and japan meet for the first time in 12 years, seeking to set aside historic differences. the european central bank has hiked interest rates by half of 1%, despite the impact of rising rates on the banking sector. it comes as central banks and governments around the world are nervously watching whether the crisis surrounding credit suisse will develop into a global banking crisis. shares in credit suisse have stabilised after the swiss national bank offered it a funding lifeline. so how did we get here? credit suisse was already in trouble before its biggest investor saudi national bank announced on wednesday that it could offer no more financial support. that lead to its share price plummetting by 30%. late wednesday the swiss central bank said it would provide financial support to the tune of $54 billion us dollars. that has reassured the markets for now but concerns remain about contagion from the collapse of the two us banks last week. it is all quite complex, it is all q
Baker john stripes is like you live with the rules set by the deep. Cuts. Being recipes for success the strategies that make a difference. Baking bread on d. W. Economies a bullet hold with paradoxes the Airline Industry is just one example state Financial Support huge Tax Exemptions for fuel means flanks cheaper but what about how Carbon Footprint and isnt that our tax money any way a Government Subsidies to help or hindrance lets start with germanys 54000000000
euro climate deal a source of much protest it will run through to 2023 with the aim of reducing c o 2 emissions by putting a price on them the plan is budget neutral meaning the country wont have to take on any new debt to finance the plan as one bit of good news but many say its inadequate its a strategy that balances the interests of too many different Interest Groups to actually do anything for the climate and despite the states apparent good intentions it continues to support Energy Intensive industries with Financial Aid
their disposal to try to tame inflation and it essentially makes it more, there s more incentive to save rather than borrow and it makes it more expensive to borrow so that is why they do it. there was expectation that the european central bank, the bank that controls interest rates for 19 euro zone economies, would hang off rising rates because of the turmoil we have seenin rates because of the turmoil we have seen in the banking sector but they have continued their plan about what is interesting if you look at some of the details and christine lagarde is speaking right now giving more detail about it, she says they are monitoring current tensions and they stand ready to respond if needed and that inflation has been too high for too long. we can take a look at her speaking and what she is saying is about how we tackle inflation and make sure that is in check before we worry about anything else. the current worry as far as credit suisse is concerned is specifically related to them, it
e.c.b. is also supposed to promote growth politicians aren t allowed to intervene. the powerful institution has 2 main instruments number one the key interest rate the e.c.b. lends money to banks and hasn t charged interest on it since 2016 by doing so it wants to encourage those banks to create cheap loans in turn boosting the economy by promoting investment and outlay. inflation is also supposed to rise the central bank wants it at just under 2 percent if it comes in at less the danger grows that prices could fall long term. the e.c.b. can also buy bonds which is supposed to strengthen national economies it holds private and public sector securities totaling around $2.00 trillion euros. by buying the bonds the central bank affectively pumped fresh cash into euro zone economies which is good for growth but critics complain that s actually not allowed
sometimes in london sometimes here in berlin today you re here berlin good to have you with us so let s just pick up on what we heard in the end i mean the european central bank warns that the euro is not out of the woods just yet if i came to you as a customer and i would ask you for a risk assessment for euro zone economies what would that be like ah i would say that the eurozone economy is probably in better shape and the japanese the british the u.s. economy among the major regions in the developed world the euro going to be actually looks best it s on the right track we still have significant unemployment but it s fourteen fast we still have some banking issues in italy but even there non-performing loans are finally being tackled and declining we have pretty strong growth now in the entire area from greece to ireland so we are making a lot of progress as what makes the eurozone economies better than the japanese for