Welcome. Youre watching the pulse live from bloombergs European Headquarters. Were here in london. Im guy johnson. Im francine lacqua. This is our top story. G. D. P. Came in ahead of economist estimates and dashed some hopes for large scale stimulus in worlds second largest economy. Bloomberg economist tom joins us from beijing with details. First of all, are we being overly aggressive when we said there was a surprise on the upslope . This is still the weakest data we have seen since 2009. I think that is a good way of looking atice, guy. 7. 3 growth in the Third Quarter was slightly better than 7. 2 expectations but only really marginally better. If you dig into the details of what is behind that number, what you see is continued weakness in the domestic economy. Real estate has to have been the biggest headache for chinas leaders, continued contraction in sales and property. That is being offset by the u. S. Consumer, a little bit little forms of exports a little stronger in the Third Quarter. The story here really, weakness at home being offset by a little bit of strength in terms of overseas sales. What does i mean for momentum going into the Fourth Quarter . So there were some pretty encouraging numbers on what was going on in the economy in september. We saw industrial growth popping up to 8 . Up from 6. 9 in august. Electricity production, which lots of people use as a proxy for overall growth in china, came back into positive territory after a surprise contraction in august. So if youre looking at the monthly data, there were some fairly encouraging signs that there was a little bit of growth momentum for china heading into the final month of the year. Finally, where does it leave those that think we need to get further stimulus from the authority . We have a situation where were watching the housing sector carefully. There was concern around the banking story. Where are we in that process . What are you hearing . What we have seen in the Third Quarter is really the Chinese Government rolling out a series of targeted measures to support the real estate sector and provide funds for the banks to lend. My expectation, and i think the expectation of many china economists is that that is what were going to see pushing into the Fourth Quarter. The economy is weak but it is not so weak that we need a major stimulus. It is not so weak that we need a cut in Interest Rates. Employment a key metric for the Chinese Government, remains relatively robust and that also argues the targeted measures rather than another major stimulus push. Thank you so much for that. Staying on china. Yeah, jaguar, land rover, just opened its First Manufacturing plant in the country. Joining us now with further perspective on chinas g. D. P. Stories, chris bryant, the president of Jaguar Land Rovers joint venture. Good morning to you, chris. Congratulations on this happening. One of the british newspapers described this as a Pivotal Moment for your company this morning. Is that slightly overstiming it or is that a fair reflection of reality . I think that is an absolutely fair reflection of reality. If you look at jab war land rover, today is a great day forous. This is the first ever roduction plant to be launched for Jaguar Land Rover. To show the world this was fantastic today today. Are you a little bit disappointed when that it couldnt happen sooner . Some of your rivals have been in china longer than you. You just started the joint venture. No, were not disappointed about the timing. We just established it late in 2011. We Just Launched it in under two years. A fantastic achievement by all of the team. The headlines are for the data today. Talking about the fact that chinas economy is growing at a rate we saw back in 2009. Not exactly great growth by historical standards. Can you give us a sense of the demands that youre seeing and what your expectations are and where you see the economy going . Yes, there is lots obviously. New stories about the economy in china. For Jaguar Land Rover, this is a hugely successful market for us. Were seeing continued growth. It has been a Ground Breaking product for us and last year sold over 30,000 cars. How many can that increase if you look at, you know, the number of cars you may sell in ina over the next one to two years. Are we talking 30 extra . 50 more . We have spoke within everybody here today. What were focused on is the quality and delivering world class quality. We dont want to get in the position where were just chasing volume and trying chasements. Our focus is world class quality and the commerce really aspire to buy the car. If we can do that, well be hugely successful in china. We talk about pricing. When you look at the german operators and what they did. We saw around a 15 price decrease as a result of the impact of paris coming ufe a little bit. Is that what were doing to see . Are you going to be able to be a little bit more sensitive on the price and also if you can give us your thoughts on whether or not the trend of having very big price gaps between what you sell in china and the rest of the world, they are not that sustainable. Yes, today really is about the launch of the facility. We have shown coming off the today. You have going to have to wait just a little bit longer to understand what were doing with the pricing of the vehicle and we will talk about that in the next month or so. Ifference in vehicle could you repeat . Carry on. You were about to talk about paris. Give us the sense of the impact that is going to have. Yes. Yeah. So with regards to the and the cost to have vehicles, that is why were standing here launching our first over time we will launch more from the joint venture. We have announced by 2016, we will have three cars being manufactured here. Two land rovers and one jaguar. At the same time were building a world class aluminum