also on the show, inflation and energy rows are to weigh down on growth in the ex soviet block. that's according to the european bank for reconstruction and development. we speak to its chief economist and china's economic slowdown makes it hard for luxury shoppers to hold on to their designer good. creating a thriving 2nd hand market. this is the w business. i'm janelle delilah unwelcome. the european union says that the nord stream, $1.00 and $2.00 gas pipelines between russia and europe, were deliberately damaged in the baltic sea use of the probable act of sabotage said energy price is higher as the vulnerability of european energy supply and infrastructure was once again thrown into sharp relief. additionally, a payment dispute between ukraine's and nafta, gas and rushes gas prom could further endanger gas flows to the continent.

my colleague, to ponder chem belew has been following the story. here's his assessment of what this alleged attack means for energy markets. the leaks in the north stream $1.00 and $2.00 pipelines have added more uncertainty to the european energy market. there was a bump in prices despite the fact that nordstrom one was shut down indefinitely earlier this month. now given the amount of damage the pipelines analysts are saying they are less likely to be operational at any point this year. some also think that moscow benefits from the additional chaos in the energy market. and if this was indeed sabotaged, as some european governments suspect, it highlights the risk to other critical energy infrastructure in europe. in particular, the baltic pipe, a new pipeline that will deliver natural gas from norway to poland from october. first. this incident shows just how fragile and volatile the situation is,

and many are asking whether russia will continue delivering gas to europe by ukraine. now, reduce supplies, a gas, and mounting and inflation will continue to have a major impact on economies across the developing world. that's what they are, pin bank for reconstruction and a development says, according to the bank, latest report, economic growth is expected to of, to slow further next year. especially in countries in the baltics, the cow causes and a central asia, the focus areas of the london based institution. for 2023, the expertise he growth of only 1.7 per cent, for the region. mostly due to gas prices averaging around 2 and a half times the usual level. a, b r a d, a chief economist viet jaffar chic joins us now. welcome to the show. we've been talking about how these alleged acts of sabotage on the nord stream pipeline might impact energy supplies. but how difficult is it for you to produce economic

forecasts in a rapidly changing geopolitical situation? well, it's difficult to produce forecasts at normal times. the current events make it this task even more challenging. however, with respect to the subtle touch, we have taken into account the possibility of russia completely cutting off gas supplies to europe. and under this pessimistic scenario, our already bleak full cost would be lowered by about $1.00 percentage points. so the already difficult situation would be made even more difficult. now in terms of the economic impact of the war, where have you seen the most divergence among the b r d regents? the 1st half of this year, it surprised us because we saw

a much stronger performance than we expected. as consumers were spending savings accumulated during covet times, exports worse talk. now the effects of the energy crisis, uncertainty high inflation are putting brakes on the economy. so therefore, our forecast for this year is better than expected. but we are lowering the figures for next year. one region that's different than the 5, this trend is central asia, central asia, that surprisingly well, it remained resilient this year. originally we were concerned about lack of remittances. this region is dependent on remittances. we were worried from instances will dry out. that was not the case. moreover, the region turned itself into a hum for trade, for as they serve as an intermediary for chinese and east asian

exports directed to russia. and that's also helping the performance of the economy . so central asia turning out to be a bright spot in those regions. but can you tell us what sort of the difficulties that you've seen and some of the countries mean for the wider global economy? what we have seen recently is re shuffling of global value chains. we have been talking about firms moving from just in time to just in case and by now we already have evidence of this happening. emerging europe is the natural place for european companies to start doing more of sourcing the energy crisis. the uncertainty associated with the war will delayed this process. so this adjustment in global value changes that would have happened faster,

will now be slowed down. e b r d chief economists be at the gym for a check. thank you very much for your time today. thank you. now to some of the other global business stories, making news with inflation and energy prices soaring around europe. thousands in great britain are joining the no pe you kate who's meant the group is calling on its members to not pay their energy bills starting october 1st. the hope that the boycott will spurn the government and energy companies to take action against ballooning prices. apple is dropping plans to increase production of its new i phones this year after an anticipated surgeon demand failed to materialize for the 2nd half of the year, 90000000 phones will be made $6000000.00 less than anticipated. apple is also moving manufacturing to india to lessen dependence on china.

