sarah: this is the be news from berlin. need a global financial markets. the u.s. are reserved boss, janet yellen, marks the end of what she called an extraordinary time citing steady economic growth, raising interest rates for the first time in nearly a decade. pakistan marks one year since taliban militants stormed a school and killed around 150 people. most of them children. many still grapple with the trauma. and strength in unity --

chancellor -- chancellor angela merkel says germany must take the lead in europe's migration crisis. she says the country has a special responsibility to protect the achievements of european integration. good evening and welcome to the program. tonight, u.s. monetary policy has entered a new phase. where the first time in nearly a decade, rates are now on the rise. the hike of 25 basis points was expected but the fallout is anything but certain. so here is where things stand. the benchmark lending rate is eing increased from a quarter to a half of a percent. but do not expect anything earth shattering in the next few months. the fed says any further increases are going to be slow as it monitors the u.s. economy and the impact on jobs.

we are joined now by our senior business editor and our wall street correspondent who joins us from new york. this is a relatively small hike. guest: it is definitely small, but it is a big deal. janet yellen has said it is important we do not over blow the significance of this rate hike. it is a huge thing for the media, it is the first time in a decade we have seen a hike, so it is something interesting to report on but traders and economists are saying welcome this, do not fear it. sarah: the timing is interesting. what do you think about the timing? the big question was when was the fed going to start to unwind all of this quantitative easing? why now? guest: we were ready in september 2 hike rates, but in august, we hit all of this

turmoil, especially in the chinese market and that is the reason we have not seen an increase in interest rates even sooner. janet yellen at the press conference made the point cap the reason we had zero interest rates was because we saw the biggest recession after the great depression, so, there was reason to take extreme measures, but now the economy has increased quite a bit and the situation is not that rim comes at the time seems to be right. guest: we were expecting this rise, so what is next? is it going to be a slow trajectory? is it going to be incremental moves up to a total of 1% in the next two years? guest: that is what janet yellen said clearly -- the federal reserve sees interest rates by

the end of next year at 1.5% at the end of 2017 at 2.5%, so we probably see those gradual moves. the next fed meeting is in january and then after we have the next meeting in march, that could be the time for a second move but the word of the hour is gradual, so that is what we are going to see and it depends how the economy develops and how inflation moves on from this point. guest: does that mean there are no dangers out there? guest: you never know. this is a test and a 25 basis point increase is definitely nothing outrageous, but, when it comes to the markets, what counts most is psychology and expectation. i would not interpret too much

in the reaction we are seeing today. the dow jones industrial average is up by a good 1%, but usually -- and i have seen that 70 times in the last couple of years, weight a day, let the traders sleep over what we hear today and we might see the real reaction on the markets tomorrow. sarah: speaking of the real reaction, is there not a danger for the emerging markets? they were one of the big winners when the fed started to reduce rates. is that money going to come back to the united states and what does it mean for countries like brazil and china? guest: yes. those countries had enough time to be prepared. it should not be any big surprise what is happening today, but yes, they are theoretically too dangerous for emerging markets. now that the dollar might move higher, some of the money that

flew into emerging markets might be flowing back to the united states. there is also a second threat because a lot of countries are holding their dead in u.s. dollars. if that should increase, that will pump up the debt load of those countries. then again, we expected this move and it is not a given the dollar will move higher from here on. it depends on some psychology, but those are two threats for emerging markets. sarah: thank you very much. we are going to turn to washington now where richard walker is standing by with the view from the nation's decision-making capital. is the u.s. economy ready for this? guest: i think the point is does the u.s. economy still warrant

emergency measures? if you look at the topline data, if you look at unemployment, it has fallen down to 5%, the lowest level in a long time. gdp has been increasing pretty steadily over the last several years. it doesn't look like the kind of economy that needs emergency treatment. there were just a couple of domestic issues giving some pause. quite a lot of people have dropped out of the labor market altogether. quite a lot of people just have not bothered to move back into the labor market that that's not seen as enough of a reason to keep these ultralow rates. on the other hand, that inflation is below the 2% target

the federal reserve has come in the fed is saying the reason why inflation is so low is transitory. it's partly the big drop in the oil prices and a big rise in the value of the dollar. there is an interesting implication and they are picking up on something we just heard. the implication is the fed does not expect this move to have a radical upwards effect on the value of the dollar. sarah: that is the view from washington. thank you. we turned to some other news now. it was one of the worst terrorist attacks in the history of pakistan. in december of last year, taliban militants stormed a school in a northern city, killing around 150 people, the vast majority were children. today marks this somber anniversary with a remembrance ceremony held in the school where the attack took place. reporter: families of the

victims and survivors of the massacre of the massacre arriving at the official commemoration. for many, the scars are not just difficult. hundreds of lives have been shattered and families destroyed . they also gave an offer of prayers. for the prime minister, it was a chance to reflect on the consequences of the tragedy. he promised to stamp out extremism in the country. >> god willing, the day when terrorism is completely eliminated is not far away. each and every part of pakistan will become a peaceful place. those who are trying to extinguish the candle of knowledge and spread darkness

