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tv   Business - News  Deutsche Welle  January 16, 2019 2:02am-2:16am CET

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teresa mayes briggs it deal rejected two thirds of lou make it say no or to have a plan so what happens next and what is even more uncertainty means the european business is also coming up flight cancellations and delays across germany as security staff at seven airports go on strike over the page. this is your business update i've heard on free in berlin glad you could join me a crushing defeat for british prime minister to research may and have breaks it deal on cheap stay lawmakers voted overwhelmingly against the agreement she negotiated with the e.u. through georgians departure from the block and while both break cities and pro e.u. supporters cheer the result together it makes the prospect of a disorderly breaks it ever more likely business leaders and now left asking what next british pm may well she faces a vote of confidence on wednesday on brussels is making contingency plans for
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a no deal break six. and earlier i spoke to john hermann he's a lawyer at c.m.s. law firm and he's a team advisor advise in german companies on breaks it related questions so i began by asking him what the prospects of a no deal brags it would mean for companies in europe. it's been clear from the night of the vote back in two thousand and sixteen that if we got to a point in time where there is no regulated transition period in a regulated exit of the u.k. from the european union this is would suffer a considerable disruption uncertainty has only grown over the time that the does come since then and as we enter this last phase the uncertainty just increases the business is very concerned about disruption destruction to their supply chains disruption to their staff destruction to their markets both suppliers and product markets and the implications that they will have could be very severe say what are they doing about it what are you advising them to do about that to prepare for that
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well most sophisticated businesses have already done an analysis of risk analysis of where they might suffer in the event that from one moment to the next the u.k. falls out of the single market the regulations and the legal framework which constitutes the single market should have done that analysis and determined what mitigation steps they can take and for example in relation to contractual relationships supply chains stockpiling licenses for the last six can be transferred out of the u.k. regulatory environment into the european regulatory environment and that process for many has been completed and the question now is implementation a great many would already have started implementing but there are some we're seeing coming fairly late they trusted perhaps the politicians to find a solution but it coming now and saying right we need to do something we need to prepare for this and are we haven't anticipated what happens today as they come is coming time is ticking on this it depends on the business it depends what the risks to the model every business is exposed in the same way obviously to the u.k.
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market and those that are particular exposed i think in general would already have done this analysis and understand what needs to be what needs to be done to protect our position but they do need to look at particularly supply chains are they selling into the u.k. are they receiving goods for their supply chain from the u.k. are they. sourcing chemicals from the u.k. these sort of issues practically could create significant difficulties very quickly and of course we don't really know i mean some people are even talking about the prospect of a second referendum i mean perhaps you know even though briggs it a tool as the damage though not already been done to economic ties between european companies and the u.k. for example is this their vocal in some sense circumstances i think i'm not sure i ever irrevocable but it will certainly have mid to long term consequences in the financial services industry people have already moved jobs into the e.u. restructured businesses in order to take account of what might happen in the worst case those things are going to change overnight. and so brics it already has had an
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impact and even if the u.k. which is which is positional to switch is direction now for many it's already too late to change back overnight what's happened all right john hammond a lawyer at c.m.s. thanks a lot for joining us thank you well some a big story that's find out if he breaks it deal vote down is having an effect stateside our financial correspondent was into his data joins me from new york now is it always good to see you how is news of the brig's it deal defeat going down where you all. well helen i would say that it's dick clark is the primary magazine that wall street is prescribing right now both too long to and brothels after macy's story get to feed on tuesday investors already expected does the feed that's why you did pound preview of the losses that we did or by the way the bold of non-confidence inside it seems that these orderly breaks it down as you mention is becoming more and more a reality. stands as an extension of negotiations beyond the end of march would
