tv Business Deutsche Welle May 10, 2019 4:45pm-5:01pm CEST
german steel makers to support calls off the wedding to india's top us steel that is almost twenty percent when it says it won't be split and will kill off six thousand jobs. is his business a. bell and welcome the trumpet ministration has today raised duties on two hundred billion dollars worth of chinese imports from ten to twenty five percent says it will retaliate meanwhile trade delegations of both countries are in talks in washington that are being described as tense. the chance of breakdown of the talks has significantly increased now will bring in our correspondent in washington for the latest and have a look at how markets are taking its but first this report. it would prove to be an uphill climb for the chinese negotiators as talks resumed in washington just hours before new u.s. tariffs went into effect china's vice premier rejected the u.s. is rationale for the new duties its accusations that beijing had reneged on several
points of agreement. or. i've come here in good faith i want a reasonable and a frank exchange of opinion with the u.s. side china believes in further tariffs is not a good way to solve our problems so it's not good for china nor is it good for the us nor does it help the world. few expected a breakthrough in thursday's talks and donald trump was keen to point out the positive side to state import tariffs. i happen to think that tariffs for a country. a very powerful you know with a piggy bank that everybody steals from including china we've been paying china five hundred billion dollars a year for many many years china rebuilt their country because of us this is the single hearing up for what could be a bruising trade conflict china showed that it has resources at its disposal officials say its spelt and road initiative can help offset the results of
a trade war with the u.s. and they're pointing to strong growth in the service sector. china's high end service exports are growing and competitiveness is gradually improving. with thursday's talks on able to stop the u.s. tariffs china isn't revealing what steps it will take next. so let's see how things standing in the markets and also in the negotiations and i'm joined by michael jackson from c.m.c. markets in london and our correspondent on the results who is standing by in washington and we start with you all about what are you hearing how the negotiations going. pretty silent right now but we know that the u.s. president was briefed last night by his negotiators and that both sides eventually agreed on carrying on with the negotiations a good sign if you will because they apparently believe that is that an agreement can still be reached now who's been very loudly and outspoken was the president
himself on twitter this morning and he continues li stresses that the tariffs that were raised last night those will be only be paid for by the chinese side but economists in turn have been challenging that and they say that in the end of the day and eventually american businesses and the consumers will pay these terrorists in the united states as certain goods will become more expensive that are imported from china to the u.s. and those are predominantly consumer electronics among other products goods that are not affected though are every every goods that are currently on route to the united states so say on a container ship traveling to the u.s. those those goods are not affected yet and that means there's still some time left to find an agreement michael markets across the board investors seem not overly concerned about the first type of supplies that. you know what i think you see your correspondents lost pulling i think there is still
a very small window where these terrorists can be avoided so for example if i can tell you the ship leaves the chinese pull it's. it could well arrive in two weeks time which means by the time a rise in the us those terrorists might well have been avoided i think at the moment inverses are looking on the bright side but you say the markets is slightly out there still down quite heavily on the week so we're not out of the woods yet. what are the main sticking points i'm hearing that the chinese side is reluctant to publicize the old details of a possible deal was that well yeah that's right reportedly in the run of the negotiations there have been clashes within the communist party in china there between hardliners and reformers and that led to a very late decision on the chinese president xi jinping to walk back certain parts of the agreement that were made in the beginning when quick progress was made and the key sticking points here are the question of intellectual property how that is
tackle and also some certain restraints for american businesses in the united states so there were questions that eventually of how much of the final agreement would be made public and essentially the chinese are trying to publicly admit that intellectual property laws are flawed because it would also mean to admit that they have been wrong for quite some time. michael tension have been weighing on markets for a while now what will happen if the talks break down this week and. this brings it brings a lot of the prospects of a twenty five percent tariffs on another three hundred twenty five billion dollars the chinese goods that's going to be negative for the stock markets particularly on companies like apple and. intel chip makers who do an awful lot of business in china is going to drive up costs and erode these companies margins and essentially i think why own stock markets pretty much across the board the u.s.
