Trump hails Australia as immigration model

Donald Trump cites Australia as an example of the immigration system he’d like in first speech to Congress | WATCH

US President Donald J. Trump delivers his first address to a joint session of Congress. Picture: AFP

Here’s how Donald Trump’s historic address to Congress unfolded.

Key points
• Trump cited Australia as an example of the immigration system he would like the US to have
• “My economic team is developing historic tax reform”
• Five principles to guide Congress on healthcare
• Promise of ‘the renewal of American spirit’
• Trump announces immigrant crime office

4.00pm: Trump ‘Wall Street’s champion’

Delivering Democrats’ formal response after the speech, former Kentucky Govenor Steve Beshear has accused Trump of planning to “rip affordable health insurance” from Americans and being “Wall Street’s champion.”

President Trump was vague in his call for tax reform, another Republican priority. He promised “massive tax relief for the middle class” and a reduction in corporate tax rates, but glossed over how he would offset the cuts.

The president also urged Congress to pass a $1 trillion infrastructure package financed through both public and private capital.

"Real leaders don't spread derision and division," former KY Gov. Steve Beshear says. "Real leaders strengthen. They unify." pic.twitter.com/EcoDDzA3Rr

— CBS News (@CBSNews) March 1, 2017

Seated at a diner in Lexington, Kentucky, Beshear also assailed Trump for “ignoring serious threats to our national security from Russia, who’s not our friend, while alienating our allies.” Democrats have berated Trump for his repeated warm remarks about Russian President Vladimir Putin and questioning the value of NATO, the long-time Western alliance.

Beshear’s words and tone seemed a direct Democratic attempt to recapture the loyalties of working-class voters who helped power Trump’s election upset last November. Beshear, 72, wore no jacket or tie and spoke of his upbringing in a family of Baptist preachers that owned a funeral home.

3.45pm: Democrats’ muted response

They didn’t heckle. There were no in-your-face pink ‘pussyhats’ like those at the Women’s March on Washington. There were just a few no-shows.

In case you missed it, Democrats stuck with more muted ways of exercising the art of the dis during President Trump’s address. They turned their thumbs down. They maintained stone faces. They sat on their hands.

They laughed out loud when Trump declared it was time to “drain the swamp.” There were audible groans when he announced a new office for victims of crimes committed by immigrants.

As Trump strode down the centre aisle of the House chamber to make his big entrance, some drew back to avoid shaking his hand.

Republican Congress members stand and applaud as Democratic members sit. Picture: AP

There were even a few empty seats on the Democratic side of the aisle. Eliot Engel, a New York Democrat who’s hugged the centre aisle seat for 29 years of speechmaking by presidents of both parties, took a pass on an aisle seat this year - and made a point of announcing it.

As we flagged earlier, Democratic women from the House sent a sartorial message, wearing suffragists’ white to put a spotlight on women’s issues.

The President, too, was on good behaviour for the evening, exercising unusual restraint. He did get in a subtle dig by pointing in the Democrats’ direction when he declared the “time for trivial fights is behind us.”

JOHN LYONS 3.32pm: Trump’s speech? Brilliant

As a presidential speech before the US Congress, Donald Trump has played a blinder.

Even as his political enemies talk of impeachment on unnamed and yet-to-be-committed crimes and misdemeanours, Donald Trump delivered a speech as good as any delivered by Bill Clinton or Barack Obama.

This was the inauguration speech he should have made on January 20. Read John Lyons’ full analysis here.

3.12pm: Iraq dropped from ban list

Away from the speech, US officials have said President Trump’s new immigration order will remove Iraq from the list of countries whose citizens face a temporary US travel ban.

Four officials say the administration’s decision follows pressure from the Pentagon and State Department. They had urged the White House to reconsider Iraq’s inclusion given its key role in fighting the Islamic State group. Trump is expected to sign the new order on Wednesday (US time).

Six countries - Iran, Libya, Somalia, Sudan, Syria and Yemen - will remain on the list.

3.00pm: Is that an Ivanka?

President Trump’s daughter Ivanka raised a few eyebrows during the address, wearing an off-the-shoulder pink dress.

The fashion designer’s choice isn’t one of her own though. It’s a Roland Mouret, costing US$2995 ($AU3909).

