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tv   Business - News  Deutsche Welle  October 3, 2022 12:15pm-12:31pm CEST

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stadium disasters it watching t w news. he has a reminder of our top story. the swedish scientist sponsor pe both has won the nobel prize in medicine for his research into what makes us uniquely human. he has been on it for his discoveries relating to the dna of extinct creatures and for his research and to human evolution. and that's it from me and the news to him for now i have an update for you at the top of the hour duncan wiper, his cobra is back with business. just a few moments i'm gab office. thanks for the or i might and the pillar of stick in society a symbol of arbitrary rule crucial tool in the struggle for justice.
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taxes the right to levy taxes in the obligation to pay them both inherent in the sovereignty of nation states and their citizens. but what happens when the power of taxation is undermined with won't pay. taxation takes don't talk to between 1st on the w ah, an unprecedented financial shield raising more than just eyebrow. germany is 200000000000. your aid package is meant to protect households and firms from sky rocketing power costs. and his reason for concern among your officials get more from our correspond also on turkish inflation. if 83 percent last month,
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official say independent expert, believe it is even higher. take a look at how people are coping galloping price. i'm chris over. welcome to the program. europe's double digit inflation is top of the agenda. as you finance ministers gather in luxembourg blocks record high energy prices. the primary driver of european inflation are expected to come in for its close scrutiny . consumer prices have sort since the beginning of russia's warn you. grain and germany is decision to set aside 200000000000 euros as part of a gas capping mechanism is also seeing increasing criticism. right, that's good morning. this from our correspondent christine manuel in brussels. christina, tell us more about the friction that has been on the rise among your officials when
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it comes to this gigantic german aid package. that's right, it is a gigantic package. chris is the biggest here in the european union. effectively. what this means is that german businesses will qualify. we'll, we'll be getting a bigger subsidy than their business peers within the rest of the european union. and thus getting a competitive advantage be given a competitive advantage. and that has drawn criticism, are from other member states who feel that it is unfair in a sense that and countries like germany and others who, who have the scope to go bigger on these rescue packages, are effectively pursuing national interest at a time where you would want that solidarity that this is damaging to the solidarity italy's maria drug, for example, was one of those voices critical of germany's plan. he said that it was simply unfair to, to member countries who just couldn't do as much who couldn't, who couldn't borrow as much, for example, heavily into countries like italy who couldn't afford to give such
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a big stimulus package that european commission for it's part has said that it's going to be looking at to see what the impact of germany is. 200000000000 stimulus package will do in terms of competition with in the u christine. but is the cert disparity that you're talking about, you know, differently, you countries being in different positions to, in order to support their economies. isn't as disparities possibly addressed by the windfall tax, or which the e wants to charge an of g companies with well, that is an attempt, chris, but if we, if we look at the numbers, you'll see how i it doesn't work effectively enough to, to level the playing fields, i mean the ears when full texts, we'll aim to raise about 140000000000 jurors. right. put that mixer germ east germany loans 200 years, 200000000000 years. and you can see how, how that doesn't add up at all. because at 140000000000, for example, has to be distributed among all the member states. so you can see how that is difficult to do. added to that you've got to look at the inflationary pressures. i
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mean, you've got some countries, italy among them, for example, literally facing recession over that. so this one for tax isn't going to be enough . the other challenge is that you've got some member states who have been calling for a price cap on all the guests, that importer to the e. u. they've not been able to agree on that. so certainly it's going to be a difficult period going forward. and that is why, how to tackle inflationary pressures, for example, is right at the top of the agenda of these meetings that are taking place over today's d. w correspondent, christine montoya, and brussels. christine, thank you. are soaring power course. a huge problem for many companies around europe and germany as well. of course reducing energy consumption is an option for some while the same time scaling down production. but some companies simply cannot cut back on a juice, and they can't just shut down either t w's. mildred kazora's reports, it's hi, precision work for more than a 100 years german company atlantic has been selling abrasive,
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grinding wheels. each one is custom made to the client's needs. most of their production is for export to ball bearing manufacturers, medical tech companies or order suppliers. the company's order books are full. but the $200.00 employees are concerned about rising energy costs. electricity prices doubled in recent months, and the price of gas has gone up $6.00 fold. as we haven't yet asked, we were forced to sharply increase the prices because we expect energy prices to continue to rise. saying that we're now budgeting at the current high price funds. so the question is, and our hope is that our loyal customers will continue to order from us because our products are of high quality and are quite simply necessary to it for, for addison, i fuck him off, then the traditional company has to buy gas and electricity on the so called spot market, because it previous energy suppliers have filed for bankruptcy. that means atlantic can't make any long term agreements for their energy needs. rising gas and
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electricity prices are having an immediate effect on production costs. that's because these wheels have to be baked in high temperature ovens. this is al, adding substantially up to now there's been no support at all from the state. we've applied for support for the high energy prices. but the application was extremely bureaucratic like and it almost seems as if obstacles were being deliberately put in the way so that as few companies as possible could receive support. i'm at work this vanish montana in law, had understood from hong kong. if energy prices continue to rise and a recession materializes, a company like atlantic stands to lose a significant number of orders. with our tag, we wouldn't lay off employees, we'd put staff on reduced hours like we already had good experiences with this during corona virus. how it but it would still be difficult for us to can likely we have certain costs that even this measure count cushioned off of our quotes. i miss
