter slow down but the reality is there is no crisis. no collapse. back in august when people look at what was going on in china, there was fear this was it. the hard landing. at the at our data in second quarter as seeing a long-term slowdown that will not stop anytime soon. crisis pretty relatively unremarkable quarter of slowing growth. and if dispel some myths here. if you look at manufacturing data that have come out, ppi even, more than 40 months of street declines. all of this tells us that things are slowing down in china.
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why is this particularly a semi-false paradigm? leland miller: manufacturing is not the microcosm economy. it is a sector in the economy. an important one but not the entire economy. it seemsle always do is check them a fragile pmi and look at industrial output and if the numbers are bad, as they think china is in bad shape. we have a mixed picture. services did relatively well. manufacturing did less so. other services, mediocre. a mild slowdown but not this all out collapse. angie: ok, we are starting to mobyfrom people like mark who said third-quarter gdp should be better than what official figures tell us. we as a market, as a whole, since that's right now?
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people werer: scared to death of through august and september and thought it was impossible a good story coming out. gdp is a political number, not an economic number. the gdp number around 70%. and if people expectations off of that which is economists doing a guessing game. whether we beat expectations on a political number is really just a game markets like to play. not a lot of logic. weekendave we not seen exports -- weakened exports here? leland miller: sure, they have been weak for a long time. people said the chinese are figuring out exports are getting hit and trying to devalue the currency to ignite exports. a feature the chinese economy going forward, and will send us in our data, exports are slowing
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it will continue a not a major growth driver. trying to push domestic consumption. it is part of the overall slow down. what they are trying to do is ignite domestic consumption in helpful ways. angie: ok, a lot of people point to the services sector and it is growing. people saying it is lifting up the chinese economy from the heart of lending. the thing is, don't people make less money in services than if they had jobs in manufacturing? leland miller: it depends. you have all kinds of services that make money across the spectrum. the point here's what you look at the quarter on quarter data, you see a slow down. do you see the major a bottom falling out of the economy that people thought you would see? you do not. year on your data, actually some improvement and definitely a lot of stability. this a rather unremarkable quarter of slowing growth. not something to write home
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about but not ship of fear and the home -- heart of others. angie: what does this set out for us? will we see more stimulus and will it work? leland miller: monetary stimulus is pushing. you look at a rates. rates have been dropping over the last 2 quarters. assess and capitals are down. you will not be the stimulate back to health with monetary policy. policy try more fiscal and to some degree it should work. it is uncharted territory. what they are trying to building is a dip in the third quarter. the narrative. if you see recover in the coming months, people will look the other direction a get to optimistic it will not sit down a sick about that stimulus will not solve the problem the chinese economy has announced. angie: leland miller, president china's beige book. and myth buster.
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thank you so much. coming up next -- bridgestone is planning an overhaul a tokyo offices. how is that may move the market after this short break. stay with us. ♪
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angie bam welcome to the -- angie: welcome to the stock is change. we're looking to the open and our reporters are here. monday morning looking at burgers and steak. why not? david: a great chart. juliette: it operates restaurants. a 13% rise. the $.3 billion. i got a bit excited. -- $1.3 billion. expanded to do quite well today. angie: -- angie: as you were
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taking ordered. david: i could take one it now. am doing a construction company. civil engineering. first half operating profits, just blowing past the company's. that is roughly over 2 times. sales were 9% higher. angie: watching that. ta-da. yvonne: bridgestone, the tire maker. a plan on friday which part to invest 30 billion yen on research and development and make a factory in tokyo. 13% down over six months. analysts like a. 0 sales.
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-- analysts like it. i will inflate. angie: nice! the verdict from the stock exchange. back in an
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angie: signs of stress. the gdp data expected to undermine the clintonian slowdown in china. discontinuing slow down in china. sales jumped 21%. end of an empire. john cryan dismantle the predecessor's operation impulses those down on the bank. -- and puts his own stamp on the bank. i am angie lau. welcome to "first up."
