:00:19. > :00:26.Welcome to Donald Trump's America, or what soon will be anyway. I'm
:00:27. > :00:30.Samira Hussain and on this special edition of World Business Report,
:00:31. > :00:33.we're taking a look at the President-elect's plans for America,
:00:34. > :00:38.in particular what he wants to do with the US economy.
:00:39. > :00:47.Here on Wall Street, Donald Trump's selection triumph was met with high
:00:48. > :00:50.spirits. US markets have soared. Now with his inauguration approaching,
:00:51. > :00:55.people are asking, what will Mr Trump do for US growth? In his
:00:56. > :01:00.campaign he promised big in Best man's in America's infrastructure.
:01:01. > :01:04.Michelle Fleury took a look at how that might work. Investment.
:01:05. > :01:09.Mid-morning in Allentown, Pennsylvania. Traffic is flowing
:01:10. > :01:15.smoothly over this bridge built in the 1920s but underneath it's not
:01:16. > :01:19.ageing gracefully. This bridge was built in 1929, almost 90 years old,
:01:20. > :01:24.this is an open arch the ridge. Engineers tasked with checking the
:01:25. > :01:30.strength are worried. This is the worst case, the joint area. That's
:01:31. > :01:35.where the most erosion happens. This bridge, like many of America's
:01:36. > :01:40.roads, ports and airports are starved of funds. Lack of funding is
:01:41. > :01:44.a problem in the sense that there is so much money so you have to decide
:01:45. > :01:48.which bridges go first. Money isn't the only problem when it comes to
:01:49. > :01:54.building the country's roads, bridges and pipes even. Under Barack
:01:55. > :02:00.Obama, the Republican-controlled Congress was opposed to spending on
:02:01. > :02:04.infrastructure projects. When they will they change that position now
:02:05. > :02:09.they hold the White House? -- will they. Their man made a point of
:02:10. > :02:13.mentioning infrastructure in his election night victory speech. We're
:02:14. > :02:20.going to rebuild our infrastructure, which will become, by the way,
:02:21. > :02:27.second to none, and we will put millions of our people to work as we
:02:28. > :02:34.rebuild it. Mr Trump's pitch is to spend $1 trillion. Not just using
:02:35. > :02:39.government money. He's also hoping to get the private sector to fund
:02:40. > :02:44.these projects with tax credits. In 1976, Mr Trump successfully used
:02:45. > :02:49.this model to rebuild this ice rink in New York's Central Park. Doing
:02:50. > :02:54.the job cheaper, faster and better than the public sector. And
:02:55. > :02:58.experience he hasn't forgotten. So is the private public partnership
:02:59. > :03:03.always the right tool? That depends -- an experienced. It's not the best
:03:04. > :03:07.for every project, it is best suited to large, complicated projects and
:03:08. > :03:10.the reason for that is those other projects that give you an
:03:11. > :03:17.opportunity to really drive innovation so the net result is more
:03:18. > :03:21.bang for the taxpayer but. In Pennsylvania, the need for repairs
:03:22. > :03:24.is urgent. Americans want to update their nation, but as Donald Trump
:03:25. > :03:29.will find, the overwhelming sticking point is likely to be how to pay for
:03:30. > :03:33.it. Aside from infrastructure, one of
:03:34. > :03:38.Donald Trump's signature policies is a rejection of America's
:03:39. > :03:42.International Trade agreements. He blames trade deals for encouraging
:03:43. > :03:45.US companies to move jobs abroad. Here's Michelle Donald Trump's move
:03:46. > :03:51.away from free trade. Donald Trump turned up in person at
:03:52. > :03:56.Carrier Corporation to claim victory that he kept manufacturing jobs in
:03:57. > :03:59.America, a campaign trail promised cheered by the working class who
:04:00. > :04:09.helped elect him. He said he would help us and he actually did. If he's
:04:10. > :04:13.done this for us here in Indiana before even been elected, my gosh, I
:04:14. > :04:17.can't wait till he gets in office to see what he'll do for the country.
:04:18. > :04:20.But how good was the deal? Carrier will collect millions of dollars in
:04:21. > :04:25.tax breaks for keeping 100 jobs in the heartland and Donald Trump got
:04:26. > :04:29.to use Carrier ain't part of his crusade. Companies are not going to
:04:30. > :04:35.leave the United States any more without consequences -- in part of.