Why did Ivanka Trump wear an off the shoulder cocktail dress to the presidential speech?

— Smith Jodi (@MapwifeJodi) March 1, 2017

Ivanka Trump is wearing a very elegant cocktail dress but it wasn't designed for endlessly standing up & down in narrow stalls for ovations

— Paul Danahar (@pdanahar) March 1, 2017

I keep thinking that someone should tell @IvankaTrump that her bra strap is showing (imo the dress is inappropriate) #JointSession

— Meghan Marriott (@mmbrindley) March 1, 2017

2.40pm: Spicer’s verdict

That. Was. A. Grand. Slam. #Jointsession

— Sean Spicer (@seanspicer) March 1, 2017

Chris Kohler 2.35pm: Market reaction

The Aussie dollar is paring intraday gains after hitting a two-day high amid US$ weakness and shares are fading amid disappointment with the lack of policy detail in Trump’s speech.

After rising to 0.7700, AUD/USD has slipped to US76.64 cents and could now test the 10-day low of US76.37 cents it hit this morning. At the same time the S&P/ASX 200 share index has fallen back toward the 13-day low of 5675 it hit this morning. More market reaction in the BusinessNow blog.

2.30pm: Immigrant crime office

Trump has ordered the Homeland Security Department to create an office to serve American victims of crimes committed by immigrants. The he office would be called “VOICE” - short for Victims Of Immigration Crime Engagement. Trump said he had invited four Americans to attend the speech whose families were affected by crimes committed by immigrants in the US illegally.

2.25pm: Tribute to fallen soldier

The most emotional moment came when Mr Trump honoured Chief Special Warrant Officer William “Ryan” Owens, who was killed in a raid in Yemen during his first days in office. Owens’ widow sat in the guest box with tears streaming down her face as the crowd stood and applauded at length. Owens’ death, as well as the killing of several civilians, have raised questions about the effectiveness of the raid. Pushing back, the president said Defense Secretary Jim Mattis had assured him that the operation generated “large amounts of vital intelligence that will lead to many more victories in the future against our enemies.”

The widow of Fallen Navy Seal, Senior Chief William Owens, Carryn Owens, centre. Picture: Getty

2.13pm: Trump sticks to the script

Standing ovation for Mr Trump, who pretty much stuck to the script all night and produced a very Presidential delivery. Disciplined and clear, he rarely deviated from the prepared delivery.

2.10pm: Conclusion

“The time for small thinking is over. The time for trivial fights is behind us.

We just need the courage to share the dreams that fill our hearts. The bravery to express the hopes that stir our souls and the confidence to turn those hopes and dreams into action. From now on America will be empowered by our aspirations, not burdened by our fears, inspired by the future, not bound by the failures of the past, and guided by our vision, not blinded by our doubts.

“I am asking all members of Congress to join me in dreaming big and bold and daring things for our country. I am asking everyone watching tonight to seize this moment and believe in yourselves, believe in your future and believe once more in America.”

2.06pm: Trump vows to improve vetting of migrants

Trump says he will take new steps to keep the US safe and improve vetting procedures as he seeks to replace a legally challenged executive order blocking entry from seven Muslim-majority nations and suspending the US refugee programme.

“It is not compassionate, but reckless, to allow uncontrolled entry from places where proper vetting cannot occur. Those given the high honour of admission to the United States should support this country and love its people and its values.

“We cannot allow a beachhead of terrorism to form inside America - we cannot allow our nation to become a sanctuary for extremists.”

2.02pm: On foreign policy and NATO

“We strongly support NATO, an alliance forged through the bonds of two World Wars that dethroned fascism and a Cold War and defeated communism. But our partners must meet their financial obligations and now, based on our very strong and frank discussions, they are beginning to do just that. In fact I can tell you the money is pouring in. very nice. We expect our partners, whether in NATO, in the Middle East, or the Pacific to take a direct and meaningful role in both strategic and military operations, and pay their fair share of the cost. Have to do that.”

1.57pm: The military

“To keep America safe we must provide the men and women of the United States military with the tools they need to prevent war, if they must, they have to fight and they only have to win. I am sending the Congress a budget that rebuilds the military, eliminates the defence sequester, and calls for one of the largest increases in national defence spending in American history. My budget will also increase funding for our veterans.”

