tv Business Deutsche Welle August 6, 2019 3:45pm-4:01pm CEST
let's do business a global stock retreat is stalling china appears to have taken steps to stabilize the you won that after letting it fall for a 2nd day it's had investors on edge scrambling to safe havens to pump their money the u.s. treasury department accuses china of currency manipulation beijing denies that is speculation china has been allowing its currency to devalue to support exporters and to offset the latest threat of even more tariffs from u.s. president donald trump analysts say it is only drives a wedge between the 2 economic superpowers and makes a deal even less likely. talk about the latest developments in the trade berridge joins us an analyst at monika the foreign exchange specialist in london how would you describe beijing's currency moves so i think what we're seeing really from the p.t.o. c. and chinese authorities in general this week is something of a warning shot the signal that is sending is really very simple firstly the yuan is
no longer off the table in the event of a worsening in trade tensions secondly the indicating quite clearly with the leaning against further weakness today that your forty's remain strictly in control of the currency that they have the resources to prevent what they see as a disorderly or excessive depreciation in the currency what if they lose control of the currency the market starts selling off too much you want say. firstly there's no sign that that's the case and we saw that today the so-called fix against the dollar was it significantly below market expectations as a result of risk appetite really now in the event that they do lose control for whatever reason i think 2015 is a good example of what's likely to happen so we saw this was controlled by authorities but the sort of 4 percent devaluation of the yuan in one day chinese equates fell 30 percent he sold capital outflows from trying to accelerate quite rapidly and that's part of the reason that with already came to demonstrate that
they remain in control of the currency is to avoid the impression that there is a disorganized excess of child appreciation in the currency the go how does this whole affect relations and this trade war between the u.s. and china is a deal even further off could this actually spot for us to back down. absolutely a deal is further off base case prior to this was an easing of tensions in the 4th quarter of this year when the 1st quarter of next year a previous thinking was that could be looking for a trade deal to boost its electoral chances but the reality as we're seeing from both sides is escalation particularly the escalation in tariffs last week with no apparent immediate cause in terms of breakdown or negotiations and then this week we've seen quite a robust chinese response from the currency depreciation and then also the ending of u.s. agricultural imports so really all we seeing at the moment is escalation the risk is was looking like likely now is that both sides basically digging in and they're
unable to back down because of a fear of looking weak or cave in to the domestic political basis at the moment it all looks very very bad just briefly back to your comment that this is a warning shot from china it has hit asian markets really hard what's it actually mean for a merger market is the valuation. i think really that regardless of the ultimate outcome of these negotiations we are going to see global growth take another hit we've seen the fia's all of us trying to trade tensions already way on total volumes of global trade certainly way on global growth and that's going to be the effect this time as well immediately what we're likely to see is an end to the so-called hump healed where investors looking in the markets for higher fixed income yields that's already coming to some sort of a question halt so it's immediately going to put pressure on emerging market ethics and until this signs of an easing in trade tensions or an improvement in global growth we're really going to return to a dynamic when investors are looking for haven currencies so this was frank
japanese yen even the euro which has admitted least severe domestic circumstances are going to start to look pretty attractive and the u.s. dollars in terms of merging markets will likely see further sell pressure over the next 3 to 4 months as these tensions filter into global macro data go barretts in london thank you very much to the other development that spooks us markets in particular beijing says chinese companies have stopped buying agricultural products from the united states after promising to buy more during a recent trade talks and american funding godas asian coles the announcement a body blow. it's already been a difficult year for american farmers exporting to china fruit nuts and dairy have all been hit with counterterrorists from beijing some of them multiple times take port it was hit twice last year with 25 percent tariffs it's effect of tax now in china 62 percent and while that's taken
a bite out of pork producers income it's been less than one might expect in the period between may and april the value of pork exports fell only 22 percent between the years ending 20182019 that's because china has been buying up large amounts of american pork due to the outbreak of african swine fever in the country the question now can the world's largest port consumer suddenly turn off american pork exports a $1100000000.00 market one likelihood is that european producers will make up the shortfall with their u.s. counterparts then increasing their exports to europe. in other words the trade map is changing and that's why even if the u.s. china dispute is wrapped up in the near term something that looks increasingly unlikely the long term effects could be significant. the united nations says the war in gammon is the world's worst humanitarian crisis millions of people have been displaced and are in need of aid then there is chronic unemployment and rising prices and
