Us markets have their worst day since the president ial election as turmoil grips the white house. Plus alibaba goes west. Chinas 300 billion E Commerce Giant looks to america but can it take on its us rivals . Welcome to World Business report. Im sally bundock. Also in the programme, japans economy grows for the fifth quarter in a row has abenomics finally paid off . Well be live in tokyo for reaction. But first, we start on wall street where for months optimism about the trump presidency, the markets have been powering to record highs. But late on wednesday the trump bump turned into the trump slump as us stocks and the dollar suffered their worst day since before the election. The cause of the sell off . Growing concern that the president s promised tax cuts and pro business reforms may never materialise, as the white house battles one controversy after another. Lets show you the numbers. The Dow Jones Industrial average fell 372 points, and both the dow and s p 500 suffered their worst falls in percentage terms since september. The nasdaq had its biggest loss for almost a year. In fact the last time the nasdaq fell this much was onjune 2a the day the uk voted for brexit. The us dollar has also tumbled to the lowest in six months this will give you an overview. This is the us dollar against 10 leading currencies over the past year as you can see its lost all its gains since donald trump became president and is now back to where it was in november last year, around the time of the election. Some analysts say this correction was inevitable. I think the trump trade was largely a group fantasy, so i dont really know that it was all that deeply or well rooted at any point, to be honest. Part of, a significant part of whats produced the six month market rally is the notion that were going to have radical deregulation particularly, but not exclusively, around financial issues, and were going to have massive tax cuts, particularly, but not exclusively for large companies. The weaker the president is, the less likely you are to get those tax cuts, and some of those premiums start coming out of the market. And i think thats what were seeing right now. Jeremy stretch is Market Strategist at cibc world markets. Good morning. We have talked about this many times since november. We knew that some kind of correction would be coming. All the promises have not materialised, deregulation of banking, tax cuts, bringing back ports of cash from overseas, they arejust ports of cash from overseas, they are just not ports of cash from overseas, they arejust not coming ports of cash from overseas, they are just not coming through . Thats right. We have seen a lot of promises on the agenda, ultimately investors have reacted to that. The fa ct investors have reacted to that. The fact that we have seen this slew of allegations or uncertainties, not just relating to russia at the difficulties that the Trump Administration felt, healthcare for example, that has pushed this Reform Agenda further back down the process. Ultimately, it is the case of realisation that the great hopes and dreams of an enormous fiscal boost to drive the economy on a fast At Trajectory has been postponed. Boost to drive the economy on a fast At Trajectory has been postponedm the last 48 hours, it has become very intense because of the nature of the controversy surrounding the Trump Administration. Some people out there say that we could see an impeachment. There is that kind of conversation going on, that does not bode well for markets around the world 7 we bode well for markets around the world . We have seen the same story in asia and europe . Indeed. Political instability is one of the greatest threats to any market. We have seen in the last 24 hours has amplified that. The announcement of Robert Mueller does appear to have provided at least a little bit of temporary calm. Look into the future, it looks as though they may have found some stability. It is fascinating, despite this slew of uncertainty that has been emanating around the white house, Market Advertisers have been really high. Volatility trading has been very low. Perhaps it is a temporary blip. Thank you for coming in and providing an analysis. We will show you how asia is staring at the end of the programme. It is being felt in asian trading as well. We are also looking at alibaba the chinese E Commerce Giant that has been described as the countrys ebay and amazon rolled into one. It certainly makes more revenue than both put together. Its expected to report anotherjump in profits later today, its shares have soared since it floated in new york and it now has a Stock Market Value of some 300 billion. But the vast majority of its business is in china something its billionaire founder jack ma wants to change. Samira hussain reports a great entrepreneur, one of the best in the world. For President Trump, the best way to show his love for this country is to make it Easierfor Americans to for this country is to make it easier for americans to sell their wares to china. This sneaker shop is an example of that. It has a physical store, but 90 of its business is done online. Since august, they have been selling on alibaba. That august, they have been selling on aliba ba. That has august, they have been selling on alibaba. That has been a big boost to their empire. We earned over 100 million this year. They run like a start up. That has been really refreshing. We are not dealing with lots of competition. They treat us like we are a trusted, multibillion dollar company. Like we are a trusted, multibilliondollar company. The leader of chinas biggest E Commerce Retailer has big ambitions. He wants to bring a million american businesses to china and 2 billion customers in next decade. There have been talking about making a Big Push Out Of China for the last several yea rs. Out of china for the last several years. Perhaps even prior to that, when they filed to become public a number of years ago. You look at the revenue, it is almost entirely contributed by china. They may well have aspirations and they may well talk about that, but the numbers suggest there is a lot of work to be done. The chief president is not afraid of a little hard work. He will be in the us next month to make is pitched directly to the businesses. His pitch. To japan now where in the few hours official figures show the Economic Growth picking up fast in fact, much better than expected. Japans economy grew at an annual rate of 2. 