:00:00. > :00:00.Now for the latest financial news with Aaron Heslehurst
:00:00. > :00:17.Slashing taxes, talking tough on trade, and ripping up
:00:18. > :00:23.America's President-Elect promises double the growth and millions
:00:24. > :00:35.Plus, his arch rival, China, confirms its weakest growth
:00:36. > :00:44.since 1990, with fears of even tougher times ahead.
:00:45. > :01:01.Welcome to the programme. We have the Friday feeling. You will see a
:01:02. > :01:03.snapshot of all the different things going on in the business world.
:01:04. > :01:05.We start in Washington, where, as you've been hearing,
:01:06. > :01:09.later today, Donald Trump will be sworn in as the 45th President
:01:10. > :01:12.The billionaire businessman has gone from longshot candidate
:01:13. > :01:16.to the leader of world biggest economy in just a year and a half.
:01:17. > :01:19.His supporters will now be hoping that he can shake up the US economy
:01:20. > :01:22.in the same way the he shook up the presidential race.
:01:23. > :01:28.He has promised to create 25 million jobs over ten years and to double
:01:29. > :01:30.the annual rate of economic growth to 4%.
:01:31. > :01:34.He's promised to take a tough line on trade,
:01:35. > :01:36.and on countries he sees as undercutting US workers
:01:37. > :01:42.He has famously threatened to slap a 35% tariff on Mexican imports
:01:43. > :01:45.and a 45% tariff on products from China, raising fears
:01:46. > :01:52.To start with, though, he will renegotiate
:01:53. > :02:02.the North American Free Trade Agreement.
:02:03. > :02:04.He also says he'll cut America's high corporate taxes,
:02:05. > :02:08.which have pushed big US firms to offshore a lot of their business
:02:09. > :02:12.Critics say this is too expensive and will help big companies rather
:02:13. > :02:16.And he promises to free up business by ripping up red tape.
:02:17. > :02:19.He says 70% of all federal regulations can go.
:02:20. > :02:22.He hopes that will encourage firms to keep more jobs in the US
:02:23. > :02:26.Shares of the United States' biggest companies have certainly reacted
:02:27. > :02:45.The Trump Rally has faded in recent days, but the benchmark Dow Jones
:02:46. > :02:48.industrial average is still up around 9% since Mr Trump
:02:49. > :02:56.Some of the top gainers have been the big Wall Street banks.
:02:57. > :03:00.They were hit by a huge amount of regulation since the 2008
:03:01. > :03:02.financial crisis, known as the Dodd Frank Act.
:03:03. > :03:05.And as Samira Hussain reports, they are hoping its days
:03:06. > :03:19.The Trump inauguration will no doubt be the main talking point
:03:20. > :03:21.at the World Economic Forum in Davos.
:03:22. > :03:24.We've been reporting from there all week.
:03:25. > :03:27.So, let's go live to Switzerland now for some reaction.
:03:28. > :03:30.Dr Paul Sheard is Global Chief Economist at S Global.
:03:31. > :03:36.It is great to have you on the programme. Lots to talk about. Can
:03:37. > :03:39.we start with this whole thing about reversing globalisation and bringing
:03:40. > :03:44.jobs back to America apparently 5 million have been lost from the US
:03:45. > :03:49.since 2000. Most of the reason is technology, not because they have
:03:50. > :03:54.been outsourced across the world. It is great to be here. It is difficult
:03:55. > :04:00.to untangle the effects of technology and liberalisation. There
:04:01. > :04:07.are probably elements of both. -- globalisation. Most economists
:04:08. > :04:12.probably think that comparative advantage is driving it more than
:04:13. > :04:18.anything else. As you indicated, there is a sense of a shift in the
:04:19. > :04:24.atmospherics and the policies coming out of the world's largest economy.
:04:25. > :04:34.Are people in your game bracing ourselves for a possible trade war?
:04:35. > :04:40.That is on everyone's radar screen, but people are not expecting him to
:04:41. > :04:45.go in that direction. Trade war, protectionism, the 1930s and that
:04:46. > :04:50.situation, it would not be consistent with aiming for 4%
:04:51. > :04:57.growth, because he is the man with the art of the deal, the negotiator
:04:58. > :05:03.in Chief. The message seems to be we want free trade, but on fair terms
:05:04. > :05:07.to America. In the past, America has been open with its market. The
:05:08. > :05:11.message is now that has not always served all segments of the American
:05:12. > :05:19.population well. So he will get tougher when it comes to striking
:05:20. > :05:24.trade deals and re- looking at them, and NAFTA is at the top of the list,
:05:25. > :05:30.of course. They will start with that straightaway, apparently. Shortly,
:05:31. > :05:34.the big tax cuts he has planned, will they be enough if they go
:05:35. > :05:36.through to bring a lot of this American corporate money, the
:05:37. > :05:45.millions and billions offshore, bring it back to the US? I think it
:05:46. > :05:51.could be an important development, Aaron, because it has been out a
:05:52. > :05:55.long time. We have had divided government in the US and it has been
:05:56. > :05:58.difficult to get anything done. There has been a strong consensus
:05:59. > :06:03.that this corporate cash going offshore needs to come back. Donald
:06:04. > :06:13.Trump may be the man to do it with the economists on his side. Put a
:06:14. > :06:17.jacket on! It is -20 down there! We appreciate you joining us. At least
:06:18. > :06:27.the global economy is not freezing. There you go! See? A nice line to
:06:28. > :06:29.end on. Joining us from Davos in Switzerland.
