tv World Business Report BBC News July 8, 2021 5:30am-6:01am BST
this is bbc news with the latest headlines for viewers in the uk and around the world. double shot in the arm for the travel trade, as the uk prepares to ease quarantine rules for people who are fully vaccinated $50 billion custody deal. the gates foundation reveals plans to safeguard its future after bill and melinda's divorce record closes on wall street as america's central bank shows it's in no hurry to taper off stimulus measures. charging into battle. the owner of peugeot and fiat is the latest car giant to commit to an electric future. but can they compete with a growing line up of new rivals?
we start with the travel industry. it's anticipating a much needed �*shot in the arm' later today, in the form of an easing of uk travel restrictions for people who are fully vaccinated. it's expected that from july 19th, uk citizens who've had both doses will be exempt from quarantine when returning from countries on the �*amber�* list. if confirmed it would effectively open up most of europe for travel in time for the school summer holidays. paul charles is a former communications director of virgin atlantic and eurostar, he now runs the travel consultancy the pc agency. welcome to you, thank you for being with us. what are you expecting from today's government announcement? this would be a _ government announcement? this would be a major— government announcement? ti 3 would be a major boost for government announcement? ti 1 would be a major boost for the travel sector if the government gives the go—ahead later on today to enabling those who
have been fully vaccinated to go after more than 150 countries which are currently in the amber category on the government's traffic light system, and they're not have to worry about quarantine when they come back, essentially this is the government saying we now have to learn to live with covid, we're going to marry the priorities of health needs and economic urgency that is needed to get the travel sector going again, and of course to reunite the uk with the rest of the world, some of the rest of the world, some of the major shot in the arm. the ma'or shot in the arm. what about the major shot in the arm. what about families _ the major shot in the arm. what about families travelling - the major shot in the arm. what about families travelling with children who of course will not have been vaccinated? i children who of course will not have been vaccinated?- have been vaccinated? i think the government _ have been vaccinated? i think the government is _ have been vaccinated? i think the government is likely - have been vaccinated? i think the government is likely to i have been vaccinated? i thinkl the government is likely to say later that children of those who are fully vaccinated won't have to quarantine either and that in effect signals that family holidays will be able to go—ahead this summer. of course not all travel is about holiday comment about seeing fiancees, family, reuniting people, but what this does is it enables
the busy peak summer holiday season to and that's what the travel industry really 80% of airline crews are on furlough, airline crews are on furlough, a lot of administration staff in the travel sector are on furlough, this should enable the sector to get going again. what about what other country say? we know that germany has opened up to travellers from the uk and a few other countries, but different countries, but different countries will have different rules presumably for people coming from britain?- rules presumably for people coming from britain? there is still a patchwork _ coming from britain? there is still a patchwork of _ coming from britain? there is still a patchwork of measures| still a patchwork of measures all over the world and consumers this summer will have to turn detective, they will have to be sleuths to research what the rules are when you go into another country, certainly as a british citizen, and what the rules the government has in place coming back to the uk, there will still be plenty of testing needed, and while it is important from a health point of view, many people it is also quite expensive if you are a family of four, they can be four to £500 more on the top of
your trip. four to £500 more on the top of yourtrip. so four to £500 more on the top of your trip. so you have to work out what other border controls in place to the destination i'm going as well as of course the testing that is still needed and will be needed on day two in the uk when you come back from an amber country.- from an amber country. thank ou from an amber country. thank you very _ from an amber country. thank you very much _ from an amber country. thank you very much for _ from an amber country. thank you very much for being - from an amber country. thank you very much for being with i from an amber country. thank. you very much for being with us and giving us that update and we will have full details when the government makes the announcement later on today. let's turn now to the world's wealthiest private charity — the $50 billion gates foundation. it has been outlining back—up plans in case its co—chairs — bill and melinda gates — cannot work together in the wake of their divorce. the bbc�*s north america business correspondent michelle fleury in new york has the details. the world was shocked when bill and melinda gates announced their divorce in may but relieved when the pair said they would continue to work together on their charitable foundation. however, splitting up foundation. however, splitting up is often a messy business, and now the pair who often
referred to the gates foundation is therefore the child has said they have reached a custody arrangement of sorts. melinda is now being given the option to resign from her position as co—chair and trustee if the pair is unable to work together after two years of. in such a case she would receive personal resources from her ex—husband for her own charity work. but make no mistake, she made it clear in a statement that for now, she is not going anywhere. she wrote i believe deeply in the foundation's mission, and remain fully committed as co—chair to its work. to support this contingency plan, the foundation said it would recruit new trustees to oversee its work. the high profile couple also announced a new $15 billion donation, the largest contribution since 2000. brings the total endowment to around
$65 billion. this change in governments is expected to strengthen the foundation which has faced additional scrutiny since the couple split. just last month, billionaire investor warren buffett resigned from his role as a trustee. he did not specify why, saying only that his physical participation was in no way needed in the fount —— for the foundation to achieve its goals. let's turn to the us economy now, because shares on wall street have edged up to close at new record highs. that's after minutes from the latest meeting of the federal reserve confirmed the us central bank is in no hurry to start winding down stimulus measures. they said substantial further progress on the economic recovery "was generally seen as not having yet been met". that sent the s&p 500 and nasdaq to new closing highs. anna macdonald is a fund manager at amati global investors.
