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tv   Business - News  Deutsche Welle  October 3, 2022 4:45pm-5:01pm CEST

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station this 83 percent last month, official say, an expert, believe it higher. you take a look at how people are coping galloping crisis. i'm chris over. welcome to the program. europe's double digit inflation is top of the agenda. as you finance ministers gather and luxembourg. 2 blocks record high energy prices. the primary driver of european inflation are expected to come in for its close scrutiny. consumer prices have sort since the beginning of russia's warning grain and germany is decision to set aside $200000000000.00 euros as part of a gas. capping mechanism is also seeing increasing criticism. all right, let's get more in this from our correspondent christine manuel in brussels. christina, tell us more about the friction that has been on the rise among you officials when it comes to this gigantic german, a package. that's right. it is
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a gigantic package. chris is the biggest here in the european union. effectively. what this means is that german businesses will qualify. we'll, we'll be getting a bigger subsidy and then their business peers within the rest of the european union and thus getting a competitive advantage being given a competitive advantage. and that has strong criticism or from other member states who feel that it, it is unfair in a sense that some countries like germany and others who, who have the scope to go bigger on these rescue packages are effectively pursuing national interest at a time where you would want that solidarity that this is damaging to the solidarity it leaves. maria drug, for example, was one of those voices critical. germany's plan. he said that it was simply unfair to, to member countries who just couldn't do as much who couldn't, who couldn't borrow as much, for example, heaven into countries like italy who couldn't afford to give such a big stimulus package that european commission for it's part has said that it's
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going to be looking at to see what the impact of germany is. 200000000 stimulus package will do in terms of competition with in the u christine. but is this a disparity that you're talking about? you know differently, you countries being a different positions to, in order to support their economies as in the spirit is possibly addressed by the windfall tax, or which the e wants to charge and of g companies with well, that is an attempt, chris, but if we, if we look at the numbers, you'll see how i it doesn't work effectively enough to, to level the playing fields. i mean, the ears when for tax we'll aim to raise about 140000000000 euros. right. put that next a journalist, germany loans 200 years, 200000000000 years and you can see how, how that doesn't add up at all. because at 140000000000, for example, has to be distributed among all the member states. so you can see how that is difficult to do, added to that you've got to look at the inflationary pressures. i mean, you've got some countries, italy among them, for example, literally facing recession over that. so this one for tax isn't going to be enough
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. the other challenge is that you've got some member states who have been calling for a price cap on all the guests, that importer to the e. u. they've not been able to agree on that. so certainly it's going to be a difficult period going forward. and that is why, how to tackle inflationary pressures, for example, is right at the top of the agenda of these meetings that are taking place of a today's d. w correspondent, christine montoya, and brussels christine, thank you. are soaring power course. i huge problem for many companies around europe and germany as well. of course reducing energy consumption is an option for some while the same time scaling down production. but some companies simply cannot cut back on a juice, and they can't just shut down either. d w's meal dry kazora reports. it's hi, precision work for more than a 100 years german company atlantic has been selling abrasive, grinding wheels. each one is custom made to the client's needs. most of their
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production is for export to ball bearing manufacturers, medical tech companies or order suppliers. the companies or the books are full, but the $200.00 employees are concerned about rising energy costs. electricity prices doubled in recent months and the price of gas has gone up $6.00 fold. as we advance as we were forced to sharply increase the prices because we expect energy prices to continue to rise, saying that we're now budgeting at the current high price. so from that, so the question is, and our hope is that our loyal customers will continue to order from us because our products are of high quality and are quite simply necessary for addison, i fuck him off then the traditional company has to buy gas and electricity on the so called spot market, because it previous energy suppliers have filed for bankruptcy. that means atlantic can't make any long term agreements for their energy needs. rising gas and
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electricity prices are having an immediate effect on production costs. that's because these wheels have to be baked in high temperature ovens. this is al, adding substantially up to now there's been no support at all from the state. we've applied for support for the high energy prices. but the application was extremely bureaucratic lighting and it almost seemed as if obstacles were being deliberately put in the way so that as few companies as possible could receive support. i'm at work. this vanish on 10 in law had the understood from hong if energy prices continue to rise and a recession materializes, a company like atlantic stands to lose a significant number of orders without and we wouldn't lay off employees. we'd put staff on reduced hours like we already had good experiences with this during corona virus. how it but it would still be difficult for our 2nd likely. we have certain costs said even this measure count, cushion of our quotes are like this outfit icon. but some businesses count,
