tv Business Deutsche Welle July 31, 2019 8:15pm-8:30pm CEST
it was that due to the haircut. you're watching the news that is still to come the federal reserve bank in washington announces the 1st lending rate cut in years what does it mean for the global economy you're watching the news that story coming up next with ben physical and i'll see you again tomorrow same time same place for now thank you for spending this part of your day with me. it's all happening cuts of it. nor link to news from africa and the world. your link to exceptional stories and discussions ok no one will come to you to do such a clean program tonight from funny jimmy from a user of easy town wild web site d deputed comes to much africa join us on facebook at t w africa.
central bankers don't do surprises the u.s. fed cuts interest rates by a quarter percent in line with expectations but not exactly what president trump watches. no breakthrough but progress no trade deal the 1st face to face talks since a truce was declared last month between the u.s. and china it fizzles out. and one of the world's biggest contributors to ocean plastic cynical plans to crack down on polluters by imposing fines of. the
restrictions on the use of plastic. i've been fizzling let's do business a modest cut to interest rates the fed delivers and leaves the door open to more cuts the us federal reserve has lowered rates by a quarter percent it cites concerns about the global economy and muted u.s. inflation it's been a long time since the late last rate cut almost 11 years and was december 2008 on the tail end of federal reserve efforts to prime financial markets during the recession it's only going up since then in line with the recovery and eventually a booming american economy well compare that to the european central bank where the deposit rate for other banks says long been below 0 and where policymakers is still cutting that's put even more pressure on the fed as rate cuts the value of the euro against the dollar affecting their trade balance and then there is the pressure from u.s. president donald trump on tuesday he repeated his call for a large interest rate cut saying the fed had put him at
a disadvantage by not acting sooner. well across the board it was a fairly mixed day on stock exchanges around the world as ministers played the waiting game and see what a quick he's doing now to say the east is on wall street for us we've also got joy doreen biro who's tracking the emerging market reaction from nairobi there's a starting with you what is the market reaction fill us in. good reactionary has been a relatively muted so far band investors have been discounting our right for quite a while now so there's a decision that's not commissar surprise nor does the ending of the of the reduction of the present volunteer day 2 months earlier that's the question that bleeder is now in may the fed chairman your own problem will give us a hint that doing these present conference is a good these is just a safeguard and appease them to break out similar to the ones that we saw in 1985
or 9098 or even the start of a deep and sustaining more i commodity of cycle trying to a stimulate an economy that could enter a recession. that would be a worry for the world joy what's the reaction across africa well the reaction is very positive it is welcome news for most of the african economies at this point and while most of our economies have been keeping the election in check give an example kenya is a policeman has been in check at least for the past several months but for a country like south africa this is very welcome news because the local currency has been doing pretty badly and the economy as well has been doing pretty badly so having. cut by 25 percent basis points is quite welcome news because now the whole economy is in the long term going to start to recover but you just say it wasn't exactly what trump wanted was it. no. pushing
for several more cuts and way more commodity of monetary policy event so the pressure will keep coming from the president's to redirect around for sure but as he did say right now even if markets still see one or 2 rate cuts before the year and the u.s. economy is still pretty solid when compared to all there is and not in need of such a big easy financial conditions we could also lead to the creation of the bubbles what do you say to the. trade uncertainty and weakness in the global economy are significant factors that the fed is taking into account when making monetary policy decisions that's for sure to ever let the labor day think the job say a new york enjoy in nairobi. well the 1st face to face talks between chinese and u.s. negotiators since the trade will cease fire was agreed last month have come and gone trade officials from both sides described the dispensers as constructive but
the meeting in shanghai only lasted a few hours before wrapping up leaving the little hope of any progress the 2 sides agreed to reconvene in washington in september and. business consultant andrew day has been following the talks for us and the both sides are talking again we've got that and they're going to be talking again the month after next but really this whole dispute is deadlocked it is it is deadlocked you know i think it with the benefit of hindsight we can see this was never going to be easy you know we almost you know the the 2 parties were sort of circular circling around the deal in may there was 150 page draft you know a lot of american demands were met in this draft in the chinese walked away and now we're sort of back to square one and it just turns out when you have the 2 largest economies in the world one's a capitalist and one is a state run economy you're not going to have a large dramatic transformative deal cut in the span of 6 months does that mean we are facing
