Victoria Craig hosts this Financial Times news briefing covering major developments in European energy markets, US-European diplomatic tensions, and China's upcoming economic planning session.

The episode features Ian Johnston, FT's EU correspondent, discussing Europe's energy vulnerability amid Middle East conflict, and Joe Lei, Beijing Bureau Chief, previewing China's National People's Congress and five-year economic plan.

Key topics include Europe's energy crisis response, disrupted gold trade through Dubai, Trump's criticism of European allies over military cooperation, and China's expected policy shifts including potential inheritance tax and reduced growth targets.

Europe Faces New Energy Crisis from Middle East Conflict

European stocks and bonds sold off as oil prices hit $80 per barrel and natural gas prices nearly doubled due to Iranian attacks on Gulf energy facilities and Strait of Hormuz closure.

Europe imports about 10% of its LNG from Qatar, but global market disruptions caused gas prices to surge 78% in two days - Ian Johnston.

Europe is better positioned than during 2022 Russian invasion due to increased LNG imports from US and Qatar, plus expanded renewable energy capacity.

Gas reserves are very low after cold winter, requiring expensive refilling at current high prices with limited policy options beyond state aid and carbon allowances.

Trump Lashes Out at European Allies Over Military Access

Trump called Spain 'terrible' and ordered Treasury Secretary Scott Besant to 'cut off all dealings with Spain' after Madrid refused US military access to joint facilities for Iran strikes.

UK initially denied US access to Diego Garcia island but reversed course on Sunday, prompting Trump to say 'This is not Winston Churchill that we're dealing with' about PM Keir Starmer.

UK Prime Minister challenged the Iran strikes, stating 'this government does not believe in regime change from the skies.'

Middle East Conflict Disrupts Global Gold Trade

Dubai accounts for 20% of global gold flows and was world's second largest exporter in 2024, but airline disruptions are forcing logistics carriers to handle shipments instead.

Gold typically travels on passenger planes, but airlines are prioritizing perishable goods amid air travel disruptions from the conflict.

Gold prices down more than 4% this week but up nearly 20% year-to-date, with traders warning of increased volatility from longer-term disruption.

China Prepares Economic Targets and Five-Year Plan

National People's Congress convenes tomorrow with expected growth target reduction to 4.5-5% from last year's 'around 5%' - first change in several years acknowledging economic slowdown.

China 'always mysteriously' meets growth targets through economic stimulus and infrastructure investment when falling short, though data reliability questioned by economists - Joe Lei.

15th five-year plan expected to emphasize high-tech development and consumption, addressing lack of domestic demand that created massive trade surplus upsetting trading partners.

Inheritance tax legislation under discussion as demographic decline concentrates wealth from 40 years of growth among fewer next-generation recipients.