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outfit icon. but some businesses can absorb the rising costs, like this bakery in bon. after more than a 125 years, the family business is closing its doors. from until one up for 1900 euros of electricity a month, which is a lot for a small business to 3800. you can compensate for that with higher prices. it's just not possible off on gasket on finish. even if a government rescue package for small businesses materializes for some, it's already too late. another, some of the other global business stories making news. opec classes considering 8 daily oil production cuts, which sources say could now top a 1000000 barrels per day from previous estimates. it re, to, it would be the largest since the pandemic. again, delegates insist reduction figure has not been finalized yet the british government is dropping. one of the most controversial parts of the many budgets announced by
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prime minister and lose trust. 10 days ago. treasury chief quality cor tank says it will now keep the 45 percent tax rate for high earners. unchanged. economists via the many budget will lead to excessive borrow, written to largest mobile network operators. waterfall u k, and 3 u. k. r. intensifying discussions over combining the operations, that's according to a sky news report. the goal is to have a deal in place by the end of the year according to the board or operators phase rising investments as they build out. 5 g networks. inflation in turkey, john to a 24 year high, one week after the central bank cut interest rates. again, inflation now stands at 83 percent according to the state statistics agency. however, an independent inflation research group claims that the actual rate stands at a whopping 186 percent. the turkish government had said inflation would fall with its new economic model,
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which prioritize is low interest rates to boost production and growth. and how are people in turkey coping? take a look so that prices are high. we're really struggling. we have 2 children who go to school. we're only earning minimum wage, and it's hard to make a living on the position. they met 19 years old and i'm not hopeful. i don't think the situation here in turkey will improve. you have also could i'm, i don't see a future here. i actually want to go abroad. this is true for most of us on which and then we get childhood in phil's home and you think i don't think inflation is around 80 percent. it's much higher in. i don't know whether the official figures are true or not before that the inflation i feel is much more like you. that's why it's getting harder and harder to live. she's gonna give you. well, that's a difficult situation there for people and turkey, chrome record. she is here, my colleague from d, w, business acreage. remind us, what is the cause for these galloping prices?
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and turkey was short answers because is ah, b the, the economic policy of federal government which is based on cutting interest rates more and more to drive up production and growth as we, as we heard just earlier. and this is going on since at least a year now because they started to cut interest rates back in september 2021 based on the new economy model that is aimed at driving the the growth by cheap loans so that companies can borrow money on cheaper rates and drive up employment and therefore drive up exports and making imports unattractive. so that the pressure is broken. i want to touch the rest of that touch on and we'll be back on track again. but so far, what we have seen is otherwise the turkish government has said that inflation would fall with this new economic model that you mentioned there. but inflation is only increasing in line with what we know from, you know,
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traditional economics teachings. does that mean that prime minister ariel will change course any time? so no, he made it clear several times recently. he won't change course because he sees interest rates as his biggest enemy and he has signaled just last week that they will, they will go down even further. that means that we will, we will expect more inflation and coming in coming months. and the thing is with this new economic model, they haven't really achieved their targets, which was, like i said before, which was driving up demand on touched era or were foreign currency. but this didn't happen this, this, this cheap loans over turkish. they're not directly going to production, but they are basically going to re conversion to foreign currency and stocks the, the cash reserves of the companies. because the, you see the, the, the, it's a very ball type comic situation. as you mentioned,
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volatile economic situation. we've seen people complaining saying out it is at the moment to cope with galloping prices because people go to the poles next year and turkey. what does all of this mean for the government? well, if you look back 2021 years ago, turkey was in a very similar situation and that's what pro, take the government in power in turkey. so we might as well as a visual moment 20 years 21 years after. before that we're still, we're still yet to see what is the alternative. for example, what's your position to say? and we will probably soon have houses. economic achieve from the w business. like from thank you. now the story of the lint, chocolate bonnie is slow and steady, wins the case. luxury charles maker lynde has won a case against a supermarket. copycat, or should we say a replica rabbits?
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switzerland's highest court has ruled that a chocolate bunny from 2 local units of discounts. supermarket leetle is too similar to the famous lint version. the gold wrapped chocolate bunny with the bell is one of linds flagship products. the swiss company has gone to court many times in recent years to protect its trademark and thats are shown for more check out our website at d. w dot com slash business. um because cobra berlin, thanks for watching i was accessing. ah oh, eco africa. drought, sir. hitting rwanda. heard this here. now the government is taking action by providing free access to groundwater and teaching people how to use it sustainably
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provide power. it will firstly, every one is responsible for protecting it was jeff secondly, but what we have to know how to use the water without wasting it. eco africa. next on d. w degrees. tina, a sex phone operator who wrote her master's thesis on the potato, raring to read. not turn on. well, it gets more ridiculous from their d. w literature list. good german must read. oh, do you love us and all the views if we're think the night later in today still won't explore ideas for insane blank.


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