restrictions and the cap on the price of oil. brussels is also targeting officials responsible for the sham referendums house in easton, you credit that's it. show up to date more world news at the top of the hour and round the clock, of course on the d. w. app on don d. w dot com. steven beardsley has your business updates in just a moment. have good with me. tina a saxophone operator, who wrote her master's thesis on the potato, raring to read a turn on. well, it gets more ridiculous from their d. w literature list in german monk screen.

and we're interested in the global economy. our portfolio d w business beyond. here's a closer look at the project. our mission. to analyze the fight for market dominance. east this is wes. debit head with the w business beyond ah, the bank of england steps in as britain nears financial crisis, markets and the pump and the pound respond positively. but more pain could be in store. also on our show will hit the rails and hear from someone who visited europe's worst border crossings for internet train journeys and believes the you

can do more to improve them. walk into the show. i'm sitting here in berlin, it's good to have you with us. the bank of england move to stabilize turbulent british markets wednesday, vowing to buy long dated government bonds and a bid to bring down borrowing costs. the announcement coming as several u. k. pension funds were forced to hurriedly sell off bonds to avoid a liquidity crunch. rising borrowing cost, i've also had mortgages and other forms of credit market turmoil, a direct result of new government plans to cut taxes and increased borrowing. david blanche flowers, a professor at dartmouth college and a former member of the bank of england monetary policy committee. david, welcome to the show, what, what has, what has this intervention by the bank of england essentially prevented? well, it actually looks like it may well presented, the insolvency of various pension funds. so this in by the bank was kind of

crucial, but this is incredible. instability rose column is a huge self inflicted wound brought on by a budget imposed on friday that was received like a complete lead balloon on top of all the bricks impact things. so basically what it did was it caused markets to melt down the exchange rate collapsed with things the body collapsed. but of course, now what all of this leads to is essentially going to see a housing market collapsed because interest rates are going to rise. people can't get mortgages, and the price of those mortgages is going up. so this looks like the u. k. as in great tom, all headed into recession. this looks like absolute incompetent economic policy. 5 prime minister who's been in place 3 weeks. david, you're already answering my 2nd question i was going to ask is the worst over, but it sounds like what was done by the bank of england only solves an immediate problem of these insolvency is well, they're going to run. yes,

exactly. they're going to run oceans every day. they're going to try and keep track of that. and they talked about perhaps doing something by the end of november and the bank being talked about, oh, we'll do something next week in november. well, i wouldn't believe a word of wearing crises such that market. a move in by the hour is going to be more interventions necessary. the question is, where are we going from here? i suspect we're going to have to c major action by the end of this week, and we might have to see it by tomorrow. so hold on the question, what will you do? in other words, the bank of england alone won't be able to answer these problems that we're seeing right now. well i think that's right, i think was a very telling is the, i'm if produce a statement yesterday saying this is got to be, this is going to be turned around. this is, this is an inappropriate set of measures. this will raise in a quality. so the very fact that the, i'm, it comes out and says, can you imagine over the last 30 years the, i'm,

it would come out and say something about economic policy, france, germany, but any k. so this is really on, it's called for basically withdrawal of these measures. and we've no real clue where it's got, but this is not going away quickly. it's not going to be sold by wait until the end of november. i think we have many, many in the next few days, very briefly have you ever seen this kind of disagreement between the bank of england and, and the government of the you k, very briefly. if you can know what we've seen is actually the treasury is kind of been telling the central bank government what to do in the states read. is it the treasury? but some point the military policy committee is going to get in there and say, hang on folks, we need to do something with the bank, giving them the treasury in contradiction with each other, and that's not workable. this is going to have to change. this is disastrous, or i want to leave it there. david blanche flower, he's professor at dartmouth college and former member of the bank of england. thank you so much. cool. thank you. let's go over now to our financial correspondent in

new york. yes quarter. you heard perhaps what david just said there yet, but it's not just in england that this shock is being felt also in new york. what can you tell us? yeah, i mean in general, and for the moment at least it does seem to be mostly a british problem, but that could definitely a chain subbing for once the u. k. is the 6 biggest economy on the planet. the pound is also part of the reserve currency, so that does have an impact. and then we shouldn't forget, markets are very jumpy. and general and anyhow, i mean, we see the biggest crisis probably on bond markets globally in about 1030 years or so. and when we talk markets, we talk psychology, and if something like that, what happens in england right now is seen, it was other market participants. so that could cause a certain effect. larry summers, by the way of the former head of the treasury, is saying that what happens in england could actually cause

