19/05/2017 World Business Report


19/05/2017

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France gets ready for Macronomics, but does the new president have the

:00:19.:00:27.

right formula to bring back jobs and growth?

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Tense times for Mexico as its two-decade old trade deal

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Welcome to World Business Report, I'm Aaron Heslehurst.

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We have got about nine minutes, my very last early-morning programme

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for you all before I moved to a new show. -- move.

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Asia Pacific trade ministers hope to salvage the Trans Pacific

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Partnership after President Trump pulled the plug.

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We start in France, where the new President,

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Emmanuel Macron, says he expects no honeymoon from the public

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He now has try and to win a majority in next month's parliamentary

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elections, and implement the economic policy he says can turn

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So what is Macron Economics, and can it solve France's problems?

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Macron calls himself neither right nor left -

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and sure enough, the team he announced on Wednesday

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is a diverse mix of figures from parties on the left,

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He says his economic policy is based on the 'Nordic' model.

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Basically it mixes spending cuts on the one hand

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He plans to cut spending by 60 billion euros over

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The civil service will be hit hard - 120,000 jobs will go.

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But over the same period, he has pledged 50 billion euros

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That includes cutting the corporate tax rate from 33% to 25% -

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and lowering the tax burden on households.

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It's a similar story with free trade.

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As a former banker, he's broadly for it.

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But he's also talked about creating a protective Europe.

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He wants EU governments to agree to 'buy European' -

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and stop non-EU companies taking over key industries.

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Finally, the awkward question of labour reform.

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France's jobless rate is almost double that of Germany's at 9.6%.

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Many employers blame strict labour laws, like the 35-hour working week.

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But they are fiercely defended by unions.

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You've guessed it, somewhere in-between.

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He wants to keep the 35-hour work week - but change the way the law

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is applied to make it easier to hire and fire.

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Hopefully we are going to speak to our guest, maybe today or tomorrow?

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I am looking at the screens here, next tower. -- next hour. We will go

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to Paris next tower. -- hour. We are also in Mexico,

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after the Trump administration notified Congress on Thursday

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that it will start talks to renegotiate the North America

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Free Trade Agreement "as soon President Trump has called the 1990s

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Nafta deal with Canada and Mexico a killer of US jobs,

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and made shaking it up It's a big worry for Mexico's

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huge auto industry, and the global carmakers that have

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invested heavily there as Michelle This port in central Mexico. The

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auto industry has been booming for years, they are one of the largest

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exporters in the world. We import a lot of cars, we export a lot as

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well. Or disprove under threat? It was meant to be a shining example of

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free trade, but today it is a monument to protectionism. This is

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all that is left of an attempt to make a plenty of -- could this boom

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be under threat? This man made a deal with forward, for a while, life

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was good. But it didn't last. Some people came to the planned and said

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there was no entry. Trucks couldn't go in, it had all collapsed. Not

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just for the trucks, but for everyone. During his campaign,

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Donald Trump complained of bad trade, making the issue his own. We

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are living through the greatest jobs left in the world. His attempt to

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move production to the US seemed to yield results. Forward is keen to

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emphasise the market forces which have helped scrap plants in Mexico.

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-- Ford. At the end of the day, we have to do what is right for our

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business. We have to look at tax policy, trade policy and the trot.

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That is the business environment we we're too. -- tax policy, et cetera.

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The car industry has every reason to be worried. People are more

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pessimistic about the future of the economy than they were in the great

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recession. Everyone is scared. The economic advantages which created

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the car boom have not disappeared. A more protectionist US administration

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would undoubtedly do great harm to many livelihoods in this part of

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Mexico. Staying with trade concerns around

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Donald Trump's policy, the leaders of APEC gathered at a summit in

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Vietnam. They are pushing to save the transpacific partnership trade

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deal. Pulling out of that was one of the first actions by President

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Trump. Heading over to my favourite man on television. Great to see you,

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my friend! We are not going to talk that much. I have been hearing bad

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news that you are leaving the mornings! I will be doing my own

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show later in the day. You will be asleep. I need to ask you this, what

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is going on? Is this the leaders of a pack trying to reignite the deal

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between themselves, or are they trying to get America back on board?

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So far, America is out of the equation. You have the transpacific

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11, they are trying to resurrect the Trans-Pacific Partnership. The

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members will be meeting on the sidelines of the APEC trade

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ministers meeting in discussing how to revive this arrangement which was

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ditched by Donald Trump. They are reluctant to move ahead without the

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Unite dates, Japan is that the forefront of this push along with

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New Zealand -- united states. This could help the position of the

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members in bilateral talks with the United States. Hopefully we will

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have more information by Monday if indeed Japan and New Zealand will

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push ahead with the other nine member countries. Once this gets

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started, maybe we can do some trading with our programmes! Let me

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just leave you with this. In other news: Greece's parliament

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has approved a new package of austerity measures needed

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to release the next instalment Protesters clashed with police

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in central Athens as MPs voted on the tax rises and

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further cuts to pensions. Eurozone finance ministers meet

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on Monday to decide if Greece has done enough to receive a e7.5

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billion loan plus debt relief. Trading was briefly halted earlier

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today after circuit rakers kicked in. The president was forced to deny

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a report that he had paid off a witness in a huge corruption

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scandal. An investigation has been of a ride into those allegations. --

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