tv Business - News Deutsche Welle July 31, 2018 1:15pm-1:31pm CEST
that there where we hope all organizations will also step up with area action on climate for is when voters will be there for an example that we share the. green credentials of also be matched by strong performances on the pitch for screamer recently promoted to the english football league for the first time in their history. tells look could be gearing up for a new factory in germany to be here in just a minute with that story and much more in our business news thanks for watching. they make a commitment. they find solutions. they inspire. africa
. stories for both people in a different school shaping their nation. and their continent africa. stories about motivational change makers taking their destinies to their. p.w. singer multimedia series food for. d.w.b. dot com. i think that. is tesla racing towards europe media reports say the american economic was looking a building a so-called factory in germany but what exactly does that leave me. as told for the government stole toxic drivers block roads in spain to protest on five competition from the likes of.
this is devalued business i'm good how the elf. american economic company tesla is planning on building huge manufacturing center here in europe talks or on already underway with two from german federal states as it explodes building what it calls a get a factory here in europe additional negotiations are taking place in benevolence the facility will assemble batteries as well as vehicles ordered tesla to reach a decision about the location by the end of the year just recently tesla announced their plans to build a large factory in china a million cars will supposedly be produced each year is a common occurrence recently struggled to meet delivery targets for its mass market models. on
a colleague stephen beardsley and look further into the issue and joins me now in the studio steven first of all what is a geek factory and why would tesla want to build one in europe so gigafactory is using the term that. the quantity of electricity that tesla wants to create to make a effective battery for an affordable car so instead of kilowatt hours which we often talk about for utilities this would be electricity in the amount of gigawatts you want to produce massive amounts to bring down the price of batteries now that's part of tesla's overall strategy of making e-cards affordable making it something that you would look at as you look at a normal car here something you can actually for your budget now it has given factories already in the works in nevada for example in new york and then one in china and why don't want to europe because europe is also a massive market and has already has two factories there so it could seek some economies of scale well it sounds like a big deal and yet tesla has been in the news for something less positive in its
production that is the company trying to deflect it possibly it would have every reason to tell those quarterly reports are coming tomorrow and investors are not optimistic at all in fact some are saying that it's going to look like a bloodbath. the big issue here is that tesla is burning cash to meet those. goes for the model three like you talked about it had to sort of move heaven and earth to create actually a third production line in the tent to do this so the idea was move that cash nature goals but investors look at this and they say where's profitably profitability coming along how sustainable is this. this is still trust you don't must because he's been you know making big announcements he's amount of a great gesture does he have a photo ops well i mean look at space x. look at what happened with the rocket launch in the boosters that self landed themselves so yes of course sometimes what he does absolutely comes the payoff but you know he has a vision that is very stark and sometimes it hits a wall of reality especially when it comes to what investors expect what they demand and what they want to see out of his company they're going to put money into
it and that's the wall that he set in right now especially with a lot of what he's doing on social media those are seen as distractions effort to announce new productions of for example a self driving truck very interesting but could that just be a distraction when production of model three is the real big issue here is europe seems to be taking you seriously though reasonable official officials have reportedly met with the company you would to i mean this is about jobs right it's about economy if you look at the gigafactory nevada for example the promise is three point five billion dollars i believe in capital investments by build out and sixty five hundred jobs now that's huge if you're a government official you want to bring that's where you are the question though is it be interesting to see if tesla does do this how will it operate in europe a highly regulated environment where unions are very strong compared to how it operates or exactly compared to how it operates in the u.s. so that might be the question moving forward to tomorrow is really going to be the big question ok we'll find out then thank you very much stephen bitsy. audi
and have gotten there first but now b.m.w. wants to build cars in hungary to the car maker is investing one billion euros in a new factory in the eastern part of the country a thousand employees will be building vehicles with combustion engines as well as electric and hybrid cars w w chose the location because i'm hungry infrastructure proximity to many suppliers and the well trained personnel factories in germany are working at close to full capacity announced its plan to build a second time carrying factory in june. taxi drivers in madrid and barcelona are still striking again today after talks with spain's public works ministry broke down last night the blockades began last week in protest of what the taxi drivers call unfair competition from right hailing services like cabot fi.
monday night passed without a resolution between the drivers and government strike leaders said they'll go on. today's decision is that we continue. hundreds of taxis have paralyzed barcelona and they're refusing to budge until they get results the strikes have since spread to madrid and smaller cities like palencia but i did have this is the first time the taxes have taken a decision where one hundred percent together on this. has to be thirty to one nothing else will do he means that in the future only one permit should be issued for every thirty normal taxi permits among those worst hit by the strike tourists trying to get from barcelona airport to the city center extra bus services have been put on but they're still packed full. we're trying with the old bell because the best way is for suitcases is very difficult for us to have a tough day today especially with children six hours jetlag and then the airports
empty things are hard that i mean. if i if they're working here because this morning in barcelona they were jammed last option would be a train i think. thousands of taxi drivers across spain are now part of the strike they say ride sharing services like threaten their livelihoods as of now they continue to wait for a resolution. some songs missed its latest earnings projections due to lower demand for its flagship galaxy devices it's the latest sign of a slowdown or for smartphones as the market seems to get saturated the south korean giant recorded a thirty five percent drop in operating profits and its smartphone division from compared to a year ago competition from chinese devised makers has grown in recent months consumer demand for new smartphones as fall of some survival apple is due to publish its latest figures today. we stay in the sector
for years tech shares have been the strongest winners on stock and strangest around the world but as of late the fast growing business seems to be in trouble and investors are worried facebook shares lost just about twenty percent in a single day last week when the company failed to meet expectations it cost the social network more than one hundred billion dollars in market value for this week software maker electronic arts and take towers down almost seven percent each netflix lost six percent meanwhile investors are gearing up for a barrage of earnings including apple as with later today. well for all its talk to my colleague. who is standing by in frankfurt poll take has been down for a few days now what's behind the sudden losses and do investors fear there's a trend. there's been
a big selloff triggered by earnings season mostly on nascar but other tech companies as well also in asia and the problem is that these companies have been shouldering a bullish market for nine years almost singlehandedly so the expectations have grown and grown grown and. and now stellar growth is already priced into the shares so if a company doesn't quite match that. there's a high chance of a drop right now i spoke to analysts earlier and they said this was way overdue tech companies valuations have been way too high and if you look at it for nine years you know you can't always be on top it might be time for a bigger change although they say it's too early to say whether that will continue . further down much more well flamini is apple has been the hottest of those tech
companies the one investors are watching most closely what's in store with the quarterly numbers are coming out. yes apple the world's most valued company is actually flirting with a one trillion valuation once again it would have to go up seven percent though from its current price and well let's look at what is pointing in that direction i phone sales are says suspected to be stable it also bought back some of its shares that might help but we don't know how the company is dealing with china trade tariffs yet and yet tech is difficult right now so one trillion is all but certain. problems and frank thank you. the world's biggest earthmoving equipment. posting second
posting record second quarter revenues were up almost a quarter fourteen billion dollars the illinois based company credits the result to rising global demand for the specially and its business with china as well as recent all in child production in north america case of the left has been expected to news revenues because of the u.s. china trade dispute. that's it for me. for the next hour and. twitter on facebook. websites slash business here's a welcome check on global markets. thanks for watching.