:00:16. > :00:21.Markets have surged - but six months on -
:00:22. > :00:23.the President's yet to deliver on growth,
:00:24. > :00:28.How long will Wall Street's patience last?
:00:29. > :00:32.The European boss of Goldman Sachs tells us about his costly
:00:33. > :00:34.contingency plans- and why London will remain
:00:35. > :00:48.UK Foreign Secretary Boris Johnson is in Japan for talks
:00:49. > :00:50.where Brexit concerns are also set to dominate.
:00:51. > :00:54.we start in the US where as of Thursday,
:00:55. > :00:58.President Donald Trump has been in office for six months.
:00:59. > :01:00.He made some big promises on the US economy -
:01:01. > :01:02.inspiring a wave of optimism among investors.
:01:03. > :01:07.But most of them are still just that - promises.
:01:08. > :01:10.And some are now questioning the reality of Trumponomics,
:01:11. > :01:13.or to use the new catchphrase, MAGAnomics, - as in Make America
:01:14. > :01:20.The Dow Jones index surged on Mr Trump's election in November -
:01:21. > :01:23.and it has continued its upwards march after breaking
:01:24. > :01:29.through the 20,000 mark at the start of the year.
:01:30. > :01:33.It's up 3200 points or 17% since the election
:01:34. > :01:35.But political divisions are beginning to see the Trump
:01:36. > :01:42.Take his flagship policy - replacing the Affordable healthcare
:01:43. > :01:45.He's struggling to get fellow Republicans to agree
:01:46. > :01:50.One senior figure in the party is now warning it may take as long
:01:51. > :01:55.This has raised doubts over political support for some
:01:56. > :01:57.of his other plans - the ones that have got
:01:58. > :02:02.Cutting regulation in the energy and banking sectors,
:02:03. > :02:05.and the big one - his highly anticipated overhaul of the tax
:02:06. > :02:08.system that would see big cuts for business
:02:09. > :02:16.So what about the broader economy itself?
:02:17. > :02:19.President Trump promised to raise the GDP growth rate to 3% -
:02:20. > :02:21.a level it hasn't sustained since the 1990s.
:02:22. > :02:24.But six months in - that goal still looks
:02:25. > :02:27.In the first three months of this year -
:02:28. > :02:31.despite being revised up - the figure's less than half of that.
:02:32. > :02:34.And the rate for April to June is expected to be better -
:02:35. > :02:40.Earlier this week the President's frustration was clear at the lack
:02:41. > :02:48.For seven years you have promised the American people that
:02:49. > :02:53.you will repeal Obamacare, people are hurting.
:02:54. > :02:57.Inaction is not an option and I don't think we should leave
:02:58. > :03:00.town unless we have an health insurance plan and unless we can
:03:01. > :03:02.give our people great healthcare because we are close.
:03:03. > :03:26.Obamacare, the repeal of the Obamacare was supposed to be easy,
:03:27. > :03:29.the one that most Republicans have been talking about for seven years
:03:30. > :03:33.but they can't even get that through. It has been challenging.
:03:34. > :03:36.There are so many different views not only between the Democrats and
:03:37. > :03:40.the Republicans but within the Republican Party itself. Agreeing to
:03:41. > :03:48.a new plan has proven challenging and it demonstrates that Trump is
:03:49. > :03:52.not a good political operator. Many people within Congress and who, on
:03:53. > :03:56.his behalf, are trying to make it happen. But, yeah, it is not
:03:57. > :04:01.happening and it is troubling, I think, in terms of his agenda. Tax
:04:02. > :04:04.reform is the one that Wall Street was getting excited about, along
:04:05. > :04:08.with the regulation. They are struggling to get Obamacare through,
:04:09. > :04:13.surely tax reform will be an even bigger challenge? The market has
:04:14. > :04:16.accepted this already. The expectation on the timing of tax
:04:17. > :04:20.reform and on the breadth of it and extent and how powerful it is. It
:04:21. > :04:24.has all been well back in market terms. The market is not looking for
:04:25. > :04:28.that much in terms of tax reform. They are looking for something
:04:29. > :04:32.probably later this year, probably in Q4, maybe early next year. That
:04:33. > :04:38.there is no expectation of the big sort of plan that was laid out back
:04:39. > :04:45.in last year. Why do you think they have reduced their expectations?
:04:46. > :04:50.Well, you see, I think you have to understand, the market itself is not
:04:51. > :04:56.just about Trumponomics. There is a lot of liquidity out their. There
:04:57. > :04:59.are a central banks around the world were still printing money and, in
:05:00. > :05:03.fact, purchasing equity our newly created money. It is an Alice in
:05:04. > :05:10.Wonderland world, topsy-turvy economics. Pushes the market higher.
:05:11. > :05:17.Of course, the market can see that Donald Trump is struggling to get
:05:18. > :05:21.stuff through Congress. But is discussed in growth. President Trump
:05:22. > :05:26.would like to see 3% and we have not seen that sustained since the 1990s.
