20/01/2017 Asia Business Report


20/01/2017

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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

:00:00.:00:15.

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

:00:16.:00:23.

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

:00:24.:00:31.

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

:00:32.:00:38.

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

:00:39.:00:46.

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

:00:47.:00:51.

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

:00:52.:00:57.

will impact the economy. This was the moment democrats hoped

:00:58.:01:11.

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

:01:12.:01:16.

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

:01:17.:01:21.

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

:01:22.:01:24.

bad behaviour and prevent US taxpayers from ever having to bail

:01:25.:01:29.

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

:01:30.:01:36.

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

:01:37.:01:41.

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

:01:42.:01:46.

impeded. We have practically zero interest rate yet Gross domestic

:01:47.:01:51.

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

:01:52.:01:59.

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

:02:00.:02:06.

incoming Trump administration says it will dismantle it, what exactly

:02:07.:02:11.

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

:02:12.:02:20.

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

:02:21.:02:32.

repealed.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

:02:33.:02:44.

that hopefully can take care of things without disrupting the whole

:02:45.:02:55.

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

:02:56.:03:02.

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

:03:03.:03:07.

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

:03:08.:03:12.

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

:03:13.:03:13.

crisis. Rather unusually, US stocks fell

:03:14.:03:24.

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

:03:25.:03:28.

longest losing streak since the election falling for a fifth

:03:29.:03:34.

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

:03:35.:03:42.

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

:03:43.:03:51.

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

:03:52.:04:03.

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

:04:04.:04:09.

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

:04:10.:04:13.

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

:04:14.:04:19.

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

:04:20.:04:24.

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

:04:25.:04:29.

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

:04:30.:04:34.

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

:04:35.:04:39.

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

:04:40.:04:46.

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

:04:47.:04:54.

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

:04:55.:05:01.

border tax adjustment and, in effect, will start subsidising

:05:02.:05:07.

exporters by exempting them from proper tax while ensuring that all

:05:08.:05:12.

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

:05:13.:05:21.

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

:05:22.:05:26.

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

:05:27.:05:31.

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

:05:32.:05:42.

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

:05:43.:05:49.

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

:05:50.:05:53.

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

:05:54.:05:58.

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

:05:59.:06:07.

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

:06:08.:06:14.

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

:06:15.:06:19.

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

:06:20.:06:27.

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

:06:28.:06:36.

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

:06:37.:06:39.

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

:06:40.:06:46.

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

:06:47.:06:51.

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

:06:52.:06:55.

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

:06:56.:07:00.

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

:07:01.:07:06.

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

:07:07.:07:15.

talking about Donald Trump as the next president and concerns that

:07:16.:07:21.

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

:07:22.:07:29.

implements Savea tariffs. The global trade environment is quite fragile

:07:30.:07:33.

so the World Trade Organisation estimated last year that trade only

:07:34.:07:41.

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

:07:42.:07:47.

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

:07:48.:07:52.

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

:07:53.:07:56.

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

:07:57.:08:02.

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

:08:03.:08:07.

global elite. Inequality and the backlash against globalisation have

:08:08.:08:15.

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

:08:16.:08:24.

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

:08:25.:08:29.

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

:08:30.:08:35.

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

:08:36.:08:41.

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

:08:42.:08:46.

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

:08:47.:08:50.

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

:08:51.:08:56.

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

:08:57.:09:02.

is not just American voices expressing concern about the

:09:03.:09:06.

consequences of free trade. I personally think we cannot stop

:09:07.:09:10.

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

:09:11.:09:14.

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

:09:15.:09:20.

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

:09:21.:09:24.

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

:09:25.:09:28.

clear in the last few days in doubles is that companies

:09:29.:09:32.

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

:09:33.:09:39.

same time are increasingly realising that governments have a

:09:40.:09:43.

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

:09:44.:09:47.

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

:09:48.:09:57.

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

:09:58.:10:17.

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

:10:18.:10:24.

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

:10:25.:10:28.

for watching.

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