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our top story this morning -- the challenge facing china ahead of third quarter gdp numbers. let us growth report expected to confirm the slow down with premier li saying it will not be easy to hit at the 7% target. david and gless is here -- ingles was what we expect. a busy morning. 6.7% is the median. it's .9% is the highest. all the way to 6.4%. -- 6.9% is the highest. what will be different is china has tweaked the way it reports gdp. it is going to close out with quarterly output. the size of the economy as it grows. atively, with spec this number to pull the first nine months of word compared to last year. -- we expect this number to pull the first nine months compared
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to last year. output has not been performing quite well. a look at the chinese economy which by the way, it is now 30 times larger than in 1992. which is not why you get the same pace of rate. angie: of course, it makes sense. not just gdp but asset manager saying retail figures among other things are also important. get retailwill sales, factory output and the short of it, you're watching to see any change in direction of the economy. retail sales are due out. the past 18 years or so. we have slow down in terms of growth. we're looking at 10.8% for september. angie: thank you. thanks for that. , south korea has been buffeted by the global slow down with exports following --
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falling every month and the central-bank cutting forecasts. half things finally looked up? retail sales jumped up after korea took inspiration from america. sherry and explains. ex sherry and -- shery plains. was the korean version of black friday. slashing prices for two weeks. retailers during that period. we're hearing sales the department stores jumped 24% not to mention online malls increased
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and it is so expensive and expand here. and banks are struggling. , whone analyst said manages $40 billion saying it is not going to work. it will not work it without too many people and getting a little bit too optimistic. and ramparts of barclays will also follow suit and a massive shakeup at deutsche bank, the biggest in a decade. angie: thank you for that. coming up next -- a new survey can the u.s. overtake descant china overtake u.s. as the world's riches company? we will look at that when "first up" returns. ♪
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angie: checking stories. at least three people were
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-- a 14-year-old boy died when his family's home collapse while 2 people drowned. the storm weakened as it made landfall with a maximum winds down to 85 kilometer but gusts over 100. thousands of airline passengers stranded in manila. the japanese prime minister shinzo abe reviewed the navy of val to protect japan on land and at sea. his deterioration to require that his decision to rewind the closet to ship has prompted -- his decision to rewrite the constitution is prompted opposition. he said it will give japan the ability to work closer with u.s. and other allies. asian defense ministers warned the west to keep out of regional fairs.
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western interference and the south china sea what is the "the worst possible scenario." the pentagon said it may send warships into the area and can go into international waters. a nation's health and wealth can be measured in many ways and while gdp and employment figures are important, prosperity is underpinned by infrastructure. according to figures released this morning, china is the world's richest country in terms of built environment, overtaking the united states for the first time. more from adam sutton. she is part of the team that publishes the report. part of the team to publish the report for why is it accurate? adam: the top 37 nations around the world and we evaluated the ofues of built asset stock
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international output and with this see a direct correlation between gdp of a nation. 2.9 times gdp. that's pretty consistent country to country across the survey. angie: is in about productivity -- is it about productivity or barometer? adam sutton: not necessarily. we have seen assets in china going forward and going forward up to 2025. china will double the level of assets up to 100 trillion u.s. dollars. that will be double the level of the u.s. and more than the 4 other nations combined. angie: infrastructure investment build assets for china has helped lift it out of the global financial crisis. a landing.iencing some say at hard, bumpy one and
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perhaps a little bit uncomfortable. still you see more investment in infrastructure despite china saying it was to look at more consumer driven. adam sutton: it is well noted is casinoto move toward instead of export. take the example of the one bell, one roud, north on the maritime route and trees a dollars. angie: and looking outside of each -- and trillions of dollars. -- angie: and looking outside of china. adam sutton: across the whole of asia. angie: where does this leave the u.s. now surpassed by china? if you fly into any of the main airports in the u.s., i think one of the candidates, donald trump even said it is pretty sad. the infrastructure is