thank you very much for being with us. what you think is behind these new highs? i with us. what you think is behind these new highs? i think as ou behind these new highs? i think as you said. _ behind these new highs? i think as you said, there _ behind these new highs? i think as you said, there has - behind these new highs? i think as you said, there has been - as you said, there has been some comfort taken by investors that not going to see the fed raising rates anytime soon or withdrawing their quantitative easing stimulus programme, and that has allowed investors to become enthusiastic again. i think also the fed are pointing to the fact that they have not seen sufficient evidence of a true economic recovery at which means that these stocks, particularly tech stocks which have driven up the market so high continue to really look quite attractive because they are growing really fast. interesting, this return to the old big tech favourites which will be good news and comforting to them. will be good news and comfortin: to them. ~ , comforting to them. absolutely, and these evaluations _ comforting to them. absolutely, and these evaluations are - comforting to them. absolutely, and these evaluations are now. and these evaluations are now looking pretty extraordinary, you've got apple at $2.1; trillion, that compares to our
ftse 100 which trillion, that compares to our ftse100 which has a total market capitalisation of about two and a half trillion dollars, so you really are seeing, these are huge companies, and they are yet still delivering the kind of growth that many others with the dream of. the pandemic has been very helpful to them in driving revenues.— been very helpful to them in driving revenues. talking about the minutes — driving revenues. talking about the minutes from _ driving revenues. talking about the minutes from the _ driving revenues. talking about the minutes from the federal l the minutes from the federal reserve meeting, and while they are not showing any indications of turning off the tap, what is that leading to in terms of worries about inflation and when interest rates will go up? there has been a lot of talk about the inflation we are seeing at the moment, is a transitory, is it going to be something thatjust transitory, is it going to be something that just washes through, orwill something that just washes through, or will it become more entrenched? i think you would see it more entrenched if you start sawing significant wage rises and so on, so the federal reserve is very keen to reassure the markets that they are keeping a really good eye on inflation, and they do
something called a dot plot where every member of the fed looks and anticipates where they might see interest rates in years to come, and yes there is some sign they may bring forward interest rate increases to earlier in 2023, but at the moment, there is no immediate sign and that has reassured secretary investors. let's move to the uk economy now, because demand for staff has been surging as lockdown measures are eased. the number of permanentjobs available grew injune at its fastest rate since 1997, according to a report by kpmg and the recruitment and employment confederation. however, most of the 400 recruitment firms polled reported it was getting harder to find skilled candidates. and pay levels have also been increasing rapidly. yael selfin is chief economist at kpmg uk.
