The u. S. Economy growing a pace at an annual rate of three point five percent the boom being driven partly by tax cuts but is it just a flash in the pan. Brazil chooses a new president on sunday hell inherit a struggling economy that may no longer be able to support the average retirement age of fifty five. And after years of protests against gentrification demonstrators pushed google out of berlin. Im Stephen Beard slumberland thanks for joining us the u. S. Economy beat expectations in the Third Quarter on the back of the strongest Consumer Spending in nearly four years the Commerce Department said Gross Domestic Product the total values of goods and services produced increased by three and a half percent from a year earlier the sharp rise in spending help offset a big drop in Trade Companies bit more to increase their inventories which also helps all sort of Growth Analysts are expecting the economy to expand by around three percent this year. And were joined now by our financial correspondent in new
york yes korda yens another quarter of solid growth in the u. S. Donald trump is looking like the business friendly president that he advertise themselves to be. You know if we look at the entire year if were really going to read three percent of growers we havent seen anything like that since Two Thousand And Five thirteen years i mean first of all we shouldnt forget that us president inherited a pretty decent economy the economic recovery was already underway for six seven years before dawn of talk of what does help is that we almost have full employment in the United States so the labor market looks pretty solid and then on top of it early this year donald trump is that ministration fired this huge tax cuts and that was another incentive for the u. S. Economy. Good point yes the tax cut being credited with a lot of this growth but at the same time there must be a limit to what it can accomplish what are you hearing there. Well i mean one of the problems is when you look at the u. S. Corporations for example the tax cuts for Companies Got cut from thirty five to twenty one percent the big question is what those corporations are doing with that money and a lot of this money was not spend for investments but for higher dividends for mergers and acquisitions for huge buybacks of their own share so that was good for wall street that was good for investors but not necessarily for the entire country and what we also shouldnt forget is well this money is missing in washington sold takes guts means that death in the United States its increasing if im not mistaken just in the last year. The u. S. Government had to pay about Six Hundred Billion dollars just for interest on their debts that could actually be a problem if were looking ahead to the future that that is increasing quite a bit so a double edged sword with these tax cuts are there for us in new york against thank you staying in the u. S. The f. B. I. Is reportedly examining whether American Carmaker Tesla misstated information about the production of its model three sedans and its business going back to early last year thats according to the Wall Street Journal in july Two Thousand And Seventeen tesla c. E. O. Elon musk tweeted that he was expected spec to be producing Twenty Thousand model threes a month by december but the carmaker produce just Twenty Seven Hundred for the entire year last month the u. S. Securities and Exchange Commission settled separate civil charges with tesla and moss for misleading investors. As brazil prepares for a Weekend Runoff Vote its economy is widely viewed as
a disaster one problem is the Pension System one of the most generous Retirement Programs in the world brazil cant afford it now and its about to get worse. Harms already gave us this report. Rush hour in sao paolo in brazils biggest city many people work far more than eight hours per day some start at a very early age so they can retire at fifty five and then continue to earn seventy percent of their final salary for the rest of their lives for decades thats been the norm in brazil. Its what suze that was hoping for after working as a teacher for more than thirty years an accident before Retirement Led to her salary being cut now the sixty three year old gets less than the minimum wage and now i have no money no its inhumane to have to live on a minimum salary everything is getting more expensive with inflation and all that
and people keep on getting a salary which now i can live on capitol hill so its very difficult. With less than Two Hundred Dollars a month she can barely afford more than her rent and although she bolsters her income by selling handicrafts she feels desperate about the future. They all know failure day i have no idea what to do and when i have faith in god that he will open up doors for me that i really dont know its very sad you know they they. Moved into this church. Says that situation is not an isolated case poor and middle class retirees especially from the private sector are finding it harder and harder to survive on their pensions so they keep on working sometimes for decades after retiring. So i paid in more than twenty times the minimum wage and so did my company and i did that for ten fifteen
years then they reduced it to a contribution on ten minimum salaries that was so in a nutshell i ended up retiring with only one times the minimum wage. And Life Expectancy is increasing in the country its a demographic change thats leading to fewer younger workers supporting more retirees in addition to the recent years of limited or negative growth and the very generous pensions granted to the Public Employees rather less rapidly heading to a point where it was no longer be able to meet its pension obligations. In twenty seventeen the government ran up a deficit of more than Sixty Billion Dollars in order to cover pensions despite this unsustainability an overhaul of the Pension System is politically difficult to achieve. Usually their government and. Remembers the problem only when there is no crash of
a loved one. And not because you need to have a good system in order to people feel more secure and more comfortable with being who are in season. And so all the time that they have tried the reform always seen these things of cutting spending and not being provided in a better therapy. The issue of Pension Reform is complex and controversial and neither of the president ial candidates facing off in this sundays Election Runoff have clearly addressed it however its one of the most urgent challenges the newly elected congress will face in Twenty Nineteen. Brazils pensioners will no doubt be pleased to hear that the worlds billionaires became twenty percent richer in twenty seventeen and the report by swiss bank u. B. S. And auditor Pricewaterhouse Coopers says there are more of them than ever before more than two thousand fact together they are worth up to eight point nine trillion
dollars the us still has the greatest concentration of wealth held by billionaires but china is making them faster with two new billionaires every week according to the report. A booming startup scene is facing off with anger over rising rents in berlin just look at google the u. S. Tech firm had planned a multimillion dollar campus for startups in the city before protesters forced it into a rethink. This Construction Site was scheduled to be open for berlin fast growing startups im a Twenty Nineteen the tech giant had wanted to give the scene a massive boost with Google Campus Three Thousand square metres at a cost of fourteen Million Euros the companys change of plans came as a huge surprise if you. Didnt feel certainly learn something from the many conversations we had this is actually the wrong place for Old Pure Startup campus what we are where for protest but we dont allow them to dictate our actions and
wish them to a lot. Of us. However it certainly looks as if google threw in the towel since it unveiled the project two years ago there have been frequent protests local residents fear the campus with speed up the pace Of Gentrification In September Activist occupied the Construction Site now the building is home to social Projects Google is still paying the bills but its donated the office space to the better place Internet Platform as well as karuna a charity that helps children and teens in need. We would have liked google to move in because we benefit greatly when organizations and businesses operate a social cooperatives like ours help connect young people from the streets and enterprises and we cannot do it alone we have to cooperate you can align it with. The business friendly free democrats so the failure of the Google Campus is a disastrous signal for berlin as an investment location. It sends the wrong message to the world that companies are not welcome here so there will be no new jobs which we urgently need and the capital. Activists disagree and call it a victory for their neighborhood. Its terrific that the companys reputation has been tarnished we hope the message spreads to other companies thinking about coming here to invest and create start up pops a Local Population Doesnt Benefit at all. Google has promised to pay for the lease and utilities for the next five years so the controversial start could eventually end up boosting the tech giants image. And thats your Business Report you can find more line at. Dot com im Stephen Beard thanks for joining us. From. The. First day of school and the. First clueless. Stores grand moment to run join the arenas hang on churning things. In our interest to turn to soraya entering into and returns home. Climate change for. Waste. Isnt it time for. Eco africa people and projects that are changing oh im sorry for the better its up to us to make a difference lets show our. Farming magazine. W o five. I want to see Whats Going On and ologies emerges then you know what you have to do
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