hey, and we take you to versa the heart of turkeys, automotive industry, where car sales are grinding to a halt. i'm janelle dumas on and this is d w business. welcome to the show. financial markets have tumbled in europe and asia as the tension between russia and ukraine increases. signaling worries among investors of a wide spread economic impact of a potential conflict. the trading day began with losses in tokyo, hong kong, and by that says, the u. s. government warned that a russian attack on ukraine could be eminent, bad news across europe to just take germany's dax, which fell over 3 percent on the open. even the stock, $600.00 of top companies across europe dropped as well. interesting, also the impact on russian stocks, the domestic focus, more wax fell. whereas the foreign focus r t x r t as index tumbled,

a massive 5 percent shortly after starting trading this morning. the only thing that arise oil with investors worried a conflict could hamper russian oil production. craig or lamb is a senior market analyst at a wanda. i asked them what's behind the markets. nervousness markets have been on edge all year, whether that inflation or interest rates, there's been the certainly been an underlying and zion in the market has been extremely prevalent. we sort of shops off in january, and this just compounds the issue. really. i mean, obviously giplin scores can itself on the risk of an invasion would be enough to dump and sentiments in the markets. boats coming from such an important source of oil and gas means that we are going to likely see further inflation prices. if this does materialize, where we have an extremely tight oil and gas market right now. so the last thing we need is, boy, is seemingly or potentially unfolding. and it's that fear that heightening the

concerns which have already been prevalent for a number of weeks in the markets. if you can tell us a bit more about what the market think is going to happen to the energy markets in light of this crisis, craig, so we have to remember that the global economy has rebounded much faster than many anticipated and opec close, which includes all of the opec countries and rocher and a few others have been gradually returning output by $400000.00 barrels per day. each month to pre pandemic levels, which are hopes to hit later on this year. now it's struggle to actually hit those levels that it's been trying to achieve each month as it is due to want to investment and other issues. which means that they've been falling show of target. what that means is we're in a market where demands greatly exceeds supply, which is why price is already for, for oil in particular is already extremely high. there's also been tighter supplies of natural gas as well. so when we're talking about

a conflict or the the potential for conflict which could lead to sanctions, which could be, which could lead to orland gas being used as a weapon, as a council weapon against the european and us sanctions. then all of a sudden the market starts to view this as a, as a major issue, which is why we are seeing commodity prices in particular rising. and i think that's really having a doubling effect on the stock market as a say, sentiment would be soft regardless. but the coming at such an important time, such tight markets, high inflation, it really does just exacerbate issues which are already existed. now russia, of course, is quite well integrated in the global economy. that means we can expect ripple effects. so what is at stake here for the economies of europe, craig, the greatest thing, it's revenue for europe suspect isn't the economy. perspective is the inflation, we've got to remember the cost of living prices now in many countries around the world. and the economy has done very well to bounce back from, from the rigors of the global pandemic. but if you will,

piling more misery and households and businesses that have already suffering under the weight of higher oil prices, higher energy prices high, a broader inflation. this has not affects as ripple effects throw shoulders other areas as well. so we've seen higher food prices and now seen ripple through to high wages, higher service costs. so all of a sudden these inflationary pressures become much more widespread, which is compounding the pain that households and businesses of feeling. and this just threatens to do that more. so 2022 is already shaping up to be a very challenging year for many households and business. and should this escalating something more serious than that will only compound those to their challenges. a challenging year could get even more challenging. craig, airline senior marketing market analyst at luanda. thank you. thank you. like its allies, germany is counting on the threat of economic sanctions to avoid conflict between russia and ukraine. but russian president vladimir putin is putting his hopes on

china. the question on the table could china step in as russia's primary trading partner? if the europeans cut business ties? the european union is still russia's biggest export market by far. a 3rd of all russian goods are delivered to the you. by comparison, china share of russian exports is half that. but in the past 5 years, that gap has been narrowing. russia's most important export is of course, natural gas that you imports at 200000000000 cubic meters of russian gas per year, making europe's rushes most important gas customer. china currently buys only 38000000000 cubic meters of russian natural gas. but demand in china is growing and more gas pipelines to china are already being built. now for more on this, i am joined by steven chang. he is the director of the china institute at so us at the university of london. welcome stephen. so are we to imagine china as waiting in

the wings for western sanctions to take effect and potentially pulling moscow closer? i don't think the chinese government is particularly looking forward to a wall over ukraine. but if the russian shouldn't been late and western sanctioned should be imposed, the chinese government is ready to give russia helping her. now how, what sort of form would that helping hand take? well, it will be like you say, trying to becoming a market for a range of russians, war materials and goods, particularly gears and energy products. china will be helping russia in terms of your financial services. again, that is all these things are helpful to try the itself. they are not simply helping russia out of o truism. it is mutually beneficial for russia and china. well,

