running up inflation up, he can on the growth, down on the back of story energy prices. germany will fall into recession. next year, the country's leading economic institutes. they will have live assessment of one the experts and will go to india where the countries have the bank is discussing how to battle rising prices and the sliding value of the repeat. i'm chris kolber and berlin. welcome to the program. german luxury and sports car manufacturer, portia appealed aud peeled out onto the frankfurt stock exchange. today in the latest i p. o germany, the biggest i p o. germany has seen in decades, shares rose to 80 for euro's shortly after traders got the green light. it was a higher than expected star compared to the w neutral, asking price of $82.00 euros and $0.50. that gets portia evaluation of 76000000000 euros, while the initial public offering comes at

a time when markets are inter moral you to surgeon inflation and recession. worry for wagon expect raise over 9000000000 euros from the sale of portion shares. alright, let's come over to frankfurt and our correspondent actually fund a has been following this market debut, of course, or today after they've been questions about the timing of this i p. o. after all financial markets have been in turmoil speakers. that's right. that's been the big question in that and of the, the ip your why now, why in the middle of a, such a difficult time in the middle of an energy crisis. and there is, of course, the recession looming, inflation is soaring at this, and at the same time, the interest rates are going up with centered banks raising the interest rates. so it's been a big question, but it's certainly a bold move. buy folks bargain, and you can see it. why behind me there's been these crowds thronging to see the

cars behind me, porsha cars. they have certain brand recognition. they've been extremely popular among car enthusiasts. this way i buy these cars and this is water. it. volkswagen really was banking on in, in, in indiana. it does fear stand, vindicated with the kind of response. so this idea has gotten so far. no asked us just by selling non morning shares that an hour being traded in frankfurt, volkswagen raised more than 9000000000 euros today. what will the company use the cash for it's a much deeded cash for volkswagen, so it needs cash right now to actually execute its ambitious up transition to electric cars. so this 9000000000 is going to be a big help. it's a plan would be billions and billions and still it is really far behind the competition. as far as the electron mobility is concerned,

it wants to overtake tesla, but it's ears behind. as far as software consent, it needs a lot of cash to keep investing. but man, you owe this ip, you has also got another 10000000000 euros from the peach and push family. and they've got a share of the voting. a wooden chairs, a and a dad money volkswagen is going to use to pay special dividend and bulk of it. is going to go back to the portion beach family as it has. why is there so much interest a luxury brand? when pretty much all the economic indicators point to much more difficult times ahead. well, that's interesting. yeah. it's all, it's somewhere to do with the fact that mostly luxury good that seen as relatively recession proof. and that's what was the reasoning as well. that was another fact of i o folks ivan pot, it could pull it off. and that's one of the reasons why it is at a very so much demand. but the, the, the other question should be as to why are invested interested in

a company that is still just starting out in the electron mobility. and the of, because if you see relatively, it's really not very close to where teslas tesla is valued at, at our $900000000000.00. so this is still not there, but really people up for not betting on the brand value. the recognition, the starved power that will posho enjoys. and that's what the, the valuation shows so far as the fund and frank for thank you. and speaking of difficult times, i had the german economy is set to go into recession this fall according to multiple economic research institutions in the country. increasing uncertainty. yeah. in europe's energy market is weighing on the german industry. soaring gas prices are drastically increasing production costs, which are exacerbated by the euro, sliding and fears dollar. now the challenge is come at

a time when the german economy was recovering from the coven. 19 pandemic. experts expect the countries gp to contract 0.4 percent next year. let's talk to one of these experts team obama's hartzer. he's an economist at the e for institute, one of the research institutions behind this project and welcome back to the w tumor. germany has made significant progress when it comes to weaning itself off of rushing gas. why are your projections nevertheless so bleak? yes, that's right. that there has been done a lot of progress over the last couple of months. so this is one of the good news of our forecasts today. so we ran a couple of scenarios about the gas supply in germany. and for the moment the risk that we are running out of gas at the end of this window is very low. so there has been progress, progress has been made over the last couple of months. but the problem is that this

