and it's hard to find staff in a fortress after wrecks at castle owners in england struggle with 1st world problems. this is dw business news. i money's enough welcome the collapse of 2 american banks ascending shock waves around the world and putting pressure on markets. investors are worried about a contagion effect beyond the u. s. aden shares are seeing steep losses on tuesday, and european banking socks suffer their biggest drop in the year. you, as president joe biden saw to reassure depositors on monday, insisting he will provide for the safety of the banking system. meanwhile, whole however, ratings agency moody's downgraded the debt ratings of collapse signature bank deep into junk territory. moody's also placed the ratings of 6 other u. s. banks under review for a downgrade. now helping fuel those fears over midsized lender is,

is the concern that many of them may be sitting on under valued assets because of interest rate hikes when interest rate hikes were low. banks like s v be deposited their customers funds into long term bonds. does interest rates have climbed dramatically over the last year? they lost money on those investments. now that's not no problem. usually the bank can wait until the bonds are repaid. but if the bank is forced to sell bonds at book the loss, the same time rising interest rates, our customers in s v b is case the struggling tech industry withdraw money. so the bank had to sell assets booking those losses because they had to meet withdrawal requests that turned into a spiral of fear and run on the banks. hon space i book us is joining me now. he is chair of banking and financial services at the university of who and hines and germany mr. book are at the heart of the story as we just saw,

are rising interest rates. and we're not only seeing those in the u. s. though the e. c. b, for example, is also jacking up rates. can we expect more collapses of these smaller regional banks to follow and other countries? no look really became expected. what must say is that the fast increase in interest rate, c, e, c, b was forced to undertake you to inflation leads to certain vulnerability, and this is very evident in europe. you should be, should have started one, you're always increasing interest rate. now he has to do it very steeply, and this means for a long term bonds lose a lot of value. and if you have to realize this value and the trouble, but it's a question about trust sep in california was a class of the bank run. when there's a ronald liquidity, no bank where you survives that this bank was particularly badly place to cope with such a problem as it didn't even made a proper risk management. also industry exposure. ok,

so this seems to be contained likely to the specific bank. now the fed is meeting again next week to decide on interest rate increases before the bank collapse. investor is expected more rate hikes on the horizon. now do you think that the fed will continue its course of interest or higher interest rates despite the bank collapses? i mean, inflation is still there, it's, it's half office antibody fighting license. i think they'll be increased, but maybe to review stress banking systems or might be willing to get on more slowly towards the things go wrong. what some market that isn't set that interest rates. my keys all just would be single. that's in a deep crisis already. and i see this is signals effect. don't like the price. ok, so higher interest rates are a good sign. in this case, according to the bank, a collapse has spooked investors worldwide. as we mentioned,

and for many it's conjuring up images of the 2008 collapse of lehman brothers, which really reverberated around the globe. it wasn't just contained to the us. now there are worries that this one will be the same. could you perhaps elaborate and how for it is similar, or how far does different well described to show that banks down the vulnerability called liquidity pool to the on the be. so a tax on this liquidity, by doubting investors, will always lead to banking cries of the respective bay. but what's deaf, the difference is, we have this big u. u. s. housing market financing debacle. they're a lot of power refiners that have much less value than, than that was placed on them. and so we have asked a lot of from, from before you, how to great degree and due to the secretary of this claim,

this risk was prayer worldwide. we had a totally different black mouth if we be comparatively the big bang, but if not, predicate risk louis will fly. it has some influence on the financing of small tech companies in some countries. but this can easily be replaced by other banks or if necessary by the state. so we are in a different situation at the moment, but i must take care of this. this is price doesn't evolve in certain directions. thinking of involving the u. s. government and the fed are now guaranteeing businesses will receive their deposits from the collapse banks. do you expect that this move will prevent any further collapses and will really stop the panic that for detrimental right now? one thing is, do we trust in the bank? and there might be some damage in the states because there are some revelation. and similarly, the level which, where we have a lower level of regulation at the rate $250000000000.00 total s a bank with little

bit less than $250000000000.00. we've already very big bang and have a time to be systemic. so i think there's some problems in the regulation nighted state through the state have to cope with to come back to the main reason, i think for this guarantee was a different one. it about silicon valley, silicon valley. it's very important that they, all the small tech companies are seen as a guarantee, a future growth and technology, logical advancement. and if these companies get into trouble, this might have long term negative impact the united states and on its position in world economic power. so i think that's why biden was willing to guarantee all the, all the, although she was not obliged to do hands better, broke off. thank you very much bye now to some of the other global business stories making news. in the midst of an economic crisis, argentina has reached

