a new study from the german development bank has shown that sales from german s.m.u. companies like this manufacturer of specialized palms rose steeply yet again in twenty sixteen they were up by nearly four percent to four and a half trillion euros that's the strongest growth for five years unlike in the past however much of that growth is being powered by domestic demand rather than exports and in a kind of feedback loop domestic demand is in turn being driven by excellent employment figures as the middle east and companies hire more staff to cope with rising orders at the end of august germany's federal employment agency announced that only around two point five million people are currently looking for work pushing the unemployment rate to the lowest level since german reunification more than twenty five years ago. the european parliament has called for the controversial weed killer of life a say to be phased out in the next five years that prompted the european commission to drop its proposal for a ten year nice house extension its life a state is most frequently

role they play in the country's economic health is more vital than ever a new study from the german development bank has shown that sales from german s.-a m.-e. companies like this manufacturer of specialized pumps rose steeply yet again in twenty sixteen they're up by nearly four percent to four and a half trillion euros that's the strongest growth for five years unlike in the past however much of that growth is being powered by domestic demand rather than exports and in a kind of feedback loop domestic demand is in turn being driven by excellent employment figures as the middle aged and companies hire more staff to cope with rising orders at the end of august germany's federal employment agency announced that only around two point five million people were currently looking for work pushing the unemployment rate to the lowest level since german reunification more than twenty five years ago. christan call it is a member of the board a big con the german i.t. association because he and have the germans got too good a date in danger of getting lazy competition wise internationally i don't think so i t

development bank and germany's g.r.i.z. development agency the boss about is german and a former investment banker. we're going to make it what it hasn't always been here we started out in stanford california and then moved to berlin but that wasn't the right fit this is where we had a breakthrough. when you make something and then see it being used right away at the very same location and see what people are doing with it but it works it's twice as nice because you can see what you've accomplished. a growth company is now based in dhaka he's learned how businesses operate in bangladesh and learned enough bengali to get by day to day. to. the problem is that people or companies that feed energy into bangladesh as national grid aren't paid for that surplus power with national elections due late next year that's not likely to change the government is also promoting the use of nuclear power. not much is happening on the traffic front either. everything's close together here the distances on that great bangladesh is just right for the trim ability. so share is also planning another pilot project. this

turkey, south africa, mexico, let's start with turkey and the development about german banks restricting freeze, but imposing tighter restrictions. how does this play out? is a country that desperately needs foreign funding. they have a large current account deficit, probably 4% of gdp. there is indebtedness of $200 billion that needs to be refinance. foreign banks if they decide to interrupt about funding, that country is in serious trouble. hasgood news is that turkey always been able to generate that funding either through high interest rates, currency weakness. haveocal corporate seem to a significant amount of foreign assets. clear, this development is an actual reduction of and closing turkey, turkey is in trouble. about southalk africa, where we have seen the rand tumble and yields soar on concerns about sustainability plus increasing debt. how has is caught the market by so much surprise? africa should not have caught everybody by surprise. it hasn't. today's news was a budget deficit we all thought would be 3% and is closer to 4% to 4.5%. this is a country that has given up on s

briefly, about the investment banking side, how are those ambitions developing? the german landscape, a lot of volatility there deutsche bank and commerzbank. is this your opportunity to effect more efficient investment banking ambition? years wever the last have invested in investment banking franchise and have moved from a challenger in the nordic region to a clear number one. that's a position we intend to keep. we see that across the asset .lasses we are the leader and we intend to retain that position am very proud of the position we have achieved. manus: we wish you well in the transformation. never easy when you have to announce job cuts within the institution. we'll have much more on the bank earnings season as they continue today. workplace, ceo of and we'll see how european banking landscape is looking. a couple of lines coming through, telefonica coming in at .0 9 billion. nokia missed but telefonica missing in terms of the estimates on oibda. about 17 billion euros. special charges for continued operations. adjusted ebitda will be slightly above the level of the

now for some more analysis let's bring in his with a german investment and development corporation a subsidiary of germany's state on development bankand an expert on the african energy market welcome to the program now of the potential in african nations is there why are china the u.s. and india driving the push in renewable. i think you're right that africa has a huge potential especially in terms of hydro in terms of wind in terms of solar and especially also in terms of geothermal and africa is doing a lot in order to use this potential for example we are financing one of the largest wind power parks in the north of kenya and we are financing also not in order to promote what we have seen in the movie of great solution before for the very poor so what has indus africa one think is that huge infrastructure is required and its remit costly so it called on the government to mobilize sufficient funding for that and the court also once again on the government to create an incentive. regulated environment which is conducive for the private sector to come in. and this is not easy to do that is the second problem that we are facing in t

report that the german government is wielding its influence international to mehlman institutions to restrict finance. bank inpean investment the european bank for reconstruction and developedty astonishing move. shery: time now for the stock of the hour. avocado pricing, hurricane, norovirus, rats, where my going with this? getting hit by a host of problems last quarter and shares her tumbling today. julie hyman has the details. what's going on with this company? julie: all that you sent. articlesw from all the about millennials buying avocados instead of houses, avocado pricing has gone up which is been a problem for margins. the hurricanes close to some of the restaurants and it was a norovirus outbreak at a restaurant in virginia and reports of rodents falling from the ceiling at one of its locations in texas. if this confluence of events the really combines to make the quarter a big miss. earnings-per-share were 69% -- $.69 and there's one thing i didn't mention there was a bill that came to for a hack attack at the chain. that $.69 is net of expenses and tied to that, analysts have been looking for $1.53. you see what's going on here. for the's at stake company, and w

german curve, it looks very different. how will those two things migrate. peter: you bring me to my favorite subject. the difference between what the ecb's doing and most of the other central banks of the developso stark. i think this discrepancy we are seeing in yield curves could not be started. most of the others try to lift the other. the ecb is committed to keeping interest rates nailed to the floor. say, even if a skill back to qe purchases by more than the market currently expects, i think they will only do that to extend the duration of the program and thereby extending the rates even further. the curve is go to steeper -- going to steepen in terms of the global yield environment. matt: peter, thank you very much for joining us. peter schaffrick is a global macro strategist at rbc europe. up next, we are going to talk about chancellor merkel suffers a defeat in the state election. could that we can her hand in the desk of that we can her hand -- could that weaken her hand? will take a look at the impact -- we will take a look at the impact. this is bloomberg. ♪ guy: 8:40 in london. let's take you back to what is happening in spain. the region's president failed to clarify his position