14/07/2017

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:00:00. > :00:00.Thursday. The UN said the handling of his case was a domestic matter.

:00:00. > :00:16.Now it's time for World Business Report.

:00:17. > :00:21.Wall Street's giants have been getting a bump from Trump,

:00:22. > :00:29.They conquered Asia and now they're heading for Africa.

:00:30. > :00:35.We look at the unstoppable rise of the Tuk Tuk.

:00:36. > :00:50.In a moment, Singapore narrowly avoids recession.

:00:51. > :00:53.First, we start on Wall Street where three of the giants of US

:00:54. > :00:55.banking report their results later today

:00:56. > :01:00.and we are talking about Wells Fargo,

:01:01. > :01:02.Citigroup and, the biggest of them all, JPMorgan Chase.

:01:03. > :01:05.Investors have been betting that the good times are back

:01:06. > :01:08.for America's bankers thanks to the election of Donald Trump.

:01:09. > :01:10.That's helped stock markets hit record highs.

:01:11. > :01:13.Today's results could give us a better idea.

:01:14. > :01:17.Take a look at these share prices, especially JPMorgan Chase

:01:18. > :01:22.They all got a boost from hopes he would help the US economy grow

:01:23. > :01:30.The slow pace of policy change has, though, cooled that enthusiasm

:01:31. > :01:33.In particular, President Trump has promised to scrap the heavy

:01:34. > :01:36.regulation of banks brought in after the financial crisis in 2008.

:01:37. > :01:38.But his new more lenient rules, the Financial Choice Act,

:01:39. > :01:41.are unlikely to get through Congress in their current form.

:01:42. > :01:44.What could help the case is that the top banks

:01:45. > :01:46.all comfortably passed so called 'stress tests' last month.

:01:47. > :01:49.It basically means they've been judged financially solid enough,

:01:50. > :01:51.with ample money in reserve to withstand another financial

:01:52. > :01:57.And those tests could be eased in future.

:01:58. > :02:00.This week President Trump nominated this man,

:02:01. > :02:02.financier Randal Quarles, for a leading role in overseeing

:02:03. > :02:10.He's seen as much more sympathetic to big banks.

:02:11. > :02:12.But Samira Hussain in New York warns investors could

:02:13. > :02:22.Analysts aren't expecting this past quarter to be much of a scene. When

:02:23. > :02:26.Mr Trump was elected, US markets were downright euphoric. The task

:02:27. > :02:31.reforms and infrastructure spending were going to boost the economy. But

:02:32. > :02:37.fast forward to July and not much has happened. That's leading many to

:02:38. > :02:42.believe the Trump bump may be dead. So, what does that mean for banks?

:02:43. > :02:47.Well, bank stocks were a big winner when it came to the Trump bump. One

:02:48. > :02:52.of the best performing sectors. Now the reason for the Trump, the

:02:53. > :02:56.legislative agenda of President Trump, is no longer looking as

:02:57. > :03:01.plausible as before. Well, that has analysts wondering if this will mean

:03:02. > :03:12.the gains made by banks may start to come down.

:03:13. > :03:14.Chris Wheeler is banking analyst at Atlantic Equities.

:03:15. > :03:22.What are you expecting? We will see earnings that are down quarter on

:03:23. > :03:26.quarter. But that is common, it's a seasonal thing. It will also look

:03:27. > :03:31.weaker compared to one year ago because there was a big surge after

:03:32. > :03:35.the Brexit folk at the end of June, which made last year's numbers look

:03:36. > :03:39.bad. So they won't be great numbers but they won't be bad. Will they

:03:40. > :03:43.have a big impact on the share price? We have seen from the charts

:03:44. > :03:46.that they have gone up nearly one third since President Trump was

:03:47. > :03:50.elected. Or do you think this is not so great result have already been

:03:51. > :03:53.priced in? I think they have a priced in. The management have been

:03:54. > :03:58.warning about what's been going on. I think the other factors are that,

:03:59. > :04:03.as touched on earlier, regulation or easing up of regulation, the stress

:04:04. > :04:08.tests which allow banks to pay higher dividends, this is all

:04:09. > :04:12.driving the sector, along with more interest rate rises. Let's talk

:04:13. > :04:18.about that possible easing of regulations. What does it include?

