-- to the u.k. candidates are registering to run for the president of the philippines. we will be live in manila. the value of investment in china and india are rivaling those in california's tech heartland. warsts for the next star are about to go on sale, two months before the movie opens. juliette: we are seeing a better-than-expected gdp number coming from china. weaknesseen some coming through in korea. the weakness on the hang seng

dragged down by the casino stocks. the shanghai composite up 5.7%. -- up by .7%. korean one and aussie dollar also with earlier losses. it does leave the government 70% target -- it does leave the government 7% target within reach now. david has been sifting through the numbers. 7%id: we are growing below for china, that is the third quarter number. 6.9% year to date, a little bit below the 7% growth target. given the measures they have put seem they areoes confident they can meet their

target. just to put this into context, 6.9%, it was 6.8% was the estimate. if you look at how large the economy is, that translates to $110 billion in additional output. it is a fairly big amount of output. this is more interesting -- services clearly the biggest portion of output for the first nine months of the year when you look at the primary industries, everything from agriculture. you can see that on your screen. 40.6%. iss, they areg m continuing to scale back the overcapacity issues.

you have this big drop when it comes to property, housing investment fell 12%. go,il sales, there we beating forecast, a little bit of improvement from august. what does the government say? press -- the economy is still facing downward pressure. it is not -- deflationary pressures are quite high. rishaad: the size of the service economy and the pay package of people in rural and urban areas. david: you are seeing an increase in disposable income when you compare urban and rural. the pace at which it is growing

is quite good, 9.5%. rishaad: david, thank you. angie: britain is preparing to roll out the red carpet for china's president on his first state visit to the u.k. a number of deals are expected to be announced, including a nuclear pact that will give the world'se in most expensive atomic energy plan. here is david tweed. this is a pretty key visit for the u.k., but they lag behind other european countries. the meeting that david cameron had with the dalai lama in 2013. angie: china did not like it. david: after that, you saw a

freeze. if you look at the top five chinaan union partners, -- britain has the biggest trade deficit. exports going to china. it is something the u.k. needs to address. angie: how is the u.k. doing that? the queen is factoring into this. what the u.k. is doing, they are rolling out the red carpet. one currency china is interested in and that his prestige. he is going to be afforded all of these incredible honors.

angie: incredible for china. david: there have been some reports that prince charles will have a tea, but he will not go to the state banquet. he is doing a protest of his own on their position on the dalai lama. but that has not been confirmed. it has not been reported by the chinese. u.k.ould think that the --ulace was in a frenzy angie: how is this being covered in china? david: this is the front page of the china daily, hong kong version of the chinese daily -- china daily. inis a similar situation beijing. frontpage wall-to-wall coverage of the visit and the incredible

-- it is little bit like what we saw when he went to the united states. the meals, everything, 21 gun salute was all recorded an absolute detail. deals.economic david: the nuclear power deal, and the assistant commerce minister said there would be huge deals signed. it will not just be london, but manchester, an area that the u.k. wants to redevelop. the united kingdom is the biggest foreign exchange location on earth and they are desperate to be able to get that and maintain that position. you need to look at other factors. it was the first western country to join the asia infrastructure

investment bank. that went against what the united states were pushing towards. a whole series of things the u.k. is doing in order to get that investment. we have a very special moment in the relationship diplomatically between the u.k. and china and this is an opportunity for the chinese to invest in the u.k.. angie: courting favor in china. rishaad: let's check on some of .he other stories, fighting attacks on its accountancy practices.

treasury announced plans to buy the wine assets for $600 million. the company shifts its focus to luxury premium brands. bank is clearing the decks. senior managers have helped t willthe securities uni leave or be moved to other divisions. angie: one third of china's citizens watch streaming videos, making it a lucrative market. alibaba has made an investment in streaming videos future. alibaba. involves

site popularmobile in china. shows.rs many u.s. that is why alibaba wants to hop up its investments. they are offering $4.6 billion for the rest of the video site. alibaba wants to gain that additional 82% that it does not own because jack ma sees the future and linking video content with all of the other properties in the ecosphere. you connect them across the platform and that is a go to word in business, synergy is what takes effect. a third of the population in china watching streaming video. deal with does this

youku give alibaba a leg up? own offeringsheir and they are doing very well. let's think beyond streaming video. they are doing well in the , being able to sell advertising, monetize the content. content is one area where jack ma has a lot ambitions. he has met with hollywood executives. , take thatent content and bring it to china, which has always -- not always been available in the past. angie: thank you. later, weoming up look at how venture capital in asia is picking up pace and

mounting a challenge to silicon valley. china's growth rating with hsbc. ♪

angie: a weakening chinese economy, high volatility, keeping foreign investors away from asia. rishaad: our next guest sees long-term value. rallye saying the relief in this quarter, but it is a bear market rally? >> if you look at the latest round of data, better than expected. the consumption and services side of the economy has been very resilient and retail sales growth, seems to have been rebounding.

