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tv   Counting the Cost  Al Jazeera  June 21, 2022 8:30am-9:01am AST

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design of this century, just catching you out as you're at paging. south korea is set to launch his 2nd domestically produced space. rocket comes 8 months after the 1st launch failed to put a dummy satellite into orbit. a test had been scheduled for last week, but it was canceled hours before launch after a problems detected with a sensor south korea has no military satellite of its own. it depends on the u. s. to monitor facilities in north korea. ah, this is al jazeera, these are the top stories, the leaders of israel's coalition government are dissolving parliament. that'll force the country to hold its 5th election in less than 3 and a half years. foreign minister yodel appeared to would takeover from the folly bennett as interim prime minister until the election in october the shuttle. busy on friday i held a series of talks with legal and security officials and i realized that in 10 days
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with the expiration of the west bank regulations, israel will experience serious security damages and legal chaos. i couldn't allow that will kill law. her sophomore, we spared no efforts to galvanize whomever was needed to pass the regulations. but unfortunately at if at sport, no fruit can therefore my friend and i decided to act together to dissolve parliament and sit and agreed upon date for elections. marley's military rulers have declared 3 days of national mourning. non south of fighters killed a 132 people in several villages. the government blamed and armed group affiliated to all haida ukrainian president says africa is being held hostage by russia's war. the european union also blamed russia for critical shortages of grain in africa. invasion is led to rising threats of famine across the african continent.
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the nobel peace prize metal won by russians are listed to monetize household records. $103500000.00 at auction. the money is going to go to help homeless ukrainian, children, emergency services, and bangladesh battling to deliver food and drinking water as several regions face severe floods. millions of people have been stranded rivers are expected to continue rising as more rain is forecast. brittany is facing its biggest rail strike for decades after toes failed to between the bail workers union and train companies. tens of thousands of employees are walking off the job for 3 days. rejected a pay increase of 2 percent, while inflation is at 9 percent. but he's a 5 tier gas, a beacon people who stakes to break up protest against fuel price rises in nepal. petro went up by 12 percent or monday, pushing up fairs for public transport and good vehicles. those are the headlines coming up next. it's counting the cost to buy what happens in new. 1 york has
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implications all around the world to make these stories resonate requires talking to everyday people. the mayor of the city announced them doing away with the curfew that was supposed to get everybody off. it's international perspective with the human touch zooming way in, and then pulling back out again. ah, [000:00:00;00] i hello, i'm debbie navigate. this is counting the cost on al jazeera, your weekly look at the world of business and economics this week, saving china's economy. the government has announced a $33.00 point stimulus plan to boost economic growth. is it enough to correct
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damage caused by covered locked downs, or is a slow down around the corner? also this week, the contentious northern ireland protocol, the u. k. plans to scrap parts of the post wrecks at trade deal with you, but kind of do so. and how will businesses be affected? and the tourism industry has had a strong start to the year despite raising prices. but is it's recovery sustainable or for the war and ukraine hamper the rebound and global travel it's been the biggest source of global economic growth for the past 20 years, and china has long defied predictions. it would soon hit a wall, but strict code locked downs, a crackdown on tech companies and a real estate slump are challenging the world's 2nd largest economies expansion. so many financial institutions predict growth will fall, well shorter, beijing's target of around 5 and a half percent. this year for the 1st time in decades. so beijing has announced
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a 33 point stimulus package in an attempt to most economic growth. the measures include loans for small businesses and airlines, cheap mortgages for 1st time home buyers and subsidies to help people buy electric cars and laptops. the plan also include big spending on infrastructure and china has turned to state on policy banks to provide more than $120000000000.00 and funding for the projects. well, official data on industrial production, retail sales on fixed investment revealed, the economy slowed sharply in april. but the chinese economy showed signs of partial recovery last month. industrial output increased 0.7 percent. that's slightly higher than expected. retail sales remained weak and the government is persisting with a 0 proven strategy. and despite its impact on businesses as katrina, you reports beijing authority say they're racing against time to contain
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a ferocious resurgence of corporate 19 less than a week after the capitol east virus restrictions. hundreds of new cases have been identified. all linked to this nightclub has in supermarket. its business license has been suspended, and the owners are under investigation, cannot toaster job balise, have a launch, a criminal investigation into the bar revenue, people in charge of the bar on suspect interference with epi dammit prevention. several other people have been charged with breaking coffee rules, including 3 men who ignored orders to isolate, had harmed the close to his spread to 14 of beijing, 16 districts, and prompted mass testing in the largest church. young. the reopening of schools has been delayed. heaven supermarket, but it's located here and suddenly turn in areas beijing known for its night life, restaurants, and shopping. these businesses had just reopened when this new cluster was found.
