tv Business - News Deutsche Welle September 13, 2018 3:15pm-3:31pm CEST
the cultural magazine of. our twenty one on g.w. who may have been fighting for the place take you seriously in the world of work here's what's come out women strong on tumblr you. know superheroes movement smart talks smart state the legend frank recently dangerous time for w. me for my. to move. on to. the european central bank scales back its crisis measured ten years since the global downturn but the outlook is ted's we must be easy being or if they seem to be good whatever it takes. a tougher central bank trying to save the lira by sharply raising interest rates and. bacteria sweeps through italian all
of the groves threatening the industry but a solution may be at hand. and been fizzle and let's do business the outlook isn't rosy the e.c.b. trimming its growth forecast today at the same time as winding back its economic stimulus still it's been a decade since the global financial crisis hit and today's announcements were no surprise the e.c.b. leaving its key interest rate untouched at an all time low of not point nor percent the council said course for a stricter monetary policy from october onwards the monthly purchases of government bonds are going to be cut in half to fifteen billion euros purchases are expected to keep troubled european economies afloat. and joins us now from frankfurt our financial correspondent conrad would you say the e.c.b. is on track is it doing the right thing despite the outlook and those trade tensions. i would say the european central bank is on track it's exactly doing
what it announced at the last meeting it's cutting back the asset purchases and it announced that it will end those asset purchases by the end of the year the net purchase is this it that is the e.c.b. has said a few things to calm the nerves on the markets to it intends to reinvest as it says the principal payments from maturing bonds for an extended period of time after the end of the net purchases and in any case the e.c.v. says as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation so this really is good news for people on the markets it means that the shift from quantitative easing to quantitative tapering is very soft very cautious and very market friendly ok so it's
taking measures somewhat soft measures but tell me did the e.c.b. really do whatever it took as mario draghi promised back then. well i'm sure that you know there are monetary policy whizzes or you know experts that could come up with more innovative idea of ideas of what the european central bank could have done but if we take into consideration that the balance sheet of central bank is now at more than four and a half trillion euros that's forty percent of g.d.p. forty percent of the value created in the countries of the eurozone this is definitely a very bold move and it was enough at least i can say to convince speculators that it makes no sense to speculate on the break up of our currency union our economic with is in frankfurt.
businesses reducing or delaying investments in the u.s. it central bank the federal reserve says the trend is due to concerns about washington in beijing's trade war so far the effects of the tariffs have been modest but they've bush had some production costs according to the fed several american companies want the more towers with their businesses off the president don't trump said washington was ready to impose tariffs on all chinese imports and when say the u.s. government proposed another round of trade talks with beijing. the turkish lira has surged after a decision by the central bank to raise the interest rate by more than six percent so his financial sardi's met today in a last ditch effort to halt the liras dramatic descent or at least slow it a concious value has plunged more than forty percent against the dollar this year analysts that argued for a drastic interest rate hike to keep prices from further skyrocketing but turkish president recha tie a better one had opposed such
a move claiming high interest rates would worsen the country's economic problems turkish regulators have also decided to ban all real estate business in foreign currencies all transactions will now be handled in lira it's also another attempt of course to support the county which continue to tumble even after many to explore there is with dollars like the president had told them to let's rope in craig our analyst in london along with our wisdom bill correspondent dorian jones craig starting with you how much of a boost is that right rise given the lira. it's give me quite a boost so far i think for two reasons firstly is that the actual rate hike itself surpassed expectations by around two percent which is always going to be the reason is that there was still i think a little bit of warre that the central bank would shoot what markets were expecting because of the pressure being put on the quit on its president so the fact that
it's got a ball sends a strong signal to markets that it is still independent and it will still act in that manner in order to support the currency and support the markets i bet investors are relieved to add one didn't want this rate rise but it's even bigger and actually the biggest in his fifty year rule. the only question now is whether it's going to be an off so actually calm investors or whether more is going to be needed further down the road we've seen in argentina for example we saw significant rate hikes previously and even then we need that another fifteen percent rate hike quite recently in order to try and calm invest the nerves and they may not be enough so there may still be more needed but the central buying showing its independence is in the stream an important first step during a question for you doesn't this all make ed a one look bad. well i think there will be relief across the country the currency didn't suffer further falls and that was the expectation that if the central bank didn't act
decisively the currency would again be under pressure and those holes have ties to country parts of the same time it does come in the face of a very strong warning by the president against increasing interest rates to the central bank how his supporters will see that going forward will be unclear but i think the priority across the deep political divide these this country gets a grip of dealing with this currency crisis and ultimately the looming economic recession that many are expecting in the coming months ahead so relief all round but how are people coping with the crisis. well i think the first state of affairs in this country that people are in massive shock that the currency has fallen so significantly and they are dealing with the reality of that a massive surge in inflation inflation is nearly twenty percent is expected to go up as high as nearly thirty percent people are already coming to terms with those things raising prices or buying schoolbooks food prices are soaring that is
a big concern and that is i mean the talk of the street going forward there is a realisation that there will be a likelihood of a recession and that means job losses the country is awash on social media of talk of big companies in trouble and the fear is that there will be a major rise in unemployment so there is realisation of the country he's facing very very tough times ahead even in spite of this action by the central bank and the fear is that if those top time to go to get worse the president could possibly intervene put more pressure on the central bank to reverse its stance and that would be a big concern among investors as well as the concern that investors make far more steps be taken on the fiscal side as well craig you mentioned more measures need to be taken what needs to be done to ward off recession. alternately we need to see stabilization in the currency markets. for turkey to have any chance of either avoiding a recession or more likely not ensuring that it's not quite
a horrible recession and i think it all that we need to get investors on side and therefore the set up first up by the central bank is important fiscal sensibility also needs to ensure that that's the part that people are also extremely concerned about because the seems to be this side that you can spend spend spend your way out of problems and historically that doesn't appease investors and you do tend to see couple flights there the two most important things i think that we need to say one of which is currently being ticked right thanks for the import craig olam in london and dorian joins it it's down before us. a deadly bacteria is devastating italy's olive industry it's striking down trees extremely quickly and leaving fields unusable the area affected is the equivalent of a thousand football pitches but there's hope for farmers in the form of a resistant on the tree. when it infects the tree it causes with the rain which ultimately results in the trees death it was first discovered
three years ago and has decimated plantations ever since leaving farmers like we're not gayety despite the end to pure want to be much nothing is as it used to be. production has gone down by eighty percent this year. and the financial effects have been considerable. quantity i went from fifty employees to zero and last week i had to let my secretary go after sixteen years. the diseases carried by sick adele's would sucking insects which spread the infection to healthy trees. the bacteria spreads forming a sort of barrier it prevents water from passing through the leaves believes dry up in the branches died due to lack of water together with his team at the university of dusty experimented on olive groves to find
a plant resistant to the bacteria after five years of research success they found two potential candidates to heal the infected trees farmers combine the sick plants trunks with the newly discovered branches this way they hope they'll be able to revive italy's shaken olive oil industry. just briefly from olives to apples apple has unveiled its latest smartphone lineup with the customary fanfare. the i phone ten s. and its biggest sibling the ten as macs a fast as i phones liquid proof and have the most secure facial cation technology in this market accounting on and off. i think business with a. touch
their moments nearest the t.w. . boy oh boy. oh boy. in a mountain sixteen i'm crying a little rumble was. asked young people rebelled against their families generation . this was an obsolete industrialist stupidity inclusions you need to move to. a whole new society. wide maelstrom. the consortium claims with the vietnam war it broke my generation watch the vietnam war every day. our documentary takes a little while talking to those who were here for them for the first time i had
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