tv Business Deutsche Welle May 6, 2019 3:45pm-4:00pm CEST
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shows start of investment in india is up forty percent. this is business. and welcome trade negotiators in the u.s. and china have been working for months on a deal that would satisfy both nations and and an extrusion a tug of war between the world's two biggest economies but now new threats by u.s. president trump up the pressure on each side drops it on sunday tariffs on two hundred billion dollars worth of chinese goods would increase to twenty five from ten percent that would reverse a decision he made in february to keep them at ten percent but that was when the two sides were making good progress on trade talks shares in asia were hit hard after the news european stocks are also down and wall street is expected to open lower to. the u.s. china relationship is love hate at the best of times but everything seemed to be going so well late last week the bullish donald trump hailed a progress in talks to avert a full blown trade war would she jim pings china. but the deal itself is going
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along pretty well i would even say very well we'll see what happens over the next couple of weeks but we're getting close to a very historic monumental deal and if it doesn't happen will be fine too maybe even better. that hint of how the u.s. might be even better off without a deal became a prophecy on the same day trump standing was boosted by strong data showing the economy was powering along. the u.s. economy added two hundred sixty three thousand jobs in april the unemployment rate fell to three point six percent a near fifty year low wages also picked up for a leader who prides himself on mastering the art of the deal these figures gave him the option to pile pressure on china he announced a new round of punitive tariffs on two hundred billion dollars of imports. a classic negotiation tactic and they're feeling the pressure in china shares their plummeted with the blue chip shanghai composite down six percent. there are positive signs china's chief trade negotiator leo who will head to washington after
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all there were worries he might not go but for now uncertainties about the direction of trade talks are upsetting investors across asia and damaging sentiment in markets already nervous now with me in the studio to shed some light on the background here is the obvious china expert clifford coonan and often of course want to call a boon is also standing by in frankfurt the living let's start with you is how the an accident happened so soon after the strong job state of from the us is this just trump's tactics it's definitely goes in tactic he felt emboldened by the strength of the jobless figures in particular but it's also been a negotiation going on on the chinese side too and they're not prepared to just lie down we're hearing i'm hearing from my sources there that that she jim ping wanted . some of the concessions that the negotiation team was making he very much wants to put his imprint on the trade deal that comes out too so i think we're at that
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stage in trade talks where negotiations they can kind of see the finishing line but there's a lot of a lot of naughty bits and pieces to go through yes investors seem to seem to disagree with this is just tactics comma. in frankfurt why is markets hit like this . you know you know whatever it is tactics are not hard it makes the optimism go away optimism that you know you can rely on donald trump that you can hope for a change of mind here that the americans and the chinese might be able to find some common ground the uncertainty about this is on the rise again and this of course raises concern on the trading floors that you know businesses manufacturers purchasing managers who give out all those for large capital goods might continuously be reluctant to order today we got reports from the german engineering sector that confirmed that you orders for this sector have come down again. if
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we're looking at china going to was talking about industry what is the outcome but people in asia want well i think what people want in asia is very much for coming out was saying we mentioned uncertainty what they want is certainty they want these talks to come reach a satisfactory conclusion they are they wanted there i think they're prepared for concessions on the chinese side they're also hoping the trump will will push too hard so i think what they want is a balanced outcome and they want to be able to have the certainty to be able to invest again to start expanding their businesses again and for their economies to start picking up pace again because we've seen a slowdown in asia and they're hoping that the successful resolution could maybe resolve that car is that the same here in here in europe is that just a deal whatever deal but a deal is the major thing. well sure a deal would certainly make
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a lot of the uncertainty go away which would mean less volatility this is volatility what has been caused on the markets mainly because of this erratic policy and those erratic tweets by the u.s. president let's not forget we've been talking about this uncertainty for a couple of months now for quite a while and during this period of time equity prices have risen to well significant high is because of course businesses have managed to beat analysts expatiate expectations with their earnings reports so in the long run the market can live with some uncertainty but the fewer you have of it the yes the fewer you have of it the better because then businesses can go on with business as usual. in front for you in the studio thank you very much. no boeing says its engineers identified a force with a pile of warning system on