:04:19. > :04:25.It mean for the banks? A lot of the financial choices about consumers

:04:26. > :04:29.and that was a big factor. I think what the Treasury has been saying is

:04:30. > :04:33.that there can be a lot of things done outside legislation to ease

:04:34. > :04:38.some of the burden that was put in place after the crisis, especially

:04:39. > :04:43.allowing some of the legislatures the banks have to keep. So they have

:04:44. > :04:48.to look outside of Congress. Let's talk about Randal Quarles, the new

:04:49. > :04:51.guy coming into the Federal Reserve. He is being seen as potentially

:04:52. > :04:59.quite friendly towards the big corporations? Yes. I think the view

:05:00. > :05:03.taken is that the US authorities did a fairly good job of getting the

:05:04. > :05:08.banking sector back into shape after the crisis. A better job than we did

:05:09. > :05:11.here in Europe. But some of the regulations have gone to the stage

:05:12. > :05:15.where they are worried about whether the cancer serve the wider economy,

:05:16. > :05:18.if it gets the economic growth that Mr Trump wants. I think that's what

:05:19. > :05:24.Randal Quarles will focus on. Weekly, looking forward, where the

:05:25. > :05:28.UC US banks going in the 6- 12 months? They have had a really good

:05:29. > :05:33.run in the last month. The sector is up since the first of June and it is

:05:34. > :05:38.going higher. There are so many factors behind this. Away from just

:05:39. > :05:41.the financial results, which are positive. OK, thank you very much

:05:42. > :05:43.for your time. who needs four wheels

:05:44. > :05:51.when you can have three? The tuk-tuk or auto rickshaw started

:05:52. > :05:55.life in Italy in 1947, but now dominates Asian roads

:05:56. > :05:57.from India to Indonesia to Thailand. Now Indian manufacturer ATUL

:05:58. > :06:00.is punting the little machine as a cheap solution to Africa's

:06:01. > :06:02.transport problems. It has set up assembly plants

:06:03. > :06:05.across the continent, we went to one in Port

:06:06. > :06:21.Elizabeth, South Africa. Behind me are the vehicles from

:06:22. > :06:26.India and they are flown into a full manual assembly line. That assembly

:06:27. > :06:29.line is purposefully designed because it does create employment

:06:30. > :06:33.and it gives us the necessary personal control that we have in the

:06:34. > :06:37.assembly line. We effectively put together in deciding to go down this

:06:38. > :06:47.route check sheet and coincidently after doing that this little vehicle

:06:48. > :06:50.ticked all of those boxes. The top three is unemployment, the second is

:06:51. > :06:55.the ability to empower people to start micro- businesses. Not only

:06:56. > :07:00.locally, in metropolitan areas and in rural areas. Thirdly, the

:07:01. > :07:04.contribution to society. Now, the whole idea is to try to get

:07:05. > :07:11.different vehicles to provide specific services to these

:07:12. > :07:19.communities, so we are trying to ensure that in those communities

:07:20. > :07:23.where you don't have transport infrastructure we have smaller

:07:24. > :07:25.vehicles to navigate and this will solve a lot of the problems we see.

:07:26. > :07:52.This happens all over Africa. Tuk-tuk was originally seen as a

:07:53. > :07:56.novelty in Africa as a whole. But as we've seen, the acceptance of the

:07:57. > :08:00.product and the capability of the product, both from a public

:08:01. > :08:07.transport and workforce perspective, in delivering goods, I think we've

:08:08. > :08:08.seen the growth in Africa grow exponentially as acceptance becomes

:08:09. > :08:13.a reality. Let's go to Singapore now,

:08:14. > :08:15.where the economy has narrowly It grew slightly in the last quarter

:08:16. > :08:21.after a sharp contraction in the first three

:08:22. > :08:23.months of the year. Remember, two quarters

:08:24. > :08:25.of contraction in a row Sharanjit Leyl is looking at this

:08:26. > :08:41.for us in Singapore a sigh Yes, a little bit of a side. --

:08:42. > :08:44.sigh. It was thanks to a pickup in global demand that led to Singapore

:08:45. > :08:51.narrowly dodging this recession. It was specifically growth in its tech

:08:52. > :08:56.exports. Its electronics, its position in engineering industries.

:08:57. > :09:02.But growth at 2.5% for the second quarter was actually less than

:09:03. > :09:06.expected. Now what's interesting is the economy here is very trade

:09:07. > :09:11.reliant. It usually access a good bellwether to how the global economy

:09:12. > :09:15.is forming and analysts have been voicing lots of concerns about the

:09:16. > :09:22.sustainability of Singapore's growth. It is very dependent on an

:09:23. > :09:26.electronics. They say in the future they will have to rely on things

:09:27. > :09:30.bike services to help offset any slowdown. We also saw for instant

:09:31. > :09:36.the construction sector was weak and economists are saying essentially

:09:37. > :09:40.that they are looking for a slightly better 2017, but are still remaining

:09:41. > :09:45.cautious on how factors outside Singapore Goh. So really it is all

:09:46. > :09:50.due to the global economy. All right, thank you. Before we go, a

:09:51. > :09:57.quick look at the markets. It has been a good week for the

:09:58. > :10:02.markets. Asia ending up for the fifth day in a row. The oil prices

:10:03. > :10:09.down, that's over continued concerns about oversupply. But we've had high

:10:10. > :10:13.demand in China for oil, which is what has stopped it from falling

:10:14. > :10:24.further. You can get in touch with us on Twitter.

:10:25. > :10:27.Police in the south-west of England have launched the UK's first

:10:28. > :10:31.dedicated drone unit to help them find missing people,