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tv   Business - News  Deutsche Welle  March 17, 2022 5:45pm-6:01pm CET

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i am going to school and in a much anticipated move. the u. s. federal reserve raised interest rates by 25 basis points on wednesday. as the united states seeks to fight off rapidly rising inflation, the move lifts the target rate to between a quarter and a half percent. the fit had kept borrowing costs is 0 to help you economy recovery . and then it chairman jerome pal, says further rate hikes and likely in the near future woke center sort is following this story, forrest cassandra, there's a lot to keep up with, especially when we take a look at his gauge of future hikes that suggests another 6, all this year, yes, it sounds like a while, but they'll be coming at the same time as the already scheduled federal reserve meetings. so we just had the meeting this week, the march meeting this week. the next ones in may and the rest are split up over the summer fall with the last one in december. and yes, 7 total rate increases. this one and the next 6. that sounds like a lot,
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but it's estimated that this would bring the rate, the short term rate to between 1.75 and 2 percent. and that's really still on the lower end of the average federal reserve rate over the last 2 decades. so this is completely a shift from the near 0 rates that we've seen in the united states since the start of the cove in 1000 pandemic. but it's a gradual decrease of the heat, and it's one at the fed really hopes will keep the economy simmering without boiling over. what about timing inflation? those are going to be enough to do that. um, it's hard to say at this point, but that's the hope rate increases are designed to act like a cooling agent. it makes it a little bit more expensive to make a big ticket purchase like buying a sofa for your house or buying some equipment for your business. and it's hoping that this slowing down of these big purchases will help lesson over all demand, because don't forget, yes we're in this. it covers 19 environment. and that's really snarling supply
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chains like we've talked about many times. but there are only so many shipping containers to move items around the world right now there's only so much fuel. so it's hoping with lesson demand that things that these prices won't stick around and hopefully even decrease a little bit. what do you think about this comparison between now and the early 19 eighties when an arab oil embargo by the waste really branching out prices? i understand the feeling, right? these prices for all kinds of items, clothing, food, rent. these are really hitting people. i was just talking to a friend the other day. she lives right outside of boston, shorter dinner for her partner, 6 year old kid burritos, typically really budget friendly, right. but she said the bill when she got everything delivered was over $50.00 and she just would not stop going on and on about how hard this was for her just to, to have dinner on the, on the table. so i understand the feeling, but generally speaking, i don't think we're there yet. when we look at the numbers,
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inflation at that time peaked at nearly 15 percent. and the fed really tried to slam the brakes on that with a 19 percent in rate rate rate at the time. so the numbers at this point just don't back it up or so. thank you very much for coming in a rush or is threatening to expropriate, the assets of foreign firms that have fled its market since the invasion of ukraine . mcdonald's, starbucks, and coca cola are among major brands that have stopped operating in russia. proctor and gamble, ibm, and others, have halted exports that the wall street journal reports russian, prosecutors of fritz and firms with arrests and assets. seizures president vladimir putin has proposed to point to administrators to run the companies that have shut down production. christy. pleasant joins us from dw business. christy, how would rush actually sees these companies? right,
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so what's going on here is many of these companies are partially owned by foreign shareholders, unfortunately, by russian shareholders. so he idea here would be that russia would essentially see the 4 and the shares are often and the companies that you just listed that the foreign jo are, have the majority share. so they would, they would nationalize the share, take them away from the warranty holders. and basically, they completely rush for these companies to open up again in russia. and a part of the idea here is about addressing risk, widespread employment. there's a quite a strong presence of western companies in russia today, i just make a loan of people in russia. so this is hardly a move from the russian state to show that there is there anything that these companies can actually do? right, well there are many, many trees, many, many contract laying out what is allowed isn't allowed when
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a company moves into another country to do business there. so you can imagine that we're using, for example, a bulk production facility in russia. it's very likely that this is going to be with me either by the company or by government of a country or by both in fact. so what if i were to happen then once you record it's matter whether this was a lawful or an unlawful. expropriation, if the courts were to determine that it was awful, then moscow would be ordered to pay damages. and you know, we can maybe get a little bit of an idea of a would be a company that it's market assuming that they are not willing to pay out, then we would be looking for, for a broad freezing, then liquidating them out. so that's what it's really interesting that for example,
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a gas infrastructure brought one or 2 potentially teasing these assets and paying those out. tell me a bit more about what nationalizing these western companies would actually look like and practice. right. it's a really, really great question and it depends on kind of what sort of company you're looking at. if you can talk, for example, about retailers like a pretty great presence in russia now, russia could, for these companies try to force them to open their doors again. but most of their products, if not all of our exports that are coming in right now. so you would end up with is having their merchandise run out. you wouldn't have any and you wouldn't be able to pay their wages as
