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tv   Counting the Cost  Al Jazeera  April 16, 2022 12:30pm-1:01pm AST

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tires to focus on longer term savings. the ship costs are mass, we less than buying a internal combustion or ice car. you don't have any oil changes. your maintenance costs are inherently going to be lower. take a closer look around the auto show and there are signs of promise, but also signs that weaning americans off their gas guzzling cars and trucks may have a little way to go. but how do i get it in gabriel's gondo? j as in york? ah. so this is out there are, these are the top stories and police in ukraine, say the bodies of hundreds of civilians have been found in areas surrounding the capital. the discovery comes off, the russian forces withdrew more than $350.00 corpses were also discovered in future. charles stratford has more not from cave. more than 900 bodies discovered in what sorts you say are approximately
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a 180 different sites mainly around the capital city and saying that the majority of those killed that seemed to have evidence of being shot at close range . now we know that obviously the ukrainian government is pushing for russia to be tried for legit war crimes in serbia, thousands of protest as of rallied in support of russia's invasion of ukraine. they oppose the serbian government vote to remove russia from the you and human rights council. many subs are skeptical of data and believe the west provoked moscow into attacking ukraine. rescue teams in the philippines is searching for people missing . after tropical storm making struck the islands. more than a 160 people have been killed at least 110, missing more rain as 40 in south africa, where rescue is still searching for survivors after the worst flooding in 6 decades . authorities have released emergency funds to help tens of thousands left without
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shelter heavy rains in bolivia, her force more than 250 families from their homes, the river and paid on best its banks, flooding roads, homes and businesses. some residents returned to their homes to salvage what they could from that belonging. as senior us politician has worn china must pay a price for supporting russians. invasion of ukraine. senator lindsey graham made the comments in taiwan during meeting with president sy in when a graham said neither taiwan nor the u. s. once conflict with china, the claims the island as his territory. twitter has adopted a so called a poison pill plan to fight an attempt by billionaire. learn much to take it over. the board says if mosque requires more than 15 percent of the firm stock, it will flood the market with shares. that would make a buyout. a lot more difficult yet. so the headlines, the use continues here and 0 after we visit to counting the cost the race to succeed. those 3 go, the guards as president of the philippines is heading into its final stretch,
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struggling what it's worth it, 7 years the country is desperate for a solution. but what are the candidates offering and what direction will the philippines stay under the leadership special coverage on our 0? ah, hello, i'm getting opposite to counting the cost on al jazeera, your weekly look at the world of business and economics this week. and inflation nightmare returns to hong latin america once again. central banks throughout the continents have increased interest rates sharply to chain prices, but are the financial measures working. also this week struggling with a full blown financial meltdown. lebanon reaches a preliminary deal with the international monetary fund,
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but are politicians ready to implement economic reform. and west africa is facing the worst food crisis in a decade. that's why, more than a quarter of africa, the population is facing hunger. so what can be done to feed the continents vulnerable people use so inflation and dipping into people's pockets almost everywhere, but latin americans are among those most severely heads. central banks throughout the continent were quick to take action, implementing aggressive interest rate increases, but the measures have done little to bring down the cost of living. if anything, consumer prices, sword, and many nations last month, the situation could get worse as the war and ukraine drives the prices of commodities up. well, the surgeon, fuel and fuel prices the sparking discontent among many latin americans. thousands peruvians have taken to the streets to protest the rising cost of living. inflation
