tv Business - News Deutsche Welle January 16, 2019 12:15pm-12:30pm CET
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cartel first we'll tell you why in just a few minutes time he has all that and more i'm sorry kelly in berlin in the meantime thank you so much for joining us here on g w f c against. africa. how do you want to. discover your concept discover with the powerhouse. school. off to one hundred gives the ideals of the bond house a more relevant today than they were a hundred years ago missionary shaped things to karbala about as people understood
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as a way of shaping society. with ideas that are part of. our house world this week on d w. parliament in britain decisively buries the prime minister's breaks that plan markets are oblivious to pound in the state level the big question though remains when will the uncertainty end. tourists from the us are flooding into communist cuba on cruise ships this by travel restrictions imposed by the trump ministration . animal then three dollars for a litter of fuel that's the spock nine hundred civil unrest in zimbabwe two years
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after robert mugabe is right and did the government still struggles to get the economy up to speed. of business as welcome global stocks appear to be weathering british prime minister to raise a maze overwhelming parliamentary defeat relatively well the pound was held his its ground and while u.k. trading has been muted have been no dramatic downward shift so far elsewhere in europe stocks are mostly flat the exception of shares in banks which rose slightly this follows a similar performance on asian markets were best as a holding out for two possible and diametrically opposed outcomes orderly breaks it all another referendum. now germany's top economic think tank has entered the debate today with suggestions to offer britain a solution that will resembles the bond between e.u. the e.u.
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and switzerland sounds interesting so let's check in with was part of the team that conducted the study and welcome to the show can we expect to get high quality watches and fine chocolate from britain in the future or what is what is it you mean with the swiss model. hello no i don't think we get chocolate and watches from great britain we rather prefer bentleys and financial derivatives actually and what you mean with swiss model is that switzerland as a not a full member of the e.u. but is very closely linked to the e.u. internal market and participates in many different programs like it a second area or to russell's and student exchange program with a multitude of bilateral agreements and this is what we also see for the u.k. as a possible way that would probably take time to negotiate all that and it would also mean britain remains in the customs union according to your study do you think there's a majority in parliament in the u.k. that well it depends on the customs union so if britain has for example a say in the customs union and also internationally negotiated and together with
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the e.u. free trade agreements then there is an incentive to give a part in the customs union we have to build a huge market to be a global player that is on a level playing field with china and the united states that's why we must form the market as big as possible you also say that this switzerland model could also go beyond britain what do you mean by that we have to acknowledge that there are many countries in the periphery of a core europe that wants to be a political union that wants to have maybe a new army that uses the euro currency but does perry free countries may only be economically linked to the e.u. internal market and just for example could be a model not only for the united kingdom but also for turkey which is part right now of to customs union but also for serbia and in the very long term for the ukraine and even for russia. very briefly martin if you can how likely do you think
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a switzerland solution is for britain to get accepted to britain. well it depends on the willingness of european negotiators to to offer this solution to the united kingdom a think british politicians would be very keen on undiscovered of solution but it depends them especially on brussels but involvement from the evil economic things i can unify thank you. in zimbabwe soldiers are patrolling the streets to deter a growing protests over shock rising fuel prices itself response to fuel shortages and the latest sign of the country's deteriorating economy things in zimbabwe were supposed to improve with the end of robert mugabe and grip on the country and did two years ago rain marked by stockpiling debt and soaring inflation. gasoline in zimbabwe takes days to get and it's now the most expensive in the world costing
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three dollars and thirty three cents per liter this for a nation where the majority lives in poverty inflation and shortages have returned to zimbabwe and with them anger at the government. has been going through to fifteen dollars for two leaders of cooking oil and two kilograms of sugar is going for ten dollars an hour is enough. it's a grim outlook for president emerson mine on god whose rise following the thirty seven year rule of robert mugabe suggested better times were ahead or at least more stable ones markets reacted positively foreign lenders seemed willing to open their pocketbooks again but the economy's structural problems remain unresolved state owned enterprises and a massive public sector swell a budget propped up by the central bank is over drafting to pay the country's bills and relying on an electronic currency due to the lack of hard cash that's caused the actual value of the currency zimbabwe use the u.s.
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dollar to plummet the government needs to borrow more to increase its cash reserves immanent god is busy making his case he was in moscow this week and he's expected to attend the upcoming world economic forum in davos all efforts to keep zimbabwe's fragile economy afloat. u.s. president donald trump's travel restrictions on communist cuba were aimed at depriving the country's government from profiting from american dollars thought his decision to exempt cruise companies from the ban has had an unintended consequence now even more american tourists are coming to cuba and this supports a government rather than private enterprise. if you're an american hoping to visit cuba your best chance of getting there is on a cruise ship u.s. luxury liners are still allowed to take groups to have found the. passengers generally only make a quick trip on sure leaving little time for shopping. and
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i mean when he planned to buy just one leader of iraq you don't smoke. maybe buy some coffee. if trump's aim was to starve the cuban state of american dollars the plan failed us ships pay the cuban government millions to dock in the capital economists say the policy is actually hurting an unintended group of people . the most effective has been the non-state sector the private sector. known state run restaurants more in the days of u.s. tourists coming to spend both time and money for. we've got a reduction of about forty percent in business compared to last year. in the think of. the number of u.s. tourists in cuba is actually growing despite trams travel restrictions but they're coming into our groups i'm staying only for
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a short while and the result is that their money is going to state run enterprises i'm not to cuba's entrepreneurs. to turkey now where the central bank has to decide about interest rates later today and that could help put it on inflation the collapse and turkey's currency this year forming at one point around forty percent has hit the country hot for turkey's distributor of germany's world famous birkenstock shoes the crisis came at exactly the wrong time as dorian jones reports from istanbul. has spent his life building the big construct brand in turkey selling a few thousand back in ninety five sales are now in the hundreds of thousands companies selling imported goods but turkish currency collapse is posing unique and formidable challenges. i've worked too hard to establish this brand in turkey
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and to explain birkenstock special souls to customers i want to allow my efforts to be spoiled by crisis situations like the recent one that we've put a pricing policy into effect by waving our profit just like we've done in the past when we opted to expand the brand in turkey the crisis though has struck a big blow to us we've had greek losses that unfold the currency collapse could not have come at a worse time for abated having just engaged on a major expansion of shops across the country many opened in shopping malls huge numbers of exploded as part of a nationwide construction boom adding to the financial pressure the rents in the malls are normally in dollars or euros because most owners have borrowed in foreign currency to build the molds. the mouse shop owners have had some good news with the presidential decree ending the practice of foreign currency rents but those stores selling solely imported goods whose prices have risen substantially it still
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remains a struggle to get. our customers who remember the prices from last year can clearly feel the increase the higher prices make us get into conversations with their customers about the exchange rate they ask us the reason for the increase and we have to explain the exchange rate situation. as i said this makes people think twice before buying. it that's the way it is with other brands too not just ours. the few customers that visit the shop most are just looking as a crisis is already hitting people's pockets. the crisis affected the way i shop for brands i now wait for sales get back at the bacon stop turkey head office discussions i'm brainstorming on how to weather the economic storm continue thirty years in business betting is no stranger to currency shocks and prices but he is aware of the scale of the challenge facing him. turkey has seen big economic crises
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and in my opinion this one is the biggest so far at least the biggest one i've experienced but we'll overcome it. bettin has weathered many storms in his career to bring bacon stock to turkey but with economists warning of a session next year this could be toughest battle yet. and that's it for me and the business team here at the w. if you don't do that already follow us on twitter on facebook now stay tuned for the second hour travel show up next right up next.
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