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a more realistic example would be food production. for example, there are many german agriculture companies, for example, it could be seized and turned into russia relative ease. and then another really interesting final exam review is car production. there's been a lot of efforts to get a credit for car makers in russia, you know, worst case scenario, where the really drives out 1020 years. we could potentially see rush china to convert those into russian producing cars factories. because a thank you very much for the analysis. great. talking to with russia and ukraine, accounting for around a 3rd of global we did exports. the was leaving in port is desperate to secure the great india, the world's 2nd largest producer is looking to fill the gap. bastere agent. second, most bulk of the country export at 6000000 tons. if we could export up to $10000000.00 to do that, the indian government says it will provide mill road and rail capacity and build
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new loading points with several port daily, corresponding charo county k, about the likelihood of india getting that infrastructure in place to meet demand there are a lot of her do in, know, in, in, in trying to implement this plan, these, these big ambitions that government of india apparently has. now, these include testing up laboratory, setting up the water tree to test the quality of wheat according to international standards. this include increasing the number of real wagons that the we can be ordered to the board. and then, coordinating with the board facility as for disability that went to, to prioritize we export of the government is yet to announce formally whether it is actively doing these or not. but there are reports that the plan has already been set in motion. several new liberties are being set up for testing the quality of wheat and the parties would also be able to do the homework on their
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part. so there are reports that this is happening back. russia's invasion of ukrainians and just sending oil prices sky high and creating volatility and financial markets is also hitting global supply chains that could lead to significant price hikes for just about all products. these cargo pallets are headed for destinations in china, and here at germany's leading cargo airport in frankfort space is running out, for instance, for pharmaceutical goods or machine parts. before russia's invasion of ukraine, 20 cargo plains from russia were lending here every week. but now they are gone and that's a total of 2000 tons of cargo. that needs to be flown in and out. some prices for air freight have now quadrupled and logistics expert, t mosh tor says that's just the beginning. the army over him in him, and we're also experiencing a big jump in energy prices, especially crude oil reaching record level. and that of course means that
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transportation costs become more expensive. toya and that's something stephan. how meyer is also seeing his logistics company has around $250.00 workers. it competes with global giants, such as d h l, that he has a fact. and with, even if i book freight today, it doesn't mean freight space becomes immediately available. a lot of shifting, it's sometimes a bit like a bizarre, where prices are negotiated and frame spaces, renegotiated with the airlines on an ad hoc basis from day to day. often when i talk from talk to talk know, founded the problem doesn't, and they're trucking companies are also affected. many ukrainian drivers have joined the army and that makes some european freight forwarders, unavailable, and routes between western europe and asia that go through russia cannot be used for transporting goods due to the war that through continent traditional
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extreme shipping costs are really high often. and there's also very little capacity when you come to on top of that, there's the fact that no goods can be moved by the trans siberian railway line would kind of that's because it goes through russian territory. what is to be fuel? folk goods are set to become very expensive. the few freight planes that can transport goods without any restrictions are forced to go around russian aerospace, when they fly between asia and europe. saga miss amazing. the plains have to fly considerably longer roots over there and they need more fuel to do. so that means that logistics companies need to pay more in transportation, cause it, and then pass onto their customers. at the end, prices on supermarket shells will go up and it also means goods deliveries could become less reliable. right now. cooking oil and electronics from asia are no
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longer readily available in some supermarkets, empty shelves could increasingly become common in western europe. i'm infantile, and thanks for watching you again to ah, ah ah, with ah, to the point,
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strong opinions, clear positions, international perspective, rushes army is pressing its attack on k of and other ukrainian cities showing targets that include civilian buildings to fund the tactics, looked familiar like a page from russia's playbook in syria just put in was total devastation for the to the point. 90 minutes on d w. ah, what people have to say matters to us. i am. that's why we listen to their stories. reporter every weekend on d. w. they've had it for, for decades. the people of iraq country
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is devastated and there's no end to the fight. how did it come to this community? key witnesses reveal? president story. they were pretty good. the you, they knew what the consequence these sanctions are. they blight to the world about seeing men naked with someone could kill his friends and as a c, it's always and he was a good he behaved exactly like to have done. and the poison spread their own. ah, much my as in the great documentary series destruction of a nation this week on d. w ah,
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ah, this is a w news line from berlin, ukrainian officials, a report. the 1st survivors have emerged from a bombed fare to enmity. paul, with sheltering hundreds of civilians and the number of casualties is not you crying accuse is russian forced of targeting the building despite the russian word for children being painted on the ground? also on the program, nato secretary general against dalton, burke says the alliance is determined to stop the war from escalating these in been info talks with chancellor sholtes also meet with germany. foreign minister.

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