tv Business Deutsche Welle December 5, 2019 7:30am-7:46am CET
the start of neo liberalism. the 2nd is explained the chance that threatens the old order. could be the end of communism. lite crisis and. the start of an era that defines our markets today. 970000000. created. starts december 23rd w. how much is saudi aramco. as the world's most profitable company goes public expectations of raising $100000000000.00 slashed a quarter of that seems more realistic now. drone week i'm saddam the industry
shows off its latest innovations tries to stave off stricter regulation over the increasing security. business. saudi arabia state oil company iran co is preparing to go public and today we're likely to find out just how much it is really worth last month eyebrows were raised after an announcement that the company would only be floating on the reality stock exchange and not in london or new york so as we await that valuation that's going to quick overview of the world's most profitable company often described as the kingdom's crown jewels last year run co produced some $11000000.00 barrels of oil per day more than 2 thirds of that was exported to asia about 14 percent of it to the united states the upcoming i.p.o. has generated a lot of excitement but it's affected not to make quite as much cash as the kingdom
had originally hoped a recent drone attack on a run co facility and investors increasing focus on renewable energy has left many analysts skeptical today the shares will float on the riyadh stock exchange. saudi arabia would be nothing without saudi aramco the oil giant posted net profits of $111000000000.00 euros last year the cascade of cash doesn't only go to financing the saudi state it also finances a lot of perks for the general public petrelis dirt cheap healthcare and education are both free for saudi citizens and no one pays income tax deal concealed beneath the saudi arabian desert is almost been pumping itself out of the ground for 80 years though drilling costs have made around co the most valuable and most profitable company in the world and it's the biggest 12 percent of the world's oil comes from our own clothes taps. but the apparent risks are equally as imposing no
one knows with any certainty exactly how the company is structured and run that's one reason why major international investors decided to pass on the i.p.o. around because shares are only listed on the riyadh stock exchange and there are questions about how large it cited reserves really are not to mention the uncertainty around oil prices but those risks were also the rationale behind the decision to go public crown prince mohammed bin salman wants to reduce his country's reliance on oil revenues from around here will be used to accelerate the saudi pivot towards the tourist industry and to ramp up development of renewable energy. is the head of strategy and markets that for a moment joins us now from london jamil why is iran going public and why now. and one would diversification in a single phase there 2030 vision that's being unveiled from the saudi prince there's
a lot of reasons why it's to go public now for 2030 the vision is that saudi arabia the perception will be so different to what you have it now you think of saudi arabia today and mum would you say oil 2030 vision a wide open economy lots of foreign direct investments to emerge as a major kingdom as a city in the way that the buy has but there's a lot from the around co i.p.o. then dresses were like despite only one percent of the show has been available its net income was over one $110000000000.00 slush that's double the most profitable listed company in the ward which is apple if you take the 5 biggest old companies in the world around co's profitability is more than 5 of them combined so there's a lot from the rim cry p.o. that investors would like but this is one of the small but many steps that will be taken when it comes to reforms and open up the saudi arabian financial markets towards the 25 the vision. if you look at the if you take a long term view if you look at saudi arabia 20 years from now how important will
the oil industry be still in saudi arabia by then. well today ojo actually represents 80 percent of budget revenues but dram cry p.o. is seen as any revenue and profit that's made from this money is going to be reinvested back into war saudi arabia so essentially the steps that are taken so they rebuild saudi arabia's future so there is an economy and a market that you do not think about of oil you will think about as a business of you'll think about as a financial hub you think as a possible tourist destination there is great time bishan for saudi arabia such as they stepped to actually help utilize those ambitions but it's actually a small step but when you look back on this a few years from now it should actually be i symbolic and a giant leap towards saudi arabia actually achieving its goes so this i.p.o. clearly is part of the strategy of moving the saudi economy away from oil but how realistic is that i mean you mention tourism but it will not be able to replace the
gigantic revenues from oil will it. it would take a long time you've seen so many oil reliance economies specifically since the spectacular price downfall in all of 20142015 actually reshaping their economies visit to take a long time that's why we say the steps taken today with the i am carpio the money to even see the benefits from this in terms of what it's really going to do to the average person on the street towards the landscape of saudi arabia and to a couple of years from now but it's it's baby steps but it should be a leap realistically oil still represents up to 80 percent of budget revenuers it still represents up to 40 percent of saudi arabia's g.d.p. so it will take some time to rebalance this but it should help in a way that dubai is no longer seen as just an oil emirates as you said this is major tourist attraction is seen as major financial hub and saudi arabia also wants