:04:36. > :04:39.It's not going to happen. Donald Trump frequently bashes free trade,
:04:40. > :04:43.but how far is he prepared to go? This man was an adviser to Mitt
:04:44. > :04:49.Romney when he ran for the presidency in 2012. Just going from
:04:50. > :04:54.let's expand free trade to let stop expanding free trade is already a
:04:55. > :04:58.huge shift. How much further he goes beyond that to constrain free trade
:04:59. > :05:03.is what people aren't sure about -- let's stop. Donald Trump's antitrade
:05:04. > :05:09.rhetoric captured what many in the nation felt, that free trade hasn't
:05:10. > :05:13.been good for all workers. The fear now among companies who rely on
:05:14. > :05:17.global trade is that Donald Trump's new approach could be bad for
:05:18. > :05:22.business. One firm that might suffer if
:05:23. > :05:27.tariffs were introduced on goods imported to the US is this cargo
:05:28. > :05:31.company. Immediately it would be a ghost town. When you have an
:05:32. > :05:35.antitrade policy, you're going to make it that much harder for
:05:36. > :05:40.companies to do International Trade, which means your goods are not going
:05:41. > :05:44.to be as cost-effective overseas and you're going to out price yourself
:05:45. > :05:48.because of duties and they will look elsewhere. It's not clear if Mr
:05:49. > :05:53.Trump will follow through on some of his antitrade rhetoric, but he has
:05:54. > :05:57.put corporate America on notice. Browbeating US firms into keeping
:05:58. > :06:02.jobs at home. Michelle Fleury. Mr Trump's approach
:06:03. > :06:07.to free trade has caused alarm among some economists, but there's no
:06:08. > :06:12.doubt that some of his plans can be seen as progrowth. I sat down with
:06:13. > :06:16.the chief US economist at Deutsche Bank and asked him what impact
:06:17. > :06:21.Donald Trump's infrastructure plans will have. >>
:06:22. > :06:26.Improving infrastructure for transportation, for electronic
:06:27. > :06:32.communication, this is certainly an area that we need more of in the US.
:06:33. > :06:37.I think it will help productivity, I think it will help get jobs going as
:06:38. > :06:40.well. The incoming Trump administration seems to be reversing
:06:41. > :06:46.a lot of Barack Obama's policies with regard to trade. I'm wondering
:06:47. > :06:51.what kind of an impact that will have on the US economy. A lot was
:06:52. > :06:55.said during the campaign. If we followed through with that it would
:06:56. > :07:02.be a significant concern, no question. My sense is that the new
:07:03. > :07:05.administration is going to have its primary objective to be to raise
:07:06. > :07:12.growth in the economy from what's been a very sluggish 1.5%/ 2% into
:07:13. > :07:16.the 3% plus range, which will be very important I think for raising
:07:17. > :07:22.productivity and standard of living down the road. If we go down the
:07:23. > :07:27.road seriously of some of the protectionist elements talked about,
:07:28. > :07:31.that could be counter-productive. We've seen our first and pretty much
:07:32. > :07:36.only interest rate rise for this year in 2016. I'm wondering what you
:07:37. > :07:44.think the Federal Reserve will do under a Trump administration. So far
:07:45. > :07:54.our house call is for two more rate increases in 2017. Even though the
:07:55. > :07:59.F1 see how is increased their guesses to about three. The labour
:08:00. > :08:04.market is already beginning to tighten in the US. We are at very
:08:05. > :08:09.close to full employment. It's going to take a while for increases in
:08:10. > :08:13.business spending to raise productivity, to raise the growth of
:08:14. > :08:17.the supply side of the economy, so for a while we're going to see a
:08:18. > :08:22.further tightening of the labour market. We're already beginning to
:08:23. > :08:27.see some pressure on wages and we expect to see inflation move up
:08:28. > :08:31.further. There is room, and this is a desirable development up to a
:08:32. > :08:34.point but it also means the Fed is going to get back to a more normal
:08:35. > :08:40.level of interest rates somewhat faster than previously. While our
:08:41. > :08:46.official forecast is two, I think the risks are going towards three or
:08:47. > :08:50.even four in the year ahead. Peter Hooper of Deutsche Bank. Donald
:08:51. > :08:56.Trump's shock election victory reset many assumptions about US politics.
:08:57. > :08:57.We were about to find out if a Trump presidency can remake the US
:08:58. > :09:10.economy. For the first time in nearly 30
:09:11. > :09:15.years, Queen Elizabeth has missed the Christmas Day church service at
:09:16. > :09:16.Sandringham. Buckingham Palace says she is still