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tv   World Business Report  BBC News  July 20, 2021 5:30am-6:01am BST

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this is bbc news with the latest headlines for viewers in the uk and around the world. keep on trucking — the uk's leading manufacturers warns supply chains are on the brink of collapse due to a shortage of hgv drivers. the fear factor is back — the threat of the delta coronavirus variant hits stock markets worldwide. we'll be live to asia for the latest. and a look back with the world's very first space tourist, as amazon founderjeff bezos prepares to head out later today.
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we begin with a crisis on our roads where the lack of hgv drivers is beginning to impact uk manufacturers. supply chains are on the edge of collapse this summer. that's the warning from enginuity — the skills body for the engineering and manufacturing industry. it says a �*perfect storm' consisting of a shortage of hgv drivers in the uk, covid testing delays at uk and european ports, self—isolation and summer holidays are to blame. the haulage industry says it is struggling to find enough drivers to keep the economy moving. ann watson is chief executive of enginuity group. welcome to the programme. how bad is welcome to the programme. how badisit? welcome to the programme. how bad is it? it welcome to the programme. how bad is it? , , bad is it? it is extremely bad. we have the _ bad is it? it is extremely bad. we have the perfect -
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bad is it? it is extremely bad. we have the perfect storm . bad is it? it is extremely bad. we have the perfect storm of| we have the perfect storm of covid and brexit, and currently with regards to h two hgv drivers we have a skills deficit of 100,000. that in order to keep our manufacturing sector moving, ourfood order to keep our manufacturing sector moving, our food and drink supplies, so we are at that point of a perfect storm and we need to do something about it now and we really need the government to step in and support the road haulage sector and the manufacturing sector to put some measures in place to really overcome this quite critical issue.— really overcome this quite critical issue. what measures are ou critical issue. what measures are you looking _ critical issue. what measures are you looking for? - critical issue. what measures are you looking for? i - critical issue. what measures are you looking for? i think i are you looking for? i think there are — are you looking for? i think there are a _ are you looking for? i think there are a number - are you looking for? i think there are a number of - are you looking for? i think - there are a number of immediate measures, it was welcome yesterday from the prime minister, who talked about some essential workers being exempt from self isolation when they get sent the message, but we don't know whether that includes hgv drivers who basically keep the uk moving, so that would be one measure that we would ask the
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government to put in place, we lost 15,000 eu drivers, both as a result of brexit and covid because they returned to the eu, and that's contributed to the skills shortage, so some of the skills shortage, so some of the measures we would like to ask the government to put in place is some short—term visas to allow those drivers to return, and also to put hgv and laurie drivers and the skill shortage list, so it's much easierfor shortage list, so it's much easier for employers shortage list, so it's much easierfor employers to shortage list, so it's much easier for employers to be able to recruit drivers from overseas, but of course we also have to do is to create our own talents, even with those measures in place, we will still have a huge skills gap so we need to do more to allow uk employees and workers to retrain or to move into hgv driving as a career, and some of that is about the testing regime, 30,000 tests last year were put on hold because of the pandemic and social distancing,
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so we really need to be able to accelerate those testing, and make it a lot more attractive, some people want to come into the sector and become hgv drivers, because i think like last year when we saw those employees who stuck ourselves and keep our retail sector going, what we're finding out now is that those laurie drivers are essential workers. we're going to have to leave it there but clearly many challenges across the board. asian markets opened sharply lower this morning. let's take a look. the main market down by nearly 8%, the hong kong a similar story. much of this is due to what happened on wall street the night before where we saw stocks falling significantly on monday because of fears of faster spreading delta variant
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which could derail the global economic recovery. the dow jones is down over 2%, the nasdaq down just 1%. jones is down over 2%, the nasdaq downjust1%. for more, let's hear from our correspondent in new york watching the slide on wall street. ~ ., ,, ., , watching the slide on wall street. ~ ., ,, street. wall street was spooked on monday. _ street. wall street was spooked on monday, worried _ street. wall street was spooked on monday, worried the - street. wall street was spooked on monday, worried the current| on monday, worried the current economic recovery may be derailed by a surge in covid cases around the country. unsurprisingly airlines took a hit with some losing as much as 5% in trading. stocks linked to global economic growth also fell, so companies like boeing, general motors and caterpillar all taking ahead. these big drops in american financial markets came the same day as the us president spoke about the us president spoke about the economy, that its current recovery hinges on more people getting vaccinated.— getting vaccinated. please get vaccinated. — getting vaccinated. please get vaccinated, now. _ getting vaccinated. please get vaccinated, now. it— getting vaccinated. please get vaccinated, now. it works, - getting vaccinated. please get vaccinated, now. it works, it. vaccinated, now. it works, it is safe, _ vaccinated, now. it works, it is safe, ii— vaccinated, now. it works, it is safe, it is _ vaccinated, now. it works, it is safe, it is free, is
