Transcripts For DW Business 20240713

It comes to the fans of the human scene the microphones who had decided to put their trust in us. Name is jenny paris tonight part of the. A clash between 2 oil titans sent stocks around the world tumbling markets experienced the worst days since the financial crisis in 2008 we lost our correspondent on wall street to assess the damage. Also coming up plus the coronavirus in fact Global Supply chains we take a look at how one German Company is weathering the storm. Choppy waters ahead how years of on the bratz have pushed mollies Tourism Sector to the brink of collapse well meet some of the people whose livelihoods are at risk. This is the business. Welcome its been a day of carnage on the markets with shares posting their biggest losses since the financial crisis in 2008 the massive drops were triggered by saudi arabias decision to increase Oil Production after russia refused to cut its a push in response to weakening to mond because of the current prices and heres the damage here in germany the dax close around 8 per cent dad almost entirely wiping the gains of the past year the footsie 100. 00 in london fared no better it ended just shy of 8 percent in the red as well and there was chaos 6 trading going on in new york 2 after losing more than 7 percent of its value within minutes of the opening bell trading had to be suspended for 15 minutes to other exchanges the die jones later close nearly 8 percent lower as well all of this volatility of course coming as the price of oil saw its biggest 1. 00 day drop since the gulf war in 1991. To break this down for us lets cross slide over to detail these financial correspondent jose luis on wall street hi jose what is day its been now saudi arabias decision to increase oil oil at a time of weakening demand seems pretty astonishing on the surface what are other opec members saying about this and will russia retaliate. What we can say. The Current Situation its only sustainable for a short period both for a pick members and russia most go. To war to push prices down by the keeping them current levels or pushing them even lower will have political implications especially since that for russia to break even price for oil is around 42. 00 a barrel a lot of reporting of prominence at the beginning of the year to approve some fiscal stimulus because of its low popularity still the Current Situation will make any investment in infrastructure or i mean korea seems social spending much more difficult for all the republican members some of them depend on income from oil to survive so a significant decline in revenue this to belies them politically and socially and jose would you say what happened on monday is a single shot or do you think were going to see more losses in the coming days. It is hard to tell caves from diego dispersed practive on the oil perspective but keep pushing prices down in crude oil will send jitters said to the u. S. Jail all industry to do seem to stream space in a 3 sided attack of falling prices move off Institutional Investors to divest from fossil fuel companies and quashing debt loads so with prices at the current levels we could see a wave of bankruptcies and some instability in the junk bond market the various speculative one bother with the current levels of volatility and uncertainty anything can happen in the next coming days and we can take out of the picture more losses not only in equities but also in oil prices and anything is possible how that is the hair on wall street thanks so much for your insight. Now to some of the other business stories making global news governments around the world have been trying to offer reassurance amid the market turmoil brazils Vice President described the 10 percent plunge on the side of polos Stock Exchange as a normal and transitory situation this after shares in state Oil Giant Petrobras lost more than 24 percent. And in mexico president Andres Manuel Lopez Obrador says the economy will balance back after the paizo drop to a 3 year low against the us dollar he also maintains the country has adequate reserves of the commodity mexicos economy relies heavily on oil. Israel has proposed setting up a network of safe airports in order to maintain Global Supply chains speaking to european leaders the countrys Prime Minister Benjamin Netanyahu who suggested designating a number of hubs coronavirus free in order to facilitate transport operations. Well theres certainly plenty of room at Londons Heathrow airport to the consolation of Many British Airways flights to china as well as parts of europe south korea and japan has caused the normally bustling terminal to fall silent demand has weakened since the outbreak as People Council Holiday Plans and government imposed travel restrictions. And as youd expect the outbreak has had a major impact on Global Supply chains especially those with operations in china in our next report we take a look at the measures one german maker of electric motors found is taking to whether the outbreak. Production is still running smoothly that e. B. M. Pumps in southern germany. One of the worlds leading producers of vans and electric motors it supplies companies around the world and sources many of its components from china thats why its formed a task force which meets several times a week to monitor chinese production and supply chains. Says theres been no bottleneck so far. As the feeling of Risk Management high priority and we dont put all our eggs in one basket if one topples over theyll be another one somewhere that takes its place on those alternative suppliers are decisive now still the company cant do entirely without china but ports in china are clogged up air freight is available but its expensive that were not going to even even if the unpleasant side effect is that costs are exploding where we used to pay 1. 