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g7adam sutton: most of the and wasn't economies are struggling to keep up the pace. they have a significantly aging asset base. we need to look at the u.s. the u.s. is still growing. it is still investing ball far more developed economy and not going to be able to address at the level. angie: is it a warning level for the u.s.? adam sutton: perhaps and probably a warning for most of the western countries to get better efficiency out of the assets and seek ways to invest more efficiently to increase the value. angie: seeing we are in a very liquid global environment of cheap money, why is it spent in infrastructure? instances,: in some it is. look at some of the big programs across europe and the u.s., the money is going in there pretty
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is it enough to rebuild? years, where is the china a europe a u.s. stand? years, 2025,in 10 as i mentioned previously, we see china at 120 trillion u.s. dollars, twice the u.s. an larger than the next 4 economies combined. other asian economies coming up through the rankings. for example, thailand, indonesia, and the philippines. substantial investment. interestingly, where the poorest performers in asia is japan which has seen a negative growth. over 4 trillion u.s. dollars since 2012. angie: per capita leaders including hong kong, 160,000 per u.s., what does it mean? adam sutton: if you take the
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value of the assets and a nation and divided by the people, a value per capita. in the previous version we did two years ago was at the top of the leaderboard and now overtaken by qatar it have to do with infrastructure in qatar both the general transportation road and for the 2022 world cup. angie: what is the significance of correlated to person spent? adam sutton: how much is the government is investing in the population. singapore is now number two in hong kong is number three. -- and hong kong as number three. angie: you have quite a bit. some southeast countries notable. adam sutton: malaysia and indonesia coming up the leaderboard. angie: what does it mean for potential growth? to invest in infrastructure especially for emerging markets
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and especially for a demographic that is very attractive to foreign investors? adam sutton: that continued will drive economic growth in manufacturing sites, in ports. the more you invest, the more you expect. a good lead indicator for future growth. angie: a very good barometer. 2.9 times in gdp growth. adam sutton, we will leave it at their. thank you very much for sharing that. back in the on the ruble. one investment firm is theirs. -- betting on the ruble. -- one investment firm is bullish. ♪
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angie: welcome -- juliette: welcome back. it is a monday. your fx headlines. are gettinghe yen fist in a according to goldman sachs. the pboc has a chance to add ammunition in the form of a rate cut. policymakers have curbed depreciation giving them more room to ease monetary policy. j.p. morgan chase said a trigger for action could be today's gdp report forecasted to show economic growth slid further. could the rally in high-yield currency be running out? dollart from the aussie
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to south african rand strengthened and up has month after the federal reserve held of raising interest rates. analysts say it could be the calm before the storm which may recount all the threat of a fed liftoff. the aussie dollar posted the longest rally since 2009 earlier this month as features showed the december rate hike followed. swings in the ruble over the past 12 months have been too much for some to bear. one hedge fund sees only opportunity. 1.9 billion dollar william blair front boosted holdings of the russian currency to 4% in january before doubling down. the london-based money manager have 95% of peers over the past three years and keeping a long position on the ruble which close at 61.2.9. 61.29. a check of some the currencies and our region. inking about these rallies high-yield as seeing the aussie dollar a little weaker down by
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0.1% at 72.5 against the greenback. the kiwi is a little weaker against the greenback and down zero .25% holding at six and 7.95. a strengthening and the japanese yen. at 69.75.olding and those are the stories driving the markets today. angie: thank you. time for a look at the big events we will be following this week. start off with chinese president xi jinping making his first visit to the u.k. this week. his first day to visit. and is due to address parliament on tuesday. the commerce minister in beijing said it expects a number of what it calls huge investment deals to be done during the five-day trip. off thepore kicks
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global exchanges third-quarter earnings season on wednesday. the monetary authorities said it is working with sgz to strengthen the security markets. it was reprimanded last year after suffering 2 trading disruptions. china's bank with the third quarter results on friday at the first chinese lender to report after what is been a volatile quarter to say the least. 20%hmark composite tumbled in three months through september. friday turns the spotlight on a malaysia. amid fears the economy is facing a lot decade. the primary stir present the budget for 2016 despite calls for his head over a funding scandal. he is expected to announce a bigger payments to the poor to bolster support. a children's car movie has topped the north america box office to four away.
