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tv   Business - News  Deutsche Welle  July 6, 2022 3:45pm-4:00pm CEST

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is my asian countries and will visit singapore where a shortage of live chickens is proving a headache for local cooks. hello, welcome to the show. i'm seniors in berlin. the german cabinet has agreed to a plan to bailout major utilities exposed to falling russian imports and higher spot prices, saying it wants to avoid a domino effect of network failures of the new plan which needs to go before parliament allows berlin to provide credit. and by so called a silent stakes, infected companies, it's modeled after government rescue of tons of during the pandemic. a separate part of the bill, which berlin says would only be used in a worst case scenario. would even allow utilities to pass along higher gas costs to customers behind the new new legislation is the precarious case of uniform. that's germany's largest gas supplier. it's on the brink of insolvency. currently, the group is losing an estimated $900000000.00 euros a month. it's forced to buy gas at higher rates,
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given current prices and lower flows. but here's the problem. it's still required to sell the gas cheaply because of its long term contracts with local gas networks . if you'd per falls units. pl, utility supplied by the company would no longer receive gas. that would mean that millions of customers could face a cold winter, and companies might be forced to ration gas or even slow down their own production . and that's why you know, per is now hoping for that help from the state to the tune of more than 9000000000 euros. no small some there are for more in this, let's go to leon is vicky. he's a natural gas analyst with energy aspects. leon, good, have you on the show is always how critical is this situation for utilities is unit for a loan out there, or is it going to be joined by others? i mean, it really depends on each individual's utilities exposure to russian gas volumes because that's ultimately the shortfall that we are seeing in the european balance
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and for utilities that those missing volumes need to be replaced on the spot market . so for a company that has considerably contractual supplies with gas problem, you're looking at around potentially $21000000000.00 euros on an annual, on an annual basis of additional costs. if they have to source or on 60 percent of the contractual supply on spot markets and spot more, has it been pretty turbulent lately? we saw massive price hikes yesterday or that the, the cost was rising. where are those prices now? are they likely to calm down? have they calm down? what are we seeing right now? what can we expect? so we have seen particularly today prices fall flatly because the norwegian government stepped in with respect to the strikes that could have. adversity affected norwegian supplies into the european continent, but we're still looking at a t t price of around 155 years, a megawatt hour. and when it comes to the overall supply situation and the continued supplies and risks that we are seeing for european gas markets, namely from russia. but also when you look at the potential weather related risks
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that could be to decrease and g imports into europe over the course of winter, those prices are not looking to come down any time. so does that mean we have a better understanding of just how severe a sudden turn off russian gas would be? we've been talking about this for a while. do we have a better concept of how it might look? i think it's still a, it's a situation which is unprecedented because most of the rationing plans that european governments have drawn up are essentially dealing with a time limited shortfall in russian deliveries. or for example, 2 weeks of an interconnect are actually a technical. all we're not looking at is a potentially prolonged suspension and hauled of rush flows into the european market over the next couple of years. and this is something that european governments are grappling with to actually adjust all of their rationing accordingly. and to try and estimate what exactly the economic out would be of such a scenario. the german trying to replace a lot of the russian gas with liquefied natural gas or l. a g that has to be
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shipped in. we've heard some criticism recently by a german association of shipping companies saying that the ships are there, frankly, to bring in all that ellen g, are we seeing that as well? the markets? yeah, i think it's, it's not, not even so much a question of just the, the actual ships being there. it's more of a question of where you're going to get the incremental energy supplies needed for europe if it were come, for example, to a full flows. we already seeing that europe is setting globally high prices for natural gas. it is already displaced a lot of the price sensitive elements of the global gas balance. for example, cars, pakistan or bangladesh not to be able to afford spot cargo of energy. but that has already been going on for the last couple of months. so it's really a question, how much more demand high prices in europe can actually free up in terms of the global energy balance. and the answer to that is probably not much. or i guess analyst leona speak you there. thank you very much. and you look good out of
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some of the other global business stories making headlines. german industrial orders rose by a 10th of a percent in may beating analysts expectations of a sharp downturn. but despite the good news, the economy ministry still warned of strong head winds in the near future due to the ongoing war in ukraine. and that threat of a disruption in russian gas deliveries, scandinavian airline s a s filed for bankruptcy proceedings in the united states. as part of restructuring plants, the airline is currently embroiled in a strike by pilots and mechanics. the airline cancelled well over half its flights on wednesday, even many passengers stranded in airports. the norwegian government has intervened in a strike by offshore oil and gas workers. we just heard that by leon, by imposing a settlement with energy companies. and the decision came and concerns that the strike could up in the countries gas and oil output, the u. that would worsen it. europe's ongoing energy crisis