these are bright spots in the economy. -- 20% why we think definition -- in reality, it is probably the most likely scenario and we expect this relief rally to continue for a while in the fourth quarter. angie: offsetting manufacturing and exports, but does this sustained rally bleed into 2016 or do we see a drop there? outlook, idium-term would like to see more momentum on the reform side. if you look at what they have accomplished so far, it is pretty good. reforms,of pushing

there has been some stagnation. -- it helps to reform momentum. the profitability could be revived. that is a medium-term story. are they talking about the reform of the state owned enterprises? stephen: the short answer is yes. during those six years, it picked up.

it is outperformed the poe sector. all of this is because they have taken very aggressive action in terms of downsizing. is the government compared to take similar aggressive measures in terms of downsizing and reform? eventually, they will get there. angie: isn't this dangerous, especially for the current political climate? you have to keep people happy. " a lot of trade-offs you have to do. higherd also mean nonperforming norms. you cannot just get away from those hard choices.

last year, they downsized 10,000 people. downsized one third of its workforce. incrementally, we are seeing more evidence, which has yet to amount to something really significant. the direction is quite clear. rishaad: it is all about keeping people happy. going to change the country's engine of growth. latest data in terms of the service sector is bigger than 50%. if you look at the consumption sector, there are a lot of bright spots.

entertainment spending, not to travel overseas, you can find a lot of bright spots. what is the real growth rate? trying to find the growth areas that have high visibility and are growing much faster than the real gdp. angie: tech, health care, those are the things you are looking at? and thee consumer space strategic industries, still locked -- still a lot of growth. angie: two i for joining us.

-- thank you for joining us. rishaad: it is a crowded field. angie: more than 100. we will take a look when "asia edge" returns. ♪

>> the malaysian prime minister is facing new pressure to resign over a funding scandal. they called for a no-confidence

vote. he is under fire under claims that hundreds of millions of dollars ended up in his personal account. he has denied any wrongdoing, saying the funds were political donations from the middle east. the japanese prime minister has vowed to protect japan at land and at sea. his decision to rewrite the constitution has prompted criticism from china, korea, and others. it has led to popular protests at home. the new legislation gives japan the ability to work closely with the u.s. and other allies. at least three people were killed, thousands more displaced when a typhoon hit the philippines. a 14-year-old boy died when his family home collapsed. weakened as it made

landfall with maximum winds down to 85 kilometers per hour. thousands of airline passengers were stranded in metro manila. rishaad: things heating up in the race for the presidency in the philippines. the election is seven months away. more than 100 candidates have registered. j.p., tell us about some rather interesting characters. filing for the national election last friday and we have some wheat to clear. the commission electorate will be screening out the new since candidates -- nuisance candidates. your choices for candidates, one

who claims to be lucifer and another who claims to be an intergalactic earth ambassador. in 2010, 99 candidates filed for presidency, but only nine were allowed to run. rishaad: out of these 130 candidates, who are the front-runners? there are four main candidates out of 130. there is the ruling party candidate. the current vice president and main opposition candidate. he carries with him quite a bit of popular support from the masses, but also allegations of corruption. most of his family is knee-deep in politics in the financial district of the country. you also have a neophyte senator who has a respectable record in the senate and is the daughter

of the country's most famous action star. we have a tough stalwart in the philippine senate. she was diagnosed with stage four lung cancer. has the namesake of ferdinand marco as her running mate. rishaad: j.p., thank you for that. bloomberg tv philippines launching just two weeks ago. andcan watch on channels 8 127. ♪

angie: china's economy expanded quicker than forecast. services sector stood out. it is the slowest quarterly expansion since the first three months of 2009. the u.k. rolling out the red carpet for president xi jinping as he makes his first state visit to britain.

