and the burning question at the heart of the electricity plan should using trees, but bio energy counters. carbon neutral state of the business owner was in berlin. welcome to the program. the c v. a signal that tackling inflation trumps all else it is pressed ahead with not point 5 percentage point increase in your is an interest rates that have been cause for the central bank to turn down its approach in light of concern surrounding the global banking sector. however, you see the president christine legard says it is still determined to fight inflation and indicated that further rights rises would be necessary. she added that policy makers were monitoring market tensions. monitoring, let's speak to andrea springsteen, who is a professor of finance sentiments at the university of mazda. thanks a lot for joining us on the program. so what is the thinking behind the c b, pressing forward with this 50 points rates hike? well actually i was not surprised. learning about it yesterday because of the see

be more or less had announce this additional step. and i'm in credibility is really important for central bank. and so sticking to this original plan was no surprise for me. you know, what would have been a surprise fast would have been a say race if i just 25 points or not, race it at all, which is what some analysts had wanted. but how would that have affected the bees wider strategy for tackling inflation? i'm in nowhere near their target rate, 2 percent or so. and so it would have been hard to believe that after not increasing the rate by 50 basis point, right? no, they would return to the initial path because interest rate hikes mean that you will slow down the economy, which is

a problem in some sense. but slowing down the economy just to save some banks would have been difficult to communicate to the public. but there are other sectors, a society that obviously like to see interest rates not rising by too much more because of the impact that it yes, if you say it does have on economies. so is the be walking this line correctly between trying to get inflation down, but also not having a big impact on yours and economy. so i think they maneuver themselves into the situation. i'm in the, the is we're seeing now are pretty tough looking at the economic situation in general. but after having been very, losing their liquidity provision. that's something, as i said,

they maneuver themselves into that the federal reserve in the u. s. a. signal it may take that 10 down it's approach to raising interest rates. should we expect to see that from the c b next time round? perhaps in one of the next around i would say they will, will slow down. yes. and it's not going to take it's toll on the overall approach. i mean, because you've already said that, you know, that that would be a reaction to what the banks want. isn't that just thing? is that the same thing just a later point? well, actually we have to clearly distinguish between banks in the us, in europe, and we do have a strict banking regulation in europe. or, i mean it's sometimes difficult to tell whether it's a matter of regulation or supervision. so i think the banks in the

area are better prepared and have more capital to withstand the facts of interest rate increases. so here in, in europe, the pressure doesn't seem that high to slow down the interest rate increases from the banking perspective. because in general, you should be aware that typically banks earn more money when interest rates are higher because then on the deposit side they can earn larger spreads. i say ok, interesting them from finance in minnesota. thanks a lot for joining us and it'll be a business. my pleasure. well, the nearly 51000000000, you're a lifeline. credit suisse is a see from the central bank by the company. some time investors happen. com and the banks stock has regained some of its value,

but the deeper problems at credit suisse have not gone away. and the swiss authorities and now thinking about its future. zurich is credit 3 says home base and on the streets, it's business as usual. people here appear to be largely unaffected, but the recent turmoil surrounding one of switzerland's biggest banks. most people here welcome the central banks move to lend more than 50000000000 dollars to the ailing bank. thanks to this, i think that's the right step at the moment. and now they have to show that they can do it well and are careful so that people have real confidence. again, it's a systematically important bank and it has to catch itself. and i think it will catch itself. many believe credit suisse may not have to use all the liquidity provided by the central bank, but they're glad the move calmed investors, as the stock bounced back. after all,

banks are more important to the swiss economy than chocolate and watches. it's not likely that they're going to use it, but the fact that it gives a market confidence, sad. you know, the government, we're not the bank to fail or they will intervene or the matter in masters panic are assistant persist. i think this is very effective way to kind of calm down the market moving forward. the swiss government is considering different scenarios, including a forced merger. the idea is that you b us would take over the ailing credit suisse, but people familiar with the matter, say you be us prefers to focus on its own wealth centric stand alone strategy, and is reluctant to take on risks related to credit suisse. now let's take a look at some of the other global business stories making the news. so the largest u. s. banks have thrown a lifeline to troubled 1st republic bank by depositing $30000000000.00 into his

