be a formality right before we go. here is a reminder of the top, sorry, we're falling for you. us defense secretary lloyd austin and his russian counterpart to say gate showing go, have spoken to each other about tuesdays drawn incidents over the black sea. the u . s. military says it's m q 9, reaper drawn, was an international ass base, went to russian jets dumped fuel and it causing it to crash. fears of banking, trouble spreading to europe. that's in business news up next. i'm told me a lot of well, i what secrets lie behind these walls? discover new adventures in 360 degrees. and explore fascinating world heritage sites. d w world heritage 360. get the app now.

i could have done more. will save you discover stories that you just click away. find out best documentary on you to really good morning to see the world as you've never seen it before. describe now t d w documentary ah, banking fear spread through europe. worries about credit suisse. trigger a sell off just days after a bank dealer in the us. raise questions about solvency. we'll ask an expert if there are a substance behind the panic. and south korea doubles down on nuclear power as it's

drives for more energy autonomy. sol wants to increase lucrative energy exports. welcome to dw business i magazine. worries about the stability of the banking system have spread from the us to europe. shares and credit suisse fell to a record low after its biggest shareholder. saudi national bank rolled out a new cash and fusion. the lender has appeal to the swiss national bank for a public show of support. concerns have been growing about the banks liquidity on both sides of the atlantic, falling the collapse of silicon valley bank and the u. s a week ago. now for more on on this, i'm joined by octavia moran z c of consultant, c o. p mass. mr. moran, the credit suisse, has asked switzerland's national bank for a statement of support, confirming it as financially healthy. do you expect that we'll have to provide more

than just reassert and reassurance, financial support? maybe i do expect the going to have to actually put some money on the table. the simply making these pronouncements is not going to do be enough. i mean, credit suisse is on the severe attack, people are pulling out money out of criticism, a furious rate. and chris is simply not going to be able to pay those deposited. so some kind of the co psych app and it looks like the swiss national bank is going to the step of the fray and actually put some cash on the table. rather than simply having pronouncements about moral support for credit suisse. what would the impact of such a bill out be on the european market? if a swiss bank out of all countries would have to be bailed out? well, i think for the, for the swiss financial market center is going to be an absolute catastrophe. i think it has been already, so people have put that money into switzerland in large amounts in the private banking and wealth management spaces and asset management. in large part because

system has this idea of stability and conservative investment of your assets and capital preservation. and that's the kind of clients that are swiss banks of attracted, that's all. now put the question credits with credits with in countable damage to systems reputation as a financial center. and i think the 1st national bank in this was government, fully aware of that, and want to make sure that this doesn't go any further. now this is all happening, of course, in the context of 2 bank collapses that we've seen happening in the us this past week. and how far is this related to what happened to the s b b, for example? well, i didn't have any direct connection with the credit suisse in s v b, i didn't credit. was that a big exposure to silicon valley bank at all? i don't think this was bank had large deposits with b, so it's not a direct connection. but i think what's happening overall is that we're seeing a, an environment we've had a very, very low interest rates, a very extended period of time. and that's true in the u. s. and it's true in

europe as well in switzerland. bit less the, the s and b is bit a bit more careful in terms of management of the switch currency. but overall we've seen very, very low interest rates for a long time. and now suddenly we've seen interest rates rise very quickly, particularly in the u. s. and that is going to break some things that's going to break. some banks are very dependent on interest rates. it's a very core part of their production process. and as you see big changes that some banks are not going to be able to keep up compound with that, i think a credit was done some hold the bunch of damage to itself outside of anything as the b is done. so or anything related the b. so there's been some monumental missteps, the credit suisse in terms of risk management in terms of investments. and that's came back to haunt the bank. now the, you mentioned the interest rate aspect in the story here. now the easy be is expected to increase our interest rates again to morrow. and analysts expect half a percentage point increase. do you think that today's events might factor into the

easy be as considerations for tomorrow? definitely, i don't think the easy be wants to give impressionable. they are panicking and responding to the latest news and by the minute making decisions about where to put interest rates. so i think they want to convey a sort of a sense of greatest stability that and thought about how they're going to approach interest rates. that being said, there's going to be tremendous pressure on them now on the e. c. b and on the fed who are both making decisions this week about and straight to not continue with these big increases at interest rates. because there has to be some losses involved in that. basically, anyone who's sitting on bonds, a bond portfolio, or a loan portfolio like banks or is going to have to take losses as a result of these increases. so the banking industry is screaming out for the central banks not to continue with these increases the central banks, on the other hand, have to still fight inflation. and the only way they can do that is by continued to increase interest rates. so the central banks that e, c, b and the fed included, are in a very, very difficult bind right now. difficult times for

