river that is slowly, slowly running dry more and more day after day is just is side of the, the big consequences of climate change that we're seeing here. up on a visa reporting from ny megan in the netherlands. thank you so much. and that set you up to date traders warning of a zombie, a couple a booklet for cycle zombie companies anyway. as the cheap credits, they survive on dry flu, unsecure, that i want, that's hard. and in the end is a me, you are not locked up to you anymore. we will send you back. are you familiar with this with the smugglers reliance of the what's your story. ready ready he wasn't, i was women,

especially victims of violence. i love to take part and send us your story. we are trying always to understand this new culture. so you are not a visitor, not a guests. you want to become a citizen. in phil migrants, your platform for reliable information ah, could rising borrowing costs put a stake through the heart of so called zombie companies. they've thrived on cheap credit until now, but may not last much longer as interest rates rise. we'll look at why a wave of zombie bankruptcies might be a good thing. also on the show tensions around taiwan have risen in recent days. now a new study looks at how dependent german firms are on markets in china. and fish

are dying in europe's largest salt water, lagoon, environmental groups, blame large farming operations. hello, welcome to the show. i'm seeing beardsley in berlin. the bank of england is signalling yet another hike and interest rates as it fights inflation. that's falling new comments from deputy governor dave ramson of the bank, just raise rates for a 5th time last week. meanwhile, investors in the u. s. europe and elsewhere are expecting further hikes from their central banks, making borrowing more expensive. and that could hit the zombies, especially hard zombie companies. that is, and there is such a thing. it's technically defined as a firm that's been on the market for at least 10 years, but is unable to cover the interest payments on their loans through their operating profits. in other words, zombie companies live from cheap credit and according to a recent study, travel media, technology and health sectors are have the most such companies coming to one study,

their shares tend to underperform market averages. however, for each of those sectors. now as interest rates rise, the zombies will have to pay more to borrow and that could result in more bankruptcies. for more than this, i'm joined by neil's cool vine from rock to know he's a partner at the consulting firm, kenny and he's been looking into into a zombie firms. neil, thanks for joining us. let's start off. i want to ask, can you give me an example of a zombie firm to help our viewers out here understand what these firms are? sure, as 1st of all, thanks for having me today. and yes, it is a fair number of them that has been around for many, many years and we have taken a comprehensive look across the globe and on the company. well, we have done is, as you said, and in the intro, we have analyzed companies that have been at least 10 years on the markets. but i'm not able to cover their interest rates with their operate,

operational profits. and typically these are companies that have a non working business model. so they, they are still alive because they still find somebody who is boring them money. and, but these companies don't have a working business model and i'm office, do i kind of name specific companies, but there are about 2000 companies globally that fulfilled these criteria. and they are obviously become to the trust related to capital markets. explain that last part a little bit more. why does it matter if these companies are out there? i mean, aren't they providing jobs, for example? yeah, what we have found is that these companies are looking up around $500000000000.00 us dollars off for a capital that could be employed in the different companies that could be employed with companies that have higher growth that are more profitable,

that are adding more value to their shareholder and these companies that are received from, from the capital markets. but i'm not growing and i'm not adding value to their shareholders and vendors. they just don't die. and why are they not dying? is because they always find somebody in the, in the euro offer cheap money we have seen for the last year who is able to provide them with the equity side on the debt that appears to be changing. now, briefly, does this mean that bankruptcies for these companies would ultimately be a good thing? obviously, i mean probably it's destroy the, the trust and the capital markets as they, they are much more vulnerable to, to external shocks than, than healthy businesses. and they just are a form of allocation, offer capital funds,

and the big danger we are seeing with these, somebody's is that 11 of them is falling. it could be like a domino situation that a lot of them are falling and then the trucks related to capital markets might be hard. and that's the big danger that goes out or off to somebody's plus it is, it is just a mis allocation our capital. alright, neil's qualifying for not to know with consulting firm karen is speaking with me about zombie firms. thank you very much. thank you. and let's take a look now, some other business stories making global headlines. the german economy is set to lose over 260000000000 euros and added value due to the ukraine war that's according to a german government research institute estimate showing the country's g d. p could drop by 1.7 percent next year. with 660000 jobs vanishing by 2025.