he will launch with queen elizabeth at buckingham palace. he will address the houses of parliament. treasury announced plans to buy 600 millionets for dollars. shareholders were offered to shares for every 16 they owned -- two shares for every 16 they owned. japanese equities come back online and the shanghai market takes a breather. juliette: it has been a very positive session for the thai market. the shanghai market going on that lunch break. the nikkei paring some of those

earlier losses, pretty flat at the moment. sentiment being turned around by that better than expected china gdp number. the aussie dollar has come back from earlier losses. a bit of weakness weighing on casino stocks in hong kong and the singapore market. these are some of the major market movers in the region. we have seen a big pickup coming through in insurance and brokerage stocks and petro china getting a list ahead of the president's visit. petro china and bp talking about a potential tie up. treasury wine estates, a four-year high in australia. after that institutional offer. we are seeing some weakness

coming through from mining players in the region. rio tinto dragging on the overall benchmark, down .7%. angie: china's prospects have been a talking point for our guests all morning. things may not be as bad as some fear. >> china is not quite as important as those numbers would lead you to believe. i am not saying they are not important. if the u.s. economy continues to do well and if europe continues to pick up, things in the global economy probably are not quite as bad as some people may fear. angie: the key to the economy is investment. issue, theicy government can deal with the

economic slowdown. if you look at the first half, one major concern is traditional growth has not been effective. if you look at today's -- investments still remain weak. support coming from the fiscal side and the monetary policy side. angie: it can be measured in many ways. prosperity can be underpinned by infrastructure. china has become the world's richest country in those terms and that trend looks set to continue. 2025, -- wet predict in 2025, china will double. that will be double the level of the u.s. and more than the four other nations combined.

angie: that is today's word from asia on china. has longsilicon valley dominated the global technology industry, but it may need to watch its back. venture capitalists are increasingly looking to asia. bloomberg news reporter -- what is behind this? >> investor interest. the service sector is really booming in china. incrediblere is this -- venture capitalists still believe in the china story. the deal sizes are going into car hailing services. - 300a's craig list raised million. it is not just from domestic

funds. they are raising it from people like kkr. rishaad: india had a big one as well. >> india, it is a much smaller story, but it is growing fast. the stockow does market play into this? capitalist, venture you are looking in the next years. >> if you are early stage, you have anywhere between five and 10 years. for you, a slow stock market is great because your entry for newer's -- entrepreneurs will be less greedy. if you are a growth equity guy coming in at the late stage, the stock market is more of a concern because your exit might be in the one to two-year horizon. the stock market slowdown has

they see news because buying opportunities in china. rishaad: we will take a look at some of the other stories making headlines. ibm giving beijing access to some of its -- as it seeks to prove that its products are not linked to espionage. says beijing will not get what it called a backdoor to its products. in 2003, microsoft agreed to reveal some windows source code to china. replaced pepsi coke as the -- pepsico as the prime sponsor of india's cricket league. no details on how much is involved.

japan's biggest ipos since 1987 will see pricing for its banking and insurance divisions of japan post today and is looking at shares to be offered for the top end of the range. there is huge demand from investors. it is a three-pronged ipo and it could raise $12 billion. angie: south korea has enjoyed its latest take away from america and expanded version of black friday has produced a jump in sales and big plans for a repeat next year. how did it go? morning.od i am standing in one of those key shopping districts, more than 34,000 stores/prices by as

much as 80% this month trying to -- andshoppers to spend it worked. the finance ministry says sales of the largest 22 retailers rose during the black friday period. those department 24%es that's all sales rise -- that saw sales rise 24%. we are also talking about online malls. as well as convenience store sales rising 36%. the ministry expects this uptick 0.1% tol sales will add economic growth this year. the central bank cut its growth 2.7% fromor 2015 to

2.8%. due to poor performance in the second quarter. but things seem to be looking up. third-quarter gdp numbers are expected to bounce back. that would be from 0.3% growth in the previous quarter. 2.4%.ht uptick to policymakers have been trying to spur domestic demand. with the success of this year's black friday, policymakers are planning what is next. they are going to announce plans for 2016 for another season of sales here in seoul. angie: thank you for that. rishaad: china's economy expanding faster than economist predicted. what lies ahead? ♪

western interference in the south china sea would be quote the worst possible scenario. the pentagon may send warships into the area insisting it has the freedom to sail in international waters. myanmar citizens living in thailand have cast their ballots early. it is a tiny fraction of the estimated 2 million that do live in thailand, many of them illegally. myanmar's election will be the biggest test so far of its move toward democracy. rishaad: taiwan's ruling national party has confirmed the

candidate has switched. chu to became -- eric became the party chairman. he had declined the nomination but stepped in. angie: welcome back. is china the new black? again. >> it certainly is this week. we hope this thing plays out a lot longer. it is looking to -- the idea of what has been driving the controversy seems to be waning and people are realizing things are ok in china. this knee-jerk reaction was built on a lot of speculation. gdp came out, there is a

reassurance that things are ok. rishaad: speculation likely to grow as to what will be in the latest plan. see, and it isl pretty symbolic today, the number is driven by the service side. the new china is driven by i.t., technology, and services. when you look at the growth of the new china, it is playing out the way it should be. the industrial form of the old china that is being killed off by the government is representing the fact it is being killed off and the new form is the service economy which will drive china forward, margins are much bigger. rishaad: 7% is where they want to be. it is much harder to plan a services-based economy than a

