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