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tv   Business - News  Deutsche Welle  January 27, 2022 5:45pm-6:01pm CET

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marcus slide as the u. s. signals and into easy money. the federal reserve sets out a plan to close out its pandemic stimulus and bring rising prices under control. we'll look at what the decision means for the u. s. t, and for the rest of the world. also on the show germany hopes its economy can shake off the pandemic this year and face the bigger challenge ahead. a climate transformation. we'll look at berlin's latest forecast and we'll go to india for look at how businesses are dealing with the latest wave of the pandemic. and we'll talk to our correspondent and deli flooring. welcome to the show. i'm seen beardsley in berlin. it's good to have you with us stock markets in europe and asia tumbled thursday after the u. s. federal reserve laid out plans for pairing back the pandemic measures of the past 2 years exchanges in tokyo, hong kong and shanghai, all sinking as the fed signal. it would raise borrowing rates in march and wind down asset purchases. european markets also opened with losses. fed chairman drone,
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powell said, rising prices and strong job growth, make tightening necessary. higher interest rates make borrowing more expensive for both companies and individuals. now exactly when the u. s. might see relief from rising prices is still a big question. here's powell for. so there are multiple forces which should be working over the course of the year for inflation to come down. we do realize that the timing and pace of that or are highly uncertain and that inflation has persisted longer than we and than we thought. and of course, we're prepared to use our tools to assure that higher inflation does not become entrenched. our business work is under st. joins be in studio for moral this cassandra very parent that inflation is a big part of this decision. exactly. so rates were low to encourage people to spend during the depths of the pandemic. this is a way to keep people employed, especially in a consumer reliant economy like the united economy. go keep it going,
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keep people working, keep people spending. but there have been a lot of, bumps along the road over the last 2 years. i'm sure people are sick of hearing the word supply chain issues, but we've also had higher energy costs. and that combined with this american desire to keep spending. and so now we're seeing record breaking inflation levels. and this is seen as a way to kind of cool that off not only cool off the rate at which inflation is increasing, but also hopefully to make sure that these high prices that a lot of americans are seen don't stick around. all right, well a lot of the world seems to have to be reacting to this obviously market slumping. this is a big shift after 2 years of near 0 borrowing rates. this appears to be a big ship. we can say this, right, or is a gradual, how do you see it? in some ways, this is a big shift. you know, these loser economic policies have been around since march 2020. but people who have been kind of reading the tea leaves seeing some of the signals that the fed has been putting out of the last couple of weeks. they're not going to be surprised . the questions that were hanging in the air were, when is this coming?
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and by how much are they expecting to raise it by and bid from the announcement that we had on wednesday? we have a clear understanding of that. we're expecting the next rate hike to come in march, and we're expecting it to be by a quarter of a point. and if all go according to plan, this could be a just part of a series of inflation in rate increases over the next few over the course of 2022. the keyword there. if all things go according a plan, that is always a mystery or because i just want the w business. thank you very much. well, the german economy is looking for it's pat out of the pandemic, even so the next challenge is not waiting countries. ambitious climate goals, including an energy mix of 80 percent renewables by decades end, require nothing less of a structural change. the german business industry finance. even a new government report says the country can't do it. the mood in germany is slowly brightening. stores and restaurants can remain open despite the rising number of
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calvin 19 cases. businesses, a once again optimistic about the future, despite supply chain issues. according to the latest business climate index. germany's economy is slowly emerging from the pandemic slump. it grew 2.7 percent last year. in 2022, the government expects the recovery to continue with annual economic growth forecast at 3.6 percent. that would return the economy to its pre pandemic level. but growth isn't the only measure for prosperity, says the new german economy minister robot hobbit, during the launch of his government's 1st annual economic report, he said he once business to do more for climate change and social justice. and as we are building on germany's longstanding social market economy, making it an ecological social market economy, one that redistributes power, prevents oligopoly that and enables competition. so that markets are regulated to
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serve the economic interests and not only profit the few had him convinced him for items. but for now, many companies have other concerns supply bottlenecks, shortages of raw materials and high energy prices will continue to plague the economy this here. and surging inflation could also dent consumption and investments. and now to some of the other global business headlines making the news deutscher bank are to record 1900000000 euros last year, mostly driven by its investment arm. germany's biggest lender says it's reaping the rewards of it's strategic overhaul. since 2019 deutscher bank has withdrawn from some of its riskier businesses and should 18000 jobs worldwide. tesla earned a record 5500000000 dollars last year as deliveries of its electric vehicle sort. electric car maker delivered almost 940000 vehicles in 2021. that's nearly double
