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tv   Business - News  Deutsche Welle  August 25, 2018 3:02am-3:16am CEST

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who's in charge at the fed these days powell all the president raising rates is the issue in jerome powell says he'll fight them if need be. and the e.u. is also feeling a little uneasy about all the chinese money used to prop up portugal. this is your business update on how to humphrey in berlin thanks for joining me a tussle full control of the u.s. federal reserve jerome powell is in charge but donald trump hasn't kept quiet as most presidents would about his disdain for interest rate rises but powell isn't taking it lying down that's an annual gathering of central bankers in jackson hole wyoming the fed chief signaled that he expects to continue raising interest rates if the american economy remains robust powell also said that the fed needs to balance maximizing employment with keeping prices stable. so let's bring in our financial correspondent at the new york stock exchange jose jose luis
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the arrow has a it seems that powell is resisting pressure at the moment can we then take it more hikes all coming. absolutely helen and investors thing two more will happen before the year ends probably the most immediate one will come next and the specially after polls as beach on friday bought a sixty eight percent of the market also sees an additional twenty five basis points increase by december contrary to president desires as a fisherman of the fed said in jackson hole what all hikes implemented so far contributed to their current as stability where there are no signs so far of overheating neither of inflation overshooting that said monetary policy is tricky i'm making money more expensive to past could be real the longest economic cycle in history one of the longest economic cycles in history and by not acting not all or not soon enough you increase the risk taking and the creation of bombers we're
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talking about economic cycles what about the bull run that we've been seeing because despite trump's legal woes despite fresh terrorists the markets the still rallying at what is pushing them as the uk which has a. first that the gradual pacing hikes mentioned by paul which means the fed will not surprise investors in the near term also if you know mentals we have a strong economy with nearly full employment and quarterly earnings are growing over twenty percent which has made investors truly happy and even trade tensions between the u.s. and china continue it seems that we could see an agreement on nafta soon enough and wall street has become somehow immune to trump's latest scandals about the question here is if this situation is sustainable fiscal stimulus from tax cuts will fade next year growth will slow down and earnings are expected to grow into single digits a situation that could take a toll in market sentiment right how long will that i mean it continue our
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financial correspondent on wall street was in his saddle great to have your thoughts. chinese investors have been at active in portugal in recent years that it's acquiring a stake in the economy and also against political influence in the european union is watching the development with mixed feelings. the rodeo likes this asian touch in lisbon he looks after chinese investors in portugal. the chinese have helped a lot because they've brought important revenue streams into the country which of the national debt problem portugal was able to pay its debts straight off. after years of stagnation the financial crisis had meant unemployment poverty and austerity portugal's ten million citizens were kept solvent by the european stability mechanism but the country was forced to privatized state owned companies . then china came along on a shopping spree many chinese state owned companies bought into portuguese
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insurance companies banks real estate and in directly even into media as well. also into portugal's profitable state owned energy company and portugal e.d.p. . china's three gorges bought up twenty percent of it seven years ago now it wants to buy it up completely it's offering nine billion euros for the d.p. . the chinese government is behind what are ostensibly business deals does that make portugal vulnerable to political blackmail. the way we're already dependent but we've also got brazilians angolans other european countries here and not just china china found a welcoming climate in portugal. portugal was in my car for a long time so there was always a traditional connection and the biggest investments came during the crisis they were really important for us.
