tv World Business Report BBC News January 26, 2017 5:30am-5:46am GMT
this is bbc news, the headlines: president donald trump has said he believes torture absolutely works but he would defer to his defence secretary and the director of the cia on whether to reinstate interrogation techniques such as water—boarding. the mexican president, enrique pena nieto, has condemned president trump's order to build a wall along the us—mexican border. he said mexico did not believe in barriers and would not end up paying for its construction. a giant super tanker aircraft on loan from the us has arrived in chile to help tackle the worst wildfires in the country's modern history. a state of emergency‘s been declared in a vast area south of the capital, santiago. the groundbreaking american television and film star mary tyler moore has died at the age of 80. the actress, noted for her comic realism, first starred as a housewife in the sixties‘ sitcom first starred as a housewife in the ‘60s sitcom the dick van dyke show. now for the latest financial news with sally bundock and world business report. jumping for trump.
wall street puts its doubts aside as the dowjones finally hits 20,000. plus, tax wars. can brexit britain and trump's us beat the likes of ireland at their own game and lure back the multinationals and their billions? welcome to world business report. i'm sally bundock. we will be checking how markets are doing in asia injust a moment. we start in the us where president trump has been provoking more controversy
over his plans to wall off mexico. meanwhile, traders at the new york stock exchange are cheering the trump effect. here's what they have been celebrating: the dow jones industrial average of top us shares ended here, finally closing above 20,000 points for the first time in its isi—year history. it's a huge psychological milestone for traders, the dow has now risen some 9.5% since the election in november, one of its biggest rallies on record. it got within one point of 20,000 back on january sixth before nerves caused the rally to fizzle out. but since president trump's inauguration, the confidence in the stock market has returned. some investors are predicting it could rise a lot further if he follows through on promises to slash business taxes and regulations and boost infrastructure spending. world, they printed the t—shirts and
hats weeks ago and on wednesday finally after everyone was beginning to wonder if they'd ever get a chance to wear them, the dowjones industrial average finally rose above 20,000 for the first time. now, kellyanne conway, an adviser to president trump, was quick to take credit calling it the trump effect. now, it is true that donald trump's selection has been really good for shares in the us‘s leading companies. since november the night the dow has risen by about 8%. president trump campaigned on things like rolling back bank regulations and simple find the us tax code. now, the recent us damn executive orders signed by the president has given wall street confidence that he will follow through on some of those promises and that has helped the dow make it over the 20,000 mark. that said one cannot talk about these market milestones without making mention of the strength of the us
economy that mr trump inherited from his predecessor, barack 0bama. the unemployment rate is sitting at a 10—year low and the federal reserve was engaged in a massive stimulus programme that's kept interest rates near zero for a very long time. all of which has helped to bring us markets where they are today. i remember when it went beyond 10000 and the champagne was popping them too! so what's happening now on financial markets. let's go to our asia business hub and join rico hizon. i want to see you in one of those hats with 20,000 on it, one of the baseball hats. have you got one? you just mentioned the dow 10,000, that was aeons ago! your showing my age, it was one of my first stories! you're very young. everyone is cheering the trump jump you're very young. everyone is cheering the trumpjump in you're very young. everyone is cheering the trump jump in asia, dow, 20,000, stocks are rising here
to 3.5 month highs on hopes that mr trump's economic plans will ramp up growth. this surge is the latest sign in investors are brushing aside for now worries about mr trump's trade protectionism stance and are instead betting that the white house and the republican congress will implement what's in the era mentioned, tax cuts, spending big on infrastructure and cut the bureaucracy —— what samir mentioned. the japanese nikkei 225 is stronger by1.2%, the the japanese nikkei 225 is stronger by 1.2%, the hong kong hang seng has risen by 1%. if you look at the chinese stock market, it is currently flat as investors are set to start their chinese new year holidays. everyone is migrating to their respective hometowns and travelling overseas and markets there will be closed from tomorrow until next thursday, a very long market holiday for the mainland. that is the latest on the markets.
