now on the business program. you're up to date now on t.w. news if you stay with us. what's . going to out. of atlanta going on a polar expedition. don't miss this story the thomas j. should johnson takes you along on a thrilling and bone chilling journey. week you can discover the story and look a. story on instagram.

fun be told. his work goddess for trying out. the maestro and the most. beethoven twenty. ten years after the collapse of lehman brothers corporate the debt has almost doubled but that's ok as long as we have low interest rates but what if central banks change their monetary policy. also coming up vietnam is a just up and coming power house to take a look at what's behind the country's economic transition. but come to a business the collapse of lehman brothers back in two thousand and eight plunged

the global economy and to a crisis ten years on things are looking up again corporate profits are rising and wall street is celebrating one record after the next but the growth has been fueled mainly by low interest rates which prompted a lot of companies to go into debt on a massive scale. tesla is ten billion dollars in debt. net flix eight billion dollars. compound lloyd germany's leading shipping company is seven billion dollars in the red these are just three examples of loose lending never before have companies worldwide had such easy access to money as in recent years. according to a study by the mckinsey management consultancy worldwide corporate debt has increased to sixty six trillion dollars almost double what it was at the start of the financial crisis ten years ago. money is never been as cheap as since the

financial crisis central banks flooded the markets with trillions to help financial institutions and economies get back on their feet. the u.s. federal reserve looks set to raise its key interest rate again the european central bank on the other hand is not ready to take that risk in fact the e.c.b. is still in crisis mode with its zero interest rate policy known. still comes to virtually nothing some fear of the accumulated corporate debt could trigger the next global financial crisis. all the money that was borrowed has to be paid back if interest rates go up repayment will be more expensive and may have to be countered financed with new jet if that gets compounded by an economic downturn many companies could find themselves in a tight spot. so unlike ten years ago it's not the banks that are in trouble but the company so are we heading into the next crisis let's ask such

a banking expert and professor at the frankfurt school of finance and management good to have you with us to tell me how worried should we be about to the enormous corporate debt. i think given the large amount of debt this is definitely something that regular as a regulator should have an eye on and watch closely but i think we need to know more important question to ask is basically for why do these companies take on that amount of debt is this just to repay and refinance much of an existing debt is it because i have profit investment opportunities and what companies are the other ones which are in very cyclical industries such such that an economic downturn might really be hard for them so all of these are kind of questions we have to ask ourselves because before we can actually draw a conclusion as to how dangerous the situation actually is all right so let's ask that question do you know what sort of companies taking out today and for what purpose. i think to this varies quite

a bit but what we should be want more worried about is then to what extent that money is actually going into the ears of highly leveraged segment of the economy and to an end and what part for you is this that actually has been had is actually is a bang's or is that actually other investors and i think particularly in the us we can see quite clearly that the. major pot these days of the loans to the highly leveraged companies actually had outside the banking system which is unregulated and this is something we should be more worried about so so the risks of beta in the begin the united states you say on a corporate level then in europe. i think this is the case i think on ever should we see in europe because also of the sovereign debt crisis that followed more of the leveraging and higher reliance on equity but in the us we see

the opposite actually the equity percentage in the capital structure is going down that is going up and a large part of that is actually also going into repurchases of shares which which actually even even makes these a capital structure riskier than so just very briefly if you would how do you view the role of central banks and their monetary policy of low to no interest rates here. i think there's a there's a substantial rhona things a combination of low interest rate together with the quantitative easing we have seen just pushed investors such as insurance on for example have a fixed return the need to into riskier segments which then of course decreased the prize for risk and then enabled companies to borrow more so they have a substantial part in the rise of corporate debt world wide. in their banking expert and professor at the frankfurt school of finance and management thank you so much for your time. in the age of online giants such as amazon the high street has

come under pressure germany's two big department store chains signed a deal to merge this morning the former rivals cashed out and colorful aim to cut costs through synergy the same time before they are on the channel retailing offline and online unions are worried to their jobs will be slashed how for belongs to the canadian hudson bay company to the austrian signal group the antitrust authorities still have to give their approval. so this is of course a very big topic here also on one of the big shopping streets in frankfurt where our financial correspondent wasn't standing by with a cow for colorful galleria store behind him is the news reason to celebrate. no it's not monica not for the people who work for call for five thousand jobs are expected to pick up immediately and also people who remember three years ago in

twenty fifteen coal for food was still a relatively profitable company this is got news this is not good news in twenty fifteen hudson's bay took over coal for the canadian retailer and investor and it turned out that the canadians completely misjudged the opportunities but also the risks in the german retail sector hudson's bay also contributed to the problems of coal for by increasing the rent that coal force has to pay to a level that makes it nearly impossible for coal four of to make enough money to pay for those roads. department stores have turned into something like dinosaurs now all around the world certainly shopping in cash and powerful for what is next what will those new merged department stores look like. well it's likely that they will look very differently in three years' time it's also likely that they will not keep their names you know monica the first thing that you would notice if you

went into one of those department stores is that because to move base is relatively old retail experts have found out that many of the young people here in germany don't even know the brand names of color for or car start so of course the retailers have to do a lot in order to become more appealing to the younger crowd they have to create a shopping experience that's from and not vintage oh right well good luck with that . enjoy your shopping spree now. the passengers are europe's largest budget carrier ryan air will once again have to brace themselves for strikes the airlines pilots and cabin crew in germany assets to stage a twenty four hour walkout starting wednesday ryanair staff are calling for better working conditions and higher wages thousands of passengers in germany and elsewhere could have to deal with canceled flights and long delays last month

strikes by ryanair pilots are grounded four hundred flights affecting fifty thousand passengers across europe. ten countries that are part of the association of southeast asian nations or ozzy and for short a currently meeting in vietnam's capital hanoi for an economic forum the economics currently the second fastest growing economy in the region after china w.'s mentally ill across the cleric's travels to the country to get a taste of the nation in the midst of an economic transition. she's carrying on a tradition that no longer carries the economic waste it once did. here and how long bay in northern vietnam fishing used to be the main source of income. but nowadays many people have set their sights elsewhere taking corporate jobs and fishing only on the side. vietnam's economy is expanding rapidly the

annual growth rate is over six percent and with the free trade deal with the european union jus to be ratified in january that figure could draw its. move sixty five percent of terribly hard certification would be standardized within a period of five to ten years one hundred percent of existing sorry years would be lifted this would give vietnam an incredible competitive advantage in the region but. this factory in the capital hanoi its operation by german company b. holland it produces medical equipment for the administration of intravenous therapy . devices like these are hospital staple no wonder then that they're sold all over the world this factory opened in twenty fourteen and since then the company's invested over one hundred million dollars in vietnam. in sebelius monday including the investors are welcome here but of course you should make the mistake of

thinking doesn't work the same way as they do in germany you need to familiarize yourself with the local way of doing things i was quite advise anyone considering investing here to go for it but get the appropriate advice. for vietnam's young population the country's economic expansion presents the prospect of living a more prosperous life than their parents did. and that's your business update here on t w don't forget you can always find out more on our website. or you follow us on facebook and twitter i'll be back with the latest at the top of the allison and .

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