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tv   Business - News  Deutsche Welle  June 1, 2018 1:02am-1:16am CEST

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tariffs and retaliation the u.s. pushes ahead with punitive import levies risking a trade war the metal duty's against some of its biggest allies is sparked outrage from world leaders saying reaction on financial markets disputes also hitting stop prices for american companies. also coming up on the program can use youth takes to the streets to protest corruption. this is your business update i'm headed home free in berlin glad you could be with us well it is official the u.s. commerce secretary wilbur ross says the u.s. will impose penalty tariffs on imported steel and alum in your products from the european union will come into effect on friday along with tariffs against canada and mexico steel will face a twenty five percent tariff on the minium ten percent after hard negotiations at
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the o.e.c.d. conference in paris e.u. negotiate is unable to get the u.s. to reverse its position the e.u. has already put together a list of u.s. products which will now also face retaliate import tariffs they range from agricultural produce to famous motorcycles or business ties across the atlantic are now at a new low but u.s. commerce secretary will ross makes it sound like european leaders are just blowing the whole situation out of proportion take a listen the church of your for our room. for a. beer. soft during super because it's all but a fraction of a pony each of those in terms of when order moved it's also a frog should move one bruce. for there come in the overall it's a very small fraction of one bruce remember we were in
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a trillion dollar economy now and our correspondents a few months he joins us now from wall street sophie the u.s. commerce secretary wilbur ross i mean trying to play things down but investors don't seem to be buying it u.s. companies are already taking a hit if we take a look at the stocks who's hardest hit right now the american automakers for example are suffering because many of them are still importing auto hards from the european union for example so they're going to face higher costs which eventually are going to lead to american cars getting more and more expensive and then there are the food producers they need as a mini i'm sure they can so they're facing higher costs and have to charge higher prices while european or canadian competitors are able to simply dodge the tariff because they can export their canned goods into north america and then the energy
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sector is going to be hit hard in as the demand for steel is going to stay the same very probably u.s. companies like u.s. steel are going to have to cover it all which sounds like a good thing but these companies haven't been able to work efficiently follow prices that is why in purchaser of imports were flooding the american market in the first place so there are a lot of potential losers here i mean as we've heard time and time again a trade war will only hurt both sides does trump think he can keep things from spiraling out of control at the same time as getting what he wants. i think he's making a calculation and calculates the costs of terrorists through higher prices as less harmful than the competition with the e.u. or canada mexico china and he is also trying to live up to some pain promises he has made especially to voters in the rust belt and to industrial companies it
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might not make sense economically especially as the trade deficit is not necessarily going to spring that way with retaliation from so many different sides with hurt mexico and canada the us are not going to be able to export more and literally everyone else has been begging not to go their people and his own republican party lobbyist because they fear that these terrorists are simply going to have the effect of tektites or hurting come too much and manufacture it. sophia szymanski in new york for us this evening thank you very much. well here with me in this studio to talk more about this is alan kohler from the j.f.k. institute at the free university of berlin when imposing these tariffs president trump invoked a seldom used section of trade or from the one nine hundred sixty s. in fact allowing him to impose trade barriers when there is
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a threat to national security was was there any sign of that. i thought canada i thought the european union i thought mexico were all friendly countries and also that we're all in the same boat together speaking about security so it's clearly one of these distant ideas of industrial policy if you don't have something very specific then somehow you're less of a nation less secure but it is clearly just made up the only way he could get to do what he's just frightened to do and he's doing it does seem rather obscure but the u.s. common. saying that not enough had been done to reduce that trade deficit we do have to acknowledge it is it is very large does he have a point that sometimes you can say you got there is that deficit now the question is do we agree what the cause of the u.s. deficit are economists are actually pretty much in
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a great agreement it has to do with the macro economic imbalance between domestic sources of saving and the attractiveness of investment and it happens to be the case that the those reasons have nothing to do with protectionism that what could end up being the case everybody is poor and the trade balance imbalances remain it's getting investment and saving back into the line meaning the united states would have to start saving. in particular the large future deficits should be something that the u.s. congress should worry much more about those reasons aside now we've going one step further brussels has said that it will retaliate is drawn up at least with jeans bourbon whiskey cranberries oranges motorbikes for example and also is says that it wants to take that case to the world trade organization and i think it's fair to say that president trump has shown
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a flagrant disregard for such institutions do you think this would be enough to force his hand oh there's no silver bullet in dealing with this in ministration so these are symbolic actions if the if the european union only was buying something like soybeans the way the chinese are buying soybeans from the united states or have been that would be really leverage harley davidsons bourbon this is all symbolic actions i think indicating that it could get worse we don't want but it's also an indication europe does not want it to get worse the normal procedure when there's a hand a trade dispute is to go to the w t o. but forcing america to be outside and not inside is probably the right strategy right retaliation escalation at the moment from the european union when clear from the j.f.k. instead of three instead of the free university of berlin or is great to have your analysis. deutsche bank shares were down at
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a historic low on thursday after a downgrading by u.s. federal institutions came to light according to the wall street journal the downgrading actually took place a year ago first the federal reserve labeled the banks u.s. businesses troubled this in turn causing the u.s. federal deposit insurance corporation to watch a bank on its list of problem banks those with weaknesses in danger during their financial viability the revelation comes amidst the bank's restructuring efforts. a corruption scandal is rocking kenya twenty four of the country's highest officials are accused of misappropriating funds with seventy million euros and this court proceedings unfold more and don't details are coming to light and people as taking to the streets in an angry response. it's mostly the young people in kenya who are angry kenyan police have arrested the head of the government youth organization with legibly stole the money the funds were slated for financing
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education and training programs an important project in a country where every fifth young person is unemployed many here feel that corruption is stealing their future and with their chances for better education work and money think of it we've reached the point where we can't take it anymore it's just so immoral i felt bad and i thought i should join the others and what i've. always said corruption makes others lose opportunities if you look at our roads our hospitals job opportunities they have all been neglected because of corruption. you mailed to me or possibly of his study. the kenyan government is feeling the heat in the past weeks many cases of corruption of come to light in kenya's health energy and agricultural ministries officials there either stole funds or accepted bribes. well african migration could be the key to boosting growth on the continent so says a report from the united nations conference on trade and development it says that
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when it comes to migration the narrative is all too often negative that migration from one african country to another could be set to transform the continent. the rhino camp in northwest uganda around one hundred thousand refugees live there the majority of them come from south sudan aid organizations like the german red cross and developed home to help us help the refugees to earn a living like starting their own farm. uganda isn't the only country in africa that accepts refugees most of the africans who have sought a new life within africa went to south africa last year around two point two million people the ivory coast is number two with two point one million migrants from other countries uganda ethiopia and nigeria have all except in more than a million migrants. countries who host migrants also profit from it that's according to the most recent u.n. c.t.a.
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to study it also states that african countries will ultimately benefit from the migration. europe today with the latest from the wild all business thanks here company and. cut. cut cut. cut. cut cut cut cut cut cut. cut. cut cut cut cut cut cut cut cut cut. cut cut cut cut cut.
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cut. take it personally. with all the wonderful people in stories that make the game so special. for all true for. the become more than football on line. you can tell a lot about this is why it's garbage. the first six months list for the rich but for many poor people it offers their only chance of survival a and i could be on for today just like us. our reporters travel to nairobi and forums know the truth teller courage. has created a surprising claim what does all this mean for
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economic inequality around the world as a starting place warco the response. so that statement should be yes we are starting class warfare because we're tired. and actually disrupting the economy. bridge. exclusive reports starting june eleventh on t w.


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