Browse content similar to 06/11/2015. Check below for episodes and series from the same categories and more!
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As more countries cancel flights to and from Sharm el-Sheikh in Egypt, | :00:00. | :00:19. | |
we look at the devastating effects on the country's already embattled | :00:20. | :00:21. | |
And it is the first Friday of the month, and guess what, | :00:22. | :00:28. | |
As always, very important, but today's numbers even more so. | :00:29. | :00:32. | |
Welcome to World Business Report, I'm Aaron Heslehurst. | :00:33. | :00:45. | |
But first: More countries have joined the UK | :00:46. | :00:47. | |
in curbing travel to the Egyptian resort of Sharm el-Sheikh. | :00:48. | :00:54. | |
The governments of France, Belgium and the Netherlands warned | :00:55. | :00:57. | |
their nationals not to travel, and German airlines cancelled flights. | :00:58. | :00:59. | |
This is, of course, devastating news for Egypt's already | :01:00. | :01:01. | |
In 2014, tourism contributed $36 billion to the country's economy. | :01:02. | :01:17. | |
That is 12.8% of total economic output. | :01:18. | :01:21. | |
One in nine depend on it for work, according to the World Travel | :01:22. | :01:29. | |
Last year a total of 9.9 million people visited Egypt. | :01:30. | :01:37. | |
Russia is the biggest source, then the UK and Germany. | :01:38. | :01:44. | |
But revenues from famous Egyptian monuments, such as the pyramids, | :01:45. | :01:47. | |
have plunged by 95% since Egypt's 2011 revolution. | :01:48. | :01:59. | |
With me is Farouk Soussa, chief economist for the Middle East | :02:00. | :02:01. | |
Thank you for coming out this horrible hour. Let's start with | :02:02. | :02:19. | |
this. I was just reading earlier this morning that the Egyptian | :02:20. | :02:24. | |
government is planning to open, unveil if you will, three tombs that | :02:25. | :02:27. | |
have never been seen before by tourists. They want to do this to | :02:28. | :02:30. | |
attract more people. I'm thinking they're going to need a lot more | :02:31. | :02:35. | |
than three tombs. It is not that there is not enough to see in Egypt, | :02:36. | :02:41. | |
the issue is security. To be honest, more needs to be done. I think more | :02:42. | :02:49. | |
needs to be done on the security front in order to attract tourism. | :02:50. | :02:54. | |
Any country with tourism is vulnerable to these attacks. It is | :02:55. | :02:59. | |
an under it exploited industry. There is plenty in Egypt and plenty | :03:00. | :03:03. | |
of infrastructure and improvements that can be improved in order to | :03:04. | :03:07. | |
grow the tourism sector so I think more can be done by the Egyptian | :03:08. | :03:10. | |
authorities. The tragedy of what has been done now, apart from the loss | :03:11. | :03:14. | |
of life, from the Egyptian government's respect it is that they | :03:15. | :03:17. | |
were trying to grow the tourism industry, and now I think that is at | :03:18. | :03:22. | |
peril. Some of those numbers I was reading out were already down | :03:23. | :03:27. | |
anyway. They sound like a lot, 36 billion, and 3 million people get | :03:28. | :03:31. | |
jobs through tourism but they are already down because 2011 basically | :03:32. | :03:35. | |
wiped tourism. So is this the nail on the cough and for that so? Well, | :03:36. | :03:40. | |
Egypt is always going to attract a certain base level of tourism -- | :03:41. | :03:46. | |
nail in the coffin. It is today 13% of the economy. Before 2011 it was | :03:47. | :03:51. | |
closer to 21 or 22% of the economy. It brought in $10 billion in 2010, | :03:52. | :03:56. | |
last year it brought in $8 billion. So the tourism industry is already | :03:57. | :04:00. | |
pretty much on its knees. Now, is this going to be the final nail in | :04:01. | :04:05. | |
the cough and? I would argue it has already been battered and beaten -- | :04:06. | :04:10. | |
nail in the coffin. What we are seeing is the difficulty maintaining | :04:11. | :04:13. | |
momentum in tourism going forward rather than a massive blow to the | :04:14. | :04:17. | |
Egyptian economy which has already happened. And you mentioned the | :04:18. | :04:20. | |
government were working on revitalising, I guess, that sect. | :04:21. | :04:28. | |
The challenge, though, off the back of what we have seen for the | :04:29. | :04:30. | |
Egyptian government is rebuilding the trust to the people -- that | :04:31. | :04:34. | |
sector. You would think if you depend on tourism so much you would | :04:35. | :04:38. | |
think you would pretty much throw the kitchen sink at the problem to | :04:39. | :04:41. | |
show they are doing everything about security possible. Yes, I am no | :04:42. | :04:45. | |
security expert or anything like that but I would say that it is very | :04:46. | :04:50. | |
difficult to be 100% effective and it just takes one attack in order to | :04:51. | :04:56. | |
undermine confidence in the security arrangements, and people who think | :04:57. | :05:04. | |
there is a one in 1000 chance this might happen to me, they will go | :05:05. | :05:10. | |
somewhere else. We will speak to you again. Thank you very much for | :05:11. | :05:11. | |
coming in. US President Barack Obama has | :05:12. | :05:12. | |
formally notified Congress of his intent to sign | :05:13. | :05:14. | |
the Trans-Pacific Partnership. It is one | :05:15. | :05:16. | |
of the world's most extensive trade agreements, accounting for about 40% | :05:17. | :05:19. | |
of the global economy, and the text Mariko Oi is in our | :05:20. | :05:22. | |
Asia Business Hub in Singapore. Great to see you. I believe that | :05:23. | :05:42. | |
