occidental of that provision the prize in the fight is a company with extensive global holdings including key asses in the much discussed her museum basin in west texas a primary site of the oil shale boom shares of anadarko were up more than twelve percent on the news while the stocks of the two other corporate suitors fell. as we reported yesterday to trump administration's decision to end all exemptions to their defacto blockade of the rainy and oil sector seemed to move markets with prices rising to recent highs the policy change affected five countries including major consumers china india and turkey which had been previously granted waivers happened ahrons oil exports go to china or did before the end of the extensions to the u.s. sanctions a spokesperson for the chinese foreign ministry denounced the move as an example of a quote unilateral sanctions and long arm during stiction the turkish foreign

minister was similarly indignant over the trump state department's policy change now a senior iranian military official has been quoted in state media saying that officials are prepared to block traffic through the strait of hormuz and all prices are hovering near a six month high. now about this strait of her months what and where it is and how could it be a threat to the move the of the oil markets the strait is a twenty one miles of ocean between iran and oman and geo graphically separates a permit her persian gulf from the gulf of oman roughly twenty percent of global oil production passes through the strait in route to markets around the world virtually all of qatar's output of liquefied natural gas is also shipped through the strait. in years past iran and the u.s. were in tangled in an international equivalent of trash talking around the strait for decades most seriously in one thousand nine hundred eight u.s. forces on the u.s.s. vincennes shot down a civilian arraigning airliner killing all two hundred ninety people on board which

ostensibly protecting ships in the area from iranian forces. oil prices are nearly at a six month high driven by the change in u.s. policy towards iran for the us that would mean an output loss of seven hundred to eight hundred thousand barrels a day for iran this policy aims to cut down their one point four million barrel per day output to zero oil prices shot up to new highs for the year earlier this week with w t i a topping sixty six dollars per barrel and brant above seventy four dollars this morning e.i.a. data was positive showing rising u.s. crude stockpiles to counter the fears of a tight supply resulting from u.s. sanctions on venezuela and iran. crude and mentors rose by five point five million barrels as imports increased the u.s. imported an average of seven point one million barrels per day up more than one point one merrill barrels b.p.t.

from the previous week despite this big positive the market is still on edge and barely reacted to it as w t i take down by just half a percent joining us here to discuss is david make out of any c.e.o. of make of any financial companies and former pentagon official michael maloof. hey michael. so right now if this conflict continues to escalate iran have threatened to close the strait of hormones what are the geographical ramifications of such a move and what it actually need the cooperation of oman. the geo political ramifications would be almost instant overnight you would see a barrel of oil going up maybe five hundred to a thousand dollars because it would be cutting off something like thirty five percent of the of the oil that is. seaborne twenty percent of worldwide oil number one number two the instant disruption would

probably have an impact on the oil exports for u.a.e. and saudi arabia which are the trump administration sought to fill the the absence of iranian oil with china and the other countries so it would the impact would be almost immediate i mean you're talking maybe five hundred to a thousand dollars a barrel conceivably that could occur not to mention the fact that we would that such a blockade and also the u.s. response and the threat itself and the sanctions basically constitute a declaration of war. so there we turn to you how much of the oil is trading at this rate of each day and other opec nations are they affected by that. certainly seventeen to eighteen million barrels per day trades through the region and so that's about a third of the seaborne oil and it is

a critical piece of geography and it always has been if you go back in time one thousand nine hundred to one nine hundred eighty eight during the iran iraq war you had what was called the tanker war that's what it was also known as the tanker war because each side was trying to control the geography and not allow the opposing forces tankers to get through so the price of oil is. very sensitive to the flows that come through there and as michael has said you could see dramatic impact pretty quickly if it was actually shut down it would impact saudi arabia it would impact the u.a.e. it would impact kuwait iraq so there is a number of countries that would have a lot at stake here in terms of revenue that would be cut off at least temporarily . some mycobacteria this entire complex right now is between basically the u.s. and iran however there are so many other casualties involved the other countries that previously were exempted under the sanctions and this includes the biggest