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hit its highest level in a quarter for century in peru, and the central bank has raised interest rates to a 13 year high to take the prices. the president petrocca ceo was facing calls to resign, has cut fuel taxes and increase the minimum wage in an attempt to calm the protesters . the prices are not only going up in peru, inflation has surpassed expectations right across different latin american countries in march. take a look at chili's consumer prices which posted the biggest monthly gain and almost 3 decades as bread served by around 6 percent. and energy rose by just under 3 percent. brazil is monthly inflation sort the most since 2003 as gasoline skyrocketed by almost 7 percent. the annual figure had a 20 year high in mexico, driven mainly by cooking gas and gasoline prices. and argentina, consumer prices have risen by more than 6 percent. the highest level into decades, inflation is expected to hit 60 percent by the end of the year. that while the
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region's economy is expected to grow by less than 2.4 percent this year, down from a 6.8 percent expansion in 2021. but the continent is a major global producer of commodities at a time the world faces supply crunches. sheila is the world's leading producer of copper, who's price hit an old time high in march, while brazil in columbia are among the regions biggest exporters of crude oil. well, to discuss the inflation challenge and latin america, i'm joined now by carlos desousa. carlos is the director for emerging market debt portfolio manager and vanderbilt asset management. he's joining us from 0. welcome to the program, carlos desousa. so as we've been reporting, inflation forecasts and latin america are worse than expected in many countries. they're reaching levels that they haven't reached in decades in countries like brazil, for example. tell us why that is. and are there specific reasons? inflation specific reasons to latin america. thank you for having me. yes,
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inflation in several countries is quite high, multi year high level phenomenon or franklin. so there are not that many particular reasons why inflation is high enough in america. and in fact nothing. america is very similar levels than in the rest of the world. brazil is perhaps one exception, where you have inflation at the moment, 11.3 percent, which is higher than in the united states and in the rest of latin america as well . for brazil in particular, i would say that the fiscal stimulus, the brazil, imposed in $22200.00 demick, was larger than the majority of the latin american countries. and in the emerging markets, it was more comparable to the fiscal stimulus of the united states. and i also have to say that the congress related restrictions in brazil where much less stringent than the rest of the world. so brazil actually started recovering faster and that's why inflation also came earlier in brazil. and the last reason,
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the weakness of the brazilian bri out doing the last 2 years. however, what i have to say that brazil also was the 1st country to start hiking rates very aggressively, and is the only country where real interest rates. so interest rates minus inflation are actually process. so brazil ready to interest rates to 11.75 percent . and the brazilian reality has been recovering quite strongly this year. so what you're saying is the governments have taken, including brazil, other countries in the content and took that measure to implement interest rate hikes. that measure hasn't been working to tackle inflation, hiking, rates, things time to, to tackle the inflation. because what a central banks can influence via interest rates is aggregate demand. that usually takes some 6 months to take effect. so i would not say that is not working. i would just say that central bank have to be patient. they have to migrate,
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and then maybe 6 months later, you will see inflation slowing down more or central banks control or influence aggregate demand. they don't influence supply. and we are now in the world. seeing a lot of supply stops, we've seen much higher commodity prices. we're seeing that global trade and has a lot of disruption. there's nothing sometimes can do about that. and that's not particularly america, that's the global phenomena, right. and that is of course, down to the ukraine war, but do you expect more price increases, especially as the war and you create a driving commodity prices up prices will continue to increase because inflation is quite high and inflation is not going to drop to 0 tomorrow. therefore, we prices will have to continue increasing, but that's different than inflation accelerating much more than today. so if you frame the question asked, do i expect inflation to accelerate much more? perhaps only a little bit, not very much more. you expect prices to continue increasing?