accounts to ease a southern liquidity crisis. among the rescuing banks are j. p. morgan chase. citigroup. bank of america and goldman sachs. argentina central bank has raised interest rates to 78 percent. the $300.00 basis point increase comes after year on year inflation exceeded a 102 percent in february, reaching triple digits for the 1st time over 3 decades. new zealand has become the latest country with at least partial restrictions on tick tock, banning the video app from any device is used by parliamentarians is due to cybersecurity concerns and it follows similar measures taken by the u. u. s. meanwhile, wants to band tick tock entirely if chinese and bite dance went divest it steak and strikes it for german airports of lead to the cancellation of hundreds of flights on friday. german union verde called on security and ground handling staff at airports in dusseldorf, cologne, bon stood, grip, stuttgart and bowden,

bowden. to strike over pay and working conditions. in total, almost $700.00 flights with rounds, $89000.00 passengers were cancelled. next, the word renewable might conjure up images of wind farms or solar panels. but what about burning trees? actually 60 percent of the ease renewable energy comes from wood and other bio mass . but around is brewing over by o energy status as an environmentally neutral source. an issue brought into the spotlight by europe's energy crisis. as europe's winter thaws out firewood firms like this family business in southeast belgium would usually be winding dying production. but the here customer orders are still stacking up, leveled firewood sales. it usually begin in september and wrap up in february. after that our truck would usually only leave to deliver orders once or twice

a week until the next season. but this year, the truck is still leaving 5 times a week in march, as if it was the middle of winter and minus 10 degrees celsius. m one is anita the energy crisis, sparked by the war in ukraine. andre says, demand has been booming, as people seek out alternatives to oil and gas and stock up on supplies, month in advance. this increased interest is having an impact mon washed in, well, when i supply and production costs have doubled. so we've also had to double our own prices to maintain profit margins in lecture to the new school. but away from the noise of daily production, the fundamentals and future of the firewood industry are now under debate. because more trees can be planted, which is classed as renewable energy in european union law. and that means governments can subsidize wood burning so long as certain sustainability criteria are met. but not everyone's happy about that would is officially considered neutral

in brussels. carbon accounting, though burning it causes emissions existing and future forests will absorb c o 2. but climate campaigners say that's to simplicity and argue the current subsidy set up is incentivizing environmental harm. what we see today is billions of the euro's being given by mumbo states to devalue martha industry. and this makes very little sense from a climate perspective, you know. and instead of this money should be redirected to other choices, such as a wind or a solar or heat pumps. and i mean, we are in the middle of a climate crisis and we just can't loads is kind of money to be directed in the wrong direction. you on your upper law, the use rules on renewables are no being reviewed in brussels. some lawmakers want to further restrict which would can qualify for state aid and cap,

how much can be counted towards renewable targets. but industry groups warren, this could see prices sore and to jeopardize. europe's energy security. legislators are trying to hash out a compromise, which is so far out of sight. but by the time this would dries out over the coming months, this market may be changed forever. now it's been a challenge for swimmers everywhere during the energy crisis, took it up and embraced the cold or just pay more for a work at a heated pool, but not for these swimmers. at exmouth leisure center in the u. k, they're doing laps in a heated pool and won't see any price hikes. that's because excess heat from a nearby data center is being used to raise the waters temperature, where most of data centers spend money to cool their servers. these ones are immersed in oil, they all gets warm and is piped over to heat the water. the energy transfer has already inspired others to 20 pools. the currently adopting the technology and

a reminder of our top story, b, c, b has press dad will not point 5 percentage point increase in your is an interest rates signaling that tackling inflation trumps all else had been cause for the central bag to turn down its approach in light of concern surrounding the global banking system. that's all for a man of his team here in berlin from all head over to d, w dot com slash business. or you can find us on the d to e news, youtube channel as well. and we're on facebook as data we dumped business, maybe we'll see you over that then ticket. ah ah, with

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