a protected trade wars many analysts have been saying just today and yesterday i think so i think. you know the americans have said look you know china entered into the world trade organization in 2000 and you know with that membership it is supposed to play by a certain set of rules it's proven that it hasn't in the whole world sort of you know europe in the united states on the same page here we all know that china doesn't play by the same rules as the rest of the w.e.o. and now you know the united states has decided to play hardball in a new type of way you know before it was you know the obama strategy was to sort of encircled china through. with europe through free trade agreement with asia and sort of squeeze china and now trump is using a different strategy which is basically to you know you know just attack them directly. and and that could mean that these tariffs that are in place will be that state how will that affect the global economy. you know it's going to it's going to be interesting i think until now
a lot of companies have been asking that same question is is this temporary or is this a new normal really and a lot of them have been waiting to see should we restructure our supply chain should we move production out of china should we resource certain jobs the united states european companies like puma for example which announced its earnings today said that you know it expects the it's starting to stockpile goods in anticipation for a protracted trade war so i think companies are now starting to realize this could really be a new normal what about american companies what's the talk among supporters of these tariffs i mean is that support also politically also family as well there is interesting interestingly senate minority leader charles schumer who's a democrat and hardly a political ally of president trump is really in lockstep with with the trump administration on this you know tariffs traditionally have been tools that the democrats have been very comfortable with and frankly the republican party has
always been the party of free trade for the last generation and trump has really turned that on its ear so politically trump has quite a bit of support in terms of using tariffs as a means of leverage now interesting interesting when you bring up farmers though because farmers are really the sort of the victims in this trade are the ones who are hurting they're the ones who are hurting and ironically they're also among trump's biggest political allies so what we could see happen is some sort of maybe interim deal or a mini deal to just get china buying agricultural products again in exchange for perhaps some loosening of these you know hallway export ban so there could be some sort of interim steps along the way but i really don't see a broad loosening of tariffs any time soon andrew to thank you very much for coming in thank you. the amount look for south africa's state power utility eskom has posted a one and a half $1000000000.00 annual loss blames it on an outdated business model and warns
of similar losses this year. these are bleak days for eskom the south african electricity utility supplies more than 90 percent of the power in africa's most advanced economy but it's facing a fight for its life according to its outgoing c.e.o. we are now freezing to death by a truck. and you are facing this death this death spiral because offsetof accuse of the number of our clients that are moving off to create. this comes death spiral can be summed up as follows long dependent on government bailouts it has massive debts the cost of servicing those debts is rising yet it is losing customers and clients the company lost $20000000000.00 rand last year the equivalent of $1500000000.00 and expects to lose the same in the current financial year due to capacity issues eskom has had to implement regular
power cuts leading to nationwide blackouts dees of poor further strain on an already fragile economy. to our troops. home. is. this. the government has proposed giving eskom a $4000000000.00 cash injection over the next 2 years to keep it going but analysts say it's come with struggles to keep the lights on in the long term. senegal was one of the biggest contributors to ocean plastic waves that despite a population of just $15000000.00 there is a ban on plastic bags only thing it's not forced now the government's planning a proper crackdown. 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 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 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 a marine life. finding new hope for the right also s. a berth in the san diego zoo is a milestone in efforts to save a rhino subspaces a southern white rhino cough was born without complications after its mother was artificially inseminated last year there are about 18000 wild riders in the wild but they have been decimated by poachers in south africa. was doing business with you.
inter the conflicts of the flies in populist uprising in venezuela. called protests rocks a flock of. the world is in crisis mode just this week we distracted the key attributes of the season the point is to move on wants to change the implies old the o.j. original discerning and you. look so from 60 to 0 for my going to puzzle yourself up by
a long long it's not easy to go to another country you know nothing about why for i don't do this because we can't stay home and it's winter i know. that. costly global news that matters d.w. made for mines. this is state of the news africa coming up in the next 15 minutes on the rink the resilience house u.s. house speaker nancy pelosi addressed the gunny in parliament today visit knox 400 years since the 1st slave shipment from ghana to america. and the men who bear this cost 25 years off to run it as genocide makes a.