it shall return to paris this week. after for your coven breaks, the reviving industry is pushing for de carbonized wings and defense. i'm of the vina. welcome to the show. the bank of england, and on some thursday, it's raising its interest rate to 5 percent. it's higher 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. you're on 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 forcing some people to reconsider living in a house at all are in i, dylan coast, a 2 hour drive from london. margate is the perfect place for lin pearman to enjoy the next chapter in her lives. 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 out 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 that 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 with a 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 the with you know, you come back is 6 months time when i'm freezing. it may already be a residential winter jokes when the comb here is to set tips the issue as 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 and 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 rent and market has been restrained for some time. now there's 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 2 largest cities on the supply side. on the other hand, um, you know,

that has not been in the in house, 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. all right, risk we think that repossession smallest repositions 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 spike, 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. it's still quite robust. so that suggests that there were still, you know, keeping up 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 weights, growth is very robust, is lagging installation, but we do forecast that in the 2nd half of the year, we were trying to re wage growth. so wage growth out scripting installation. and just today, the, i'm the governor of the bank thing that adverb baby actually step that these weights increases unsustainable. if you translate what that means means wage growth needs to come down. businesses, our employees are not going to do that long term release. so this will be slow down the economy of aggregate the month. this will include business failures and an increase in 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 in 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, 5 weeks ago, i would have thought that we were kind of at the limit of interest rates already. but the market 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 we did forecast and that inflation will take longer to you to come down. so what we're going to see in the rest of the year is certainly a dropped and headline rate inflation. so energy prices are coming down and that's feeding through, especially in the july and october periods. when we have the energy price go up here and you pay, which is we adjusted so there will be a slow down in inflation. and we do also think that this aggressive moved by the bank of the 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 $200.00 to tell you that's kinda north fed. 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've able to withstand drought and fungus resistance tomatoes. and you official 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 us, the canadian government has to bill requiring social networks to pay newspapers for linking their content. shares and humans energy plunged by 35 percent after the company announced its experiencing technical problems edits, 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, was 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 when parents, after for your break due to the corona pen, demik order is at the show reached 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 power is that so one small hydrogen powered starts up is taking a big claim to year old. some decimals 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 would prove 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 at 40 kilometers altitude 4 times higher than the plains. and the goal is to transform that prototype technology to one day carry passengers. but it's not an innovation being displayed here, written the boys a show. the process, so has long been known as one of the most defense focused events that is need to have in your, at and with this being the 1st one's beheld 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 5 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 of highly anticipated and new logic in secretive european consulting and trying to create the most advanced demand 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 ukraine unami with maintenance as to all our allies and european pop. nice . so we all by the side, always on the same line and totally support somebody else with the billions of dollars worth as deals assigned here in the back rooms of the power as ash oh, the arrow acrobatics, fly of a 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 5 years are exploring the world's most exciting places. again, including an 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 sanctuary. 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 us desperately trying to battle in place. and the 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 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 the,

the chasing noise. set a go style. tough sleep and repeat me the country, female pro, sofa the phone. so that was the only girl who continued to this thing up to today. and later i started training. i was go step by step se stoked the w. hello guys. this is the 77 percent of the platform for offices you see issues share . i do, you know, on this time i'm not afraid to pass and then he did talk to the young people

clearly have the solution, the future of the 77 percent, every weekend on dw guardians of truth. my name's jumped into and i have paid almost every price of being enjoying this in a country like to tease taking on the powers that be they risk every thing they want to me and they try many times. john, do dar, s activist journalists and politicians living and anxiety. what drives them too much on my shoulders, but i have to hold this way because i'm responsible for the future. all countries for the people behind the bus, the courageous effort against corruption, the ends political crimes.

in our series, guardians of truth watching on youtube dw documentary, the state of beginners, live from berlin. a tragedy in the north atlantic, all 5 people on board the titan submersible. the vessel suffered a catastrophic implosion near the historic, titanic, rec. we'll talk to a survivor of an accident as a separate site for his unique view on this incident. also on the program. the large.