and i wonder after work today, finally, some sports in nations like football, england, and germany drew 3 all in their final group stage game of the tournament. on monday, i have it's 5 in a beauty after 67 minutes to give germany a to neil late. but then luke shore pulled one back for england. mason mount netted this 2nd, and harry came converted a penalty of its responded with his 2nd of the night to snag a point for his teeth. and so for now, stick with us after the break business news with steven beesley, we looks at the batted british pound. i been fissile and see you next to help with sleep listen carefully.

don't know how you live to tackle. ah, feel the magic discover the world around you. subscribe to d w documentary on youtube. ah, the british pound touch as a record low against the us 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 our show, a small sigh of relief from beleaguered renters in the u. s. apartment reads fall

for the 1st month in almost 2 years. and a family own bakery and germany shuts its doors. after 90 years in business setting, rising prices oh, welcome to our show. i'm stephen beardsley. in berlin. it's been a volatile year for currencies ask anyone holding yen rouble or career owes even bitcoin. but that there is not the value of a crypto currency you're seeing. that the british pound, which fell monday to a record low against the u. s. dollar. it's part of the 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. and our investors are not happy. and that's pushing up the cost of government borrowing to recent highs of the bank of england's even wait in saying it's monitoring the developments in the financial part markets. and would not hesitate to change interest rates by as much as needed. but even those remarks haven't taken pressure off the pounds. public

opinion in the u. k has meanwhile, been divided. there's widespread concern over inflation and the rising cost of living. the weather 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. you know, you take a labor government would take, drove down the spending root does as she generate. dr. does not take as recession. a conservative is always going to tell you to tax cuts the news that the public has but more money to spend promises. what dates is that what you say with one of those is going to be successful. what i've been there is so it is a gamble. how do you? well, to be asked is disappointed about them or has no competence in petition economy. so light press is negative somehow. overall, putting a sofa. so there's some sort of recession coming, right. if it's not already here,

and we'll just have to work, or i think i'll give leave 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 gonna be more difficult. adage to that li, effects of breakfast, 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 change and exchange rate is around about 5 percent. so i get 5 percent more. enables me to buy another point. right, so not everyone disappointed by the plummeting pound chi no 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?

yeah, 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 events and recent history really and markets haven't taken too kindly on the very large and you know, predominantly unfunded tax cuts that the chancellor has announced without any assessment by the independent forecast. the b o b are looking just at this immediate effect what we've seen today and a bit on friday as well. what will a weaker pounds mean for this economy? that's fighting record inflation? 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, arising years on guilt. so to have this added pressure now, which is coming from the policy 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 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 economy here. you see that the bank of england is trying to bring supply and demand back into balance by raising interest rates worth 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 we do that the, 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 a certain extent, yes, you know, growth is if there is a bullet, if you like, but how do you get growth? that is, that is the group. the crucial question. so growth is why we can afford to have the high amount 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 the current energy crisis, we have, you know, the inflation response to live in the power. and this is all not helping the growth outlook in the, in the short term. we do predict, you know, some, some benefits in the 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 pounds, high inflation, higher interest rates, kind of 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 our policies, revising and economic reform plan previously agreed with the e. u. in exchange for 200000000000 euros and cobra 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 surging over these past 2 years. this is 8 slight 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 it 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 locked 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 house construction, more rental apartment. 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 offensive at slashed women's family bakery in the western german city of cologne. but soon there will be only empty shelves here. skyrocketing prices have forced them out of business mccloud crossings and i'm sure 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 human owns one of 10000 bakeries and germany, where bread is as much a cultural acid as greater and football. now, the iconic industry is suffering remnant of america it's, 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. and i just don't see that happening until decision is. the german government announced to relieve

package to soften the blow of rising energy costs this month. but the 65000000000 euro cushion as aim primarily at private households bakeries feel left out in the cold divisions. i'm a financing. 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, and bureaucratically effective she go cottage is for this family bakery, a bailout would come to late after so many years in business. this one will be his 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? adobe dot com slash business. check us out on youtube as well. we're under the d w news channel. i'm see from beardsley from everyone here. thanks for watching. i o. r. a more in depression, ah, musicians from ukraine and delaney's continue to resist. and they're giving rouzan

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