senior to recover, but will the country really be the driving force of the global economic rebound? as the international monetary fund predicts more from our correspondent and as its corporate acquisition, clancey, growing pushback in the west. many are asking themselves how far should china be allowed to go? i'm chris kolber, welcome to the program. inflation and the 20 nation eurozone fell to 8.5 percent in january exceeding analyst expectations ahead of a key central bank meeting. the new figure continues a 3 month trend of slowing inflation, things and large parts to falling energy prices. and it's likely to put more pressure on european central bankers before they're meeting this week. for a closer look at the matter less bringing clemons who's head of the for institute, one of germany's most renowned economic research institutions. welcome back to the program clemmons. so consensus among financial experts is that the c b will raise

interest rates by another half a percentage point a tomorrow. is that necessary in light of the data that we got today? i think it is clearly necessary. what we see is that yes, headline inflation is coming down because energy prices are raising a little bit, but we don't know how long this will last. and what's more worrying is that car inflation is on the rise and has been on the rise and is like, this is likely to continue. so against this backdrop, it is important that the c, b does signal it is determined it's, it's fight against inflation about the core inflation here in a minute. but before that, so you mentioned yourself energy prices have been dropping, have been decreasing dramatically when it comes to natural gas, for example. so how much of this easing and inflation can actually be attribute it to the attempt of the european central bank to fight it?

the impact of monetary policy comes with the lag, so it's unlikely that current economic policy action has a big impact on inflation. it does influence the exchange rate. that's an immediate impact because with a type of monetary policy the, the, the, the in for the, the st. change rate of the year is tab ally's and rise. the little bit of the major impact comes later. and part of the major impact is of course, that inflation expectations will change and that will induce people to change that plan. so if people think inflation will be high in the future and the central bank will do nothing against it, they will adapt to that and increase wages more. and the object of monetary policy is to prevent that and to convince to convince people yes, in one or 2 years, we will be back to lower rates. and we have to keep in mind, of course, that a point 5 percent for january is more than 4 times higher than the inflation target

. now your institute is warning of high inflation solidifying. you mentioned core inflation is rising. why is that? this is because, given that we currently see a high inflation, a lot of agents in the economy in particular, in wage bargaining, adjust to that and they think ok, inflation will be higher for some time. and that's a set of forfeiting prophecy because then wages are rising more quickly. companies raise their sales prices and inflation broadens out. so it extends beyond food and energy. and that's dangerous, because once people really adjust to this and believe inflation will be higher, it becomes much more difficult for the central banks to fight this. so the central banks need to be determined and keep the inflation expectations low. how

big of a sure is the disparity between europe and the u. s. when it comes inflation and central banks attempts to fight it briefly. if you could add it the, the difference is important. so in the us, inflation is less driven by energy prices and more by domestic factors, because fiscal policy has been more expansionary. that's why we see this right difference now, and the c b should indeed focus on the european situation and less a compare itself to the fed clements 1st president of the institute. thank you for your not your your analysis. thank you. and i'll look at the other global business stories making news. european consumers bought more than a 1000000 new electric cars last year, setting a record for market share in the you. battery powered cars accounted for just over

12 percent of new car sales compared to around 2 percent in 20. 19. you has agreed to ban sales of new petro and due to cars from 2035 onwards. south korea recorded it largest ever monthly trade deficit in january of $12700000000.00. trade officials blame slumping, ship export and higher costs for energy. the 11th consecutive monthly trade deficit for sol with ship exports down 45 percent here on lebanon has officially devalued its currency by 90 percent. the 1st official evaluation in 25 years now, $1.00 it's equal to $151100.00 pounds. market exchange rate. where much worse, however, reaching 5759000. the current gradually lamed on decades of corruption. miss management and the financial met, the chinese manufacturing industry continues to recover reporting to

