09/03/2016 World Business Report

Now for the latest financial news with Sally.

A big day in the race to be US president

as voters cast their ballots in key states - we assess the economic

Shipping of goods from soybeans to cement is a barometer

of world economic health - so is falling cargo traffic for almost

As you've hearing its been another big night in the US

Rico Hizon will join us and bring us up-to-date on how the National

People's Congress in China is progressing. Let's start with the

news you've just heard about. As you've hearing

its been another big night in the US with several key states voting

for presidential candidates. For the Republicans

the momentum behind Donald Trump has been given a serious boost

as he swept to victory in Mississippi and the key industrial

state of Michigan which has suffered an economic downturn that's scarred

big cities such as Detroit. Democratic front-runner

Hillary Clinton won her party's In this programme,

we're going to focus on If Trump wins in November he says he

will call China a currency manipulator. He claims that the US

has suffered from a flood of cheap Chinese imports and the way to stop

it is by increasing import tariffs on Chinese goods. This protectionist

policy would aim to stop US manufacturing moving abroad and

provide more jobs for American people. History tells us that

protectionism doesn't always work with many saying the great

depression was caused by this economic policy. Trump plans to be

tough on immigration. He plans to send home 11 million undocumented

immigrants. The move will keep more jobs for so-called real Americans.

Others say this could trigger economic slowdown as menial jobs are

left undone. Cutting taxes and streamlining the tax system makes

Trump's third big policy. If a US citizen earns less than $25,000 they

would have to pay no income tax at all. Trump would cut corporate

income tax to 15%. How would he pay for these cuts? He says economic

growth the closing of corporate tax loopholes would find them but

critics say this policy would see Federal revenues fall $9.5 trillion

in the first decade of loan. -- alone.

Tom Packer is Fellow at the Institute of the Americas,

It has been quite a night. And we are focusing on Donald Trump. Give

us your take on what he stands for, what we know on his ideas for the

economy. One thing that is important to emphasise is Donald Trump is new

to electoral politics and has changed his stand loads of times

already. I think it is a set of sketchy element in which he changes

quite a lot. His rhetoric when he is talking is different from policies

on his website. He has talked about raising tax on the rich but he is

cutting taxes on just about everyone. The biggest tax cuts for

the rich as well to be cut. He has talked about provision of healthcare

but his plan is different from that. He has talked up protectionism. When

you look at the details of the policy he is claiming it is not

different from what Mr Rob Lee ran on so there is a high degree of

unpredictability which is the most predictable thing about him. If he

were to become the nominee for the Republican Party and there is still

a long way to go, and Ted Cruz is not out of the race by any means

yet. We have the convention in summer. Let's say he did get the

nomination, would he then presumably bring a lot more clarity in terms of

what he is economic ideas are, getting expert opinion. To match

what he is saying. You presume that would be the plan. There will be an

element of that. Reaching out to other parts of the Republican Party

who have been disturbed white what he has been saying. -- by what. In

the case of Mr Trump he is one of the most undisciplined candidates

one has seen, so there is a huge possibility that we get a moderate

version of what we are already getting. I could still see lots of

U-turns while the campaign is going on. In terms of the Democrats,

Bernie Sanders does have some ground overnight but for Hillary Clinton

she still seems to be ahead of the game. Overwhelmingly. And therefore

what do we know about her ideas? She is the opposite of Donald Trump. She

has been in the game for a long time and has worked out lots of ideas.

Whether they are correct is a different matter. Her proposals are

to increase taxes, a lot of new regulations or Wall Street and the

environment and to expand a Obamacare somewhat. Having said that

it is unlikely at the moment, although Mr Trump might change

things that the Democrats might control Congress, Soho policies are

likely to be dead on arrival. Where they are likely to be important is

where the executive branch already has control -- so her policies. She

will likely have success changing regulation than the tax code.

Interesting and thank you for your time. I appreciate your analysis

this morning. And of course there is that on the, so do have a look.

And we'll bring the economic goals of Hilary Clinton

What does the amount of soybeans or coal or cement

travelling round the world tell us about the global economy?

It's actually one of the best indicators

The index for Dry bulk shipping, as its known, has fallen

In China, the National People's Congress is under way grappling

We've heard from it's leaders already

about lower growth forecasts, well now China's Ministry of Finance

It is most ECU, fill us in. -- it is nice to see you. Debt levels at

financial institutions in China are ballooning and according to recent

information the ratio of household borrowing versus GDP surged to more

than 200% at the end of last year. Non-performing loans rose 7% in the

fourth quarter of 2015. The Beijing leadership is trying to allay these

fears by saying the bad loans from banks are rising but rising mildly.

And also waiting in, the finance minister said the non-performing

loans will rise under the conditions of structural reform, but stresses

the problem prevails in many other countries after the global financial

crisis eight years ago. The increase in the debt relative of GDP could

pressure the ratings agency like Moody is and the SNP to downgrade

and the credit rating. We also have Xi Jinping calling for the supply

side structural reform, agriculture modernisation and grain security.

With these remarks top brass in Beijing are indeed trying to dispel

efforts of a hard landing and Beijing's efforts to stabilise

market sentiment. Thank you so much and it is good to see you.

In other news: One of Brazil's most senior businessmen was sentenced to

more than 19 years in prison for his involvement in a massive

Marcelo Odebrecht, the head of Grupo Odebrecht,

Latin America's top construction firm, was found guilty of money

laundering, corruption and taking part in a criminal association.

European prosecutors are tightened the screw on VW in the wake

France opened a formal probe into "aggravated fraud" at Europe's

While in Germany, the number of VW employees under

VW's boss warned the firm would suffer

"substantial and painful" damage to its reputation and finances.

France faces a wave of protests on Wednesday against labour

reforms, that aim to change working hours and rules about days off.

You can see markets are down in Japan over half a percent and safety

is the watchword right now. In the US it is... No, we will scroll on,

the Dow Jones was down 0.6%. The SNP 500 down over a percent. I will see

you soon.