to keep the body's appeals court alive despite u.s. action to block it. and how the system of a micro credit designed to help the poor can easily turn into a debt trap. welcome to do business i want to get johnsonville and good to have you with us now is the 1st indication of how business is doing in the new year confidence among business leaders in germany inch to back slightly in january a monthly barometer from the munich based if for institute fellow north point 4 points compared with december as well short of analyst expectations on the upside manufacturers benefited from some clearing up of uncertainty in recent weeks as the u.s. and china struck a trade truce and the next steps for breck's it became clearer but confidence among service fell back the data points at a difficult year ahead. for more on this difficult year

ahead i'm joined now by claimants fus the president of the evil institute lightness institute for economic research at the university of munich good to have you with us now you say that the german economy is starting the year in a cautious mood why is that. yes so what companies are telling us is that the current situation has improved somewhat odd but they are skeptical as regards the coming months so they see some risks ahead as you said the good news is that manufacturing which is a key sector of the german economy is doing better so we have a better reading there is skepticism in the in services and in construction now construction has been booming for a long time so maybe this is just normalization and in services it is those service companies that are close to industry that are suffering a little like logistics and some other things but we will have to wait whether that

is a sustained. downturn or just. a little dip so we shouldn't take this too seriously at the moment but overall companies it's true companies are skeptic for the coming year and of course the survey doesn't yet take into account the outbreak off coronavirus in china we've seen markets react very dramatically what impact could this virus half on the german economy. that's very difficult to predict all depends of course on how the virus develops and how the epidemic develops the experience from sars which was a which happened 17 years ago was that there was a negative impact on chinese growth of the one percentage points estimate say very little impact on the european economies but the the trouble is that the current virus apparently has a long incubation period and might develop differently so i would say there is

a risk there that would be taken seriously but there's no reason to panic now this week on friday we will probably finally experience breaks it's happening you'll survey says that more or less everything is clear but is it given the transition period. well it's clear that there is no saddam harbor exit at the same time we have those 11 months now to come up with a pretty freighted rooted trade agreement the u.k. government has committed to ending the transition period at the end of the year we will have to see whether they stick to that. there is political pressure to do that at the same time if it takes the year or 2 more to strike a trade deal with the u.k. government should change his views there but there are some modern of certainty there it is very important to agree on a trade deal if that works i think that the impact the economic impact of rags it will be relatively benign right claimants who's there president of the if institute

in unix thank you so much for your time thank you monica thank you. well stocks started the week down on growing concerns over the scope of china's spreading virus outbreak japan's nikkei average suffered a steep 2 percent drop its biggest one day loss in 5 months however many regional markets including china as well closed for lunar new year holidays australia was closed for australia day fia's over the global economic impact of the deadly virus also sent all the prizes plunging while safe haven assets including the yen and gold rallied. well last month the world trade organizations appeals court for dealing with trade disputes effectively collapsed when the u.s. blocked the appointment of new judges to it where now the european union china and 15 other countries have agreed to create an ad hoc appeal body to overcome the u.s. blockage and continue to have access to an impartial and high quality dispute

settlement system. amid the snow capped peaks of devils last week something of a thaw set in on the chilly tawfiq of world trade several countries trade negotiators met at the annual world economic forum gathering to agree a way forward for the w t o system for settling international trade disputes. when the us blocks the appointment of new judges in december to the w t o's body the supreme court of trade dispute appeals that body ceased to function but the e.u. has managed to agree a temporary dispute settlement system with china and 15 other countries including australia canada says korea and brazil w t o head roberto azevedo said an overall solution was still being soft but that the temporary arrangement would work for now. all there we're trying to fix we're talking but we're not quite there yet and some members are having conversations

about some form of a multiparty interim arrangement that would allow the deal stage to close and for those who want to participate in that arrangement. washington has lung taken issue with the w t o appeal system has not signed up to the new arrangement neither has japan or russia. for more i'm joined the office element from d.w. business how strong then is this new alliance when in the context of world trade monika it's quite strong so if you look at it very quickly when the u.s. as the report said blocked up the appeals process last december the e.u. had already done some work to set up this ad hoc court essentially it has already agreed to deal with canada and norway and then last week in davos it got several major countries involved so the big one obviously is china so between china and the you that accounts for a major portion of it on top of that you also some major players from the asia pacific region singapore australia new zealand south korea and then several large

