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tv   Business - News  Deutsche Welle  June 2, 2022 4:45pm-5:01pm CEST

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sure, and international monetary fund bailout as shortages, wilson and the economy disintegrates. i've been for swollen. let's do business. a little breather. as trading got underway in europe is thursday. oil prices fell by around $2.00 a barrel, a glimmer of hope that opec plus produces will get a grip on crude markets. they've surged on russia's war and ukraine. could there be consequences for moscow? russia is foreign minister, sergey laughed. rob stressed not only the importance of the oil cartel wednesdays meeting with his counterparts from the gulf region, but also of unity. berkeley springs up principles of cooperation on this basis retain their significance. these statements come amid rumblings in the oil alliance under pressure from western sanctions. russia's oil production has dropped by $1000000.00 barrels per day. meanwhile, prices have exploded. in order to limit price shocks,
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the u. s. is demanding that opec increase production volumes. some member nations are in favor of raising production quotas, but this requires agreement with russia. after the united states, russia is the world's 2nd largest oil producer, and through the opec plus membership. russia is bound to the decisions of the other opec countries. currently, russia has no interest in increasing production volumes and might not technically be in a position to do so. anyway, because of the barrage of western sanctions. a decision is now on the table to exclude russia from the cartel or not. address goto is direct with a very pon to school of public policy. is russia going to get kicked out of opec thoughts? well, i guess that very much depends on the political signal that opec wants to sense. i mean, there's a couple of countries that have spare capacity still, and that's precisely the ones that are pondering this idea of kicking,
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rush out. but on the other hand, the question is how to respond to demands from washington, from brussels, from the capitols in europe. and what is the political signal that you want to send to you? and i do want to align with russia, or do you actually want to say, look, a cartel, we take market management seriously, and that's precise the question, opec and span. so today is there are enough spare capacity there to offset the drop in russian production that we're, we're already saying well, there is some spare capacity. indeed, the saudis have spare capacity. you 80 have spare capacity. there is a discussions going on with enough for the sake of the argument on whether it's some of the sanctions that are still in place could be lifted, possibly increasing supply from that country going forward. so there is a spare capacity in the market, but maybe one thing that's important to bear in mind is we're talking about 2400000 barrels of oil a day that much ascends to europe every day and replacing that might be difficult.
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ok, but you say the capacities there is the will there because so many of these middle east nations have very close ties to russia and rely on russian wealth. well, they to some extent can hide behind the russian actions and ukraine and that aggressive war, simply because they complain russia for hiero prices and pockets the windfall. and that's precisely what has been happening. but there is another element which is important. and we have seen this in the past already in the seventy's, for instance, when prices were skyrocketing at some point, but the man side will respond to the prices and consumption will go down. and that's precisely not what saudi arabia ones and other countries that want to stay in the game for some time to come to see demand full. i mean, shortly we, we would have to see some sort of shift to add a huge shift to renewables which is already underway,
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but probably won't come quick enough for the ukrainians. certainly not. and, and i think it's also important to bear in mind there's some things you can do with renewables when it comes to replacing oil. but there's a lot of things you cannot think about the petrochemical industry. you cannot run them on out of tons. and that's precisely, we're the west needs to probably look at the mon side responses by the way. this is happening already. the global economy is in great shape. we will see probably a recession in the eurozone going forward. the west is not growing as expected. north china, so we are seeing some demand thought response is already in the shape of economic contraction and backward temper demand. andreas co tell, thank you very much for the analysis. thanks for having me. or from worries about recession to an economic crisis in sri lanka, which is becoming increasingly dramatic with residence life savings virtually disappearing into thin air. one estimate from johns hopkins university shows real inflation and over 130 percent in march. it's approximately 6 times the official,
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right by the government. really, everything is in short supply, especially in puerto goods. the government is even asking airlines to stop refueling in the country to save on fuel. one of the reasons for the crisis is the corona induced slum in tourism. on top of that, they were political missteps such as the ban on artificial fertilizers, the result, an agricultural crisis, and industry that employs a particularly large number of people in sri lanka. mary allianz has spent more than half of her life plucking leaves on this deity. after her husband died, she became the sole bread winner for her family. but she's barely making ends meet, anglican undergo, like, you know, of the income we get is not enough to cover our expenses. this is the only work we do. we have no other work there. mary is one of the houses who work on privately own plantations,
