tv Business - News Deutsche Welle November 14, 2018 12:15pm-12:31pm CET
you're watching the news still to come it is germany's economic boom and trouble the country's economy is strong for the first time in years so is it a temporary setback or part of a larger trend. monica jones we'll have that story coming up right for you in business. with him her being gone do goes on because we're biased by you know if i had known that the boat would be about smoking i never would have gone on the trail of you i would not have put myself and my parents saw him out of danger to move out of the
game of the going to get a fleet of. muslims under because that one group wouldn't be able to give them i have serious problems on a personal level and i was unable to live there were the ones who were going to. want to know their story in full migrants verified employable information for margaret's. at the. no worries all new worries rather about germany's economic boom the economy shrinks for the first time in vs just a blip or a sign of snow down we'll find out. meanwhile germany is affording behind when it comes to us official intelligence potentially costing. trillions of europe's.
welcome to do business i want to get jones in berlin thanks for joining us it is the first contraction for europe's power engine in more than three years official statistics out today show the german economy shrank zero point two percent in the third quarter that's more than expected growth was stifled by global trade disputes which weighed down on exports economists also blame problems with the country's also industry following the diesel gate scandal last time because of a growth moved into negative territory in germany was in the first quarter of twenty fifteen when g.d.p. take down zero point one percent analysts say that the data is another wake up call that stable growth is by no means a given. and that was a direct quote from. economist. who joins us from brussels today good to have you with us you're in brussels i mean it's
a big day for brussels with italy defying the e.u. and sticking to its big spending budget on the one hand on the other a possible breck's a deal within reach and now germany post the first negative growth in three years what alarms you the most. being of the general growth story to be honest because drone is the powerhouse and of even though there are so wall of factors also explaining the weak performance but if the driver of the power always falters then the rest of the eurozone will also be drawn negatively i think there is a bet is bad for the outlook for the entire euro zone and european economy going to cause nineteen so i mean talking about the alarm bells how much of that dip that we're seeing right now is down to the crack down on diesel engines. that's so hard to read to requalify but i think there is a big impact there is of input from these new emission norms but what is also striking is that we saw that actually private consumption was down in the third
quarter and we all thought we're such a strong labor market we have record high employment and we have higher wages than normally private consumption should have been a growth driver and that to me is the most worrisome part of these growth data and then of course the global trade tensions we talked about this this industry in germany have a plan b. to the u.s. all of the british markets. you know i think are now there's always been a strength of the german economy to be diversified but right now with the trade tensions with bret's it with emerging markets also weakening all its a potential or important growth market for the german export sector are hit so there is no plan b. for the industry now there are a lot of economists who are well sort of cautiously objective and believe that we will see a rebalance what do you think and believe do in order to keep the economy on track i think we will see this review out of it as that's for sure this is not the start of the end but what it is a clear wake up call for the government to really start investing because investing
could be the big new thing for two thousand and nineteen and two thousand and twenty but then the government really puts it needs to put money on the table to increase spending in infrastructure investment in digital investment if they do so then we could see in the eyes rebound which goes into two thousand one thousand and twenty and then the third quarter of this year was only a belittle blip all right well we'll find out save the german finance minister. here's your words. talking to us from brussels thank you so much. well germans are traditionally skeptical when it comes to new technology the country has great research labs but implementation can take some time now the german government has set aside around three billion euros for research and development of artificial intelligence it's part of an initiative to close the digital gap between europe's economic powerhouse and the u.s.
and china a low everyone in an english artificial intelligence this is my is this the new show of the future last week china unveiled the world's first artificially intelligent news anchor the robot was modeled on a human newsreader using special intelligence software it's part of a major push by china to advance its prowess in ai technology many chinese tech companies are working on new developments and beijing will invest massively between now and twenty twenty five. the p.w. c. consultancy recently estimated that artificial intelligence will contribute some sixteen trillion dollars to the world economy by twenty thirty. the greatest gains would be seen in china where the economy would grow by more than a quarter thanks to ai while north america's growth potential is nearly fifteen percent. contribution to germany's g.d.p. would amount to about eleven percent. the parts of the economy that will experience
the biggest transformation include the automobile manufacturing and health sectors . but even farming will be affected in one project at the west coast university of applied science in northern germany a robot is learning how to distinguish carrot plants from leeds. experts at the german research institute for artificial intelligence say germany is doing well in ai research but lagging behind other countries when it comes to turning you know how into the products we're going to put it all political parties agree that we have to digitalize and that is a motive for progress the population remains skeptical that has to do with fears of job losses fears about data protection maybe also with a generally skeptical attitude towards technology those are problems in germany i think that's why no one is really prepared to funded properly india. for the experts the solution is more information showing the public the advantages of
artificial intelligence applications such as smart homes were taught in this driving or they say the prevailing skepticism must be overcome if germany is to catch up internationally. all right and for more let's cross over now to brussels to our correspondent band. so refused to submit a revised budget plan as was widely expected how's that gone down with officials. the u.s. fish was stone silly opposing this budget from rome because the simply the numbers don't add up the debt level is too high and the approach is not sustainable and they also posed by the fact that italy's in total defiance of all european road it's the first time that this is the this is a budget that is completely rejected by the e.u. commission and it's a first time that the government is not cooperating with the commission to find a solution and so brussels is now on for
a showdown with italy so what's next what does this show include. where the commission can as early as next week launch a so-called excessive deficit procedure and advise italy formally to come up with new proposals and to get down to two to straighten out the numbers the estimate for growth for example all the levels but this procedure can easily take six months or more and the plan here bus is to take it until after until after the european elections in may two thousand and nineteen and the commission has a need to support from other member states but it will be a very messy procedure given that the populace right wing government really will not cooperate so far well it'll be interesting to see how the markets react in the meantime of course brussels has a lot on its plate these days also busy with breaks it in apparently there's
a draft a deal on the table we already talked about it earlier in the show about the difficulties that to to reset mase expected to have in getting her cabinets approval for the deal let alone politicians approval but what do you hear from the e.u. side how much optimism is there. but officially that you felt the side and there's no prove of no board that the this actually exists. there officials here in brussels keep fingers crossed that the procedure has this very delicate procedure in london i would take place and then officially the people here say very very close to a solution but this has also be approved by the e.u. twenty seven member states which will gather here this afternoon and tonight to see what comes from london but this optimism that this deal can be done if london is agreeing and so in brussels all eyes on london right at the get in brussels
thank you so much. and of course we'll keep an eye on know those possible bricks breakthroughs as well as the showdown between rome and brussels for you as well as the events on the folds will keep you updated phone calls and texts within the european union could soon get cheaper after striking down roaming fees for travelers last year the e.u. now has sky high international calling costs in its sights until now e.u. law or hasn't affected the cost of calls and texts from your home country to another you country but that's set to change the plan calls for a cap of nineteen euro cents per minute regardless of whether a call is placed from a landline or a mobile charges for text messages would be restricted to six that if the legislation passes the new limits will come into force next may.
and day nineteen carry out pink diamond sold for forty four million euros at auction house christie's in the swiss city of geneva known as the pink legacy the jewels size intense color caught brought in a bid to that smashed the previous record for price carriage in the category large pink diamonds are extremely rare and high demand has led to stratospheric prices for similar stones that were recently put up for sale. there you happy very pretty now your home updated on all the latest business thanks for keeping us company.
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