facility. The future is really exciting for us right now if we speak to you in five to six years, how many new factories will you have in china . Wow, who knows . Today is about our first car really. For us, it is about celebration of our first facility. We have installed capacity here for 130,000 cars. As we move forward, well listen to our commerce. Who knows. China never ceases to amaze in terms of the speed that it can move. What about carpetry amazing. What about birmingham. What happen up in the west of the u. K. As well in term of how the workers feel there. The unions are broadly onboard with this at the moment but does this in any way detract from manufacturing cape nblet the u. K. . . Capability in the u. K. This in no way is damaging to Jaguar Land Rover in the u. K. The car that were launching been running at maximum capacity. This gives us a chance to continue to grow. In no way is this the threat to the england facilities. Congratulations. Thank you for taking the time to talk with us today. Chris bryant from Jaguar Land Rover. Lets go to some somber news. Totals c. E. O. Has passed away when the companys private plane struck a snowplow at a runway in moscow. There is an investigation going on and the Russian Committee are investigating this accident saying that the driver of the snowplow may have been drunk. There is also an investigation about the bad Road Conditions and what role this played into the accident. Course de margerie was a very charismatic character. Very respected among the industry. People are saying he was a larger than life character. We had reaction from president hollande saying we have lost a great leader to have french industry, an ambassador over the freafrpbl technology abroad. He was often making jokes with other c. E. O. S in his field. Also being very friendly. With journalists. He was nicknamed the man with the big mustache. I met him a dozen times but the last time was just a couple of weeks ago at the paris car show when he was actually making a joke about the fact that i did not interview him because he was talking about the future of electric cars which i thought was quite a surprising subject for someone who is the c. E. O. To have fourth Biggest Oil Company in the world. He was always somebody interesting to talk to, i have to say. Lets talk about his drive, though. He was a man that literally went to the four corner of the world when it came to making sure that his company was front and center in the oil industry and he was certainly a frequent visitor to russia. He was. He was a very frequent visit even visitor to russia. In fact, corg the a statement removed from the russian government website, me may have been on the list of attendees meeting with Prime Minister medvedev in moscow. They may have been the reason for his visit to russia. He was traveling very frequently. He was one of the Rare International c. E. O. S to attend the spurg international forum. St. Petersburg forum. Total has a lot of interest in russia. They own 15 of russias largest independent gas piecer. A few weeks ago, he was saying despite the sanctions, the group will continue to work on the project, this massive project to tap natural gas reserves in siberia. In july, he said that europe could not live without russian gas. Thank you so much for all of that. Well be back in just a few minutes. We are all involved in this country with and when that is with limitations, it is allowed. That was e. U. Commissioner talking yesterday about spying within limits is allowed. Well talk more about that a little bit later. Youre going to hear my conversation with her yesterday evening about online privacy. Whats happening with u. S. Tech companies here in europe. But tech a big theme running through the day post apple. Lets keep talking about technology companies. Arm expects sales to grow. Arm are pretty bullish about their outlook all to do with the sales of iphones. This is a company that designs chips for chip makers. The chip makers then put their own chip with this technology in their computers, especially smart phones. They have 95 of the smart phone market. Ne way they make money is from royals from the chip makers Companies Use their technology. Growth of the revenues is actually slowing. It is 9 for this quarter. Opposed to 13 a year ago and 15 , which is where the company says they really should be and where they are expected to be in the second half of the year. The good news for investors was they think it is going to accelerate and the reason for that is, you know, basically smart phones in the first half of the year did very poorly, particularly in the developed world because everybody already had one in the emerging markets. They got thats where you didnt have the acceleration but they went for the cheaper ones. Now you have 4 g rolled out across the world. So the idea is they expect people now are going to get the smart phone that is going to drive their sales and royalties is of course the iphone 6 part of that story. Their licenses translate into royalties. One of the best licensing numbers they ever produced quarteronquarter. Hat is future revenue. The fact that we just spent a minute talking all about smart phones. A lot of the licensing growth happens to be outside the mobile space in the internet and things. In term twolves future revenue terms of the future revenue you get. Obviously there is a big demrealings the Fourth Quarter. Everybody is going to go to the store for this iphone. All of the phone makers targeting christmas sales. Chinese new years sales as well. This is a good sign even going into next year. Talk to us a little bit about apple. We have been talking about apple with regards to arm. At the same time, they launched apple pay. Does that feed back into arm . Apple pay, that is a good question. I would have thought it does. If you think about it, tim cook has lined up for quite an interesting christmas. Everybody wants to get an iphone 6. The expectation was they would sell 38 million of them last quarter and they sold 39 million. In addition to that, they expect to do between 63 1 2 to 66. 