business, stay cool. at that time again, the w business welcome. it's the most aggressive monetary tightening since 1981, the u. s. federal reserve raising interest rates by $75.00 basis points, and it's the 4th rate hike this year. the u. s. central bank is battling to tamp down on raging inflation, which is running at its fastest for 40 years european markets reacting to the news today, leaping in the morning to the highest level in 7 weeks. that's after the chairman of the fed predicted future rates rises, would be less aggressive than previously thought is what he had to say. we, we do see that there are 2 sided risks. there would be the risk of doing too much and, and, you know, imposing more of a downturn on the economy than, than was necessary. but the risk, the risk of doing too little and leaving the economy with this entrenched inflation, it only raises the cost. if you fail to deal with it. in the near term, it only raises the cost of dealing with it later. or who better to break this down

force than your kramer chief economist comments bank. thank you very much for joining us young. and 1st of all, your reaction to this right rocks were this rate hike by 75 basis points yesterday was expected, expected bass expected by the market. and it was also clear that the central bank would not the announcer explicitly a father $75.00 basis points increase. this is clear and that the fed said this is data dependent. and i expect the next step to be 50 basis points. ok. and looking at the broader picture, the theory of some experts has been that we need a recession to break the fever of high demand to get out of inflation or that at some point it's unavoidable. anyway, so let's get a tough cleansing period out of the way. what do you say to that? well, i think it, we do not need necessarily a recession, but i think are you,

you have to be ready to take the pain of a short term recession. in order to bring down the inflation as the chem and poets at the do it during the press conference, the lessons of the seventy's. if you, if you always look at a, g, d, p, and, or would like to avoid any recession at any price. despite a high inflation than your risk that, that all the time, the inflation problem, it gets bigger and bigger. and then in the end, you are forced to hike interest rates. we saw this, we saw this or at the, at the start of the eighty's. when the fat was forced, after 15 years of high inflation, after 15 years of to lose a monetary policy, they were forced to high interest rates to nearly 20 percent. and to course 2 is session in a row. and this was a big, big price to pay simply because the fed waited too long. therefore, i think the fed as right what they're doing. okay, some lessons from the past there,

but you know who my thoughts and prayers way that this particular time of the central bank as of the e c. b, but also with businesses with significant exposure to dollar debt at this moment. so what should europeans be making of? well as far as the ship is concerned, a c p had also has sir, a deep inflation problem and the easy be always looks at italy in all highly, highly in indebted. but the c p should more follow what the fed does and to deliver more rate hikes. i think 150 basis points rated by the easy be bringing the deposit way to 0.0 percent is not enough. we need much more rate hikes. i think in the end, the easy b has to, to come to a level of, i would say 4 percent or so in order to bring down the inflation and this is amended of easy b. okay? so the c, b has got some catching up to do with the fed as your kramer from commerce bank. thank you very much. thank you. all right,

let's get some other business stories for you. inflation in germany has reached its peak, but food prices will continue rising. that's according to germany's ego institute. info said on thursday, the number of companies that plan to raise prices fell in july for the 3rd time in a row. and the pace of price hikes a slowed a strike, which caused chaos over german skies and paralyzed loved hands or has ended. the german air line was forced to cancel over 1000 flights. re book around 134000 passengers due to the industrial action local union. vandy is seeking higher wages for $20000.00 lufthansa employees. and facebook parent company mehta has reported its 1st ever drop in revenue. is quarterly profits also shrank for the 3rd quarter in a row, unless blame increased competition from tick tock and lower advertiser revenues for the drug as well. and if this is that germany has agreed to sell ukraine,

100 tanks and a deal worth one point. 7000000000 euros tanks will be produced by 2 german companies coast. my 5 bakeman and i'm retired, but the equipment won't be delivered before 2024, making it unlikely for them to be deployed during the ongoing war. russian ties with former allies in the west are in tatters over its invasion of ukraine. russia is naturally looking elsewhere to do business. that's where a new trade route with india comes in with both countries hoping to speed up bilateral trade. however unfair it might be, it seems that what's europe's loss could be asia gain. russia has been cut off from trade with the west. the sanctions imposed over its war against ukraine or hitting rushes economy. bloody may putins government lacks revenue from exports like oil and timber. the russian leader wants to bypass the blockade with the help

of new partner countries. the usual trade route from st. petersburg to mom buy in india. it's a shipping root of about 15000 kilometers that take some 40 days ships passed through the suez canal to mum by before reaching markets all across asia. russia's answer is the new north south route from st. petersburg. moscow as or by john iran and to mom by it's a corridor of just over 7000 kilometers half as long as the usual root companies could save an average of 20 days worth of transport. and the costs that go along with it. russia hopes this new route could replace some of its loss trade with the west. as far as i know, the only just just started very recently with a couple of try out some, but clearly it would save time and be much florida. and it would also, it's very interesting for the countries in bowles like india or russia. it would also enable these countries to somehow get away or get out of scope from

