:00:00. > :00:18.Now it's time for World Business Report.
:00:19. > :00:22.US markets have their worst day since the presidential election
:00:23. > :00:34.China's $300 billion e-commerce giant looks to America -
:00:35. > :00:54.Also in the programme, Japan's economy
:00:55. > :00:58.grows for the fifth quarter in a row - has Abenomics finally paid off?
:00:59. > :01:18.But first, we start on Wall Street where for months optimism
:01:19. > :01:20.about the Trump presidency, the markets have been powering
:01:21. > :01:25.But late on Wednesday the Trump Bump turned into the Trump Slump -
:01:26. > :01:27.as US stocks and the Dollar suffered their worst day
:01:28. > :01:33.Growing concern that the President's promised tax cuts and pro-business
:01:34. > :01:35.reforms may never materialise, as the White House battles one
:01:36. > :01:40.The Dow Jones industrial average fell 372 points,
:01:41. > :01:43.and both the Dow and S 500 suffered their worst falls
:01:44. > :01:47.The Nasdaq had its biggest loss for almost a year.
:01:48. > :01:51.In fact the last time the Nasdaq fell this much was on June 24 -
:01:52. > :01:59.The US dollar has also tumbled to the lowest in six months -
:02:00. > :02:12.This is the US Dollar against 10 leading currencies over the past
:02:13. > :02:16.year - as you can see it's lost all its gains since Donald Trump
:02:17. > :02:20.became President and is now back to where it was in November last
:02:21. > :02:22.year, around the time of the election.
:02:23. > :02:24.Some analysts say this correction was inevitable.
:02:25. > :02:26.I think the Trump trade was largely a group fantasy,
:02:27. > :02:29.so I don't really know that it was all that deeply
:02:30. > :02:32.or well-rooted at any point, to be honest...
:02:33. > :02:35.Part of, a significant part of what's produced the six month
:02:36. > :02:38.market rally is the notion that we're going to have radical
:02:39. > :02:39.deregulation particularly, but not exclusively,
:02:40. > :02:42.around financial issues, and we're going to have massive tax
:02:43. > :02:44.cuts, particularly, but not exclusively for large companies.
:02:45. > :02:47.The weaker the president is, the less likely you are to get those
:02:48. > :02:51.tax cuts, and some of those premiums start coming out of the market.
:02:52. > :02:53.And I think that's what we're seeing right now.
:02:54. > :03:01.Jeremy Stretch is market strategist at CIBC World Markets.
:03:02. > :03:08.Good morning. We have talked about this many times since November. We
:03:09. > :03:15.knew that some kind of correction would be coming. All the promises
:03:16. > :03:23.have not materialised, deregulation of banking, tax cuts, bringing back
:03:24. > :03:27.ports of cash from overseas, they are just not coming through? That's
:03:28. > :03:35.right. We have seen a lot of promises on the agenda, ultimately
:03:36. > :03:41.investors have reacted to that. The fact that we have seen this slew of
:03:42. > :03:45.allegations or uncertainties, not just relating to Russia at the
:03:46. > :03:50.difficulties that the Trump administration felt, healthcare for
:03:51. > :03:55.example, that has pushed this reform agenda further back down the
:03:56. > :03:59.process. Ultimately, it is the case of realisation that the great hopes
:04:00. > :04:07.and dreams of an enormous fiscal boost to drive the economy on a fast
:04:08. > :04:11.at trajectory has been postponed. In the last 48 hours, it has become
:04:12. > :04:17.very intense because of the nature of the controversy surrounding the
:04:18. > :04:22.Trump administration. Some people out there say that we could see an
:04:23. > :04:26.impeachment. There is that kind of conversation going on, that does not
:04:27. > :04:31.bode well for markets around the world? We have seen the same story
:04:32. > :04:37.in Asia and Europe? Indeed. Political instability is one of the
:04:38. > :04:41.greatest threats to any market. We have seen in the last 24 hours has
:04:42. > :04:47.amplified that. The announcement of Robert Mueller does appear to have
:04:48. > :04:51.provided at least a little bit of temporary calm. Look into the
:04:52. > :04:57.future, it looks as though they may have found some stability. It is
:04:58. > :05:03.fascinating, despite this slew of uncertainty that has been emanating
:05:04. > :05:10.around the White House, market advertisers have been really high.
:05:11. > :05:19.Volatility trading has been very low. Perhaps it is a temporary blip.
