all of that, against again, i was german, the iranian political scientist, i leave for toddler, the chad. no, in the nation's, your football, england, and germany drew 3 all in that final group. stage game of the torment that today can have it. so fight in a beauty after 67 minutes to give germany a to new lead. then lou short pulled one back for england mason mount nettie bare 2nd, and harry came converted to penalty. howard's responded with his 2nd of the night to stack a point for his team and set you up to date. so stephen beardsley has your business update in just a moment. looking at the battered british pound, have a good day to reset 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. mm

hm. ah ah, the british pound touch is a record low against the dollar, as investors make known their displeasure over london's big spending plans. even a reassurance by the bank of england hasn't helped. also on the show, a small sigh of relief from beleaguered renters in the us. apartment rents fall for

the 1st month in almost 2 years. and a family own bakery and germany shots its doors after 90 years in business siding, rising costs. hello, welcome to the show. i'm steven beardsley, in berlin. it's been a volatile year for currencies ask anyone holding yen roubles or euros even bic coins. but that's not the value of a crypto currency. the you're about to see here. it's the british pound, which fell monday to a record low against the dollar. it's the martyr reaction to the so called mini budget put forward by the new conservative government at the end of last week, which included some of the biggest tax cut it tax cuts in 50 years. now investors are not happy, and that's pushing up the cost of government borrowing to recent highs, or the bank of england even wait in saying it's monitoring the developments in the financial market. and would not hesitate to change interest rates by as much as

needed. but even those remarks haven't taken pressure off of the pounds. a public opinion in the u. k has meanwhile, been divided. there's widespread concern over inflation and the rising cost of living. but whether tax cuts will bring about a change of fortunes, for average brits as conservatives promise has been met with skepticism. on the streets of the city of london, britain's financial center. the plummeting pound is a cause for concern about what the coming months might bring. is the problem, roy, you know, you take a labor government would take, drove down the spending root is as you generate. dr. does not take as recession. a conservative is always going to tell you to tax costs. and these are the probably cuz but more money to spend. but the problem is, is what is that you say with one of those is going to be successful or they've been there? it's so it is a gamble. how did well we estimates is disappointed about them or has no competence in petition economy. so light press is negative somehow. overall, put

a sofa. so there's some sort of recession coming, right. if it's not already here, and we'll just have to wear her, i think i'll give lee have to keep spending the i suspect the impact is going to be fairly disastrous. imports are obviously gonna go up in price. exports are going exporting is going to be more difficult adage to vastly affects of braxton which are coming down a down the line straight for us or nothing, we're going to be serious trouble over the next couple years. i've been here for weeks. so the to exchange in engine exchange rate is around about for the same. so get 4 percent more and i was going to buy another point. right, so not everyone. disappointed by the plummeting pound conroy felt is head of forecasting at the center for economics and business research in london. chi you had predicted a bumpy ride in the markets after this plan was announced, the pound is now flirting with a record low against the dollar. recent comments by the bank of england don't seem to be having much of an effect. how serious is what we're seeing yet,

it is certainly quite a serious situation for the government and the bank of england. i think the many budget wasn't really that. many at all. it was one of the biggest fiscal events and recent history really and markets have been taking too kindly on the very large and you know, predominantly unfunded to tax cuts that the chancellor has announced without any assessment by the independent fall casa b o. b are looking just at this immediate effect what we've seen today and, and a bit of friday as well. what will a weaker pounds mean for this economy? it's fighting record inflation. yeah, it comes at the worst possible time really because the pound has already been weakening. the bank of england was battling really an uphill battle against inflation. again, rising yield and guilt. so to have this added pressure now, which is coming from the announcements on friday, it is really the worst of times because the only thing that the bank of england can

do, and what market pricing in already is to raise interest rates, buy more, go higher, perhaps go and bigger steps, but of course that will lead to a lot of pain in the economy. that was slow growth will make borrowing more expensive. and in particular the mortgage market is where we'd be a little danger building up. as you know, people need to spend more and more for the mortgages. you just mentioned this, not so many, many budget. do you see a coherent government policy here on the one hand capping energy prices driving much of inflation on the other hand, attempting to crank up economic output? yeah, i mean, there's really a disconnect between monetary policy and fiscal policy that the, the big economy here, you see that the bank of england is trying to bring supply and demand back into balance by raising interest rates. but pricing the inflationary peak that we're seeing at the moment. on the other hand, you have a government that is really,