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yes, absolutely. ok. got, let's look at, for example, president castillo, who announced tax cuts an increase minimum wage. do you think that has helped the situation in this country and what other measures should governments to talk take on to tackle this problem in your opinion? i don't think that's going to make a big difference, to be honest. what the governments can do today is number one, let the banks do their job, which so far they're doing. so be patient on that sense and what they should do, perhaps a bit more is to increase transfers of direct cash transfer as do the poor, so that they are not as effective. for example, a week ago there were, this brought us in peru and the professors were saying that information was high. so that was one of the main reasons that products, but insulation and it's actually the lowest in america is about 6.2 percent, which is low, much lower than in the united states and much lower than the euro zone. and most
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countries, quite frankly. so it's not so much the people were protested because inflation high, but because they are very poor now cannot afford their usual founder of living and can be tackled by government by transferring money, specifically to the very good people that are the most. okay, and just put a sort of all into context for us and inflation. obviously, the fact is, but it is increasing in countries in latin america, economic growth expected to slow down or it has been slowing down up until this point. what does this mean for, for a latin american economy is going forward? so again, that's also level phenomena. we see growth slowing down as a global level. the same as we see inflation accelerating at a global level. so i would not say this is particular of latin america. in fact, because commodity prices are so high and many american countries are, might be exporters. they are actually better position to recover from,
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from the currency circus. and hi, commodity prices is likely to increase medium term growth in a lot of that, that's an american economy. so i was confused by saying that in the middle term, this to be rather than you bought it for growth. and more importantly that because central banks in america have been hiking, raise much more aggressively and much earlier than the rest of the world. even though electron marika, we see quite a lot of translation right now. it may be the region that and so controlling inflation much earlier than the rest of the world. ok, we'll leave it there. thank you so much. carlos, this is a for joining us from zurich. thank you. i and inflation to sorts of triple digits in lebanon. the currency last, almost 90 percent of the value that's more than 3 quarters of lebanon's population are now poor. and the lebanese government is running out of cash to buy wheat medicine and fuel level on economic meltdown is one of the world's worse than 150
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years. the government says it's in desperate need for financial help to get out of the crisis. it's finally reached a preliminary funding deal with the international monetary funds, but the full approval of the $3000000000.00 us dollar loan over 46 months comes with a caveats. the lebanese government has to implement a series of financial reforms. they include an audits of the central bank restructuring, the countries collapse, banking sectors, improving transparency mechanisms, and unifying multiple exchange rates to the spiraling lebanese pounds. now, if approved, the program would help unlock further. for an age, lebanese banks are estimated to have lost almost $69000000000.00 us dollars and have imposed informal capital controls. safer is deprived of access to their deposits are being offered checks worth a fraction of their savings. many customers have accused the banks of shifting their losses to depositors, and they've taken legal action to recover their money. then the reports from bay
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roots, more than $100000000000.00 remained stuck in lebanon's banks since 2019, when the financial system collapsed. depositors had been facing limits on withdrawals at unfavorable exchange rates. now, some banks are closing accounts of mainly british passport holders. after a u. k. court ordered a lebanese bank to give a depositor his money. depositors say they are offered a check for the balance, but they are worth less than 20 percent of their value. manager of the bank told me that i can take my check at the notary is and wander around and see who can accept or bankers check bank say they are short of cash and fear. if depositors continue winning legal challenges, they will have to declare bankruptcy. they say the answer is for the political authorities to pass
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a law that would regulate. ready outflow of foreign currency banks have been accused of helping to politically connected transfer their money abroad. many of them are shareholders in lebanon's largest banks. critics call the financial system a ponzi scheme for decades, banks lent to the state that high interest rates, while successive governments largely plundered funds and piled up debts until capital inflows slowed and the economy collapsed. and experts believe much of the money is now gone. with people locked out of their savings as they struggle with high inflation and poverty. so there are many challenges in order to get the money back. we cannot just get it back by doing individual lawsuit. and also we have to see a restructuring of the banking sector and the public that and this is what's not happening . those in power have so far failed to reform a system that they long benefited from them to shift the losses to the people who
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withdraw their money at around 30 percent of its value. already depositors have lost billions of dollars. joining me now from a route and see what you see is the chief economist and head of the economic part research and analysis department at b plus a bank group. thank you so much for joining us on the program, sir. so for this deal to become final, lebanon has to implement a series of reforms. do you think these reforms are achievable, considering the state of the lebanese economy and what are the challenges going forward? and i am very explicit. it statement about the actions that many authorities need to take for the agreement to be approved and become, find them by diana executive board, southern prior actions have to do with the banking system. the central bank of london and commercial buys, such as approving a strategy for restructuring of the banking sector, modifying the banking secrecy, lo, unifying the exchange rates, the multiple exchange rates, volume,