2 in the first three months of the year up 0. 5 on the last quarter of 2016. Its the fifth quarter in a row that growth has improved thats the best run in more than a decade. So does it mean that Prime Minister shinzo abes massive Stimulus Programme has finally done the trick . Joining us now, hiro shirakawa, chief economist, japan, credit suisse. Thank you for being on the programme. Good afternoon, injapan give us your take on these numbers and what you think about how the japanese economy is faring . First of all, it is true that the economy is doing quite well. If you look at the gdp numbers, it is. There are two risks. 0ne gdp numbers, it is. There are two risks. One is the global outlook, the us situation is getting messy. Number two, we tend to think that any fiscal stimulus, it cannot be sustained. Projects are not necessarily about doing well in stimulating the economy. So we think those are the two risks. Despite the fa ct those are the two risks. Despite the fact that the economy seems to be heading in the right direction, there still seems to be concerned about the japanese economy. What needs to be done now . |j about the japanese economy. What needs to be done now . I think that the country has done a massive. They have done a monetary easing. We have experienced or implemented a large number of fiscal stimulus packages. Still, economists and others. We now shift our focus to Economic Reforms and we tend to think that Labour Market reforms should be the most important thing, because we are now suffering in their sales industry. We tend to think that shinzo abe house to shift his focus on the Labour Market and stimulate productivity. Thank you for your time today. Us and eu officials have decided against a la ptop officials have decided against a laptop ban on flights from europe. That was after a meeting to discuss the threats to aviation security. They said other measures were still being considered. A previously said they were looking at extending a europewide ban on electronics on flights from eight mostly muslim countries. The measure was introduced over fears that a bomb could be concealed in a device. Looking at the asian markets now, nearly all of them are falling. Japan is down, a lot to do with the fa ct japan is down, a lot to do with the fact that the yen has strengthened in value in the last 48 hours. You are now up to date, i will see you soon. Representatives of britains gps say the system of local Family Medical Services is on the brink of collapse as a result of Staff Shortages and increasing workloads. The chair of the British Medical Associations Gp Committee will tell a conference later today that the only solution is to increase nhs funding. He says the service is already short of several thousand gps. Individual gp practices have become frighteningly vulnerable, according to their union. They say doctors are facing an avalanche of work, which is piling up, and that all parts of the uk have struggled to recruit significant numbers of gps. The leaders of the Family Doctors are calling on the next government to increase nhs funding and gift General Practice a bigger share. Increase nhs funding and gift General Practice a Bigger Sharem Isa General Practice a bigger sharem is a very overstretched service. It needs to be met responsibly, and more than anything else, you need the resources to be able to provide a Proper Health service if you are going to try and deliver the aims of any civilisation. Health ministers or all over the uk need to recruit more gp. The bma says that there have been delays in the money reaching some areas gps. They say patients can play their part by using services responsibly. A Group Representing dozens of recycling organisations in the uk has named Pringles Crisps as their number one enemy, because its packaging is so difficult to re use. The Recycling Association was commenting as Prince Charles is about to launch two competitions with i Million Pound prizes for designers who can reduce plastic waste. At six oclock on reckless, we will have all the days news and sport, we also have a warning that over 2000 species of plants discovered in the past year are already at risk of extinction breakfast. This is bbc news. The latest headlines the Us Department ofjustice has appointed a former head of the fbi, Robert Mueller, as a Special Prosecutor to lead an investigation into allegations that the Trump Election Campaign colluded with russia. Falls on us Stock Markets have dragged down asian shares, because of fears that the political controversy surrounding President Trump will weaken his ability to deliver taxation and regulatory reforms. The venezuelan government has stepped up its Military Presence in the state of tachira along the colombian border, as violent Anti Government protests spread across the country. Real madrid have edged closer to winning the Spanish League title for the first time in five years. They beat celta vigo 4 1 to go top of the table with one game to go. It is time for our daily news review. 0n front of the politico website, the Us Department ofjustice has announced the appointment of a Special Prosecutor to lead the investigation into alleged russian interference in last years president ial election. Hes a former head of the fbi and his name Robert Mueller. The Straits Times reports on remarks made
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