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and now hundreds of them have had to close the doors again until further notice. dozens of cases have also been recorded in shanghai, forcing tens of thousands of people back in doors. the commercial center emerged from strict to mont looked down at the beginning of june. new economic data shows china's 0 tolerance approach to the pandemic is continuing to take a toll in may. industrial output rose 0.7 percent compared to the same month last year. and property sales improved slightly. but retail sales fell 6.7 percent with uncertainty weighing heavily on consumer spending. it is so incredibly susceptible to our faltering the moment. there is even a slight, a bully number quoted outbreak or covert scare, even that i think consumption is going to remain under severe pressure. and that is of biggest economic challenge to the party. right now i've been writing that is going to take a lot of effort in those need of meet drastically different policy. and the one
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that we have in place. analysts say, as long as china's leaders refused to live with the virus sustained, economic recovery will be difficult, leaving business owners anxious knowing they could be one corporate 19 case away from closing their doors. to discuss all of this, i'm joy now from hong kong by jacques. you is the chief investment officer for greater china at credit suisse jack, welcome to the program. thanks for joining us. so do you think it's 33 points? stimulus package announced by china is actually enough to bring the economy back on track. a will be one of the major supportive factors that will bring the call me back on track. what we, when we look at this for the free chemist packages, the most important one is being the special purposeful assurances and where we calculate the amount balls that meet the issue, which will be $1.00 trillion rather than be in the month of june versus in the last
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5 months, about $1.00 trillion that's been issued in a single one month, you issuing about 80 percent, what we seen the last 5 months. and that money will have to be deployed. busy into work by the end of august. and when we count plate and compare this with the stimulus back in 2008. where the announce for 20 in redmond b through and the global kind of questions. the monthly spending is even higher than that for 20 and our spent over 27 months. so we are quite optimistic about the infrastructure that to be built for these money. and also on top of these, freddie free measures is the balancing of say, will cold it with the economy that has been changing on the ground. and also because the regulation cracked, i'm just posting currently all support the factors for china's growth momentum going forward. all right, hang on a 2nd run, they're all down right below, right, let's drill down. drill down on some of these, this, some of these points that you raise. so let's look at the infrastructure spending
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that you mentioned 2008 just a moment ago. so by increasing infrastructure, spending this time around, china is in fact using the same tools that pull the through the financial crisis a few years ago in 2008. are they effective now as they are, as they were then they were quite effective in bringing economy back into a growth charge. it's re, you know, trying to have the 3 major pillows of growth infrastructure. real estate consumption, industrial in general. and infrastructure has always been effective in stimulating the growth momentum. and i guess also bring constructions, workers back to work. and we think this time around, um, it will give us very good confidence that infrastructure build up in the coming years. we're like the lead to us. we are celebration of grow from the 2nd half. i mean, alongside the next few years, obviously in
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a short term. that is good news. in the medium term. now we have looking at the addition of local governments. when they got this money, how are you going to spend it? where are you going to go to infrastructure and would be building infrastructure that's very useful for the economy. all ones that may have lowered your sympathy and that's where the medium, the long term question will come in. right now, i think point markets, we should be happy with this. let me ask you how china is going to pay for the new stem the stimulus, and does this in fact mean more debt for the country? well, a lot of the stimulus is going to come out from special products phones and china's fiscal deficit this year. according to iconic calculation, it's going to reach 12 percent. and this is comparable to 2020, where they were briefly below 12 percent for the full year. and we think that was the deficit number stephanie holly. but the fact that
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a currencies is seeing continuous inflow demand for chinese domestic central govern bonds have been quite strong. of the currency is unlikely to be effected by this. the fisher along. we also note that the banks have been holding back land things in recent weeks. because of a certainty economy and their, the banks actually flooded with law of liquidity. so we think that the banks will take a most of the issue or interest and they will be the purpose of an investment. and we don't think that deficits issue is going to be a problem, at least not in the near future or china. what do you make of the fact that there are no cash handouts that are included in this package? so in turn, how are consumers going to benefit from this plan? well, i mean the analysis in addition to the fiscal stimulus packages, which would definitely bring the construction workers back to work, the engineering companies back to work. and as they, some of them may have lost their shop during the rest,
