08/05/2017

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:00:19. > :00:19.Emmanuel Macron wins the French Presidency,

:00:20. > :00:22.but that may prove to have been the easy part.

:00:23. > :00:29.We assess how his En Marche! movement hopes to tackle the huge

:00:30. > :00:36.And President Trump wants to cut red tape to get drugs on the market

:00:37. > :00:39.faster, but the pharmaceutical industry is wary of presidents

:00:40. > :00:56.So now let's focus on the business implications of that result in

:00:57. > :00:59.France. We'll look at all the market reaction as well in this of World

:01:00. > :01:02.Business Report. So, he got the job. Emmanuel Macron

:01:03. > :01:08.is to be the French president. His first challenge will be to form

:01:09. > :01:15.a government with crucial The outcome of that will determine

:01:16. > :01:20.how much power the new president has to tackle the lengthy list

:01:21. > :01:25.of economic problems. As we've highlighted before on this

:01:26. > :01:30.programme France has had a high unemployment rate

:01:31. > :01:40.for many, many years. Currently it is about 10% of the

:01:41. > :01:45.workforce, or 3 million people. That compares with 4.3% across the border

:01:46. > :01:51.in Germany. The problem is worse for young people. Pretty 4% of those

:01:52. > :01:55.between the ages of 15 and 24 do not have a job.

:01:56. > :02:10.The other big issue is the size of the public sector

:02:11. > :02:12.in France - one of the largest in the world.

:02:13. > :02:15.accounted for over 50% of national income.

:02:16. > :02:17.This is something Macron has promised to tackle

:02:18. > :02:22.With an economy that has seen faltering growth for years some

:02:23. > :02:24.experts say it will bring much needed savings.

:02:25. > :02:26.Joining us now from Paris is Laurent Clavel, Head

:02:27. > :02:39.I assume you are breathing a sigh of relief? Yes we are.

:02:40. > :02:48.Markets were very happy to see this result. That already was the feeling

:02:49. > :02:54.that polls had got the popular vote right, and they should be no

:02:55. > :02:56.surprise yesterday evening. The question now is about the

:02:57. > :03:06.parliamentary elections in June, and how much power Emmanuel Macron's

:03:07. > :03:15.party will get. Absolutely. France has a semi- presidential regime. The

:03:16. > :03:20.president alone cannot do that much. The goal for Emmanuel Macron is to

:03:21. > :03:24.get an outright majority in the lower house to pass his progress

:03:25. > :03:27.through Parliament, or at least to have a relative majority, which

:03:28. > :03:33.means having more MPs than other parties. The goals for the other

:03:34. > :03:43.parties, the right wing, for example, which was expected a year

:03:44. > :03:51.at Lisa do better, is to lead a coalition and decide on the policy

:03:52. > :03:55.agenda. But he has promised a change for the economy, as did Francois

:03:56. > :04:02.Hollande and Nicholas Sarkozy. Many have failed to bring the changes

:04:03. > :04:10.that they said they would. Will he deliver? That is a good question. I

:04:11. > :04:15.think your comparison is probably interesting in the sense that for

:04:16. > :04:19.many, many years, possibly even decades, French governments, French

:04:20. > :04:24.presidents, have promised their European partners reforms against

:04:25. > :04:30.deficit slippage. We believe we have reached a point where European

:04:31. > :04:34.partners are not interested in hearing is at a bargain. -- our

:04:35. > :04:39.European partners. We have reached a point where it France will deliver

:04:40. > :04:42.reforms of to stay ahead of the curve in the international

:04:43. > :04:47.competition. Where is the fiscal stimulus which is probably needed

:04:48. > :04:52.for the eurozone to grow out of the global financial crisis and the

:04:53. > :04:56.global recession that we have been struggling with a decade, is going

:04:57. > :05:01.to come from a different country, namely, Germany. We will keep a

:05:02. > :05:12.close eye on Germany, of course. They are next on the list. Thank you

:05:13. > :05:17.very much for joining us Laurent Clavel.