to have that kind of perception as well to me thank you very much for that analysis . and now to some of the other global business stories making headlines today the driverless car technology race is heating up in california a chinese auto x. by economist john ali baba applied to test driving vehicles with all that in car back up driver in the u.s. state this makes the 1st challenge it to google's autonomous driving. instagram's says new users now have to provide that birthday so far they only had to say they are at least 13 years old the move could stave off child safety legislation lawmakers and family groups in the u.s. britain and elsewhere say the app exposes children to inappropriate material. south african airways is to receive a $274000000.00 lifeline it's part of
a government plan to prevent the company from collapsing it includes while the government is calling a radical restaurant restructuring process last month the strike force the airline to counsel hundreds of flights. to deal with french club. to show visit rwanda logo on. how much roundup paid for the 3 year deal was not disclosed in english clubs are already of a similar agreement with the government or. easy. to form small a nimble too large and powerful there are multiple uses for drones unfortunately not all of them are safe just this summer drone got to ask close as 20 metres to landing on planet london step by gaveled. drone week the industry needs to show off
the latest innovations and discuss how to tackle security issues. the science fiction feeling continues as drones explore new areas even underground this inspection drone feels at home in our city's sewage pipes for example detected by a carbon fiber cage the majority of applications lies in the open sky however this drone as built to drop 8 boxes in hard to reach areas like the himalayas without putting a pilot in danger but commercial drones are now pushing into our cities research company gartner expect over a half 1000000 commercial drones that work globally in 2020 a rise of 50 percent we are busy with fire fighting so if you have a big fire and you have a drone and you can see what happens and you can be much more effective in fighting this fire the other field for example is when it comes to eventing you have to control my sis of people and then it comes in very handy if you have
a drone safety is the number one topic at drone week provided by drones but also safety from drones this radar detects approaching drones near airports hoping to prevent collisions with planes what we are missing mostly is the space which is the navigation system that will allow drones to operate in complex environments and also several draws to operate in the same a bit of air space we need to have a a digital system that allows them to talk to each other avoid them colliding many cities have pretty much banned citizens from using drones because they are only just figuring out how to make unmanned flying vehicles work in the urban environment. taking off with this right now in an urban area would be breaking the law but next year as the e.u. introduces a pilot licenses that may change because a license does come with certain rights and they may also mean more rights for private citizens to use the airspace. france is facing a nationwide strike on thursday that could last several days unions are protesting
against president. retirement pension reforms 90 percent of today's high speed train services council most of the paris metro will be shut down the majority of schools will remain closed hospitals will also be affected hundreds of flights and hotel bookings are being canceled the strikers have been getting ready to hold protest marches 6000 police will be on duty in paris amid fears the so-called yellow vest movement could try to incite violence. as mounted the 2nd legal challenge over its treatment in the u.s. the chinese company says a decision to bob american phone carriers from using government money to buy its equipment is unconstitutional the ruling by the u.s.
federal communications commission was part of government efforts to limit wall ways market access the company accuses the f.c.c. of failing to quote very far the facts before labeling it a national security threat. american america's food and drug administration insists it was right to issue warnings about certain cosmetic products by johnson and johnson in october the products including baby powder that tested positive for his best us test by johnson johnson we're currently negative but the f.d.a. says it's best those 5 are not evenly dispersed throughout. the city. that's a business of more business check out our website. and
a power grab actually everything was precisely planned instruction. featuring a top supporting role. to the freedom of russia. and featuring a lead role like you've never seen before. the mere fact of marriage to the ends justify the means. to tim's witnesses starts december 13th w. . classical hans a cold music mixed with techno brought to us by d.j. mock rhomboid we'll have more on him later in the show. hello welcome to news from the world of arts and culture also coming up today. our
europe correspondent gaoled masses continues his quest to break bread from every e.u. member country today he's making rumanian bread. bots we begin with winners of the town a prize the highest accolade for contemporary artists in britain it's named after the country's greatest landscape painter jam. and is awarded election process no problem this year as for the 1st time all 4 nominees preempted the jury's decision the artists wanted to use the location of the turn a prize to make a strong statement of community and solidarity and have themselves into a collective. and the jury unanimously agreed to the new.