turkeys automotive industry, where car sales are grinding to a halt. i'm janelle demila 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 imminent, bad news across europe to just take germany's docs, 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 in depth tumbled a massive 5 percent shortly after starting trading this morning. the only thing it

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 him what's behind the markets. nervousness markets have been on edge all year, or 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 geopolitical risk in itself and the risk of an invasion would be enough to dump and sentiments in the market. books 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 faster than many anticipated and opec close, which includes all of the opec countries and russia in 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 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 short of target . what that means is we're in a market where demands greatly exceeds supply, which is why high prices already for, for oil in particular is already extremely high. there's also been tighter supplies of natural gas as well. so we're talking about a conflict or the, the potential for conflict which could lead to sanctions, which could be,

which could lead to oral and 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 effects on the stock market as a se. sentiment would be soft regardless, but the coming at such an important time, so to tight market, high inflation, it really does just exacerbates issues which are already existed. now rush 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, its revenue for europe, perspective from 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, the rigors of the global pandemic. but if you're 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 no, carfax, as ripple effects throw shoulders or other areas as well. so we've seen high of 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 in 2022 is already shaping up to be a very challenging year for many households and business. and should this escalades in something more serious than that will only compound those to their challenges. a challenging year could get even more challenging. craig airline senior market. it market analyst at winder. 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 brush as 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 at 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 china. 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 russians shoot in late and western sanctioned should be imposed, the chinese government is ready to give russia to helping her know how what sort of form would that helping hand take? well, it will be like you say china becoming a market for a range of russians, low materials and goods, particularly gas and energy products. china will be helping russia in terms of their financial services. again, that is all these things are helpful to china itself. they are not simply helping russia out of altruism. it is mutually beneficial all russia and china. well,

it 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 match in terms of economic might. so what is it? well, what, why is shina 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 kind of balanced by the loss of chinese interest, potentially in ukraine. now, where they really want to help the russians is strategic. both she campaign and built in want to make the world saying, or what we're terrorism. so days share these come and strategic go. they also share a 2nd strategic goal, which is to take you and that a stays down a knocked or 2 in terms of the american global leadership. and again, these russian challenge to nato and therefore american leadership over natal east,

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, the strong i economic interest china has you in ukraine, particularly in terms of the ukranian of or cultural products going to china and ukrainians. jack engines and other of last new hot where's foolish to china? are the reasons why the chinese don't really want a war all the ukraine, but the chinese condition for helping russia almost certain evil encourage. and the arrangement, or a promise from proteins that chinese interest is in ukraine's will be long after

and long hand in the event of russia using force against ukraine. steven chang, 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 has run away. 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 cities mean 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 in rossville written because, and i now weren't twice the minimum wage here because it's a good salary by turkey standards also. but even so, it's just not enough to feed a family of 4. if new credit has that, our credit card debt has doubled yet even tripled huffman, which was much with the managers turkeys, 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. 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 getting a militarily. 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 growth 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. so the slug 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 finish up 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 that a new russian attack on ukraine could be imminent. that's all from us. thanks for watching. ah ah, with ah, a short heritage. fresh voices?

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ah ah, this is either be news live from rural, that crisis talks to avert war in eastern europe. before he adds to moscow, germany's old shoals tells ukraine's president germany stands firmly with keith. this, as russia's military stands, poised on the ukraine border. also on the show, the shadow of a positive drug test looms over russia. star figure skater, young camilla valley ava will be allowed to compete in the olympic women's singles events. but that's not the last word on this case.