:00:19. > :00:27.France gets ready for Macronomics, but does the new president have the
:00:28. > :00:30.right formula to bring back jobs and growth?
:00:31. > :00:34.Tense times for Mexico as its two-decade old trade deal
:00:35. > :00:49.Welcome to World Business Report, I'm Aaron Heslehurst.
:00:50. > :00:59.We have got about nine minutes, my very last early-morning programme
:01:00. > :01:07.for you all before I moved to a new show. -- move.
:01:08. > :01:11.Asia Pacific trade ministers hope to salvage the Trans Pacific
:01:12. > :01:16.Partnership after President Trump pulled the plug.
:01:17. > :01:19.We start in France, where the new President,
:01:20. > :01:22.Emmanuel Macron, says he expects no honeymoon from the public
:01:23. > :01:27.He now has try and to win a majority in next month's parliamentary
:01:28. > :01:30.elections, and implement the economic policy he says can turn
:01:31. > :01:38.So what is Macron Economics, and can it solve France's problems?
:01:39. > :01:40.Macron calls himself neither right nor left -
:01:41. > :01:43.and sure enough, the team he announced on Wednesday
:01:44. > :01:46.is a diverse mix of figures from parties on the left,
:01:47. > :01:57.He says his economic policy is based on the 'Nordic' model.
:01:58. > :02:02.Basically it mixes spending cuts on the one hand
:02:03. > :02:06.He plans to cut spending by 60 billion euros over
:02:07. > :02:21.The civil service will be hit hard - 120,000 jobs will go.
:02:22. > :02:24.But over the same period, he has pledged 50 billion euros
:02:25. > :02:29.That includes cutting the corporate tax rate from 33% to 25% -
:02:30. > :02:30.and lowering the tax burden on households.
:02:31. > :02:32.It's a similar story with free trade.
:02:33. > :02:34.As a former banker, he's broadly for it.
:02:35. > :02:37.But he's also talked about creating a protective Europe.
:02:38. > :02:52.He wants EU governments to agree to 'buy European' -
:02:53. > :02:55.and stop non-EU companies taking over key industries.
:02:56. > :03:11.Finally, the awkward question of labour reform.
:03:12. > :03:14.France's jobless rate is almost double that of Germany's at 9.6%.
:03:15. > :03:17.Many employers blame strict labour laws, like the 35-hour working week.
:03:18. > :03:19.But they are fiercely defended by unions.
:03:20. > :03:24.You've guessed it, somewhere in-between.
:03:25. > :03:28.He wants to keep the 35-hour work week - but change the way the law
:03:29. > :03:52.is applied to make it easier to hire and fire.
:03:53. > :04:00.Hopefully we are going to speak to our guest, maybe today or tomorrow?
:04:01. > :04:08.I am looking at the screens here, next tower. -- next hour. We will go
:04:09. > :04:19.to Paris next tower. -- hour. We are also in Mexico,
:04:20. > :04:22.after the Trump administration notified Congress on Thursday
:04:23. > :04:24.that it will start talks to renegotiate the North America
:04:25. > :04:27.Free Trade Agreement "as soon President Trump has called the 1990s
:04:28. > :04:31.Nafta deal with Canada and Mexico a killer of US jobs,
:04:32. > :04:34.and made shaking it up It's a big worry for Mexico's
:04:35. > :04:37.huge auto industry, and the global carmakers that have
:04:38. > :04:59.invested heavily there as Michelle This port in central Mexico. The
:05:00. > :05:05.auto industry has been booming for years, they are one of the largest
:05:06. > :05:09.exporters in the world. We import a lot of cars, we export a lot as
:05:10. > :05:17.well. Or disprove under threat? It was meant to be a shining example of
:05:18. > :05:27.free trade, but today it is a monument to protectionism. This is
:05:28. > :05:40.all that is left of an attempt to make a plenty of -- could this boom
:05:41. > :05:47.be under threat? This man made a deal with forward, for a while, life
:05:48. > :05:51.was good. But it didn't last. Some people came to the planned and said
:05:52. > :05:56.there was no entry. Trucks couldn't go in, it had all collapsed. Not
:05:57. > :06:00.just for the trucks, but for everyone. During his campaign,
:06:01. > :06:05.Donald Trump complained of bad trade, making the issue his own. We
:06:06. > :06:13.are living through the greatest jobs left in the world. His attempt to
:06:14. > :06:19.move production to the US seemed to yield results. Forward is keen to
:06:20. > :06:29.emphasise the market forces which have helped scrap plants in Mexico.
:06:30. > :06:33.-- Ford. At the end of the day, we have to do what is right for our
:06:34. > :06:37.business. We have to look at tax policy, trade policy and the trot.
:06:38. > :06:49.That is the business environment we we're too. -- tax policy, et cetera.
:06:50. > :06:54.The car industry has every reason to be worried. People are more
:06:55. > :06:59.pessimistic about the future of the economy than they were in the great
:07:00. > :07:06.recession. Everyone is scared. The economic advantages which created
:07:07. > :07:12.the car boom have not disappeared. A more protectionist US administration
:07:13. > :07:13.would undoubtedly do great harm to many livelihoods in this part of
:07:14. > :07:27.Mexico. Staying with trade concerns around
:07:28. > :07:31.Donald Trump's policy, the leaders of APEC gathered at a summit in
:07:32. > :07:38.Vietnam. They are pushing to save the transpacific partnership trade
:07:39. > :07:42.deal. Pulling out of that was one of the first actions by President
:07:43. > :07:53.Trump. Heading over to my favourite man on television. Great to see you,
:07:54. > :07:57.my friend! We are not going to talk that much. I have been hearing bad
:07:58. > :08:06.news that you are leaving the mornings! I will be doing my own
:08:07. > :08:13.show later in the day. You will be asleep. I need to ask you this, what
:08:14. > :08:18.is going on? Is this the leaders of a pack trying to reignite the deal
:08:19. > :08:25.between themselves, or are they trying to get America back on board?
:08:26. > :08:33.So far, America is out of the equation. You have the transpacific
:08:34. > :08:43.11, they are trying to resurrect the Trans-Pacific Partnership. The
:08:44. > :08:48.members will be meeting on the sidelines of the APEC trade
:08:49. > :08:51.ministers meeting in discussing how to revive this arrangement which was
:08:52. > :08:56.ditched by Donald Trump. They are reluctant to move ahead without the
:08:57. > :09:09.Unite dates, Japan is that the forefront of this push along with
:09:10. > :09:13.New Zealand -- united states. This could help the position of the
:09:14. > :09:17.members in bilateral talks with the United States. Hopefully we will
:09:18. > :09:21.have more information by Monday if indeed Japan and New Zealand will
:09:22. > :09:31.push ahead with the other nine member countries. Once this gets
:09:32. > :09:36.started, maybe we can do some trading with our programmes! Let me
:09:37. > :09:39.just leave you with this. In other news: Greece's parliament
:09:40. > :09:41.has approved a new package of austerity measures needed
:09:42. > :09:44.to release the next instalment Protesters clashed with police
:09:45. > :09:48.in central Athens as MPs voted on the tax rises and
:09:49. > :09:50.further cuts to pensions. Eurozone finance ministers meet
:09:51. > :10:01.on Monday to decide if Greece has done enough to receive a e7.5
:10:02. > :10:19.billion loan plus debt relief. Trading was briefly halted earlier
:10:20. > :10:25.today after circuit rakers kicked in. The president was forced to deny
:10:26. > :10:35.a report that he had paid off a witness in a huge corruption
:10:36. > :10:36.scandal. An investigation has been of a ride into those allegations. --