where customers are even bringing their rolex watches just to make ends meet. and a new report by the international energy agency predicts fossil fuel emissions will peak globally in 2025. as consumers, flea higher prices. hello, and welcome to the show. i'm seeing directly in berlin. the european central bank has raised its benchmark lending rate by $75.00 basis points. and other large hike that brings rates to a level not seen in more than a decade. euros on, barring rates had been low for years until the war and ukraine spurred rapidly rising energy costs. this is the 3rd rate hike since russia's invasion, the c, b raise rates by half a percentage point in july. and then follow that with a 75 basis point hike in september or earlier today. and before that meeting, i asked maria de merits us of the brutal institute if raising rates isn't dangerous for an already trouble euros on economy. i think that's probably right or simply

because of the nature of inflation in the, in the you actually in the eurozone is very different than to the nature of, of inflation in the us here. inflation is very much driven. certainly in the beginning, i buy energy prices and i would have been an important to identify because this is what determines what they said we can do. if you're going to raise interest rates without resolving this, of energy prices are you doing is you affected their real economy and without necessarily managing inflation. so it is dangerous. how can you resolve the issue of energy prices? is it only through the war or will we see them settled down over time? that's absolutely essential. and not just for inflation and energy prices. the resolution of the war quickly is absolutely essential. that is going to ease a little bit of a show of the energy prices. and then it is a matter of the transition how quickly we can transition into meeting energy demands, stabilizing in, in newark, librium. and of course, and moving to the green transition. how worried should we be?

how worried should we be about rate hikes for these weaker economies in the euros on? this is always this needle that the easy behalf a thread. is that really a concern? i think it is there anybody? so just that the small countries actually, you really see germany would say no census of the word is the ending of the year of the euro or economy. they are technically recession now. and this inevitably, that this will continue for some time till energy demand stabilizes into a new equilibrium level. so i think this is the, the energy at the, the rate hikes that we're expecting to see from these. we today will affect countries very differently simply because they are the very different way in terms of managing the fallout from the war. so we will see a differentiated impact or off of the, of the rate heights. but in any case, it will not be anywhere near the rate hikes of we have seen in the u. s. precisely because the u. s. is in a very different position when it comes to inflation or into merits. us with approval is to thank you very much. both energy costs are

rising across europe, including here in germany. some households and businesses can't afford those prices . in returning to an age old solution for short term high interest loans upon shop . the customers of the shop into his board have fallen on hard times. there's a video game console in the box done from out of the owner gives the customer a receipt. she has just given the consoling on as a collateral for that, she gets a 100 year alone for 3 months with a monthly interest of 4 percent businesses up at michael myers swan shock. due to the sky, rocketing cost of leaving his customers need more money than they earn. claim he cut it. what before the war lights butter cost one year 39 cents. now it's up to one year or 99 when pies in coffee went from 3 years 60 to 4 years. everything cost more. ah, once alone has been granted, the pon item goes on

a chef. video games rare model trains. anything with some resale value. if the customer doesn't pay back the loan on time, the pawnshop is entitled to resell the collateral that's the normal and many regular fold i can't make ends meet with her salary as groups. so now a lot of people come to her pawnshop who didn't need to do that in the past. the pawnshop is one of several branches, all located in the rural area in western germany. it's noon and the pawn shop is full. mos customers pay off their loan on time and get their items back. frolics, watches are particularly valued up to 18000 years or more. one of them belongs to the boss of a manufacturing company. land. here's the problem for many trade on how their claims don't pay by. they still have to pay their bills and rent taxes salaries in

at the end of the money they bring in their expensive watches in the toilet. one of these men once upon a tv set, so he can pay his gas bill for we used to pay $150.00 euros. now it's $250.00. we feel that and he gets 100 years ago enough for now. at the end of the week, he expects the government's gas allowance payment for the next month. then he hopes he'll be able to get us to be back. let's take a look now at some of the other global business stories making headlines. boeing incurred a surprising loss of $3300000000.00 in the 3rd quarter. aircraft maker blaming hire manufacturing in supply chain costs for losses in government programs. but its commercial plane business is improving. as air travel takes off and airlines buy

new passenger jets. german car maker, mercedes benz says it's withdrawing from the russian market. it's selling shares and it's industrial and financial services arm to a local investor. the company in the local production and export of vehicles after rushes invasion of ukraine in february, rushes industry and trade ministries that car dealer of tow comp, upto dom would buy the stakes. south africa has pledged to take over part of s. com's multi 1000000000 dollar debt to help the utility company stay afloat and ease the energy crunch. the government has already poured large sums into s. com, but south africa has suffered from sweeping power outages due to the company's aging and poorly maintained infrastructure. the war in ukraine is speeding up a global departure from fossil fuel use any adoption of more renewables. that's according to a new report by the international energy agency. the paris based organization says global emissions are set to peak by 2025, giving way to cleaner sources,

