tv Business - News Deutsche Welle June 25, 2018 3:15pm-3:31pm CEST
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with us. you're watching these every news coming up ahead in business adventures soon as saudi arabia puts women in the driver's seat many are also expecting a boost for the economy the reason coming up soon. and that is with my colleague ben facility who's standing by for you right here on. capitol hill. jim and with doubling any time any place. video an event as. they have on the back of those.
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songs to sing along to you download to just a combo of a t.v. from soup. to them to. have very close is plentiful into active exercise is the kind of thing about that detail when you don't come sasha documented on facebook in the uk still. in german for free but the devaney. the boom is over exports see europe's economic engine cooling off trade tensions abroad and political uncertainty at home dock and the sentiment in germany. will be spain for the euro zone's common currency my guest today economist mach speed of a shock reckons the collapse is right around the corner. and a billion dollar reason to get women behind the wheel. or is it about giving saudis
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well freedom. let's do business it's not what investors want to hear the boom is over the message today from one of germany's most respected economic institutes the research group says business confidence as this month to its lowest level in over a year that applies to all four sectors it measures construction services manufacturing and trade with the world edging towards a four blown trade war the german export champion may not be able to take this one in its stride. the retail sector has been a pillar of the german economy in recent years. but retailers themselves now have a pessimistic outlook system unit based economic institute. that's also due to new challenges for germany both at home and abroad. chancellor angela merkel is dealing with a political crisis have a very in coalition partners the c.s.u.
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have taken a tougher stance against immigration. that could bring down the government and force new elections something that wouldn't bode well with investors. add to that the dispute between the u.s. and its major trade partners washington has threatened even more tariffs in retaliation to the e.u. use new levies on american products experts say germany would be the big loser any new tariffs on its automotive industry would hit more than other e.u. countries. and the big fall in business sentiment here is he germany's dax daniel cope joins us to paint a picture for us from frankfurt daniel has a look at. well painting it was no really good in our classic bad less better talk about the numbers but yes what a lousy day here at the blue chip index saxon's to start off the trading day the losses are getting bigger and bigger and we are down right now with more than two
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hundred points a minus of more than one point six percent and there are lots of factors that are weighing in at the moment investors really seem to realize you mention is that indeed the big boom is over all of this really has a lot to do with the current u.s. president donald trump and i can tell you that people here are learning an asset manager told me a little bit earlier that his clients are very worried about the current political situation and the fear is that this is most likely set to continue until mr trump will leave the white house let's also take a quick look at the euro one euro is a is that a level of one seventeen a dollar at the moment that's a plus of a bald zero point two percent even though we are far away from the one twenty five mark we saw watch two months ago the your it's not really helping today during the trading day how baster odd is that work there in frankfurt a very very ugly picture i have to say sorry.
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and let's bring in mark fried of aisha the author of the crash is the solution why the ultimate collapse is coming and how you can protect your wealth mach are all the signs that a crash is around the corner of the this trade war the sentiment here in germany right now the political situation as well we are in term of states definitely and we see it economical as political that we see a particular shift it everything changes and the e.c.b. for example is printing every day one billion euros to buy government bonds from bankrupt countries like italy increase we have historically low interest rates all to use on the signs that are going to come in the state of the european currency union and it will get to the e.c.b. in a moment first of all everyone else i've talked to today everything else i've read today has been about a cooling down of the economy not a downturn not a recession and there are some people who are saying a recession could be coming in the u.s. but what about the e.u. first of all why do you think this could be a recession i definitely see
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a recession on the horizon it's over we have nine years of a bullish market in the stock market for example and in the economy where prospering especially in chimney but only in chimney if you look to the southern part of europe they did not prosper and this is a big problem of dupion covering the union you know we. have winners of the strong euro but they are the losers and we see that this is going to end badly and then when the u.s. comes into the equation i mean if we see a recession there everyone knows when america coughs europe gets a cold very very cold perhaps even more burst but i think but we will see a recession the next six to eighteen months that's for sure i'm just tell me how you're so certain about the timing because i mean everyone who knows a little bit bit about economics business knows what goes up has to come down at some stage we know that we're going to have a crash at some stage but why eighteen months because if you see all of the economic debate us you chest see that we are out. order for everything you know the
