tv Business - News Deutsche Welle June 19, 2018 1:15pm-1:30pm CEST
we'll have that story for you and all of your business headlines coming up in just one minute. lemme. tell you accidentally shed some trying to get. into trouble. time in the field. get out. with code oh it's serious. this week on d w. you're going to want to fishel estimates more than one point two million venezuelans live in colombia legally and illegally. already.
returned to. visiting friends i don't think i'll ever go back there to live where i live there again i don't know so i'm not sure. witness news that matters to me. donald trump threatens more tariffs on china the threat escalates a tip for the time to trade drought with beijing over u.s. tariffs imposed on chinese goods meanwhile europe's growth engine keeps slowing fresh data shows the german economy is losing steam and german entrepreneurs are getting ready to leave turkey amid a declining economy. and all welcome to do business i want to get jones in
berlin good to have you with us so the stakes have gotten even higher beijing accused washington of blackmail and vowed retaliation after u.s. president donald trump threatened on monday to slap a ten percent levy on two hundred billion dollars worth of chinese imports and the latest round of tit for tat exchanges in a rapidly escalating trade dispute between the world's two biggest economies but these fresh threats follow what trump calls china's quote unacceptable decision to raise tariffs on fifty billion dollars in u.s. goods following similar levies from the united states. well and now alarm bells are ringing in china as the country's exports fear the impact of those tariffs will have on trade with the united states in shanghai the composite index was down nearly four percent on tuesday that follows a week of losses that took nearly ten percent off the s. s. e. shares in hong kong also tumbled and despite
a slight recovery today the hunk saying is still nearly five percent lower than a week ago. last but not least it's been only slightly less dramatic in tokyo where the nikkei shed three percent of its value over that time and fears about the effects of tit for tat tariffs are also weighing on the german economy the munich based efore research group has downgraded its growth forecast for this year from two point six percent to one point eight percent the move follows similar downward projections from other bodies including the german government other sources of concern for the german economy include a shortage of skilled labor and also italy's debt crisis. so a lot to worry about and in order to talk about this i'm joined now by clements first president of the institute for economic research joins me in the studio first of all we've we've talked about all we've heard about all those problems do political
and trade issues if you take it all in all how does the german economy handle all this the german economy is relatively solid this is mostly because the domestic economy is steady wages are growing and bond is growing so consumption is strong and the construction sector is expanding so the do with domestic economies supporting growth but the export sector is at risk here is it risk is a because i know that the bundesbank for example is one of the few that seems to contradict your projection they expect german growth to rebound certainly in the second quarter thanks to a higher state spending can that compensate the risk you just mentioned not really we think it's true that public spending is expanding about we don't think we were bounced back to growth we expected at the beginning of the year so we were slightly more optimistic than the one or been a spike at the beginning of the year and you know we don't think there will be if
you know a decline in the second half but i don't think it will rebound all right if you had to point your finger at those risk. which ones would you say are the worst when the q. risk is clearly protectionism trum there's creating a lot of uncertainty but then we have some other factors for instance monetary policy was supporting falls and is now slightly becoming a. headwind for the economy because less so in europe mostly in the u.s. but the central banker will now stop buying bonds and slowly think about higher interest rates for the supporting forces going away then of course we have the debate about the future of the eurozone about migration how will this impact on the stability of the u.s. or is number of risks you know the mario draghi the head of the e.c.b. today in a speech in portugal actually mentioned that he won't change his policy too fast it will be done step by step which actually weighs on the euro so that must have been intended i think this was intended because they all these risks accumulating you
know they wouldn't increase interest rates now quickly but you know the debate is there and higher interest rates will be the next step it may take some time but it would come ok of course the risky i mean trade obviously that's something that we've been talking about left right and center the big issue and it just won't go away but then we still have of course the uncertainties surrounding brics it. german companies somewhat sort of better prepared now for the unknown that's hard to say i think they are preparing for a scenario of very hard break that now where no agreement would be in place which means they need to rearrange their production chains you know think about their production in the u.k. for the european markets so this will certainly hold up investment at the moment so i think it's another dampening factor and what about italy when the when the new government finally came together we know it's a populist government from the left and the right spectrum certainly one of them