which sectors are seeing this rise in demand? 1 which sectors are seeing this rise in demand?— rise in demand? i guess it is really across-the-board, - rise in demand? i guess it is. really across-the-board, with really across—the—board, with some sectors seeing a more significant increase than others, and those include those sectors which were shut or had more restrictions which were lifted recently, especially in the hospitality sector, are finding it harder now to find the stuff that they need to restart fully but then other sectors like logistics, especially when it comes to drivers, they are finding it hard because of the shift and increasing demand for drivers, as well as traditional sectors that we have had like social care is that are still in short supply. care is that are still in short su -l . 1, , care is that are still in short su -l . ., , , , supply. to the figures suggest economic recovery _ supply. to the figures suggest economic recovery could - supply. to the figures suggest economic recovery could be i supply. to the figures suggest i economic recovery could be much faster previously thought? we have had faster previously thought? - have had revised figures for
gdp just recently, have had revised figures for gdpjust recently, and overall we are expecting a very strong summer. the figures that we have so far shows the recovery is going full steam and that is understandable given that we have had all of these restrictions lifted. starting -a is restrictions lifted. starting pay is also _ restrictions lifted. starting pay is also rising. - restrictions lifted. starting pay is also rising. is i restrictions lifted. starting pay is also rising. is that l restrictions lifted. starting pay is also rising. is that a j pay is also rising. is that a temporary phenomenon or more of a long—term trend? that temporary phenomenon or more of a long-term trend?— a long-term trend? that is difficult to _ a long-term trend? that is difficult to tell _ a long-term trend? that is difficult to tell at _ a long-term trend? that is difficult to tell at the i difficult to tell at the moment. given where we are, where we still have quite a lot of workers that haven't come back, either because they went overseas or because they were looking after children all went to higher education, it is possible that in the short to medium term we will get more people on board, obviously we have the furlough scheme which will end in that milanese wage pressures, especially in some sectors. ~ ., ., ., sectors. creek to have you on the programme. _
—— great. the owner of peugeot, citroen and fiat is hosting an event in amsterdam in a few hours time where it will outline its plans to go electric. stellantis, which also owns brands including vauxhall, chrysler, jeep and alfa romeo, is the latest of the car giants to commit to the shift to electric power. but established automakers are being challenged by a growing number of new companies offering electric cars. joining me now is david bailey, professor of business economics at the birmingham business school. he specialises in the auto industry. what do you expect from news about this new plant later on? they spelt out their electrification strategy over the year but not in much detail. investors want to see a lot more detail about the future, about what the electric vehicle lineup will look like, where the batteries will be made, what strategy differences that will be between north america and europe, all sorts of detailed questions about how they will electrify. the big issueis
they will electrify. the big issue is that they either fourth biggest carmaker in world but they are perceived as lagging behind their rivals, and of course new entrants like tesla in electrifying because of that it's stock, it trades at a discount, to the big question is will it be an elevator or will it be a legacy car assembler going forwards? will also be able to meet its own timeframe? it is suggested they want to offer an electrified version of nearly all its models by 2025. is that realistic? i all its models by 2025. is that realistic? ~ ., ., realistic? i think that target is to say that _ realistic? i think that target is to say that they - realistic? i think that target is to say that they will i realistic? i think that target is to say that they will have | is to say that they will have an electrified model in their range, it may be a hybrid version, and we want to see today was exactly what is the timescale, and for which brands. have already indicated that the brands in europe will be going fully electric towards the back end of this decade, it may be slow, pickups in north america for example, they may
go full on electric with the luxury brand that can take the premium. the exact detail of when cars will be electric and when cars will be electric and when they come to market will be the key. d0 when they come to market will be the key-— be the key. do you think the lea be the key. do you think the legacy auto _ be the key. do you think the legacy auto manufacturers l be the key. do you think the i legacy auto manufacturers like this are going to struggle now to catch up with those who are already ahead in the electrical vehicle market?— vehicle market? they already are actually- _ vehicle market? they already are actually. tesla _ vehicle market? they already| are actually. tesla completely changes our view of the electric car. previously we have regarded electric cars as a slow, lumbering, not sexy vehicles and tesla completely change that. you cannot create a car company from scratch and make it profitable, and tesla has shown that you can actually do that. you have lots of investment coming in, tesla has a skyhigh evaluation in terms of its share price, difficult to see how it is justified but important thing is investors are piling into electric technology and these legacy carmakers are not developing a quick enough, they will not