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absorb the rising costs, like this bakery in bon. after more than a 125 years, the family business is closing its doors from anthem one up for 1900 euros of electricity a month, which is a lot for a small business to 3800. you can compensate for that with higher prices. it's just not possible off on gasket on finish. even if a government rescue package for small businesses materializes, for some, it's already too late. another, some of the other global business stories making news or big classes considering 8 daily oil production cuts. which sources say could now top a 1000000 barrels per day from previous estimates is re to it would be the largest since the pandemic. again, delegates insist reduction figure has not been finalized yet. the british government is driving one of the most controversial parts of the many budgets announced by prime minister and lose trust. 10 days ago,
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treasury chief quality corps tank says it will now keep the 45 percent tax rate for high earners unchanged economy. see the many budget will lead to excessive borrow. written to largest mobile network operators, vodafone, u. k, and 3, u. k. are intensifying discussions over combining the operations that according to a sky news report, the goal is to have a deal in place by the end of the year according to the board. both operators, phase rising investments as they build out 5 g networks, inflation and turkey john to a 24 year high one week after the central bank cut interest rates. again. inflation now stands at 83 percent according to the state statistics agency. however, an independent inflation research group claims that the actual rate stands at a whopping 186 percent. the turkish government had said inflation would fall with its new economic model, which prioritizes low interest rates,
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to boost production and growth. and how are people in turkey coping? take a look, thought prices are high. we're really struggling. we have 2 children who go to school. we are only earning minimum wage, and it's hard to make a living on the position. they may 19 years old and i'm not hopeful. i don't think the situation here in turkey will improve. you have also could i'm, i don't see a future here. i actually want to go abroad. this is true for most of us on which and then we get chinese influencing mind you think? i don't think inflation is around 80 percent. it's much higher in. i don't know whether the official figures are true or not above the inflation. i feel is much more like you. that's why it's getting harder and harder to live and huge video. and i saw a difficult situation there for people and turkey acro make a cheese here, my colleague from d, w, business acreage. remind us, what is the cause for these galloping prices and turkey was short answers. the course is, ah, the, the,
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the climate policy of federal government which is based on cutting interest rates more and more to drive a production and growth to, as we, as we heard just earlier. and this is going on since at least a year now because they started to cut interest rates back in september 2021 based on the new economy model that is aimed at driving the the growth by cheap loans so that companies can borrow money on cheaper rates and drive up an employment and therefore drive up exports and making imports unattractive. so that the pressure is broken. i want to touch the rest of that touch connie me, we'll be back on track again. but so far, what we have seen is otherwise the turkish government has said that inflation would fall with this new economic model that you mentioned there. but inflation is only increasing in line with what we know from traditional economic students. does that
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mean that prime minister everyone will change course any time? so no, he made it clear several times recent. the won't change course because he sees interest rates as his biggest enemy and he signaled just last week that they will, they will go down even further. that means that we will, we will expect more inflation and coming in coming months. and the thing is, um, with this new economy model, they haven't really achieved their targets, which was like i said before, which was driving up demand untouched era or were foreign currency. but this didn't happen this, this, this cheap loans over turkish. they are not directly going to production, but they are basically going to conversion to foreign currency and stocks the, the cash reserves of companies because the, you see the, the, the, it's a very volatile comic situation. as you mentioned, volatile economic situation. we've seen people complaining saying it is at the
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moment to cope with galloping prices because people go to the poles next year and turkey. what does all of this mean for the government? well, if you look back 2021 years ago, turkey was in a very similar situation and that's what pro, take a government in power in turkey. so we might as well as a digital moment, 20 years 21 years after. before that we're still, we're still yet to see what is the alternative. for example, what's your position to say? and we will probably soon have says economic a g d w business like from thank you. now this story of the linton chocolate bonnie is slow and steady wins the case luxury charles maker lynde has won a case against a supermarket. copycat, or should we say a replica rabbit? switzerland's highest court has ruled that
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a chocolate bunny from 2 local units of discounts. supermarket leaders to similar to the famous lint version, the gold wrapped chocolate bunny with the bell is one of lynch flagship products. the swiss company has gone to court many times the recent years to protect its trademark. and that's are shown for more check out our website at d, w dot com slash business. cuz cobra in berlin, thanks for watching. i was successfully, ah, with with
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ah, back to the moon. after 50 years, humans are ready to fly to via satellite. again. it was the goal that this mission, german astronaut, i'm exam back guest explains the new race and has played the expectations of research and the impulse in the new la mission for the exploration of mars. i to morrow today in 30 minutes on d. w. o. oh, and william had a bank on gonzalez with i and was how, you know, if i had known that the boat would be that small,
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subscribe to d w documentary on you to do oh. this is d. w. use live from berlin, ukrainian forces achieve their biggest breakthrough in the south of the country since the war began. they have been pressing their offensive in the southern region of hair, san juan, for regions illegally annexed by moscow last week after a sham of referendum, orchestrated by the cramp also coming up.


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