1.50pm: Education

“Education is the civil rights issue of our time. I am calling upon Members of both parties to pass an education bill that funds school choice for disadvantaged youth, including millions of African-American and Latino children. These families should be free to choose the public, private, charter, magnet, religious or home school that is right for them.”

1.45pm: Obamacare

“Tonight, I am also calling on this Congress to repeal and replace Obamacare.” This gets the biggest standing ovation of the night. “.. with reforms that expand choice, increase access, lower costs, and at the same time, provide better Healthcare. The way to make health insurance available to everyone is to lower the cost of health insurance, and that is what we will do.”

Trump suggests five principles to guide Congress on healthcare

1: ensure that Americans with pre-existing conditions have access to coverage.
2: help Americans purchase their own coverage, through the use of tax credits and expanded health savings accounts
3: give our governors the resources and flexibility they need with Medicaid
4: implement legal reforms that protect patients and doctors from unnecessary costs that drive up the price of insurance
5: give Americans the freedom to purchase health insurance across State lines

1.40pm: Infrastructure

“America has spent approximately $6trillion in the Middle East, all the while our infrastructure at home is crumbling. With this $6trillion we could have rebuilt our country twice. And maybe even three times if we had people who had the ability to negotiate.

“To launch our national rebuilding, I will be asking the Congress to approve legislation that produces a $1 trillion investment in the infrastructure of the United States financed through both public and private capital, creating millions of new jobs.

“This effort will be guided by two core principles: Buy American, and Hire American.”

A long standing ovation for Trump.

John Lyons 1.38pm: Analysis

The speech repeated many of his campaign promises – particularly raising wages, making inner cities safer and cracking down on illegal immigration.

One of the biggest rounds of applause was when Mr Trump said: “We will soon begin the construction of a great, great wall along our southern border.”

Mr Trump said he would protect Americans from “radical Islamic terrorism.”

He said that according to data from the Department of Justice, “the vast majority” of individuals convicted of terrorism since the terrorism of 9-11 came from overseas.

“We cannot allow our nation to become a sanctuary for extremists.

“That is why my administration has been working on improved vetting procedures.”

He said his administration would soon take “new measures” to improve immigration vetting. worst economic recovery in 65 years.

“We’ve lost more than one fourth of our manufacturing jobs since NAFTA was approved,” hesaid, a reference to the North Atlantic Free Trade Agreement.

“We must restart the engine of the American economy... and make it much harder for companies to leave our economy,” he said.

He said currently American companies faced one of the highest tax rates in the world.

“It will be a big, big cut,” he said, referring to his promise to cut the company tax rate.

1.34pm: On taxes

“My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone. At the same time, we will provide massive tax relief for the middle class. We must create a level playing field for American companies and workers.

“I believe strongly in free trade but it also has to be fair trade. It has been a long time since we had fair trade.”

Chris Kohler 1.32pm: US dollar weakens

It seems the market is getting impatient with the president.

So far Mr Trump has been congratulating himself and his administration on its first 40 days in office.

Investors are waiting for details on the president’s tax and economic plans but no clarity has been given yet.

At 1:25pm the Aussie dollar has gained to to 77 cents, a two-day high, up from intraday low US76.37. The greenback is also weakening against other major currencies.

Wall Street’s S&P futures are also weakening as President Trump speaks.

1.31pm: Democrat protest

Tonight, our Democratic #WomenWearWhite in support of women's rights -- in spite of a @POTUS who doesn't! pic.twitter.com/kKJpfV5iUE

— Nancy Pelosi (@NancyPelosi) February 28, 2017

Democratic women in the House have decided to wear white in honour of women’s suffrage to President Donald Trump’s first address to a joint session of Congress. Some Democrats also were wearing blue ribbons for the American Civil Liberties Uniont, and blue buttons that say #protectourcare in support of President Barack Obama’s healthcare law.

1.29pm: Fighting ISIS

“As promised, I directed the Department of Defense to develop a plan to demolish and destroy ISIS, network of lawless savages that have slaughtered Muslims and Christians, and men, women, and children of all faiths and beliefs. We will work with our allies, including our friends and allies in the Muslim world, to extinguish this vile enemy from our planet.

“I have also imposed new sanctions on entities and individuals who support Iran’s ballistic missile program, and reaffirmed our unbreakable alliance with the State of Israel.”

