14/07/2017 World Business Report

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


Now it's time for World Business Report.


Wall Street's giants have been getting a bump from Trump,


They conquered Asia and now they're heading for Africa.


We look at the unstoppable rise of the Tuk Tuk.


In a moment, Singapore narrowly avoids recession.


First, we start on Wall Street where three of the giants of US


banking report their results later today


and we are talking about Wells Fargo,


Citigroup and, the biggest of them all, JPMorgan Chase.


Investors have been betting that the good times are back


for America's bankers thanks to the election of Donald Trump.


That's helped stock markets hit record highs.


Today's results could give us a better idea.


Take a look at these share prices, especially JPMorgan Chase


They all got a boost from hopes he would help the US economy grow


The slow pace of policy change has, though, cooled that enthusiasm


In particular, President Trump has promised to scrap the heavy


regulation of banks brought in after the financial crisis in 2008.


But his new more lenient rules, the Financial Choice Act,


are unlikely to get through Congress in their current form.


What could help the case is that the top banks


all comfortably passed so called 'stress tests' last month.


It basically means they've been judged financially solid enough,


with ample money in reserve to withstand another financial


And those tests could be eased in future.


This week President Trump nominated this man,


financier Randal Quarles, for a leading role in overseeing


He's seen as much more sympathetic to big banks.


But Samira Hussain in New York warns investors could


Analysts aren't expecting this past quarter to be much of a scene. When


Mr Trump was elected, US markets were downright euphoric. The task


reforms and infrastructure spending were going to boost the economy. But


fast forward to July and not much has happened. That's leading many to


believe the Trump bump may be dead. So, what does that mean for banks?


Well, bank stocks were a big winner when it came to the Trump bump. One


of the best performing sectors. Now the reason for the Trump, the


legislative agenda of President Trump, is no longer looking as


plausible as before. Well, that has analysts wondering if this will mean


the gains made by banks may start to come down.


Chris Wheeler is banking analyst at Atlantic Equities.


What are you expecting? We will see earnings that are down quarter on


quarter. But that is common, it's a seasonal thing. It will also look


weaker compared to one year ago because there was a big surge after


the Brexit folk at the end of June, which made last year's numbers look


bad. So they won't be great numbers but they won't be bad. Will they


have a big impact on the share price? We have seen from the charts


that they have gone up nearly one third since President Trump was


elected. Or do you think this is not so great result have already been


priced in? I think they have a priced in. The management have been


warning about what's been going on. I think the other factors are that,


as touched on earlier, regulation or easing up of regulation, the stress


tests which allow banks to pay higher dividends, this is all


driving the sector, along with more interest rate rises. Let's talk


about that possible easing of regulations. What does it include?


It mean for the banks? A lot of the financial choices about consumers


and that was a big factor. I think what the Treasury has been saying is


that there can be a lot of things done outside legislation to ease


some of the burden that was put in place after the crisis, especially


allowing some of the legislatures the banks have to keep. So they have


to look outside of Congress. Let's talk about Randal Quarles, the new


guy coming into the Federal Reserve. He is being seen as potentially


quite friendly towards the big corporations? Yes. I think the view


taken is that the US authorities did a fairly good job of getting the


banking sector back into shape after the crisis. A better job than we did


here in Europe. But some of the regulations have gone to the stage


where they are worried about whether the cancer serve the wider economy,


if it gets the economic growth that Mr Trump wants. I think that's what


Randal Quarles will focus on. Weekly, looking forward, where the


UC US banks going in the 6- 12 months? They have had a really good


run in the last month. The sector is up since the first of June and it is


going higher. There are so many factors behind this. Away from just


the financial results, which are positive. OK, thank you very much


for your time. who needs four wheels


when you can have three? The tuk-tuk or auto rickshaw started


life in Italy in 1947, but now dominates Asian roads


from India to Indonesia to Thailand. Now Indian manufacturer ATUL


is punting the little machine as a cheap solution to Africa's


transport problems. It has set up assembly plants


across the continent, we went to one in Port


Elizabeth, South Africa. Behind me are the vehicles from


India and they are flown into a full manual assembly line. That assembly


line is purposefully designed because it does create employment


and it gives us the necessary personal control that we have in the


assembly line. We effectively put together in deciding to go down this


route check sheet and coincidently after doing that this little vehicle


ticked all of those boxes. The top three is unemployment, the second is


the ability to empower people to start micro- businesses. Not only


locally, in metropolitan areas and in rural areas. Thirdly, the


contribution to society. Now, the whole idea is to try to get


different vehicles to provide specific services to these


communities, so we are trying to ensure that in those communities


where you don't have transport infrastructure we have smaller


vehicles to navigate and this will solve a lot of the problems we see.


This happens all over Africa. Tuk-tuk was originally seen as a


novelty in Africa as a whole. But as we've seen, the acceptance of the


product and the capability of the product, both from a public


transport and workforce perspective, in delivering goods, I think we've


seen the growth in Africa grow exponentially as acceptance becomes


a reality. Let's go to Singapore now,


where the economy has narrowly It grew slightly in the last quarter


after a sharp contraction in the first three


months of the year. Remember, two quarters


of contraction in a row Sharanjit Leyl is looking at this


for us in Singapore a sigh Yes, a little bit of a side. --


sigh. It was thanks to a pickup in global demand that led to Singapore


narrowly dodging this recession. It was specifically growth in its tech


exports. Its electronics, its position in engineering industries.


But growth at 2.5% for the second quarter was actually less than


expected. Now what's interesting is the economy here is very trade


reliant. It usually access a good bellwether to how the global economy


is forming and analysts have been voicing lots of concerns about the


sustainability of Singapore's growth. It is very dependent on an


electronics. They say in the future they will have to rely on things


bike services to help offset any slowdown. We also saw for instant


the construction sector was weak and economists are saying essentially


that they are looking for a slightly better 2017, but are still remaining


cautious on how factors outside Singapore Goh. So really it is all


due to the global economy. All right, thank you. Before we go, a


quick look at the markets. It has been a good week for the


markets. Asia ending up for the fifth day in a row. The oil prices


down, that's over continued concerns about oversupply. But we've had high


demand in China for oil, which is what has stopped it from falling


further. You can get in touch with us on Twitter.


Police in the south-west of England have launched the UK's first


dedicated drone unit to help them find missing people,