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tv   Business  Deutsche Welle  July 31, 2019 10:30am-10:46am CEST

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even once sure it was a 6 and looks like swiss like me spike says the 15 nations 50 story. and 50 very personal tips on berlin's very best in terms of. looking down on her left greenwood column t w. big day for the u.s. federal reserve investors are on tenterhooks ask the central bank could conquer interest rates for the 1st time into 11 gears to get some analysis from london. also coming up one of the world's biggest contributors to ocean plastic senegal plus a crackdown on this and by imposing fines on further restricting plastic use. amounted to jones and this is business thanks for joining now all eyes are on the u.s.
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federal reserve today the central bank is expected to lower interest rates by a quarter point and it would be the 1st rate cut since 2008 that has been speculation about the probability of a rate cut for weeks by federal reserve chairman powell testimony this will make us in need july in which he hinted that a consequence be the way he was present or much trump has been critical of the fed for racing rates and he is what he told reporters at the white house only yesterday . oh my opinion and far fewer are we are really put out a lot of debt or we are. going to talk about the fed good very good nobody here i would like. large i'd like to hear me do we want to stop because. they don't want their.
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own higher rate. really i think was a big. day yesterday fighting against the noise of the helicopter on the lawn of the white house but i hope that my guest michael hughes and chief market analyst at c.m.c. markets in london could listen to all of that good to have you with us so clearly. trump wants the rates cannot give the u.s. economy is growing and unemployment is no is now the time for a cut. certainly based on the dates i would say no and the fed has been fairly consistent over the course of the past few years by saying that they are data dependent central bank so if you place any decision to cut rates on the economic data coming out of the u.s. you look at the unemployment rate you look at the monthly payrolls numbers you look at yesterday's consumer confidence numbers for july came in at the highest levels
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since the end of last year and given the fact that a year ago the fed was 3 courses of the way through the signing cycle it does really seeing all the while the global economy is slowing the u.s. economy is a little bit weaker than it will growing slightly less robustly than it was in the 1st quarter of the woods walking about $25.00 basis points right but ultimately this is where we all and this is what we expect and of course we know that donald trump has been keeping telling the fed what to do do you think that the fed is caving in now i certainly think political pressure has been brought to bear on federal reserve policymakers and that makes me think that at the very least we can expect a 25 basis point rate cut for anything more than that and i think the fed runs the risk of losing its credibility as things stand i think there is an element of that already with president trump's threats to fire jerome powell unless he delivers
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a significant right cup but i think at the very least will get 25 basis points and i think more importantly will be what sort of guidance jerome powell gives in the wake of the right cup because i think whatever the fed delivers it won't be enough for the u.s. president to michael hewson their t.v. market analyst at c.b.s. mark in aussie p.c. market in london thank you so much. thank you. low to know interest rates that's what we've had in the euro zone for years now the aim of course is to spur lending and spending in addition the european central bank launched a generous bond purchasing program to support ailing eurozone members all part and parcel of mario draghi has pledged to do whatever it takes to save the euro but critics say it's time to change course. skateboarders in the shadow of the european central bank don't care about the monetary policy of the central bankers the guardians of the euro behind the skatepark have been toiling for years to keep the
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economy on the financial markets going mario draghi wants a stable euro and healthy public finances for the euro zone and he reminds politicians about this at every press conference. women titian of structural reforms to newark around trees need to be substantially stepped up to most of europe of activity and growth potential reduce structural unemployment and increase resilience after the global financial crisis it was dragging and not the european governments who acted as the savior by buying up around 2.6 trillion euros in government debt now it's really a euro zone's number one problem child is getting itself more and more into debt dragging has to keep interest rates low so that member states do not become insolvent. after iran's ayatollah mahdi on the one hand maher drag established a monetary union in 2012 however he also steered the european central bank very
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close to the political line and the effect of this was to finance government spending and politicians finance ministers especially from southern european countries became used to this kind of support. ruined right now interest rates are at 0 there are even penalties for saving money short term this bothers savers pension funds now have to engage in risky speculation to get returns on their investments property prices are going through the roof shares a booming christine lagarde 1st task is to find a way of paying for all of this druggies designated successor must find a way to escape the politics of cheap money. the antigovernment protests in hong kong are hurting the economy while economic growth for the last quarter is expected to strengthen to 1.6 percent economists do not expect the recovery to last analysts say the demonstrations against the city government and its political
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masters in china scaring off tourists paralyzing trade and hitting hong kong's reputation as a regional financial hub and all that while the u.s. china trade will cast a long shadow on hong kong which severs trade and finance or serves as a trade and finance gauge wire to the chinese mainland. so let's talk a little bit about what's at stake and i've got in the studio with me oh very own china expert clifford kuhn and so cliff it could this political crisis in hong kong turn into an economic one. i think it could at the moment in hong kong what we have is a typhoon 8 so the warning on things 17 tends to batten down the hatches a bit get into the offices. of the office or close get into their homes and it's a time for reflection i think it could have an impact on. tourism on those sort of areas in terms of the broader economy though i think a lot of people are so much more worried about the u.s.
