a last year's tragedy is heading to south africa, the next round in the battle for a ticket to germany. ah, best of luck to them that they've from me up next is business. we the rub. what we're taking a look at why demand for luxury goods is rising despite the shaky global economy. that's after a short break. i'm tired. great. thanks so much. ah . guardians of truth, my name is john kinda and i have paid almost every price of being a journalist in a country like turkey taking all the powers that be they risk everything

john don't dar? asks activists, journalists and politicians living in exile too much on my shoulders, but i have to hold this weight because i'm responsible for the future of our country for the people who are behind the bus they leave for their mission. people need to know what is happening there in our series guardians, of truth watch, know on youtube, d. w documentary ah, high value products, high value company search in luxury spending, as, as elvia. h to become yours. first off, trillion dollar firm will ask why people are spending big despite a shaky global economy. the use debt di lemme finance ministers meeting in stock, co been toughing it out. whether the block spending rows should be tightened and

a dangerous dependency, how moldova aims to end its reliance on electricity supplied by russian back to separate is data. we have business on robots in berlin. welcome to the program. for the 1st time, a european company has hit the half a trillion mark luxury group, l v m h reached a market capitalization over $500000000000.00 this week. the owner of brands including louis, if we tell your and tiffany is writing a search in luxury spending for sector is seeing major growth in the us. and among china's middle class, in particular, l v m h has seen it share price, increased 10 fold over the past decade. let's just take a look at your most valuable companies. as you can see, m h tops the tree by some distance in terms of market capitalization, is actually just dipped below 500000000000 dollars since crossing that threshold

earlier in the week. second is danish pharmaceuticals, multi national nova nor disk. and then in 3rd is the world's largest cosmetics company, l'oreal so notably, no tech firms or energy firms in the top 3 in europe. and as i mentioned earlier, maybe has benefited from a booming luxury goods market. have a look at how that's growing over the past decade. it took a big hit during the pandemic as you can see here, but is now surging once again, way past pre pandemic levels where we can now speak to rome, bore, who is global head of consumer and retail research. actually h s b c. thank you very much for joining us on the program. so just tell us what is elvia mates doing, right. they're doing a lot of things, right. i think, i think clearly what we've seen over the past 3 years is an acceleration of market share. gain are great visibility, very high margins. and what's happening now is you're seeing quite a few earnings upgrades coming through. i think fundamentally, we had underestimated the impacts of the reopening in europe,

even more so in the u. s. and now you have chinese consumers coming back and they're moving the needle quite significantly. that is, what is surprising though, is to see that luxury brands are doing so well when we have so much about cost of living crises in various parts of the world and, and various financial strains on people. why is the luxury market, i mean, bounce back and then some, hasn't it since before the pandemic? how's that? how's that happening? well, i think it's a period of time probably as well when consumers need a bit of escape ism and to be fair. the consumers who are purchasing luxury have relatively high financial means and are not completely immune, but obviously more resilient when facing inflationary pressures. and when you've been 2nd home for so long, i think you know, you aspire to trouble, you aspire to, forgetting what we've just all been through. and there's absolutely no need to buy luxury. but again, what she puts

a smile on your face. luxury changes your perspective luxury enables you to move to more positive psychological place, i guess. and of course, a lot of people saved quite a lot of money during the pandemic as well. we can remember that people are savings when you read a lot of pent up demand savings that you can tap into certainly. and then making the most of that, what do you think it says about europe that it's l v m h that is it's most valuable company and not, you know, for example, a tech firm or, or the energy firm like what it would be the case in other parts of the world? well, i just cover discretionary consumer company, so it's difficult for me to comment on the tech or other verticals or other sectors . but what i would like, what i mean is i want to say about how your it's managed to market itself. as a sort of luxury capital of the world. yeah. well, i think, you know, i think it goes to culture. you know,

i think it goes to the comment of down on the ceo of, of image saying review to does not sell hand bags. we so culture and once that's the premise, then there's almost no limit to what you can. so ok. so what we've seen also is a form of di risking, i think the luxury market 25 years ago was, you know, relying on the japanese consumer, pre coping more of the chinese consumer. now it's about global wealth. and again, global culture. and so it's a much more balanced industry that it used to be and it's partly the risk for from that point of view because you're relying on again, global welt, and not one single nationality moving, moving the needle for your, for your business. so does that mean we should expect to see a luxury market expanding even further because of the past 2 decades? you know it's, it's just been growing and growing. we've got a rebound now, but is that something that's going to continue? yeah, i think there is a confounding nature of growth. i think the u. s. market is broadly speaking still

in emerging market for latree. there's a lot of wealth, but you did not have the awareness, the culture, the appetite for those goods. and now you're aware, and you're willing, i think you have a lot of local clients, those who are ignored literally for decades. if you think about the local french, italian spanish consumers. if you think about in asia, the local tie or singapore and consumers, they were left out because you didn't really need them. you know, you needed in italy to speak, japanese, korean, mandarin, russian, and english to, to go that. and then suddenly the world shot. and you started to pay attention to the local consumers in those local markets. and so i think that's the silver lining of prove it. you know, you finally did the work, you finally understood what locals were going after. you are not just relying on the hypothetical. come back of tourists, so yeah i, i, i am bullish for the long term in terms of the compounding nature of growth because

