in china, so what does this mean for the face of the world's 2nd biggest economy and the remnants of a global forcing event. we look ahead to what will happen to katara world called infrastructure once the funds go home. this is deed of the business. i'm paid ferguson, thanks for joining me. another month. another interest rate hike as economies around the world bottle soaring inflation. both the federal reserve and the european central bank have raised borrowing rates. once again, in the united states, rates are going up by half a percentage points with the fed chairman jerome powell, indicating that further hikes are on the cards. here in europe, the ye see bees president christine la guard has also a nice to hike by heart. a percentage point the policy moves are being closely watched by countries like india, whose emerging economies are heavily influenced by the strength of foreign currency . for more in this, let's talk to china. carter k from d,

w is asia department. sorry, good to see. maybe you can explain to me why our interest rates high in the u. s. or even in europe, a source of concern for emerging economies like india. right. good. so here's what happens is when the u. s. fed heights if the interest rate, the difference between the interest rates in india and the interest rates in the us, it shrinks. now this matters a lot for foreign investors because usually emerging markets give better returns than developed markets. but when a developed market like the u. s. or where they, the rates are, i'd there. and what happens in a developing market like india is that the developing market becomes less attractive for, for investors. so there is a capital outro, foreign mr. take their money. and from a markets like india and put them in us talks which are relatively less quality. so

the, but becomes a case of capital outflow. then the ruby also suffers its value, goes down. if the value dips significantly, then the reserve bank of and as also forced to sell dollars to stabilize the value of the ruby and this leaves in this leads to depletion of foreign exchange reserves as well. so largely on these 2 counts, this is how it impacts the and in economy. and then other of cyclical effects take place. kate wonderfully simply explained that despite the challenge as india, as economy is still showing rapidly more, but you say is the high that resilience well kit. i think the jury still out on that one of course a most over a global agencies. and during the world bank and, and the asian development bank, they have come out recently with this analysis that in any gonna me, is largely resilient. and it is because of the growth numbers that it is consistently showing up consistently. 6 percent plus growth rate is registering, which is a remarkable given or what the global situation is right now. but on the domestic

front front, many economists would beg to disagree at looking at the situation here because they feel that while our growth is definitely picking up and inflation also appears to be cooling down, our unemployment remains to be a big, big crisis. recent numbers reveal that unemployment is that afford ticket high, there's not been be a significant development on that front. and also for this area in gale. so appears to be headed for a high current account deficit. so some concerns on those front, but yes, the growth part is definitely a silver lining in the cloud. and just thing that the feeling on the ground is so different from the forecast. now an indian, i'm in a thinner and m o t. he has been trying to lower investors over the past few years with his make in india campaign. how would you say he's been faring with that? oh, well it's, it's created a good buzz, strong buzz for india, a global india is now seen, is being seen as

a country that has the ambition to become the next next factory of the world and our, our tract, a lot of investment from china towards india the situation in china is also helping india bigger the china 0 corporate strategy has led to franken manufacturing there . so we've seen players like fox gone show interest in india also new policies has been announced. are now a semiconductor policy, is also in place which are which the ambition of which is to make india. there are future semiconductor. oh factory. a. but then all these are still plans in the making. it's this not something that has, there's really showed a big results. in fact, the latest numbers that came in there will be the short contraction or in manufacturing. so that's how the situation here is right now get her right. tire cat. okay, thank you so much. turning to china where the latest figures on industrial production and retail sales for just a further slow down in growth,

momentum in the world's 2nd biggest economy. industrial production rose to point 2 percent in november, a much smaller rise than in october. retail sales didn't fair. well they were down 6 percent here on here, the biggest fall in the 6th month. the figure is published by the national bureau of statistics come a week after the government to relax it's 0 cove with strategy in response, in response to growing public on rest. to talk more about this, let's bring in doris fisher, professor of chinese business and economics at the university of its book. doris, well, come along and it's rather lackluster data does come a week after the government eased it's 0. hope it restrictions, but infections are on the up again. what can we expect policy wise? well, the a decision to are lose a covered policy was probably already a result of the government anticipating this of economic pressures that they faced now. and the government will look into possibilities to push for more local

demand to recreate trust in the kinetic development probably will come up with some support for private and to pronounce who are the biggest losers i would say. and, and especially the smaller companies in the past month, policies. and so we will see, and it's already coming out. actually there was already announced a policy for him for boosting demand coming out today from the state council. so we will see more of that. and uh, the government seems to believe that well or to hope from her probably that we will have a very short period of, of really difficult of a very difficult situation where a lot of people fell ill at the same time, but that afterwards they can somehow recreate the dynamism or some dynamism to get over the crisis. he mentioned public trust there, but we are thing worth of medical supply shortages in some places that people panic