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"goosebump" beat stephen silberg'dan steven spielberg'-- steven spielberg's first film in three years. predict --rs fans prepare. disney has the firm tickets for the seventh movie and a franchise will go sell on tuesday. sales activist either released a new trailer "the force awakens" on monday in the u.s. disney has released an official poster. the rate debate. china silicon of u.s. treasuries after the break, we have more. ♪
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angie: all right, we're taking you to singapore. where the hayes continues to choke the city. more hotspots detected in indonesian forest fires. three-hour pollution gauge index reached 133 this morning, having topped 183 earlier. mobile, and online, you are watching first up. ♪ top stories this hour, we are
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waiting third-quarter gdp data from china this morning with further signs of weakness anticipated. surveys by bloomberg say that the economy grew in the last quarter, the slowest quarterly pace since 2009. figures are expected to remain weak. salesrst flat friday already proved that more are underway for next year. , departmenters rose store traffic jumping 24%. online mall sales increasing 30%. the biggest result was a 36% jump for sales and convenience stores. deutsche bank is clearing the deck under the new co-ceo. senior managers helped to build the bank security unit and reorganized the money management business, they will be moved to other divisions as part of plans to cut costs.
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they will abolish the 19 member group executive committee as well as 10 of the 16 management board committees. let's check in with markets trading in the pacific. 220 five, losing ground, half of tolower, south korea down 1/10 to 1/5 of 1%. australian equities also down right now. pretty much sentiment is down ahead of the china third-quarter gdp figures. we saw china hitting the cell button on u.s. treasuries. the alarm bells are not ringing yet. that is because extensive new data compiled by bloomberg revealed that americans are staying local, buying the nation's debt even as china backs away. sounds familiar, doesn't it? what does this data tell us about america? >> americans stay loyal to uncle sam, buying into u.s. debt.
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a curious situation given the fact that china has been buying at gang buster paces over the past three years to limit gains in the currency. the scenario is different now. china is still the biggest foreign creditor, $1.4 trillion in holdings. americans at 1.6 billion, the chinese have reduced their holdings by about $200 billion. as i said, one dollar trillion now is held by domestic u.s. funds. it comes of course as we await the fed interest rate moves and as china works to counter problems at home. they need that money to deal with their own economic challenges. a very curious reversal here. these big purchases by china in recent years have helped to keep a lid on u.s. financing. for all the politics involved, is still a very real impact to both sides they can be grateful to the other.
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>> so, there is domestic manned, but what is driving the chinese decision to sell? >> they no longer necessarily need to keep a lid on the currency limit gains. china dealing with its own slow down as we talk about that each and every day. china needs to raise money to support their own markets. let's not forget the dramatic market pullback that we saw in shanghai that rippled through hong kong in the world. the chinese spend cash to basically shore up the domestic market and the programs that they are putting into the economy. if this continues it will be the first time the china has pulled back on an annual basis from buying u.s. treasury's. angie: thanks for that. the us really a treasury surging this morning as they respond to the plan to purchase the u.s. in u.k. premium wine assets, up close to 14%. 13.5 to be exact. paul allen is taking a look at it for us right now.
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backed strongly here? >> they sure are. trading at a four-year high, a very impressive performance indeed. as you mentioned they went into a trading hold for this deal to buy their premium u.s. and u.k. assets. shareholders at the time were going to be offered to shares at every 15 that they held $5.60, a 15% discount on the last close. shares are now at $7.33. probably a few shareholders having champagne with her breakfast this morning. how sustainable is this? how long will this kind of game last? i guess we have to wait for earnings that will be out in a few months, then we will get a close look at the price to earnings ratio to get a better idea of what the fair value is now for treasury lines. broadly this is all part of the and it is an area where the
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treasury has some pedigree. mostakers of australia's famous wine and had the vintage released in shanghai last week, launched for the first time outside australia. you won't get much change out of 800 australian dollars. certainly this all seems to be a vindication for the new ceo. >> all right, who says that there is a slowdown in china? thank you so much for that, paul. time for a look at some of the top corporate stories on the bloomberg terminal. amazon has file a lawsuit against over 1000 unidentified people that they said posted fake reviews on the website. the company said that the defaults were offered on for as little as five dollars, tarnishing the brand. they previously sued several websites showing fake customer
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reviews back in april. big blue is bowing to china on software security. says that they are giving access to some of the code as they seek to not link to cyber espionage. a new security law in china requires foreign technology companies to show software code to the government. beijing will not be getting a backdoor into their technology, they say. 2003ng microsoft agreed in to reveal some of the windows code to china. pepsico has been replaced as the title sponsor of the indian premier league cricket tournament. no details have been revealed about how much they are paying. pepsi had committed about $62 million as the title sponsor for the tournament. those were the top corporate headlines at this hour. sony has been switching
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its focus from smart phones and television to gaming and streaming as they target the highest profit in nearly 20 years. the r&d unit may have innovative ways to boost the bottom line. -- number tech reporter was at the sony annual open house. i understand that you had an out of body experience thanks to technologies? what was that all about? was an interesting experience. i felt like my soul had somehow escaped from my body, watching myself from over the top. it was a very interesting experience. i could see myself from 300 and 60 degrees of different angles. it was very interesting to see how i move around the room. all of this was enabled by 3-d glasses. and motion sensors surrounding it.
