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tv   Business - News  Deutsche Welle  November 8, 2017 2:15pm-2:31pm CET

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now for a quick reminder of the top story that we have been following for you here at the u.s. president donald trump has arrived in china for what has been called the centerpiece of his first asian tour trunk as expected to push president xi jinping on trade imbalances and to increase pressures on north korea to curb its nuclear ambitions. well up next economic advisers have just given the german economy a good bill of health and increased the amount of growth that they expect for next year. we'll have the story in just a few moments time you're watching t.v. that are. united against climate change. big challenges for the twenty third u.n. climate conference in bali. how our nations working to meet their paris agreement targets come twenty three this weekend next on the doubling news.
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and d.-w. of me speak your language so you've got them. for content in dari pashto and order prospects for returning our web special meeting at the refugee journeys of life in germany and the prospects for those returning home. join the discussion on t w dot com and on facebook. prospects for returning. d.w. made for mines. burlington's panel of economic advisers gives the government good grades will keep in the economy's strong panel revised upwards its growth focus for next year but says the danger of the economic being called an overheating. and e.u.
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regulators raise the bar in their bid to reduce emissions from cars but they are already getting pushback from germany. this is either your business i'm going to help us welcome a new set of challenges could be said could be said to hit european carmakers the e.u. commission is proposing another thirty percent cut in vehicle emissions a new study shows. factories are already having trouble meeting existing targets permissable level of emissions for new cars in europe is ninety five grams of c o two per kilometer kilometer on average that means that some models can produce more than this as long as others blow less into the air but german carmakers folks and b.m.w. cannot even meet these targets according to the report their emissions are still well over the existing threshold to go to p.s.a. are in a better position at eighty nine and eighty seven grams respectively they already
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come in below the current targets but the industry as a whole is not moving fast enough in reducing emissions that's why the e.u. wants to extend reductions until twenty thirty and lower the limits to sixty six grams of c o two per kilometer for german carmakers as we've seen the new rules could be a game changer. there's a lot at stake and nowhere more so than in germany carmakers here were on tenterhooks as they waited to find out the new rules of the game the european commission proposes a thirty percent reduction to car carbon emissions by twenty thirty otherwise car makers will face penalties it's a thorn in the side of germany's car industry already grappling with the fallout of the diesel emissions scandal. but the new plan also allows car makers to offset their overall target if low and zero emissions cars surpass the e.u. benchmark. taking
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a closer look at the country's auto industry the livelihoods of some eight hundred thousand people depend on it german carmakers produce fifteen million vehicles worldwide each year that amounts to around four hundred billion euros in revenue almost a fifth of g.d.p. . so it's hardly a surprise that german carmakers enjoy a rather cozy ties with lawmakers in the past efforts to get tough on regulation have been met with fierce resistance here's what the head of germany's automotive industry association had to say back in july. the wrong kind of political intervention could threaten the car industry. as long as politicians proposed guidelines instead of interfering with technology this sector will continue to succeed in the past politicians or bureaucrats making decisions on technology has not been good for jobs or for the economic development of the country you're shifty go if you go to if you can become honest about. jobs and
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economic development under threat environmentalists say such arguments have enabled car makers to get away with far too much the auto industry may have a sympathetic ear in germany but on a european wide level there may be a bumpy road ahead. those bombs going down on the trading floor let's cross over to frankfurt where. cole is standing by. his being hit. well this is certainly a topic that investors are very much more mature in because they're also talks about possible penalties those car makers would have to pay and there's always reminds carmakers of the huge amounts they have to pay because of the diesel gates scandal and i can tell you that shares of volkswagen and dima are down this afternoon volkswagen by about half a percent and by about
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a quarter percent shares of b.m.w. are recovering a little bit after they were hit very hard yesterday when they were announcing that they were making less profit because they were doing bigger investments regarding to bill a team so i can tell you that this news today is topic that is here very much more niche on the trading floor. in frankfurt thank you. germany's economy is in an exceptionally good place it seems according to the annual report of the country's so-called sages of the economy that's an advisory panel to the government germany's in the midst of a strong upsurge the experts forecast growth of two percent for the current year and as much as two point two percent for twenty eighteen that translates into quite decent tax revenues and some financial leeway which say the wise men could be wisely spent on tax cuts and reducing government expenses they also recommend the
