tv Business - News Deutsche Welle March 18, 2021 7:15am-7:31am CET
you're watching d.w. news from berlin coming up next it's business as my colleague. of course it always always the latest there's new information on our website at g.w. dot com i'm terry marshall thanks for watching. there was always a softball we can leave monsoon 1st period. to climate change coming from the forest station and the rain forest common dioxide emissions risen again. young people of the world are committed to climate protection.
what will. be change doesn't happen on its own. make up your mind. for minds. saddam's new vision pays off shares and the german comic again a whopping 20 percent after it announces ambitious plans to go electric will find out what's behind to be dealt with used to interrupt also coming up our stock exchange takes a bite out of london's business often breaks it but you're an x. now has its sights on the rivals. it's an industry that's never let hell soirees stuff that. cuber cigar made a celebrated
a strong year as smokers keep pumping away despite the condom. alone would have to do business on want to go jones and fox is now germany's most valuable company well that's off to a huge rally in the automakers shares this week after it laid out aggressive plans for electric vehicles the 20 percent stock surge propelled market value to the top of the german dax index the automaker unseated software firm s a p and other giants to become the most highly valued company in the blue chip dax how did that happen well the w. said it plans to dominate the electric vehicle market by 2025 it will spend big to the tune of 46000000000 euros to build out its fleet of electric cars that is to make them cheaper fox wagon will start making its own batteries and 6 new european factories battery costs could fall by half and
make sure they stay charge c.w. plans to build tens of thousands of new public charging stations around the world in the coming years big plans there from volkswagen let's talk a little bit about that with our financial market correspondent who's standing by for as in frankfurt con had have to say even after diesel gauge who would have thought that. would make such such a comeback and even take on tesla how did that happen. well monaco bold decisive uncompromising that is the way how force one has shifted its strategery strategy towards electric vehicles you're right monica up until very recently 1st one was mostly in the headlines for the diesel cheating and up until recently was considered by many to be just a boring. and original original equipment manufacturer people said the
comic has like folks wired were already dead they just didn't know it but folks who are really has invested a lot a lot of money a lot of effort the announcement you just told us they are really ambitious you know to build 6 gigafactory 6 factories that can produce batteries. that is very ambitious compared for example to tesla that you know builds one factory after the other. is planning to deliver $1000000.00 electric and hybrid cars this year alone that's almost a 5 fold increase compared to last year these are the numbers investors are looking at and these are the numbers that they are betting their money on ok well there is i mean as you say folks one plans to folks live in wants to and folks back and now . there's walking the walk there's talking the talk what is it. you're right monica of course there are a lot of if ifs and buts attached to this the car makers including folks who are
already now have problems to get enough computer chips for their supply chains also of course the 6 figure factories to be here look at tesla this is not going always super easy like in the case of the tesla factory that's currently being built near berlin. also folks one plans to hire a lot of new software engineers the software operations are supposed to grow to 10000 staff where do you get these people from the market for these kinds of experts here in germany is a pretty tight one so lots of open questions on the other hand monika is it really so important for folks to meet each one of these targets in detail what's important for investors is that one wants to set the pace here and that it makes clear it really wants a very good front position this race all right there in france on
the new regular success one has to call it that of folks like these days come up with and thank you so much. forget london go to amsterdam that seems to be the model imposed breck's in europe amsterdam has displays the british capital is europe's biggest share trading center grabbing a 5th of the 40000000000 euro a day action and that could just be the beginning as. the reports amsterdam is also ready to take on rivals paris and france that. i'm saddam's new business district so does his new me enough to fit in to companies started relocating from the u.k. last year trade is now following in their wake. fortunately the united kingdom has left the european union and therefore is not able to to to continue business on the same way out of the european market as they were before and now amsterdam is taking over the parts that are specifically related to 2 trading this is the oldest stucky
change in the world through a number of mergers over the last years it turned into europe next it has now taken the 1st phrase share trading from the city of london in december 2020 london had over $17000000000.00 trades per day and amsterdam $2600000000.00. this picture changed dramatically in generally 21 amsterdam saw as the prize with a 4 fold increase in trade dealing more than 9000000000 shares but has this huge amount of trade come from london to state that all depends on equivalence being granted or more at the moments i think that's john's is not as i understand it also from regulators that. very big that that will happen. so yeah in the meantime i think of course we should as an adult and stay competitive also in our regulatory climate dutch traders fear the introduction of the financial transaction tax and