customers china and india this further complicates the relationship between china and the u.s. so how is china reacting to this and could all of this impact and affect the trade or negotiations i think it's going to have a cascading impact not only on trade but overall relationships because of the dependency the china has had on iranian oil you just cannot switch and as i said if if the straits are cut off even temporarily it will have a dramatic impact on any flow of oil and that doesn't include and it's more than just oil we're talking about general commerce of all of these middle east countries that would be impacted by the way the straits are twenty one miles wide but the navigate navigational portion is only two miles wide so you can see the definitely goes into territorial waters of iran so we're iran could do what what was mentioned earlier the tanker war recreate the tanker war here and even in

a short term cut off could be impactful i might add that iran is already. preparing for war we're getting indications that they are lying in the coastline now with a ground to air missiles anti ship missiles so i and the fact now the foreign minister zarif just a few hours ago offered to have a discussion about. prisoner exchanges tells me that iran is becoming increasingly concerned about the way things are coming down. thank you so much and will last one david. take on india india right now is also going to have a very hard time to disengaging from iran. how are they going to risk clearly both both of these countries can get oil supplies ultimately from other places where this ends up shifting the chessboard so the say is away from iran and it ends up favoring saudi arabia they have the easiest time of any country replacing the

million to a million for in daily production that would be lost from iran and so really you're talking about a shift in the balance of pressure we talk a lot about china and clearly in our trade negotiations between trump and genie that's a big deal and i think ultimately who wins here is the saudi arabian royal family what you see strategically that states is this year we have a one point one trillion dollar budget deficit we need friends like the saudis to recycle those petro dollars into our debt markets because we're at an unsustainable level at one point one trillion for this year and this is a non recessionary year. thank you so much former pentagon official michael maloof and david many of the many financial company thank you so much for your time here. thank you. and now to break down how all of this will affect other producers we welcome our to correspondent alex mahela dish. so with all the blacklist on the

iranian oil we see the opec oil producers and others are proceeding cautiously with their reactions what can we expect. well let's see what we're seeing right let's talk about what we're seeing right now and that's people like you and me and our viewers who are driving cars they've seen the numbers jump or rather you go to the gas station everything's got a little bit more expensive and this is something that we're going to see happen over the next few months and it's something that we've seen about six months ago this is the biggest spike in the six months so we're talking according to our b c capital markets they're saying that about don't dissipate and loss about seven hundred fifty thousand barrels a day once you shut down the rant that kills or kicks in i should say to the whole ecosystem of things when it comes to oil and obviously it affects the countries that. these waivers most prominently and that there were eight countries but five actually took advantage of this those cunt five countries are china india turkey south korea and japan so again i'm saying this is a bigger scheme of things going on here and say comes from us driving cars all the

way to these major economies having to figure out what are they going to do now now we know what trump initiatives all about here he wants to drive exports or oil exports down to about zero that he would love to shut this country down completely and as we just heard there is more to this it's geo political it's not just about oil it's about politics it's about money i could always it's so break it down now we're going to look at the saudis they're looking actually at a possible loss here even though that they're trying to keep a brave face at this moment if you remember that with the opec and russia last year when this whole the radiant thing kicked in you know they said ok we're we're produce more oil flooded the market with oil and this wasn't good for oil prices the drums issued the same sions against iran basically the prices of oil collapsed and that's the way that this works now you know analysts of war did that every barrel pumped it will also to offset this is

a barrel taken out of reserves which is another issue if oil prices get very volatile if things go if it's an emergency measure that needs to be taken in the country you're not going to have the oil to do it because this stuff is flowing way too quickly. and seems to believe that right now the gulf nations such as saudi arabia and the u.a.e. well gleefully fill the void but seems like they're not thrilled about the prospect and the president as the president had hoped. well let's start with a quote here and this is from the energy minister of saudi arabia he says that the saudi arabia will coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance now they're happy face a that's a that's a great croquet but it's unclear how long it would take so many arabia to actually kick up its oil production which is a massive thing and don't forget that then you just talked about that strait of hormuz a lot can happen there which will be very very volatile days for oil in the near

future if that goes down but we're not in a good place that's for sure. our take or spawn alex thank you so much thank you. time now for a quick break but hang here because when we return but the china building more quite literally in the wake of the american trade war may be entrusted to know just how much of the e.u. does china now economist richard wolfe joins us to analyze the potential fifty hour shift underway across the atlantic. and as we go to break here the numbers at the club. where. we could only if you don't sort the rulebook. sobers you don't. have to.

