01/03/2017 World Business Report


01/03/2017

Similar Content

Browse content similar to 01/03/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Trump lays out his vision but Wall Street is unimpressed

:00:19.:00:21.

with detail on tax and economic reform scarce.

:00:22.:00:24.

Virtual reality versus augmented reality.

:00:25.:00:25.

We make sense of this latest technology that promises

:00:26.:00:27.

to revolutionise your day to day experience.

:00:28.:00:40.

Australia managed to avoid recession in 2016.

:00:41.:01:02.

As you've been hearing, President Trump has addressed

:01:03.:01:06.

a joint session of congress for the first time since taking office.

:01:07.:01:09.

In a highly anticipated speech, he spoke of "restarting the engine

:01:10.:01:12.

The President reiterated his intention to slash

:01:13.:01:15.

corporation tax in the US and provide tax breaks

:01:16.:01:18.

At the same time, he announced he'll be asking

:01:19.:01:21.

Congress to approve legislation which will result in $1 trillion

:01:22.:01:24.

worth of investment in US infrastructure.

:01:25.:01:26.

He also called for what he describes as one of the largest increases

:01:27.:01:29.

in national defence spending in American history.

:01:30.:01:31.

Mr Trump pointed to the country's $800 billion

:01:32.:01:34.

Though figures from the Census Bureau suggest

:01:35.:01:38.

this figure reduces to about $500 billion

:01:39.:01:40.

when trade in services is factored in.

:01:41.:01:44.

Here's what the President had to say about his plans to transform

:01:45.:01:48.

Right now American companies are taxed at one of the highest rates

:01:49.:02:01.

anywhere in the world. My economic team is developing historic tax

:02:02.:02:05.

reform that will reduce the tax rate on our companies so they can compete

:02:06.:02:10.

and thrive anywhere and with anyone. APPLAUSE

:02:11.:02:18.

It will be a big, big cut. At the same time, we will provide

:02:19.:02:25.

massive tax relief for the middle-class. We must create a level

:02:26.:02:30.

playing field for American companies and our workers. We have to do it.

:02:31.:02:34.

APPLAUSE In the run up to this speech hopes

:02:35.:02:35.

were high there would be more detail on the new administrations tax

:02:36.:02:39.

and economic reform plans but the speech offered few

:02:40.:02:41.

new proposals or detail on how he plans to pay for things such

:02:42.:02:44.

as the boost to defence spending. Samira Hussain joins

:02:45.:02:52.

us from New York. Nice to see you, Samira.

:02:53.:03:03.

Give us your sense of how markets may react to all of this in the US.

:03:04.:03:08.

They did desperately want detail, didn't they? Absolutely, Sally,

:03:09.:03:14.

you're right on the money when you said investors were really craving

:03:15.:03:18.

details. They wanted to know specifically what Mr Trump and what

:03:19.:03:21.

the Trump administration was going to do when it comes to specifics

:03:22.:03:26.

like tax reform or infrastructure spending or that defence spending,

:03:27.:03:31.

where it exactly is he going to get the money? And none of those details

:03:32.:03:36.

really are merged in the speech, although there was more detail in

:03:37.:03:39.

terms of his vision for the repeal of Obamacare. In other avenues we

:03:40.:03:45.

didn't see that kind of detail. So broad strokes, the themes that were

:03:46.:03:49.

raised in the speech were themes that we have heard about already,

:03:50.:03:54.

about bringing back American jobs, bringing back dying industries and

:03:55.:03:59.

really trying to help the American middle-class. But again, those

:04:00.:04:04.

specifics, those details of how exactly he is going to make those

:04:05.:04:09.

reality, we didn't hear any of that really. Do you think Wall Street

:04:10.:04:13.

will lose its patients, the waiting game as it were. American markets

:04:14.:04:17.

have led a global rally, we've been talking about it daily, haven't we,

:04:18.:04:24.

the closing record high the Dow and SNP. It can't go on for ever. A few

:04:25.:04:30.

weeks ago we talked about how the Dow hit the 20,000 mark. Sally,

:04:31.:04:36.

we're already 200 points away from hitting 21,000. Markets are really

:04:37.:04:41.

fickle and they will probably find something else to become infused

:04:42.:04:45.

about. In terms of perhaps are they going to get inpatient with waiting?

:04:46.:04:51.

-- enthused. You having courage in signs like the president wanting to

:04:52.:04:56.

spend $1 trillion on infrastructure -- in courage have encouraging. That

:04:57.:05:01.

will be a big boost to the key component companies of the Dow. --

:05:02.:05:07.

have in courage and. There's a sense of some of that may come to fruition

:05:08.:05:12.

but what it will look like isn't clear. Thanks for staying up with

:05:13.:05:19.

us, we appreciate it. Let's take a sense of the international elements

:05:20.:05:20.

of this. US markets have been riding a wave

:05:21.:05:28.

ahead of Donald Trump's Beach. What will the reaction be like when the

:05:29.:05:33.

trading day begins later in the US? Let's get a sense of how we're going

:05:34.:05:38.

to go with Sharanjit Leyl in Singapore. The reaction is muted

:05:39.:05:46.

because there's a lack of detail it comes to trade. That's exactly it,

:05:47.:05:52.

you summed it up, a fairly muted response to the speech when it comes

:05:53.:06:01.

to Asian investors, that's after a day of nervousness when it comes to

:06:02.:06:05.

the detail on infrastructure spending and tax reforms and the US

:06:06.:06:10.

stock futures, they fell ahead of the speech. The futures are pointing

:06:11.:06:17.

towards a fall after his speech, the President pledging everything he

:06:18.:06:22.

promised to overhaul, including immigration and jobs and wages for

:06:23.:06:26.

