also on the show tensions around taiwan have risen in recent days. now a new study looked at how dependent german firms are on markets in china. and fisher dying in europe, largest salt water, lagoon, environmental groups, lane, large farming operations alone. 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. and 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 heart, 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 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. and for more on this, i'm joined by news co vine from rob mornow. he's a partner at the consulting for firm kinney, and he's been looking in into a zombie firms. neil's, 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 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 2 or 2000 companies globally. that fulfilled is 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 still receive some from the capital markets but not growing and 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 from be 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 fall and then the trucks related to capital markets might be hard. and that's the big danger that goes out of the somebody's plus it is. it's just them, it's location or capital, or a new cool vine for not to know with consulting firm kidney. 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 rush and cut off this winter or china's recent escalation round. 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 decoupling with punitive tariffs from china would be 6 times as expensive for germany as brags. 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 foreign dorn was co author of that report for the eva 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 up with one expect that we had a crisis like the russian crisis and 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 states 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 affected by the so these are the sectors which are very whichever it competitiveness are in the international trade. so if the costs are increasing, these sectors would last a lot. so these include also, for example, companies producing transportation equipment or mechanical engineering, the chemical industry of pharma industry. so many sectors are affected by this,

and this was an officer, utah in wealth and prosperity put in for the german economy. and at the end, for the germans. for the gym of elation. 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 not a good strategy, but what we recommend is tooth rain, the diversification of, of supply chains and trade relations. so they should really look at what we have. there are intermediate inputs come from and they should reduce unilateral and critical dependencies in general, not just from china about also from other, for example, autocratic regime. so we recommend that companies should look where the critical inputs come from in that shape,

if they should diversify their input strategies. all right, for enduring with the for institute and munich, thank you very much. thank you miss the best way. 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 to be changing. ah, this is marta. my not the biggest salt water lagoon in europe. ah, environmental, it's or warning. this unique echo system is on the brink of collapse. extreme heat fuels are gay growth in the inland sea are the locust colet shopper where today. the green due to the aga blooms, the echo system has been shown out of balance in recent years. if daniel boy,

they will, will take the green. so could repeat this year in creating an oxygen free dead zone, where fish and undersea animals die hitting the mos west. beth is moody, and does he eat honey malice, or twos of dead sea creatures for a fresh start of my men or my son? the environmental disasters shocked many spaniards, but not a lot has changed so far. and who's to blame the industrial agriculture around men, or for one widget above plantations. as far as i can see, and they are encroaching on the 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 of not a single fish died because of nitrate contamination. fee galati go get

a black. there is no toxicological finding that can prove the fish died due to the lack of oxygen and then look what causes it is arguably missile getting the sewage water, the seeps into more minority, untreated ela water. she will not adela, environmentalists think otherwise. official measurements show the tones of nitrate from a 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 up 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 me tight environmental standards. harbor, industry, insider drama. now, yes. within the bo himself is an organic farmer, sees it as foss last that v vi. gallows get our lead. does the same quality

controls as all the others since it's worked usa, which of i believe 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 ag groat is out of control. a warning sign that modern men or could be under threat of another deadly summer with. that's it for now. thanks for watching. ah ah ah, with

ah, ah, the beginning of the story that moves us and takes us along for the ride. it's all about the perspective culture information this is the that were you news and more. d, w. made for mines stories, the world over information. they provide the opinions they want to express. d, w on facebook and twitter, up to date and in touch. follow us. look closely.

ah. listen carefully. don't know how those 2 things you need to do. go ah, feel the magic discover the world around you. subscribe to d w documentary on youtube. mm hm.

ah ah. ah, this is dave ebony news live from berlin, the f b. i rides donald trump's florida state. the former us president claims agents broken to his say fed tomorrow lago complex trump some says they're looking for documents taken from the white house. also coming up, all change in kenya has voted.