A new race to the white house were joined by the sun to secure the democratic nomination i believe we can be down draw follow all the developments in the u. S. Election campaign on al jazeera. Hello im sammys day than this is counting the cost on aljazeera your weekly look at the world of business and economics this week a Mighty Dollar for all the talk of emerging challenges when push comes to shove the dollar proves its the worlds reserve currency we find out why the Financial System riddled with bad debts india tends to revive the countrys 4th largest bank as depositors yank their cash. And saudi arabias Oil Price War with russia could send crude prices to 10. 00 a barrel with an oil producer like indonesia cope. 9 trillion dollars and counting thats what rich nations have spent so far on the coronavirus pandemic theyre trying to make sure theres a functioning economy if they get to grips with the outbreak or the damage done is likely to surpass the financial crisis maybe even the Great Depression what is known its the worst economic crisis in the last 70 years well at this time theres a rush to safety the 11 year bull run in u. S. Stock markets is over and theres one safe haven everyone is banking on and its not gold its the dollar for all the talk of the dollar would lose its reserve currency status its proved to be just that talk lets take a look at some examples now emerging markets have borne the brunt of the rush for dollars indonesias superior lost almost 14 percent of its value since the beginning of the year the russian ruble and mexican peso lost a 5th of their. The problem for emerging markets they might want to cut Interest Rates to stimulate carona his economies but that would undermine their currencies further and Interest Payments on dollar denominated debt is just soared unbalancing finances and sterling fell more than 10 percent or to a low of 1. 14 a level last seen in 185. 00 the u. K. s divorce from the European Union has broken the resilience of the pound which was considered to be tethered to the fortunes of the continent well not anymore the best performing currency just happens to be the arjen time peso best performing of course in the sense its fall in the least compared to other latin american nations having capital controls has certainly helped though now the dollar has been the worlds leading currency for more than a century today more than 60 percent of all foreign Bank Reserves are in dollars lets find out what happened to all those challenges to the dollars crown with jamil at mit hes the global head of currency strategy and Market Research at f. X. T. M. He joins us via skype from london good to have you with us jimi so this crisis is shown its just been a lot of talk about the dollar ending its still the worlds current reserve currency of choice right absolutely yes listen the dollars not only remains to if this was a game of the dollar is on the line from has been on the guy and friend for extremely long time it dominates all of this i think index under x. And this has been something thats been in play for close to a century now since water times and we are still 2530 years away from anybody being able to say that they could challenge that dollar yes some currencies of made progress but the dollar store funded if you work globally for so many Different Reasons and wed. Just look at the dollar performance over the past week we had the dollar strengthened by close to 5 percent on a weekly basis thats it strongest performance of 2000 and currency such as the british pound as a result but dont let domination plunge the love was there nothing seen a 55. 00 is gold recently had its worst year since the late 1980 s. And even the Australian Dollar has lost over 20 percent yet today there is no contender to the dollar this is this is the end game but the dollars trump is so strong right now its superior like if youre a sports fan its like watching liverpool in the premier league this season theres no 2nd chance he said that he says the endgame hang on to me and does that mean the yuan has squandered its chance there was a time when some were predicting the on could be the worlds reserve currency this is still unlikely and we dont see this pull up you know even this being a possibility for the next 20 or 30 yes 1st much progress as the chinese yuan and the chinese economy has major global contributions over the past 20 years and still has so much more to go for example if we look at the. Payments of the dollar as we look at a Foreign Exchange reserves International DebtInternational Loans punishing should turn over the dollar is still supreme and actually the only 2nd character that can come into play on this is the euro and even the euro is that france before all of its suffering the city and whether the euro could collapse the chinese yuan in that table is no one can it be one day yes but when it happens just crucify 10th isnt that right now with the year at about 70 percent but its been a bit of a dissolve to this rising dollar a design if the for emerging markets though right it is we have a recipe for disaster right now when it comes to emerging markets performance and that currencies you have a global disease outbreak that is that its a Health Disaster this is going to contribute to global recession which means thats as low a great everywhere as a result of this stock market stepping in freefall which essentially means there has been no appetite to whats emerging markets because this you know risky assets that you dont invest in in Uncertain Times and with this youve got the dollar that strong finning across the board just to name you some of the casualties the russian ruble has declined by close to 30 percent this year the presidium reality as much as that to the indian rupee has hit a record low d the South African rand has weakened by 20 percent days being simply no end in sight when it comes to prisoners against the dollar as