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last nine years where extraordinary if you look back in history we never had such a long term of prosperity markets and it's just because the. central banks printed money and put the interest rates very very low and just created one bubble after the next one and now we're at a terminal states that's why i expected twenty twenty will see definitely a recession and a big market crash let's talk about the e.c.b. then what should the european central banks role be why is it going so wrong in europe it you know right now to print it two point four billion trillion a euro to the public which is program to safe the european union and of european currency and the southern part of europe and this is not going to last because you can't create you can salute and you can save. the economies in the southern part of a few up and you can print your self out of the crisis you can save them what
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should we do what we definitely have to cut that you know we have to give greece and italy we have to give them have to tell them ok we cut the debts you know at the most you don't have to exactly executive didn't have a paper we're not paying it back in in prosperous times you know right now we pay low interest rates but even in this boom times germany is not paying bed back one single cent of debts you reckon with never going to get that money back from the stimulus never see it again and a packet to solve. had one billion euro the european and the chairman bundesbank and lend one billion euro to the southern parts of europe we would never see this money again and this is on top of the government debts and shell money so we definitely determinant stage of this whole thing but he only talking about letting them off the hook or also kicking them out of the euro zone we will see several currencies again do you repeat the euro will fail we are under brink of the call ups and this will be like
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a. next two to five years but if you look back in history repeating currency units current currency you're in sorry never it they never grew up because it's it's madness to put weak economies like creased italy france with strong economies like show me austria in one interest core set in one europe currency union i'm afraid and thank you very much for coming in today thank you for having me well the u.s. government continues to review its trade relations with the world but china and the european union have reiterated their opposition to washington's protection a stance and their own commitments to the existing global trade order a senior officials from china and the e.u. have met in beijing today to conclude talks on a bilateral investment the chinese there pretty prime minister says he hopes europe will ease its controls on exports to china the european commission vice president in turn calling on china to ease market access restrictions and tackle its overcapacity of steel over. german companies b.m.w.
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and siemens have joined airbus in voicing their concerns about staying and investing in britain the companies all cite uncertainty surrounding the post breaks that deal with the e.u. a criticism magnified by a new survey among business leaders in six e.u. countries really half of the eight hundred executives whole bible from mckenzie that their firms have reduced investment in the u.k. since the breaks of thought aeronautics company air bus said last week that a no deal scenario might lead to moving thousands of jobs abroad women in saudi arabia no longer stuck in the passenger seat authorities have started to issue driver's licenses to women again on sunday the first female drivers were able to get behind the wheel but to what extent is that a case of giving women more freedom and to what extent is it about giving the economy a boost. getting into the car to drive to work or on our hands it's a first for most saudi women who are literally forced to take a backseat for the last sixty years through louche narry nature of the move makes
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even mundane tasks exciting it's my first car. with a very now i want to take a picture of myself i want to take a selfie of. analysts predict tree million female drivers in saudi roads by twenty twenty their new found automotive freedom he's also expected to benefits how do your a.b.s. economy mobility is set to improve women's access to the job market crown prince mohammed bin solomon hopes that thirty percent of women will be contribution to their household income by twenty thirty. each of us had some time to do what they really want to do just because we don't have it. because of. the new policy is also a business opportunity firstly due to the demand for new driving schools catering
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solely to women. meanwhile car dealerships ikea ring out for female customers local media forecast annual growth of six to ten percent for the domestic car market but that could be optimistic last year new car sales in saudi arabia fell by over twenty percent to slump was partly due to the country's recession saudi arabia's g.d.p. thought was zero point five percent from seventeen. turning the all dependent kingdom into successful modern economy will take more than having women at the wheel. bring business with it.
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