central and south american economies from mexico colombia cheeta brazil so it's quite a significant group in opposition to the u.s. blockage and while it obviously doesn't it's a temporary arrangement as the european commission said and if it doesn't have for example the u.s. obviously involved also japan and russia so it doesn't really solve the overall problem but it is significant in the context of last month's blockage and it doesn't really solve the overall problem that the w t o has does it no no it doesn't i mean the european commission of been quite clear in their statements since this committee was or this court is this ad hoc court has announced that it is a temporary arrangement w.t.f. problems extend far beyond the blockage of the opposite body and the e.u. and the us are largely largely in agreement on the books there is talk of reform and indeed last week donald trump had a sort of impromptu impromptu press conference with roberto azevedo the director general of the w t o and in the press conference from both of his words very dramatic reforms that were coming as if it was somewhat less dramatic in his words but there is talk of

reform coming so it's taking a surprise probably off a cell phone from for business thank you so much for this. microcredit designed to help the poor and enable them to build a life for themselves by providing small low interest cash injections to new businesses while recent studies however show that this much praise system of microsleep credits can easily be abused our report takes us to come bodie where millions of people have taken out of micro loans with many of them falling into debt spirals. every time naomi young turns on his water pump he's reminded of his 1st microcredit he bought the pump with a $200.00 loan from a micro finance bank. he thought that the pump would help him irrigate his rice paddy giving him a better harvest and more earnings so that he could quickly repay the loan. it was

a good plan but then the rise in prices dropped. the expected profits vanished and today naomi young is broke and can't repay the loan. but unlike you i don't know what to do i'm not earning enough money but i work hard every day to feed my family but i'm more and more in debt 'd i don't know how to escape it. when i don't. think. he had to offer his land as security for the loan if he can't repay the loan by the end of the year the bank will take his rice field meanwhile he owes a total of 5400 dollars to several micro finance banks that's what most cambodians earn in 2 years. it gets me down i feel under pressure i'm scared i'll lose everything looking back

i was much better off before the loan than today our life was better than you know and i'm with it. when i get what i thought oh molly and i thought. and he's not the only one who feels that way not only in his village but all over the country nearly 2000000 cambodians have taken out micro loans and hundreds of thousands borrow money privately the capital phnom penh is the booming economic heart of the country its standard of living is rising rapidly and many people who would like to be part of it are easy prey for unscrupulous micro finance institutions. to my eyes many banks don't even ask clients for a business plan sales reps persuade people to take out a micro loan because they get a commission the uneducated borrowers don't understand the terms of the loans but

with their signature they take the 1st step into a debt trap. and i become. more and more micro finance institutions are appearing they're practically unregulated and the ones who pay are the ones who have nothing like rice farmer on. his attempts to get out of debt are becoming more and more desperate now he's planning on driving years used took took as a taxi maybe he'll have more luck with that than with other business ventures he can only keep struggling and hoping. and that's your business update here and you w for more to go online and visit our website at www dot com follow us on twitter for me on the business team in berlin thanks for watching.

how is your view of the world. where i come from that all is that it does this go it just like this chinese food does matter where i am it's a risk reminds me of home after decades of living in germany chinese food is one of the things i miss the most pathetic not that bad i still think i need to differentiate now. granted for its 1st as an articulation that exists as a part of the war haven't been at an event as in china that's because i'm not a chinese people wondering if they're going to say that but if people have a right to another point that is this is their job a job that as a mom how i see it and that's why i've been up my job because i tried to do it

except it is an hour a day by name of the uninsured and i work at it up here. 2 every 2 seconds a person is forced to flee their home nearly 71000000 people have been forcibly displaced the consequences to some stress were documentary series displaced depicts traumatic humanitarian crises around the world you know. what a good thing will be if i didn't go to university to kill the pain so i don't owe it to me or to have my boss come to me and tell me to kill someone if they go and if i don't they'll kill me. people feel for their lives and their future so based. seek refuge abroad but what will become of christie behind it if. they believe my husband went to peru because of the crisis that the wanted that if he hadn't gone there we would have died of hunger come on down.

the street to. play. play. play play. play play play play. this is g.w. news live from berlin the last a living witnesses gather to mark 75 years since the liberation of auschwitz survivors are there today as our world leaders to honor those killed at the nazi extermination camps with anti semitism on the rise there is a sense of urgency to remind the world about what happened to their.