tv Business Deutsche Welle September 12, 2019 6:45pm-7:01pm CEST
and beijing is starting a business. welcome to do business asia want to get johnson but i am good to have you with us so in a much anticipated policy meeting the european central bank has approved a fresh stimulus package for the euro zone the package includes a further comment on the banks the positive rate now at a record low of minus 4.5 percent the e.c.b. also approved a new round of bond purchases of $20000000000.00 euros a month starting in november a both measures aimed to stimulate growth and push inflation to just under 2 percent that's the bank's target. let's just take a listen to what european central bank chief mario draghi had to say about why this move was necessary the outlook for real g.d.p. growth has been revised down 420192020. the wrist surrounding the euro oyur growth outlook remains to the downside.
these race mainly pertain to the prolonged person so the uncertainties related to geopolitical factors the rising threat to protection is an vulnerabilities in emerging markets. i was easy be president mario draghi just a short while ago at the press conference us president donald trump has been swift to respond to the e.c. peace decision taking to his favorite medium to express himself in a tweet he said they're trying and succeeding in depreciating the euro against the very strong dollar hurting us exports and the fed sits and sits and sits they get paid to borrow money while we are paying interest well what are we to make of all this let's go to comrade was now a man in frankfurt and under your hang also joins us in singapore and i hope we both have them on the screen and just
a 2nd and i hope they can hear me already because i would like to start with you can there you are more rate cuts and a fresh bond purchasing program the right move for euro zone economies do you think . well the e.c.b. chief druggy certainly argued his case you just played the sound bite he said that since the last e.c.b. meeting inflation and economic activity has significantly weakened in the eurozone and that because of this the bold moves announced today or warranted but let me tell you why they come more and more economists here in the eurozone and out not only the conservative german ones are convinced that the ability of the central bank to really inspire the real economy has been exhausted that it has its limits and that such a monetary policy can even harm the economy by undermining trust in the central bank and in the system all the girls all together by you know fueling
price bubbles on the property market spyin disrupt in the bond markets by telling savers that it's not worth paying exactly telling savers especially in germany it's not worth saving how much further into negative territory can we go here. well you know you played the or you mentioned the tweets of donald trump of course donald trump himself is not interesting for the european central bank but this tweet indicates how politicized the job of the central banks has become recently the e.c.b. of course has to make sure to keep its author of its credibility so there are of course limits to what it can do are over to you under a hour because obviously asian markets have been watching the easy decision as well what's been the reaction there you're absolutely right and the fruit of their lives has paid all somewhat asian markets at the close of 2 d.
actually pretty upbeat stocks were hitting a 6 week high to day on the new well and in anticipation of some good news from the e.c.b. also not forgetting the goodwill gesture that the surprise goodwill gesture that was handed by u.s. president donald trump to china. did leave the tariff price hikes on some of those chinese exports to the u.s. now market watches had been hoping that the e.c.b. we're following the footsteps of markets like india the philippines new zealand where just last month all of those central banks had their interest rates as well now under a how could the e.c.b. decision actually impact asia well investors have kept a very close watch as you sit on the e.c.b. and you just want to see how many how far policymakers were willing to go to support the eurozone economy which is weakening and may weaken further with the
break just around the corner all right andrea hang there reporting for us from singapore. both of us to both of you thank you very much. with trade talks between china and the u.s. expected to resume next month both sides have been busy making gestures aimed at calming waters that have become increasingly stormy and the latest moves appear unlikely to shift the dial over the biggest questions in the dispute to dish out rehearsals for the 70th anniversary celebration of the founding of the people's republic of china are in full swing in beijing a birthday party brings welcome respite from a trade war after all. and donald trump doesn't want to spoil the party act. he announced on twitter that juta the upcoming celebration on october 1st the chinese vice premier has asked him to postpone the planned 5 percent increase on
$250000000000.00 worth of exports to the us penciled in for the same debt and in what trump is calling a gesture of goodwill he has agreed to the move now chinese goods will face tariffs of up to 30 percent from october 15th instead of on the communist states big birth to the u.s. move followed china's decision to suspend new tariffs and 16 kinds of u.s. exports for a year news the trump seemed happy with. i think they did the right thing i think it was good for them. but they took a morphine i think it was. i think was a gesture ok it was a big move people were shocked i was in shock. his lack of shock might be because beijing's exemption list does not include any major u.s. exports such as pork or soybeans it's mostly made up of fish meal 3rd for livestock and some cancer drugs that the chinese can't easily make themselves or buy elsewhere. the u.s.
move is also unlikely to change things too much after all what's another 2 weeks when you're talking about $250000000000.00. well back here in germany it's been a long way from the 8 exhibit in berlin that was back in 897 to the frankfurt motor show today one of the most important auto industry events in the well it's german chancellor angela merkel has officially opened this yes show themed driving tomorrow and indeed it showcases all the shiny visions of the future of mobility but for germany's comic this is plenty of reason to doubt that future. outside the grounds of the frankfurt motor show protesters carry signs calling for the band of the so and petrol engines they're criticizing the car industry for their role in the climate crisis inside german chancellor angela merkel open the show with
a reminder to car makers of the cost of past mistakes specifically the emissions cheating scandal that saw an entire industry sell cars they said were less polluting than they actually were. the problem of illegal defeat devices the one that led to a loss of trust weighs heavily on midst a period of great change. therefore it's only right and important for the sector to show it can be relied upon. that's why the cars shown to her in her traditional walkabout focus heavily on low emissions technology like electro ability. but this giant multi-billion euro push into the future may be too little too late and the showcase of it obsolete. this could be the last time a sitting chancellor opens the frankfurt motor show in its current form the show is experiencing an existential crisis akin to the one the auto industry itself is
facing automakers are called upon to justify their place in the world ever worsening environmental crises i made souring public opinion at a time where the economies of their key markets are spidering like say china or incidentally like germany bad news for a sector that produces the country's most lucrative export and employs more than 800000 people and these gleaming new offerings of germany's prized industry may find their way into fewer and fewer garages further slowing down a change of course for carmakers. gainsaying has been used in chinese medicine for thousands of yes the roots of this slow growing plant. believed to be a potent antioxidants touted to improve brain function and to boost the immune system and lots of other important bodily functions now what you may not know is that going saying is also a native plant in north america and that since the 18th century much of the going
saying on asian markets was actually grown on us soil. the rich soil of marathon county in the u.s. state of wisconsin is perfect for growing the medicinal plant gin saying china has been a lucrative market for american gin saying but ginseng is one of the agricultural products subjected to tariffs in the ongoing trade war between washington and beijing the result a 20 percent drop in sales to china farmers fear for their livelihoods they can't react quickly to market changes because juicing takes up to 5 years to grow and harvest up all 3 percent or croft more last year. on the market and we have a new crop coming coming up in about 4 to 6 weeks so it's a has been a hard time for jones and farmers here around 2 thirds of the wisconsin ginseng crop is exported to mainland china jungmann tulle started farming ginseng here 9
years ago but the ongoing trade war is hurting he's trying to stay positive by taking the long view or present more what has always been the bring the bears from wisconsin or us for trial that more was despiser pound. and according to some ancient chinese texts he carps one of the symptoms that jin singh can help to alleviate. that's it for me on the business of asia here and. for all of us thanks giving us company.
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the bag play. this is d.w. news live from a 1st for the euro zone's flagging economy the european central bank compiles a fresh stimulus plan interest rates are cousins and the bond buying program is back will it have the desired effect also on the program the. story of a journey that was very nearly thankful measuring almost trapped in the mediterranean trying to flee her home country of libya her story coming up in just a moment.