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welcome back boom busters are well aware of the power shifts in chinese demand to decisively move the markets for almost any commodity in two thousand and eighteen china which was one of the biggest global importers a plastic waste effectively banned its importation producing a big shift in the sector much of that material has been redirected to china's neighbors notably in malaysia or plastic imports have tripled since china's policy change according to a.f.p. in indonesia government statistics indicate that plastic imports increased by one hundred and forty one percent in two thousand and eighteen and while the plastic import ban may make china a little cleaner those extra analogies of past production are now affecting their neighbors some malaysians who live near a plastic recycling plant say they fear low grade plastics are being burnt producing dangerous. the facts are being felt as far away as australia the president of the waste management and resource recovery association of australia

told a.f.p. twelve months on and we're still feeling the effects but we have not moved to the solutions yet. the battle between the u.s. and huawei is still ongoing and according to recent reports one of washington's closest allies the united kingdom has decided to allow the company's involvement in the creation of its five g. network artie's rachel blevins joins us now to discuss the details. rachel so what are the reports saying right now about the possibility of the u.k. working with law way raise the looks like the decision was made by u.k.'s national security council which is chaired by prime minister theresa may and according to the reports that have come out about it so far they're saying that the u.k. plans to give wall way limited access to help build non core elements of their five g. network so they're taking some of these privacy concerns into account but at the same time they're not completely ruling out working with while away altogether and

that's a really big deal because right now the united states has been actively warning other countries about working with wall weigh on their five g. technology and u.s. officials like secretary of state might pump a zero has even gone as far as to say that those countries that do decide to work with wall way could end up cutting intelligence ties with the united states because the u.s. doesn't trust them as a result of that. so the u.k. is a member of five eyes intelligence alliance along with the u.s. how have the other members of the group reacted to washington's warning to stay away from holloway race in this alliance we have the u.s. the u.k. and then canada australia and new zealand and australia was actually the first country to come out and to ban working with huawei on their five g. network and then new zealand follows suit shortly after in canada hasn't officially banned it but at the same time the canadian government did comply with the united states when they came out and asked canada to arrest wall way c.f.o.

back in december so and they're also going forward with the extradition process to possibly send her to be united states so they may not have banned it but it's at the same time they still do appear to be working with the u.s. on it as it looks like right now the u.k. is the only member of this intelligence alliance that is actually standing up and possibly not exactly following orders from the united states it's interesting then the decision to work with holloway was reportedly made by the u. . his national security council and this is something the entire government seems to be on board with well right now it looks like there are still members of members of parliament and a number of british officials who have warned about the possibility of working with wall way and who aren't completely on board right now so i think it's all going to be up to how the united states responds to this news and if the u.s. comes out and starts threatening either cutting ties or threatening in a number of ways against the u.k. we'll see how then the u.k.

government will respond. thank you so much for insight r.t. correspondent rachel blevins thank you. the european union has grown concerned over china's economic ambitions in europe and considers it a strategic competitor since two thousand and ten china has made significant and increasingly large investments in the e.u. about a third of the blocks total assets are now in the hands of foreign owned companies all of these nine point five percent of these companies have their ownership based in china hong kong or macao or up significantly from two point five percent in two thousand and seven. the company compares that to the control of twenty nine percent controlled by either u.s. or canada right now and that is a significant decline from the forty two percent back in two thousand and seven analysts and estimate that comprehensibly china has invested three hundred eighteen

billion euros into the e.u. over the past decade while the total amount is not huge relatively speaking that pace is alarming. chinese entities are already partially or wholly own at least four airports six seaports wind farms in nine countries and thirteen professional football teams the volume and nature of these investments have raised a red flag and e.u. leaders are pressing for a strategy to handle china's relentless advances into europe thus the e.u. is introducing a new mechanism for screening foreign investments to evaluate if it threatens the security or public order of more than one member state or if it undermines and e.u. wide project joining us to break it all down is richard wolfe professor of economics m.r.s. at the university of massachusetts amherst and the author of democracy at work a cure for capitalism. welcome. thank you glad to be here so relatively speaking the total amount of chinese investments in egypt is still