you know, ripping up the fiscal room book really and saying, you know, we need to go for growth. growth is the only variable, the only indicator really that the chancellor seems interested in, along with productivity. and, and this creates, you know, a lot of a lot of, you know, distortions and it's really just not a good time. you know, wait another month, but the o b, i want to do the full cost. i think a lot of pain could have been avoided. does this idea of growing out of inflation make sense? i mean, to certain extent yes, you know, growth is if there is a bullet, if you like, but how do you get group that is that is the group the crucial question. so growth is why we can afford to have these high amounts of government debt that, you know, most economy has accumulated, its during the damage. and also now with the, with the energy crisis, we do need growth. and it's also to certain extent, right, that the government focuses on growth and things to improve the supply side of the

economy. however, you know, during these times during their current energy crisis, we have, you know, the inflation respite, the slide in the pound, this is not helping the growth outlook in the, in the short term. we do predict, you know, some, some benefits, a medium to longer term to materialize. but that is going to take, you know, 567 years really to, to come through. and in the meantime, we do have to deal with that weaker pound, high inflation, higher interest rate kind. i felt that the center for economics and business research in london. thank you very much. thank you. let's go now to some of the other global business stories making headlines. georgia maloney is set to become the prime minister of italy after winning a general election among her policies, revising and economic reform plan previously agreed with the e. u. in exchange for 200000000000 euros and cove at 19 support. all eyes turn now to the fiscal policies that will come out of coalition talks. us apartment rents

fell for the 1st time in almost 2 years in august. that's according to the wall street journal, which cited several property data and apartment listing sites. the down tick by most measures slights follows a period in which rents searched. according to realtor dot com average rents in the us rising 23 percent from august 2020 and let's go to our financial correspondent in new york. teddy austro teddy, the rent surgeon over these past 2 years. this is apes light down tech from everything that we're, we're hearing. how meaningful is this really? well, it's, as you said, this is a pretty modest decline. and rental prices based on private data here in the united states. modest when you compare to the past 2 years of surging prices. i'm here in new york city ground 0 for some of the highest prices in the country. i got to say

everyone is always talking about rent through the roof. now, why is this the case? rental inflation was already pretty high before the generalized inflation that we are experiencing here in the united states. but there was a lot of pent up demand from 2020, from the lock downs that is being unleashed right now. so a lot of demand tracing to little supply now is for the declines. it does appear that some of that supplies increasing. there is more housing construction, more rental apartments. but if there is an expectation of peking rental prices, this month may not be the one that city austro new york. thank you. back to europe now where the energy crisis is hitting small businesses, especially hard, already forced to pay more for materials in recent months. businesses are now bracing for record high electricity and gas costs. some simply won't be able to stay open among them the german baker in our next story. he's closing shop on

a business, his grandparents opened. 90 years ago. for almost a century fresh bread rolls have lined the shelf of hang a bachelor's. we men's family bakery in the western germans city of cologne, but soon there will be only empty shelves here. skyrocketing prices have forced him out of business matter crossings. and once the cost of the ingredients has gone up by around 50 percent. and now there's also the energy crisis to deal with the in a geek austin. slate hayman owns one of 10000 bakeries and germany, where bread is as much a cultural asset as greater and football. now, the iconic industry is suffering remnant ok america. if we just realized that it cannot go on like this. and because of all the problems i mentioned, we would easily have to increase our prices by 20 or 25 percent from school. and i

just don't see that happening until decisions the german government announced to relieve package to soften the blow of rising energy costs. this month, but the 65000000000 euro cushion is aimed primarily at private households. bakeries feel left out in the cold divisions. i in finance. yeah. and what we would like to see is a financial bailout for our bakeries with a government providing aid to help our businesses effectively quickly and unborn. critically effective on shit, google cottage, his for this family bakery a bailout. what come to late after so many years in business? this one will be in last his reminder of our top business story. the british pound briefly had a record low against the us dollar on monday. it's part of a market reaction to the so called many budget put forward by the new conservative

government at the end of last week, which included some of the biggest tax cuts in 50 years. investors are not happy that's pushing up the cost of u. k. government borrowing to recent highs. all right, that's it for me and the dw business team. do you find out more about these and other stories online at d, w dot com slash business? check us out on youtube as well. we're under the d w news channel. i'm from beardsley from everyone here. thanks for watching. oh yeah. then like views on with a free cruise, eat the bikes. 1000000. that's the time. sustainable.

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