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the year before the company said it won't roll out any new models. this year because of the global chip shortage. speaking of chip, samsung's profit jump, i more than 50 percent to $11600000000.00 last quarter, due to a high demand for its computer chips. the korean tech giant said chip supply will remain tight this year. due to the expansion of 5 g mobile networks, as well as broader demand for tech products around the globe. china's trading goods has jumped eightfold since it became a member of the world trade organization 20 years ago. combined imports and exports top more than 6 trillion dollars for the 1st time in 2021 over to india, where the latest wave of corona virus infections is leaving a trail of damage in its wake. in particular, for retailers in the service sector, new restrictions across the country have been to loss of livelihoods and income. and this hair salon in india's capital deli has hardly seen any footfall as
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a 3rd wave of coroner virus hit the country. the rising cases have impacted the livelihoods of people working in the wellness and beauty sectors. yuki, a man, i mean the one of the lights, a contact in this tree is haircuts waxing. make up covet has affected the salon industry. a lot of your clients are scared of entering the salon with a be take precautions such as masks like face shields, gloves, and we sanitize everything that it takes a toll on us financially. the clients are scarce boy, and we have to pay the staff and the rent before we paid salaries from our own pockets because we can't for the staff when they say it was the same during the 1st . and 2nd, waves a gloves be sanitized, he got a, an unseemly reward that i am back. but i have economists forecast the gloomy outlook for india's economy. and the reason is that indian regarding you know, a large, unorganized ago,
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we did 94 percent ago workforce and they are the ones who are hit very hard was by your floss, given the 2nd grade. so did what you think bother to lay low dad lost a lot of income debt, employment was lost and that's why you know, the demand was not covering the or mc groan has again effected on a situation which was already not to go back to 2019 fresh restrictions have impacted retail businesses as well. a pita, barley, joe owns a fashion design studio in delhi, allows 1520 days down my boss boy walk ins near. we don't have any walk in start at ward when customers want to visit. this studio is close to a bundle that clients are fearful, and they don't shop. it's problematic. we are paying salaries and expenses from our pockets. we were forced to terminate a few workers who worked on a freelance basis earlier. we were able to support them, but there is no cash flow. now. we didn't want to do it,
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but that is what the current situation dictates, per se. then the market liquid about this i, some economists believe the economy will recover after the, on the current wave. but the labor market has yet to reflect this charo carts. a car is d to be corresponded in delhi, the charo. how has this current wave different from that delta wave last year that up into so many lives and livelihoods? i, steven, so the essential difference has been in the, in the drafting difference in the number of cases of hospitalization. as well as dense, you know, the secondary was devastating for the entire country. lot of people lost their lives. it hasn't been so in this wave, and that has been the essential difference. however, the veto spread of infection has been really rapid. and that has what has affected the policy making that boot that was adopted by governments across the country. and the difference that has been made to business activity as well. that
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is essentially a difference of full lockdown in the 2nd way, versus partial law downs and partial restrictions. this time around attorney, you mentioned those restrictions. what's hitting businesses across india, harder right now. is it those restrictions or is it the public concern over the virus? the shoppers don't want to come out what the student right now is the restrictions which are basically hitting businesses because in a lot of city, a lot of businesses have been shot for example, cinema, hose, mall, restaurants, and bars. these are shot shots that are open, they are opening on a, on an alternate sort of basis. so it's going to be fixed and right now, auto thinking businesses across the country, the public before the wave hit, we could see people in markets. people crossing markets, actually it was sort of a super better concern. so people are visiting markets, but yet there's a 3rd factor that has been affecting the economy and that has been affecting even
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before the panoramic hit us. and that is a general absence of demand in the economy. this was further accentuated by the pandemic, and the demand is yet to pick up the differently, steven the unofficial sector in india. so big. how does that complicate management of the pandemic? when you read stephen, be an official sector, it's very big, it comprises more than 90 percent of our workforce. and unfortunately, because of the nature of the problem that this workforce being an organized, unofficial, it does not figuring any of the official numbers that affect our policy making. it doesn't go to the gdc number. it doesn't figure in other number that the government and the effective in for their policy making. so the essential picture about the overall story of the way the economy heading picture gets, gets skewed massively. and therefore, when the policies come by, the policies make very little difference to the misery that the unorganized
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workforce is going to steal. all right, charl konica, correspondent deli, thank you very much. and his reminder of our top business story, this, our stock markets around the world are down after the u. s. federal reserve signal a faster into pandemic stimulus measures including low borrowing rates exchanges in tokyo, hong kong and shanghai fell on the news. european markets also opened down. that's it for me. and the dw business team here in berlin. checks out a line w dot com slash business, ex watcher through ah,
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