a global crisis. some also the current head of the treasury agenda jelena saying they're monitoring the situation. so clearly the okay is not isolated, was it's problems at the moment, ins, court and new york. thank you. and we go now to some of the other global business stories making headlines. the head of the world trade organization and go see a condo, a whaler warned that the world has heading towards a global recession. she expects her forecasters to further lower their growth rate for global trade this year from their current 3 percent projection. 16 major wall street firms have agreed to pay $1800000000.00 in fines over their failures to keep electronic records of important communications. bank of america deutscher bank goldman sachs, were among those that use personal phones, text messages and other means to discuss financial information without hearing to record keeping regulations. while europe is synonymous with rail travel,

but it's often a bumpy ride for passengers traveling between the rail networks of bordering countries. for one network time tables are rarely integrated with those neighboring countries. that often means long waits at borders and other problems. infrastructure, rail networks run on different electric systems. they have different signaling systems, even different gauges of tracks. that means that a train in one country can't necessarily work in another. then there's the overall passenger experience buying a single through ticket from country a to country c is almost impossible in europe, mr. connection, you can forget a refund. each part of your journey is run by a different operator focused only on their domestic leg. now one campaigners hoping to pressure the e you into doing more about just these kinds of problems by identifying some of the worst connections. as part of his cross border rail project, john worth bought a your rail pass and spent the summer crossing every border in the e u. that could be travel by train making $95.00 crossings in total anti

documentary his frustrations along the way. john joins me now to talk about his cross border rail project. john, welcome to the show. why was it important for you to see these examples of failed or defunct border connections in person? it's really important when you see those things on the ground, how those connections really matter to people in these border regions. it's very important that they can actually get across the border on an everyday basis to go shopping to go to school or university, things like that. and i wanted to check, is it actually good in some areas or is actually this problem, the moment you cross the border by train in europe, everything gets more complicated. and unfortunately, what i ultimately concluded is these problems are pretty universal. whenever you cross a border in the you by train, everything gets harder than if you're just within one country. at the same time, you highlight 20 different border crossings. some shot are due to divergent infrastructure, some were barely travel because of incompatible time tables. is there

a common problem or narrative to all the sites? basically, it's very important that most railway companies think very nationally, they don't really want to prioritize international railway connections per se. and so therefore, all of these problems then crop up in a variety of different border regions. and it's important to say that there are some countries that get it right. countries like austria and check here for example . but in many areas of europe, these cross border railway lines have been disregarded. not only just now, but in many cases for some considerable decades, because we're facing a climate change economic change crisis. it's very, very important that you're upset game on railways and allows people to travel from one country to another in his green a manner as possible. and so that's what i want from the european union, is that european union should step into sold, dismantle problems of those sites that you visited. is there any one that stands out as the most egregious, or absurd in terms of the lack of connectivity? so this one which is at the border between this you and your in latvia,

which is perhaps the most crazy of all. if you go from vilnius, the capital of lithuania to doug pills, the 2nd city of latvia that used to be possible up until a few years ago. but now the train stops in the final village on the lithuanian side of the border, political to a man to us for just 218 habitants. and the train could cross just 20 kilometers further to reach the city on the left hand side. but it doesn't run any more. no you would need would be a tank of diesel fuel in order to manage to facilitate that connection. and when i was there, there were people crossing the sport on foot because they actually needed to get to lithuania. and so those are the sorts of things that i discovered missed just very sad when you discover something like that. and there was another one as well at the border between portugal and spain and where it's a diesel train that runs on an electrified line. and between porto and vigo because neither railway company, his thought to buy electric trains for its electrified international line. and so

some of these things are very, very quick and very simple for the european union to step into sold. but at the moment, there's not really the political will that kind of practical level for the european union and to set up. and so those issues, if these connections are so critical, why don't the real networks work together across the board to make them possible? if there is such a demand from people, for example, it's very difficult for that demand to be turned into practical action. and those people into a man to us or dog up hills. who can they really are asked to solve a problem like that. now for me, it's a cross border problem, so it's your wife, this thing afflicts pretty much every time from european union. so the european union should stepping as i see it. but the european union says ok, we want railways to work, but they take what a kind of hands off approach. and that's why the european union has know that he said to the governments of last year with your annual po, portugal in spain. hey, look, you've got a problem there. you need to actually sold this practically. and so that's what i'm

trying to do with this project is to say, hey european union at many different product of borders. you've got these types of projects. it's time to get them fixed. all right, that's john worth founder of the cross border rail project. thank you very much. thank you. and that's all for us, for now, you can 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. you can beardsley berlin, thanks for watching. lou alexandria is up to it's a stork. monuments are in danger and residential neighborhoods are being flooded with people are afraid when the city council is trying to

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