look around, business news as of next year and tilting for me and the rest of the news team. thanks for joining us. the this award winning offered future available world wide. german has never been simpler. germans who go in many countries, education is still

a privilege. property is one of the main causes some young children work in mind. draft instead of going to class others can attend classes after they finish the millions of children, of the world of chance go to school we ask why? because education makes the world a more just make up your own mind, dw, made for mines. the is turkey. finally, putting the brakes on its own orthodox interest rate policy. the central bank there raises rates for the 1st time and more than 2 years, a period in which inflation has rocked its currency inmate everyday life on affordable for many turks. also when our shows us rolls out,

the red carpet for indian prime minister no range remoting, but will definitely be the business partners of many see egos and vision. obviously, there's an invalid. welcome to our program. for the 1st time in almost 2 and a half years, turkey central bank has raised interest rates to 15 percent from just under 9. it's a shift away from the an orthodox policies or president reza type air. the one who has champion low rates. despite the turkish lawyers rapids about the valuation, the country's currency was have had serious consequences for normal turks. as their correspondent, julia han reports. there's almost nothing you can find here in the immuno. the neighborhood is one of the symbols, the oldest and the busiest mock is area. and it's seen as a bell with us for the talk. is she calling to me? right now, it seems. need a sharp, luminous new customers, happy to smaller sales have dropped by 50 percent. the price increases every day

and the exchange rate fluctuates. this is giving us a hard time custom us. we used to buy a kilo only know buying house, aquino, or even less because it a good one. what do you face to activate? my expectation is that the economy will improve, that inflation will disappear, but i don't think it will bother cuz i just hope it won't get even worse to accept that we have been struggling with this crisis for a long time and we've been very patient. it's time for things to get better since president ridge of telling you about 11, re election in may, the value of the talk is really robust, tumbled to lose. and inflation is officially me a 40 percent, leaving many unable to afford ease in basic food stuff. analysts say president ad ones and also talks economy policies have made things worse. especially his insistence on low interest rates when inflation is running high. now he's appointed

a new economic team to overcome the crisis have fees ago. yeah, our con, a former will street executive is turkeys, new central bank of an a new finance minister may have met him check. an internationally renowned economist has pledged to return to rational policies, use it to find information to be sent to the experts like ols on chicago. however, remain cautious. even if the new team were to convince outline of a policy shift, he says, turkeys economy wouldn't just switch, play, recover, lost bin goes to camps. the problem is that all right, cool. and i'm, it has been through radio so much in the last few years that are no easy or quick fix this 3. it will take many years to fix and whatever you do, it will be very painful. if you have to increase interest rates to lower inflation, we will be faced with a huge risk of very high unemployment survey. there's the public and the presidents

will actually have the patients to see through this thrust formation. yet, it remains yet to be see here at the mall could in any news, no one wants to hear about more economic pains. people want prices to go down and the economy to heal. so things might get more difficult before they can get better . and then use now confirming that monetary policy shift to countess sky high inflation here into a key that has left so many people struggling to get by the key interest rate was heights to 15 percent. maybe not to the degree. some analysts had expected, but it seems more increases all on the horizon, and that is why many economists here in the country see this as a 1st step in the right direction. finally, signaling

a return towards more conventional conventional economic policies. timothy ash is an economist at blue bay asset management in london, and he's an associate phil a chatham house. 10, thanks for joining us. rates looked at the 15 percent. i think you were expecting a lot more words you out. how do you look at this? what, what's happened? well, he places 40 percent, so 50 percent policy rights means negative 25 percent real rates hops. the coupling flows with, with such large negative real rates taking how's the balance of payments? problem, lots content that's it needs to close the how does it close it? you know, if it's not in a high rates, it's got to let the count see a just an attrition check is just that's the finance ministers just come out just now saying that he thinks the ethics regime will attract effects in flows or capital inflows. i should say, up suggests they're going to let the exchange rate valves of interest rates do the heavy lifting, incentive, closing the trade and current account deficit?

do you consider this a turnaround for turkey's monetary policy in any degree or is this sort of a slow difference of the water as well? i mean it onto this and the route to elections, they manage the exchange rate, they tried to keep it as a no been line. okay. um, at least in a couple of months or 6 months as a leading up selection price have up to have lots of devaluation because of ad one's crazy interest rate policies. i think we get now going to see a bit of both. right. we're going to see the currency allowed to adjust, and we're going to see some rate hikes to kind of bodies, the inflation effects of, of thoughts. so we could cover this in the past through to inflation from an exchange rate week. this combination of both market probably wants much more pre from loading of, of rate hikes. remember, here is the memory, the public stream checking the new governor a come have is the market. remember as a previous off at ups governor now she asked belle who high rates and was removed kind of 6 months into, into the jump so that i know of us about the novice, the basically, you know, ship checking that can, may, will also dr. policy. an organization rates, but actually they won't be the jump very long. so that's the real difficulty. if

you're a normal tourist, what does this decision mean for you and these, these several decisions we've seen so far? well, credit is going to be still hard to get. so i think with, with such negative rates, the count see it will, will adjust weak shots and probably means inflation, which is from a high base come as come down a bit. remember it is 80 percent 6 months or so down the line. it's come down to around 40. i think the problem really is probably stick around this level, maybe go bits higher until we see some re balancing on the current account helping . i'm because the exchange rate and then maybe we'll see some better news on the inflation from the probably like 6 to 12 months down the line. but also way i wanna make sure that understanding you do not really see this as a complete turnaround by add one, he's also with one calling the shots. as you mentioned, the markets have a memory of what's happening to previous governors. is this much of a, is this sort of a trial balloon and it could always be into way as well. we'll have to see if this is different. as i mentioned the previous experience with with no shag bell, he went to ulta doxey height, right?