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it was definitely one of the eyeball catching experiences at the open house. it is located on a small building away from the main street away from where the headquarters are located, but they gathered a lot of academics and business people from around japan. it was a very interesting event. angie: cool factor is one thing, but how does sony expect or think they will make money out of all of this? >> well, csl was founded in 1988 and originally formed to tackle common problems that humans face, like poverty, environmental issues. nowadays, you know, they are reforming the company into a more profit-seeking company. closed the csl has
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business as well. for example, they will be releasing a smartphone app coming next month in november that is actually from a new business creation, a process from within the lab. they will be releasing their own products and i think it is an interesting experiment. what does it do? it is taking advantage of the currently very popular live streaming and online video. basically when they broadcast, for example, you and i on this program, the basically the audience can stamp their own stickers to maybe cheer us up or throw candy at your something. it's a very cute, interesting at. i feel like it will offer more interaction with the audience in the host as well.
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so, yes, they are coming to do more experience -- experiments in business as well. >> social media at a whole new level. thank you so much, grace, for giving us a peek into what the future may look like according to sony. coming up next, the chinese president prepares for his first state visit to the u.k.. take a look at his agenda when we return. ♪
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angie: welcome back. you are watching "first up." new pressure over a multimillion dollar funding scandal with the seeking a no-confidence vote. at the same time they are prepared to present what they have called a difficult annual budget. yvonne is taking a look ahead for us. this issome say that
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clearly designed to fail. this is the fourth last issue they will be discussing this week and this motion is pretty much facing obstacles in even getting heard, let alone being talked about. we have seen the opposition itself with a lot of infighting over the last couple of months, but it has gained some momentum from the premier, who publicly criticized colleagues of the prime minister to step down, but some say that it may still be able to weather the storm. this budget is set to raise handouts to the poor, many of them have a core support base for him. even within there is tension with the cabinet reef -- cabinet reshuffle from back in july. some saying that the opposition are saying that he has really failed to address how these funds that were tied to them ended up in his account. say that these
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were all political donations that came from the middle east. angie: political entrenchment is one thing, but when you take a look at what foreign investors this political scandal, really, is really hurting sentiment. is there a quick resolution to this? yvonne: most analysts say that there is no quick fix to all of this. bonds, four point $6 billion have been wiped out in the third quarter. we have seen a rebound recently, but people say that this is very sentiment related and a lot of what is going down in the headlines affects the currency as well. some say that it may not be falling back as fast as it did at the end of september. there was a peek on the end of the 29th, but it was still consider the worst-performing currency in asia and with this slump in oil some say that the government there is dealing with a very difficult budget.
