of the experience risk whenever possible, in his experience, a level of risk at some point they need a higher level. so these types of trips take a while for someone to build up to but they, they do occur and there's a portion of the population that this is a large motive for where they travel to and it was professor engine petrik of texas and m university. all right, you're up to date for now, but to stay tuned up next is business would look at the impact of raising interest rates on the okay. housing market. that's with mary. so you know, after a short break, i'm here until for lynn. thanks for joining us. the we are all set and we're watching closely. we all seem to bring you the story behind the news. we rolled about unbiased information all 3 months. done

the discovery. change your mind. just a click away. find out best document trees on you to see the world, the subscribe. now to dw talking entry, the another interest rate high by the bank of england has mortgages and runs surging at 5 percent. now, boring costs and u. k. are the highest they've been since the 2008 financial crisis to move health pain on home owners and tenants. also on the program,

the world's biggest air trade show return to paris this week, after 4 year coven breaks, the reviving industry is pushing for d. carbonite things and defense. i'm only 0. welcome to the show to the bank of england and on some thursday, it's raising its 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. you're on your rent increase of started storing in april of last year. and as 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 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 the housing costs. according to research, if you spend holding 30 percent of your income on housing 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 also a contributor to pushing of brands. so all of that is, um is a big risk factor. also home owners with mortgages. all right, risk, we think that repossession smallest we possessions could rise to between 50 and 60000 an 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. 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 no unemployment wage. growth is very robust, it's lagging inflation, 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 advert baby actually step that these wage increases unsustainable. if you translate what that means means wage growth needs to come down. businesses are 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, 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 as he, 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 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, to come down. so what we're going to see, and then the rest of the us certainly it dropped in 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 yes. 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'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 of 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 issue 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 at $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 pandemic orders 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 your old some tests. this told us that will be fine. this green hydrogen fuel powered at croft, 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 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 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, of and with this being the 1st one's beheld in 4 years due to the pump that make sense for us as 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. come back as a highly anticipated and logical in secretive european consulting, trying to create the most advanced mind and unmanned military jets in the world. european countries on giving fight to jets, to ukraine, yet as key ones. the french president emanuel micron opened the ash oh, insisting that still full support. you continually continue intensifying all a military equipment deliveries, training, and help ukraine unami with maintenance as to all our allies and european partners . so we are 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 acrobatic sly. 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 for summer, meaning hordes of sized fears are exploring the world's most exciting places. again, including an athens worth. thousands are overwhelming. the ancient acropolis, the 2500 year old structure, are 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 tourists 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 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, to the point. strong. clear position. international perspective. china has not changed its position, not on ukraine, nor on 5 on and yet, china is trying to win friends. can mutual trust be established again on to the point. we are asking china guns with the dw. i'm tired of coughing. i can't breathe. 34 years of stress in the i was

a metal cutter. i didn't know what has missed of this one. now i know the never ending story of asbestos in 45 minutes on d w. these places in your record step into a little bit venture gets the treasure map for modern globetrotters. discover some of your record breaking site on your back youtube and now also in book form the china has not changed its position neither on ukraine, nor on time on. and yet china is trying to win friends. can mutual trust, be established again. china has so far, refused to criticize the shell for its water, new trade. it remains adamant on the thigh one issue as well. this hon. shakespeare

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