manufacturing one. brett: we are seeing people drive services, the need and the desire of people to get better service, to get better -- iiencies in the system will stay away from the political side of things. at the end of the day, the consumer drives what grows the country and this is a consumer led built and the nation is being propped up by a bunch of consumers that want more quality. they want better quality, they want a choice. >> how do you play that? is it too late or too early? luxuryultra high end goods probably pause here for a moment. you will see the middle-class become more of a buyer in the

market. you will see more of a gradual trend into luxury goods. the world is built on brands these days. people come up with this curve, they ask for new things. cares luxury goods, health comes in the same vein. >> all of the rebalancing happening in the economy, it is not yet enough to offset the growth drivers. it is not enough to fill the whole that has been -- hole that has been left behind. >> how this plays to that point, what you will ultimately see is the metrics people used to judge

the health of the economy will be different. gdp is an old factor, and as -- industrial-based component factor. >> that can be redefined. >> 100%. it was invented for a purpose that suited the time where you could feel the pulse of the economy. i think what people need to start to think about is how does the new china get defined from a numbers perspective? do we look at performance of internet, service, the ability for china to start gaining patents and intellectual property? >> is in this already somewhat restricted in that china is still a nation of savers. take a look at social security.

how do you unleash that power of discretionary income? >> that is a great question because it goes to the next phase. china is an equity culture. it drives the national health from a perspective of how do you judge what is going on, look at the equity market. the shanghai composite is an equity indicator of the old economy. it does not show the health of the nation. what happens next is you develop a deep debt market. if china wants to graduate to become a reserve currency, you need a huge market to drive that . everyone has a bigger debt market and a smaller equity market and china is the exact

opposite. you will have a deeper debt market, more secure deposit rate , people can get a return. >> it is not like china has a shortage of debt. the central government could take over and level the debt. >> it is doing that, you have $3 trillion of off balance sheet scary nonperforming debt that will be transformed into the likes of the minas about bond market. -- likes of the municipal bond market. that puts confidence in the system, right? this driver that the market and the global economy, having confidence in what china is doing. we see the fed kind of backing up and currency spreading, the pboc has the opportunity to get

some monetary easing into the system that is not sacked out by the exchange rate. ucked out by the exchange rate. that was the conversation we had at the start of the year. that they have not gained a lot of traction. at the bigger plan, in 2006 and 2007, reform was clearly on the table. and then 2008 happened. you have this huge acceleration andn equity to debt swap the fed starts talking and august happens and these things

get paused. it will give people a clear indication as to what the game plan looks like in the market has been calling for that. the market needs guidance from the central government. hopefully, the pboc weighs in as well and gives some indication. and then monetary easing gets to work. about a we were talking so we reform and how they keep -- soe reform and how they keep promising it. you have to fire a lot of people. you have to keep people happy. you fire a million people, it is not just one million people. angie: you might end up on the streets. >> the reform will be a delicate

balance of -- they have historically been employers of people in that cannot go away. privatecapital, entrepreneurial spirit can unlock a lot of value. that is where you start. the spillover is the service economy gets built from it so people can be repurposed. it is not that easy to do, but there is a plan to do it. of peoplething a lot have little attention to which speaks to this from the private side. it is a very important thing for people to pay attention to. they get the efficiencies of whatever they need and they stopped margin erosion and they went out and bought a piece of

lyft. that will happen from that level as well. angie: we are starting to see that in terms of consolidation. coming up next -- rishaad: the force awakens. angie: the latest on the star wars movie when "asia edge" continues. ♪

angie: fans of star wars can feel the force already. rishaad: tickets going on sale around the world as of tomorrow. angie: isn't that two months early? are you grabbing tickets for us all? newou can also get this

star wars poster online. it was just released over the weekend. tonight on monday night football, they will be releasing a new trailer. the latest trailer for the seventh installment of "star wars." tickets on sale two months before this hits u.s. theaters. the run up to this latest george lucas masterpiece. rishaad: we do not know if it is a masterpiece. >> it could be the third highest grossing film in history. these films hugely popular and you build a franchise, right? billions of dollars. angie: that is it for "asia edge."

at 9:00 ifmie dimon you are watching in hong kong or singapore.

>> the following is a paid program. the following opinions expressed does not reflect those of bloomberg l.p., its affiliates, or its employees. >> the following is a paid program for p ready products. >> hello, and welcome to the show. we have a spectacular program lined up for you, lots of information to cover. dr. neil 11 with. he products is with us. let me ask you a couple questions. are you falling short of the recommended 7-9 servings of fruits and