will be white out. but, for many of these aggrieved, the steps taken by the government to end militant violence are not enough. they want to know how the attack could have happened in the first place. how were taliban gluttons able to storm the school and opened fire indiscriminately on their children? the attackers were either killed at the scene or blew themselves up. another four people were executed two weeks ago for their involvement in the massacre. despite today's ceremony, some parents are asking why no member of the government has been called to account over the failure of the country's security apparatus. sarah: chancellor angela merkel has insisted the country must take the lead in managing europe's migration crisis. she said germany has a special

responsibility to protect the eu's core principle of european integration. she was speaking in the german parliament ahead of a european summit that will debate a new strategy for managing migration. reporter: people fleeing across the mediterranean to greece. if it were up to angela merkel, images like these would soon be a thing of the past, as with these, showing people on route to the balkans. uncontrolled entry into the european union would be curbed. chancellor merkel: it begins with us that decisions already made the properly implement it. this applies especially to the hotspots of italy and greece so the eu's external borders can return to orderly conditions. reporter: apart from that, the european border agency would have to begin in more authority against the will of individual states if need be. she also promised not to ease up on getting the european union to

distribute refugees more fairly. chancellor merkel: i know this is a monumental task and will not be finished by tomorrow. but patience and tenacity have always paid off at the end of a long journey. reporter: the opposition complained hotspots and distribution quotas are the wrong means to solve the crisis. >> ladies engine one, user influence so refugee policy does not turn into a policy of isolation and marginalization, but rather of human rights. reporter: at the moment, it looks as though you europe is starting to close off its external borders. sarah: it was one of the most bloody crime sprees and german post war history. with murders, bomb -- bombings and made reprehensible by the neo-nazi ideology that's bond all of it. the ringleaders of the nsu group

died in an apparent murder suicide in 2011. now, and a legend a comp was has finally broken his silence. he took the stand today and staunchly proclaimed his innocence. reporter: a decisive moment in a case that has gripped germany. one of the expected accomplices to the nsu terror group spoke out for the first time in two and a half years. in his statement at the munich higher regency court -- regional court, he denied supplying the guns prosecutors say was used to kill nine of the victims. a denial they say is completely them plausible. >> the main point comedy central accusation is that he organized the murder weapon. he is accused of being an excess three to murder and this is the story he comes up with today? simply unbelievable. reporter: he claimed to have

been unaware of the murders carried out by the group, is pressing sympathy for the victims families. his comments come one week after the main defendant spoke out for the first time. she too denied any direct involvement in the murders. the trial continues. sarah: let's get a quick check of the other headlines around the world. negotiators looking to end the conflict in yemen have agreed on a date -- on a prisoner swap. wearing parties said some 600 captives would be exchanged following tribal mediation. a weeklong cease-fire appears to be mostly holding. north korea's supreme court has sentenced a canadian pastor to life imprisonment for what it calls crimes against the state. the toronto native has been in detention since february. canada says it is dismayed at what it called an unduly harsh sentence. we have to take a short break. when we come back and we will have all of more news.

including behind bars but not forgotten -- the wife of a jailed saudi blogger receives an award from the european parliament's pop freedom of stay with us. >> you would like to study in germany and you still have lots of questions. find all you need to know about studying in germany here -- information on courses, admission requirements, qualifications, costs and so much more. dw.com study in germany -- the first port of call for anyone interested in studying in germany.

sarah: welcome back. a quick reminder of our top story at this hour -- the u.s. federal reserve has raised its benchmark interest rate a quarter of a percent, the first increase in nine years. the effect was a media -- the dollar gained ground but the stock markets rained stable. fed chief janet yellen indicates further rate hikes are ahead. german chancellor angela merkel says germany has a special responsibility to protect the achievements of european integration.

she has been talking about migration and head of hers day's european summit. as you watch our next report, imagine a young man in the prime of his life languishing in a prison cell, his health failing and his dismal routine and she agonizing beatings. his crime involves a bold act of courage -- during to speak out for religious tolerance and freedom of speech in the oil-rich and archconservative kingdom of saudi arabia. incarcerated for that courage, he has been awarded a prize for freedom of thought. >> as she accepted the prize on behalf of her husband, she told the european parliament that freedom, like air, is essential to human existence. >> he is a man of these. he did not want to be part of the heard that blindly follows religious scholars that do not live in the present.