attract that sort of investment, so there is a race on. trainable is the global standard and how cheaply you can make an electric vehicle, and unless car companies like peugeot and others change really quickly, there is no guarantee that they will survive in the long—term. stay with us on bbc news, still to come: lights, camera, action as the cannes film festival returns — is cinema finally back in business? central london has been rocked by a series of terrorist attacks. police say there have been many casualties, and there is growing speculation that al-qaeda was responsible. germany will be the hosts of the 2006 football world cup. they pipped the favourite, south africa, by a single vote. in south africa, the possibility of losing hadn't even been contemplated. celebration parties were cancelled. a man entered the palace i through a downstairs window
and made his way to the queen's private bedroom, then _ he asked her for a cigarette and, on the pretext - for arranging for some to be i bought, summoned a footman on duty who took the man away. cheering and applause. one child, one teacher, one book, and one pen can change the world. education is the only solution. this is bbc world news, the latest headlines: england's the latest headlines: footballers are in their england's footballers are in their first major final in 55 years after beating denmark at wembley. south africa �*s former presidentjacob zuma has handed
himself into so a 15— month term for contempt of court. to india now — it's the world's third biggest consumer of energy, and it has committed to producing a0 per cent of its electricity from non—fossil fuel sources by the end of this decade. investment has been pouring into the country's renewables sector. but financing the shift away from coal and oil is not without its challenges, as nikhil inamdar reports. this man recently installed a rooftop solar plant on his terrace. this is a town. translation: i terrace. this is a town. tuna/mom- terrace. this is a town. translation: ., ,, , translation: i got a subsidy from the government - translation: i got a subsidy from the government for i translation: i got a subsidy from the government for this. j translation: | got a subsidyl from the government for this. i am saving money on my electricity bills. thousands of these solar installations across india's countryside now plugged into an ambitious national plan to move away from electricity powered by fossil fuels. behind these
plans, some of india's biggest companies such as the oil and gas major reliant industries which would establish and enable at least 100 gigawatts of solar energy by 2030. a significant part of this will come from a rooftop solar and decentralised solar installations in our rural areas. india's renewables capacities has more than doubled in the last decade, with the price of solar and wind about 30—a0% cheaper now than a traditional coal. forthe cheaper now than a traditional coal. for the last five years, investment in the sector has exceeded that going into fossil fuel power. but, india has an ambitious target to quadruple its clean energy capacity by 2030, and it needs a mammoth $500 billion to fund the ambitions. not an easy ask. it is about
land availability — that is a major concern for global investors. we need continuous clarity on those areas, it will enable such ambitious targets to be met. there is also no guarantee that the money that has been promised will materialise, such as $100 billion per year that rich nations have pledged to help poorer nations to combat climate change by 2020. it has been a trickle so far from multilaterals. we have seen no line inside for that 100 billion. india still depends on fossil fuels for 80% of its energy needs, and by 2030 it is projected to be the third largest energy consumer, overtaking the european union. if it intends to make a pivot towards a cleaner future, resolving these funding gaps will be crucial notjust for india but for the world.
finally, the cannes film festival got under way this week for its 74th year, after being cancelled in 2020 due to the pandemic. there may be fewer parties and celebrities, but the glamorous gowns and swarms of photographers are back, and the message is that cinema is back in business. elliot grove is a film producer and founder of raindance — the uk's largest independent film festival that also holds events around the world. thank you for being with us. do you think this is a moment that signals that the film industry is back up and running again? ithink is back up and running again? i think so. we have had celebrities walking the red carpet. they need to do some testing before they get into the cinema area, but no masks, even hugging and packs on the cheek. my god, almost like
2019, isn't it? it is, almost a throwback, makes you uncomfortable people touching each other and shaking hands, doesn't it? do you think there are enough new films in there are enough new films in the pipeline to return us to the pipeline to return us to the cinemas? i have been delighted with some of the big films but it is a golden opportunity for filmmakers in europe to make small, independent films because they don't have to compete with the big, big boys. it is a very interesting once in every two generations time to sneak in here with your little stuff, if you have an idea for a movie that you have cobbled together with a few bucks. you could track the attention of the world press on the red carpet at festivals like cannes. cannes has traditionally been focused on our tails are less mainstream films but i have noticed there is a very mainstream film being pushed
here — the fast and furious franchise. do you think this is a longer term shift for places like cannes? cannes is on the beach, one of the most beautiful spots on the mediterranean. they have a beach with a huge outdoor stream and that is where f9 is playing — not in a local private cinema. it is for the locals to enjoy, a little bit of magic from hollywood. how has the past year or 18 months been for you? it has been very difficult because we have been closed. the entertainment and creative industries have been hardest hit because all the theatres and cinemas are close. we at raindance moved everything online. and, as cannes has done this year, even though they are backin this year, even though they are back in prison this year, about half the people have attended this year — or, will attend.