western sanctions. most of the world's population lives in asia. the new route gives russia access to this market, but are transport companies already using it. the question is posed to an indian logistics entrepreneur 4 to 5, and then myself and every year or something along the loop. and so this leverage my little less lacrosse division. i made a lust candid via g best. i am named luis, last grade for base. it on india and some other asian countries have so far kept a neutral stance over the war. they say they don't want to take part in the sanctions against russia. ah, we can definitely say that the, the war ukraine is a game changer and not only

a game changer for european security or military policies, but it is a game changer for the global economy for global trade. more and more looks as if we're really moving into a kind of world with 2 major blocks. and with one of those blocks increasingly isolated from the other, many asian countries are happy to take advantage of the west broken trade relationship with russia. and staying on this topic, let's get more on the view from india on its trade relationship with russia. i correspond, charl complicate has more in this from tele when the indian government has not really been forthcoming in talking about the tv media reports suggest that there is a fair amount of interest among analysts as far as the project is concerned. now it's a, it's a 22 year old project, but it did not receive the required push so far because it is believe largely

because the volume of trade between india and russia so far was not too high. hobbling anywhere between $8.00 to $11000000.00 annually. but now in the wake of the ukraine war, india import from russia has been growing significantly. and rochelle and spot has also been looking for alternative routes that enable it to bypass width and sanction. and so both these reasons have given the occasion for both of these countries to revive the dream project and then a report that dr. run already on char konica, that the concern over rising temperatures due to climate change as a global phenomenon hit waves sweeping through many parts of the world. in shanghai, government officials of issued an orange heat wave alert to warn people of the danger of such scorching li, high temperatures. one companies that's in the business of keeping people cool is having to work around the clock to meet to mot. temperatures in china's

commercial hub have reached a staggering 37 degrees celsius. that's why this business is making a cool profit. e, as young as young, is the owner of the you who ice company with the current heat wave, he's making twice the amount of money. he typically does. our business in 2022 is double that of a normal year. our machine is running 24 hours a day, just non stop. it's working at its peak capacity, and our employees are resting only 2 to 3 hours a day. on each block of ice waste 40 kilograms in a normal year. you who ice company typically supplies them a seafood and farmers markets this summer though it's customer base has expanded

and routine emiliano. shanghai hasn't experienced high temperatures like these in recent years. and nowadays factories and businesses are using a lot of ice. we now primarily supply markets. people who work outside use the ice to cool down. and we're also supplying coven 19 testing sites. volunteers at testing sites are shrouded in personal protective equipment that can make the heat even more unbearable. this volunteer shows his drenched t shirt on move out of sweat dripping off their brows. workers that you who ice company are hoping to provide a little relief. and just before we go, a reminder, the top business story we're following for you. the salad is the most aggressive monetary policy tightening since 1981. the u. s. federal reserve raising interest rates by 75 basis points. the 4th, right type this here us central bank is battling to tamp down on the raging

inflation, which is running its fastest for 40 years. and that's it. you're up to date with dw business. if you want more, check out our business specials on youtube. just go to off d, w, muse channel there. i'm daniel winfield from me. i'm the whole business team here in berlin. thanks for watching. ah ah, with

a legal fields a legal wells legal nature conservation in southern spain, farms of digging up water from a unesco nature, a basso full, scarce resources in which the authorities are partly to blame. focus on europe at 30 minutes on d. w. ah. oh . every jenny is full of surprises. we've gone all out to give you some tips one day in the footsteps of the rigby home. i'm in your northern most count

to please ah, for a time line still very much alive, dw channels, your guy to the special. her thoughts in germany knew it recognizes where exactly it was fun and i learned a lot our culture history, all their d. w, travel extremely worth a visit law has no limit. ah love is for everybody. love is life. i love matters and that's my new podcast. i'm evelyn sharma. and i really think we need to talk about all the topics that more to live and denied that. and this i have invited many deer and well known guests, and i would like to invite you with

this is dw use lie from both in the 2 most powerful leaders in the world tried talking about their problems. the way president joe biden and china is she being hold there 1st conference called in months aging is outraged by plants for a tough us politicians to visit taiwan. ukraine confirms russian forces have taken control of its 2nd biggest power plant. keith plays down the capture of the coal fired station into yet as a tiny, tactical advantage and surviving california is because.