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china trade talks for example they're waiting to see how this spills over it's not quite like in the umbrella protests where the whole city was shut down it's been quite localized so far obviously it's having an impact and it's hitting sentiment but i think so far what it will have an impact i think is probably you should so far all right but i mean we certainly i mean we stressed it also just now that it is a big financial hub how likely is it that because of everything we've seen there the financial players could pull out of hong kong and we have to well i think this is the 3rd biggest financial hub in the world after new york and london and i think it's very mature at this stage and i think a lot of people know it's going to make any rash decisions i think there could be some couple of like to places like singapore. it has similar conditions in some ways to hong kong with free flow of information independent judiciary and with just seeing that launch of the the stock market yes the stock market in shanghai then
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accord that did in china then the beef at the straw market so there's a possibility the chinese money will stay in china so. between those 2 options there is a possibility for capital flight but at the same time people trust hong kong and they they like the conditions with hong kong it's a gateway into china for the region so i think longer term its prospects are good once it's resolved these political issues radcliff it can and the business thank you so much for your insights. and now to some of the other global business stories making news. airbus says its profits more than doubled during the 1st half of the year they reached a $1200000000.00 euros thanks largely to increased production of its a $320.00 aircraft european company is on course to be the world's biggest plane maker this year due to the prolonged grounding of boeing's 737 max jets. a former c.e.o.
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of folks subsidiary audi rupert has been criminally charged over the diesel emissions scandal german prosecutors say he became aware of the cheating on emissions test in september 2015 at the latest it allowed to be affected cars to continue to pursue all. sums and has posted a drop in net profit of more than 50 percent for the 2nd quarter of the year to $4400000000.00 the south korean tech giant puts the slump down to global factors such as the us china trade war. now despite having a population of just 15000000 senegal is one of the biggest contributors to ocean plastic waste although a ban on plastic bags wasn't acted in the country it has not been enforced well now the government is planning a crackdown to curb the plastic problem. if you buy vegetables at the market in the center gillies capital dhaka there's
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a very good chance they'll be given to you in a plastic bag that's hardly a local phenomenon according to the united nations environment program 5 trillion plastic bags they used each year but senegal is paying a higher price the most for its use of them because donations atlantica scapes a market by mounds of cheap plastic the problem here is hitting the country's key livelihoods farming and fishing so authorities have decided to finally act and follow the lead of other african nations in dealing with the plastic issue. the problem of plastic waste is highly visible in africa and the continent has led the way in enforcing back bans tanzania recently became the 34th african country to introduce one in 2017 kenya imposed some of the toughest restrictions in the world with those convicted of producing selling or even using plastic bags facing up to 4
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years in prison senegal did put a ban in place in 2015 but it's never been enforced. the government says it will finally start to enforce the ban on plastic bags in senegal and may even use the country's security forces if necessary. environmental officers will hold public gatherings to inform the senegalese about the negative effects of plastics for health agriculture a marine life. that is your business update here and e.w. for more please do check us out on the line or follow us on twitter on facebook for me on the team here in berlin thanks for keeping us company.
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robots are still in the development phase folks but it's going to happen when they grow. will humans and machines be able to peacefully co-exist or are we on the burn show for obama. if we just bumble into this totally unprepared for the presidency she using to think about what could go wrong then let's face it it's probably going to be the biggest mistake human history. artificial intelligence is
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now spreading through our society. experts be able to agree on ethical guidelines or will this technology create deadly new autonomous weapon systems. robot collapse codes aug 14th on d w. welcome to news from the world of arts and culture and we will be looking at the future of music robots ai and hopefully the human touch as well also coming up an exclusive wine festival in switzerland only takes place 5 times every century. and a german island that has more coastline per square kilometer than any album. we
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start with music and a landmark ruling by the european union's top colt the case involving iconic german band kroft back and hip hop producer moses pelham who used to crawford sample on a 99 head of his european court of justice ruled that if the song but is recognizable music producers have to oss the office for mission a case that could affect the future of music. and the future of music is actually what we're going to concentrate all now call fact we're only pretending to be robots in the 19th seventy's today robots or some form of ai creating music composing it and our access to music has changed everything is a viable to download all stream. it sounds like.

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