tv Business Deutsche Welle February 28, 2020 6:15pm-6:31pm CET
edge to war knights awards or looking forward to that i mean s.f. and skull rock spread thanks very much. i don't. know watching think of any news ben has a one off next we do business news and don't forget you can stay up to date on our website at state of any dot com i'm rebecca resist thanks for joining us. and demand. language courses. video and audio. anytime anywhere. in the. climate change. minister.
is today the future. dot com africa mega city. could turn. virus wipes trillions of global financial markets this week. as the number of international cases spiral around exchanges shows no signs of slowing. big fulls on the main stock markets. the virus has. ties with many countries across the continent. and when the going gets tough in. pandemic a financial instrument designed to help low income countries deal with the spread
of a disease. that investors panicking the coronavirus keep spreading around the world and africa hasn't been spared the confidence most populous country nigeria has reported the 1st case in sub-saharan africa in the economic hub of lagos a mega city of 20000000 that used stock markets tank on deepening fears of a pandemic african equities to the lagos stock exchange closing more than 2 percent . in johannesburg fell by 4 and a half percent and kenya's leading index the. 5 and a half percent africa has close business ties with china where the virus is already taking a heavy toll on the economy the 1st case in nigeria is in a region with some of the world's weakest health systems otherwise they'd only been 2 cases on the continent in egypt and algeria. well with the coronavirus already
spreading across parts of europe the federation of german industries says the economy is facing a stress test there is no longer any doubt that economic growth will take a knock the question is just how bad it will be. markets around the world a sinking fast it's the worst week in a decade for global stocks and investors in hong kong on the early ones seeking safer territory in london where some major firms like chevron sent their workers home this week the footsie finished friday 3.4 percent down having been 5 percent under one point elsewhere in europe frankfurt's dax lost more than 4 percent germany's and the world's biggest chemical maker be s.f. put out a gloomy forecast on friday saying it's bracing itself i mean. lower
demands and production outages in many industries are already visible consequences of the measures taken to prevent the further spread of the virus. the adverse effects of the corona virus will have a significant impact worldwide particularly in the 1st and 2nd quarters of this year. as the corona virus continues to spread to more and more countries so it has its negative impact on their economies this is milan in northern italy europe's worst affected area normally busy tourist hot spots are now deserted and restaurants are empty the international monetary fund says it's still getting to grips with how deep the global effects will be with the virus is going to have an impact. on growth. i'm. a lot just depends on. the speed of recovery in the intro you know in other countries the spillover effects. the effects on supply chains with
concern about the economic and health implications of coronavirus growing governments looking for global solutions but experts warn that the world is not prepared for what may be down the road. financial correspondent in frankfurt if we're seeing a crash or a correction. all this began as a correction but investors are increasingly worried that it's going to turn into a longer term crash for the market investors have been really overwhelmed and they say they're shocked this week to receive this constant stream of news suggesting that they're coronavirus could turn into a global pandemic and it could really disrupt the global economy it really is going to determine how much further this this brings down stocks this is going to be the continued spread if we continue to see more cases outside of china during your app in the united states. businesses continue to shut down if we see more supply chain
disruptions if consumers stop spending all of that could really have a severe impact on the global economy could push the world into a global recession some economists are fascinating and if that's the case stocks could certainly fall further one estimate from r.b.c. capital markets says that stocks could fall another 15 percent from these current levels. look at the effects the coronavirus is having on all the say officials have called off the geneva international motor show the biggest of its kind in the world it was shameful to begin next week but this was government has bad gatherings of a 1000 people more. last year a half a 1000000 people attended. british low cost airline easyjet says it's witnessed a significant softening of demand as a result of the virus the drop has primarily on flights in and out of its northern italian bases so far this year easyjet says
a full in more than 20 percent british airways says it's expecting a drop in profits this year due to cancel flights off the back of the coronavirus flights to and from china italy singapore and south korea have been cancelled. and india's economy grew at a slightly quick a pace last quarter gross domestic product expanded by 4.7 percent year on year but analysts warn the coronavirus is likely to mute growth in the current quarter. well a growing spread of the corona virus is sparking the sell off of so-called pandemic bones they are an initiative of the world bank of bones aimed at shifting some of the burden of preparing against the pandemic onto financial markets instead of on low income countries most of risk of a pandemic but as the risk of a rotavirus pandemic grows the potential for a payout on the bonds shrinks and that spot is still. a reporter other sullivan is
