tv World Business Report BBC News January 20, 2017 5:30am-5:46am GMT
this is bbc world news. the headlines: donald trump has promised to unify americans and create the kind of change that hasn't been seen in the country for decades. there've been large—scale celebrations in washington, hours before mr trump is officially sworn in as the 45th president at noon local time on friday. more than 30 are still missing after an avalanche hit a mountain hotel in central italy. two bodies have been recovered so far. rescuers have been working through the night to find those who remain unaccounted for and say they haven't given up hope of finding survivors. west african troops have moved into the gambia in support of the country's newly sworn in leader adama barrow. former president yahya jammeh has been given until midday today to leave office peacefully before he is removed by force. at least 20 firefighters are thought to have been killed after a high—rise collapsed in tehran. they were battling a blaze in the 17—storey building when it crumbled on top of them.
authorities said the upper floors were occupied by cramped garment workshops. the exact cause of the fire is still unknown. now for the latest financial news with aaron heslehurst and world business report. slashing taxes, talking tough on trade, and ripping up the corporate rule book. america's president—elect promises double the growth and millions of newjobs. but does trumponomics add up? plus, his arch rival, china, confirms its weakest growth since 1990, with fears of even tougher times ahead. welcome to world business report. i'm aaron heslehurst. welcome to the programme. we have
the friday feeling. you will see a snapshot of all the different things going on in the business world. we start in washington, where, as you've been hearing, later today, donald trump will be sworn in as the 45th president of the united states. the billionaire businessman has gone from longshot candidate to the leader of world biggest economy in just a year and a half. his supporters will now be hoping that he can shake up the us economy in the same way the he shook up the presidential race. so, what are his plans? he has promised to create 25 million jobs over ten years and to double the annual rate of economic growth to 4%. how will he do this? he's promised to take a tough line on trade, and on countries he sees as undercutting us workers and taking their jobs. he has famously threatened to slap a 35% tariff on mexican imports and a 45% tariff on products from china, raising fears he could start a trade war. to start with, though, he will renegotiate the north american free trade agreement.
he also says he'll cut america's high corporate taxes, which have pushed big us firms to offshore a lot of their business from 35% to 15%. critics say this is too expensive and will help big companies rather than ordinary workers. and he promises to free up business by ripping up red tape. he says 70% of all federal regulations can go. he hopes that will encourage firms to keep morejobs in the us rather than outsourcing. shares of the united states' biggest companies have certainly reacted well to the promises. the trump rally has faded in recent days, but the benchmark dowjones industrial average is still up around 9% since mr trump won the election. some of the top gainers have been the big wall street banks.
they were hit by a huge amount of regulation since the 2008 financial crisis, known as the dodd frank act. and as samira hussain reports, they are hoping its days are numbered. the trump inauguration will no doubt be the main talking point at the world economic forum in davos. so actually we will do this. we've been reporting from there all week. so, let's go live to switzerland now for some reaction. dr paul sheard is global chief economist at s&p global. it is great to have you on the programme. lots to talk about. can we start with this whole thing about reversing globalisation and bringing jobs back to america apparently 5 million have been lost from the us since 2000. most of the reason is technology, not because they have been outsourced across the world. technology, not because they have been outsourced across the worldm is great to be here. it is difficult
to untangle the effects of technology and liberalisation. there are probably elements of both. —— globalisation. most economists probably think that comparative advantage is driving it more than anything else. as you indicated, there is a sense of a shift in the atmospherics and the policies coming out of the world's largest economy. are people in your game bracing ourselves for a possible trade war? that is on everyone‘s radar screen, but people are not expecting him to go in that direction. trade war, protectionism, the 1930s and that situation, it would not be consistent with aiming for 4% growth, because he is the man with the art of the deal, the negotiator
in chief. the message seems to be we wa nt in chief. the message seems to be we want free trade, but on fair terms to america. in the past, america has been open with its market. the message is now that has not always served all segments of the american population well. so he will get tougher when it comes to striking trade deals and re— looking at them, and nafta is at the top of the list, of course. they will start with that straightaway, apparently. shortly, the big tax cuts he has planned, will they be enough if they go through to bring a lot of this american corporate money, the millions and billions offshore, bring it back to the us?” millions and billions offshore, bring it back to the us? i think it could be an important development, aaron, because it has been out a long time. we have had divided
government in the us and it has been difficult to get anything done. there has been a strong consensus that this corporate cash going offshore needs to come back. donald trump may be the man to do it with the economists on his side. put a jacket on! it is —20 down there! we appreciate you joining us. at least the global economy is not freezing. there you go! see? a nice line to end on. joining us from davos in switzerland. we are also in china, where official growth figures have come out in the last few hours. they have confirmed that last year, china's economy grew at its slowest pace in more than a quarter of a century. let's just show you the numbers. china's growth rate hit 6.8% in the last three months of 2016. that's slightly better than expected, and slightly better than the three months before. but it still leaves the annual growth rate at 6.7% for 2016,
