08/08/2016 World Business Report

Those are the latest headlines from BBC World News.

Now for the latest financial news with Sally and World Business

Building walls and trashing trade agreements, Donald Trump lays

out his economic plans for the world's biggest economy today.

And China shows further signs of weakness.

The latest trade figures came in worse than expected,

with exports shrinking for 21st month in a row.

Welcome to World Business Report, I'm Sally Bundock.

Also in the programme: We will get some top career tips

from the founder of the world's largest foreign exchange company,

We start in the US, where Donald Trump will be hoping

to jump-start his presidential campaign, after a difficult week

The Republican candidate is in Detroit where he will try

to win over voters, and his speech is expected to outline his plans

Trump has already outlined several of his key policies.

Let's take a look at what we know so far.

The billionaire businessman has proposed a series of tax cuts

A Republican government would see the top rate of corporation tax cut

That is a reduction of more than half.

Mr Trump has also vowed to put American workers first.

He proposes to do that by strengthening borders,

and says he will deport any illegal immigrants out of the country.

It is estimated this could see some 11 million people,

or 3.5% of the population, removed from the United States.

Protectionism is another big issue for the Republican candidate.

Mr Trump has proposed a 45% levy on Chinese goods and a 35% tax

He hopes this will safeguard American jobs, but his opponents

suggest that this could spark an all-out trade war.

Peter Morici is an academic at the University of Maryland,

and a former chief economist at the US International Trade

Good morning, all good evening as is the case where you are. Thank you

for being on the programme. As ever with the Donald Trump story, it is

extremely divisive, with strong opinions on both sides about his

economic plans. What are your thoughts? Well, I think if we're

talking about imposing a tariff on China for the purpose of our

relationship with them, kind of Brexit move, then it makes some

sense. If we are talking about closing our borders, it makes no

sense at all. We can't deport 11 million people, that is absurd. The

time has passed when we can say that these people are here illegally and

must leave. Many of them have had children here, this is getting to be

a bit absurd. So a lot of it is absurd, as you say, but will it be

one of those situations where it is about winning votes prior to getting

the job and if he does get the job his team around him will advise him

on a more rational way? Well, when I look at the economic advisory team

that he appointed on Friday, I would say no. My feeling is he has got a

bunch of financial guys who are buddies of his, real estate people

and so forth, it is very thin on economic and public policy

expertise. Of those, some of those with expertise are a bit gadflyish

with their attitudes. He can't get reputable people to advise him. Not

that the committee is devoid of reputable people but I am largely

can't get reputable economists to work with him. OK, so you are

concerned about the team around him but the issue is also if he gets the

job in November, to what extent can you push radical change through

anyway, given how the Congress is sort of playing out, and also you've

got things like an independent Federal Reserve that would hopefully

have some sort of influence? Well, the Federal Reserve is vulnerable,

and some economists on the team, one of whom is very critical of the

Federal Reserve policy, they could find allies in the Congress and that

would undermine the Fed's independence, that concerns me a

great deal. Imposing a large tariff requires congressional approval. You

could do it on an emergency basis as a short-term thing to force

negotiations with China but you really can't, for example, just rip

up Nafta and throw it out the window, as we are electing a

president and not a dictator. A big drop in corporation tax, and also on

taxes for all individuals in America, regardless of what they are

earning. How do you add that up, how will, therefore, the Federal

Government pay for things if they are getting less money coming in? I

can tell you categorically that tax cut is not going to happen. There

will be a tax cut, but not the Trump tax cut. It will cost $1 trillion a

year, that is an enormous slice of US federal revenue. He would simply

have to accept a much smaller tax cut and also cuts in spending and

other places to pay for some of it. You just cannot justify these kinds

of rate cuts, they are so Draconian. And I am an economic conservative, I

want lower taxes and less government at this is witchery. And who is your

money on, finally, Hillary Clinton or Donald Trump? Who is going to get

the job in November? Hillary Clinton is going to win. Donald Trump is

running an undisciplined campaign which is largely a family operation.

He has surrounded himself by cronies. It is not a professional

campaign. He may be a great real estate wheeler and dealer, but

politician he is not. He is out of his element. Thank you for your

perspective and later when we hear more of what Mr Trump has been

saying in Detroit we shall update you.

In the last couple of hours, the latest set of trade statistics

Sharanjit Leyl is in Singapore for us.

Last time I spoke to you you were with me here in the studio. Nice to

see you back in Singapore. How is China doing? Well, not very well

unfortunately. Exports and imports falling more than expected in July.

It is a sign of a sluggish global demand. We saw deteriorating imports

as well to China. That is raising a lot of concerns about the domestic

conditions within China. Essentially what we saw was exports falling 4.4%

from Asia's largest economy from the previous year. Imports were down

12.5% in dollar terms and the trade surplus widening to over $52

billion. Officials essentially having to boost fiscal support. They

are trying to improve investment and consumption at home but really not

resulting in March. You will recall of course it has been a year since

China's surprised evaluation of the yuan, the weaker currency isn't

really benefiting that much and it really should boost exports.

Analysts say that the global economy as well has already been weakened by

the UK's surprise vote to leave the EU. It is sluggish, there is

increasing uncertainty and it is also interesting to compare

Chinaexports as well as imports to different parts of the world.

Exports to the US slipping 2%. They fell compared to the European Union

bloc imports to Australia, where China has always looked for iron ore

and other resources, they slumped some 22%. We also saw oil imports

falling the six-month lows, mainly due to the falls in the price of

crude. So overall not great news from China at this point. Thank you

very much. We will see how that feeds through in markets in a

minute. In other news: The UK's

Serious Fraud Office has launched an investigation into allegations

of fraud, bribery and corruption involving the aircraft

manufacturer Airbus. The allegations relate

to irregularities concerning the use Airbus said it was co-operating

with the probe, which was Now let's turn to the mystifying

world of career advice. We asked the boss of the world's

largest foreign exchange bureau, Travelex, what he wished he had been

told before starting I think the most important thing for

anyone building a business today is persistence. Certainly for me in

many occasions where it has made a many occasions where it has made a

real difference. There is a great quote from Calvin Coolidge, the

American President, who once said that nothing in the world can take

the place of persistence. Talent will not, Genius will not, education

will not. Persistence and determination are alone are

omnipotent. Don't necessarily get hung up on qualifications. I've been

fortunate enough to recruit some amazing boys and girls who didn't

necessarily come with fantastic degrees and MBAs, but were just

committed, enthusiastic, really wanted to make a difference. The

reverse is also true. I have recruited people with degrees and

MBAs who turned out to be useless. It is gut feel. Do the people you

want to recruit want to be a part of what you are trying to build? Let's

have a look at the markets and you can get a sense of how they are

reacting. As you can see, the fact that China is seeing slowing trade

growth, not really phasing market at all. The yen, $1 buying just

People are under-reporting the amount they eat,