a deal with the international monetary fund for the disbursement of another $5300000000.00. it's part of an economic assistance program by the i m f that has now sent almost $29000000000.00 to the ailing economy. nigeria central bank says old ny run notes will remain valid until the end of the year. the move is aimed at relieving an acute cash shortage. the old bank notes were initially supposed to be taken out of circulation in january, but a shortage of new bank notes post and caused anger and unrest. boeing is expected to sell nearly 8077 dream liners to, to state our own saudi arabian airlines. the list price would be nearly $37000000000.00. but airlines typically get undisclosed discounts when buying planes. saudi arabia is keen to boost its aviation sector as it seeks to diversify its economy and wind itself off of oil. a wave of work or a shorter,

just hit industries across the board. following the pandemic, one of them is the freight shipping industry. well transport countries accompanies sorry, i've been flooded with orders after the reopening, they remained understaffed. now a belgian start up found a way for ships to set sail without their captains of freight shipping. the safe hands of captain, who's a 130 kilometers away. this. no one aboard this vessel just cameras. broadcasting to put on from the linens office an antwerp he steering remotely on a computer. it's almost the same as that as on the vessel or a small differences, but the system allows you to, to hear the engine ah, the small things that we can hear or listen to that makes that we are on the ship to remote work. the captain can steer 3 freight ships at the same time. belgians

start up see far, has developed technology to address a shortage of captains. it's been a growing problem for the industry as ever more goods are set to be delivered on the waterways. expedited amal hm. that means that we will need captains and crew to man these ships and this kind of personnel. if you look at how things stand as really hard to find, it's become a massive problem for any shooting company to keep their fleet running home, figured it out. i and dish referred to the time. that's why this shipping manager installed c 4 technology and 3 of his freighters, his company, transport, soil, sand and rocks within belgium and tries to keep a small carbon footprint, a single truck or causes for pollution, right? it's a oak, it's an easy way of going from point a to point b, but where you're at per ton exhausts are quite high. and so it comes to the fact that one truck can transport $1731.00 water trucks can transport 17 trucks worth of soil at the smaller ones. and our larger ones can double that german companies want

to make use of the technology as well. like this company that has placed an order to equip 5 vessels, they hope the tech will help make the job of a captain more attractive. the maintenance sucrose sent out we want to be ready for the future to enable our employees and future employees to work in a modern environment. business not as good as includes not being tied to working aboard a ship, but to do their job on land. it gives us a chance to offer an entirely new work life balance. i've been instead of doctor shopping, that would be wiped down from the linden exchange, the wheel house for an office. the reason is because i started the family. i had a child and i missed a child, and this kind of work allows me to still sill and also be at home. as of today, see 4 to acknowledge it can't be used in germany. it hasn't been approved by

authorities yet. the company hopes that will happen soon. and freight ships aren't the only unexpected place of staying empty. i'm at work. her shortages, staffing crunch us can be especially isolating. if you live in a castle like the one fans know from the t v series. downton abbey, high clear castle used to be a famous event venue, but that was before breaks that meet the contests of high care castle in southern england, lady fiona canarvy and her husband, the earl, simply can't find staff to hold large weddings anymore. she says they only have people to case or for parties of 20 or fewer. we cannot find them when we go to our usual agencies and try to find people. they are not that if we ask for 13 might turn up. we've gone to all the local colleges. there's nobody we haven't asked. lady, colonel ivan blames brags, s e u students attending university in britain used to be

a vital workforce. now they're no longer available to work weddings here. after brags as its life imitating ours as the fortunes of high care castle, mirror, the cup box, sit down to knobby the show, also dealt with a dwindling number of staff at the abbey over the years. and that's our show for more check out d, w dot com slash business, and they did all the news youtube channel brought on facebook for me and the business team here in berlin. thank you for watching with

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people passion and their dr. sports life every weekend on d w o, [000:00:00;00] a business day that we knew line from berlin. ukraine says it's future depends on the winning the battle for battle. tense fighting as raged in the eastern city for months with each side suffering heavy losses. that opinion is divided over the