not exactly europe friendly how big is the risk of a euro crisis to dog. oh i think your institute calls it i think that the government has. this year old debate they don't say anymore you know they want to leave the euro it is unclear what they will do on the fiscal policy front but condi they seem to be focusing on migration which is a problem but not so much for the economy a lot will depend on how they run their fiscal policy if they really increase the deficit massively we will have a crisis but maybe they will think about that as well the german economy also seems to be quite good at the moment at least sort of weakening itself through homegrown crises like the gate scandal and just yesterday. audi was arrested the first top executive. is that going to be a problem for europe's growth engine it is a problem it is certainly a complete p.r. disaster but there's more behind it is it seems that there is
a complete lack of strategy in the car industry about how these things should be dealt with you know how the industry wants to deal with the diesel issues and how it wants to position itself so it's really a disaster and reputation is important and this is clearly. not just damage that's not just damage to the car industry but to the entire german industrial sector right claimants who was there the president of the if it's used for economic research thank you so much thank you. we mentioned it already after the shock arrest of algy c.e.o. yesterday the german luxury carmaker has suspended rupert he is the first top executive to be arrested in germany in connection with a diesel gate scandal his temporary replacement has just been confirmed to be sales director brown shot accused of knowing about the emissions cheating in europe when the scandal broke in the united states but unlike in america he did not order a halt to production thousands of audi's with software issues have since made it
onto the road has been at the helm of algae since two thousand and seven. but turkey is holding presidential and parliamentary elections on sunday turkish president richard type added one is seeking reelection he's been in power for sixteen years and many see him as the man who put the turkish economy on the map but times have changed to the turkish lira has been plummeting for months foreign investment is declining the uncertainty is also prompting german businessmen to pack their bags. fresh fruit and vegetables are the bedrock of maurits far vine's business four years ago the german entrepreneur started a small company in istanbul he made juice that he sold from a small shop but a year ago he had to close the shop down many of his customers were foreigners who had left the country after the attempted coup you know sells mostly to hotels. this is this is carrot apples and pepper. he and his american partner built
a business up together but now they are looking to leave turkey there's more driving their decision than a longing for home on one side of the house how often this is life here has changed . this is it isn't as free and open or as relaxed as it used to be. i think the main reason is that so many people are under pressure because of the economic situation. the turkish economy has kept growing since the coup thanks largely to government spending but the turkish currency the lira is under severe strain that means imports have become more expensive the weak currency is also fueling inflation increasing numbers of people are experiencing financial hardship add to that the political situation and many foreign investors are feeling spooked . a little some it's also the politicians are trying to make people believe that
the poor exchange rate with the dollar well the fact investors are avoiding the country has to do with high interest rates which it doesn't and tacky everything is connected the justice system education security certainty it's all tied to the economy money economy dan baum says you know the economy. when fall behind leaves the country his company will keep going under the management of a turkish business partner his investment was made in u.s. dollars and with the current exchange rate it wouldn't make sense to sell the company for now he will continue to monitor the developing situation in turkey from outside. apple has been handed a fine of six point seven million u.s. dollars fine australian court for making false claims about consumer rights and misleading its uses several hundred customers had sued the us based tech giant to apple refused to repair their i phones to fix the defect apple claimed the customers had previously had to their phone serviced by third party repair service
isn't bad that validated the warranty however the court ruled the apple com force customers to use its rip passive business. and that you don't want stuff that a former employee you attempted to sabotage the company in an e-mail to tesla employees must accept the on name of the employee you had conducted quote extensive and damaging something interesting for reprogramming manufacturing facilities and you can trade secrets it's just the latest in a line of problems dogging the electoral been a teapot in the yeah. if you. let your business update on g.w. thanks for keeping me company.