tv Business - News Deutsche Welle January 31, 2022 2:45pm-3:01pm CET
has been a hefty blow tear line travel, and despite the army con varian, things are starting to look up for the industry will pay a visit to air buses, main production site in to lose france, and will tell you why a used car and tra lanka could cost you as much as a house. i'm chris kolber. welcome to the program supply bottlenecks and the army kron waive continue to take a hit on the european economy. now the gross domestic product for the eurozone grew by a disappointing 0.3 percent of the 4th quarter of 2021. that's according to figures out just now for the whole past year. the arizona seen economic growth of 5.2 percent making up just parts of the initial pandemic related dip from the previous year. more of a recovery is not expected until later this year. of a war let's bring in neil wilson,
the chief market analyst at market dot com. welcome to the program, neil. so 0.3 percent growth in the 4th quarter for the euro's own. what are we to make of that? yeah, i think it reflects to the, the, the 2 key problems that the, the european economy has been facing, which is firstly that omicron wave. and also a bit of delta that we saw in the back end of the year. but the shut down is basically locked owns across europe in the backend of the year. that obviously weighed and not just on economic activity, but also on sentiment as well. but the, the supply chain ball to make remain the biggest problem i think at the moment at shortages affecting car car manufacturers. in particular, we've seen a big drop in car. i put automotive output by, by european carmakers last year. they the production site to record low with the chip shortage being a key problem. and i think also we need need to look at inflation and the sort of
the effect the inflation is having on economic growth. and if you look over the us, inflation is now seen as the biggest headwind to growth, and i think we are, we are getting to that point today in europe. and there's some key german inflation figures out today that we're, that we're paying close attention to. and of course it's topic that these the b roll the discussing later this week on thursday at the meeting of the governing council. neil, let me ask you, we fat the german growth figures on, on friday, the german economy contract a 0.7 percent of the 4th quarter. how much of a drag has this been versus the 0.7 percent. the french economy grew yeah, i mean, it says the case of the german economy is obviously the been the big powerhouse of europe for a while since since the beginning. so clearly did you have an economy that bit bigger than, than anyone else. and therefore, as a dry,
it does have an effect on the overall and bigger the most. so the dragon in germany probably reflects automotive being, being done quite sides of the last year. that is a big problem for, for the years and economy. i think that the numbers were transport encouraging, but of course we're dealing with the you know, a panoramic that hit the years under economy. we're dealing with base effects all the time here and it's hard to really get a handle where exactly we are. i think the keys where things are going to be heading and this year and on that front, i think overall it's quite positive. but inflation is going to be the big headwind to, to growth in your, just as is in the u. k. and, and in america, as we are still in the pandemic, how much of an issue will the pandemic be economically in the next couple of months?
so i think, i think we're exiting the pandemic. i think we're entering a phase and where, where most countries are beginning to live with. obviously europe's been a bit slow on that front for various reasons. just on a slightly different timing cycle, i think versus say the u. s. and u. k. political decisions have been slightly different, but, but by large we're exiting the pandemic. we believe this year we should be back to sort of 2019 type levels of, of movement activity and so on. so i, i think the damage is less of a threat that year and ongoing supply chain problems, ongoing chip shortages and ongoing inflation worries. right. you know, wilson chief market analyst at market dot com. thank you for your thoughts. like if by european producers or depend on materials from other parts of the world continue to deal with disruptions and their supply chains. one german company has decided to reach into its pockets to stay on top of the problem in the town of goods bug
german latter stool and scaffold maker monk is trying to stay one step ahead of the global supply chain shortage. it has invested 10000000 euros into a brand new warehouse, which it plans to use to stockpile raw materials and components that have been difficult to source because of the pandemic. a shortage of magnesium from china interrupted the manufacturers ability to make aluminum rubber feet were in short reserve to be se monthly. 40 years. i have never experience such a shortage of materials. it has prevented us from making deliveries for months. and this has been going on for over a year. there's hardly had mine in for again, so we need to leave. analysts predict that supply was in the country are responsible for the 0.5 to one percent decline in economic growth last quarter. a severe shortage of semiconductors as also impacted europe. the largest economy.