raying all emerging market currencies have to climb yesterday and even those that have been declined us much such as the Malaysian Ringgit as one example it still has declined by beyond 5 percent even still ling though i mean it was once upon a time a very Stable Currency whats happened the last week. I guess you could say the importance of fastening a seat belt on the wild descent down 90 fasten your seat by the glass shattered on the british throne and out of the past week up into the beginning of last week we can say that the british pound was per performer pretty risen. Against various concerns out of one of the major currencies including the euro to Australian Dollar swiss franc japanese it was the most well its how to the virus concerns but as soon as that virus epidemic intensified into the u. K. And concerns over u. K. Lock down which essentially is what were at right now came into play the kurdish pound sorts of worst performance in decades now explain this for us the Federal Reserve is pumping dollars as fast as they can into the system its even going a commitment for whats being termed as quantitative easing infinity yet the thirst for dollars doesnt end why essentially because everybody wants a dollar cash is king right now by cash that means were sticking dollars underneath our pillowcases thats essentially what does what the fairy is in the market right now essentially even despite more than much start despite to emergency for the reserve Interest Rate cuts the Federal Reserve announced an i. Q. Judge Stimulus Program a quantitative easing everybody still wants the greenback thats because the greenback is funded in so many different methods from loans to that so Oil Transactions go to name everything start dominated and at the same point its again its been a would reserve currency for a century since war times and that will not change anytime soon which gives president towards why everybody still wants the u. S. Dollar all right Interesting Times it is thanks so much. Oil prices could be headed to 10. 00 a barrel as the Global Economy heads towards recession and the Oil Price War between saudi arabia and russia is adding to the crisis problems of piling up for countries that are both importers and exporters of oil such as indonesia aljazeera as jessica washington has the story from jakarta. Around the world the corona Virus Outbreak isnt just a Health Emergency its also an economic one disruptions just supply chains were given that such a dramatic price war in the oil market was unexpected a falling out between saudi arabia and russia us back to the shop its one day crash in Oil Prices Since the gulf war. Indonesia is one of the countries thats both an export and importer and economists think it could be a challenging time for the country and its oil industry be exposed the us will really going to feel the pinch i thing before us is. Impacting the Global Economy chinas economy will feel the slowdown the Global Economy will feel it a slowdown like almost everything in recent weeks the slump in oil prices comes back to the corona Virus Outbreak china the worlds biggest importer of oil was turning back tank is as its economy began to contract. Saudi arabia called for a massive cant in production but russia disagreed and in response riyadh ramped up production indonesia is a net importer of Oil Production has been steadily on the decline and domestic consumption on the rise some fear volatility in the sector may not bode well for the future prospects of indonesias domestic industry with lower prices. Attractive enough festers but a Foreign Investment to come into the oil sector in need and what we need the most right now is investment coming in to really push level of production because our oil lifting the production of oil currently on a declining path. Executives that indonesias state owned Oil Company Pertamina away in the prospects of an indefinite price war that. We will add to our stock because the price is low but demand is also low it all depends on capacity as well as the downside there are pockets of opportunities for some economies but the general instability isnt welcome for most things on how to get. Income from exports will fall it may be good for imports but theres still less money for the government this is the impact of the virus as the virus continues its spread there may be more economic shocks on the way just to washington aljazeera jakarta. Leaving before the Coronavirus Crisis indias Financial Institutions were causing concern because of their large debts yes bank the 4th largest lender in india was taken over by the government this month thats the 3rd rescue this year aljazeera has elizabeth for random reports from the capital new delhi. Some good news at last. The government. Imposed during the government. The government took control on march the 6th because the bank had too many bad debts and loans which werent being repaid the take. Customers lining up to get their money out and the government imposing the with it for the bailout the government of the reserve bank of india brought together 8. 00 banks led by the state bank of india the largest in the country the bank is again highlighting the banking crisis involving Financial Institutions with too many bad. Banks which dont face the same regulations as well. And the company. Yes Bank Customers included some of indias biggest businesses including group a body was once one of indias richest people incremental big increase in credit was going to all of the promoters who were who were hurt and before when we had before were not able to pay back their bank loans taken much earlier like in the u. P. A. The previous regime so so so that sort of turned out all the cronies ended up getting more loans to pay back their earlier loans the government has accused u. S. Banks found and his family of laundering around 600000000. 