——in person. we have been online. we have had to get used to zoom meetings, skate meetings. it is nice to think that maybe soon we could meet in person and share eyeball to eyeball rather than elbow to elbow. cannes is traditionally a place where big deals can be struck. far fewer people there this year, more meetings done virtually — does this make a difference? (n0 sound) screening giants like netflix. they have been very, very strong about keeping the french cinema alive, which is good, but it has made it very strange because i can't think of anyone
that i know who would just continue their online streaming service like netflix, or whatever, and go to the cinema. it is an interesting dance that the cannes film festival is doing. i think the film industry in general has shrunk ten years down into literally one, because ten years from now... a lot of stuff will be online. what difference will this make? some are releasing films online, within a few days, and also releasing them in the cinema. do you think this will be short—term or long—term? be short—term or long—term ? the be short—term or long—term? the thing that will dictate that it will be money, of course. it looks like that is the way it is going. hollywood would spend all this money, and festivals like cannes spent all of this energy on publicity for the film, and it is yet to be decided whether you will get the big bucks or not.
we must leave it there. we are out of time. thank you for being with us. you can reach me on twitter. had a great day. well, quite a lot of pent—up energy in the atmosphere wednesday afternoon and evening. we had some thunderstorms, some really quite heavy downpours. you can see the showers — that was earlier in the last 10—12 hours or so. and then, towards the end of the day on wednesday, we saw those thunderstorms across some central and eastern areas, and the weather remains quite unsettled over the next few days. i say unsettled for a summer month. a fair bit of cloud out there across the atlantic heading our way, and we'll see further showers developing over the next few days with low pressure in charge of the weather. so, i think a showery day on the way for some of us on thursday, but actually, the showers will be very well—scattered, so that does mean that many of us will miss them altogether. so, the forecast through the early hours shows a lot of dry weather across the uk. temperatures will be around 1a
celsius or so across the south of the country, just a tad fresher in the north, around 11—12. now, the morning will become increasingly sunny right across the uk, but then fairweather clouds will start to develop, and as we head into the afternoon, those fairweather clouds will turn into storms. and some of the downpours really will be very heavy indeed, but as i say, they will be very well—scattered. not too many of them around across much of scotland or northern ireland. maybe across the grampians here, but the showers certainly will be scattered across many areas of england and mostly away from the coasts — so places like western wales should end up having a pretty decent day, for example, in swansea. so, friday's weather forecast shows a very weak area of high pressure over us. that does mean, i think, fewer showers, at least early in the day, but then, come the afternoon, we are expecting 1—2 to develop once again. but particularly across the southwest of the country, there's actually a weak weather front approaching us here, so places like cornwall, maybe the western fringes of wales seeing some showers,
and 1—2 eastern areas, as well. now, the outlook into the weekend remains pretty showery, particularly on saturday across some southern areas of the uk. there's a small area of low pressure heading our way, so that will bring a lot of cloud to places like plymouth or london. sunday, also a chance of some showers, and actually, early next week — my goodness, we've got a low pressure close to us, and that's going to continue to bring further showers.
good morning, welcome to breakfast with naga munchetty and charlie stayt. 0ur headlines today. schmeichel saves, kane is there to follow in! the long wait is over. england's history makers beat denmark, to reach theirfirst major final since 1966. across the country, from pubs to living rooms, to town centres and fanzones, the nation celebrates a famous night for the three lions. it's coming home! yeah! it's