text is 6000 pages, and I assume you read every one of them. All of | :05:43. | :05:52. | |
them... Not. But transparency or the -- rather the lack of it has been | :05:53. | :05:57. | |
one of the issues with this trade deal. And what is interesting is | :05:58. | :06:01. | |
that currency manipulation got quite a lot of mentions so now member | :06:02. | :06:08. | |
countries have to commit by the IMF, the International monetary fund, | :06:09. | :06:11. | |
that they would not cheapen their own currencies for competitive | :06:12. | :06:15. | |
advantages. But it didn't go as far as to say what kind of punishment or | :06:16. | :06:19. | |
sanction can be applied, which is what some of the American | :06:20. | :06:21. | |
manufacturers like Ford were demanding. And of course, China | :06:22. | :06:26. | |
isn't part of it and China has been criticised by the US for its | :06:27. | :06:30. | |
currency policies. So there's a lot of question about that. And also | :06:31. | :06:33. | |
some uncertainty about how Labour laws would work, for example if | :06:34. | :06:39. | |
America's minimum wage has to apply to other member states like | :06:40. | :06:43. | |
Vietnam, highly unlikely, and other main sticking points like | :06:44. | :06:46. | |
intellectual property. There are still some uncertainties about it. | :06:47. | :06:50. | |
But having said all that, it is not a done deal at all. Even though | :06:51. | :06:55. | |
President Obama has now notified Congress, for example, presidential | :06:56. | :06:59. | |
candidate Hillary Clinton is actually against the deal. So | :07:00. | :07:03. | |
whether President Obama can get it ratified in the US and whether other | :07:04. | :07:07. | |
countries can do so as well remains to be seen. It is getting closer but | :07:08. | :07:13. | |
still some work to be done. I am taking my 6000 pages home. A little | :07:14. | :07:17. | |
bedside reading. Riveting, riveting stuff. | :07:18. | :07:18. | |
Later today, we will hear how the US jobs market is faring, | :07:19. | :07:21. | |
and it is being billed as the key indicator as to whether the Fed is | :07:22. | :07:25. | |
The crystal ball-gazers are forecasting 184,000 new jobs | :07:26. | :07:28. | |
So will it be enough for the boss of America's central bank, | :07:29. | :07:40. | |
Janet Yellen, or the markets, to think the economy is healthy | :07:41. | :07:43. | |
Remember, Ms Yellen told a congressional | :07:44. | :07:45. | |
hearing on Wednesday that a December rate rise is alive and well. | :07:46. | :07:49. | |
Jeremy Cook, chief economist at World First, joins me now | :07:50. | :07:51. | |
You know, as I do. We have been talking about this until we were | :07:52. | :08:06. | |
blue in the face about this rate rise. We say they are very | :08:07. | :08:10. | |
important, but this has to be the most important, surely? It has to be | :08:11. | :08:13. | |
the most important meeting we have ever had. If you look at how long it | :08:14. | :08:17. | |
has been since the Federal reserve has actually hiked rates, back to | :08:18. | :08:22. | |
2006, it is obvious the very big seachange away from the ultra- | :08:23. | :08:24. | |
accommodative policy that we have had in most central banks since the | :08:25. | :08:28. | |
financial crisis. If the Federal reserve believes that the US economy | :08:29. | :08:31. | |
and the world economy is stable enough to start hiking rates than | :08:32. | :08:35. | |
that means that we have finally exited the global financial crisis. | :08:36. | :08:39. | |
And just briefly, we look at a rate rise and we think that thing, it is | :08:40. | :08:43. | |
a sign of a healthy economy. But certainly if they do trigger that | :08:44. | :08:47. | |
rate up, we look at some of the Asian economies or emerging | :08:48. | :08:50. | |
economies, especially some who are holding dollar debt, and that could | :08:51. | :08:55. | |
be some pain for them. That's right, what is good for the US goose may | :08:56. | :08:59. | |
not be good for the emerging market gander. We know that when US rates | :09:00. | :09:04. | |
were very low, leveraged up on US dollar debt, and obviously given the | :09:05. | :09:08. | |
falls we have seen in emerging market currencies in the last 15 or | :09:09. | :09:13. | |
16 or 17 months, those repayments have become a lot more. You have to | :09:14. | :09:18. | |
think that a stronger US dollar will as a result of rate increases | :09:19. | :09:22. | |
increase that owner as burden on those emerging market corporate. It | :09:23. | :09:26. | |
is something to definitely watch out for in 2016. Short and sweet, but we | :09:27. | :09:32. | |
always appreciated. I to get this in. The Germans are at it again! | :09:33. | :09:33. | |
They are almost like the French. In other news: Lufthansa's main | :09:34. | :09:35. | |
cabin crew union has called a weeklong strike, | :09:36. | :09:38. | |
starting today at 11:00am GMT, after last-minute talks between staff and | :09:39. | :09:40. | |
management over early retirement Lufthansa, | :09:41. | :09:42. | |
which has taken a $141 million hit to profits from strikes so far this | :09:43. | :09:46. | |
year, said because the union was not providing any details of the strike | :09:47. | :09:49. | |
until Friday, it could not yet work Don't forget you can get | :09:50. | :09:53. | |
in touch with me and some I will be back taking a look at the | :09:54. | :09:56. | |
papers with Ben. Universities will be able to | :09:57. | :10:00. | |
increase fees above the current maximum of ?9,000 a year, if they | :10:01. | :10:03. | |
can demonstrate high-quality Government proposals for the future | :10:04. | :10:06. | |
of higher education in England would | :10:07. | :10:10. |