00 by receiving kickbacks for extending lines that couldnt be repaid kapoors lawyer says hes being made a scapegoat 5th largest private analysts say the toxic loans crisis goes beyond a few bad apples its the 3rd time in a year that indias reserve bank has intervened to rescue a lender the with our bad loans i. Have played our economy our our Financial System the last 5 years what are we on government had been hoping for a slow train wreck you know they want a soft land the problems that they were they were looking over but in this business there is no slow train wreck a train wreck of the train wreck it will cause damage. Many are asking why the government didnt notice us banks massive growth for the economy was suffering a significant slowdown yes bank rescue comes at a bad time for indias economy which is growing at its lowest pace in over 6 years the government is now investigating why the take all the had to happen the financial analysts say on this the entire set. A just 3rd biggest economy could deteriorate further elizabeth problem aljazeera new delhi. Well joining us via skype from singapore is darren asia economist at Capital Economics good to have you with us what went so wrong that yes bank well. What i think happened is mostly a Corporate Governance issue so in particular was a lot of overly risky lending practices that was going on a few years ago and it just led up to a build up of nonperforming loans and a deterioration in u. S. Banks financial position now this is of course the 3rd bank rescue this has the problem being solved or should we expect more banks to run into trouble well indias Banking Sector is it has its share of problems and i dont think an issue like this would be so easily eliminated and of course several measures that the government would probably put in place over the next few years or so to try and attend to clean up whatevers going on so i flat out doing it like what will it take to clear this one up so in terms of Corporate Governance that theres simple things like trying to adopt best practice accounting and International Auditing standards of or enforcing more stringent punishments for cases of financial fraud or irregularities. One interesting think thing about the yes bang issue is that this was a private sector bank and its kind of stuck counterpoint against the idea that privatisation of the Banking Sector would help with all these issues but i still think that if theyre small a great amount of private sector involvement there would be some therell be some improvements made into clearing up these Corporate Governance issues mainly because the banks on average perform better and they are less cases of fraud and financially ready irregularities within private sector banks than republic banks. Why this was a bad time for the economy even before the coronavirus was going on with growth you think so much of the slowdown has happened over the last year or so can be traced back to the problems in the shadow Banking Sector and what that did was it created a squeeze of credit because a lot of risk aversion and reluctance to lend to these banks started to take place after fs default it into an even and it basically cause investment of the slump and then from there you see this. Gradual continuous slow down since. One assumes current virus is only going to make that growth worse right well were quite pessimistic about the outlook for this year right now because. The immediate issue now i guess is that the mission might lock down has been announced a few days ago thats going to cause growth to slump because sectors like manufacturing transport retail and were all going to ground to a hot and what this is going to do is basically just going to see g. D. P. Growth drop and were forecasting it to fall to a 4 decade low all right thanks so much darren for coming in talking to us about that and now the travel and Tourism Industry accounted for more than 10 percent of the Global Economy in 2018 creating 319000000. 00 jobs worldwide the industry was the 1st to face the brunt of the pandemic as travelers cancel their bookings the Airline Industry is expected to lose more than 250000000000. 00 in revenue this year as airlines are forced to ground their craft so how is the Industry Holding up well our next guest is the chief executive of travel management startup travel perk admire joins us from barcelona via skype good to have you with us lets start with the more visible part of the industry that airlines of course they stand to lose what tens of billions of dollars theyre telling their employees to take leave sometimes unpaid leave what sort of consequences of a facing. And youre right that there are times are in a very. Difficult spocks absent like many other areas it industry looking out for the consideration of the most routes now for a nice many many planes are actually empty just to keep the Slots Available so its looking pretty good i think for the never. Yet it took about 7 weeks of cash left this is a black swan that pretty body would have predicted the industry so Many Companies as many suppliers have to change their Business Model good like relationship with or to be bailed out because theres just not a way right now bailout is maybe a hope for some industries what does that mean for a business like yours that youre a startup you rely on revenue from commissions on bookings right. So so choppered you know we have business right platform for us going in the world and. Like all Business Travel relate that or trouble rate that companies we are affected b. C. The crease in bookings. In so certain countries is 100 percent. Like it if for example right now and then we see some nord and a crease of 80 to 90 percent in other affected countries i think long term we would have to change that industry this is going to be a moment or really reinvention of some of the thinking business trouble in trouble over oil and how you feel self by inventing yourself and youll business yeah thats a great question i think