also on the show tensions rounds, i want have risen in recent days. now a new study looked at how dependent german firms are on markets in china. and fish are dying in europe. large a salt water, lagoon, environmental groups, blaine, 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 raised 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 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 in this, i'm joined by neil's cove and from right to know 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 for him 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 comprehensive for an honest 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 fulfill 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, in 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 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 probably is 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 time. and then the trust related to capital markets might be hard. and that's the big danger that goes out or off the somebody's plus it is. it's just them, it's location or capital. alright, neil's qualified 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 plan 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 based 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 into to 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, hyphen errors for some later, 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 in 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 bias. so these are for sectors which are very whichever in it competitiveness are in the international trade. so if the costs are increasing, the sectors 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 entered,

did both and oper, utah and wealth and prosperity for to put in for the german 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 have cut off the great relations with china with a, not a good strategy, but what we recommend is to strengthen 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, but also from other for example, autocratic regime. so we recommend that companies should look where the critical inputs come from and that shape they should diversify their input

strategies. all right, for enduring with e for institute and munich. thank you very much. thank you mr. bursley. 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 look on 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 su, due to the aga blooms, the eco system has been shown out of balance in recent years. if daniel boy,

they were with green, so could repeal 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 the environmental disaster shocked men is 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 seeping to mon 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 this aga blue whistle get the sewage water, the seeps into modern manner, untreated ella water, she will not add other environmentalists think otherwise. official measurements show the tones of nitrate from agriculture 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. harbor industry insider drama now. yeah. and then the who himself is an organic farmer,

sees it as force last that v v. gallows gather hardly does the same credit controls because all the other since it's work, the system would've 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 ag groat is out of control a warning sign that modem and or could be under threat with another deadly summer with. that's it for now. thanks for watching. ah ah with

a pulse ah, the beginning of the story that moves us and takes us along for the ride. it's only bell to perspective culture information is is neither you news and more. d w. made for mines. oh oh, a glistening place of longing. mediterranean c a l muster

and to follow a dual career drift along with more modern lifestyles and mediterranean meeting. people watching that hearing their dreaming mediterranean journey. 10 episodes stuart's august 14th on d w. these places in europe are smashing all the records step into a bold adventure. it's the treasure map for modern globetrotters. discover some of you will record breaking sites on your back to and now also in book form j. a journey across the entire continent with a variety of cars. so with this,

so the focus, the move is shake as visionaries and made it when bonnie, the meaning of modern africa this is that's an egg on d w. ah ah, this is david in use live at from burn and the f b. i rides donald trump's florida state for you as president claims agents broke into his safe at the mar logo complex. trump sum says they're looking for documents taken from the white house. also coming up all change in can yes voted elect.