Business News

CCTV Script 23/01/17

This is the script of CNBC's news report for China's CCTV on January 23, Monday.

Welcome to CNBC Business Daily.

No matter where you stand politically, America's new president wants to put policies in place that are likely to have a major impact on taxes, regulation-and consumers' wallets.

On trade, President Trump has said on the campaign trail that the current deals are hurting American workers. He wants out of the Trans Pacific Partnership (TPP), which is a trade deal with Asia that has yet to be ratified. In addition, he wants to renegotiate the North American Free Trade Agreement (NAFTA), a deal enacted more than 2 decades ago with Canada and Mexico.

And with a Republican controlled House and Senate, it raises the question of how likely he'll be able to follow through on his campaign promises. Another open question is what impact those changes will have on individual consumers.

Although most of Wall Street appears bullish about the short-term economic outlook under Trump's fiscal policy plans, some economists have been less than sanguine. Paul's critique echoed that of David Stockman, a former Reagan-era budget director who also warned CNBC last week that Trump's plans would ultimately lead to financial calamity.

Most investors and Wall Street analysts have been banking on tax reform and infrastructure spending as a boost to 2017 economic growth. However, Morgan-as well as a few other banks-warned that a grand bargain was far from guaranteed.

That is because another of Trump's priorities-the repeal of Obamacare-could create "collateral damage" for tax reform, Morgan Stanley wrote. "Rising displeasure among Republicans about the risk of increasing the uninsured if they repeal [Obamacare] without immediately replacing it risks delaying this legislative process, and tax reform as a consequence.

Earlier this month, Goldman Sachs struck a similarly sanguine note, saying that "it is not yet clear what the political dynamic will look like when the agenda moves to areas where the Trump administration's views diverge from congressional Republicans."

Meanwhile, others doubt the idea that the fiscal boost will live up to its hype. Capital Economics said last week that hopes for a "global reflation looks misplaced," given that other countries are unlikely to follow suit with a fiscal boost of their own, while the impact abroad of U.S. tax reform will be limited at best.

CNBC's Qian Chen, reporting from Singapore.

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