suite parts of china, some companies are looking to cash in the business to stay cool. at that time again, d w business welcome. it's the most aggressive monetary tightening since 1981, the u. s. federal reserve raising interest rates by 75 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 their 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. well, who better to break this down for us than your kramer chief economist comments bank? thank you very much for joining us, young and 1st of all your reaction to this. right, right. well, this rate hike by 75 basis points yesterday was expected, expected boss expected by the market. and it was also clear that the center bank would not the announcer explicitly a father $75.00 basis points increase. this is clear and that the, 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 the 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 after they do it during the press conference, the lessons of the seventy's. if you, if you're always look at a g p and, or would like to avoid any recession at, at any price, despite a high inflation, then 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 industries. 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 cause 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 why, but they're doing okay. some lessons from the past there, but you know who my thoughts and prayers away 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 shall, as far as easy is concerned, easy p her also has a deep inflation problem and the easy be always looks at italy in all highly, highly in, in debt it. but the c p should more follow what the fed does and to deliver more rate hikes. i think $150.00 basis points rated by the easy be bringing the deposit rate to 0.0 percent is not enough. we need much more rate hikes. i think at the end the c p 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. before that 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 matter has reported its 1st ever drop in revenue is quarterly profits also shrank for the 3rd quarter in a row, unless flame increased competition from tick tock and lower advertiser revenues for the drug as well. and 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. putin's 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 mum 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. rushes answer is the new north south route from st. petersburg, moscow, azerbaijan, iran. and to ma'am, by, it's a corridor of just over 7000 kilometers half as long as the usual route. 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 a very recently with a couple of try out some, but it would save time and be much florida. and it would also, that's a very interesting for, for the countries in bowls like india or russia. it would also enable these

countries to somehow get away or get out of scope. ready 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 my cell and every year or something along the loop. and so this leverage, bustler cross division analyst continued via g best bang roneesh last going for base it on india and some other asian countries have so far kept 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 a ukraine is a game changer and not only a game changer for european security,

our 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's 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. a correspondent char 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 sanctions. and so both these readings have given the occasion for both of these countries to revive the dream project. and then a report that dr. runs already on cherry coffee k that the concern over rising temperatures due to climate change as a global phenomena heat waves sweeping through many parts of the world. in shanghai, government officials of issued an orange sheet wave alert to warn people of the danger of such scorching the 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. 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 1081, the u. s. federal reserve raising interest rates by 75 basis points. the 4th right type is 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 a dw news channel. there, i'm daniel winter from me. i'm the whole business team here in berlin. thanks for watching. ah, ah, with ah!

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ah, this is dw news life from bo, then don't to play with fire over taiwan. avoiding from china teaching ping to you as president joe by, according to state media, the 2 leaders talk on the phone for the 1st time in 4 months as tensions between the 2 nations rice, ukraine's 2nd largest power plant is now in.