John Lyons 1.28pm: Analysis

Speaking of “a new surge of optimism”, Donald Trump has begun his first major address as President to call for unity.

“I am here tonight to deliver a message of unity and strength,” he told a joint session of the US Congress.

“A new chapter of American greatness is now beginning,” he declared.

“What we are witnessing today is the renewal of the American spirit.”

Talking up his business credentials, he said: “The stock market has gained almost $3 trillion since the election.”

Mr Trump received a rousing welcome on his arrival – a contrast to much of the hostility which has been directed at him by many leading Republicans during the campaign and even since his inauguration.

Most Republican members of Congress gave him a standing ovation while most Democrats remained seated.

This is Mr Trump’s first major speech since his inauguration on January 20.

Mr Trump referred to the support he received during the presidential campaign as “a rebellion.”

He said “crumbling infrastructure” in the US would be replaced and “neglected inner cities” would see a re-growth.

Although it was not actually a State of the Union address, it had all the trappings of one of these annual speeches.

Members from both houses of Congress – the House of Representatives and the Senate – gathered for the occasion.

The speech is being watched closely by both Americans and the international community for clues as to the policies that Mr Trump will pursue.

It is being particularly closely monitored by the international financial community to see what priorities he may give his often-discussed infrastructure programs.

If he were to push ahead with these, they would give a major boost to the US economy.

The financial markets have been strong since the Trump inauguration, but in recent days they have become nervous.

1.27pm: Aussie dollar spikes as Trump begins

1.26pm: Border protection

“By finally enforcing our immigration laws, we will raise wages, help the unemployed, save billions of dollars, and make our communities safer for everyone. We want all Americans to succeed –- but that can’t happen in an environment of lawless chaos.

“We must restore integrity and the rule of law at our borders.

“For that reason, we will soon begin the construction of a great, great wall along our southern border.

As we speak, we are removing gang members, drug dealers and criminals that threaten our communities and prey on our citizens. Bad ones are going out as I speak tonight and as I have promised.

To any in Congress who do not believe we should enforce our laws, I would ask you this question: what would you say to the American family that loses their jobs, their income, or their loved one, because America refused to uphold its laws and defend its borders?”

John Lyons 1.25pm: Analysis

President Trump has cited Australia as an example of the immigration system he would like the US to have.

In his first address to joint houses of the US Congress, Mr Trump referred to both Australia and Canada as two countries with “merit based immigration systems.”

“I am not going to let American workers and its companies be taken advantage of any longer,” he said, referring to his promise to end the illegal immigration of low-paid workers.

“I’m going to bring back millions of jobs.”

He said the US’s current immigration system was outdated. Australia and Canada had merit based immigration systems, he said.

“It’s a basic principle that those wanting to enter a country should be able to support themselves,” he said. Mr Trump also pledged to scrap Obamacare – the health system introduced by President Barack Obama.

“Obamacare is collapsing and we must act decisively to protect all Americans,” he said.

Vice President Mike Pence and House Speaker Paul Ryan. listen as President Donald Trump addresses a joint session of Congress. Picture: AP

1.20pm: Draining the swamp

“The stock market has gained almost three trillion dollars in value since the election on November 8th, a record. We’ve saved taxpayers hundreds of millions of dollars by bringing down the price of the fantastic and it is a fantastic new F-35 jet fighter, and will be saving billions more on contracts all across our Government. We have placed a hiring freeze on non-military and non-essential Federal workers.

“We have begun to drain the swamp of government corruption by imposing a 5 year ban on lobbying by executive branch officials –- and a lifetime ban on becoming lobbyists for a foreign government.”

1.15pm: ‘Quiet voices became an earthquake’

“We’ve spent trillions of dollars overseas, while our infrastructure at home has so badly crumbled. Then in 2016 the earth shifted beneath our feet, the rebellion started as a silent protest, spoken by families of all colours and creeds.

“The quiet voices became a large chorus ... finally the chorus became and earthquake. The people were all united by a simple demand: America must put its citizens first, only then can we truly make America great again.”

The first round applause of the night.

