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tv   Business  Deutsche Welle  July 31, 2019 7:15pm-7:31pm CEST

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in 3 months in custody before his release the public prosecutor's office in munich says stadler and 3 other defendants are being charged. already says the case is separate from the wider investigation into the car maker's role in the scandal which was settled last october with an 800000000 euro fine. here watching to give you news business news with monica jones is up next i'll sing at the top of the. what secrets why behind the smile. find out in a burst of experience and explore a fascinating broad cultural heritage sites. d.w. world heritage 36050 now. be our fighters want to start families to become farmers or engineers every one of them has a plan that instantly assume. summoning is just on the children who have always
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been this all a n.i.c.u. and those that will follow are part of a new kind of success. they could be the future. granting opportunities for global news that matters d. w. made for mines. big day for the u.s. federal reserve investors are on tenterhooks ask the central bank could calm interest rates for the 1st time in lebanon gives to get some analysis from london. also coming up one of the world's biggest contributors to ocean plastic senegal plus a crackdown on touches and by imposing fines on other restricting plastic use. a money could jones and this is business thanks for joining now all eyes are on the
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u.s. federal reserve today the central bank is expected to lower interest rates by a quarter point and it would be the 1st rate cut since 2008 that has been speculation about the probability of a rate cut for weeks by federal reserve chairman powells testimony to make this in july in which he hinted that a cuts could speak on the way he was present on much time pass been critical of the fed for racing rates and he is what he told reporters at the white house only yesterday that higher figure and far fewer early march early put out a lot of credit for we had done wrong but that's going to stop. the fed really a lot here i would like to see a large cut about like everyday we want to start off because.
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they don't want to. go higher rate really i think was a big guy. donald trump there yesterday fighting against the noise of the helicopter on the lawn of the white house but i hope that my guest michael hughes and chief market analyst at c.m.c. markets in london could listen to all of that good to have you with us so clearly trump once the rates cannot give the u.s. economy is growing and unemployment is no is now the time for a cut. certainly based on the data i would say no and the fed has been fairly consistent i was the course of the past few years by saying that they are a data dependent central bank so if you place any decision to cut rates on the economic data coming out of the u.s. you look at the unemployment rate you look at the monthly payrolls numbers you look at yesterday's consumer confidence numbers for july came in at the highest levels since the end of last year and given the fact that
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a year ago the fed was 3 courses of the way through come right signing cycle it does really seeing all the while the global economy is slowing the u.s. economy is a little bit weaker than it was growing slightly less robustly than it was in the 1st quarter that we talking about a $25.00 basis point right but ultimately this is where we all do this is what we expect and of course we know that donald trump has been keeping telling the fed what to do do you think that the fed is caving in now. i certainly think political pressure has been brought to bear on federal reserve policymakers and that makes me think that at the very least we can expect a 25 basis point rate cut but anything more than that and i think the fed runs the risk of losing its credibility as things stand i think there is an element of that already with president trunk's threats to fire jerome powell unless peter live is
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a significant right cup but i think at the very least we'll get 25 basis points and i think more importantly will be what sort of guidance jerome powell gives in the wake of the right cup because i think whatever the fed delivers it won't be enough for the u.s. president from that to michael hughes and their team market analyst at c.b.s. mark in aussie p.c. market in london thank you so much. thank you. low to know interest rates that's what we've had in the euro zone for years now the aim of course is to spur lending and spending in addition the european central bank launched a generous bond purchasing program to support ailing eurozone members all part and parcel of mario draghi has pledged to do whatever it takes to save the euro but critics say it's time to change course. skateboarders in the saddle of the european central bank don't care about the monetary policy of a central bankers the guardians of the euro behind the skatepark have been toiling
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for years to keep the economy on the financial markets going mario draghi wants a stable euro and healthy public finances for the eurozone and he reminds politicians about this at every press conference. women titian of structural reforms in your account trees need to be substantially stepped up to most of europe of activity and growth potential reduce structural unemployment and increase resilience after the global financial crisis it was dragging and not the european governments who acted as the savior by buying up around 2.6 trillion euros in government debt now it's really a euro zone's number one problem child is getting itself more and more into debt druggy has to keep interest rates low so that member states do not become insolvent . after iran's i talk molly on the one hand mar drag establish the monetary union in 2012 however he also steered the european central bank very close to the
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political line and the effect of this was to finance government spending and politicians finance ministers especially from southern european countries became used to this kind of support. and right now interest rates are at 0 there are even penalties for saving money short term this bothers savers pension funds now have to engage in risky speculation to get returns on their investments property prices are going through the roof shares a booming christine lagarde 1st task is to find a way of paying for all this druggies designated successor must find a way to escape the politics of cheap money. the antigovernment protests in hong kong are hurting the economy while economic growth for the last quarter is expected to strengthen to 1.6 percent economists do not expect the recovery to last analysts say the demonstrations against the city government and its political