. buying how big of an issue is this? well, it depends a bit on how we assess as a severe and it's after potential infections that now circulates through the population of the chinese. i mean, there are 2 things that i think are and, and especially in demand. and one is a personal tests, a private test that you can do at home. and the 2nd is a certain medication that the chinese government has in the past propagated at being very helpful against at least the symptoms of a covet infection. and a, well we in abroad have not necessary to use those, or we have probably more use of dia, some penicillin or so i guess it is a problem, but the, some of those infections may not be as severe as feared. so for those people leave, the medication may not be important. i think the most critical question is how many

intensive care units that government of the hospitals have in place, and how many of these will be necessary to support those people who really suffer severely from. covet ok, doris and finally briefly with momentum slowing down in china. what impact is that going to have on the rest of the world? oh, we will of course feel that i think oh, those are some has this has been partly anticipated because until let's say 2 weeks ago we were expecting that the economic situation will be difficult because of the lockdown to china. now we have to prepare that the in the coming weeks the situation will be difficult because people for little fall, ah, so, so in a way this has been anticipated. but of course, we also have to hope that the calculation of the chinese government, that this will be a several weeks issue and afterwards or china will learn to live was covered. and somehow that you come on review or recover that this is kind of a hope is going to materialize or from some chinese economy so that they expect

that it will take about a half year to for the chinese government. sorry for the chinese economy to really consolidate again or to strive again. right. start, fisher. thank you so much. thank you. now to some of the other global business stories making these germany may manage to avoid recession in 2023, according to the keel based institute for the world economy. it's prognosis compared to other recent studies which the chest that europe's largest economy is on course for a contraction next year, or b is less severe. one than initially thought the you is patching to invest 10000000000 euros in southeast asia. it's part of a plan to offer a kinder way to, to china's influence in the region. the news came during a meeting in brussels between the leaders of the you and the association of southeast asian nations. as most

expensive and controversial world cup in history, which is at the final stages, it's still unclear what will happen to the $200000000000.00 worth of infrastructure that was built for us. in our next report, we'll look at the possible face of stadium 97 for a temporary arena, made entirely of shipping containers. in this ancient r a board game, it's all about strategy mohammed, as slight. he loves playing darma is his la game helps keep his mind sharp. now his playing with foreign football fans, teaching them the rules while bringing them closer to ca. terry culture woke up, visitors aren't just expected to leave with memories of football here, but also elements of good terry culture and have been this villain. and it's very important for us to keep our culture alive in health. and we're using the welcome as an opportunity to share our cultural heritage and our perspectives with a whole world of garage, though,

le papa of mumbled in the literature cutter is also planning to give the football world a whole new stadium, stadium 974 made up of 974 recycled shipping containers. it will be dismantled out of the world cup to be shipped and rebuilt in another country. your guy is interested. it wants points for sustainability for its 2030 world cup bid. climate activists aren't impressed. it's an interesting idea, in theory, in practice, there are very few details on what's actually gonna happen to the stadium if you don't transport it or you transported super far. and then you just use it once is actually worse for the climate than if you had built to stadiums in those 2 different countries. some experts consider the world cup a milestone when it comes to footballs. transformation never have so many people from the arab world visited the event and rarely have there been so few european fans after all, never before where flights and hotels as expensive as this year. the most popular

form of popular entertainment accessible to the masses to one that is geared towards the leech. just look at the pricing. the world cup and cut are, may have been the most controversial one ever. still could. harry's hope that fans will take something good home with them, even if it's just the dumber rules. and that's all for me. and if, if, in here in front and from where you can always go to d, w dot com slash business. and you also find this on the news channel, and the next time is good by and take with

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managed by frappe waterloo. first ah ah, this is a domain here, live from berlin, fresh out again to house on cuts off the power and leads to people's debt. the southern city has faced repeated attacks by russian forces since it was liberated to buy you cried in november. also on the program you leaders rating in brussels, confront challenges including the ukraine war on their door staff and.