24/03/2017 World Business Report

possible collusion between Russia and the Trump campaign.

Wall Street and markets watch as President Trump struggles to push

Could a $2 trillion bubble be about to burst?

Plus - Australia puts on a song and dance for China's Premier Li -

massive trade ties top of the agenda.

Also, Samsun faces shareholders at its annual meeting. I'd like to be a

fly on the wall there. Our We start in the US -

where President Trump is battling to deliver on one of his biggest

election promises - and to hang on to his

credibility with investors. Late on Thursday Republicans

were forced to delay a vote in the House of Representatives

on scrapping and replacing Obamacare as they struggled to

drum up enough support On Wall Street it's

being seen as a key test The concern is if he can't deliver

on scrapping Obamacare, his other plans for massive tax cuts

and spending hikes may not get Let's just show you the scale

of the expectation that $2.2 trillion has been added

to the value of US shares since Trump was elected in a rally

of historic proportions. If you take a look at

the Dow Jones Industrial Average, it has soared since

the election in November. As of the start of this week, it had

gone up 14% since the US election. The financial sector has been

the biggest winner - That's because the President has

promised to review the strict regulations brought

in after the financial crisis - The Dow's index of bank

shares has soared 17% (TAKE GFX 4) The construction

industry has also been doing well - thanks to President Trump's promises

of huge spending on infrastructure. Shares in that sector are up

9% since the election. Markets have been rattled

this week though. Some investors think they are now

only going in one direction. The market really can't keep

the gains that we had earlier today. It's just a no-win, because no

matter what happens in the House, that bill, that healthcare bill just

had to be too conservative The Senate will never be

able to pass that bill. There's just too many

on the left, liberal senators, so it's a no-win, which means it's

no support for Trump which means that that Trump trade

is starting to unwind. Russ Mould is Investment

Director at AJ Bell. nice to see you. What do you make of

all of this? Everybody predicted that this particular reform of the

affordable healthcare act known as Obamacare would be extremely

difficult. One of those classic situations where markets climb a

wall of worry and slide down the slope. When Trump took over, people

were wondering what he was. Infrastructure reform and healthcare

reform and tax reform, he could be like Ronald Reagan, how exciting,

GDP went up to 8% but now, hopes have gone from zero as you said to

$2.3 trillion worth counting. There has been hope built-in and that is

what he has got to meet. What's interesting is the move on his part

saying we will vote on this regardless. If I don't win, but I

will walk away. We will not necessarily change what has become

known as Obamacare. What do you take from that in how he will push do

other things which will be difficult to pass? It is the slope of hope

again. The Budget blueprint didn't mention the $1 trillion of

infrastructure spending. The Democrats are fighting this

appointment for the Security and exchange commission and The Supreme

Court, raising questions over what reforms he can push through which

comes back to American investor Warren Buffett, who said when you

mix your political views with your investment decisions, you are making

a big mistake. Nobody knows what the politicians can do. It is hard to

predict the outcome. Let me ask to predict what will happen on markets.

This is the big question. Why do the markets get so excited? We knew it

would be tough on Capitol Hill. Everybody said that. Investors said

that, political analysts. We all knew it wouldn't be easy yet we saw

this incredible rally since he was elected. Do I think the market is

expensive? Yes. Is the economy late in its cycle? Yes. Do interest rate

rises stopped the market, yes, because eventually more inspect at

-- expensive money. What I will say, you are likely to get more

volatility. We had a fall in the index which was the first one for

110 days. You only get those moves every 11 so you are likely to see

more volatility going forward. Good luck. Thanks a lot but coming in.

Samsung has been facing investors at its Annual General Meeting.

The company's leader - grandson of the founder

and Vice Chairman Jay Y Lee - wasn't there.

He's facing trial on charges of bribery and embezzlement

which he denies in a corruption scandal that has seen president

Sharanjit Leyl has been following this for us in Singapore.

That was never going to be an easy AGM. But also the other issues that

Samsung, it has had torrid year. A very torrid year. Lee wasn't there,

detained over those bribery charges. We heard from the vice-chairman

instead. He was apologising to shareholders. The scandals which led

to the ousting of the South Korean president and the recall of the Note

7 smartphones. They are promising the firm will improve governments in

the face of pressure from investors and Mr Jay Y Lee, absent because he

is facing all those charges including bribery and embezzlement.

Prosecutors are accusing him of bribing are confident of the former

resident in return of the government backing 2015 merger which helped

tighten control over the South Korean technology giant. Also fire

prone Note 7 and the Battle over its batteries, it cost the company about

$6 billion in the vice-chairman apologise about that as wealth and

Samsung shares are falling today. They hit record highs this month

following very strong semiconductor sales and the potential for

restructuring the technology giant. Investors are hoping to hear about

that as well. The shares are falling today. Good to see you. Thank you.

We are also in Australia - where the Chinese Premier Li Keqiang

is holding talks with Prime Minister Malcolm Turnbull.

They'll be discussing how to build on the Free Trade Agreement

Mr Li's visit to Canberra comes at a time when China is looking

to capitalise on the global uncertainty which has followed

Our Australia correspondent Hywel Griffith has been looking

Handmade for some of the world's most demanding sleepers. These

mattresses are on their way from Sydney to Shanghai where they will

sell for 75,000 Australian dollars. AH Beard only started exporting to

China in 2013 and in a few years, they hope to have 100 stores there.

The 2015 Free Trade Agreement has helped push down tariffs and plugged

up profits, bolstered by the massive demand for Western goods. The buyer

typically is not interested in buying locally produced products,

they are looking for something that is imported. They particularly look

to Australia because we have a very natural product and beyond, I guess,

the quality of the product and the master craftsmanship which goes into

producing the product, they are looking for something that is

genuine. Premier Li Keqiang has been given a traditional welcome afforded

to old allies. He's come to tell Australia it doesn't have to choose

between China and America. They can trade in a circle of friends.

Australia has spent decades carefully cultivating its

relationship with China. It's become its biggest trading partner. The

Free Trade Agreement sealed the deal but there are more doors the company

opened like making it easier for Australian companies to sell on

line. At the moment, exports are still dominated by iron ore and

coal, the commodities that have kept the Australian economy moving. But

there is a need to change track. Food sales like beef on the menu.

There may even be time to discuss China stepping into the space

vacated by America in a new transpacific part -- Trans-Pacific

Partnership. The TPP itself may have to be modified because it has been

strict on prices and a bunch of other issues which China has found

difficult to swallow in the short-term but a modified version

may be possible. For this company, more could be done to put the

finishing touches to the trade agreement, like improving customs

clearance but China and Australia become pretty happy bedfellows.

The show you how markets are trading in Asia. It's a mixed picture. --

let us. We saw some numbers for Japan earlier this week, the yen is

still very strong. Markets in the US are very flat. Markets worldwide are

waiting to see how that boat on the reform of the healthcare plan in US

goes. That is the real issue for markets around the world. You

up-to-date on the business stories. See you in a