small compared to that of the u.s. and canada is this concern valid. no i think this is a normal part of economic growth it shouldn't alarm anybody unless you're alarmed by the process of change which may be what's going on china is now the second most important economy in the world it's a world economy closer integrated across the world than ever before it's therefore inevitable it's built in that the chinese will develop interests for exporting their goods for importing their necessary inputs and they're going to want to make investments around the world that are consistent with what they're trying to do inside their own country since they've developed country based on the interactions buying and selling and so on with the rest of the world they would have increased as quickly in the united states and canada as they did in europe but the united

states with kind of the acting as the lapdog of the united states in this situation the united states has closed itself. of has acted in a hostile way as discriminated has persecuted weiwei and other companies so they're moving more into europe because it's important for americans to understand that the europeans have done none of this they don't tariff against the chinese they don't make statements about the chinese they don't behave in any way like mr trump and the g.o.p. have and so consequently the chinese are moving a bit more into europe but there's no way to stop that process and by the way one of the reasons it flourishes is that every time a european company is in trouble it turns to the chinese because they have the money to help them out they have the money to lend they have the money to invest and for them to close off connections with the chinese would be to shoot themselves

in the foot precisely in the way that more and more americans companies are discovering that they're having to do because of this u.s. china war yeah you're absolutely right right now money flows where it's most needed where it's easy and if it and where it's most needed and right now cyprus and other small territories all of those countries are actually responding poorly to this decision they welcome chinese investments so how if this policy came to pass what would happen to them. well i think that the irony is if the united states and china were to reach an agreement a genuine one which i don't think is about to happen although most of this fighting is field or political theater i don't think the basic tension is going to go away any time soon so i don't think the europeans have much to worry about they can go through the the theatre if you like the security concerns i find most of that

beyond belief let me give you an example last week. the united states government released the fact they don't trust the wall way corporation because the chinese government various agencies do business with way invest in wall way well let me remind everyone every single one of the major american telecommunications companies are b.m. apple google any of them do lots of business with the united states government should the rest of the world not trust them either the logic is peculiar and doesn't go with the world economy either you embrace a world economy or you withdraw from it the united states currently seems to want to withdraw and that brings the rest of the world closer together in a way that should worry american policymakers a lot more than what huawei does professor richard roth thank you so much where

inside. my pleasure thank you. that's it by this time you can catch boom bust on you tube dot com boom bust r.t. c. and i sang. the number the famous french williams the new wave upon the back in the sixty's i think with people well yes and tell the audience right happens they eat themselves to death yes and it's really kind of violence actually hard to watch but it's gross they're burping and farting and puking and it's just keep on eating you know right that's blackstock. berkshire hathaway jamie diamond clergy themselves to death on

the school failed. and they themselves will perish. and take their entire country down with sound because they can't stop there's no editor in their minds are like goldfish in a bag of food they're just keep themselves to death. facebook and google started with a great idea and great ideals unfortunately there was also a very dark side. they are constructing a profile of you and that profile is real it's detailed and it never goes away turns out that google is manipulating your opinions from the very first character that you type into the search bar it will always favor one dog food over another one comparative shopping service over another and one candidate over another they can suppress certain types of results diced on what they think you should be see if

they have this kind of power then democracy is an illusion the free and fair election doesn't exist for the more growth we give them the sooner we are all hand . joined me every thursday on the alex salmond show and i'll be speaking to guest of the world of politics sport this i'm show business i'll see you then. the united states relations with russia or iran have never been particularly cordial but under the presidency of donald trump both took a downward spiral there have been sanctioned attempts at isolation and a badge of evil for both moscow and to iran how are the two leveraging american and with.

what politicians do. they put themselves on the line to get accepted or rejected. so when you want to be president and she. want. to go right to the press which she was before three of them or ten people. i think are still always in the water. there should.

be. the leaders of russia and north korea concluded their first ever summit for more than two hours of face to face talks both lot of books in the end kim jong un expressed a willingness to work toward the denuclearization of the korean peninsula. you would think you could we have some confidence building measures to be taken if you're making a step forward two steps a basement you'll never succeed if the bill was more. often this our human rights groups condemned as grotesque saudi arabia's beheading of thirty seven people had to be mostly from the shiite minority one person's body was even strong up in public following the largest mass execution in yours.