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make sense and politically both for the u.k. and the european union is specially of maser government ends up collapsing but it's true that even if that extension happens the ongoing and extended uncertainty will continue to take a toll on business investment and especially on economic growth we're talking about disorder there's a new east is quite some disorder going on where you are with the partial government shutdown which continues what does that mean for companies how is it going to play out economically well basically. their current some don't shut down if extended will take a toll on the u.s. economy which could end up whole team needs expansion in the first quarter does make sense especially we take into consideration that historically with winter weather takes a toll typically on the economy in the early months of the year some reports already pointed out that the white house has reviewed higher the economic cost of this shot down to zero point one percentage point week so if they can situation
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continues over the next couple of months or we should not be surprised if the us g.d.p. contracts in the first water for the first time since two thousand and fourteen because of political crisis in washington well certainly significant economic development that our financial correspondent breaking it down for us jose luis to add a thank you very much andy. jemma com a fog in and u.s. competitor ford have announced a much anticipated plan to fortunate alliance the two companies will work together to develop commercial vans and medium sized pickups while exploring cooperation on electric and south driving cars company had made the announcement at the motor show in detroit and said the first vehicles from the efforts could hit markets as early as twenty twenty two the cooperation comes as international trade conflicts all triggering call makers to rethink where they built their vehicles as a way of avoiding tariffs and also said it wants to invest eight hundred million
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dollars in a new plant in chattanooga in the u.s. state of tennessee. and our u.s. correspondent my schrader is out the auto show and had more on the announcement between v.w. and fort in a conference call v.w. c.e.o. said they want to make electric cars quote for millions not just for millionaires now this was supposed to be a big industry announcement touting the groundbreaking new partnership between volkswagen and ford but the unspoken name in the room was tesla a relative newcomer on the scene who's not showing in detroit but who nonetheless has disrupted the market so much so that now these two big industry heavyweights feel the need to collaborate to try to take them down the ford c.e.o. declined to call out any other brands or even put a timeline on the development of electric cars saying they want to preserve their advantage while they're still a venting but when two big brands like this have to collaborate against you you
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know you're doing something right. u.s. corps one of my schrade it that now german airports are mostly out of commission on tuesday as security staff stage strikes over pay hundreds of national and international flights were canceled at eight german airports including the country's busiest help frankfurt international at least two hundred twenty thousand travelers were hit by cancellations and delays with security staff demanding a payroll. on the display board it's one consolation after another more than half of the flights in front foot won't take off today due to strikes by security personnel those who can't make a tentative arrangements are stranded. i had no idea no idea i'm stuck i'm just trying to get home and a second going to be in germany for a while we want to go in. and know it's all the flights are canceled. the workers union considers the strike a success it wants the hourly wage of security personnel to be raised to twenty
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year olds nationwide but critics say that too high security personnel do not need years of training unlike nurses who on average earn thirteen year olds an hour. people need to understand that jobs in the service economy are underpaid whether you're a nurse or you're an airport security worker both of these groups deserve deserve a pay rise security stuff are striking for the third time in eight days their employers say that is disproportionate they are offering to raise the wages gradually over the next five years but that wouldn't be for all the twenty three thousand security workers a germany's airports. the director of the union is trying to use the strike to blackmail us people who have nothing to do with this are being held hostage them i want to emphasize that we are ready to talk and ready to go back to the negotiating table and it comes to work. the two sides have hardened their positions
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negotiations will continue after the end of tuesday's strike. while the german economy continues to grow but the own face enjoyed over the past few years is on the way in the us according to figures published by the federal office of statistics now overall in twenty eighteen the german economy expanded by one and a half a cent over the previous year marking the nighty of growth of europe's strongest economy nevertheless that is slower than the two. point two percent growth off in previous two years and notably economy contract is in the third and final quarter of twenty eighteen raising concerns among investors now the slowdown comes as the european central bank is gradually halting its crisis of stimulus measures. that set europe today with the latest from the wall the business for more details for a website that is d w dot com slash business so follow us on twitter i've had it on for a balance thanks for the company and see some are. we
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