Americans, but he didn't go into detail when it came to tax relief

:06:27.:06:30.

for the middle-class and tax cuts for companies. Were only really

:06:31.:06:34.

seeing the likes of the McKay in Japan making games because of the

:06:35.:06:40.

strong US dollar -- we're only seeing the likes of the Nikkei in

:06:41.:06:50.

Japan making games. There's relief over the president's toned down

:06:51.:06:55.

rhetoric over protectionism when talking about China and Mexico using

:06:56.:06:59.

concerns over trade wars, but no great gains so far. We will leave it

:07:00.:07:06.

there because time is tight, so much to squeeze in but thank you.

:07:07.:07:08.

Do you know the difference between VR and AR?

:07:09.:07:11.

Silicon Valley has high hopes for both of these emerging

:07:12.:07:14.

technologies, but the world we live in could be very different if one

:07:15.:07:18.

360-degree computer generated environment.

:07:19.:07:29.

Game developers and film producers have been quick to adopt

:07:30.:07:31.

the technology, there's been a lot of hype,

:07:32.:07:33.

but it is not mainstream yet and could be some time partly

:07:34.:07:37.

because of the cumbersome headset you have to wear to engage in VR.

:07:38.:07:54.

or AR takes the real-world view from your smartphone camera then

:07:55.:07:58.

superimposes additional images on top.

:07:59.:07:59.

It's used to provide more information about things

:08:00.:08:02.

you encounter in day-to-day life and AR was also the technology

:08:03.:08:05.

behind the smartphone game, Pokemon Go.

:08:06.:08:06.

Nintendo's smash-hit saw millions of people take to the streets

:08:07.:08:09.

in search of virtual monsters last year.

:08:10.:08:11.

Our technology correspondent, Rory Cellan Jones, has been speaking

:08:12.:08:13.

Last summer and extraordinary craze swept around the world, we saw lots

:08:14.:08:23.

of people out with their mobile phones hunting for Pokemon. It's

:08:24.:08:28.

fair to say the enthusiastic in for Pokemon Go has faded a little since

:08:29.:08:32.

then, but there are still Pokemon to be found out and about here at the

:08:33.:08:37.

Barcelona world mobile Congress. I've also found the inventor of the

:08:38.:08:43.

game, a man who's changed our views of augmented reality, John Hankey.

:08:44.:08:47.

Did you have any concept of how big the game was going to be when it

:08:48.:08:51.

launched? I wish I could have predicted that. Obviously not, it

:08:52.:08:57.

was a huge surprise to us. We spent a huge amount of time looking at the

:08:58.:09:02.

dashboards form our servers which were going haywire looking at the

:09:03.:09:06.

traffic, orders of magnitude beyond what we were expecting, it was tough

:09:07.:09:13.

to keep it operating. In San Francisco 9000 people poured down

:09:14.:09:17.

spontaneously. It was very surreal. Hasn't it faded quite a lot now?

:09:18.:09:22.

Something like that is going to fade, it exploded on social media,

:09:23.:09:27.

it had a life of its own and now it's become a very successful

:09:28.:09:32.

product but not at that level of frenzy, it's one of the most used

:09:33.:09:39.

mobile apps out of there still. Are you betting augmented reality is

:09:40.:09:44.

going to be a more lucrative business long-term than virtual

:09:45.:09:47.

reality? Yeah, I absolutely believe that. AR is an extension of the way

:09:48.:09:54.

we use our cellphones day to day, the art is a more cinematic

:09:55.:09:58.

experience, cutting yourself off from the world, it's an

:09:59.:10:02.

entertainment experience but it is a session based experience lasting for

:10:03.:10:06.

a period of time. AR is something you can have with you all day long

:10:07.:10:10.

and makes many things you do on your mobile phone today better, more

:10:11.:10:15.

immersive and convenient. Finally, I've got to ask, are you going to

:10:16.:10:19.

wander around and still play the game spotting Pokemon? I did get one

:10:20.:10:24.

earlier today but last Sunday before I flew over I was with my son, he's

:10:25.:10:29.

ten, we were at a local park, it was a great day and we were catching

:10:30.:10:34.

Pokemon together. It's a great thing to do as a family.

:10:35.:10:36.

His bold, he's the man behind Pokemon Go! -- his fault. The

:10:37.:10:43.

Australian economy grew by a quarter in the last quarter of last year and

:10:44.:10:49.

that's good news because it did contract in the previous quarter.

:10:50.:10:52.

See you in a moment for the newspaper review.

:10:53.:10:54.

Download Subtitles

SRT

ASS