including renewables. rising prices for oil, gas, and coal are behind a trend. di e. a said the war was needing to quote, profound and long lasting changes in energy markets. cloudy tempered is an energy economist with the german institute for economic research in berlin. she joins me for more. claudia, this report suggest a turning point, but it's not all good news to limit climate change to one and a half degrees. by the end of the century, there would have to be a doubling of investment in renewables by 2030 to $4.00 trillion dollars. is that feasible based on what we know now? i think it will be feasible if the financial markets are ready for it and we need here they are right framework so that their money is suspended for the right direction into the renewables and the transition and set off a fossil fuel infrastructure. unfortunately, we see also bad things going on on the global market because

a lot of investment is now spent also in fossil fuel infrastructure or drilling said to fossil fuels, which is not in line what we need. and hopefully this will change. you touch on this government's doing enough that question. we also look at the build out of renewables itself, not just investments in fossil fuels. if i look at wind, for example, here in germany, they're great aspirations for building out wind. at the same time that build out actually drags along, we don't see the same kinds of approvals, for example, what is the government going to have to do to, to push through a lot of these projects. yeah, on the one hand indeed we need the right framework for it and the money that the spend in order to increase the share for renewables in germany. for example, we need enough land, which is also provided to install the wind males and also provide the right data framework for it and to reduce the barriers which are still existing. and i think that's true also for the rest of the world of other european countries to provide

the right frameworks that the investment into renewables is coming instead of fossil investments. we need a lot of renewable as investment the i. e. a has also said in the past that more country should consider nuclear as a clean energy option. should that also not be an option for germany? not i think nuclear especially new nuclear power plants as so costly that is not really an option. look at the new installations they need the decade to be installed. they need a lot of investments and we don't have the time for it. we need to be ready by 2030 and renewables of fast. that cheap, and we can install them all over the globe, and that's the answer to it. nucleus certainly is not. we see that in france. how the problems occur. if, if the, our power plants are not maintain it correctly and the costs are too high. so renewable this yansa not nuclear. this idea that we can see a peak emissions by 2025. could this take some of the pressure off governments when

it comes to the kind of activism we've seen when it comes to kind of pressure to speed up the process or does that urgency still there from what you see. i see an urgency coming also because of the war or the fossil energy war we are in and the investments are coming into renewables and it's a speed up process here which is good. on the other hand, we also see investments into the bad things that is fossil fuel. so i think the idea is right by the peak, that they assume. but what we really need now is to have investments ready for renewables. and the governments which provide the right from way frameworks for it, right. cloudy, conferred with the german institute for economic research and berlin. thank you. thank you. and finally, the german cabinet has approved the key points of a plan to partially legalize cannabis, saying that a regulated market would be safer than the black market. germans would be allowed to possess up to 30 grams of marijuana. private cultivation would be permitted to

a limited extent, and adults could buy in license shops and pharmacies, by germany's health minister says the changes must square with you law before legislation is put forward. putting any concrete measures on an unclear timeline. here's a reminder of a top business story. the european central bank has raised this interest rate by 3 quarters of a percentage point in an effort to curve inflation. but the movies likely to put more pressure on an already strain. euro's own economy. all right, that's if russia will be back later with more in the meantime, you can find out more about these and other stories online. d, w dot com slash business are also on youtube under the d. w. news channel. i'm see, here's the invalid. next watch.

with ah, david ah ah ah

ah, to genes targeted attacks on energy supply? how are people coping in here in eastern ukraine inhabitants are preparing for winter. despite broken infrastructure, there's a sense of courage in the it is their hope in the midst of destruction. why? focus on europe. in 90 minutes on d. w. lab has no limits of love, as for everybody. love is live with love matters and that's my new podcast. i'm evelyn sharma and i really think we

need to talk about all the topics that north divides and denied this. i have invited many deer and well known guests, and i would like to invite you to an in the country that will host the world quarter between transformation and exploitation, between education and tradition, between cosmopolitan fleer and captivating wilderness. the portrait of the desert state full of contradictions, guitar starts november 11th on d. w. how frankfurt a lot international gateway to the best connection, self road, and radio. located in the out of europe, you are connected to the whole world. experience outstanding shopping and dining

offers and drawing our services be our guest at frankfurt airport city managed by from bought lou with ah ah, this is these are the news live from berlin. ukrainian troops hold off attacks by russian forces in the east. the heaviest fighting is concentrated in the don bass region present thought to me as the landscape condemned moscow's tactics as crazy. also coming up lebanon and is.