tv Business - News Deutsche Welle March 29, 2018 7:15pm-7:31pm CEST
face is t w news is still to come in exactly a year britain is due to leave the european union and strike out on its own and a globalized economy so how is the prospect affecting the british business i've got alphas will be filled with mobile apps and just about. i'll be back at the top of the hour with more all for use out world news in the meantime of course as always the websites d.w. dot com. for. the d.w. media center see it find it here it discover.
video and audio podcast and language courses in the g.w. media center at media center dot de w. dot com. brian dortmund. because a favorite seems to leave all the best goals we've got all the action deep double is the home of german football share the experience every match for. the fund is legal every weekend here on t.w. . it's team minus three hundred sixty five and counting britain's departure from the e.u. is just one year away today as the british the british decision to leave the e.u. impact of the economy on both sides of the shop. and foreign direct investment in saudi arabia is heading. for a boost as the country joins
a key london based even urging market index. also coming up a haven if it weren't for all the tourists now authorities in thailand say they have had enough shutting down the country's most famous big. this is the w. business live from berlin i am going to head off as welcome for twelve months time today britain will formally leave the european union there will be a transition period sure bus day will be out while many welcome it more of worried about the economic consequences because the numbers are not in favor of britain leaving the e.u. as a closer look last year the euro zone's economy expanded more than two percent but in the u.k. g.d.p. rose just one and a half percent this year british economic growth is expected to slow even further that we can economic outlook is also weighing on the currency the pound it's velo
value has dropped fifteen percent since the briggs's referendum of june twenty sixth seen week a currency makes exports more competitive but imports more expensive and that has an impact on inflation which has risen more than three percent its highest point in five years that economic climate has led to increased borrowing average household debt that is debt as a portion of income now totals around one hundred fifty percent that's the second highest rate of any advanced economy after canada so what will break the brink we've heard doomsday scenarios and promises of a land of milk and honey if britain is lucky it will be somewhere in between to discuss that with me i was earlier joined by michael hewson a senior economist at c.m.c. markets in london. well you say you summed up the numbers quite nicely just a few few minutes ago and you talked about the fact that the european economy now
perform the u.k. economy and that is only true. contrary to the predictions of doom and gloom that work came out the fall the brics referendum economic growth actually hasn't been that bad and let's not forget here that the u.k. economy has expanded from twenty consecutive quarters has been expanding since two thousand and twelve the economic recovery here is much more mature than say for example the economic recovery in europe so i think we are slightly ahead of you in the economic cycle which would i think reinforce the reasons i think why the european economy is probably growing at a faster right but certainly i think there are there are obviously negatives inflation you mentioned it is slightly higher it has pressed down on consumer spending but overall the unemployment rate is twenty five year low and wages to finally starts to be appear to be going up so there are silver linings you
spoke about the negative consequence one can already be felt which is the breaks of financial institutions it seems to have started banks are moving people to come to know how much will remain of london as a european financial center. i still think the london or a minus significant financial center a global financial center people have been writing the a pitcher e. for london as a center for financial services for quite some time we have the infrastructure here in the u.k. you know with a guy whites of the u.s. with a gateway to europe i would really hesitate before we start calling the dinars of london as a financial center it's go pretty much going everything going in his favor and i would really urge policymakers on both sides of the channel to think of that in the months ahead. look at trade relations britain will not get any special deal it
seems and become one trading partner of many for the you will that hurt and whom. yeah i mean financial services are a big part of the relationship between the between the european union and the united kingdom makani the bank of england governor said essentially london in the u.k. is the central bank head to the european economy so wally officials have said there will be no financial services paul supposing i think it's incumbent on both sides to make sure there is some form of arrangement which does include financial services there was some talk about it with respect to the canadian trade deal i think it needs to happen because it's going to be very difficult for the european capitals to pick up the amount of slack that would be necessary to actually execute a seamless transition from what happens here in london so what happens in europe michael used c.m.c. markets thank you very much for this analysis. before we come to our next story
some breaking news coming in the foreign ministry in moscow says it will shut down the u.s. consulate in cent petersburg the move is being made in response to washington's decision to expel russian diplomats following the poisoning of the former russian spy sergei strip are in britain we'll have an update for you on that story of course at the top of the hour in d.w. news as briggs it looms british businesses are increasingly i'm sure about what to expect when the country has left the e.u. but if it effects companies of all shapes and sizes from big multinationals to small manufacturers because most of them have one thing in common they depend on sales in other european markets alex pool has profited from the craft beer boom he and his partner founded the brewery by the horns six years ago we do explores the causes are we explored to cover the sweden norway italy more recently russia
they're all well and to prove to their backs a third has had a positive impact on their business the british pound has depreciated which is why their beer has become cheaper for european customers the down side british be a produces by some of the footman to brought their wheat pound makes these purchases more expensive this can line was bought in italy. were reported this year . he's actually they've pretty much crossed probably twenty twenty percent thirty percent more than than what it would've done before breakfast probably despite britain's plan to leave the e.u. spirits are high not only among craft beer producers confidence has gone up over the last few months among the u.k.'s small businesses. they hope to brag that negotiators will keep their interests in mind not only those of large global players. german comic of folks foreign has bought back almost three hundred fifty
thousand diesel cars fitted with their emissions cheating software from its customers in the u.s. but what to do with them or with all the comic or at least thirty seven storage facilities around the nation the lots include a shot at suburban detroit football stadium and this sun bleached desert patch in california because here are waiting to be fixed and resold but that of course takes time and may need even more parking lots as buybacks will continue through the end of next year. saudi arabia's stock market has been given the green light to join the key footsie russell emerging market index the move could attract billions of dollars of investment to the country and that would be highly welcome as the kingdom embarks on attempts to reform its economy. for decades saudi arabia has relied on oil to power its economy but a slump in global prices have highlighted the urgent need to diversify. that
prompted crime prince mohammed bin solomon to embark on a series of economic reforms top of his agenda attracting foreign investment a goal he's been pursuing during a host of meetings with international leaders like this one with the u.s. president earlier in the month. the latest news that saudi arabia is to be admitted onto a key index for emerging markets has therefore been hailed as a landmark in the country's economic transition. footsie were sought is the loyalty to confirm that saudi arabia now meets the criteria for inclusion in its global benchmarks and emerging market the kingdom's entry into the international equity benchmarks marks a major milestone in its quest to grow and diversity for its economy to criteria saudi arabia mass included tightening corporate governance and easing
restrictions on foreign stock ownership. and it's expected to pay off analysts believe inclusion on the index could attract well over thirty billion dollars into the country over the next two years. for in a bid to hold environmental damage tyo thora he's of ordered the temporary closure one of the country's most famous beaches my a bad day which is best known from the. movie the beach has been visited by millions now it will close for four months a year. tourism is a major factor in the thai economy the sector was responsible for over twelve percent of the country's gross domestic product last year. most tourists head to thailand's beaches so the decision to close my beach for four months will leave many visitors disappointed tight environmental already saying the move is essential . if it is too late to save all islands there is no
but if we don't do something today it will be too late. thailand has restricted tourist sites before to protect its environment for example and twenty eleven dozens of diving sites were closed to protect coral reefs but with the number of foreign visitors expected to grow the government has a tricky job it needs to find the right balance between protecting the environment and drawing tourists. back to the breaking news the foreign ministry in moscow says it will shut down the u.s. consulate and the move is being made to respond response to washington's decision to a spell russian diplomats following the poisoning of a former russian spy in britain will not fade on that story at the top of the. news .
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