20/01/2017 Asia Business Report

Now on BBC News all the latest business news live from Singapore.

As Donald Trump gets ready to move into the White House we look at his

plans to improve the US economy. And the latest growth figures in China

will be scrutinised under worries of a potential trade war. Hello and

welcome to Asia Business Report. The big day is finally here. Dan Norton

up's inauguration and the many he is a controversial person to move into

the White House and there is a lot of uncertainty as to how presidency

will impact the economy. This was the moment democrats hoped

would put that in check after financial crisis that led to the

worst US recession since the Great Depression, President Obama and the

American people were eager to see regulations that would put limits on

bad behaviour and prevent US taxpayers from ever having to bail

out the banks again. But Republicans have been attacking dog Frank since

its inception saying it has gone too far. Now they are in power, scaling

back some of those rules is finally in reach. Bank lending has been

impeded. We have practically zero interest rate yet Gross domestic

investment is negative or barely rising. GDP growth has not gone

above 2%. Part of that reason is the overregulation. Although the

incoming Trump administration says it will dismantle it, what exactly

that will look like is a big unknown but the hope of what is to come has

banking stocks euphoric. Supporters worry what could happen if they are

repealed. A signature part was created by Paul. The rock provisions

that hopefully can take care of things without disrupting the whole

market. To stop the next crisis. The document is often criticised as an

overly complicated one size fits all solution. With Donald Trump in his

way to office, those regulations may be on the way out. The question then

is whether or not it leaves the US exposed to yet another financial

crisis. Rather unusually, US stocks fell

ahead of the swearing in the remaining of Donald Trump. The

longest losing streak since the election falling for a fifth

straight day which is ironic when we saw Mr Trump's win in November had

triggered a rally in US stocks. We were looking at the key 20,000

level. What can we expect then in the next four years? Spoke to

economists. The economy is in fine shape, unemployment is that only

4.7% and as Janet Yellen said yesterday that is close to full

employment and what Trump is planning to do is cut taxes and

raise spending on infrastructure in particular and if he does that, he

will generate quite a lot of inflation and I think bond yields

will rise sharply as a result. Going back to the Labour issue, jobs

coming back to the US - we have had a lot of the rhetoric, particularly

with the auto company changing their outlook and strategy in a way

because of Trump's push towards manufacturing in the US or else you

face import tariffs. Is this all due to Trump? The US will impose a

border tax adjustment and, in effect, will start subsidising

exporters by exempting them from proper tax while ensuring that all

important expenses will face attacks. This is supposed to be the

equivalent of a VAT. It is probably not compliant but if it does go

through it will have a chilling effect on global trade it was the

largest economy will be moving towards a protection is a fact. The

owner of the New York jets has been asked to join the Republican Party

Cabinet. He has been named as ambassador. Paramount pictures is

getting a $1 billion investment in cash from the Chinese firms.

Paramount has been struggling to secure money. The three-year deal

with the Shanghai group gives it a foot in the second largest box

office market. China will release its economic data. Vigurs attempt to

come in line with the official target so we are not really

expecting any huge surprises. -- data is expected to. Earlier I asked

an economist in Hong Kong about it. There are always question marks

about the official markets. From an investing point of view, we do not

only focus on one data series, such as GDP. In the past, government

officials were rewarded in terms of our fast province could grow and

with the anticorruption campaign we saw a different shift in terms of

how people are rewarded. Different messages coming out from Beijing and

we will see the targeted GDP number come down gradually. You hurt me

talking about Donald Trump as the next president and concerns that

that tensions will mount with China with his protectionist style. He

implements Savea tariffs. The global trade environment is quite fragile

so the World Trade Organisation estimated last year that trade only

group 1.7% which is slower than GDP growth. If can't implement harsh

penalties towards Asian companies, the knock-on effect will be towards

the US consumer because the tariffs will be passed on from the company

to the consumer and I doubt that is what he will want to see. The world

economic foreign is often criticised as being a talking shop for the

global elite. Inequality and the backlash against globalisation have

the sheer taken front stage. Our companies listening? Capitalism is

the very lifeblood of the World Economic Forum in Davos. People who

come here are very committed to the idea that we trade is the basis of

future asperity so how are they responding to the message from some

voters who feel that that prosperity has not been evenly spread. Let's

start with the US and Donald Trump. The fact that he won the election is

not something that surprised or not surprise me but the fact that people

are unsettled, not happy, wanting change, that is a very clear. But it

is not just American voices expressing concern about the

consequences of free trade. I personally think we cannot stop

globalisation. There is no going back, it is in their and it will

continue but I think we could definitely do it in a more conscious

way, in a more inclusive manner and our leaders should foster more

inclusive than us and try to find the middle ground. What has become

clear in the last few days in doubles is that companies

desperately want to hang on to the benefits of globalisation but at the

same time are increasingly realising that governments have a

responsibility towards those who risk losing out. What is not yet

clear is how that responsibility can take shape. A quick look at the

markets before we go. The Nick a is flat at the moment. -- nikkei. We

have the Chinese GDP numbers are out in just under 20 minutes and a lot

of caution setting out even so 6.7% is the expected figure. Thank you

for watching.