stock markets in particular whose whose whose roys i think has been running ahead of european markets in general. michael hewson in london and all of us are let in washington thank you both very much thank you the planned merger of german steel giants tizen culp and indian competitor tata has fallen through to cope with drawn from the deal because it expects the european commission to block its block it over competition concerns as a results just said it will be cutting six thousand jobs worldwide plan was to merge to simple steel the unit was taught us to create europe's second largest in the producer after oslo the agreement was a fifty fifty joint venture producing annual synergies of up to six hundred million euros for both companies to cope and said they had expected to have generated pro-forma sales of fifteen billion euros.
let's go to our financial correspondent in frankfurt cannot that effect deal falls through appears to have fallen through what does that mean for doesn't do the have to look elsewhere for someone to marry. you know if it were so easy it would be great the problem is that there is no one really out there to be married the steel business is a business with extremely high over capacities steel prices have slumped significantly and you know if you are a steel make europe this means that unions are very strong and regulation is very high the consequence and the alternative for two thousand krupa now is that it would have to shrink this business and this is what it has announced also job cuts up to six thousand people six thousand jobs would have to go and investors perversely usually love. is that the reason the screamed upwards by nearly twenty
percent at times. this is one reason but it's not the only reason care how to some cope we also do something that's met that many of its investors have been demanding for a long time it will separate these sell lucrative parts of the business namely the elevator unit which will be i.p.o. it will be brought to the stock market as a separate company for a very very long time the executives at this group had been opposed to this idea but now the course of events has shown that it has become an evitable owner who's now a financial proponent in frankfurt thank you very much for this update. to the us now listing on the new york stock exchange today is expected to have raised tens of billions of dollars by the close of trading investors are asking will the right hailing from ever make money the company has posted only losses in the ten years since it was founded and it's no stranger to controversy either. it seems
controller c. has constantly tell gaited since the company was founded ten years ago the disruptive startup has put taxi drivers around the world in terror of losing their livelihoods leading to protests in the u.k. spain and poland where last month parliament elected a bill to legalize the ride hailing upstart and other based car hire firms and if they fit if we feel we're discriminated against we have to get licenses pay pension contributions we have to set up a company to work and we have other costs in contrast the illegal carriers have low costs they're often people convicted by the courts seventy five percent of them are without polish citizenship they work illegally and the government does nothing about it is one step here. has faced legal challenges from driver's demanding basic labor conditions it's been banned in several countries including denmark and
hungary in twenty sixteen hackers attacked it was cloud server and downloaded millions of users personal data a year later its c.e.o. travis cullen nick was forced to step down after a series of scandals over there was a fatal accident involving one of the driving cars and there have been numerous rape and sexual assault allegations against uber drivers from india to america more than one hundred in the u.s. alone the company has also been criticized as having a culture of sexual harassment. then there's the balance sheet over the twelve months to the end of march up losses of three point seven billion dollars a record for a company in the year ahead of its i.p.o. . trade between germany and iran fell steeply and the first two months of this year that's according to the japanese commerce exports from europe's largest economy to iran plummet. by more than fifty
percent year on year to two hundred thirty million euros in january and imports from iraq also plunged massive head of the says trade with the islamic republic has become extremely difficult since the us me imposed sanctions on tehran toilets. and that's it for me in the business as a team in the informal business news i'm back cross you can always visit you dot com slash business and do follow us on facebook and on twitter legion up with this quick check on global markets stay right here in news is next with the for.
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plus ninety. connect to an unbiased agenda subscribe now on you tube. this is news coming to you live from berlin president donald trump tightness the screws in his trade dispute with china imposes new tariffs on billions of dollars worth of chinese goods and says there is no rush to make a deal what impact will his will this happen on the global economy also coming up south africa's ruling party a.n.c. .