:05:20. > :05:23.Thank you for coming in and providing an analysis. We will show
:05:24. > :05:25.you how Asia is staring at the end of the programme. It is being felt
:05:26. > :05:29.in Asian trading as well. We are also looking at Alibaba -
:05:30. > :05:32.the Chinese e-commerce giant that has been described as the country's
:05:33. > :05:36.eBay and Amazon rolled into one. It certainly makes more revenue
:05:37. > :05:38.than both put together. It's expected to report another jump
:05:39. > :05:41.in profits later today, its shares have soared since it
:05:42. > :05:45.floated in New York and it now has a stock market value
:05:46. > :05:47.of some $300 billion. But the vast majority
:05:48. > :05:50.of its business is in China - something its billionaire founder
:05:51. > :06:08.Jack Ma wants to change. A great entrepreneur, one of the
:06:09. > :06:16.best in the world. For President Trump, the best way to show his love
:06:17. > :06:22.for this country is to make it easier for Americans to sell their
:06:23. > :06:27.wares to China. This sneaker shop is an example of that. It has a
:06:28. > :06:31.physical store, but 90% of its business is done online. Since
:06:32. > :06:36.August, they have been selling on Alibaba. That has been a big boost
:06:37. > :06:42.to their Empire. We earned over $100 million this year. They run like a
:06:43. > :06:50.start-up. That has been really refreshing. We are not dealing with
:06:51. > :06:56.lots of competition. They treat us like we are a trusted,
:06:57. > :07:00.multibillion-dollar company. The leader of China's biggest e-commerce
:07:01. > :07:05.retailer has big ambitions. He wants to bring a million American
:07:06. > :07:11.businesses to China and 2 billion customers in next decade. There have
:07:12. > :07:17.been talking about making a big push out of China for the last several
:07:18. > :07:23.years. Perhaps even prior to that, when they filed to become public a
:07:24. > :07:27.number of years ago. You look at the revenue, it is almost entirely
:07:28. > :07:31.contributed by China. They may well have aspirations and they may well
:07:32. > :07:38.talk about that, but the numbers suggest there is a lot of work to be
:07:39. > :07:42.done. The chief President is not afraid of a little hard work. He
:07:43. > :07:44.will be in the US next month to make is pitched directly to the
:07:45. > :07:51.businesses. -- his pitch. To Japan now where in the few hours
:07:52. > :07:59.official figures show the economic growth picking up fast -
:08:00. > :08:02.in fact, much better than expected. Japan's economy grew at an annual
:08:03. > :08:05.rate of 2.2% in the first three months of the year -
:08:06. > :08:09.up 0.5% on the last quarter of 2016. It's the fifth quarter in a row that
:08:10. > :08:12.growth has improved - that's the best run
:08:13. > :08:15.in more than a decade. So does it mean that
:08:16. > :08:17.Prime Minister Shinzo Abe's massive stimulus programme has
:08:18. > :08:23.finally done the trick? Joining us now, Hiro Shirakawa,
:08:24. > :08:35.Chief Economist, Japan, Thank you for being on the
:08:36. > :08:40.programme. Good afternoon, in Japan! Give us your take on these numbers
:08:41. > :08:47.and what you think about how the Japanese economy is faring? First of
:08:48. > :08:52.all, it is true that the economy is doing quite well. If you look at the
:08:53. > :09:02.GDP numbers, it is. There are two risks. One is the global outlook,
:09:03. > :09:09.the US situation is getting messy. Number two, we tend to think that
:09:10. > :09:16.any fiscal stimulus, it cannot be sustained. Projects are not
:09:17. > :09:21.necessarily about doing well in stimulating the economy. So we think
:09:22. > :09:25.those are the two risks. Despite the fact that the economy seems to be
:09:26. > :09:29.heading in the right direction, there still seems to be concerned
:09:30. > :09:37.about the Japanese economy. What needs to be done now? I think that
:09:38. > :09:42.the country has done a massive... They have done a monetary easing. We
:09:43. > :09:49.have experienced or implemented a large number of fiscal stimulus
:09:50. > :09:56.packages. Still, economists and others. We now shift our focus to
:09:57. > :09:59.economic reforms and we tend to think that Labour market reforms
:10:00. > :10:07.should be the most important thing, because we are now suffering in
:10:08. > :10:14.their sales industry. We tend to think that Shinzo Abe house to shift
:10:15. > :10:27.his focus on the Labour market and stimulate productivity. Thank you
:10:28. > :10:31.for your time today. US and EU officials have decided against a
:10:32. > :10:35.laptop ban on flights from Europe. That was after a meeting to discuss
:10:36. > :10:40.the threats to aviation security. They said other measures were still
:10:41. > :10:44.being considered. A previously said they were looking at extending a
:10:45. > :10:48.Europewide ban on electronics on flights from eight mostly Muslim
:10:49. > :10:50.countries. The measure was introduced over fears that a bomb
:10:51. > :11:07.could be concealed in a device. Looking at the Asian markets now,
:11:08. > :11:12.nearly all of them are falling. Japan is down, a lot to do with the
:11:13. > :11:20.fact that the yen has strengthened in value in the last 48 hours. You
:11:21. > :11:29.are now up-to-date, I will see you soon.
:11:30. > :11:34.Representatives of Britain's GPs say the system of local family medical