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the slow down. and so that is a positive for the consumers. they're secondly, beyond the special private spawn announcements, there were numerous. we bates, that's been announced on patrick, based on fees on some of the tax duties and also offer more specifically on calls of car purchases have been again, given a major tax rebates or in the recent announcement. and therefore, we are seeing that the sector are getting benefits off of setting the same car for cheaper price just wasn't paid a month ago. so we bring the consumers there will benefit, i guess you're right. china is heading out cash. what impact the china, the current coven policy have on this package? now what's happening on the ground is you have one person infected in the building . the building may be locked down, but the estates from another 30 buildings will not be locked down. so people in most buildings are able to go to work. so trying to have adjusted the civil call
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the policy and therefore is the new what we still call the dynamics hero policy. and in this way, we will be able to see the supply chain recovery in china and the economic mental of the economy will be maintained. thank you so much, jack you for speaking to us from hong kong. the, the northern ireland protocol is a good arrangement with the minimum possible bureaucratic consequences. those were the exact words of the british prime minister when he negotiated the deal more than 2 years ago. today, boris johnson says he wants to fix the agreement because a damaged trade with the rest of the united kingdom. johnson's government has now introduced legislation that would unilaterally override parts of the post bricks it protocols with the you. well, the new bill aims to remove most checks on trading goods from great britain to northern ireland. at iris see ports, goods destined to stay in northern ireland would pass through a green channel with no checks,
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while those intended for the irish republic would be in the red lane and would continue to be subject to checks of legislation would also end the oversight role of the european court of justice. now the northern ireland protocol was the compromise between johnson under european union and to avoid a hard border between northern ireland and the republic of ireland after the u. k. left the you and does so by keeping northern ireland in the u single market. while there are checks on goods entering from the rest of the u. k. that's effectively created an iris c border with inspections and document checks conducted at northern ireland sports. it was also agreed, northern ireland would keep following new customs rules and applies each law on value out attacks. or critics say the protocol is causing difficulty for businesses . but supporters say having unique access to both the u. k and new markets is benefiting them. and johnson's conservative governments, as the protocol endangers the 1998 good friday peace corps,
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which put an end to decades of sectarian violence on the island of ireland. pro british unionists in northern ireland. se trade checks created as a result of the protocol, cuts them off from the rest of the u. k. they're refusing to join a power sure and government in belfast with the nationalist should fain unless the protocol is rewritten, the u has launched legal action against the u. k. over its failure to implement parts of the post breakfast deal. it agreed with the block. well, joining me now from dublin as john grey john as the co founder and director general of the british irish chamber of commerce. good to happy with john green. thanks so much for your time so that you can justifying the bill under the quote doctrine of necessity. do you think that's persuasive enough for the you? i think we're in a poor place now. the cascade of events over the production of this new piece of said,
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threatened legislation on his threatened legislation even even if it's passed, it will still have to get through a lot of hoops and it may never be actually applied, but it is an important threat. and it, it is a great worry now for businesses throughout great britain and ireland, but not just businesses for the communities that they serve to the jobs that they create and, and invest further in the use of the word necessity is illegal. s legalistic term, obviously leaving lots of room for interpretation and calibration. the reality is that the greater number of businesses and communities serve by those businesses have been getting on with at the implementation of the protocol. i'll be at with some wrinkles, but every new regime, every new formulation of business rules does take time to adjust and there are ample mechanisms in place to make those adjustments. here's the thing. i mean, there have been complaints about excessive time consuming,
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as well as and expensive inspections at ports because of the protocol. do you think that this new legislation, if it goes ahead, if it passes, will it make it easier for traders while know as presented it, it creates of a very troublesome place for traders now on, on both islands entity beyond because the level of uncertainty has been increased not reduced the proposed mechanisms now involving things like traders having to make a choice. and ultimately, their consumers ending up being selected to consume products that are made to a british standard on the one hand or as total alternative products made to a european standard. on the other hand, the reality is the standards of the same. but the provision that things could vary and that effectively suppliers need to choose which regime and regulations they follow as extremely troublesome for business as his own workable for business. and
