20/01/2017 Asia Business Report


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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repealed.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.


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