:06:30. > :06:32.We are also in China, where official growth figures have
:06:33. > :06:37.They have confirmed that last year, China's economy grew at its slowest
:06:38. > :06:39.pace in more than a quarter of a century.
:06:40. > :06:44.China's growth rate hit 6.8% in the last three months of 2016.
:06:45. > :06:46.That's slightly better than expected, and slightly better
:06:47. > :06:54.But it still leaves the annual growth rate at 6.7% for 2016,
:06:55. > :06:56.bang in the middle of the government's target
:06:57. > :07:12.The bad news is that it's the weakest rate in 26 years.
:07:13. > :07:14.1990 was just after the crackdown in Tiananmen Square,
:07:15. > :07:16.when China was isolated internationally.
:07:17. > :07:19.But the good news is, China has avoided the economic slump
:07:20. > :07:22.many around the world were fearing, largely thanks to huge amounts
:07:23. > :07:29.Let's talk to the BBC's Steve McDonell in Beijing.
:07:30. > :07:40.It is good to see you. Let us start with how interesting 6.7% is. Right
:07:41. > :07:45.in the middle of what Beijing said they would do. Can I ask you this,
:07:46. > :07:51.the last thing President Xi Jinping needs is Donald Trump to start a
:07:52. > :07:56.trade spat because that could hit the Chinese economy quite hard,
:07:57. > :08:00.couldn't it? Absolutely. There is a lot of fear here that China, which
:08:01. > :08:05.has benefited greatly from globalisation, could take a hit from
:08:06. > :08:12.these tariffs if they take place. A could argue that United States
:08:13. > :08:16.consumers have also benefited greatly from free trade. They will
:08:17. > :08:23.suffer if there is a tariff on iPads, for example, and prices go
:08:24. > :08:27.up. Every time we see these numbers the questions lies about. I have to
:08:28. > :08:31.throw it out. Can you trust these numbers and what comes out of
:08:32. > :08:40.Beijing? This is a good question. I am in just before I come to whether
:08:41. > :08:46.the figures are real, let us assume they are solid. -- I mean,. The
:08:47. > :08:52.Chinese government, 6.7%. Many governments would give their hand
:08:53. > :08:57.for that. For China, it means they are worried about a slowing economy.
:08:58. > :09:03.Policymakers say it is all part of the plan here though. China needs
:09:04. > :09:07.slower growth that relies more on domestic consumption and less on
:09:08. > :09:11.exports. That is why we are seeing these figures. But as to whether
:09:12. > :09:13.they are real or not, it is interesting, people have long
:09:14. > :09:17.suspected some provinces artificially inflate their GDP
:09:18. > :09:22.figures to make the government look good. Sometimes they underestimate
:09:23. > :09:26.them to draw more attention and help from the central government. For the
:09:27. > :09:31.first time, we have just had the governor admitting that over several
:09:32. > :09:38.years in his province, the figures were fake. The figures were
:09:39. > :09:42.doctored. And so he says that they have misled the national government
:09:43. > :09:45.on GDP figures. This is just fuelling more and more concerned
:09:46. > :09:51.that you cannot trust these statistics in China. Indeed. Thank
:09:52. > :09:57.you very much for the explanation, Steve. Have fun on the weekend.
:09:58. > :10:03.Other news now. President-Elect Donald Trump's
:10:04. > :10:05.choice for Treasury Secretary, Steven Mnuchin, has
:10:06. > :10:06.faced strong criticism during a Senate
:10:07. > :10:08.confirmation hearing. Mr Mnuchin is a former
:10:09. > :10:11.a Goldman Sachs banker turned hedge He faced accusations
:10:12. > :10:14.that his former bank, OneWest, ruined lives during the US
:10:15. > :10:17.property crash by foreclosing But he told the Senate Finance
:10:18. > :10:33.Committee "I have been maligned." I don't really want to do the
:10:34. > :10:37.markets. You are forcing me to do it. There you go. Everyone is
:10:38. > :10:40.watching the inauguration today. I will be back with James Menendez to
:10:41. > :10:41.look at the papers.