china, not everyone is excited about it. we'll take a look. i'm seeing there's the invalid. welcome to our show. central banks and regulators raced to reassure markets and customers monday, after one of the world's largest banks exit at the global stage. and of course take over the details of a 3 point. $2000000000.00 deal for credit suisse rattled, some investors, regulators have sought to make one thing clear. the focus is on depositors and the health of the overall banking system. switzerland's government says it was left with very few choices and so it said supporting swiss global banking giant u b. s is take over of rival credit suisse was the best option to avoid a financial crisis. the bankruptcy of a global systematically important bank would have cross irreparable economic term oil in switzerland and throughout the world. for this reason, switzerland had to take the responsibilities beyond its own borders. the south

central bank has agreed to offer a $100000000000.00 loan, and the government will guarantee up to $9000000000.00 of potential losses. should you be s his losses from the takeover exceed a certain threshold. was says for toys is, is means we bring back stability and security for credit suisse clients that is very important that city. and also we keep the reputation of switzerland as a financial center. hi weiss, cd. and finally, it means that we are stemming the turmoil in the international financial markets. these are the 3 goals that are very, very important to us. since at the right spec, a to z, a z, a z of is to seen phones. credit suisse is balance sheet is around double the size of lehman brothers, which triggered the 2008 financial crisis when it collapsed. the swiss bank is far more embedded in the global financial system with multiple international

subsidiaries. the swiss government says a credit suisse collapse could have triggered a financial crisis. and that's why they stepped in to support its rescue by u. b. s. a move supported by experts in a once a large and highly connected institution, such as this runs into trouble that there is always a risk of contagion. and it may be a good idea for regulators and central bankers to try to get ahead of that problem . swiss financial authorities have the support of their peers. the u. s. federal reserve, the e. c. b, and other major central banks have released statements welcoming the rescue of credit suisse. carson union as chief economists at j software servicing that the private swiss bank carson welcome to the show. we've seen already that markets are having a little indigestion with this deal. when we look at the global banking system will still do more good than harm. so it's always the question for the i kind of just

would have been. so nationalization is probably not bankruptcy, it wouldn't be better. it's in the end probably did the least that solution that we could get to in this situation as surprising as it was for all of us. that question now is what we do with such a big bank with a not too large country and to hold. this is impacting financing conditions for other banks. that is one thing. a lot of shareholders have been, are facing a lot of losses. a lot of bond owners are facing losses. and this, in the end could increase barring costs. all banks, all over the world. i'd like you to listen to equip that we have. this is pasco, donna who, he's had of the euro group. that's the gathering of euro's own finance ministers. we asked him just on friday if europe's banks were fundamentally healthy. and here's what he said. take a listen. yes,

i believe they are in the context of the changes that are taking place at the moment. we can see changes that are taking place elsewhere in the world. are aware of the development with regard to the european bank that has taken place this week . but if i look at where we are overall, i believe director, she changes that we have made since the global financial crisis have had a very significant and positive effect on not banking system. i also look at the amount of capital and liquidity that our banks have at the moment. and again, i believe that is a very strong level of protection against the kind of risks that have developed. so we can never be complacent. but i do believe the measures that we have taken will work, or that was your group, had passcode on who's speaking with my colleague rob watts. they're back to you cause eunice is that true? is our european banks fundamentally in a much better position to handle what we're seeing right now when we look at capital? when we look at some of the leveraging changes that have been made, all that taken together. so i also believe that we are in

a better situation that regulation is much better to the banking, say it in a much better situation. but what we heard in this short clip but was a couple of times i believe, i believe i believe. so there is no absolute sense and that it's a, it's a confidence issue that we, that we have and confidence can't be going to and can be lost and it can't be gone within a very short period of time. that means we have moved it really. yeah. in this, this situation, and i only can say i want to hope and i believe that confidence is coming back and that we don't have contagion that thanks but 100 percent. sure, we can never be in such an issue. carson swiss bankers are supposed to be prudent and rather boring. what does this deal to? we've just seen this kind of urgent situation. what does it mean for your country's reputation as a banking destination board? it's definitely not, not head for,