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masters in china scaring off tourists paralyzing trade and hitting hong kong's reputation as a regional financial hub and all that while the u.s. china trade will cast a long shadow on hong kong which severs trade and finance or serves as a trade and finance gauge wire to the chinese mainland. so let's talk a little bit about what's at stake and i've got in the studio with me oh very own china expert clifford kuhn and so cliff it could this political crisis in hong kong turn into an economic one. i think it could at the moment in hong kong what we have is a typhoon 8 so the warning and things tend to have been tested batten down the hatches a bit get into the offices. of the office or close get into their homes and it's a time for reflection i think it could have an impact on. tourism on those sort of areas in terms of the broader economy though i think a lot of people are still much more worried about the u.s. china trade talks for example they're waiting to see how this spills over it's not
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quite like in the umbrella protests where the whole city was shut down it's been quite localized so far obviously it's having an impact it's hitting sentiment but i think so far what it will have an impact i think it's probably muted so far all right but i mean we certainly and we stressed it also just now that it is a big financial hub how likely is it that because of everything we've seen there the financial players could pull out of hong kong and we have to well i think this is the 3rd biggest financial hub in the world after new york and london and i think it's very mature at this stage and i think a lot of people know it's going to make any rash decisions i think there could be some capital of like to places like singapore. it has similar conditions in some ways to hong kong with free flow of information independent judiciary and we've just seen the launch of the the stock market there yes the stock market in shanghai denigrate that did in china then beef up the stock market so there's
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a possibility the chinese money will stay in china so. between those 2 options there is a possibility for capital flight but at the same time people trust hong kong and they they like the conditions with hong kong it's a gateway into china for the region so i think longer term its prospects are good once it's resolved these political issues radcliffe it can end there from business thank you so much for your insights. and now to some of the other global business stories making news. its profits more than doubled during the 1st half of the year they reach $1200000000.00 euros thanks largely to increase production of its a $320.00 aircraft european company is on course to be the world's biggest plane maker this year due to the prolonged grounding of boeing's 737 max jets. the former c.e.o. of folks like a subsidiary i would even push has been criminally charged over the diesel
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emissions scandal german prosecutors say he became aware of the cheating on emissions test in september 2015 at the latest that allowed to the effect it cost to continue to be sold. some zone has posted a drop in net profit of more than 50 percent for the 2nd quarter of the year to $4400000000.00 a south korean tech giant puts the slump down to global factors such as the us china trade war. now despite having a population of just 15000000 senegal is one of the biggest contributors to ocean plastic waste although a ban on plastic bags wasn't acted in the country it has not been enforced well now the government is planning a crackdown to curb the plastic problem. if you buy vegetables at the market in the center gillies capital dhaka there's a very good chance they'll be given to you in a plastic bag that's hardly
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a local phenomenon according to the united nations environment program 5 trillion plastic bags they used each year but senegal is paying a higher price the most for its use of them because donations atlantica scapes a market by mounds of cheap plastic the problem here is hitting the country's key livelihoods farming and fishing so authorities have decided to finally act and follow the lead of other african nations in dealing with the plastic issue. the problem of plastic waste is highly visible in africa and the continent has led the way in enforcing back bans tanzania recently became the 34th african country to introduce one in 2017 kenya imposed some of the toughest restrictions in the world with those convicted of producing selling or even using plastic bags facing up to 4 years in prison senegal did put
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a ban in place in 2015 but it's never been enforced. the government says it will finally start to enforce the ban on plastic bags in senegal and may even use the country's security forces if necessary. environmental officers will hold public gatherings to inform the senegalese about the negative effects of plastics for health agriculture and marine life. that is your business update here and w for more please do check us out on the line or follow us on twitter on facebook for me on the team here in berlin thanks for keeping us company.
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takes. us. with wonderful to make the game so special. for all truth. the because more than football on line. i was issued when i arrived here i slept with 6 people in a room. it was hard i was for. i even got white hair and.
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the german language and. this gets me and they go but you need to in truckloads of say you want to know their story. fighting. for margaret. clocks. this is dean every news africa coming up in the next 15 minutes on the ring of the resilience house u.s. house speaker nancy pelosi addressed the guardian parliament today her visit marks 400 years since the 1st shipment from god that to america. and the men who bear the scars 25 years off to run this genocide victim and perpetrator is going through the grieving process to get.

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