a central bank. thank you. i'll tell you all mirandi. now let's get the latest from wall street on this. and these developments and teddy australia joins me from new york teddy, have there been recruit repercussions from the banking self in europe, in the us. well, credit suisse is a global financial institution. so it's of greater consequence, right? than silicon valley bank than signature bank, which we did see fail this week and cause broader turmoil in the market here in the united states. now, the pronouncement pronouncement by the swiss national bank to support credit suisse, is going to paris some losses. however, we have seen some damage here in the united states. the s s p has dropped a point 7 percent. now really, the banks are the ones that have hot hit, the hardest goldman city group. sliding regional bank certainly sliding. but what we're looking at is investors panicking, looking around at the financial sector at s b,

b at signature bank at credit suisse and saying this is incredibly unstable, pulling out their money and trying to find investments that will pair their losses . now we were just speaking about the difficult situation that central banks find themselves and right now that you tv, especially because of the interest rate. hi, tamara, how might the fed react to this volatile economy? well, the fed has 2 objectives, right? it's to ensure financial stability in the economy and to tame inflation. now the ladder of which it has been doing from unprecedented rate hikes here in the united states and it does appear to be bringing down inflation. however, it is causing some financial instability. we can certainly say it contributed to the failure of silicon valley bank and subsequently signature bank. there are also some issues there about the fed supervisory issues, but with inflation, right?

we have seen inflation cooling here in the united states. the fed isn't fully happy with the pace, which is why their expectations that they would continue to high rate. however, now with the financial instability we're seeing there are bets that the fed is going to do a low hike or a no hike after they're meeting. next week, so all eyes on central banks. thank you very much. teddy austro now to some of the other global business stories making news. german authorities say they've taken down the world's largest crypto currency laundering side and saving the online platform. chip mixer officials secured around 44000000 euros worth of digital currency ship mixers. operators are suspected of laundering money for drug dealers and russian to russian military hackers among others. about half a 1000000 workers in the u. k or striking, causing major disruptions, teachers, doctors, and london underground staff among others walked out. most of them demanding higher

pay. the country has been hit with a wave of strikes in the past months as workers react to double digit inflation. now this comes as the u. k faces its largest fall in purchasing power in 70 years. that's according to a government commission study. it says household income will continue to drop and living standards won't return to pre pandemic levels before 2027. electronics join samson, cons to invest more than $230000000000.00 in building 5 new chip factories and south korea. over the next 2 decades comes as a part of the south korean government's efforts to develop a mega semiconductor semiconductor hub in the country. and we stay in south korea for our next report where the government wants to gain more energy autonomy. that's because depending on other countries, for energy can be costly both financially and politically. russia invasion of

ukraine was a stark reminder of that. now soul wants to boost its production of nuclear energy . by the end of the decade, nuclear is supposed to make up a 3rd of its supply. south korea imports more than 90 percent of its energy resources, boil coal natural gas in uranium for nuclear power. and unlike many countries, it's not connected to another electrical grid, and so must rely on its own power infrastructure at all times. hunger boon. my good that, oh, there is a north korea. and on 3 sides, there is ocean. for connie said, south korea as a kind of energy island is home. that was so we have to create our own energy and be self sufficient. that's how we had an entire year. so 3 already has $25.00 reactors in operation which can take up to 10 years to build sol plans to resume construction on to reactors this year and ramp up nuclear power to more than 30

percent of total energy production by 2030 significant portion of south korea's g e b depends on trade one, in the near future, electricity will become the key power source of what we call the 4th industrial revolution. that means cheaper electricity will help us sharpen our competitive edge when it's new. when you then go with the new south, korea is a top 10 global energy consumer with energy intensive industries, especially electronics, ship building, and petrochemical, driving the country's economy. reducing energy costs is paramount. russia's invasion of ukraine is at least partially influence increases in the cost of those energy inputs. so 3 is public utilities reactive. raising prices with the cost of home electricity spiking almost 30 percent in the past year. but so 3 is not only relying on nuclear energy in its own country. it also exports reactors,

for example, to the united arab emirates in february, the 3rd a p r 1400 reactor will begin operation there with another to follow. so 3 also hopes to compete in the new market featuring smaller modular reactors with hopes to capitalize on its 20000000000 dollar u e. project target. the pie. so nuclear power is shown function of the construction period. south korean succeeded in thumbs up on time on budget delivery of the plant. so in that google and i think oscar has a good advantage. thank you for watching. ah ah, star chef with a mission that goes far beyond good cuisine. for 2 remarks, social commitment is

a matter of course is cooking school is open to everyone. there is one requirement, a passion for their culinary arts with dw into the conflict zone. with tim sebastian. just over a year ago, the main russian attack on ukraine was launched from bella. luce composition still survives that even though it's lisa is in exile in with you amy. she svetlana tica loose guys with her roofing for a ukrainian victory. but she said to propel her group, how in belo i'm horrible, conflict, so in 60 minutes on d, w. o. in journalism,

helpless and overcoming divisions. save the date for the d. w global media forum 2023 in bonn, germany and increasingly fragmented world with a growing number of voices, digitally amplified. see where this clutter can lead what we really need, overcoming divisions into vision for tomorrow's journalism. save the date and join us for this discussion. at the 16th edition of d w global media forum ah ah, ah, this is focus on europe. i'm lar bipolar award. welcome to the show. it's a power.