single fired 6 on the thing to the jump. the guy i tend to think that is a different crew would advise, is around ad one and they pushing them all off adults agenda and drove the appointments or shoot. check on a subject is fine. as mr. and kinda as governor, and perhaps, you know, i'm hopeful that we'll see this, this move back to some kind of all of that oxy sustaining longer than last time. so, you know, i'm a bit more hopeful, but, you know, unfortunately, track record of ad one is it in is intervening and monetary policy. that's the consent. timothy ash, with blue bay asset management in london. thank you. my pleasure. was that interview recorded earlier in the day? let's move on out of some of the other little business tories making headlines. the bank of england has raised it's key interest rate from 4 and a half to 5 percent in an effort to battle. the countries stubbornly high inflation is the 13th consecutive rate hike, bringing borrowing cost to a new 15 year high inflation, u. k. so the 8.7 percent in may,

which is among the highest levels of g 7 nations. german exports to countries outside the european union increased by one percent in may fall in 2 months of declines. your largest economy exporting goods worth more than $59000000000.00. the most important export markets where the us in china will trade with russia continued to decline sharply. panama worst route on record threatens to stream global water supplies as water levels in the panama canal, or at their lowest level of tories, impose travel restrictions to prevent larger container ships running a ground meeting. many of them will have to carry less cargo indian prime minister and arrange remote. he is in washington for state visit, where he's been inking new industry and defense deals, including one for g, e to build jet engines for the indian military. also on the agenda is a major deal for semi conductor chips and a joint mission with nasa scheduled for next year. the us as i n d as an economic and political counter way to china,

bodies and do nationalism remains of concern. however, for many us pop politicians, muddy was once banned from entering the u. s. on allegations he supported religious band rights. while he was head of the state, of course, you're right. and we go to actually talk to pandey for more on this actually, tosh. this is maurice, the 1st state visit to the us. he's meeting with c o is he's addressing congress. how important is india right now for the us, not just politically, but also economically is extremely important. stephen. and, and that's because the india has a much as a key or tentative to china. but as companies look to diversify the from china as part of the china plus ex strategy, it for them, india is a political or stable country. it's offering believes and incentives who come on making india also the fastest growing major economies. so there's a lot for them to be really excited about as far as india is concerned just this week, i long must said, but that's what i was looking to invest a, make a significant investment in india as soon as possible. just today be heard the

agenda, electric has agreed to join to the manufacture of fi to jet engines in india and all the despite the despite bodies around democratic backsliding in india and to move these watch the challenges and firms investing in india as opposed to say, in china were often said to be infrastructure, lack of educated workers, too much bureaucracy even. but to what extent are those still the challenges that are facing for an investment? but that's an interesting question, steven. so if we look at the investments that have come or that have been announced in recent times, they've been mostly restricted to the computer and electronic sector. so the likes of apple, folks go on to the high tech industry and this is not the main job creator in india and other industrial manufacturing. it seems like next tied food in both food and beverages. these companies haven't really been getting as much attention and that's because of the many of the reasons that you've just mentioned,

a lack of interest structure, lack of skin, do a workforce and, and also the fact that there is high titus in india and, and that's the reason why they haven't really seen that was of interest. having said that, the more the government is investing big time into uh, an infrastructure building, the roads, an apple, it's a bit as a court pace that could be taken care of. the problem is creating skill level for us because the problem is at primary education level and that needs to be type and as quickly as possible. all right, i should contact. thank you. bye. this is a reminder for top business stories. 30 central bank is high interest rates significantly to 15 percent in an effort to rain in the countries sky. high inflation to move represents a policy shift for turkish president as of type air to one who has long resisted higher rates against the judgment. economists as our show for more find as online the w dot com slash business. we're also on youtube part of the

data, the news channel. so you can really blend the into the conflict with tim sebastian america, the secretary of state down to lincoln was finally in badging in the long delay. that's, that's a whole slide in us china relations. the main sticking point is scro, taiwan. i guess the time when he was 5 minutes, joseph the island, living on the conflict on d. w. to the point clear positions, international perspective. china has not changed its position known ukraine on 5 on and yet china is trying to win friends. can mutual trust be established

again? one to the point we all china guns, a west dw, we've got some hot tips for your bucket list. magic corner check hot spot and some great culture memorials to w travel off we go. the american secretary of state, down to the lincoln was finally engaging in a long delay. the effort to hold the slide in us china relations. the main speaking point is still tie one with the chinese determined to re unit 5 and warning the west to stay out of the cool interests. my guess in taipei is the time when you.