markets a much needed jolts of good news. blown welcome to the show. i'm super busy in berlin. a prices for gas and oil continued to drive your german consumer prizes upward in june. that's even as government relief efforts started to show some effect. household energy costs jumping almost 41 percent from a year earlier. they were also up from the previous month. natural gas heating, oil, and electricity prices also continued their rise. over all your on your inflation actually fell slightly in june to 7.6 percent. that's thanks to government measures such as subsidized, train fairs, of the new figures will likely prompt more calls for wage hikes among workers. despite fears that could drive prices higher of the head of germany's trade union confederation disagrees. does in their dad. citing in the current situation, the discussion about a wage price spiral is wrong. it's one sided, and it simply doesn't reflect the facts,

things they are doin. we have to talk clearly and urgently about how energy costs can be managed for households and businesses to him. so if he retrieve, it's about the prospects for 2023, and above all it's about doing everything possible to prevent a recession. i know it's, it's soon to say in the stabilize work places to maintain value chains and to secure employment position. would have germany's largest labor unions. i g ma tall which represents auto and steel workers among other groups now says it wants an 8 percent hike in wages for workers. for one year, i spoke with myself, roger about that he said of the german institute for economic research in berlin and asked if such demands could indeed lead to rising consumer prices. there's certainly a danger that wages could rise too quickly and to too much. but there's also risk that wages are increasing too little. that's equally threatening because if wages

increase very little people will have less purchasing power will consume less and they will also be bad for companies and bad for employment and might also drive the economy into recession. so it's about finding the right middle way, 8 percent, which claims by give me time is in my view, not excessive. we know historically they've, we on 60 percent of what's being asked, that would be below 5 percent wage increase with an inflation rate of 78 percent for this year. this still means negative we wage growth. so i don't see this as excessive but, but clearly one has to differentiate across sectors and companies. do you believe that the danger of a wage price spiral has grown or that it even exists? a given for example, the tight labor markets and the rapid inflation growth we're seeing we don't see a wage price spiral at the moment. wages in germany should increase somewhere between 4 and a 4 and a half percent this year with an inflation rate of 78 percent. we see many big

companies actually having very good earnings, very high profits. we see also that unit labor costs a measure of productivity is quite decent in germany. so at the moment we don't see that, and the risk of that is not particularly large. also as less than half of all jobs in germany are covered through collective bargaining agreements. so short one cannot, will allow that possibility, but at the moment we don't see it quite the opposite. receive it. wage growth is relatively modest compared to the past. you mentioned those earnings that we're seeing in companies right now. other nations are introducing windfall taxes to take away what they see as an unfair earnings, especially from companies that are profiting from inflation. do you believe such a tax is necessary here in germany or the employers in general need to do more to alleviate the pain of inflation? winful taxes in principal make sense. they're very hard in practice to implement

because you have to judge which sector is affected. and what's a windfall tax, i think, is much more important to really look sector by sector, where are companies quite profitable, which can pay higher wages. that should be the 1st and foremost priority. because that's the best way for workers, for employees to cover themselves to protect themselves against higher inflation than we must not forget. inflation does not mean that inflation coming down next year. and 2 years time that prices will go down. prices for energy for food will stay high, and the only protection for permanently higher prices is permanently higher income . and that means i a social security contributions or payments by the government to, to affect the people and higher wages. so that's the best protection against inflation. there is that was marcel fracture. no inflation is visible around the world at the moment in new york. it's colliding

with cities so called post corporate summer. more people are moving to the city than before the pandemic. that means rent prices are soaring. a combination of rising housing costs and growing inflation are now pushing low income new yorkers into existential worry. oh, the will to protect his families whom kathy indian, bravo, boys, he's fighting back against a rent increase my bill. and who to looking to you know, that they would send us tenets, allen, to the street where no fair life is possible. i mean, you know, it's live for tens of thousands life on the street is already a reality. homelessness in new york is the highest. it has been in almost a 100 years. the main cause to little affordable housing. more people are returning to the city than before the pandemic. and they are looking for

more space that's driving up prices. average rent price is up by a 3rd compared to 2021. and so our evictions, low income families like that of fabian bravo, are now in a bind nor our brother works as a housekeeper, 7 days a week. yeah. she's already struggling as inflation as biting into the family budget. we're kicking before i go out when i and i the pounds. now he's got 2 nice things on the phone. so we have to change a little bit before we live, like 2 more tickets. we buy only one, so we add this to way. so now we why more base double cucumber. um, still larry, we looking for the idea of the family of 5 is crowned in 2 or 3 bedroom apartment that they're building is designed to be affordable. the city regulates their rent increases the increase this year will about $70.00 a month. fabian bravo had