following this story for us. this is very very timely or timely i guess you'd have to say author. these holders basically cutting their losses you have and that is basically what happened so as the reporter said there when the world bank brought these funds in 3 years ago there were 2 different tranche of the bonds and the risk here of the 2 is the one that we're talking about now that bond had about 100000000 worth which was sold to investors and those investors have been getting rid of those in the last week absolutely as quickly as they can because their value is essentially worth nothing anymore because they know that the conditions have been met for those bonds to be paid to as you said low income countries so yes in that sense they are cutting their losses not particular tranche the bonds the other less risky tranche that has and those conditions have not yet been met so in that case they're still making some money for the investors so they've made some money there cashing in cutting their losses where does that leave low income countries they're the ones who were hoping for this money in this sort of situation and that's the
big question about these old pandemic bonds and they have courted controversy from the very beginning so if you look at it from the point of view are they working from an investor point of view which is actually the least important concern here but they have worked to an extent lots of investors lots of hedge funds have made some money from these but the most important reason behind these pandemic bonds was to get money to poor countries and all countries really want to especially low income countries in the event of a pandemic and the ultimate proof to show that these don't work is if we look at the original idea can. am from the ebola outbreak in west africa between 20142016 bombs were brought in and yet in 2018 when there was a new outbreak of ebola the conditions were not met in the democratic republic of congo for the money to be paid to that country which is a very low income country which needed the money the reason the conditions weren't met is because the virus at that time the ebola virus did not cross an international border so even though you had more than 2000 deaths from ebola in the congo at the time the conditions for not one penny of this money was meant to be
paid simply cause it hadn't crossed the border despite the size of the country so what are you saying that the pandemic bonds we already knew that the that they work effectively yes and lots of experts in this area said the same thing for years if we look at what they said for example jonas she's a she worked the world bank for 3 years she's now at the harvard global health institute she's extremely critical of them for a long time long before the corona virus outbreak she said in a very interesting article sure for the magazine journal the scientific journal nature a few weeks a few months back
she said this structure of financing has been very good for investors but not good for global health larry summers former u.s. treasury official in the sense of ministration he described them as i think goofball economics or goofball finance you know they've been relatively good for investors not good for developing countries have a solution thank you very much fishing in uganda is becoming less profitable for many communities who depend on this sector to support their families diversifying into coffee farming is helping to provide
a sustainable solution on one of the islands of likely toria. fish stocks are dwindling here in lake victoria it's becoming increasingly evident at the central ugandan landing site called bosomy fishermen here are struggling i don't. know what if this is such a bad time for fishing compared to the past when they used to be fewer fisherman i think it's mainly because the population has gone up so there's more pressure on the lake. paul be a kwanzaa has fished these
waters for over 3 decades but at the same time he had to find alternative sources of income. his 10 acre coffee farm provided the much needed relief. you want right now it would be good if every fisherman does farming on the side because that's the way one can survive hard times. entirely depending on fishing can be stressful especially now when there's
so little fish to catch and sell now many of the islanders seem to agree fishermen are trading their boats for baskets and collecting coffee beans. a boost for coffee production that also gives the overfished lick a well earned break. well. you know what you need if someone has a farm like mine in one way or the other it can contribute to the restoration of the fish stocks in the lake because fisherman will not be desperately relying on the lake to earn a living or get money to educate their children. with export earnings exceeding 400000000 annually coffee is vital to uganda economy. fishing is vital to. it provides ugandans with more than half
a 1000000 jobs but working both sectors helps many people like be a quasi to earn enough to support themselves. and just briefly in fox woden's long running diesel gate scandal the german car maker has struck a compensation deal with domestic consumer groups representing diesel lotus. by a total of $830000000.00 euros in damages to some 260000 drivers the offer amounts about 15 percent of the original purchase price of their vehicles b w outfit of the cars with software that manipulated emissions ratings lies during business of.
were colluding. for decent life. going to go longer supplies will last forever but they won't. when the rainy stuff starts march 20th on w. . this year's africa coming up on the program purnell virus is in sub-saharan africa nigeria on sam the french case on authorities are racing against time to track down all those who weigh in contact with infected not just also coming out. this is the knees of mothers a tireless set for the at children who disappeared in the tween to 19 revolution. plus. conason technology to make it simple lots of people school lunch in k. .