11/01/2017 World Business Report


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11/01/2017

The latest business news with informed analysis from the world's financial centres.


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As Donald Trump gets ever closer to the White House,

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will he heed calls to step down from his vast business empire once

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and put his assets in a blind trust?

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And where in the world will there be growth in 2017?

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The World Bank says Brazil and Russia will prosper

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despite the shadow of uncertainty from the United States.

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VW is on the verge of parking the emissions scandal in the United

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States. Details in just a moment. In the last few hours we've heard

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President Obama's farewell speech with just over a week left in charge

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of the world's biggest economy. Later today his successor

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Donald Trump will give a long-awaited press conference,

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his first since winning And there are still questions

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about how he will separate himself In his latest disclosure,

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the President-elect revealed These have had dealings

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in least 25 countries in Asia, Europe, Africa,

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South America and North America. Democratic Party politicians

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are amongst those to express concerns this could influence his

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policies towards some He derives much of his income

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from developing real estate and operating

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golf courses in the US, Britain, Ireland and

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the United Arab Emirates. But he also makes money

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licensing the Trump name to property developers

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around the world. Some of those projects have been

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engulfed in controversy. However, it should be

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noted that as president he is legally allowed to continue

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to run his businesses. But previous presidents have

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put their businesses into blind trusts to prevent

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conflict of interests I'm outside 40 Wall St in front of a

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building that is managed by the Trump Organisation, effectively

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making Mr Trump the landlord. Trouble is, several of the tenants

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inside this building are being investigated by government

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regulators, and if they're found guilty of any wrongdoing, they could

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stop operating, which means they would no longer be paying rent to Mr

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Trump. But as president, Mr Trump could push for more lenient

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sentences or make the charges go away, effectively ensuring he

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continues to make money. If we make our way further uptown, we find

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ourselves at Deutsche Bank, one of Mr Trump's biggest lenders. The

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German bank continued to work with him even as several of his

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businesses went bankrupt. Deutsche Bank is also facing billions of

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dollars in fines from the US government, stemming from the

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financial crisis. Regulators could rule with a softer touch given the

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bank's history with the President-elect. We need to make one

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more stop on our New York tour. I've shown you two examples of potential

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conflicts but move over just a few blocks and you end up at Ground Zero

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for the Trump business empire, with the potential conflicts of interest

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multiplied many times over. The company's massive global Holdings

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and international ties mean opportunities for corruption go far

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beyond New York City. Foreign countries could question how their

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treatment of the President-elect's business interests will impact

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diplomatic relations. This is truly unprecedented territory for an

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American President. Democrats are proposing legislation that would

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force Mr Trump and his family to sell any assets that could pose any

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conflicts. But without Republican support it is unlikely to pass.

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Samira Hussain, BBC News, New York. With me is Allyson Stewart-Allen,

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Chief Executive of International Marketing Partners who help

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companies develop in overseas markets and in the US

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in particular. Nice to see you. We've outlined some

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of the issues, it is what everyone wants to know in the press

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conference, what he will do about his business empire. What do you

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think he will say? I think he's going to be a bit vague because he

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was asked in the campaign about his tax returns and there wasn't a

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concrete answer given. Legally he can continue to run his businesses,

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but perception is everything and when you are trying to engender the

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trust of the American people from day one, as a new president, you

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probably want to go into that office not on the back foot but from a

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position of strength with a mandate that people say... You have our

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mandate and our vote, we trust you and trust is the key word here. He's

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going to have to do something more than just a token gesture. It's not

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just about him but about his daughter and his son-in-law and the

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various family members who have been involved in running his businesses

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with him for years. They would also have to step back? If you want to

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be... If you want to get the perception that you're doing things

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by the book and ethically then a conflict of interest means that you

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are... You don't have your own family members in the next. By

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having your family members in the mix your obviously compromised, you

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have an interest. -- members in the mix. It's about not having an

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interest fundamentally. What are you advising companies that approach you

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about dealing with the US from here on in? Of course it's difficult to

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know what a Trump presidency will be like when it comes to trade and

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protectionism, all those issues. Absolutely. In the case of my

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clients, I'm recommending it is business as usual until we know

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whether there will be import tariffs, what taxation regime we are

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looking at once he's in. The ambiguity is high and therefore

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companies can't sit and wait. They still need to go for the

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opportunities that the US afford them and during this time that we

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are still trying to figure out where he's coming from, used to have to go

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after and build your business in the country, so it shouldn't put people

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off or stop them. We will watch this space and I will talk to you about

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it in the future. Thank you for coming in this morning.

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So that's what's ahead for Donald Trump but what about the rest

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The World Bank is predicting 2017 is going to be a difficult year

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for achieving one of its main aims of cutting extreme poverty.

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But it expects the global economy to grow by two point 7% mainly

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thanks to improvements in emerging markets such as Brazil and Russia.

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But what about the world's two biggest economies,

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where the new president's policies remain unclear.

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We know one thing, it could be one way or another, some kind of tax

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reduction on the corporate income side and personal income side as

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well. If we just simply focus on those tax cuts, that will translate

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into high growth in the United States as well as higher growth in

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the global economy. Having said that there are many caveats, China is

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going to continue its slowdown, we expect growth to be around 6.5%.

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Authorities have done a remarkable job taking this economy, growing at

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De double-digit rates to the rates we see now.

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Let's cross to our Asia business correspondent Karishma Vaswani.

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Tell us more about the World Bank report. As you were saying and as we

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heard from the World Bank a few minutes ago, the key focus in this

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part of the world is China, the second largest economy and the World

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Bank says it will make that gradual slowdown to 6.5% this year, keeping

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in line with the broad estimates we have seen from the Chinese

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government. The government expects the economy to slow down to around

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6.7% this year. The King and the rest of Asia, the World Bank says

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emerging economies will do better than last year, pointing to above 4%

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for the region excluding China. -- looking at. That's better than what

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we saw in 2016. That's largely on the back of commodity prices, we

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seen a pickup there over the last few months. That is helping emerging

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market economies like Indonesia and Malaysia. Thanks very much indeed,

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Karishma Vaswani, in our bureau in Singapore. That is it from WBR.

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Prosecutors in the US have charged three UK based former currency

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traders with trying to rig foreign exchange rates, they worked at

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Morgan, Citigroup and Barclays. You can see more on that online and you

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can read about Volkswagen's advisory board said to me today to sign of an

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agreement with the US Department of Justice and customs. As soon as we

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get news on that we will update you. Thanks for watching and I will see

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you in a moment to review the press.

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