5 billion in sales in this coming quarter which tops analyst stims. A lot of that, the iphone 6 and 6 plus because they were only for sale for eight days during the last sales period. Apple pay, this could take off. If you get your iphone and get apple pay at the same time, you make your first christmas purchases. This can only propel and there is a lot of people talking about this, the smart phone space further down the road. I pulled up i think it was mcdonalds in the states. This was i was there about a month ago. They were advertising apple pay. I could pay obviously i couldnt yet but they said go ahead ready, you can pay with apple pay. I was like what does that mean . This is going to become kind of usual for people. The fact that it comes around christmas, you a, you get the sale of the iphone and b, you introduce people to apple pay. It is a new way of paying. What did you get . Fries. Milk shake. Thank you so much for all of that. Talking arm holdings, apple and mcdonalds. Trying the fit it all in. It is early. Lets take you to whats happening in pretoria. As you can see, the judge reading out the sentencing. We have had various comments from her over the last sort of halfhour. Well continue to monitor events when get the sentencing, we will clearly break and bring it to you and take you to pretoria and show you whats happening there. Did not suffer from the disability and or that ability of the accused in the present case. E slow benefits of the disability. 25 minutes past the hour. Welcome back. Youre watching the pulse. What is going on in the markets this morning . Thanks. We opened a little bit lower this morning. We have higher now. Ftse 100 up 1 3 of 1 . Up 1 . In frankfurt chinese g. D. P. Do i look at that as beat . Better than the 7. 2 median estimate or do i look at that as actually the worst quarter of growth in china since 2009 . What are the analysts saying . They are suggesting the easing efforts have succeeded in china to stable id growth and lift g. D. P. Growth in the Fourth Quarter we might need a little bit more stimulus from the chinese authorities. Big move in italian 10 year yesterday. Up by 10 basis points. Yields a little bit lower. Were a little bit light on the data side of things both here and europe and in the u. S. Sterling one pound buying you 1. 6156. Tomorrow we get bank of england minuteses. Since the last meeting, unemployment has slipped to the 6 mark. Inflation has slipped to 1. 2 . I think that is going to be very, very difficult to way up. The labor market side of things and the inflation side of hings. Tomorrow, the next 24 hours, they are pretty big. Thank you so much. Lets bring you live pictures from south africa. Oscar pistorius will soon use his sentence. The judge said the prison can deal with his special needs and said the sentencing request from the defense is not appropriate. He discharged a firearm thinking that the person welcome back to the pulse live from bloombergs European Headquarters here in london. Im francine lacqua. Im guy johnson. These are the Bloomberg Top headlines. Oscar pistorius will soon learn his sentence at the high court in pretoria. The judge says that prison can deal with his special needs and she said the sentencing request from the defense is not appropriate. That may mean house arrest is off the table. Export demands grew. Apple earnings beat analyst estimates for the quarter. Sales came in at over 42 billion as the customer sold more than 39 million iphones in a threemonth period. Sales of the ipad disappointed falling 10 . Ok. Lets keep talking tech. If you have ever tried the trace your Family History on the web, it can be a tough task. Today youll be able to do it using your d. N. A. Elliott gotkine has more. Explain. What is going on here . Thanks, guy. Rather than explaining myself, i have the c. E. O. And founder of my heritage to tell us all about it. Were announcing right now this second live on television. Tell me more about it. What is going on there . It is a very exciting strategic collaboration with Product Innovation with my heritage, discovering Family History, preserving it and sharing it. Together, the combination of d. N. A. And documented ancestry is extremely powerful. You can say it is the next evolution in Family History. You can tell people if you know, youre related to somebody or a particular person but they cant tell them specifically how they are related and thats where your Technology Comes in. D. N. A. Can reveal many things. Among them your ethnic origin or geographical origins and find unknown relatives of yours. D. N. A. Cannot tell you precisely how you are related. This is where it comes in with your family trees and Historical Records and we have technology for making discoveries. Together the user has the best chances of learning more about their Family History. What is the latest tieup that you have made . I know you did with a deal backed by the Mormon Church and recently with university libraries. Is that right . We have recently launched a new product, my Heritage Library edition. It is specialized for educational facilities. Now we can make available to tens of thousands of libraries across the world, all the power of my heritage for free for the patrons of those institutions. Should we expect further deals like this . There are many, many exciting deals in the pipeline. Regarding family search, the Mormon Church said they are planning to immediately make available our Library Edition in their more than 4,700 physical centers of Family History around the world. This gives us tremendous exposure. I think shortly i