:05:27. > :05:31.They have had 1.4 from January to March, we expect higher for the next
:05:32. > :05:36.quarter. Should we judge him already on his failure to hit 3% a six-month
:05:37. > :05:42.long on off? Of course not. The first quarter in the US has seasonal
:05:43. > :05:46.pressures. It is often weak. You seen that happen since the GST I
:05:47. > :05:51.would not read too much into that. Of course it is too soon. Ataxia is,
:05:52. > :05:55.really, to have the full impact and to be honest, as we have just
:05:56. > :06:02.discussed, not much has come into being from his policy. I think it is
:06:03. > :06:07.way too early to judge. Do you think he will hit 3% and when? I don't
:06:08. > :06:10.think you will. I don't think he has demonstrated the ability to push
:06:11. > :06:12.through what he wants, it is not really happening. Thank you very
:06:13. > :06:14.much. We are also talking Brexit -
:06:15. > :06:17.because UK Prime Minister Theresa May has been hosting talks
:06:18. > :06:20.with British business leaders - after criticism her government
:06:21. > :06:23.is not addressing their worries. She told them she's aiming
:06:24. > :06:25.for a 'smooth orderly exit' from the European Union -promising
:06:26. > :06:28.a 'period of implementation in order Our business editor Simon Jack has
:06:29. > :06:35.been hearing from one of London's top banking bosses about the costly
:06:36. > :06:38.contingency plans HE is having to make - and the need
:06:39. > :06:51.for a transitional deal to be agreed We obviously have contingency plans
:06:52. > :06:56.which we have prepared. We got on to them after the referendum. They are
:06:57. > :07:02.detailed plans and we are moving down a path. One thing must insurers
:07:03. > :07:06.that come the end of March 2019, we are in a place to service our
:07:07. > :07:10.clients, whatever the outcome of the negotiations. We have contingency
:07:11. > :07:15.plans, we have offices in many European cities. Right now we have
:07:16. > :07:23.them in Paris, Stockholm, Madrid, Milan. We have banks in Paris and
:07:24. > :07:29.Frankfurt. We will work to buffer that up some what. It in the context
:07:30. > :07:34.of a contingency plan. London will remain a significant financial
:07:35. > :07:38.centre whatever the outcome of the discussions. We will maintain a
:07:39. > :07:43.significant presence in London. But as the rule requires us to have more
:07:44. > :07:49.on the continent, then we will have more on the continent. The financial
:07:50. > :07:53.conduct authority, to whom you submitted your plans, they said they
:07:54. > :07:58.thought banks would need to know what was going to happen this year,
:07:59. > :08:04.or get some certainty, some clarity from the government this before they
:08:05. > :08:11.start having to hit the contingency buttons. Is that right? The only way
:08:12. > :08:15.to describe the contingency plan is that we are buying in Torrance. I
:08:16. > :08:20.spend money every day to make sure that come March 2019I am open for
:08:21. > :08:26.business. Obviously, as each month goes by I spend more money. The
:08:27. > :08:32.certainty becomes less useful for me as we go further down the path. If I
:08:33. > :08:37.knew today, if I knew today that we would have a significant transition
:08:38. > :08:41.period, I could stop spending money. Taking out that insurance. I know I
:08:42. > :08:49.would always have time to transition my business. If they tell me, in
:08:50. > :08:53.February 2019, there will be a transition period, then has spent
:08:54. > :08:57.that money and it is not much use to me. At that point, a transition
:08:58. > :09:00.period does not help. The sooner we know the answer about whether they
:09:01. > :09:05.will or will not have a transition period, it will helpful. You need to
:09:06. > :09:07.know this year? The sooner the better.
:09:08. > :09:10.Let's go to Asia now and you may be wondering what UK
:09:11. > :09:13.Foreign Secretary Boris Johnson is doing here with a robot.
:09:14. > :09:15.Well, he's in Japan to discuss, among other things,
:09:16. > :09:18.trade relations ahead of Brexit and to reassure business chiefs
:09:19. > :09:21.who have made major investments in the UK.
:09:22. > :09:24.That's been the top story for our Asia business team today -
:09:25. > :09:35.Sharanjit Leyl in Singapore is following it for us.
:09:36. > :09:43.It is fairly oily and at the moment. As he saw there, he again his visit
:09:44. > :09:49.was a visit to the Robotics Centre in Tokyo. His meeting with his
:09:50. > :09:53.counterpart as we speak. They just had a press conference when he
:09:54. > :09:56.declared that the UK stands shoulder to shoulder with Japan in efforts to
:09:57. > :10:01.rein in the nuclear ambitions from North Korea. But, of course, it is
:10:02. > :10:06.really Brexit under a percussion so will dominate his visit. He has been
:10:07. > :10:08.talking of strong economic ties between the nine countries and
:10:09. > :10:12.noting that Japanese companies have invested over $50 billion in the UK.
:10:13. > :10:19.Japan's political and business leaders as well, they did not want
:10:20. > :10:23.reassuring because they are reported to be concerned about the state of
:10:24. > :10:27.negotiations. We know that Boris Johnson is not directly involved but
:10:28. > :10:32.it is important for him to reassure these leaders. We know that the UK
:10:33. > :10:35.is the second most important destination for Japanese investment
:10:36. > :10:40.after the United States. But, Boris Johnson has his work cut out for him
:10:41. > :10:45.after the Japanese agreed a free-trade deal with the earlier
:10:46. > :10:49.this month. That may likely Comput Chem matters. It is scheduled to
:10:50. > :10:51.come into effect early 2019 just as the time that Britain is due to
:10:52. > :10:53.leave the block. US authorities have fined
:10:54. > :10:56.Exxon Mobil $2m for violating sanctions against Russia while
:10:57. > :10:58.Secretary of State Rex Tillerson Exxon dealt with Igor Sechin,
:10:59. > :11:07.the president of Russian oil giant Rosneft, who was blacklisted,
:11:08. > :11:09.the US Treasury Department said. Exxon has challenged the finding,
:11:10. > :11:19.calling it "fundamentally unfair". That's it for us. Don't forget you
:11:20. > :11:30.can get in touch with us via Twitter.