ground, so if we're going to continue with this tourism, i really urge people to take those 2 things into consideration. the sheer danger of it. this is not a joy ride, there's not a disney land destination. and the sacredness of this site. we shouldn't trespass as likely assigned to some journalist michael. again, thank you so much for your view and for sharing your story with us. thank and call us the news, but stay tuned for our business board and see you at the top of the next hour by the people in trucks insured when trying to free the city center more and more refugees are being turned away. families these correct only pieces. extreme

getting 200 people more than 300000000 people are seeking us because no one should have to make up your own mind. double you made for mines and the another interest rate high by the bank of england has mortgages and runs surging at 5 percent. now boring costs are new, kids are the highest phase, been since the 2008 financial crisis to move house pain on homeowners and tenants. also on the program, the world's biggest error trade show return to paris this week. after 4 year coven

break, surviving industry is pushing for d. carbonite, things and defense. i'm only xena. welcome to the show. the bank of england, and on some thursday, it's raising his interest rate to 5 percent. it's highest since 2008. that's due to stubbornly high inflation in the u. k. it's news that has many home owners worried almost a 1000000 households will see the price of their mortgages go off by on average over $4000.00 bureaus a year. that's on top of previous price increases. one british consumer advocate as warning of mortgage prisoners thing people are, are locked into on affordable housing payments with some mortgage res. hitting 9 percent, and renters are also feeling the rate hikes. that's because many landlords are passing costs onto tenants, your own, your rent increase of started storing in april of last year. and yes, you can see here they have kept climbing ever since getting 5 percent in the u. k.

in may. and remember, those rate rises are happening while the price of food and energy have also spiraled up. or it's, it's forcing some people to reconsider living in a house at all. in i dillard coast, a 2 hour drive from london. margate is the perfect place for lin pearman to enjoy the next chapter in her life. when this pensioner was kicked out of her apartment, she sold all of her valuables. that's how she was able to pay for her new home on wheels, which she's christened the free spirit of going up into those. i couldn't say oh, would get you couldn't even get a room for the money to i was allowed. and to take the rest of my pension would mean i would just not be surviving, especially with the cost of living going up with the electric, the gas, and with the bills of rent increase from the equivalent of 500 euro to 8. 20 was lens and doing. she used to be a fitness trainer and cared for her mother with dementia. her pension now covers her gas and about 12 years per day for food. she typically showers at friends,

houses, lind shares or experiences on tick tock, where she has 40000 followers. many of them are facing the same fate, especially those young people dealing with the housing shortage people in london is spending on average move and 60 percent of that income on the housing costs. according to research, if you spend holding 30 percent of your income on housing that causes mental health problems. so there is no doubt that we are in a terrible situation. many experts points to lack of social housing construction over the last 30 years on top of a deep belief in the free market. as a result of homes and british cities have become targets for speculation. lynn is happy, she still has her camper, but for young people, even those the good job in education housing is often a nightmare. i always say a positive and negative and i think, you know, the way i feel right now,

i don't know what you know. you come back, you 6 months time when i'm freezing. it may already be a residential winter jokes when the comb here is deceptive. the issue is politically explosive and could heat up as the conservative party faces elections expected next year. joining me now to talk about the cost of living crisis in the u . k. as kyle norry says, he's head of forecasting at the center for economics and business research in london. tie, as we saw on the report, there's a real risk that poverty and homelessness will for and the u. k. how bad will it get? yeah, there is definitely a risk because um, the rental market has been restrained for some time. now, there is multiple reasons for that, of course, on the demand side of to depend demik. a lot of people came back into the cities. and students, especially also came back to, to dodge of cities on the supply side. on the other hand, um, you know,

that has not been in enough in house building going on for quite some time. and now you also have to increase in mortgage rates, which is uh, also uh, contributed to pushing a brand. so all of that is, um is a big risk factor. also home owners with mortgages are at risk. we think that repossession smallest we possessions could rise to between 50 and 60000 m over the next 3 years. so the housing market is definitely the focus fund at the moment. so really multiple factor as having the u. k. housing market here. now inflation stats are showing that the spice, the cost of living crisis. brits are still spending even on restaurants and concerts, for example. does that mean the bank of england will need to crack down even further to cool the economy as well? the thing, the certainly the assessment that the bank of england is taking at the moment. um, you're right, you know, consumer confidence measures are still relatively high spending and still quite robust. so that suggests that there were still, you know,

keeping out there with either, you know, savings from the pandemic or, and let's not forget that the labor market is still quite tight. we have still quite low unemployment wage growth is very robust. it's lagging and facing, but we do forecast that in the 2nd half of the year, we were trying to re wage growth. so wage growth out stripping and station. and just today the, i'm the governor of the bank thing that advert baby actually set that these wage increases unsustainable. if you translate what that means, you means wage growth needs to come down. businesses, all employees are not going to do that long term or the so this will be slow down the economy of aggregate the month. this would include business failures and, and increasing unemployment in order to get which broke down and that way. yeah. kind of a forecast or could you then tell us as this as bad as it gets or is the worst you have to come or yeah, i think i'm the past years has um, you know, taught us the less than being a little bit cautious. i think we, you know, if you had asked me that question 6 weeks ago, like weeks ago,