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in the potential problem and is working on transparency regulations for certain foreign investments applied to the e.d.p. bid they would function like this portugal first screens the chinese companies offer. parallel to that lisbon informs the e.u. commission in brussels along with the other member states they then screen the chinese bid themselves and give their feedback portugal then has the final decision on whether the deal goes ahead or not. bidding for e.d.p. is still under way and it's still not clear how tight the new iraqi elations will be some countries want a minimum of outside interference including portugal hungary and greece. china now seems to have its own presence at the negotiating table along with the government heads of the european union. there are around two thousand chinese companies doing business in africa well materials are the main focus and africa's
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a huge market the chinese products are creating the necessary infrastructure to mine resources also the ideal supply to sell to customers but the africans doing all the hard work so they're not being treated right. cruising through kenya at one hundred twenty kilometers an hour the new rail line between the port of mombasa and the capital nairobi went into service just about a year ago it took twenty five thousand kenyan workers some three years to build the initiative and finance behind the whole operation a chinese construction company local construction workers are working for chinese companies throughout africa but unions are becoming increasingly critical of the working conditions. a large number of africans working for chinese companies have no legal contract. we g.'s are usually below the legal minimum and increasing number of workers complain about racial discrimination. kenyan rail
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workers are lucky the line is being extended from nairobi on to the ugandan border their union was able to fight for clear regulations working hours wages and holidays are all now written into their work contracts but work regulations for entire sectors or regions are still a distant prospect only very few african workers are as of yet organized in unions . and i want to bring in our correspondents on the africa desk daniel now daniel you spoke to anita all the workers union in ted you which took on a chinese construction company and successfully negotiated better conditions what was his experience how hard was it well joe much already other union leader that i talked to said negotiating such a deal with a chinese company was the hardest thing he had ever done in his law if and i think it speaks for itself when you have an experienced union leader talking that way he
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said it was clear from the beginning that the monitors off the chinese company didn't have any experience negotiating with the unions and first kind of had to understand why the shots that they said down and negotiate with the. union leaders about such issues as payment holidays so the hardest thing he's ever done in his life these can be clearly david and goliath battles small unions against large multinationals do you think the success in kenya has emboldened other unions to stand up for their rights or yes i think it has i mean so far there are about eighty agreements in place across africa i mean that is a little more than than than the famous drop in the ocean but nevertheless i think for many unions that is quite a starting point as you said it often is a david versus goliath battle and unions often felt powerless they felt they simply were not strong enough to negotiate with multinational companies like these and i
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think these these agreements have have shown them and they're actually able to do something so you're fed eighty agreements a starting points in this case which were referring to you were talking about east africa is that bolder approach or means the same across the continent you know unfortunately it is not it really depends what country you're looking at the problem is in or through tarion countries in africa unions do not have enough breathing space to start challenging chinese companies and to start or negotiating with them and in the poorest countries it's also very difficult because unions need resources so that they can engage the companies for example of any money so that they can hire qualified negotiators who for instance have a background in labor law but the problem is in the poor countries few people can afford to pay a membership fees for unions and therefore the union simply do not have the resources that they would need done you one last question briefly if you wouldn't
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mind i'm wondering all chinese companies becoming increasingly aware of the possibility of reputational damage. here i think they are mean some years back many people in africa well comfort chinese companies with open arms and that has changed especially because criticism about working conditions and chinese companies has grown and i think chinese companies are increasingly becoming aware of that. daniel for us thank you very much looking into this. and finally this is great polished in france will be twenty five percent bigger than last year as a drought wreaks havoc on wheat and maize the grape vine roots reach down many metas where the still moisture in the soil france is the second largest wine producer in the world off to italy some forty six million active users will be produced this year i know how to fill nearly two thousand a linux or swimming pools something. that's
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the latest from the world of business for more head to our website. business have a great weight great weekend and thank you company.
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houser view of the loans and where i come from not always that good to cisco just like with chinese foods doesn't matter where i am i suppose which reminds me of home after decades of living in germany chinese food is one of the things i miss the most but that made me that bad i see things i need to differentiate knowledge benefits of first as integration the fact that it exists as a part of the almost haven't been ever mentioned in china catch me if i'm not a chinese people wondering if they're going to say that but if you have a ride to another woman's rally it is this is their job just that of them on how i see it and that's why i've been up my job because i tried to do it exactly an hour a day in my name of the uninsured and i wore them added up new.
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barely feel. the scars on. the pain still tangible. the suffering for god. for cities edge but. they have survived but do they also have a future. i really understand people who say they don't want to stay here. but i also admire people who want to stay here and who decided to create something . in peace time what needs to happen if tolerance and reconciliation are to stand a chance out of darkness for cities after more start september second on g.w. . after.


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