perhaps you can tell us a bit more about that than what is in it for china, especially as we are looking at these 2 countries. it is not as if they're equally matched in terms of economic might. so what is it? well, what, why is china doing this? i think china is doing it more than for any material benefits, because the material benefits in terms of and hands, energy security from russia will have to be counterbalanced by the loss of chinese interest, potentially in ukraine. now where they really want to help the russians is strategic . both. she can ping and pill tinged. want to make the world safe for terrorism. so days share these come and strategic goal. they also share a 2nd strategic goal, which is to take you in that a stage found a not or tool in terms of the american global leadership. and again,

this russian challenge to nato and that american leadership opened a tool is a helpful one from the chinese government's perspective. you say that, but it's also worth pointing out that china has also been a key trading partner for ukraine. they've pursued these ties, especially over the last years. what happens to those ties in the event of a russian envision? well, e, strong, i, economic interest china has you in ukraine, particularly in terms of the ukranian cultural products going through china and ukrainians. jack engines and other of last hot way as foolish to china are the reasons why the chinese don't really want it all the ukraine. but the chinese condition for helping russia almost shocked. and he will encourage, and the arrangement or a promise from putins,

that chinese interest as to new craned will be long after and long hand in the event of russia using force against ukraine. stephen child, he is the director of the china institute at so us at the university of london. thank you very much for your time today. now turkey is runaway inflation has made headlines for a while now and bertha, the center of car manufacturing in the country, residents are finding themselves unable to afford their own city's main product. bursa. south of istanbul is the heart of the turkish automotive industry. more than half a 1000000 vehicles are built here every year. many of them are exported, but fewer and fewer cars are being sold here. inflation and high taxes are turning car ownership into a luxury. it's hard to gauge how workers here are getting through the crisis. security guards break up our attempts to ask them outside the factory gates and

they threatened the employees. workers are more willing to speak up at the labor union offices, did in rossville written cutting. well i now we're in twice the minimum wage here, cousin, it's a good salary by turkey standards also, but even so it's just not enough to feed a family of 4. if no credit has that, our credit card debt has doubled. it even tripled huffman, which was much with images turkey's years of impressive growth are now over and the deep slump has people worried. prices for electricity, natural gas and food are exploding. president, wretched tie up air to one is promising a turnaround by the summer. but few people here, believe him, us get into it, don't because they've now increased the minimum wage, but it's still not enough for my children to be able to support a family day. i guess my husband is retired. his pension is also gone up, but it's only about a $160.00 euros a month longer. it's a joke, i think,

should i give people are now unable to make plans for the future. an apartment or a car are now out of reach, even for those with good paying jobs. like the auto workers here. i'm gonna say, well, how could i buy a house on my income? cars have been way too expensive for a long time now without i'm here. at least i have a motorcycle to that and i'm praying. it doesn't break down what one gross market is used. cars prices keep rising almost every week at this dealership demand has also gone up because new cars are so expensive, people try to get their hands on a use one while they can still afford it. for the slot customers might, for example, try to replace a 4 year old car with a newer model. wiley still can, and that's got the market moving dead off of those yoke mer. why should the pandemic inflation and high taxes have come together to make this a hard winter for turkish consumers?

and a reminder of the top business story we're following for you this. our financial markets have tumbled in europe and asia as the u. s. government warned about a new russian attack on ukraine could be imminent. that's all from us. thanks for watching. with

collecting garbage in space. this crap so ah, around here is well and received a dangerous start up. so working on new ideas for waste disposal and thinking ambitiously about sustainable waste management in olds. tomorrow to day in 30 minutes on d w. ah . please listen carefully. don't know how you missed to be a good. ah feel the magic

discover the world around you. subscribe to d w documentary on youtube. every day counts for us and for our planet. global ideas is on its way to bring you more conservation. how do we make to see the screener? how can we protect habitat? what to do with a ball our ways. we can make a difference by choosing smartness solutions over stain said in our ways global ideas, the environmental series in global 3000 on d, w,

and online ah ah, this is that we news life from berlin, crisis talks to avert war in eastern europe, before he had to moscow, germany's olaf shoulds tells ukraine's president, germany stands firmly with keith. this as russia, as military stands, poised on the ukraine border. also on the program, the shadow of a positive drug test looms over russia. star figure skater young camilla believe will be allowed to compete in the olympic women's singles events but not the.