star city of the chips has prompted germany to reconsider how it's sources, parts used in computer systems of cars and construction machinery. it has pledged billions of euros to produce the pieces in europe. but since the effects won't be immediate, it's changing how manufacturers, like monk, or conducting business material on lunch will stay in the long term. and i suspect that companies will have to find a new balance between speed and cost efficiency and their supply chains on the one hand and crisis resilience on the other. an and i to about him all season festus, kind of rethinking logistics will become key to reaching their profit goals and out to some of the other global business stories making headlines around the world. german car maker diner is changing its name to mercedes benz group. the name change in concludes a restructuring process that has seen the donald truck business split from the auto
group. and saves benz is one of the best known brands on the planet valued at around 50000000000 euros. india expects its economic growth to slow down to around 8 percent this fiscal year. that's down for from over 9 percent. projected in the current year, asia 3rd largest economy behind china, and japan fights a spike and coven, 19 cases, and rising inflationary pressure. your pin airplane make. her air bus could be hit by strikes should a 7th and according to the german metal workers union, final round of negotiations failed to produce results to day. air bas wants to combine the assembly of fuse lodges, answer constructors in a new subsidiary affecting some 13000 employees. the move is to boost profitability . something the whole industry is looking for a mid to blow. the pandemic has been serving to airline travel and air buses. main
site in to lose france workers are slowly exiting the crisis mode. final assembly of an e $350.00 and to loose winds and other parts come here from various airbus plants in europe, individual parts and raw materials from around the world. the corona virus disturbed this coordinated effort. the impact as soon as people stop traveling is that it cascades through airlines, through manufacturers, through the whole supply chain. to protect it, supply chains, air bus, reduced production here from 6 the airliners a month to only 40 just as production was about to ramp up again the omicron variant it. unfortunately, it's not over. as we can see with the emergence of the latest variance, we have started a steady path to recovery. but that recovery has several rocks in the road on the way, and it will be some years before we see the industry recovered completely. it will
be sometime between 20232025. and euclid of this is where customers can choose how to equip their jets. airbus says that airlines have postponed orders, but not canceled them. they have orders for 6500 aircraft, but experts still see a sky full of uncertainty yet. thank on. would you? they could 5 years ago, we thought the air traffic would double every 15 years of young. that's why they ordered the airplane small to with the pandemic in the it's probably going to take a little longer room. i saw a dave little bit. these are screws needed in an airbus. gee, the aerospace is one of the many suppliers in the to loose region. the company laid off 3 of its 40 employees during the crisis. now it is operating at 86 percent capacity, as the bonds proudly shows us. like home on the solid, the orders are there of you, we have to build the planes. they're bound to find a vaccine for each new virus variant. and life goes on on the then search demand
shows the same assembly hall that he's having built, assigned, that he believes in the future of his company and his industry. but the corolla viruses casting its shadow here to do to the pandemic. half of the investment is being covered by the french government. it is sir sri lankan now and 2 years ago, the ailing country barred a range of non essential imports to save dollars to buy food medicine and fuel. now this band has kept a factory fresh automobiles of the road, forcing desperate buyers to pay the world's highest prices for all and no thrills. compacts answer dance. this used car dealership in the capital, colombo doesn't need to give incentives or put commercials on t v. a 5 year old toyota land cruiser, for example, costs and i watering $312000.00 enough to buy a luxury apartments in the nearby city center. but even at these prices,
this cardella still finds by us over the long carry it got some, i want to schedule a people, a car and a home are symbols of success after their marriage. feeling that is why people are willing to buy, even at these high prices, harpooned me like they had good salad underwarner, if you me are one of our a lot it in better a minute. and import. ben on new cast has also left pots and shots supply, meaning drivers are at risk of being stranded after break down mechanics, a thriving as car owners look to maintain their vehicles, most drivers are unable to afford the astronomical costs of a different car. we don't have any ballistic production records in st majority of the main border, mainly from india, followed by japan. so ha, behaviorally, sri lankan, have a love of our be there where he gets any t, c ness of the. alas,
it, it's a consumption and production asset, but people he nic and he see cars are regarded as a necessity because these motorized rick shots are not rolling down the streets like they're used to. the number of taxis has fallen sharply. drivers are selling their caps to cash in on the dizzying prices in those still working have doubled their face or more. that's our show for now. for more check out our website at the d. w dot com slash business. i'm 1st colburn berlin, thanks for watching. have yourself a successful ah, [000:00:00;00]
with ah, ah, we already knew the machine is in c o 2 reservoir. but we did not know is that the fish have something to do with could we slow down climate change by catching fewer fish? why didn't we think of this before? to morrow today? in 90 minutes on d. w. global ideas is on its way to bring you more conservation. how do we make cities greener? how can we protect habitats?
we can make a difference. global ideas, environmental series in global 3000 on d, w, and online interest. the global economy, our portfolio d w business beyond. here's a closer look at the project. our mission. to analyze the fight for market dominance. this is where it is still that head with the w business beyond on you to ah, i think everything jenny fair, some are a big a muslim. so much different culture between here and there. so challenge for empathy. ah, december's this, i think it was worth it for me to come to germany. shove my got my license to work as
a swimming instructor on dish. and now i teach children who don't stay with what's your story. take part, share it on info migrants dot net. ah ah ah, this is the w news life from bud lane, the german authorities hugs. the suspects believed to have shot dead 2 police officers during a routine traffic searching rural germany. interior minister describes the killing as an execution. also on the program,