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>> checking from the stories making headlines around the world right now, the taiwan ruling nationalist party confirmed that three months before the election the opposition will win. is the new contender, replacing the unpopular. he declined the nomination but stepped in trailing the pro-independence epp with 20 points. decisions from thailand capturing their country's general election, 600 people registered to vote, though there is a tiny -- that really is a tiny fraction of the estimated 2 million who live in thailand, many of them illegally. 8 that will be the biggest test so far in the move towards democracy and more openness. dozens of solar powered cars have hit the road in northern australia for 3000 call him
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across the outback. the challenge has been run every year since 1987 and this year there are 46 entrance. rivals are mostly from universities and high schools. the chinese president this is making his first state visit to the u.k.. a number of views are expected to be announced in the five-day trip, including a nuclear pact that will give china its most expensive atomic energy plant. mckenzie has a look at the grand welcoming prepared and what britain is in town. >> president xi jinping's british hosts are laying on some lavish hospitality. the chinese leader will die with
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the queen at buckingham palace, addressed the houses of parliament in even take a ride in a royal carriage. the five-star treatment is aimed at making britain china's leading trade partner in europe. china currently invests 25 billion pounds in the u.k.. 100ain one set to hit billion by 2025. at the top of their list is a investment in the hinckley nuclear power plant. britain is also offering up 12 billion pounds in contracts for the scheme with a 1.2 billion pound investment in 10,000 new homes in the north of the country. the chinese automaker is set to be eyeing further investment in coventry. london could become the first overseas financial center to open a market for chinese sovereign debt. both sideser that are hailing this is a golden and in british ties. angie: that's take a closer look
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at his trip. here is our asia government reporter at large, david tweed, joining us now. this is a pretty big visit for the economy. seems to be lagging behind some others. david: one thing just stands out from what they have said there, the u.k. wants to be china's leading trading partner. well, it's not. it's not. the five biggest economies in the european union, britain has got the biggest trade deficit. when it comes to exports into china, only 5% goes to china, which does not compare to germany. looking at foreign direct investment, the money coming from the u.k. is come to the lopsided compared to the money coming back the other way. this really is a very big two-way story. britain absolutely wants to get more of china's investment, but at the same time china wants to have the prestige that comes
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with the visit to london in the u.k.. >> we have already seen steps towards the u.k. seeking to the bridge rests this cap? we have seen the key nuclear deal but the chinese have said that there will be huge investments coming from china into the u.k.. they will be in telecommunications, energy dimensions. there could be autos or a whole range of different sectors. the other interesting thing on the itinerary is that xi jinping will be in london but he is also traveling north of manchester. see is about wanting to manchester, this northern leading city, getting more chinese investment because they are looking for china to help the u.k. economy. angie: how is the visit being sold in china? and let you asked. it is the same in beijing, i been talking to our reporters out there, front page they have
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fully devoted to it. you would think that in the u.k. the public would be in a frenzy of anticipation waiting to see xi jinping. i mean, it's true, britain is rolling out the red carpet. he is staying at buckingham palace for four nights. they are really pulling out the stops in terms of wanting to show him how important he is. remember, when he met -- when david cameron met the dalai lama two years ago, britain was chill. what they are doing is bending over backwards to roll out the red carpet. this is an absolutely key economic relationship that has been recognized by the u.k. government. a most buzzed to visit with the clean, no doubt. david, thank you so much for outlining all of that for us. coming up next, cooking up a storm. one fast food chain in japan had a juicy quarter, when we return. ♪
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♪ check in on what our reporters are watching this morning. >> i won't take up too much of your time, i think someone wants to gloat. if you like we down in the hamburger joint in japan, a 13% rise in the nine-month profit. someone's to do list today? >> construction, civil engineering company, very impressive first-half results blowing past their own estimates , 9% their own choices. >> ok. the air is coming out of the tires. >> continually as we speak. redstone announced this big plan on friday and said that they could be investing $203 billion on reorganizing facilities in tokyo.
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we're talking about r&d, but investors are not going to be happy. good news for you guys. look at that smile there. >> just glad to see everyone at the office. >> you had a great weekend, too. >> it was still long. [laughter] >> you did not get the black and white memo that we got. >> no, no. [laughter] >> all right, it is. it really is. reporters picks are based on news events. all right, trending business is coming up next. where should we be taking a look? >> talking about rubbish collections. no, of course not. chinese gdp coming up in just over an hour. , as people use it more as a
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guide than anything else. 4%,thing closer to perhaps but that's the alternative. the official number is 6.8%. coming from the state taking place in japan, the biggest since 1987. >> the higher end of the range? >> that is what people are telling us at the moment. correct, that is in the prospect of pricing. the insurance company postbank, etc.. alibaba, a $4.6 billion bid to buy the rest of the bid, alibaba looking to do that with the content to stream more video. indeed, to do that a youtube
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website, taking over the bit of it that they do not already own. the future is online. >> the fingers in the pie. [laughter] angie: thank you for joining us today. ♪
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monday, the 19th of october. this is "trending business." i'm rishaad salamat. ♪ rishaad: coming to you live, we're looking at the losing starts on the asian markets for the week, but one bright spot, drinks are around with that officer dealing with signs of stress in gdp data from china, expected to confirm


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