but we should be aware they always the way ron banks and not so one thing that i think even if you look at the 2 big ones you were making you change last year with not so. so it always depends on the circumstances on each individual company. all right, that's carson union, a chase officer saying that's a private source bank. thank you very much. thank you. and we go now to some of the other global business stories making headlines. german manufacturing prices in february rose the slowest pace since september 2021. i mean nearly 16 percent on the year. that's significantly lower than the record jumps of almost 50 percent last summer. producer prices are a good indicator for the cost of living. russian authorities have ordered all assets of car maker. volkswagen be frozen within the country. russian car maker filed a lawsuit against b. w. after the german group ended its cooperation with them in august. the company

puts the damages of the equivalent of 194000000 euros german arms manufacture. ryan mas hall is now in germany's glued ship stock index, the dax 40. that's after the company share price, more than doubled since russia invaded ukraine in february last year. round mattel's predicting rapid growth in 2023 european countries boost their military spending over the hungry now, which is welcoming chinese plans for a major battery plant on the project. provides a booth for hungry green transition as well so much needed investment for a government that seen some of us you funding held back was not just brussels that's earned by the plants. a major chinese investment in europe right here on this hungarian field. the c 80 l corporation is building a new battery factory for 7300000000 euros engineer eva cosmo, however is not convinced. this is a blessing for her country. it's olive migrant,

the she had farmland hang destroyed, here were afraid of poison in the water and air pollution, sasha. as, as now your night vienna, this is some of the most valuable arable land in the region and the factory isn't bringing decent jobs. as i did as a death or so at last the hotel, there's going to be an assembly line here, staffed by low wage workers, but that's not what people dream of and they're but hungry desperately needs investment. the e u has cut subsidies due to the countries erosion of the rule of law. this financial whole makes high ranking chinese visitors all the more welcome it will play goes. the hunger is at the forefront of renewing the european economy. and that is happening because china, us investing in hungary more and more, you know, you volatile it, you know, you may, i think been, but not everyone agrees at this public hearing. and deborah said many unleashed their anger, trader, trader, people shouted this government official,

me. and on the streets there, protesting against the battery factory. i thought i'm opposed to it because of the huge amount of water uses and because of the foreign workers, they'll bring here listener. discontent towards new battery factories is growing across hungry. if a cosmos senses this, in the support for her citizens initiative, mothers against the battery plants and also allow silly, i get a key and asked parents want education for children. not toxic factory had. many of them voted for president or bond, but they don't understand this battery policy. they fear environmental damage and don't trust chinese companies. a political backlash for the president could be sprouting from these fields. lucy, a shoulder joins me now from our brussels bureau. lucia help us understand. why is this chinese investment so important for the hungarian government?

well, you just heard it also in the report there we just saw. there have been tensions. i want to call it between the european union, hungary, over money. the european union has already lost his side to freeze 6300000000 years of funds and created in france. and they also had said that they would hold back 5800000000 years and grants from the show quality your recovery funds in december. and lately the commission has also announced could hold back more funds from the overall creation funds of 22000000000 years that are foreseen for the period from 2021 to 2027 if certain conditions are not met. so we are speaking about a lot of money year for hungary and hungary has to undergo these reforms that the european union is asking them for. at the same time, hungary is as many other european countries suffering under high inflation. so in disregard,

i think i'm not telling your secret when i say that this 7000000000 euro investment by the chinese, which is the biggest investment by china that has ever been made as foreign minister. she auto said it's very or not made. and hungary is. it's very well come by hungering government real quick. we just heard of that piece . the hungarian foreign minister saying the chinese investment is critical, suggesting that chinese investment is going to be critical for the european economy . is it safe to say the brussels would see that differently? at least as it comes to batteries. well, i can not exactly tell you what process is thinking about this concrete investment right there. what i can tell you though, is that i'm, the european union has seen that it is really important for the europeans to also get their own capacity building and the product production. so they have built

already, a european battery aligns in 2017. all right? that was here, shorten in brussels. thank you. and that's our show. you can check out more about these and other stories online. d, w dot com slash business. we're also on youtube or the deed of news channel. i'm seeing there's a blend for watching. ah ah with

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