is out of fuel the government takes big steps, ben and gasoline sales and opening closed energy markets. hello and welcome to the show. i'm seeing beardsley in berlin could have you with us. global stocks tumbled late tuesday and into wednesday, mid growing fears of recession. investors spooked by a new consumer confidence reading in the us, showing the short term outlook for the economy, their world's largest. at its lowest point in nearly a decade. rising food and fuel prices appear to be cutting into household budgets, suggesting weaker growth lies ahead. now before that survey global markets had actually been pairing recent losses. one of the reasons more optimism about the chinese economy. in particular, beijing announcing it will slash the quarantine time for foreign travelers to the country. by half. that means most travelers will only have to isolate for 7 days. analysts have taken the latest moves, a step towards the further easing of china strict rules which have included city wide locked downs in shanghai. and sion just did of you corresponded

so dung hun joins me now from taipei for more. and so she ging pin val just days ago that china would actually meet the growth goal set this year. i believe it's 5 and a half percent. many say that those goals are out of reach you. what should we see in this? is it realistic? o chinese officials would tell you how they are confident to cope with various kinds of unexpected changes that may occur to ensure a stable nomic development. but really, it's not the case, many experts and scholars that that could be 19 and geopolitical conflicts have reduced confidence in the business, outlook and weakened. public consumption invest makes potations, and demand have declined. and doing business has become really difficult. it will be hard to achieve the 5.5 percent g d p growth rate due to the increase our various complicated circumstances and uncertainties. okay, so, so a lot going on there. these goals, maybe a little bit out of reach. what is the last thing imprint of these lock downs that

just the chinese economy, but on it's workers who have been in some cases kept at home for for months i believe. but while aspect is on employment, shyness, urban use, i'm claim and rate hit a record 18 pull point 4 percent in may and is going to fight to 23 percent by the peak of the comic graduation season. in july temp point 8000000 university graduates. i expected to leave school. the lockdown has made job prospect so bleak that some universities are urging students to delay graduation. the other aspect is the declining housing market. saving the housing market is now the top are already stabilized economy. there are the agricultural products for houses, promotion in which garlic wheat, and even watermelons, i use as payment for how for house purchases. one comp community even came up with punishment for people with a large amount of money in the bank without spending it in the housing market,

calling the behavior malicious. so they are just oh, crazy ideas put to practice, to save the housing market, so to speak. where to ask you about friday. that's the 25th anniversary of the british handover of hong kong to china. she jim ping traveling to the territory. i believe. how important is hong kong as a stage for china's economic near it. hong kong to day still plays few rows for china's economic narrative. firstly, to help 1000000 chinese residents achieve global access allocation. secondly, to help chinese and foreign investors manage their onshore investment risks offshore and thoroughly to gradually help the mainland achieve international pricing of commodities and occurrences. maintaining an international orientation as a basis for the long term prosperity as the ability of the hong kong market. however, the reason brand drain of multinational financial professionals because of the political and social situation,

has called experts attention. many worries that melon dies ation of hong kong will make it less and less relevant to an international financial hub. dw corresponded, so it's on han inside pe. thank you. it's a historic occurrence with unclear consequences. russia has defaulted on its foreign debt for the 1st time in more than 100 years. and we'll talk to an expert just a moment about what exactly that means. first, here's a look at how russia got into that situation. 5 ah, russia is facing a historic default on its foreign debt. a 30 day grace period has just expired after a mis deadline on interest payments of $100000000.00 on to government bonds. the kremlin says that default label is artificial lighting, western sanctions for blocking its foreign reserves. rushes finance ministry says

payments were made in roubles in may and transferred to a financial service agency where the money was blocked from reaching bondholders. the default is occurring more in a technical sense, as russia has considerable financial resources, including nearly $600000000000.00 and foreign currency and gold reserves. although a half of that is frozen overseas, sales of oil and gas also bring a steady influx of cash. i'm joy now by maria. she geena. she focuses on economic sanctions for the international institute for strategic studies . ria, thanks for coming again on the show. first question is why, why did russia default, i mean, didn't it attempt to pay the sum that was owed? that is indeed a paradox situation. i don't think there are many precedence out there personally indeed is capable and willing of pain. it has not reserved so doing so. but the

technological they're technica, i mean the technical issues of pain. the outstanding that these problem year western sanctions that have been imposed on russia since fame, barry defective grow, he bits of doing so. i in made this year and the by didn't need ration, did not prolong the special license that allowed the kremlin to tap into san assets at the american banks. and that defacto meant that the fault was lumen the markets half factory in. it was rather an issue of time. does that mean the russia is also correct when it says that this default is artificial and then it won't really be taken up seriously. indeed, it's more a technical side of pain. now this outstanding that because the russia attempted to do so, it claim that it transferred the money. it didn't go through because of the western sanctions. but it also aligns with the western objective of sanctions. is to