sally, back to you. we are also looking closely at that issue of corporate tax cuts. it's a central part of president trump's strategy to boost the us economy and is on the agenda today at the republican party's annual retreat in philadelphia. president trump will be there to give an address as will british prime minister theresa may, a first for a foreign head of state. before winning the election, mr trump promised he'll cut the us corporate tax rate from 35% to around 15% to try and keep more us business onshore. he's also targeting the billions that us multinationals, the likes of starbucks, google, and microsoft make overseas. mr trump says he'll allow them to repatriate those profits at a 10% tax rate. that's what he said anyway before his election. but the us president is likely to face competition. uk prime minister theresa may has pledged she will deliver the lowest corporation rate in the g20
as the uk tries to make itself attractive to big companies once it leaves the european union. it's currently at 20%. and just next door is ireland, which is in the european union, has had big success luring multinationals. the likes of apple, intel and pfizer are some of the big american companies based there. its controversial arrangements include corporation tax of just 12.5%. here's how mr trump made his pitch to business leaders earlier this week. there will be advantages to companies that do indeed make their products here. so we've seen it, it is going to get, it is going to be a wave, you watch, it is going to be a wave. you watch, it's going to be a wave. and i've always said by the time you put them in these massive ships or airplanes and fly them,
i think it is going to be cheaper. now, what we are doing is we are going to be cutting taxes massively for both the middle class and for companies and that is massively. we are trying to get it down to anywhere from 15 to 20% and it is now 35% but it is probably more 38% than it is 35, wouldn't you say? that is a big thing. promises, promises, can he deliver? dominic stuttaford is a senior tax expert at the law firm norton rose fulbright. good to see you. good morning. this will be discussed in phil duffy and theresa may is there and the competition is getting hot globally, but will this become a reality —— philadelphia. people have always talked about a change in the us tax system, it's complicated and there's many with vested interests, it may ta ke many with vested interests, it may take time but now there's pressure. it's interesting, in the uk the
government will have a budget and it will make the announcements, it often will make the announcements, it ofte n co m es will make the announcements, it often comes into effect immediately, in the us the system doesn't work like that? in the us you need the president and congress to work in tandem for anything to happen. that's why it hasn't changed for a long time? and when you have something that is so, located, what bits do you change? radical reform is difficult because there will a lwa ys is difficult because there will always be winners and losers —— is so complicated. that is on the agenda, firmly on the agenda of president trump, he's made that clear in deed. will it have the impact if he was able to get the 10% rate on money come back home, from apple and google and others, would it have that effect? would apple repatriate the billions it has overseas? they will always keep some money overseas to fund subsidiaries but fundamentally yes, because that money has been sitting there, they need it in their home jurisdictions to pay dividends and money back to
their shareholders so why keep it overseas if you can bring it back without massive amounts of tax? there in a bizarre situation, big companies like apple and google, where they have this money stashed overseas because of the money they used bringing it home but they may borrow in the us to pay things like dividends —— they are in. borrow in the us to pay things like dividends -- they are in. yes, but the problem with the system is the system hasn't incentivised you to bring your money back to your home jurisdiction. there's a tax charge if you put it back in the us. that is contrary to every other major tax administration. thank you very much, dominick, for making sense of this scenario. of course it is something we will keep you across as it develops. that is all from world business report for now. thanks for watching. we'll be back in a moment reviewing all the stories in the news. see you then. half of hospitals aren't yet meeting new government standards
for patients' food, according to a new report. national standards were introduced two years ago with ten key areas for improvement. the department of health says 90% of hospitals are working towards compliance but the campaign for better hospital food describes the current situation as diabolical. in 2014, food standards became mandatory in english hospitals. this official report is an attempt to find out what progress has been made since then. it says there is more to do but claims there has been a measurable improvement in food quality. for example, in 89% of hospitals patients said their food was good or very good. that's up 5% from 2013. 55% of hospitals are fully compliant with standards recommended by dieticians. that's up 1496 recommended by dieticians. that's up 14% from 2015. and 52% of hospitals are fully compliant with basic
government standards on food quality and nutrition. nearly 40% are said to be partly compliant. but the campaignfor to be partly compliant. but the campaign for better hospital food picks up on that same statistic, saying it shows nearly half of hospitals don't meet basic standards. the organisation also claims that nearly a third of patients are at real risk of malnutrition. the department of health says food standards in hospital are legally binding. but campaigners claim the legal framework for prisons and schools is more rigourous. they say that means healthy children in schools get more legal protection on food standards than sick children in hospitals. andy moore, bbc news. and there'll be more on health matters coming up at 6am on breakfast. a review of the health of children across the uk has found a growing gap in between rich and poor and raises concerns over mortality rates, obesity and mental health problems among children. jon kay and steph mcgovern will have more on that story in around 20 minutes. i'm adnan nawaz.
the top stories this hour: president donald trump has said he believes torture absolutely works but he would defer to his defence secretary and the director of the cia on whether to reinstate interrogation techniques such as water—boarding. the mexican president, enrique pena nieto, has condemned president trump's order to build a wall along the us—mexican border. he said mexico did not believe in barriers and would not end up paying for its construction. a giant super tanker aircraft on loan from the us has arrived in chile to help tackle the worst wildfires in the country's modern history. a state of emergency‘s been declared in a vast area south of the capital, santiago. now it's time for our news review. the irish times leads with us president donald trump who has officially signed an executive order
to commence the building of a mexican border wall. he really is big international news at the moment. and on the front page of the international new york times, according to some senior officials, mexico could pull out of the north american free trade agreement altogether if a renegotiation of its terms with president trump does not benefit latin america's second—largest economy. the gulf news looks the us dowjones index which has broken through the 20,000 point barrier for the first time in its 132—year history. the rise follows growing investor confidence in the us economy. the ft looks at how western envoys have been left in the cold as syria peace talks begin in astana, kazakhstan. the paper writes russia and turkey are now the new power brokers dealing with ending the near six—year long conflict. also in the ft, oil
giant bp says the world is facing a long—term oil glut as producers scramble to exploit reserves before fossil fuel demand goes into decline. and finally, could your smart—phone actually help save your life? the times reports that mobile phone cameras are now as good as humans at spotting skin cancer according to scientists. joining us is nina trentmann from the wall streetjournal. i was on google trying to find out what is the equivalent distance of the border of the us from one coast and the other and is 2000 miles. if we we re and the other and is 2000 miles. if we were going to build a wall starting in london