i would have thought that we were kind of at the limit of interest rates already. but the market, the reaction has been so severe to the more sticky inflation that um you know, it also, i think it took a lot of people by surprise even ourselves. and then what we did forecast in that in session. what takes longer to you to come down. so what we're going to see, and then the rest of the us certainly get dropped and headline rate inflation. so energy prices are coming down and that's feeding through, especially in the july in october periods when we have the energy prices up here. um and the you k, which is we adjusted so there will be a slow down in inflation. and we do also think that this aggressive moves by the bank of in a bank of england will have an impact on the economy. so we will see the later market. so happening a little bit. um, but you know, if we're at the end of the crisis, i think that's too early to tell you. i know, i said thank you so much for talking to us today. thanks for having me now to some

of the other global business stories making news. european union plans to lift controls on controversial genetically modified crops. the proposal is to help farmers cope with climate change. it gives the green light to modified plans such as we able to withstand drought and fungus resistance tomatoes. and you officials see the move will also support fluid security, social media, joint meadows, blocking access to news articles for all facebook and instagram users in canada. the move comes of the canadian government has to build requiring social networks to pay newspapers for linking their content. shares and siemens energy plunged by 35 percent after the company announced its experiencing technical problems and it's a wind turbines. the company it had issued to review after many of its turbine components started failing, the wind energy business could be impacted for years. at a cost of billions of year owes zambia struck

a deal to restructure it's $6300000000.00 of that it goes to other governments, including china, the debt will be rescheduled over more than 20 years with a 3 year grace period. the unprecedented deal is seen as a breakthrough for heavily indebted nations. the aviation industry is taking off again this week, so the return of the world's biggest air. so one pair of after 4 year breaks due to the corona pandemic orders at the show region near record levels. but the industry isn't just revising itself. it's also reinventing the w, as jack parents sent us this report out the powers that show one's moving hydrogen powered starts off his taking a big claim to your old some destiny. this told us that will be fine. this green hydrogen fuel powered across at supersonic speeds with the months the 1st in the world to do so, they say. and to may just that with brute industrial appeal, the hydrogen infrastructure and the hydrogen tags,

refueling stations handling storage. this is something that we're looking into spinning off to, to other mobility sectors, as well as the energy sector. and then we are investigating the defense sector as well because hypersonic is quite interesting. this type of technology is quite interesting to defense as well. they fly a 40 kilometers altitude 4 times higher than normal planes. and the goal is to transform that prototype technology to one day carry passengers. but it's not only innovation being displayed here, written the boys a showed the process. so has long been known as one of the most defense focused events that is needed to have in your, at and with this being the 1st one's be held in 4 years due to the pump that make sense rushes invasion of ukraine, much of a tool k is about how your it's stepping up. it's aerospace, defense technology, international delegations escaping a french company were follies planned to build an f f. i fight suggest to compete with the american made f 30 fives, which are currently the most favorites for fall

a is also involved in the future combat system. a highly anticipated and logical in secretive european consulting trying to create the most advanced mind and unmanned military jets in the world. you are paying countries on giving sight to jets, to ukraine yet as keith ones, the french president emanuel micron opened the ash oh, insisting that still full support. you continually continue intensifying on military equipment deliveries, training, and help ukrainian army with maintenance as to, although allies and european popping us. so we are by the side always on the same line and totally support somebody else with the billions of dollars worth of deals assigned here in the back rooms of the power as ash oh, the arrow acrobatics. flyovers big business to 1st there was no tourism. now there's too much for europe and tourism sector is on track for

a full rebound. the summer, meaning hordes of sized fears are exploring the world's most exciting places. again, including in athens, worth, thousands are overwhelming. the ancient acropolis, the 2500 year old structure, seen an uptick of 70 percent over last year. as visitor numbers. the site now resorted to a new system of time slots to cope with an influx. there's also lots of waiting before towards can climb the famous stairs to enter the century dedicated to the ancient greek goddess athena. and a reminder of the top business story were following for you with the latest interest rate hikes, the bank of england just desperately trying to battle inflation with record. high bar and costs are traveling homeowners and tenants who are ready, struggle with higher costs of living. that's our show for more check out dw com slash business, and then dw and using youtube channel. we're also on facebook for me and the

business team here in berlin. thank you so much for watching. take care. the eco india sustainable motor you researchers are finding innovative solutions for the future. their goal protecting our water resources successfully on dw the the, the, the, it is some of the current key,

more people than in such a passion life crisis within pod form that's on the left side of the nation, press the one to find out they leased during info, migraines, reliable news for migrant. wherever they may be. the seller, well it isn't in the i have little water to drink and women have to walk for miles in the scorching heat to fetch drinking water. then there are areas with i'm for water.