a key indicator. the exciting index reading for january rose 2 tenths of a percentage point from december bud remained under the 50 point mark, singling economical this reading. it comes on the heels of the international monetary on saying china with its 0 covert strategy. abandoned would be the driving force of the global economic recovery. i asked are type a corresponding duty, lee of things in china, factories and offices were and back. indeed back to normal is the complete opposite to the 0 cove it era. there is no more quarantined health coles and pcr tags. and people can finally go home after 2 years. and many are embracing a new normal as domestic trips surge rapidly during the old and new year. as people can see during the holidays and our business add

a tourist spots are especially excited about this re opening. but i have to say is still far from the original situation because the impact of the previous trig restrictions is still there during that period. sharp and rest around were closed permanently, and a lot of factories, lack workers to maintain their regular operation, which also prompted some international companies to leave china cerro, although china is opening up again, i would say is still not the same as before. and there are some experts who are predicting their to china's economic rebound could be weaker than expected. why? oh, there are several factors about earth, but the men reason is because after the lunar new year, most chinese people are still more inclined to save than to spend the sinister

economic damage caused by the 3 year long cobra policy hasn't fully recovered. and one of the experts also says that are the london festival, which is on february. first would be a key timing for people to see whether china's economy will re bowed in time. dw corresponded usually in typing. you too. thank you. and staying in china, plans by firms dare to purchase major stakes and overseas companies have been running into growing pushback on the west authorities last month. last last year. stop the sale of danish ship shipping container, manufacturer, merced, katrina, chinese company over monopoly concerns and germany, the participation of the state shipping company, costco and terminal at the port of hamburg caused a stir though eventually in minority at stake was allowed. the question remains, how far should china be allowed to go?

ah, shipping containers are pretty tough, a crash test by the danish company, milk container industry, china international container limited wanted to spend around 1000000000 euros to become majority owners of this danish firm. but the sale failed due to objections from the competition authorities in germany and the usa. otherwise, at china, would have controlled 90 percent of the global market for refrigerated containers. the corona crisis clearly showed how important containers are for global trade. and chinese companies saw an opportunity most chose china as the buyer, which was surprising because everybody thought that the competitive authorities would decline the sale. and that is exactly what happened. so in china is simply too big in this industry to, to buy merce or contain industry. and that is why they're the same fate. chinese

investments in the european union are now being closely scrutinized, like those in the port of hamburg, the chinese state shipping company. costco recently acquired a stake in chicago terminal here may be just a small steak, but in the e. u as a whole 10 percent of port capacity is now in chinese hands. the bertelsmann foundation has scrutinized chinese investment in germany and analyzed the strategy behind it. so i'm giving on the one hand china has the made in china 2025 strategy at the political level. it aims to make china a leading industrial nation. the acquisition of high tech companies abroad is explicitly part of the strategy. the federal association of german industry generally sees it as positive when chinese companies become active in germany. it's a vote of confidence we discussed on the discussion about this company operating

in the port of hamburg. it hinged around this question of whether a chinese shareholder could make decisions that we don't like. but when they're not in that position, and i don't have any issue with the purchase and see if the positively of course we have to look after our own interest in contrast, sell off the gym and i was sort of also called funds called for now the agency around the failed contain a deal has abated, global shortages of east and demand is falling still for western firms. the purchase attempt is the latest sign that political powers are uneasy over major deals with china. and finally, at the end of an era, it's been called the queen of the skies, but the rain of the jumbo jet has come a step closer to ending boeing has made the final delivery of it's connie 7 $47.00, the double decked giant of a nation is now no longer in production with large plain falling out of fashion in favor of more efficient twin engine aircraft. it's made in flight,

came back in 1969 going employees watched on as the last production model was delivered. more than half a century later. and his reminder of our top story at this hour, inflation in the 20 nation euros on fell and january to 8.5 percent beating analyst expectations. of a key central bank meeting. the new figure could add pressure on european central bankers before their meeting to do that. social thanks for watching ah, with,

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