This is the #AmericanSpirit. #JointAddress pic.twitter.com/OgllGrPTe9

— The White House (@WhiteHouse) March 1, 2017

1.10pm: Opening statement

‘Mr Speaker, the President of the United States’

“While we may be a nation divided by policies, we are a country that stands united in condemning hate and evil in all of its ugly forces.

“Each American generation passes the torch of truth, liberty and justice - in an unbroken chain all the way down to the present ... I’m here tonight to deliver a message of unity and strength ... a new chapter of American greatness is now beginning.”

Mr Trump is met with a mixture of cheers and some boos he makes his way to the front of the House Chamber. But huge applause as he takes to the microphone No red tie, it is navy and white striped. Applause too for Melania Trump.

Mr Trump will also declare that “the time for small thinking is over” and “the time for trivial fights is behind us” and that the nation needs “the courage to share the dreams that fill our hearts”, according to excerpts released by the White House.

Many Democrats, however, remained seated and did not clap.

Just walked into Trump’s #JointSession. I’m here to look him in the eye and show him what #resistance looks like.

— Rep. Barbara Lee (@RepBarbaraLee) March 1, 2017

12.50pm: Last-minute rehearsal?

In the limo, looks like Pres Trump giving his speech one last look before delivering it to a Joint Session of Congress. pic.twitter.com/xN4mdak2vJ

— Mark Knoller (@markknoller) March 1, 2017

12.40pm: Tough immigration laws, ‘historic’ tax reform

Mr Trump will use his speech to congress to flesh out his policy agenda, promising tougher immigration enforcement and “historic tax reform.”

“By finally enforcing our immigration laws, we will raise wages, help the unemployed, save billions of dollars and make our communities safer for everyone,” he is expected to say, according to excerpts.

“Our economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere,” he will also say.

“At the same time, we will provide massive tax relief for the middle class.”

Vice President Mike Pence arrives to a joint session of the US Congress. Picture: AFP

12.25pm: Republican warning over budget slash plan

Mr Trump may be about to set out his broad agenda in a speech to Congress but it is his proposal to slash funding for the US State Department and foreign aid which faces stiff opposition - and that is just from some Republicans.

Trump administration officials said they sought to increase Pentagon spending and offset that with sharp cuts in other areas.

One official familiar with discussions about the State Department budget told Reuters the agency could see spending cut by as much as 30 per cent.

The US spends more than $A65 billion a year on the State Department and foreign assistance, compared with $US600 billion or more a year on the Pentagon.

Asked if the Senate would pass a budget that cut the State Department budget by one-third, Senate Majority Leader Mitch McConnell responded: “Probably not.”

Senator Lindsey Graham, the Republican chairman of the Senate subcommittee responsible for the State and foreign aid budgets, said Trump’s idea would be

“dead on arrival” in Congress.

“It would be a disaster. If you take soft power off the table, then you’re never going to win the war. What’s most disturbing about the cut in the State Department’s budget, it shows a lack of understanding of what it takes to win the war,” he said on MSNBC.

12.05pm: What to expect

With less than an hour before Mr Trump’s congress address, what do we know so far about what it will contain?

• Mr Trump will issue a broad call for overhauling the nation’s health care system and revving up the US economy.

• Mr Trump may also voice support for immigration legislation.

• On foreign policy, Mr Trump is expected to voice support for NATO but reiterate his call for partner countries to meet their financial obligations to the military alliance.

• Mr Trump might also weigh in on issues such as changing the tax code, his party’s bid to overturn the 2010 Affordable Care Act, and his desire to boost infrastructure spending.

We will carry a live stream of the speech - ahead of the 1pm address you can brush up on a viewer’s guide here.

11.40am: ASX deteriorates ahead of Trump speech

The S & P/ASX 200 chart has deteriorated significantly before Trump’s State of the Union speech at 1300 AEDT.

Having fallen to 5681.7 today, the index has tentatively broken the 50-day moving average at 5697.

This follows a worrisome reversal of intraday strength yesterday and a break of the trend line from the US election low.

Whether or not these are “false breaks” or more sustained moves will depend on the global reaction to Trump’s speech. More in the BusinessNow blog.

11am: Watch for the drama

Any presidential address to Congress is alway part political speech, part political drama. Here is what to look out for.

Pre-game
Which members of Congress will arrive hours early to stake out seats on the centre aisle of the House chamber for Trump’s big entrance? Expect core Trump supporters to try to line the aisle.