00 euro a kilo base rate now weve reached 10. 00 to 20. 00 euros a kilo as that we get from spokesman. Was higher costs more effort e. B. M. Pops Storage Facilities are full and theyre set to grow the company is stocking up on supplies to cover a 12. 00 week period besides china italy is now under scrutiny this into english by going on something if we were in talks with our suppliers and were bringing their advance production here that way we can secure supplies for our plants in germany by then seek a facade you could see 50 also tops the agenda in germany with employees undergoing a cultural shift even when we greet each other we dont shake hands any more no. Truck drivers on the italy run are given protective clothing the fears are not unreasonable germanys Electrical Industry association is gauging the costs of the coronavirus to the sector in china alone. In that respect were looking at deliveries under threat right now worth half a 1000000000 to a 1000000000 in advance payments the coronavirus has been testing the economy for over a month highlighting how vulnerable supply chains have become. To long term shocks like that offer us a chance to ask if we shouldnt reposition our value added chains and production lines more locally. But we dont want knee jerk reactions they could threaten the enormous gains in efficiency weve been able to make in the past. You know its a forgotten hybrid of schools its. One thing is certain that that maker e. B. M. Pops and many of the German Companies the coronavirus will weigh in on the bottom line just how heavily is still not clear. Now over the past few weeks weve reported extensively on the impact the coronavirus is having on the Tourism Industry but its certainly not the only factor hurting the sector in the west african country of mali years of on the rest have destroyed a once thriving travel industry. A gentle trip down the niger river taking in the landmarks of malis capital bamako once a very lucrative business for captain daouda but data today hes happy to get even one paying customer aboard his pirogue whose business is all but collapsed since the crisis began 8 years ago. I used to carry people and goods on large boats all the way to go. With the crisis ive only got 2 small boats left in bamako for tourists to do you dont see any more of either. Hotel ears are also suffering for 2012 malise Historic Sites were major Tourist Attractions the deteriorating security situation means Hotel Operators wait in vain for customers like john close to see owner of the hotel near a bull who. Tells a completely empty you can tell by the keys theyre all standing in the box is that. If the hotel was full theyd be lying flat. We only have 4 molly and guests. That we give the last Foreign Tourists here left 5 years ago. Weve not seen any since. Weve been. Outside the street has changed completely most of the bars and hostels long gone. This was one of the liveliest streets in bamako. There were loads of tourists nowadays its empty nothing works anymore. Total desolation so much that i did feel foreign visitors have slowed to a trickle down the loss of revenues is ruining livelihoods. Traditional mali and works of art and finding buyers nowadays many of the artisans can barely survive. The money to it still. Has been searching desperately for some way of revitalizing the sector and what weve got to focus on Domestic Tourism in the past it was always about Foreign Tourists so far mullins havent shown any interest but its our aim. Doubt of a daughter is back from his trip down the knowledge and he had 3000000 guests on board and have been the last for today as well. As he treated no one was waiting on the jetty when he got back just like every day. Of time for for me under the. Law for. Demonstrations uncompromising to al queda station rebellion formed as a protest movement against calling the change. Their supporters call for big changes to implement it quickly. On the moon to go to save the planet and stiction Rebel Movement protest for eco terrorism close up. Next. Coal india. Where is the toilet daily struggle for him because women. Entrepreneurs focus it all car has turned the whole city. Nation facilities for. All high. Looks invites so i says to him good style its this way life is now a little easier. To go into. Even 60 minutes on d w. Is the human race destroying itself. We are ruining the basic elements of our existence. Using too much water and polluting. The water useless. We may think our Water Supplies will last forever. But they wont. When the rain storm. Starts march 20th on g. W. Protesting to save the planet for months the Global Environmental movement Extinction Rebellion has been making headlines calling for political leaders to act on the Climate Emergency the activists are willing to do whatever it takes to make that happen. Anybody be wrong