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and passing capital control measures. and i think a banking it is, or you can just lation. so these are all challenging, challenging points and measures. but really we do not have a choice. if you want to get out of the crisis. i do not believe that is any other alternative than continuing with the have and, and implementing the forms according to this agreement with the i am. so now the responsibility is to prove that they are serious in this agreement by implementing the prior actions. diana did not put the table for the implementation, knowing that we are close to the body. i meant that the elections are may 15th, we're getting close to that and we have president elections in october. so the
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argument actually, right. do you think the politicians will at least feel the pressure somewhat? because as you're saying time is not on the side of the lebanese and, and we do have these parliamentary elections in may. definitely not on the side of the dilemma, any of the economy or the private sector positions have to feel the pressure given the living conditions in the countries, the contraction of the economy and the very vocal population. so maybe right now it's not an idea of buying these reforms all together, but we can start with the things that are already on track, like the argument impacting the budget for 2022 that they've already in parliament already have been completed and for the government will start working on the nation and then forward it to parliament after the election. you are right under pressure in terms of time and in terms of delivery. but that is, that is,
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i don't put trinity there to start the process. how will the banks respond to this? because as you were pointing out just a few moments ago, some of the rules that the i m. s. has have put forward or stated that needs to go ahead, including a central bank audit, reforming the secrecy long as you were pointing out, the evaluation of the countries major banks. these could be sticking points, and particularly for the banks themselves, will they, will the banks actually comply? well, the banks have been calling, i'm calling for a deed with the i am at the beginning of the crisis in october of 2019 and patient banks in lebanon. if basement was coming to agreement with authorities urging to implement the banking sector, what is corporate and comply with the requirements of the players action, including as you mention the external audit of the largest 14 banks in the country
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. it is in the best interests of the banking sector to facilitate as much as it can do for measures. and the banking sector has been calling since the crisis putting method for mission capital control measures that until now have not been implemented. so definitely in the interest of the banking sector to proceed with all these reform for them not to be limited to the banking sector. right. is other thing that needs to be implemented afterwards, like that is structured in the public sector fighting evasion. what i want to ask you about my final question, in fact, because you know, there is deep rooted corruption and financial mismanagement in lebanon. as we all know, this is going to be a major, a challenge to tackle. going ahead as a not how do you see that playing out? well, there is also a lot of skepticism in lebanon by the private sector, by society organization, by the ordinary lebanese,
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because we have been through national support and international conferences. where do i need to have the form in exchange for financial support and nothing? so now the sponsibility is on the political class on the government, on the branch to demonstrate that there are serious in this thing that i use economy over current crisis to the port trinity of that, the deal with the ok. and finally, let me ask you, i mean it's, it's really the lebanese people that have been feeling the brunt of this economic crisis for several years now. is this rescue plan going to bring more relief or more pain to them? that's a good question. many people think that, you know, that perception is that the, the, i am, i mean a lot of pain, but we have been suffering for 2 and a half years already from multiple exchange rates from high inflation rates and shortages of whether it be in the market i'm sure some of the form of the i agree
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with you already on the mentoring, if they are fully implemented, wouldn't be founded by the lebanese. but for the medium, i know that are positive outcomes for, for the nice people and it's up to him and he's already the government to communicate with the new people on the, on the importance of implementing the, the forms and their outcome in the medium and long term ok, thank you so much, no staple, but for speaking to us from the roots. thank you. more than 346000000 people are going hungry across africa, but the situation is particularly a leak in the continents west and that's a whole region. that's where millions of people face the worst food crisis. in a decades, the one has described the emergency as her renders. and as warned resources to support the most vulnerable art, rock bottom, the world food program says the number of hungry people across west africa and this