The robed ones
Check out which Supreme Court justices show up this year. Samuel Alito, part of the court’s conservative contingent, hasn’t gone since he was caught on camera during the 2010 State of the Union address shaking his head and mouthing “not true” when Obama criticised a Supreme Court decision.

Focus factor
White House Press Secretary Sean Spicer is promising Trump’s speech will be “an optimistic vision for the country, crossing traditional lines of party, race, socio-economic status.”

Applause now?
Spicer says he expects Trump to get “a very robust and applause-filled reception” from legislators. But dozens of Democratic legislators boycotted Trump’s inauguration. And now, they have to decide how to receive the president in their own chambers. Will they applaud the GOP president?

Twitter
No need to wait for the speech to end to get political commentary. Based on past presidential addresses to Congress, expect legislators to be live tweeting their reactions

10.30am: Trump open to options for immigrants

Mr Trump is open to an immigration bill and may address the topic during his address to Congress later today, a senior administration official told the Associated Press.

In a pre-speech lunch Mr Trump said he was open to a “compromise” bill that could include legalisation for some of the millions of people living in the US illegally and a pathway to citizenship for people brought to the US illegally as children.

Spokeswoman Sarah Sanders saying that the president was “open to having conversations about that moving forward.”

10.10am: Trump’s STEM bills

10am: ‘Obamacare lite’

Senators. Mike Lee of Utah, Rand Paul of Kentucky and Ted Cruz of Texas s will oppose “Obamacare Lite” - as some are describing House leadership-backed plans to remake the Affordable Care Act. Their announcement comes as the two leading conservative coalitions in the House have also come out against the plans.

Speaker Paul Ryan insisted the White House and Congress are working together on a plan that will eventually attract unified support.

9.40am: Currencies to act as scoreboard

The US dollar and all major currencies will act as a scoreboard during the speech — clarity and positivity will filter through to US dollar strength, while loose, loud and aggressive language could be taken as a poor sign for the economy.

“All eyes are on Trump’s speech as traders await clarity over his policies,” ANZ economist Daniel Gradwell said. “Failure to live up to his hype could result in weakness for the US dollar, in particular against the Japanese Yen.”

For more market reaction follow our BusinessNow blog.

9.15am: Conservatives rebel on health care

Republicans have confronted a conservative rebellion in their own party over their long-promised plans to repeal and replace the health care law, and beseeched President Donald Trump to settle the dispute, reports AP.

“He’s the leader on this issue right now; he’s the one that’s got to hold us together,” said Rep. Dennis Ross of Florida as he left a meeting during which he said Republican leaders urged the rank-and-file to “’stay strong”’ on the issue and told them: “’Now is not the time to back down.”

The pep talk from leadership came amid signs of serious trouble for the emerging House GOP health care plan even before legislation is officially released. Conservatives are objecting to new tax credits that would help consumers buy health care, arguing they amount to a costly new entitlement - AP

8.50am: Markets want to see the money

When President Trump begins to address the Congress it will be 1pm Australian eastern time, so our market will be an early indicator of global sentiment, writes Robert Gottliebsen. If in his speech President Trump spends too much time on migration and media issues watch share prices tank. Wall Street has risen dramatically because share investors have bought the Trump business agenda. Bond investors in recent weeks have been much more cautious, so yields on bonds have fallen from their peaks.

Read Gottliebsen’s full analysis ahead of the Congress address here.

8.15am: What to watch for

Gerald F. Seib, of the Wall Street Journal, on what to expect.

7.50am: Top Republican won’t pass cuts

The Trump administration is expected to propose slashing State Department funding later today, but US Senate Majority Leader Mitch McConnell does not back the move.

Mr McConnell also said Republicans, who control the Senate and the House of Representatives, are still not in agreement on a healthcare plan to replace Obamacare, reports Reuters.

7.40am: A chance to reset?

World financial markets will be scrutinising the address for specifics of how Mr Trump will deliver on promises to tackle tax reform, boost infrastructure spending and simplify business regulations, with particular interest in the Australian market, which will of course be open.

The speech will also offer a conciliatory tone, say White House officials, with Mr Trump to make gestures towards unifying a country divided by the election and the early days of his presidency.

With P/Reuters/AFP