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a seven three seven max jets nearly two years ago that was before crashes last year in indonesia and this year in ethiopia claimed the lives of three hundred forty six people those are since were believed to be linked to a malfunctioning software u.s. plane maker says its engineers found the system was not working correctly but did not affect safety it said neither management no authorities were informed all seven three seven months planes have been grounded around the world boeing is working on a software out that it hopes will get the top selling jet back into the air soon. we're going to india which is emerging as one of asia's premier startup ecosystems the indian government is aiming for a total of ten thousand start ups to be five founded by next year and is cutting red tape and offering tax breaks to help them along it's all part of
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a government action plan for startups and so far it seems to be working business is booming in the first quarter of this year alone investors poured some three point four billion u.s. dollars into indian startups numbers like that place the country among the biggest generators of technology startups in the world over the past few years and there's no sign of it slowing down that first first quarter investment volume is almost forty percent more than the same period just a year earlier. but almost half that sum went to india's five biggest startups leaving the other one hundred fifty companies founded in that period to divide the rest between them much of the growth in startups came from sectors like health and financial technology e-commerce as so far led india start a boom but in that sector investment was down almost seven percent compared to last
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year and like in other countries the startup scene is concentrated in a few major cities where it's easy to find qualified workers above all in india that is bangalore. and that is where our correspondent. is standing by for us at least i hope he is yes there is hello jay that's impressive figures there but the number of startups alone doesn't mean anything if they all fail is not right. quite right the number of start ups or matter but the misses that are rare that this is risky business so they're ok if nine out of ten startups fail as long as they can get that one start a protest a big hit so if you go back in time and look at flipkart which was india's largest e-commerce company and it was sold to wal-mart in a sixteen billion dollars deal and you look at the numbers there the investors who came in early let's put example axel partners they put in about two hundred million dollars they walked away with a cool one billion dollars not the same case with tiger global
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a new york based hedge fund they put in about a billion dollars that their stake is worth over three billion dollars now so they don't really care for ten for not going to start ups fail as long as they get that big sort of exit. to india's e-commerce sector used to be the shining beacon in the startup scene but that sector is now recorded negative investment why's that. so there are a couple of reasons for this one is that e-commerce in india is that as a slightly more mature of the companies have grown up and the markets are really tapped out are so the growth in that sector itself is a little slow so and there isn't much early statement a capitalist can do there so that's why you see that the investments have slowed down and the other thing is that india's richest man mukesh ambani who also by the way owns a telecom company which is a part of the growing telecom company in the in the country has plans to enter e-commerce in india so are you looking at some regulatory uncertainty as well so
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that's probably. a few reasons why investments as lauren e-commerce and of course there are other sectors which are kind of heating up right now. speaking about that you know overall investment being up forty percent that's good news which sectors are benefiting most from that. so you would see our health care education and finance so these are three real sectors where you would see a lot of growth happening it's basically because india has a huge consumer market and a lot of people are coming online for the first time you would see a lot of people transacting they're there ditching cash they're going on on mobile payments you'll see a lot of people hungry to learn more upscale themselves so if you look at the jobs numbers that you look at that that we keep talking about here in india a million people hit the job market every month in india so all of them need to up skills so education is a huge priority out there and whoever is delivering it online using technology
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there are able to raise a lot of funds from indian fermenter capitalists. ek speaking to us from bangalore in india on the startup boom thank you very much. before you go here's a quick recap. top story goble global equities have nosedived which china says it is still heading to washington for the final stretch of trade talks u.s. president donald trump has announced he'll increase turfs on two hundred billion dollars worth of chinese goods if he does not get the deal he says. and that's it from me other business here in berlin for more business news on features go to a website called slash business when you can now look at check global markets.
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no future in the country days out and the hard. have jobs yes i feel covered. iran is politically isolated and u.s. sanctions have plunged its economy even deepening crisis. the family be forced to leave their homelands iran in twenty nineteen a country without prospects. to. be ninety minutes. on the road with our superheroes my mission is clear blue crush to get into the culture leashed explore germany. they dive in and shut everything out and a lot going on in
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