20/07/2016

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:00:00. > :00:00.It's the third time in two years that WhatsApp has been threatened.

:00:00. > :00:00.Those are the latest headlines from BBC World News.

:00:00. > :00:15.with Sally and World Business Report.

:00:16. > :00:21.It is official, Donald Trump is the Republican nominee

:00:22. > :00:25.we take a look at his vision for the world's biggest economy

:00:26. > :00:28.and how it differs to that of Hilary Clinton.

:00:29. > :00:32.Growth is surging at Microsoft thanks to its cloud computing

:00:33. > :00:41.business as the tech giant takes on Amazon and Google.

:00:42. > :00:49.Also in the programme we'll have the latest in fight to access

:00:50. > :00:58.has been formally nominated as the Republican candidate

:00:59. > :01:04.Next week Hillary Clinton is due receive the formal stamp of approval

:01:05. > :01:14.So what are their visions for world's biggest economy?

:01:15. > :01:19.Both hold vastly different views over tax

:01:20. > :01:23.While Hillary Clinton believes the richest people in society

:01:24. > :01:25.should pay more tax, Donald Trump is staunchly opposed,

:01:26. > :01:28.saying he favours slashing the tax bills for the highest earners

:01:29. > :01:34.On the minimum wage, while both camps are in favour

:01:35. > :01:36.of reducing the tax burden on the underprivileged,

:01:37. > :01:46.raising the minimum wage to $15 per hour.

:01:47. > :01:48.Trump has previously said he's against any changes,

:01:49. > :01:49.though more recently he's softened his language,

:01:50. > :01:52.meaning there could be a rise of the federal minimum wage

:01:53. > :01:59.from $7.25 an hour if he's voted into power.

:02:00. > :02:00.Despite their differences, both candidates

:02:01. > :02:03.are united in their opposition of the TPP trade deal,

:02:04. > :02:12.which involves 12 Pacific rim countries.

:02:13. > :02:14.Trump has already made his views on free-trade very clear.

:02:15. > :02:17.He's vowed to impose significant tariffs on goods imported

:02:18. > :02:27.With me is Jacob Parakilas, US and the Americas Programme

:02:28. > :02:37.Thanks for coming in, good to see you. We have an outline of what we

:02:38. > :02:41.know about the candidates in terms of economic policy and their views

:02:42. > :02:47.on various things, what more can you tell us? The thing to remember with

:02:48. > :02:51.Hillary Clinton is she is proposing a StepChange, a gradual evolution of

:02:52. > :02:56.the policies we've seen under Obama for the last seven or eight years.

:02:57. > :03:00.She would refine rather than replace Obamacare, increased subsidies for

:03:01. > :03:04.college education, increased subsidies for small business and

:03:05. > :03:08.fund a lot of this with a step increase in taxes for the highest

:03:09. > :03:13.earners and closing loopholes. Trump's policies have been more

:03:14. > :03:16.difficult to pin down, he has less policies the Civics and has turned

:03:17. > :03:19.around to say and one point he wanted to lower the minimum range

:03:20. > :03:24.and other times he has said he wanted to arrange it -- specifics.

:03:25. > :03:29.Other times he has said he wanted a wealth tax, which would be against

:03:30. > :03:33.Republican orthodoxy, he has come down on a taxcutting, reducing the

:03:34. > :03:37.size of government platform stance, more in-line with the Republican

:03:38. > :03:41.Party over the last 30 or 40 years. Now he has the nomination will he

:03:42. > :03:45.have to be more detailed with his plans for the economy? And to what

:03:46. > :03:50.extent is the economy on the minds the voters? Normally he would and

:03:51. > :03:55.that would be a standard action for someone in his position, but he is

:03:56. > :04:00.ignoring a lot of the standards during the nomination. Every nominee

:04:01. > :04:03.apart from Trump in 1976 has released their tax returns, he has

:04:04. > :04:08.refused to and nobody seriously believes he will at this point. It's

:04:09. > :04:12.hard to say if he will have more information for us. One of the other

:04:13. > :04:17.problems is we don't know who will be advising him, Clinton has reams

:04:18. > :04:21.of advisers, policy groups on lots of issues. Trump quite openly says

:04:22. > :04:27.he will rely on his own counsel. It's not clear who would be advising

:04:28. > :04:31.him. In terms of people watching outside the United States and those

:04:32. > :04:34.concerned about the effect of the new president on the US economy,

:04:35. > :04:40.therefore the global economy, to what extent is the person that does

:04:41. > :04:46.get the job given the freedom to make significant change?