you still have so many people you can recruit within the pyramid of luxury and rumble from hsbc. thanks so much for your insights on this. thanks for having me. now let's take a look at some of the other global business stories that are making the news. germany, my narrowly dodged the recession in the 1st quarter of this year. the latest official data shows that gdp remained flat from january to march. growth figures came in short of the site rebound that was expected. the energy crisis continues to weigh on. europe's biggest economy. a rail work is in germany could soon go on strike again with the trade union threatening to bring the country's rail service to a standstill for weeks. the union is demanding a raise of at least 12 percent for its members. we'll income in germany has been under pressure for 2 years with inflation high than waste growth. me while e u. member states are struggling to reach an agreement on the future of the blocks

debt rules. finance ministers have been meeting in the swedish capital, stockholm some member states allowed that debt levels to surpass the committed levels during the pandemic. now a rift is formed and how strict the rule should be in future. the i m f is among those urging e countries to tighten their belts as the to we is bent. rigate can explain the inflation rate in the european union is way too high. one way to curb it is to lower public spending and public that that's a recommendation by the international monetary fund. and the european union is willing to you of the call. that's why finance ministers in stockholm are deliberating, a reform or that druids in the european union. the frugal states like germany insist that the rules have to be tough and lead countries to lower the depth in the end. but other countries heavily indebted like greece or italy insist on lose the

rules more flexibility. the fierce fight is going on behind closed doors. no, but it shouldn't take too long because markets don't appreciate fighting and instability. the ministers are aiming to come up this a solution until the end of this year bantering, it's reporting from stock home, they're staying in europe. moldova wants to win itself off. energy supplies from moscow in terms of gas consumption. this has already been largely achieved. there, however, almost 80 percent of the country's electricity is still obtained from the russian backed break way region of trans nestea. and since the invasion of ukraine began, that's become an even bigger problem. it's often called the last stronghold of the soviet union. trans mystery is internationally recognized as part of moldova, the region broke away from all dove and government control 3 decades ago,

with the help of the russian army. now moscow backed oligarchs, roo, here, trans mystery as main export is electricity going to the rest of moldova. it's produced in a gas fired power plant. russian state own gas company, gas prom supplies, trans mystery out with natural gas for free. the separatist power plant generates nearly all old overs power and that in turn finances, the regime entrance nestea. they use this money for budget and for a for bench use for salaries. so for radius, for other social expenditures that in yester river flows along much of the dividing line electricity from trans nestea is sold at a high price on this side. the power bill for surrogate literacy brewery is around $3000.00 euros per month. that ends up in the pockets of the moscow back separatists with russia waging war against neighboring ukraine. he says,

this can't go on basically, or because of the conflict, of course we are in a way worry about the situation. ah, to be honest, as a business person, for me, it's important to get a cheaper electricity. this is what is important for me because i need to get to have my business going. mold overseas ending this dependency as a high priority. it wants to stop the money transfers to trans mistrial. without these gas for free their economy, their budget to their social are safe to not nothing can actually be upkeep. upkept sir. gay literally is happy that the electricity is flowing even though the price has almost tripled in a year. soon he should be able to get his power from romania. new lines are planned to connect the 2 countries, electric grids, financed by western development banks. among others. then trans nestea will lose

a t source of income and become even more isolated. i'm just finally here on d to we have business. if i asked you to picture a robot security guard, i god, even reckon you perhaps conjure an image, something like a terminator or, or robo cop. but the reality it turns out is rather different. this little fellow is a center and has been put to work by a swiss security company uses cloud based artificial intelligence to navigate tough to rein, including snow, a center, already protecting sites, including the company's railway depot. it's designed to patrol the area, produce daily security reports, and also supports the company's human guard team. i think he's quite cute muscle for me in the business,

him hand berlin from all over to our website data we have comp flashback to the point strong opinions, clear positions, international perspectives, give me a call. things approval rating continues to rise in russia. meanwhile, the last remaining voices of the opposition are being silent. on to the point we are russia under both. why is the opposition disappearing? to point next dw, this is the most expensive place to live in the world. hello, read the jaffa, this a dream for any real estate agent. thought behind the gold facade issues like racism and didn't justice ever present the roof list. gentrification of the

one city is extremely political. 45 minute e w. ah, what secrets lie behind these walls? discover new adventures in 360 degrees. and explore fascinating world heritage site. d. w. world heritage. 360. get the app now valuable. dean's approval rating continues to rise in russia ever since the invasion of ukraine last year. meanwhile, the last remaining weiss's of the opposition are being silenced. houses have been arrested on charges of treason and despite all possible western sanctions, the russian economy is still driving it.