:05:18. > :05:22.So what effect has Mr Macron's win had on the financial markets..

:05:23. > :05:28.Sharanjit Leyl is in our Asia Business Hub in Singapore.

:05:29. > :05:38.This was no surprise, was at? Not really, but you said that breathe a

:05:39. > :05:48.sigh of relief. That was true here to. -- was it. -- too. There was a

:05:49. > :05:54.lot of nervousness after the populace wins last year and after

:05:55. > :06:00.the Brexit vote. Investors who took their cues from the Wall Street

:06:01. > :06:11.rally. That was as dealers rallied after the job raises. He did fall

:06:12. > :06:15.back again because his win had been factored in, but there were lots of

:06:16. > :06:24.fears that a win for Marine Le Pen could see France leave the EU.

:06:25. > :06:30.Japan's share average has hit a level not seen in nearly 17 months

:06:31. > :06:35.as a more business friendly view of Europe is helping business here.

:06:36. > :06:40.Little risk is a huge fear and it was considered a major market theme

:06:41. > :06:48.here. But this win by Emmanuel Macron, and the Dutch win for

:06:49. > :06:51.another centrist candidate, was very reassuring to Asian investors.

:06:52. > :06:53.Political risk is letting in Europe. Thank you for joining us, Sharanjit

:06:54. > :06:55.Leyl. The Trump administration's response

:06:56. > :06:58.to slow but steady growth in the US has been to declare that cutting red

:06:59. > :07:01.tape will boost company profits The President has issued

:07:02. > :07:15.orders and initiatives Donald Trump has said that cutting

:07:16. > :07:19.regulation will make it easier for drug companies to get new medicines

:07:20. > :07:25.to market. But how realistic is this proposal?

:07:26. > :07:29.Samira Hussain has been weighing it up.

:07:30. > :07:35.Donald Trump said that lowering the cost of prescription drugs had to be

:07:36. > :07:40.done. Howell? Cutting regulations. I will be streamlining the process so

:07:41. > :07:44.that from your standpoint, if you have a drug, you can get it

:07:45. > :07:51.approved, instead of waiting for many years. In that meeting at the

:07:52. > :07:55.White House was the influential pharmaceutical lobby group, Pharma.

:07:56. > :08:00.We are living with regulations to Veldt 40 years ago. We have to keep

:08:01. > :08:03.safety first, but there are opportunities to modernise the

:08:04. > :08:10.system and to get medicines to the marketplace faster and to help

:08:11. > :08:13.patients. Faster approval by the FDA would mean more drugs on the market,

:08:14. > :08:19.which should increase competition and bring down prices. But the cost

:08:20. > :08:27.of that idea could be even greater in patient safety. This drugs

:08:28. > :08:31.company is testing cancer treatment. These are the countries that take

:08:32. > :08:36.most of the risk when getting a drug to market. It is a process that

:08:37. > :08:43.could cost billions of dollars, to 15 years, and no guarantee of

:08:44. > :08:46.success. -- the company. But surprisingly, companies that this

:08:47. > :08:50.are not convinced faster approvals are a good idea. What is important

:08:51. > :08:57.is to develop effective therapies that are also safe. I do believe we

:08:58. > :09:01.should lower the bar. I think we have to work creatively with our

:09:02. > :09:03.partners in the regular tree industry, with other stakeholders,

:09:04. > :09:09.including patients and caregivers, to make this process more efficient.

:09:10. > :09:13.We should do that without sacrificing quality. The President's

:09:14. > :09:18.views on the pharmaceutical industry, like his view on others,

:09:19. > :09:23.is that there are simple business solutions to its problems. However,

:09:24. > :09:27.the testimony from the industry itself demonstrates that Donald

:09:28. > :09:29.Trump's solutions don't always have much to do with the underlying

:09:30. > :09:39.problem. And of course there is a lot more on

:09:40. > :09:41.our website in terms of business stories, so take a look when you

:09:42. > :09:58.have a moment.