:04:47. > :04:49.Or are they massively advised by the US Treasury, the US Federal reserve,

:04:50. > :04:53.those people around them. And there's the issue of getting any

:04:54. > :04:58.significant change through Congress anyway. The president has relatively

:04:59. > :05:02.little authority in their own office over the economy, they have to deal

:05:03. > :05:05.with Congress and Congress by the Constitution has the power on the

:05:06. > :05:11.purse strings. The Federal Reserve is independent. There's a limit to

:05:12. > :05:14.the extent he can drive the economy without dealing with these

:05:15. > :05:18.institutions. The president has the biggest bullhorn in the world. When

:05:19. > :05:22.Trump says he might renegotiate U.S. Treasury debt, that is quite scary

:05:23. > :05:26.to markets because that's the full faith and credit of the US, one of

:05:27. > :05:31.the bedrock foundations of the global economy. He could seriously

:05:32. > :05:34.spook markets and cause economic contractions just by raising the

:05:35. > :05:38.possibility even if the reaction immediately from the Fed and

:05:39. > :05:41.Treasury and Congress is no you can't do it, we weren't accepted.

:05:42. > :05:50.Interesting times, thank you for coming in, Jacob. Thank you for your

:05:51. > :05:51.time. Now corporate news. Many companies have been reporting their

:05:52. > :05:52.earnings. Microsoft is reporting substantial

:05:53. > :05:54.growth in its cloud computing business, which helped

:05:55. > :06:02.boost quarterly profits That was far better than its more

:06:03. > :06:10.than $3 billion loss for the same period last year

:06:11. > :06:12.when the software giant booked hefty write downs

:06:13. > :06:14.on its mobile phone assets. Dave Lee reports

:06:15. > :06:21.from San Francisco. We can teach computers to learn...

:06:22. > :06:25.When Sachin took over at Microsoft two years ago he said the future of

:06:26. > :06:30.the company was in cloud computing services. That strategy seems to be

:06:31. > :06:34.paying off with the latest results beating Wall Street expectations.

:06:35. > :06:38.Revenue from Microsoft's cloud services have grown by 100% in the

:06:39. > :06:44.last three months and subscription sales of the Office software suite

:06:45. > :06:49.have been strong, adding up to a $3.1 billion profit for the last

:06:50. > :06:55.quarter. This time last year he was telling investors the company had

:06:56. > :06:59.lost $3.3 billion thanks to its disappointing acquisition of Nokia's

:07:00. > :07:04.mobile phone business. With that deal behind the company, last month

:07:05. > :07:08.he made his biggest gamble yet, spending $26 billion on the business

:07:09. > :07:11.social network LinkedIn. The company is expected to integrate the service

:07:12. > :07:18.with its own business products soon, further boosting its clout division.

:07:19. > :07:23.There was one note of caution from Microsoft, however, it admitted it

:07:24. > :07:24.would probably miss its target of 1 billion devices running Windows ten

:07:25. > :07:28.by next year. Dave Lee, BBC News. Eurostar

:07:29. > :07:30.is cancelling more trains this morning after a transformer

:07:31. > :07:32.caught fire in Paris. The firm suspended three train

:07:33. > :07:34.services on Tuesday evening, and now a further six services

:07:35. > :07:37.on Wednesday have been cancelled. Trains between London, Brussels

:07:38. > :07:40.and Paris are among those affected. to check their website before

:07:41. > :07:52.travelling. Brazil's Supreme Court has overruled

:07:53. > :07:54.a decision ordering mobile phone operators to indefinitely block

:07:55. > :07:56.access to WhatsApp. The president of the court said

:07:57. > :07:59.the ruling had been disproportionate because the messaging app

:08:00. > :08:04.is so widely used in Brazil. It's the third time in two years

:08:05. > :08:08.that WhatsApp has been threatened. Three US states have taken legal

:08:09. > :08:12.action against the car maker VW in the wake of its

:08:13. > :08:14.emissions scandal. New York, Massachusetts and Maryland

:08:15. > :08:21.all filed lawsuits on Tuesday. New York's Attorney General called

:08:22. > :08:23.the use of so-called defeat VW says the allegations are not

:08:24. > :08:43.new and that the carmaker has been There's an awful lot of information

:08:44. > :08:45.out there for financial markets to drive just around the world, not

:08:46. > :08:49.least the latest prognosis from the IMF -- to drive just.

:08:50. > :09:02.How is it going to date? Asian stocks are sluggish today -- today.

:09:03. > :09:05.Investors are worried about disappointing earnings reports and

:09:06. > :09:10.signs Brexit could hurt other economies according to the IMF.

:09:11. > :09:14.Tokyo trading in focus today with Nintendo shares down by 13% after

:09:15. > :09:20.their value more than doubled since the launch of its popular smart

:09:21. > :09:25.phone game Pokemon Go. Investors, though, they are taking profits but

:09:26. > :09:28.shares in McDonald's in Japan soaring by 12%, not because people