we started doing this exchange already last year and i would just accept a writing and put things that were going to focus on more and more flexibility into sustainability our industry fix it is obvious right i mean if you think about how the world would look after corona i predict a pretty monk period of time where you have corridors where you know youll be able to go from germany to france but not from germany if you saying thats an example because of the situation and new cases of the virus and i think this is going to be with us for a pretty long time im a person of an expert in in and theyre going to have to viruses but im just reading what the experts say so far that you have to objectivity and we have tropper something clicks experiment and all of the trouble is to get a full refund off the trip for any reason weve got it last year and we said i think it best i think that we actually are going to hire more people now in the spirit and invest more into flexibility and into this inability interesting do you think most businesses like ules are in a position do they have enough funds that you know this sort of flexible readjustment takes time it takes money out to. Correct yes so in a real fortunate a truck right we have raised capital from investors and were very fish in his nest so of course adjusting our costs single present operational expenses rich us think several things in how we are things. But of course if you dont have the cash or if youre deficient of the business its going to be very gentle and i think many businesses are dropping out like me should be situation so its interesting that your vision of the future of this industry is this idea of perhaps colored dollars who we wont be in perhaps complete shutdowns forever but there will still be color dolls opened and closed between places but it is your vision of this this vision of the future threatened by the fact that people are migrating to things like lets have more Virtual Meetings rather than traveling to meet lets do business more virtually and communicate move to the and less face to face with with social distancing kicking in. Is going to question and i think that we are in the middle of the Largest Scale experiment in Remote Working life and i think many people really learned that for some type of meeting the sometimes we direction is working better more efficient and your were seeing less time and looking thats right and some other meetings definitely have to be fixed base and of Human Interaction i think that if you just take a step back and just think about whats right for you know what i think is right for you or a positive world i think its good if we are more conscious about effect and there and the cost and not just in terms of monetary cost of traveling i dont think trouble is going to go away its a Huge Industry talk about 1. 00 trillion dollars spent nobody on Business Travel and he does been growing 6 or 7 percent you were near before this crisis and i think it will go back to growing up there but if we if we if we can be a bit more conscious of our decision i dont think its about drop a privilege its your product with reaper for example just. Evolution of this Current Crisis were not that we really think it. And this product allows you to automatically directly invest in projects youre in a true product that reduce Carbon Emissions so your trouble and then we offset for you it might be for example one of the projects we supporting is efficient. Stoves fucking in. Africa just one of the border so i think many many travelers are looking for these tricks to get in 11 hand you need to trouble work but also they went on to august better in fact a lawyer negative impact on the budget and i think we have as a company and we as an industry we have to adjust without them we have to serve the needs of the oscars so a lot that needs to be addressed and is going to take one is in there thanks so much abbi for coming in and giving us your eyes on that great talking to you. And thats our show for this quake but remember you can get in touch with us via twitter use the hash tag a j c t c when you do or drop us an email counting the cost down to 0 dont mention is our address is more for you online at aljazeera dont com slash city scene that will take you straight to our page which has individual reports links and entire episodes for you to catch up on. That save for this edition of counting the cost im sammys a than from the whole team here thanks for joining us the news announces era is next. When the news breaks the word doubtful was started with the games of getting weapons from the presentation and Economic Development when people need to be held to the top leadership world where the potential for parity of a foreign weeks before the public would totally changes aljazeera has teams on the ground the syrian army says determined to defeat the battles and to use advanced was this is a day to bring you the winning documentaries and light news. In response to Global Warming germany is gradually shutting down its coal industry but is it happening fast enough we dont have any time to waste any more we cant wait there were taken very action to call for the immediate phase out of culture may as Climate Change activists challenge communities reliant on the industry for jobs people in power who will win the cold war on aljazeera. As the number of coronavirus cases in the u. S. Exceeds 120000 President Trump backs away from putting new york under current to. Flow under in jordan this is our jazeera live from davos that coming up more grim numbers out of europe as the pandemic shows no sign of slowing down more than 20000 people have now died across the continent. Soup kitchens become a lifeline for argentinians under lockdown for many is their only chance of the daily mail. And another new saudi forces interceptor missile over the capital riyadh explosions are heard in northern parts of the city and to