the european union's emergency gas plant came into force on tuesday. it asks that members reduce their gas consumption by 15 percent in order to help fill gas storages and prepare for a possible full russian cut off this winter with china's recent escalation around taiwan has rattled nerves globally. also here in germany where china is a major trade partner, a new study now imagined how serious and abrupt in to that trade relationship could be. the report from the munich base evo institute found that a complete the coupling with punitive tariffs from china would be 6 times as expensive for germany as briggs. it was the auto industry would be hit hardest. above all. the study was commissioned by industry group whose members include b, m, w, and audi. i florian dorn was co author of that report for the evo institute. he joins me now from munich,

florida. it's great to have you on the show. i want to begin by saying your report was commissioned by an organization of companies in germany. south, obviously worried that political tensions could cost or disrupt their businesses. how seriously then should we take the results? this is obviously something that they're preparing to to use as an argument. yeah. first of all, thanks for having me today. so i think we should take this results very seriously because as we have seen, a good one expect that we had a crisis like the russian crisis a half a year ago. so we, we thought it's very important to think about the simulations. and that's the reason why we have 5 scenarios, 5 scenarios for simulator, including especially so the decoupling of, of china, our trade was china. and i think in the state with this attention was the taiwan chinese attention. this is a very serious scenario. we should think about it,

this wouldn't affect the all companies and all sectors equally. it would especially affect auto companies. is that fair to say or just a few sectors? yeah, so in general, especially the manufacturing sectors are very effective by the so these are for sectors which are very whichever is it competitiveness or in the international trade? so if the costs are increasing, the effect was would last a lot. so these include also, for example, companies producing principal taishan equipment or mechanical engineering, the chemical industry of pharma industry. so many sectors are affected by this, and that was, and oper, utah and wealth and prosperity put, put in for germany economy. and at the end for the germans, for the gym population,

are these sectors beginning to look elsewhere at markets outside of china, given recent tensions, or are they doubling down on what is a very lucrative market? so what we recommend is not that they should cut off the great relations with china with a, not a good strategy, but what we recommend is to spring the diversification off of supply chains and trade relations. so they should really look at where we have their intermediate inputs come from and they should reduce uni, lateral and critical dependencies in general. not just from china, but also from other for example, autocratic regime. so we recommend that companies should look at the critical inputs come from and that shape they should diversify their input strategies. all right, for enduring with the for institute and munich,

thank you very much. thank you mr. bill. slay. well, it's the largest salt water lagoon in europe, mar manure, and it's on the precipice of ecological collapse. environmental groups, blame farming, businesses for not controlling the run off, but so far, little appears. be changing. ah, this is mario, my not the biggest salt water lucon in europe. ah, environmental, it's our warning. this unique occur system is on the brink of collapse. extreme heat fuels are gay growth in the inland sea, or lucas colet shopper, vanity the green shoe. due to the aga blooms, the eco system has been thrown out of spellings in recent years. if daniel boy, they were taken green, so could reappear this year in creating an oxygen free dead zone. there were fish

and other sea animals die, getting them off west beth is moody, and does he eat honey malice or twos of dead sea creatures for free start of modern men or less? some of the environmental disaster shocked men is spaniards, but not a lot has changed so far. and who's to blame the industrial agriculture around mar manner for one widget above plantations. as far as i can see, and they are encroaching under protected waters. most of the goods are exported, emerald, including germany, to the industry, denies fertilizers of pesticides seep into ma, minot. ah, no, she a more unusual. i'm not a single fish died because of nitrate contamination. psychological global, there is no toxicological finding that can prove the fish died due to the lack of oxygen. and i look what causes these aga blue were so given the sewage water to

seeps into monumental untreated ela water, she was not at other environmentalists think otherwise. official measurements show the tones of nitrate from our culture flow into the lagoon to disconnect the amazon when they log it equal out. what we have here is an agricultural system that ignores environmental consequences. that only focus on capital maximization is without taking responsibility for its waste. large german supermarket chains as well by fruit and vegetables from the marcia region in mass quantities. this business threatening the environment hard is says, all spanish suppliers must be tight and wire mental standards. however, industry insider drama now. yeah. and then the who himself is an organic farmer, sees it as force last that v. v. gallows get hourly. does the same quality controls as all the other since it's worked?

yes. talked about been it's more red tape and less practice or application fee is nonexistent. they always demands more and more will be, will be the but they never fulfill funder beach cleaning stuff. have their hands full with so much to do. the organic growth is out of control and warning sign that modern men or could be under threat of another deadly summer would really that's it for now. thanks for watching. ah, animals, i'm clever. and some of the smartest i pigeons. their visual memory is outstanding. ah, can you memorize 700 images and we call them any time for a pigeon? it's a piece of cake. to morrow to day. next her aunt

d w. i, she's got, this is her thoughts. i will grade you. i'll be smarter than we think. we look at the hidden wonders in the minds of pigeons and does music make us smarter, reset his have found some truly resonating inside. also in this week's d, w sign show we face up to the phenomenon of super recognizes. welcome

to tomorrow. today.