tv Business - News Deutsche Welle August 24, 2018 1:15pm-1:30pm CEST
being called to middle australia asking for people to have their good to one of the dignity of work and to build a stronger australia older music lee how he intends to i'm not quite sure right raja may not need thank you they might have a yes up to date. you're watching news do stay with us monica jones we'll be with you shortly if you have your business news for you thank you very much for a company. to. take it personally you already with a little bit wonderful people one story that makes the game so special. for all true friends. my. take on more than football online. is cremations. this brand.
karl lagerfeld icon of the. book what do we really know about the man behind the guard. what motivates him how does he think feel private moments in the life of a great russian designer. starts september. w. . caught a german company also on the show chinese money helps of course you go to surprise the debt crisis but with investment comes influence too much for comfort says the e.u. . welcome to do business and want to go jones good to have you with us central bankers from around the world coming together in jackson hole wyoming for their annual economic retreat organized by the federal reserve which runs until saturday at a d.c. investors and fed watches are especially awaiting the keynote address from the
central bank's chairman jerome powell it'll be his first chance to comment publicly on recent criticism from the white house president on a trump has said he was unhappy with the fed's plan over gradual interest rate hikes that was a break with a long standing convention the presidents do not comment on the fed's decisions to preserve the banks independence palace remarks in jackson hole will also be examined for any clues as to whether he thinks washington's trade policies will hurt the u.s. economy and how badly. and for more on this i would like to check now with callum pickering see the economist at their bank bank in london good to have you with us so we just heard central bankers are gathering there in jackson hole and i'm sure they have a lot to talk about what's the biggest issue. biggest issue is essentially trade wars and fed pour say now when it comes to fed policy the message from jackson hole from any of the fed by his will simply be that the fed is
not trying to spoil the u.s. or global swing through its interest rate hikes it simply trying too much the renewed strength when it comes to trade well that's an easy one to economists hate trade wars it raises prices for no reason so it will be probably a warning that if the u.s. continues to push for trade wars that will worsen economic conditions both at home in the u.s. and abroad well let's stick to u.s. trade and foreign policy because for example fresh sanctions again iran prompted several global players to pull out of the country including british airways how much pressure is there from the white house. what it really links to the u.s. economy the u.s. is still the biggest and most important economy in the world to assume a certain extent we all have to dance to the u.s. is chewed the trade issue is much bigger than the sanctions issue we worry over here in europe a lot about trade wars of course we're in some thirty percent of our g.d.p.
from exports the u.s. it's some fifteen good news is the u.s. and e.u. seem to have seen signed some kind of truce since the younker trump meeting some two weeks ago now we have to focus on the u.s. china issue latest news there is there's no real progress so we could see some more escalation of the trade war between the u.s. and china that will be tough for markets to deal with. bearing that bank in london well saudi arabia does not take kindly to being lectured on human rights by other nations canada recently plunged into a diplomatic spat with riyadh over the release of saudi activists from detention in germany stands to lose out on new critics business contracts in the kingdom following criticism of reacts human rights record saudi crown prince mohammed bin salomon wants to modernize his country but he doesn't appear to take too well to criticism relations with germany of cooled off considerably since former german
foreign minister zygmunt gabriele publicly expressed his thoughts on saudi foreign policy in november twenty seventh teen referring to saudi arabia's foreign policy gabrielle said europe has to give a united signal that we are no longer prepared to accept the adventurism which has spread there in recent months without saying anything. many german companies are now afraid that they'll lose business in saudi arabia and the gulf kingdom itself there's a sense of optimism the saudi government is implementing social reforms and there are large scale construction projects underway but nervousness is growing among german companies with concerns that saudi business tenders are not considering german firms up to now the oil rich desert monarchy has been an important trading partner in twenty seventeen germany exported goods worth more than six point five billion euros to saudi arabia. after one this when i'm joined by chief economist of
the association of german chambers of industry comus good to have you with us why do you think german companies a largely overlooked in saudi arabia these days. it is true that our sales to saudi arabia are on the retreat or export volume has dropped by three billion of euro throughout the last two years the major explanation is due to the low level of oil prices and countries saudi arabia is dependent on oil prices this is the major explanation the other explanation is that when it comes to public procurement when it comes to public tenders regarding products and services in the health sector we are losing ground our explanation is that there were some unfortunate choices of words of some form of political leaders of germany
so addressing schuman rights issues in a country that we have a business interest in is something that you wouldn't advise to do. saudi arabia. has a. big project it is called the vision twenty thirty beside. the column of economic development it also incorporates societal changes breaking up the society participation of women in the labor force hopefully more respecting human rights in the whole society and we should support this process and thereby mainly by political discussions always addressing in the right manner in an
adequate way also the issue of human rights but what can't help but get the feeling that german business is forced to do at other leaders bidding for example iran donald trump of course demands that everyone follow washington's lead an end to business with iran and indeed a string of european companies including germany storage bandar duty condyle and so forth are pulling out what. don't we have basically our own interests to follow. absolutely and the usa are obviously supporting saudi arabia and we also see that u.s. competitors in the country are now. in the on the upper hand when it comes to public tenders compared to european companies and when it comes to the iran we take a very serious what our political leaders have said that we have to become a bit independent more from the u.s.
when it comes to our own sanctions against countries not only respecting the secondary sanctions of other countries like the u.s. but it is clear the u.s. is a big market and we have much to lose and we will see we have to be more independent when it comes to financial ways to finance business also with iran right fucking tired their chief economist of the association of german chambers of industry and commerce thank you so much you're welcome. chinese investors have been very active in portugal in recent years but they didn't just acquire a stake in the country's economy they also gained political influence the european union is watching this development with mixed feelings and a strong to keep the beijing's reach within. really dios or rodeo likes this asian touch in lisbon he looks after chinese investors in portugal. but if. the chinese have helped a lot because they've brought important revenue streams into the country which of
solve the national debt problem portugal was able to pay its debts straight off. concerts up to years of stagnation the financial crisis had meant unemployment poverty and austerity portugal's ten million citizens were kept solvent by the european stability mechanism but the country was forced to privatized state owned companies. then china came along on a shopping spree many chinese state owned companies bought into portuguese insurance companies banks real estate and indirectly even into media as well. also into portugal's profitable state owned energy company and take us to portugal e.d.p. . china three gold has bought up twenty percent of it seven years ago now it wants to buy it completely it's offering nine billion euros for. the chinese government is behind what are ostensibly business deals does that make portugal vulnerable to political blackmail you know how. in
a certain way we're already dependent but we've also got brazilians angolans other european countries here and not just china china found a welcoming climate in portugal. portugal was in my car for a long time so there was always a traditional connection and the biggest investments came during the crisis they were really important for us. you've seen the potential problem and is working on transparency regulations for certain foreign investments applied to the e.d.p. they would function like this portugal first screams to chinese companies parallel to that list been informs the e.u. commission in brussels along with the other member states they then screen the chinese bid themselves and give their feedback portugal let us the final decision on whether the deal goes ahead or not. bidding for e.d.p.
is still underway and it's still not clear how tight the new iraqi elections will be some countries want a minimum of outside interference including portugal hungary and greece. china now seems to have its own presence at the negotiating table along with the government heads of the european union. thanks for watching.
should germany prop up the man who served his country into an october say and. find out on quadriga coming up short of. quadriga in sixty minutes on. lehman brothers ten years on a story of ambition greed and megalomania. we're so clever the elite control the rich. of investment bankers the carousel with never stop. everybody draw the wanted to ignore the reality of the whole thing might blow off in many cases of a system that spun out of control. and.