reporter: in 2012, a saudi court sentenced him to 20 years in prison and a thousand lashes for supposedly insulting islam. he has already served three years and received 50 of the 1000 lashes and down to him. despite intense international pressure for his sentence to be commuted, it was upheld by the supreme court in riyadh this year and he remains in jail. but she refuses to give up hope. she has devoted her life to securing her husband's freedom. sarah: let's switch gears and had two business days. observers are looking at a massive media deal in asia with caution. >> from delivering parcel to delivering the news, the owner of alibaba has just added another media organization to his business empire. similar to amazon's verjus of the "washington post" years ago,

he bought the leading hong kong newspaper for $266 million. or are concerned about the impartiality of this major news source. >> he is looking for new ways to spread his influence. already one of the world's richest men, jack motte is taking a strong interest in print media. -- jack ma is taking a strong interest in print media. he has added the south china morning post to his morning basket, causing concerns about its independence. >> alibaba and jack ma are close to the leadership in china. and alibaba is a major beneficiary of the chinese system. there's no reason to believe he would allow writers and reporters to come up with articles which are highly

critical of china. reporter: so far, the hong kong paper has focused on controversial issues that otherwise do not make it into china's public sphere. while journalists complain about a general decline in press freedom, alibaba insists though world -- and the news will remain impartial. >> about a million migrants are expected to arrive in germany to share. there is a heated debate about how to get them jobs. only a small percentage have qualifications and then there is the language barrier. a four-month-old project could have a solution. reporter: he's already wearing the berlin hotel uniform even know he has just begun his internship. he comes twice a week to learn the hotel business from top to bottom and prepare for his formal training as a hotel industry specialist.

he has no doubts about his dream job. someday, he would like to work in a big international hotel. >> it's what i've always wanted to do -- i've wanted to work with people in use in many languages i have learned, and it is fun. reporter: the hotel jumped at the chance to take on refugees are the project. tourism is booming and hotels are desperately looking for young people who can do job. >> i like his personal charm. he's outgoing and has extensive language skills. our guests come from all over the world and speak extensive languages. that is something you can easily deal with. reporter: three years ago, mohammed fled bangladesh at the agent routine. he has had no trouble adapting to life in berlin and takes his german classes seriously.

his formal training program begins in february and he'll have to keep up with young people who have grown up in germany. >> sometimes, there are expressions i'm not familiar with, and that causes problems. for example, here's a question with many different types of potatoes. if i don't know what that is, i can't answer the question. reporter: the project consultant doubt he will fail the test. just like the other 49 participants, he is young and more than willing to work in the hospitality business. many young people who have grown up in germany refused to consider a career in the hotel and restaurant industry. >> in recent years, the hospitality industry has had difficulty covering its need for new recruits. as a career, it's not attractive

because of shift work and relatively poor starting pay. employees dropped out when they have to work on evenings and weekends when others are partying. reporter: when his hotel training begins next february, he will probably be well prepared. >> now to a story that really shocked me. i was living in sydney not that long ago. sarah: we are not in kansas anymore. a tornado ripped through sydney, damaging properties in many parts of the city. the thunderstorm that respondent be rare twister may have been the strongest on record in the state. it produced hailstorms the size of golf balls, but, as the storm heads back out to sea, there have been no reports of serious injuries. reporter: the tornado stuck with

-- struck with devastating force. when speeds that topped 200 kilometers per hour uprooted trees, leveled buildings, and sent people running for shelter. >> it started flexing and blew everything in. everything is gone. it unbelievable. >> it sounded like 100 airplanes and trains arriving at once. incredible noise. >> i thought i was going to die. i'm dead. i'm done. >> this time lapse the of shows the storm as it roared into sydney harbour. forecasters say though winds were among the fastest ever recorded in the part of australia. a shopping mall was one of several buildings evacuated. heavy rain caused the roof to cave-in. no one was seriously hurt. tens of thousands of residents have been left without power. with just days to go before

christmas, people are facing the long and difficult task of cleaning up. sarah: on to some sports news and the last 16 of the german cup -- led by have been falling -- have been flying high since a new coach took over the team. in his ability to inspire the team might be wearing thin. their champions week adventure came to an abrupt and last week. all the more reason to turn to anyways on tuesday night. reporter: it all started so well. the team was ahead in the 32nd minute, but things went downhill in the second half. they were put under pressure and before long, they turned the match around. they did put on a brief fight back making it to and two in the

73rd minute. suddenly, the team looks fragile. they held behind again and they conceded their 13 goal in just three matches. he added his second of the game, but it was too little caught too late. it was not enough to stop them from falling in their third defeat in a row. sarah: in the meantime, the future of the head of european football is in doubt after he said he would not attend a fifa ethics committee meeting. he said he feels a judgment has already been made. the case centers on a controversial 1.8 million euro payment that suspended sepp blatter act in 2011.

a quick reminder of our top story before we go -- the u.s. federal reserve boss, janet yellen, calls it the end of the historic time -- the fed has raised its benchmark interest rates a quarter of a percent 2.5%. it's the first increase in nine years. the effect was immediate. the dollar and the u.s. financial markets gained ground on the news. you are watching dw. more coming up at the top of the hour. óóññ

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