14/07/2017 World Business Report


14/07/2017

The latest business news with informed analysis from the world's financial centres.


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

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Now it's time for World Business Report.

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

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

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We look at the unstoppable rise of the Tuk Tuk.

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In a moment, Singapore narrowly avoids recession.

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

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banking report their results later today

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and we are talking about Wells Fargo,

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

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Investors have been betting that the good times are back

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

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That's helped stock markets hit record highs.

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Today's results could give us a better idea.

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Take a look at these share prices, especially JPMorgan Chase

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

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

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In particular, President Trump has promised to scrap the heavy

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

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

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are unlikely to get through Congress in their current form.

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What could help the case is that the top banks

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

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

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with ample money in reserve to withstand another financial

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And those tests could be eased in future.

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This week President Trump nominated this man,

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financier Randal Quarles, for a leading role in overseeing

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

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But Samira Hussain in New York warns investors could

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

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

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

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

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

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

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

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legislative agenda of President Trump, is no longer looking as

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

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the gains made by banks may start to come down.

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Chris Wheeler is banking analyst at Atlantic Equities.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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for your time. who needs four wheels

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

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life in Italy in 1947, but now dominates Asian roads

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from India to Indonesia to Thailand. Now Indian manufacturer ATUL

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

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transport problems. It has set up assembly plants

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across the continent, we went to one in Port

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Elizabeth, South Africa. Behind me are the vehicles from

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

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line is purposefully designed because it does create employment

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

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

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route check sheet and coincidently after doing that this little vehicle

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

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

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

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

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different vehicles to provide specific services to these

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

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where you don't have transport infrastructure we have smaller

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

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

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

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

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

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seen the growth in Africa grow exponentially as acceptance becomes

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a reality. Let's go to Singapore now,

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

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after a sharp contraction in the first three

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months of the year. Remember, two quarters

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of contraction in a row Sharanjit Leyl is looking at this

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

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

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

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exports. Its electronics, its position in engineering industries.

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

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

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

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

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

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

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

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the construction sector was weak and economists are saying essentially

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

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

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

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

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

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

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

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

:10:14.:10:24.

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

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dedicated drone unit to help them find missing people,

:10:28.:10:31.