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spread across the healey country side of central felucca. d is one of the areas most exported commodities, making the industry vital for the she, lunk, on economy accounting for $1300000000.00 annually. with the country deep in financial crunch, the industry 2 has hit a rough batch. the severe shortage of fuel and long power cuts had affected the industrial daily operations, including processing production and transportation. dylan potty, ronnie, the regional general manager of this estate fears that the effects will soon be felt by the workers run slipper gerberg. robert productive to get defected. the bucket, da da, da, da da. the workers are going to get different w. i do not get that regard number of work in dis, no, no at present be alpha in them 6, there's about adames's over and is about we will be compelled to cut down. deborah about global afford is to be cancelled. so they didn't believe that gumbo will
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below the problems for the t industry and for agriculture as a whole started before the current economic look last year in a highly controversial move the she lankin government bank, the use an import of chemical fertilizers overnight in a bit to become the 4th country in the world to fully adopt organic farming. while the band was later reverse after protest, the crop yield was already effected. this faulty policy decision by the government led to a significant dropping production and export of the the current crisis further does not bode well for the, for mary is concerned about what might happen if the situation was since, can go under 30 and to get that. but if we lose our jobs because of the issues in the country and we're unable to find any other employment, we will have to stay home. if so we won't have anything to eat. and we won't be able to look into any of our new gerry lane going to go, but the good laddie, ha livelihood. and that of houses depends on the dia,
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states. many of which are looking at duff dines, make mo, joins us from the international st. if a tax and development mikka direction the i m f is going to step in in this case, and will it step in, in time before the economy disintegrates? it seems almost certain that it will step in. we are actually very close to an agreement between the government of sir lanka and the i m f. but the time scale is really emboldened to we're still talking olva weeks or 2 or 3 months maybe. and in the meantime, the government says sit on acute crisis, as you said, of the export revenue at the moment probably covers about half of the minimum in port needs for the basics, like fuel and food and medicines. so there is an acute gap here that has to
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be filled somehow in the next few weeks. what are your suggestions? house re lanka? going to fill that gap where we're talking about an enormous task. normally we are, i mean most official organizations take very understandable view that they cannot release any new money to us for lanka until there is an agreement in place with the i m f. i understand that. so the government is currently living mainly on credits from the government of india. and we don't know how long the government of india is going to be willing to do that. whether other governments in the region, including china, i going to step in with short term assistance. so it's very much up in the air of the moment. and it seems to put re lanka from what you're saying in a precarious situation. as far as a global alliances go in and, and regional tensions to yes, i mean sure, lanka has been at the center of quite
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a lot of talking between china, india and the united states in particular. and the, an agreement with the i m f is actually gonna depend on all those 3 countries and various others agreeing on the rescheduling all the money, the char lanka owes to them. so, you know, with this is a very precarious situation, but i hope that none of those 3 parties is going to be so irresponsible as to block an agreement with the i m f. because if there is no agreement with a i m f for them, we have disaster so much at stake and so little time make more from the international senate attacks development on the economic crisis in sri lanka. thank you very much for your input. thank you. thank you. in the united kingdom, brits and fans of the monarchy you're celebrating queen elizabeth's platinum
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jubilee. and as is tradition brands across the u. k, hoping to capitalize on the event. it's not just souvenirs, but from salad dressing to ma might plenty of food, brand stores and sigma groups of being that breads will put aside their cost of living worries for a few days to celebrate sainsburys to celebrate sainsbury, supermarket group report, sales, full baking staples, like flour eggs and i think sugar up 30 percent away. troy supermarket says savory pastry in rose, wine sales a both up by double digits or it's a here. it's working one pathway. i stay busy with it for like ah, with
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life on the front line here. there hitch with grenades every day in the small ukrainian town of new york. 3 quarters of the inhabitants have fled.
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but some of giving up their homes. no, their hope for peace. focus on europe. in 30 minutes on d. w. o . green. do you feel worried about the planet we to i'm mil, host of on the green sense and to me it's clear we need to change the solutions are out there. join me for deep dive into the green transformation for me to do with it's not a question of whether the next crisis will come in,
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but only when and how the media will deal with it. how can we stay focused on what is important? shaking tomorrow now exploring opportunities for media professionals in times of crisis. the global media for june 2020 to your ticket now with welcome to the dark side where intelligence agencies are pulling the strings. there was a before 911 and an after 911. he says, after $911.00, the clubs came off. where organized crime rules were conglomerates make their own laws? work through what's big. it doesn't matter. the only criteria is walked. we'll hook people. we shed light on the opaque world. who's behind the
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benefits. and why are they a threat to us all opaque worlds this week on d, w? ah ah ah, this is the w y from berlin, ukraine's president says a 5th for the country is now under russian control law to me as the landscape comments covers, the west promises more weapons to cave and russian forces edge close to capturing the key east and city of severe done yet also on the program. we.


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