tighten the screws on the kremlin to limit its ability to fund that we're and that is one of the pieces of this puzzle. how much to credit ratings really matter when we're talking about circumstances of war and sanctions credit rating agencies. we're crucial here because they usually announce that default is coming, but the region agencies was draw from the russia 1st because of self sanctioning. and then later any services through a link to credit, right, the agencies are also prohibited. so there was a situation where there was no one to officially announce that that's why we hear the position from russia that, that is artificial, that there is no one there to, to say under should thus care about the announcements of default. and it's important to pack it in the short term, the implications of default. quite minimal because russia has around

$40000000000.00 this outstanding, that in comparison with other countries, that is not a lot. but in the long term perspective, that might aggravate russia's ability to raise capital one other markets, non western markets, for example, and saudi arabia or china. so they do care how they will be portrayed, and they care about their patient situation. i wanted to ask you finally about plans for new sanctions against russia, and in particular, g 7 plans to explore this idea of an oil price cap. that is that together major buyers would try and fix a price for oil from russia. do you have any sense of how effective this could be? that is a good sanctions option in terms of the design because it aims to tackle 2 issues. it aim to curve, sorry, oil prices that are currently there. and it also aims to kind of brushes the

ability to fund the water in the short term perspective when know that the europeans agree, the oil embargo, but it starts on late on december. so there is enough time for russia to accrue revenues, record high oil and gas revenues for that matter. so it's important to act now as opposed to december. but in terms of implementations, there are a lot of issues because we need to make sure that countries like china and india by, by this price caps also among the europeans. it's an issue how to set the price ceiling russian oil given that countries differently exposed. they have different dependency on the russian oil and also in terms of a couple in it, there is insurance and ship in bad weather or other countries will be deterred by that. that's a big question mark. all right,

reesha with the international institute for strategic studies. thank you very much . thank you very much. over to sri lanka now and an economic crisis we've been covering for the past few months. the country is running out of fuel. on monday, the government announcing a 2 week ban on sales to private motorists saving waning supplies for essential services. on tuesday had opened its centrally controlled oil markets to overseas firms, vowing to remove all road blocks to injury for desperate sri lankan fuel and help can't come fast enough. usually this is one of the busiest streets and colombo, the capital of sri lanka. but now most costs remain on the sidelines. the road feels eerily empty. almost every once affected by the fuel sales been only buses, ambulances, treacherous and trucks carrying essential goods like food, get dead tanks filled up, many a frustrated. and that was the, the happen, this is

a huge injustice. we buy them fuel is an essential item for the people, sama, if there's no fuel. the whole country will come to a standstill that may go by the way. that's a how can an ordinary person come to work without fuel for their transport? it even in an essential service. i work in tourism. if i cannot get fuel, i cannot come to work. i mean, buses are overcrowded, and many are not working properly. media bol again. the transport system cannot deal with a tremendous influx of commuters. the government has appealed to the public and private sector to allow employees to work from home. schools have gone online to conserve energy. the government of president good a bye are raja coxa took all of these decisions as petrol and diesel reserves have dwindled to barely enough for just one day. the government also want residents could suffer power outages for 15 hours a day. as the asian country is battling,

it's was economic crisis since its independence in 1948. here's a reminder of our top business story. global stocks tumbled amid growing fears of a recession. investors are stooped by a new consumer confidence reading in the us showing a grammar, short term outlook for the economy there, the world's largest. that's it from the business team. thanks for watching. ah, with

with the world is facing a food crisis. everything is getting more expensive and harder to come bye. what does that mean for the economy? what environmental problems do we need to consider? and what should consumers be concerned about? the development and consequence of the global food supply crisis made in germany. in 30 minutes on d w. oh, i see it's just a thought say well crazy man

in a sexual assault survivor, a filipino i for those of us, can we shoot speaker them to step up and say the 2 women in asia that i can see if it's usable, don't be afraid to make me, oh, nothing can stop me. that is your ride. i am actually the ceo and found her. so cra, taking a job. yeah. is me you her women asia, into sports july 6th. ah

ah ah, this is dw news live from burling, nato countries declare russia the most significant and direct threat to security in europe. nato unveiled a revamped strategy with finland and sweden, formally invited to join. and russia officially out of any partnerships. moscow called the move aggressive also on the show, ukraine's president accused as russia of further war crimes after missiles hit.