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the nature of trade on these island. john, you know, for the benefit of our international viewers, ollander, if you can just give us a little bit of context and tell us why the protocol has really been a source of tension. since it was signed, people who are upset by the protocol are basically 2 groups from the trade point of view, exporters from great britain into northern ireland, who have been exporting for a lifetime and understand to be so are not inclined to take the workload of filling in declarations that now have to be completed to simply trade across the i received from england into northern ireland. that's an understandable frustration . but the fact that it has to be done at all is annoying, genuinely, some people in northern ireland who say, well, we never had a burden on our suppliers before. and this is a problem now because some of them are saying they don't want to supply us anymore . in reality, most traders have,
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have found work arounds and alternative sources of supply. and they are getting on with trade. but it is understandable that there is what we call an ident, gee, politics issue. there is a cohort. a minority bought a relevant cohort who have a if you like, identity politics. objection to the notion that they can't trade without formality in the way that they did previously with great britain. there is one area, in fact, just 2 areas that would solve most of this. one of the issues of most of the compliance issues here around the food sector. there are, there are some of those in engineering and such like, but the biggest issue is in food because it's a, it's about food safety, human health and animal welfare. and the standards for that are extremely high across both islands and beyond. the issue could be solved about the need for checks on the if you like, compliance and the safety of food products, food imports, food exports from these islands. and you know, the supply chain issues,
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things like animal feed, as well as animal welfare and its own rice and things like animal and medicines. so the entire supply chain is very secure. the signing of a veterinary agreement between the 2 nations with the blessing of the you would take away 99 percent of those. all right, let me just jump in there john. just very briefly, if you may, i mean looking ahead, what do you think? what happens you expect a trade war with, with the you? i can't rule that out. i certainly hope it doesn't happen because it would mark an escalation from which it would be very difficult to roll back. but there is no doubt about us, the threatening of this new legislation by really a minority faction in westminster has raised the stakes. and it is understandable that having signed an agreement and now saying we want to go at go away from our own agreement that the e u. the other counterparts of that agreement will say, well, that's not an inconsequential matter. and that there will be sanctions on the east
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side, and that is a dangerous state of affairs. it could escalate dangerously very fast. we need to get back to the negotiating table under the, the 2nd formulation that i mentioned is a thing called the joint committee, which it already pre exists and needs to be activated to deal with these practical issues and take it out of the political store. all right, thank you so much on the ground for speaking to us from dublin. thank you. japan reopened it stores to travelers the u. s. drops. coven, 1900 test requirements for airline passengers. on restrictions or east around the world. travel was finally getting a taste of come back after 2 years of industry. devastation brought on by the pandemic destinations around the world. have welcome nearly 3 times as many arrivals in the 1st 3 months of this year compared to the same period in 2021. and the world tourism organizations as a global arrivals have increased by a 130 percent in january compared to the same period last year. destinations
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worldwide. welcome to estimated 117000000 international rivals. compared to 41000000 in the 1st quarter of last year, and tourism saw a 182 percent year on your increase between january and march. european, the america was let the recovery europe welcome to almost 4 times as many arrivals as the 1st 3 months of 2021. while the americas arrivals more than doubled in that same period. so people are so eager at their travels that they're buying flights and booking hotel rooms, even at very high prices. a return economy cost ticket between hong kong and london for example. and kathy pacific airways, at the end of this month, is more than 5 times the cost before the times that make, for example, while marriott hotel chain says that over memorial day weekend, the company's revenue per available rule was up about 25 percent in 2022, compared to 2019. let's discuss all of this. i'm joined by caroline bremner. caroline is the senior head of travel research. you're
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a monitor international. she's joining us from scotlands capital at ambrose. welcome to the program caroline. so what do you think is driving the rebound in the travel and tourism sector is despite that raising prices of tickets and hotel rooms that i've just been talking about? well, i think, as you mentioned, and it's very much driven by a consumer demand, and that's being very pen talk during the pandemic. so we've had 2 and a half years where, you know, consumers were confined to their houses that were under travel, benz restrictions and, and only very recently have government started easing back on those. and currently there's $46.00 countries around the world that have no restrictions. the tall according to the end of the t. o. right? so let's just talk a little bit about the high cost of traveling our, because we are seeing escalating costs. and these costs are being passed on to the travelers. any way that can be avoided at all? well,