bang in the middle of the government's target of 6.5 to 7%. the bad news is that it's the weakest rate in 26 years. 1990 was just after the crackdown in tiananmen square, when china was isolated internationally. but the good news is, china has avoided the economic slump many around the world were fearing, largely thanks to huge amounts of government stimulus. if we can trust the figures that is. let's talk to the bbc‘s steve mcdonell in beijing. it is good to see you. let us start with how interesting 6.7% is. right in the middle of what beijing said they would do. can i ask you this, they would do. can i ask you this, the last thing president xi jinping needsis the last thing president xi jinping needs is donald trump to start a trade spat because that could hit the chinese economy quite hard,
couldn't it? absolutely. there is a lot of fear here that china, which has benefited greatly from globalisation, could take a hit from these tariffs if they take place. a could argue that united states consumers have also benefited greatly from free trade. they will suffer if there is a tariff on ipads, for example, and prices go up. ipads, for example, and prices go every ipads, for example, and prices go up. every time we see these numbers the questions lies about. i have to throw it out. can you trust these numbers and what comes out of beijing? this is a good question. i am injust beijing? this is a good question. i am in just before beijing? this is a good question. i am injust before i come to whether the figures are real, let us assume they are solid. —— i mean,. the chinese government, 6.7%. many governments would give their hand for that. for china, it governments would give their hand forthat. for china, it means
governments would give their hand for that. for china, it means they are worried about a slowing economy. policymakers say it is all part of the plan here though. china needs slower growth that relies more on domestic consumption and less on exports. that is why we are seeing these figures. but as to whether they are real or not, it is interesting, people have long suspected some provinces artificially inflate their gdp figures to make the government look good. sometimes they underestimate them to draw more attention and help from the central government. for the first time, we havejust had from the central government. for the first time, we have just had the governor admitting that over several yea rs governor admitting that over several years in his province, the figures we re years in his province, the figures were fake. the figures were doctored. and so he says that they have misled the national government on gdp figures. this isjust fuelling more and more concerned that you cannot trust these statistics in china. indeed. thank you very much for the explanation, steve. have fun on the weekend.
0ther steve. have fun on the weekend. other news now. president—elect donald trump's choice for treasury secretary, steven mnuchin, has faced strong criticism during a senate confirmation hearing. mr mnuchin is a former a goldman sachs banker turned hedge fund boss and hollywood investor. he faced accusations that his former bank, 0newest, ruined lives during the us property crash by foreclosing on 36,000 loans. but he told the senate finance committee "i have been maligned." i don't really want to do the markets. you are forcing me to do it. there you go. everyone is watching the inauguration today. i will be back with james menendez to look at the papers. goodbye. doctors in the uk say they've had a breakthrough in the diagnosis of prostate cancer
by using mri scans. it is the most common type of cancer in british men and is normally confirmed with several invasive biopsies. around 100,000 men in britain have the procedure each year. elaine dunkley has the details. during the world cup for gb, that was definitely my finest hour... fred is a former 0lympian that represented great britain in the long jump represented great britain in the longjump in the represented great britain in the long jump in the 1980s. two years ago he was diagnosed with prostate cancer. you know where you are at, as opposed to ignoring the problem, and then one day you have got some kind of chronic discomfort, and then you have months, or a short time, to live. that will be far more devastating for your loved ones than having it upfront. getting checked out saved his life, but the way that tests are carried out could soon
change. biopsies are commonly used to find cancer. a needle is put in the prostate and tissue is removed for analysis. new research published in the medicaljournal, the lancet, finds mri scans are more effective, finding cancer in 93% of cases correctly, compared to just over half with a biopsy. if we can diagnosed cancer is currently being missed by this very inaccurate, standard, tra nsrectal biopsy missed by this very inaccurate, standard, transrectal biopsy tests, and find important cancers early and treat them early then i think we could see a significant impact on long—term survival. could see a significant impact on long-term survival. fred is now in the last stages of treatment. and for those with prostate cancer, the use of mri scans could be a big leap forward in diagnosis. elaine dunkley, bbc news. coming up at 6am on breakfast, charlie stayt and steph mcgovern will have all the day's news, business and sport. the top stories this hour:
donald trump has promised to both unify and change america as he prepares to be officially sworn in as america's 45th president. we are going to do things that have not been done for our country for many, not been done for our country for any not been done for our country for many, many decades. it is going to change. two people are dead and more than 30 remain missing after an avalanche struck a hotel in central italy. they have not given up hope of finding survivors. 0usted gambian leader yahya jammeh has been given one last chance to step down from office peacefully before west african troops move in. at least 20 firefighters are thought to have died after a high—rise caught fire and then collapsed in iran's capital. the cause of the fire is not yet known. the soon—to—be 45th president of the united states leads many
papers and news websites. the washington post has been covering donald trump's movements on the eve of his inauguration — which happens later today. he made a statement at the lincoln memorial where talked of people wanting "real change". at another event he praised his team, saying "we have by far the highest iq of any cabinet ever assembled." one of those cabinet picks — treasury secretary nominee steven mnuchin — seems to be at odds with mr trump though, over economic policy.