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a hell has quadruple to 41000000 between 20192022 n g o are calling on the international community to provide at least 4000000000 dollars sought by the u. n. for the region. international donors including the you have pledged almost $2000000000.00 to help ease hunger in this a hell and late chad region. or part of the problem is linked to high food prices, which have increased by up to 30 percent over the past 5 years in west africa. they're expected to go much higher nutrition. reserves are already decreasing in this a hell. and the war in ukraine could cause a significant reduction in wheat stocks. 6 west african countries import at least 30 percent of the grain from russia and ukraine. from senegal, capital to car, i'm joined now by my do job. he's the regional representative of action against hunger organization for west and central africa. welcome to the program. i'm a dude yoke. so we're reporting about the food insecurity, right across the continent. but why is the situation particularly bad in west
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africa in the sahara region? we should say it out and we'd all cetera better. we're some the situation in derision and tory in science. we have climate shots, we choose creating a prostitute resources causing formulation disbursement and added pressure on already limited resources, dis combat of the lago rental which results into that for gas shuttle. sir. originally inspire genuine, it easy to convince and to really comfort most of the time before me hold, i really use cetera. east albany to colorado, jeez. in addition, we would say that an attache. derision faces multiple epidemics each hair. so given matching was just one more on the already headed murder into sales and is watching this pressure on the population often leads to long gum and difficulties
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in accessing by link social services when they are already limited. which plays more. busy which place many people can sit in millions of food volume footage, shuttle insecurity every year. ok, let's break down some of the reasons that you gave and, and 1st look at the issue of food prices. so, are part of the problem. how much worse could the situation get because of the war in ukraine as we know, some west african countries in port, at least up to 50 percent of their wheat from both ukraine and russia? yes, but we should say that the situation is already more a critical because for the prices are already very high. and for some countries that in one of their ways from a reshowing. busy can yes, we already starting to see an increase in the price. all right. busy and so we produce the recurring and crisis has come to shut relations already in agony. we should say that however, it shouldn't be, not that a trend of
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a price increase was up. so can say before the beginning of the union credits, this inflation our trend at the global level house called the increase in food prices in decider. born in boston and look at the porters scene. best countries traded relatively little ways you credit on your show. busy except some countries like marine diocesan ego. i've been the inference and better for we should say neither do an increase on the food prices. ease may be also we can say these additional multiple factors and ready to what sasha, my am and speculation on serial. a major world training price increase. let me ask you about the response to the, to the sahara crisis, because it is one of the worst humanitarian crises,
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yet it's the least funded or one of the least funded. that is, why do you think that is we can say we all, all these costs denise, this is scott santa regarding the multiple projects we have on the wall. but our amended lease. we met an odd to san glass 1st. however, we are dealing with a buyer to zation of the ads for coming from done us. we can say that we, she mean they're, the response plans are not funded and know that we're looking to be funded are suffering from a lot of funding the in going to increase. you can say that increase over price in loses the office about trying means that missouri adapt or response which infinite . unfortunately we've got more when you are you talking about more long term solutions rather than emergency ones?
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what do you mean by re adapting the response that we should we should. ringback do both the credit and science needs ball. we must respond to the modem needs might 7 the last for animal. so we should work. reagan population, a different people talk to central and better services. she bought a home and it used to have them copies, mitchell shucks. and how can i do to minute their image yet? and it's okay. we'll leave it there. thank you so much mama do with your per a joining us from the car. thank you for that's our show for this week. you can get in touch with us by tweeting me. i said mean a g in to use the hashtag a j. see, to see when you do, you can also drop us an e mail counseling the cost that al jazeera dot net is our address. but there's more for you online at al jazeera dot com slash c t. c. that'll take you straight to our page, which has an individual reports, links on entire episodes for you to catch up on. so that's it for this edition of
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counting costs. i'm tending navigator from the whole team. thanks for joining us. the news on al jazeera is next the scars of former yugoslavia civil wars run deep. but for years the balkans have managed to keep a fragile piece. now with ukraine, a light in europe on high alert for russian meddling. the mood is uneasy. people in power travels to pose via with threats to secede by serb leader miller rat. due date of ignited fears. that conflict could return bosnia. testing the piece on out joe's era from the al jazeera london broadcast center, t people, unprompted uninterrupted, the witnessing a much more humane response. what's happened to the ukrainians than what has been meet with out to these non european youth hotline? as i do, is that gonna offer you out to aim if somebody comes to gonna from europe,
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then never call of an immigrant, even if they go through exactly the same processes that we go through to come here . the always known as an ex pat studio, be unscripted on al jazeera. ah, this is al jazeera ah, hello, i'm robot hudson. this is the news are live from doha, coming up with like 60 minutes more than 900 bodies or finding ukraine's key region after russian forces withdraw. but he say victims have been executed devastation in the philippines as landslides triggered by a tropical storm. wipe out homes many a dead on missing a search for survivors in.


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