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what we have seen is we know global inflation doubling since january this year. so this is, you know, very worrying for consumers as well as businesses. and, you know, we've had the shock of the war in ukraine that is causing, you know, inflation we've got, you know, disconnects with the supply chain, energy prices and food prices rising. so yes, at some point, you know, companies can't keep absorbing those costs and they do need to pass them on to consumers. and so yes, as you mentioned, there's very high airline ticket prices. but at the same time, there's so much kind of demand because consumers spent 2 and a half years without being able to travel internationally. and so, you know, you've got this such a really strong demand surge. and the problem is that, you know, the industry itself is not able to meet that because, you know,
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during the pandemic they had to lay of workers. and, you know, so now we've got a situation where their staff shortages. ready and the supply isn't able to meet that very strong demand. interesting. ok, and a look. i mean, you, you outline a bunch of challenges. you talk about the ukraine war from for one inflation was the 2nd one and this issue of staff shortages. do you think that all of this is going to undermine confidence in the global travel market going forward? well, when they warn you, crane started in the 24th of february. yes. and this increased the levels of volatility in the global economy. and of course, it has caused, you know, further valuable volatility, especially in eastern europe. but there hasn't been that sort of long term sustained dropping interest in demand. and you know, there were fears at the beginning that the americans would be put off from coming to europe. but actually the very latest data from the national travel and tourism
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office shows growth and 700 percent from america to europe. and of course, within europe, there are no restrictions in place, but very few. and so that means that, you know, there's very strong inter regional european demand. so you know, that that demand is such a localized at the moment. and of course, you know that the war in ukraine is, is challenging, but at the same time, it's not having this sustained, long term impact on, on overall demand for travel. so when do you expect a sort of full recovery for the industry and do you think this is going to be a bumper year? well without diet, that 2022 is going to be a stellar year for travel and tourism. are we really are seeing that this is the year that the re bind is really going to take place and you know, your monitor, we're protecting, you know,
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growth of 84 percent for the full year oversee and that the level of decline that we sold during the peak of the pandemic in the we so the industry collapsed by 75 percent. and then there was only minimal growth of about one percent last year in terms of international term and spending. so the recovery itself to those pre crisis levels is going to take at least 8 to 9 years. but so we really are looking at a long drawn night period of return to recovery and to reach those peak levels that we enjoyed beforehand. ok, thank you. so much caroline brunner for joining us from edinburgh. thank you, natasha for this week. get in touch with us by treating me as an agent to use the hash tag a j. see to see when you do. you can also drop us an email counting the cost that al jazeera dot net is our address. that there is more for you online at al jazeera dot com slash c t c. and that will take you straight to our page,
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which has individual reports, links, an entire episodes for you to catch up on. that's it for this edition of counting cost. i'm danny navigator from the whole team. thanks for joining us. the news on al jazeera is next during the colonization of africa, thousands of artifacts were removed by the major european powers. so ago that the french occupational gradually removed a lot of works. a new 3 part series tells the story of the struggle by african countries to reclaim that priceless heritage. but it didn't happen over night. we were robbed over time restitution, africa stolen on coming soon on al jazeera examining the impact of today's headlines yesterday. our electricity was far into all this all
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alive. setting the agenda for tomorrow's discussion. if somebody comes to garner from europe than never called an immigrant, the always known as next path, international filmmakers in world class journalists bring programs to inform and inspire. we live one people on this one planet, and we got to work the solutions together on al jazeera ah and roberson, into the top stories on our 0. israel's fragile coalition government is dissolving parliament after only a year in office. the country is going to have to hold its 5th election in less than 3 and a half years. a coalition failed to renew a law in the status of his railing. settlers in the occupied west bank farmers. yeah. le pete will take over from the valley. bennett is an interim prime minister
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. polls expected to be held in october the ship. busy home on friday i held a series of talks with legal and security officials and i realized that in 10 days


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