a work injury and was unemployed. that needs a 17 year old daughter, samantha, help with extra cost instead of paying for. let's see that when i, when i'm gonna stay, some must have this done. my panel cornel signals. they are killing teenagers dreams. if i don't speak out, if i don't raise my voice who will give her? i don't want that. as i was, i had to do it for my kids in for my family, and i me, me for me of them as equals the city appointed board decided to raise the rent of 1000000 apartments in new york this summer by making his case to them fabian wants to keep it when i'm affordable in the future. he tells the board about the anxiety inflation is already causing his family and he ends on a plea. no more rent increases. and on the eve of today's highly anticipated us update on consumer prices, a fake inflation report has been making the rounds. the file which spread virally

online, briefly weighed on us docs on tuesday. the fabricated document mimicked the official formatting of the month, monthly release. it claimed the inflation rate rose over 10 percent. that's much higher than the expected 8 percent jump. the u. s. bureau of labor statistics called out the fig report on twitter as it began to gain traction online. or let's go to some of the other global business stories, making headlines, spain plants to impose new temporary taxes on banks and energy companies, which would bring in 7000000000 euros over the next 2 years. government leaders say parts of the windfall profits generated by rising prices. quote, must be returned to citizens instead of fattening salaries of big business leaders and hope. a tokyo district court is ordering a former bosses' of tapco to pay $95000000000.00 us dollars in damages for the fukushima disaster. it determined executives at the energy utility company could

have prevented the nuclear catastrophe on the east coast of japan. more than 11 years ago, law towns in shanghai and other areas of china have battered the world's 2nd largest economy. yet export growth in the country has once again beaten expectations. and the 1st half of this year exports increased more than 30 percent from the same time in 2021 imports. meanwhile, rose nearly 5 percent looking at the past few months. china has managed to escape and especially hard fall out from those strict lock downs. in shanghai and other cities, exports did initially fail to keep pace creating disruptions and global supply chains. since then, exports have picked up at a steady pace. beating expectations are correspondent, i pay as more, says may with the overall improvement in containing the colon of iris. the fact of various policies to stabilize growth gradually emerged and the orderly progress of foreign trade enterprises resumption of work and production,

especially the rapid recovery of imports and exports. the overall growth rate of foreign trade pickup is significantly, but now there is the latest wave of all. we can be a 5 in saw high several town councils of vice people to prepare food for 14 days. people worry about another lockdown and not just some high across the country. the number of cases are at the highest in most, multiple cities impose in some restrictions as these will all probably lead to future supply chain disruptions. due to be correspondence, those on hon there from taipei, will businesses around the world have been dealing with supply shortages for more than a year. now, usually as a result of the pandemic. now, in japan, there's a shortage of what sabi go. this time the blame falls elsewhere. a diner great fresh was thought be over his noodles in the near future, adding the green condiment might be a rare privilege reserved for special dishes. lesser in the past we served all the cold, so been oodles with a piece of ra, a sabi,

but now we can no longer do that. due to insufficient supplies of with sabi, we've had to change our menu and go so that i like without, with a more like 2020 report from japan's ministry of agriculture, shows that the production of with sabi has declined by more than half since 2000. and 50 nice. she attributes a scarcity to climate change. with darby farmers whose crops were washed away by a typhoon in 2019. agree? greg. second corner. co nice. the neighbors was sabi, fields, turned into rivers. money and large stones rolled down from the mountain after the typhoon, c, mazama. i felt the power of the flood says as it happened in october and since it was about time to harvest was sabi, who was in a large amount of was sabi was washed away or buried in the sand. but for now, customers at onesies establishment can still saver the condiment. his

reminder of the top business story were falling for you. prices for gas and oil continued to drive german consumer prices upward in june. household energy costs jumping almost 41 percent from a year earlier. natural gas heating, oil and electricity prices also continued their rise. over all year on year inflation actually fell slightly in june to 7.6 percent. thanks largely to government measured measures such as the subsidized train fairs. that's the partial thanks for watching. ah ah, with

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her women ninja these into this week were ah ah, this is the w news live from berlin, u. s. president joe biden arrives in israel kicking off a high stakes trip to the middle east. b u. s. president declares his country's bone deep bond with israel. but for days of difficult diplomacy lie ahead. also coming up.