16 major wall street firms have agreed to pay $1800000000.00 and finds over failures to keep electronic records of important communications. bank of america deutsche bank movement, socks and others use personal phones, text messages and other means to discuss financial information without and hearing to record keeping regulations. children the head of the world trade organization, w t. o. no, as the condo, if we all out warns that the world is heading towards a global recession, she expects that global trade forecasts will be revised a lower from the current 3 percent for 2022. the reasons for that are the ongoing russia, ukraine war and a related food and energy crisis. good. she, sandy louis, ve, tall luxury is a world of its own. and that is usually crisis proof. after all the richest of the

wretched spending, even when times are tough for every one else, but not any more. the economic crisis and try in china is changing shopping behavior, even among the most hybrid of clientele. sheet metal shelving product scattered across a simple table. this is a 2nd hand store, but not like the one in your neighborhood where you can buy, worn out suits from 10 years ago. no. here at there's the shelves are stacked with the most expensive names and fashion designer brands like lever tall l miss ent, fendy shoppers here, look for expensive stuff on the cheap shopping. we don't see that i'm a corporate slave. i have to definitely spend less this year, but i still like what i like and i can't help myself because i need to buy it. so i think this kind of 2nd hand shopping is particularly good,

mainly because there lot of products here. and if i like an item like i would just get it straight away. well, see my luggage johan? despite at global economic slowdown, devastating coverage shut downs and uncertainty about the near future. some still need an expensive look, even if they can't pay full price anymore. others, of course, are scaling down who needs good? she. when is stuck at home? to the far, why do you want me to go home yellow? sure. she economic slowdown has had some positive effects on our industry, especially on the consign or side when the economy slowed down, they were thinking maybe why not sell the luxury goods that are sitting idle at home boy, sound archway. why not? what about i this in should a junior luxury, the goods notch way to show my and so sir has become a marketplace for those who need to sell their once expensive accessories to get some much needed cash. and those who still need the luxury fixed but can't quite

afford what they used to pay china. $74000000000.00 luxury good sector is changing . analysts expect the 2nd hand luxury market to put drupal by 2025, growing to $30000000000.00. well, from the high street to the skies, american company aviation says that it's 1st completely electric passenger plane is nearly ready for business. the battery powered aircraft are aimed at, especially the emissions heavy short, whole flight market. take a look from a distance, it looks like a normal business jet, but this prototype, which is departing on its maiden voyage, doesn't produce any emissions. both propellers are driven by electric motors will years experts that fully electric flight was a pipe dream. but the aircraft manufacturers aviation are aiming high. they claim it's alice design will soon be ready for the assembly line. alice can carry 9 passengers with baggage and 2 pilots, or it can transport over

a ton of cargo. the plane has a range of at least 400 kilometers, roughly 20 percent of all. your trouble is 250 miles from us. in that subset of, of your travel, you find the aircraft, the comedy that route length are very similar in shape and size to outspread ether cobbler. so what we've done is that the, the market that we're looking at penetrating 1st is that shows they turn tricky, noncom, our last market and it's short whole flights that produce the more harmful carbon emission levels per passenger and per kilogram of cargo. when compared to long old flights. that's why the aviation chiefs, as alice mocks, a major leap for environmental protection to us base regional airlines have already ordered a 125 alice aircraft and german logistics firm d h out once 12 cargo planes. the h l they've been very public in terms of their intent to help revolutionize the

transportation industry, tackling the climate change had on with some of the technology advancement that they're working on. and so to have a customer really a partner customer like that, it's very important to. ready us in 2025, a company aims to get its design approved to take to the skies. and if that goes to plan, the 1st commercial electric flights will take off in 2027. and that's our so far more checkout d, w dot com slash business entity, w using to channel. we're also on facebook for me in the business team here in berlin. thanks for watching with

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map for modern globetrotters discover some of europe wykard breaking on youtube and now also in book form. ah, this is the w news live from berlin. the european union outlines a fresh package of sanctions against russia. include sweeping new trade restrictions at a cap on the price of oil. the in you is also targeting officials responsible for the sham referendums held in east and you.