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was after he has announced that it plans to increase the portion of nuclear power in its mix electricity mix rather from 27 to 30 percent by 2030 of the countries recently and saw president young look you all made expanding nuclear power a key pledge of his campaign going to boost investment and revive south korea status as a key export of safe reactors. interest in nuclear energy is growing across asia. in particular, amongst many southeast asian nations where demand for electricity is set to triple by 2050 countries like indonesia, vietnam in the philippines are already signaling interest in developing nuclear power. the populations are growing, and they're aiming to industrialize their economies. let's bring in our type a correspondence. so song, hon. so good to see you. why is nuclear energy increasingly attractive to southeast asia? currently, south east asian countries do not have active nuclear reactors. but the situation
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may change since the end of may, indonesia, vietnam, and the philippines have expressed their desire to have nuclear power to meet the growing energy demand. and get rid of the depends on fossil energy. se asia imports 40 percent of his energy and currently relies on the middle east for oil and gas with australia as the main source of coal imports. se asia energy's 80 percent fossil energy. the remaining a renewable energy sources are mainly hydro power. in this context, atomic energy becomes very attractive, or i'd so still are colby's power, but a lot of aspirations. where are the biggest movements? where's the most progress right now when it comes to nuclear? in southeast asia, indonesia, the world's 4th most populous country, has lodged a new plan in early june to have its 1st nuclear power plant by 2045. it, it tends to set up a special agency to be responsible for the development and operation of nuclear
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power plants and in vietnam in late may, it's minister of industry and commerce told parliament that the country's development of nuclear energy was an inevitable trent. and there were plans to build to nuclear power plants by russia, state atomic energy corporation in japan's atomic power generation, suspended vietnam. and to be carbon neutral by 2050. and thus needs a stable source of energy. so the authorities might restore the project any time soon. and so china is one of the world's primary investors in nuclear, in recent years. what does that mean for its influence? we're talking about se asia in these plans to shift more towards nuclear energy in the belt and rolled in the shade of china and southeast asia. talk about nuclear power co operation. however, the 2 sides have not yet. nate breakthrough progress as nuclear power development in southeast asia is still at an early stage. china's plan to help build nuclear power plants in south asia. phases, many uncertainties, political risks and fears,
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international competition, and other serious challenges. china is still working on setting long term strategic goals for nuclear power market development in southeast asia and properly handling relations with other nuclear power. exporting countries ready to be corresponded. so on hon. in taipei, thank you or broken down supply chains or putting some of the fundamental assumptions of globalization under scrutiny. as countries hold back, exports to protect themselves from growing scarcity on the markets. other nations is singapore. this dish is not just usually popular, but actually quite simple. singapore is highly nice, chicken rice. what's more complex is why vendors like one young tie are about to stop selling. the key supplier of life, chicken, neighboring malaysia, has suddenly suspended exports this month. singapore government is urging consumers
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to switch to frozen birds importers from brazil and the u. s. frozen chicken, i think for fire did not many people try and i think it's not good to see because of days is different. and not he, he has been in his life audius'. his efforts again, not, not visible. the birds on this farm, just north of the capitol kuala lumpur. we're actually raised for singapore, malaysia typically exports up to $3600000.00 chicken a month since the russian invasion of ukraine, a major exporter of key components for chicken feet. the farmers saw grain prices doubled out. what fell and chicken prices went up to until the government stepped in with a ban and shop honey and alman melissa able to a bottle supply the market market our local market. however, in long term we lost a thing, double market. think for shared their government wi fi. another thought for a family in pike highland on indonesia to to continue the pipeline to them. and
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that is exactly what singapore is doing. the port of singapore is the 2nd largest port in the world. but economic growth is slowing down. it is expected to grow only 3.5 percent this year, down from 7.6 last year and being open plus dependent, certain sectors leads you vulnerable. the question is, how do you solve that? and so singapore, i would say, has sad in order for us to solve our openness and vulnerability, we need to be even more open. we need to have more trading partners. singapore also wants to reduce its own dependencies by 2030. the small island intends to produce 30 percent of its food locally. currently, the country still has to import over 90 percent of its fruit. however, there is little land for agricultural cultivation. that is why investments are being made in vertical farming. crops are grown and harvested inside buildings and with artificial intelligence. evil shrimp can be raced here. his or
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mine of our top is a story. germany is laying the groundwork for state bailouts of political utilities governing coalition in berlin, approving plans to help prop up uniform. that's the country's largest buyer, russian gas. and that's it for me and, and he w business seem find out more aligned to w dot com slash business watching ah, [000:00:00;00] with
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ah, a tile in times of crisis, bread and gasoline, high prices for fuel and staple foods or above the world's population, hunger and poverty threatened to disrupt society and how can we stop this chaos and what options do politicians and business leaders have made in germany in 90 minutes on d. w. and we're interested in the global economy. our portfolio d w business beyond. here is a closer look at the project. our mission. to analyze the fight for market dominance. with
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with ah this is d, w here is live from berlin virus jones and defiance before a hostile parliament. the british prime minister tells lawmakers he will not reside despite the series of scandals on the loss of more than


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