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 beardley in berlin. the european central bank has raised its benchmark lending rate by $75.00 basis points. another large hike that brings raised to a level not seen in more than a decade. and yours on borrowing rates had been low for years until the war in 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 there in the u. 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 and by energy prices. and that 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're affecting there 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 euro? so this is always this needle that the easy behalf a threat. is that really a concern? i think it is there any effect isn't just that the small countries actually, you really see germany would say no census of the word is the changing 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 it is it the, the energy at the is a rate hikes that we are expected to see from these. we today will affect countries very differently simply because they are the very different way in terms of managing the fall out from the war. so we will see a differentiated impact her off of the, of the rate hikes. but in any case, it will not be anywhere near the rate hikes of we have seen in the us 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 words are 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. what before the war? booter cost one year, 39 cents. now it's up to one year or $99.00 fundraising coffee went from 3 year or 60 to for euro's 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 lives the no marlon, many regular folk i can't make ends meet with her salary, a group. so now a lot of people come to her pawn shop who didn't need to do that in the past. the pawn shop is one of several branches, all located in the rural area and west 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. pretty flexible. my and back on is, here's the problem for many trades mahogany. their clients don't pay by they still have to pay their bills of finance, rent taxes, my salaries,

im not at the end of the month. it is more not that they bring in their expensive watches in toyland. one visits these man once upon a to v sat so he can pay his gas bill room for we used to pay $150.00 euro. so now it's $250.00, and we feel that a he gets $100.00 euro to got enough for know. 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 it's 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 ministry said 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 and adoption of more renewables. that's according to a new report by the international energy agency. the pair space organization says global emissions are set to peak by 2025, giving way to cleaner sources,

including renewables. rising prices for oil, gas, and coal behind the trends. di e. s at the war was leading to quote, profound and long lasting changes in energy markets. claudia tempered is an energy economist with the german institute for economic research in berlin. she joined 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 there, right framework so that the money is suspended for the right direction into the renewables and the transition and set off of 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 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 to 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 framework for it and to reduce a barrier which is 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 for the i. e. a has also said in the past, the more country should consider nuclear as a clean energy option. should that also not be an option for germany? now i think new clans, especially new nuclear power plants are 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. nuclear certainly is not. we see that in france. how the problems occur if, if the apple plants are not maintain adequately and the costs are too high. so renewable this, yes and not nuclear. this idea that we could see a peak, an 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 the 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 this is 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 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 firmware frameworks for it . right? quality conferred with the german institute for economic research in 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. but 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 moves likely to put more pressure on an already strain. euro's own economy. all right, that's there for our show 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 channels i'm seeing here is the invalid. next watch.

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to teams targeted attacks on energy supply. how are people coping with 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 30 minutes on d w. oh. hello guys. this is the 77 percent the platform for

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subscribe to d w documentary on youtube. ah ah, this is dw news live from berlin, lebanon, israel, and a decades long distance over there, shared the border. the u. s. called it a historic agreement. the 2 nations are technically still at war, but both now hope to benefit from the valuable mineral resources. also coming up.