the u.s. federal reserve raises its key interest rate for the second time this year by a quarter of a percent to its highest level since the global financial crisis and it points to further hikes this year also coming up as britain still struggles to find a pop way outof the e.u. irish foreign minister simon company tells t.w. the brics it is a tragedy for all concert. band how fans going to see the world cup in russia will have to have deep pockets. face is your business update on how and i'm free and glad you could join me now we start aid in the united states where the u.s. federal reserve has raised its key interest rate to its highest level since two thousand and eight now analysts were largely expecting this rate increase at the end of the u.s. federal reserve's two day meeting and they caught it a quarter point rise to announce it at one point seven five to two percent the announcement from fed chairman it during power resilience the job market strength

and inflation that's finally nearing the fed's target level but the move also means consumers and businesses will face higher loan rates over time and i want to bring in our financial correspondent in new york now you say yes how is this news going down there on wall street. well we see a mixed reaction here on wall street slightly to the downside higher rates are good news for financial institutions so bank stuff for example trading to the upside on the other side higher interest rates or could also drive for mortgage rates higher and that does put some pressure for instance on the housing stock so a slight negative reaction on the right decision by the federal reserve and he had said the rate rises this year. yes the federal reserve is unusually clear on the past looking forward to overall the

federal reserve expected for interest rate increases in twenty eighteen so we've seen two already meaning another two are to come and then maybe also a couple of more rate increases and twenty nine thousand so the next rate hike probably in fall maybe another one shortly before christmas by the way the federal reserve said that the unemployment rate is going to drop further probably to the lowest level in almost fifty years or i know wall street for us yes quarter thank you. well the german or to make a fog fog it has agreed to pay a one billion euro fine as a direct consequence all diesel gate the company accepted an order by german prosecutors which saves them trying to fight it in court now v.w. has already paid a total of over twenty five billion euros in the diesel gate scandal fines and costs mainly going to u.s. authorities. v.w.

is reeling after being slapped with another billion euros in penalties on top of those that the company must pay in the u.s. as a result of the emissions cheating scandal around eleven million vehicles worldwide were involved faults wagon said it would not appeal today's decision saying in a statement. folks fagen by doing so admit to its responsibility for the diesel crisis and considers this as a further may just step towards the latter being overcome. lower saxony state attorney says the fine must be paid within six weeks the decision doesn't affect the civil suits against the carmaker including those brought by people who purchased the company's cars the criminal investigations into forty nine people connected with the scandal continue in the city of pounds five. well the british government has been forced to compromise agreeing to give parliament a biggest say in bragg's at negotiations rebels from all parties want to avoid

a hard break sit and keep close to you toys once for to leave the block. we are used to the right age three hundred twenty four the nose to the left two hundred ninety eight so the arteries are a bit we are used and narrow victory for to reason may made possible by some last minute concessions to pro european m.p.'s on the streets to those who oppose britain's departure from the e.u. continue to ensure their voices are being heard. the path towards brics it is still far from clear. and there are big questions looming over the future trade relationship with the e.u. after britain's planned exit from the union on the twenty ninth of march two thousand and nineteen. there's a lot at stake for businesses on both sides germany is the most important of britain's e.u.

trade partners and in two thousand and seventeen exported goods worth around eighty four billion euros to the island goods worth some thirty seven billion euros travelled in the opposite direction. meanwhile the e.u. sends goods worth a total of around two hundred ninety five billion euros to the u.k. british exports to europe are worth about one hundred eighty eight billion euros. so it's hardly surprising that companies a nervous breaks in negotiation period is more than half way through and businesses still don't know exactly what conditions they should be preparing themselves for their demands for answers throw louder by the day. but as you just heard there there's still no clear policy stance on bragg's it in london even after parliament there wants to have the last word or breaks it but while the brits are moving out the irish are cozying up to the e.u. and its biggest power in an exclusive interview now the w.'s kate brady spoke with

irish foreign minister simon company. do you think that island has the ability to replace the u.k. in that gap that's going to be left behind after tax it no i don't think we can ever replace the u.k. i mean the you know i've said that brags it really is a lose lose lose for everybody i think i think britain's place in the world will be weakened both politically and economically by their decision to leave the european union because they will no longer have the solidarity and support of. half a billion people in the same way that they've had today so i think the european union will be much weaker because britain isn't part of it any longer i think our limbs is going to face real difficulty also in the context of bragg's it so nobody is winning out of this i think it's a it's a political tragedy to be honest but it's happening so we have to face this and we have to look to try to compensate for the absence of britain and the european union in the future and that is why our land is spending a lot of resources on expanding our networks across the european union in germany

and france in particular so we're hearing this call as you say from to blame from berlin and paris as well from law unity in the european union what do you see is the solution as to how the how the european union can overcome these risks to the union stability especially in the face of nationalist populism. i mean my answer that question is proactivity you know if we try to just maintain the status quo but to allow populists to promise the world even though they counter liveris to create fears on the back of you know genuine concerns around people security and terrorism and radicalization and so on if we allow that type of populism to take hold well then managing a politically is going to be very very difficult in the future for the european union so this is the time for the center to stand up in terms of politics to build narratives and visions that can excite people in terms of what the european union

could together as a collective can do as a power. the force not only for our improving quality of life across the european union but also to impact positively in other parts of the world that are going to impact on europe in the future if we don't become more proactive that is why in my view the european union establishment the institutions of the european union need to be talking in much more ambitious terms about a foreign policy agenda particular in the middle east and africa particularly in relation to the transatlantic relationship in the future which today is somewhat under strain. but but which is hugely important for global stability in the future and we need to remember that us i when we talk about possible retaliation for our decisions that are being made in washington recently. that was the view of the irish foreign minister simon company speaking that to all kate brady now all of gross in spain all the latest group to be hit by u.s. president donald trump's protectionist policies the u.s. commerce department first announced it would be stopping tariffs on spanish on its

back in january now it's made the decision final saying the products are being sold fall below market value in the united states cutting promised in california. well russian news agency task says it expects one to hoff million fans to visit the world cup spending a total of two billion dollars during their stay of the tournament speak hosted by eleven cities across russia but for thousands of fans travel and sleep is expected to come at a premium. world cup fans are already adding a party atmosphere to the streets of russian host cities. for many it's the trip of a lifetime and they fork out enormous sums of money just to be here but for some cost are likely to blow out the russian government regulates hotel prices but that doesn't mean they have to let their rooms go cheap. it was this one using its experience of such elan big games russia was able to regulate the prices for hotels

in each region the price depends on how many stars the hotel has. many hotels like the three star slav younker hotel in moscow will take advantage of the price regulations despite the authorities saying they've already find more than five hundred hotels for overinflating prices moscow's five star hotels are charging up to eight thousand five hundred u.s. dollars a night that's more than the average annual salary in russia many fans will have booked train tickets in advance but train journeys between venues can last up to forty two hours for some flying might be the only option. according to research by the r.b.c. group a leading russian business media outlet flight ticket prices have gone up over two hundred percent to some world cup destinations. that's it you're up to date with the latest from the world of business for more head to our web site d w dot com slash business or find us on twitter. to school business i'll be back

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