gas that is available at the moment is only available at the very, very high price. and this is exactly what is putting the economy into recession and a worst case scenario. the german economy could contract by up to 8 percent next year, you say under which circumstances and how likely is that? so this is one of the, of the simulations that we did when the winter is very cold, when we are not good in saving gas the end, if we are not for example, successful in bringing these l. n g terminals into into operation as, as expected at the beginning of next year. so all of these things happen at the same time. then we will not have enough gas at the start of the year, let's say in march or april at the end of the window. and this would be a situation where we have to ration this gas and just rationing would happen within the industry. and this is one of the reasons why the economy would, would,

would shrink. bye bye so much. you and your colleagues also say that the problems on the energy market already are leading to a permanent loss of prosperity and germany. what does that mean? that means that we will never come back to the situation that we have before that gas, that we buy at these low prices from russia, the situation will never come back again. so if in the future we are still reliant on gas, this gas will be available at the much higher price. and this is something which we have to pay for. and this is something which, where the income that we generate within this economy will go abroad. and this is what will be called permanent loss of welfare team obama sizer of the for institute . thank you for your thoughts. thank you. and now to some of the other global business stories making news. the years eyes expanding. it's a to pacific island countries, the stem china,

things lens speaking at the u. s. pacific summit, the secretary of state and the live lincoln said, an agreement has been reached on a declaration of partnership between the united states and the pacific islands on issues of trade, climate change and security comes to europe in union. and it's a package of sanctions against russia. the new package includes a legal framework for a price cap on russian oil. thanks. and the head of the european commission on line said that the proposed price cap is aimed at reducing rushes, revenue and keeping energy markets stable. the us department of justice, sad victims of the made of investment scheme will receive another $372000000.00 to help cover their losses. the decision comes nearly 14 years after the capture of bernie made up for a massive investment fraud to his burnett. palmetto investment securities, the payout will go to more than $27000.00 victims has made us ponzi scheme,

including many who have yet to receive compensation. the reserve bank of india is trying to find answers to soaring inflation and declining value of the rupee against the us dollar the indian reduced depreciation. yes. the green back has accelerated in the u. s. fed rest of interest rate hikes this year. extra back in the us central bank to respond with a 50 basis point to rate hike on friday after today's discussion. that would bring india's key borrowing rate to a 3 year high of 5.9 percent. for more, let's come over to delhi and our correspondent charo car to k, a charo. what outcome do you expect? what's the reserve bank of india likely to do? well, chris r b a is likely to raise the interest rates once again, and it is likely to be as high as 50 basis points or has been doing it for some

months now. it has been going for big rate hikes also taken from global use because the u. s. said has also been doing so. and arby, i sole reason, as that has be, as has been explained to several times by the central bank, is the stubborn inflation. the retail inflation in august was the 70 percent, and wholesale inflation was over 12 percent and it's been a consecutive 70 months for which holds the inflation has been in double digits. and the retail inflation is also a problem because 4 percent is our b. i ceiling, so it is, 03 percent. well above the ceiling that the eye looks for so it has retained its hawkish stance for quite some time. now. chris charo, the ruby, has been sliding sharply against the ears dollar. how big a problem is this for india? well it's, that's right, chris, that the ruby has been sliding at the beginning of this year. it was somewhere around $75.00 to a dollar. and yesterday,

it nearly doesn't up to date as boys to nearly touch 82. now that's a big slide. the government, of course, has been maintaining that ruby has maintained its been level and it has fluctuated less as compared to other currencies in the world. but the r b i a would beg to differ from the government because our b i has been selling dollars for quite some time now to stabilize. there will be, in fact there have been reports that are just yesterday to states on bank sort of dollars are most likely now prompted by the outbreak to do so to stabilize. there will be several economists have been urging the government to lead. there will be fall and find its own natural level, but the i b, i continues to be concerned about it and the sell off of the dollars continues chris, target ok, dw correspondent and deli char, thank you. and his reminder of the top of business story we are following for you at the sour from a luxury and sports car maker. porsha has made its debut on the frankfurt stock

exchange. the largest i p o. germany has seen in decades. shares are 80 for euro's shortly after trading opened. giving portia a market valuation of 76000000000 and that's a show for now. for more check out our website at the d. w dot com slash business. and of course the d. w. news, youtube channel. i'm chris kolber. relent for me and the entire team. thanks for watching. i'm successful. ah ah, with

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