hang up, inflation up. he cannot make growth down on the back of storing 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. 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 gives portia evaluation of 76000000000 euros. while the initial public offering comes at

a time when markets are inter moral, surging inflation and recession worry. wagon effects raise over 9000000000 euros from the sale of portion shares. alright, let's come over to frankfurt. and our correspondent actually respond 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 dimes 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 by 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 whereby these cars and this is water volkswagen. really a was banking on in, in, in indiana. it does fear stand, vindicated with a kind of response. so this idea has gotten so far. no asked us just by selling non voting shares that an hour being traded in frankfurt, volkswagen raised more than 9000000000 euros today. what role the company use the cash flow? 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 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 piece family i didn't ask 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 a bunch of folks ivan pot. it could pull it off. and that's one of the reasons why it is a, this 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 $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 and are the challenges come at a time?

and 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 of almost hartzer. he's an economist at the e for institute, one of the research institutions behind this projection. 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 that 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 to have 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. and 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 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 winter. and this would be a situation where we have to ration this gas and this 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 a 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 its a to pacific island country to stem china's influence. 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 in your opinion, announced it's a package of sanctions against russia. the new package includes a legal framework for a price cap on russian oil sanction the head of the european commission on the line said that the proposed price cap is aimed at reducing rushes revenue and keeping energy markets stable. the u. s. department of justice, sad that 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 bern made up rent a massive investment fraud to his burnett. palmetto investment securities, the payout will go to more than $27000.00 victims of 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 reduce depreciation against the greenback has accelerated timothy us fed rest of interest rate hikes. this year i for india 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, i 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 taking from global cues because the u was 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 written inflation in august was the 7 percent, and wholesale inflation was over 12 percent and it's been a consecutive 70 months for which holds the inflation has been 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 i b a looks for so it has retained its hawkish stance for quite some time. now, chris, tara, the repair, has been sliding sharply against the years 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 are 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 better 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 stage 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 avia continues to be concerned about it, and the sell off of the dollars continues chris. target ok, w correspondent and alley char. thank you. and his reminder of the top of business story we are following for you at the sour german 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 $76000000000.00 and that's a show for an hour for more check on a website at the d. w dot com slash business. and of course the d. w. news, youtube channel. i'm chris kolber and berlin for me and the entire team. thanks for watching. i'm successful day. ah ah, with

off the coast grease, russian oil is being sold illegally and investing is team humans. the criminal activity on the you can see as the readership owners hunt oil from russian tankers. they violate the u. oil embargo on a massive scale. in 30 minutes on d. w. o, ah, devastated with our we can with cars carry defects of climate change. i mean,

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a life threatening film project that became a major milestone in their lives. love, seduction and power. ice cold passion starts october 8th on d, w. ah. this is dw news live from berlin. russia prepared to formerly annex for regions of you cried on friday. moscow says it will incorporate the regions which voted in so called referendums. the stage is being set for an annexation ceremony in moscow.