other european regulation and of course the market here might become more fragmented i think we have of quite a good starting position barrister's more focus on our own banks. i think frankfurt also has a good good starting position but let's let's see how that develops but can amsterdam really topple london as the leading financial market amsterdam is good at in specific knishes so for example high frequency trading payment systems but of course it's a much smaller and i think what is a relative really important for the financial industry it's a concentration of human capital mind you if bracks it has really a bad effect on the u.k. u.k. economy and that will of course you know that will be a metaphor of yes then you might well see shift of financial industry also amorphous financial industry towards the continent but still at the moment the mood
and amsterdam's financial markets is altogether rather bullish. and now to some of the other global business stories making news. the u.s. government has announced it will expand the export restrictions imposed on russia earlier this month as punishment for the poisoning of opposition leader alex a novel in the new measures to block exports including some technology and software . telecoms company vantage tower is listing on the frankfurt stock exchange today that's the infrastructure spin off of vodafone the i.p.o. could raise 2300000000 euros the value vantage at over 12000000000 euros the company owns phone towers and rooftop masts across europe. germany's council of economic experts has cut its full year growth forecast for europe's largest economy to 3 point one percent from an earlier prediction all 3.7 percent recovery has been an even manufacturers the wet weather bring the crisis but the service sector
continues to struggle. the u.s. federal reserve will keep its loose monetary policy in place holding borrowing rates low and continuing bond purchases even as wall signs pointed to economic recovery in the u.s. the banks 12 member open market committee had brushed off inflation concerns in their wednesday prognosis saying any price increases will likely be the short term result of u.s. stimulus programs and fell short of the fed's 2 percent annual inflation goal optimism for recovery is growing in the u.s. as a vaccination campaign hit stride and $1.00 trillion dollars in stimulus spending it's the markets fed chairman jerome powell said tackling unemployment was a priority to get additional remember there are $10000000.00 people in the range of 10000000 people who need to get back to work it is going to take some time for that to happen you know it can it can happen. maybe more quickly than it has in the past because it involves the reopening of
a sector of the economy as opposed to stimulating aggregate demand and waiting for that to produce job demand for workers that this could be a different sort of a process and it could be quicker we don't know that but it's it's just a lot of people who have who need to get back to work and it's not going to happen overnight. wall street correspondent called to told us about the possible hick ups the u.s. could job creation i mean the labor market clearly is still one of the main legging factors when it comes to the recovery of the u.s. economy in general i would still say that the recovery that we're seeing is not necessarily literally a v. shape but a case shape meaning there are some parts of the economy that really came back is very strong but other parts of the economy some service jobs for example are not coming back as quickly so not everybody will feel the recovery is the same way but if you look at the forecast at least from the federal reserve they're saying by the end of the year the unemployment rate could drop to as low as 4 and
a half percent that is still higher than pretend to make a level but of him over think back to what happened last spring when the unemployment rate was at around 15 percent at some point there's also the labor market has recovered but not in the same degree for everybody but it's also not just up called the federal reserve to change that federal aid to steer the also still needed at this point. in school today that cuba is best known export seaguy strong demand from abroad helped save it from the condiment. young garcia is tending to back up plans that will be made into cuba's famous handled cigars the farmer has struggled like the rest of the cuban cigar industry with the economic fallout of the pandemic. u.s. sanctions on cuba have also made it hard to secure diesel fuel and fertilizers and unusually wet weather last year didn't help but garcia is hopeful this year will be
different. it has been a little hard due to the health situation that the country is going through. the weather has not been favorable but we have to be there working to see if we can achieve a good harvest. so that this year will be as good as last year or even better. but warrigal also. exports have been keeping the industry afloat cuba sells around $100000000.00 sick cars called poor abroad each year demand from overseas held up last year as smokers bought premium cigars with the money saved on travel and entertainment the part to cost cigar factory in havana kept running even during the worst days of the pandemic. almost the going but going to we are not going to say that it is a negative impact we are simply a little limited but an impact that will cause unemployment lack of cigar exports
this is not been the case we have continued tax port. things the worst is now behind the industry partick os for its part hopes to boost production to almost $5000000.00 cigars this year. and that's a business update thanks for watching. to only. or not to uomo. what about a sharing economy instead. of. the change in thinking is changing the economy to create something. good. economics magazine maybe in germany. next you.
got some tips for your bucket list. corn. for food. and some great country memorials to boot. soldiering on that's pretty much all we can do until the well is being vaccinated the pandemic continues to pound economies companies and individuals at the moment the coronavirus is still winning the race but taking it one hurdle at a time a lot of patience and perseverance and the death of creativity could just.