a corresponding funny for china reports from aden way yemenis are already struggling with insecurity as a result of a dysfunctional government. fresh tuna used to be an essential food item in yemen before the war the gulf of aden is full of these days most people cannot afford it fisherman have to pay more for gasoline to go fishing prices are rising. there are many customers who are in debt for a lot of money i don't give credit to everyone but i give it to. those who can't pay and. people's emotions over rising prices can easily boil over at the market. and i swear to god i don't like it for 303 hours 2 pieces of fish to feed a family of 7. and she blames the government and that's what i have called the government is responsible for this not us and we are just ordinary people we are just waiting
for change but nobody does anything but government officials live comfortably with their fancy houses and their money and the rest of the people die i'm telling you the truth but them hang me i'm not afraid i only fear the government is the one ignoring its people that. everyone here appears to agree. with the war in yemen in its 5th year people are fed up with chronic unemployment unpaid salaries a lack of security and a functioning government the currency is collapsing. as you can see the shelves full of all but there are hardly any costumers no food imports are usually delayed or block at the me. so whatever arrives here is quite expensive for the ordinary citizen ordinary yemeni people rising food prices have taken off the poor on their daily life. unreliable power supply makes keeping food fresh a challenge for supermarkets and with much fewer customers businesses are
struggling just to keep their businesses running. but then again. only in the 1st problem is the poor how can we get our goods through the port it's nothing new. process at the port and the board who is a huge challenge for us. in. the face of yemen's president hadi can be seen on several billboards in aden the locals say he's on vacation but the president is actually in exile in the saudi arabian capital riyadh these men are selling petrol on the black market they want to benefit from the country's failed economy but protests against the worsening economy are weakening as if people had lost the will to fight. through some of the other stories making business news japanese prime minister shinzo well be accused of breaking international law and remove south korea from the white list of
countries with preferential trade status last great solace in a dispute with tokyo over water time forced labor. japanese regulators are investigating apple over claims of broke anti monopoly those and pressured supplies to hand over intellectual property the american tech titan as his have been accused of squeezing suppliers on price and forbidding them from doing business with other companies. chinese tech giant 10 cent is in tulsa by up to 20 percent of the world's biggest music label universal is home to the rolling stones lady gaga and taylor swift french owners vivendi want to break into china's growing but tightly controlled music market. job losses slumping factory orders headlines we've recently read about german industry discouraging trade wars and breaks it out to blame no doubt but industrial orders a surprising analysts today increasing by 2 and a half percent in june that's
a bit of hope and the biggest rise in 2 year is it's probably just a blip. in june the clouds parted german industrial orders beat the forecasts and landed some major contracts siemens wind energy unit got mesa is contracted to build huge wind parks off the eastern coast of the usa turbines that can produce 1700 megawatts and provide power for more than 4000000 households it's the largest offshore contract ever awarded in america. orders like this are keeping german companies order books full contracts for goods made in germany rose 2.5 percent from the previous month the biggest increase since august 2017. but the news isn't all rosy factoring out the big ticket projects overall orders are down by 0.4 percent. physically economists are warning against celebrating too soon.
the rise in orders is a good sign but sentiment indicators show that germany's industry isn't out of the woods just yet. and japanese electronics maker any c. has taken its long awaited flying cop prototype 1st been almost looks like a toy helicopter either that or a giant draw in the battery powered quad called to hold it in the air for a minute during a test flight in tokyo but it could be another decade before passengers actual ride analysts say the month of flying cars could be worth one and a half trillion dollars by 204000. business with you.
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the folks. this is deja news coming to you live from berlin bridge in juan's hong kong protesters punishment is coming police make mass arrests after clashes with toward democracy demonstrators as. calls from the midst of the street battles which have plunged the city into crisis also coming up pakistan's prime minister john kahn considers his response after india revokes kashmir special status caucus sounds powerful miter says it's time.