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government invest in education and research as well as in germany's crumbling infrastructure that means improving roads and speeding up internet access for example which is an international embarrassment in most parts of the country well wise words from the wise men and one woman one of whom now joins us as luck would have it last felt as an economist at the university of auckland joins us now from our parliamentary studios mr felt the economy is humming along nicely the finance minister sitting on a pile of surplus tax income unemployment is low you say taxes must drop but how realistic is that. well first of all it depends what type of tax cut is planned by the newly forming government when there. would be a reduction of the income tax schedule they need the lender in the winter. to agree
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with that so it might not or be not be easy to achieve then but in general i must say what is the top priority in an open and a few is continuing with sound fiscal policies the way for tax cuts is not as large as the projected surplus budget surplus of the general government indicates so structurally speaking when you take all the business cycle effects out and make cyclical adjustments the only way for tax cuts is much lower and the priority then must be so to speak as a second priority after a sound fiscal policy is to come up with tax reforms that increase the potential output of the economy and therefore the capacities when you talk about tax cuts do you have any recommendation about how by how much tax like the income tax for example should be cut. well we are not advocating
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a particular reduction we are saying when you look at the structural budgetary surplus next year it's about point four percent of g.d.p. according to our forecast. but what the government must find out what is the best solution by bringing together income taxes on the one side in the solidarity surcharge on the other side and the difference between both is in particular in two respects for income tax cuts the government needs to concent of the lender. but also the burden of tax cuts. in the sense of less revenue for general government is shared between them and on the other hand if the solidarity surcharge is cut this means that only the federal government has to bear the revenue reductions but on the other hand it doesn't need the lender to consent. you say
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that there's also a danger of the german economy overheating what does that mean and what can be done to prevent it. but what we currently see is that we are running above capacity in the german economy if you have counter-cyclical economic policies this would finally trigger stronger price increases as we currently see the forecast inflationary to be at about one point eight percent next year core inflation would even be higher by one point nine percent so we are coming very close to the two percent target and additional public spending in areas where the economy is already above capacity would only increase prices very briefly if you can what about infrastructure investment what does germany need there briefly please. are currently there are already several infrastructural projects that are running and infrastructure investment has taken up particularly i would not add additional money because the construction industry doesn't have the capacities to conduct
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these additional works loss felt one of the wise men of the economy thank you very much for joining us today thank you. twitter is doubling its notorious limit of one hundred forty characters per tweet to two hundred eighty donald trump must be thrilled and many investors actually are finally the messaging services saying this song wall street has been wanting to hear for so long they think more characters equals more money. jack dorsey c.e.o. of twitter tweeted a statement reminiscent of neil armstrong's famous moon landing quote dorsey wrote it's a small change but a big move for us doubling the link of tweets really is the biggest change in the company's history twitter went public in late two thousand and thirteen back then analysts hoped twitter would be another facebook but in contrast to facebook
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twitter has never found firm financial footing the result since its i.p.o. in late two thousand and thirteen twitter shares have fallen from forty six us dollars at the debut to around twenty dollars now the problem the number of people who logged on to twitter was flat for years in the u.s. so far the company has dealt with that problem by ringing more revenue out of the same number of people by selling better targeted ads but since this summer the number of people logging on has decreased in the u.s. and other markets twitter hopes that expanding its character count will attract more users to the service but twitter's new strategy can be explained in less than the original one hundred forty characters more words more users more money. well let's hope so that's it for me and the business team here in the lab update for you in the next hour more news at the top of the hour thanks for watching.
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and business safe the climate question that the u.n. climate change conference. toward syria any discusses b.s.u. with a distinguished panel of experts is movies among continue to do we have solutions we have company we have the technology we can be
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a role model of father companies it's not only about today it is also of all to pause and obviously on the future global tool not next to me in the next. two w.'s program guide on the internet highlights. the whole. dot com highlights. their black and living in germany. has reminded me what that means on a daily basis presenter john updike is nothing i have to plan. and i'll risk. taking a group and being you know different than the rats. she traveled to cause. germany to meet other black people and to hear their stories. it seems as. though i grew up in a white family in a white neighborhood it was definitely a challenge. she decided to put me up for adoption. so the
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main thing was to keep your head down and your mouth shut of course of the face like this i could never completely disappear if you see all these stereotypes about africa it's good to see you. do something for your country but you're still the black guy with an. afro germany starting december tenth d.w. . business and save the climate hello and a very warm welcome to global talk on d w i'm sorry we are coming.

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