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convenient. this virus doesn't have — convenient. this virus doesn't have too— convenient. this virus doesn't have too hold you back any iongen _ have too hold you back any iongen it _ have too hold you back any longer. it doesn't have to hold our economy back any longer, but only— our economy back any longer, but only when we put it behind us is _ but only when we put it behind us is if— but only when we put it behind us is if more americans get vaccinated.— vaccinated. despite the availability _ vaccinated. despite the availability of _ vaccinated. despite the availability of a - vaccinated. despite the availability of a vaccine | availability of a vaccine against the coronavirus, cases of the delta variant of the virus have surged among the unvaccinated in the us. the country is averaging about 30,000 new cases in the last week, that's according to the cdc, the center for disease control, up from an average of 11,000 cases each dayjust a month ago. joining me now is gervais williams, head of equities, premier miton. good to see you. give us your take on what has been going on on the financial markets in the last day or so. it on the financial markets in the last day or 50-— last day or so. it has been 's uuite a last day or so. it has been 's quite a severe _ last day or so. it has been 's quite a severe fallback - last day or so. it has been 's quite a severe fallback but l last day or so. it has been 'si quite a severe fallback but it has been moving up quite nicely
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through the year, so this is just a sort of coarse adjustment rather than anything more serious. you adjustment rather than anything more serious.— more serious. you don't think as i more serious. you don't think as i said _ more serious. you don't think as i said in — more serious. you don't think as i said in my _ more serious. you don't think as i said in my headline, - more serious. you don't think as i said in my headline, the i as i said in my headline, the fearfactor is back as i said in my headline, the fear factor is back in any significant way? just looking at how coronavirus is spreading in many key economies across asia, and the vaccination programme not as prolific there, there is real worry about local lockdowns having to come into place again.— come into place again. that's ri . ht, come into place again. that's riaht, i come into place again. that's right, lthink— come into place again. that's right, i think we _ come into place again. that's right, i think we are - come into place again. that's right, i think we are seeing . right, i think we are seeing the pandemic actually getting a little worse, the are a number of hotspots affecting travel particularly, and we have a really big problem around the world with all sorts of supply, it has been a period when actually, components of little parts of the industry have actually held up the supply of actually held up the supply of a large part of the economy, so thatis a large part of the economy, so that is still very much there but going forward the aim is to actually see the uk and the international markets actually beginning to recover, and it's
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just a slight slowdown that is affecting markets at the moment. affecting markets at the moment-— affecting markets at the moment. , ., affecting markets at the moment. ., ., affecting markets at the moment. , ., ., moment. may be a reason to take some profits _ moment. may be a reason to take some profits because _ moment. may be a reason to take some profits because the - some profits because the markets have been doing so well for so long. we did have the bank of america downgrading its outlook for the us economy in terms of economic growth and we were hearing from the president joe biden to try and reassure everyone that the economic recovery won't be derailed. your thoughts? recovery won't be derailed. yourthoughts? i recovery won't be derailed. your thoughts? i think there is actually, it's a different type of crisis, different to the wanted 2008 and it was a demand crisis, this is a supply crisis. we have not had a problem with global supply in a significant way for 30 or a0 years, so it is quite a different type of crisis, and at the moment the markets are still excited because valuations of things like bonds have been moving up to very high levels, moving up in the last few days, so we have seen very much a period where the asset prices have done pretty well but we still have to address this problem with supply which could be quite a major ongoing issue and certainly the pandemic is not
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making it any easier. when you see a problem with supply, what you mean more specifically about that. i havejust you mean more specifically about that. i have just been speaking about the problems that manufacturers in the uk are facing right now because they can't get hold of goods, as this is supply chain bottleneck rosa. what do you mean when you talk about global supply? mean when you talk about global su -l ? mean when you talk about global su .l ? ., supply? the thing about problems _ supply? the thing about problems with _ supply? the thing about problems with global. supply? the thing about - problems with global supply is you can't inject extra financial stimulus to get beyond it because thatjust injects extra demand. if you have a problem with supply, injecting demand is not going to solve the problem, so this is one way, we are going to find that the economic progress is patchy because we have to get used to the fact that we can only get certain amounts of supply out of the global economy, we can't expect more going forward, so it is quite an uncomfortable crisis in that it will take quite a long time to resolve, it will notjust be a further recovery in a very short term, it will be very slow and quite frustrating through the process. i’m
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slow and quite frustrating through the process. i'm sure many watching _ through the process. i'm sure many watching will _ through the process. i'm sure many watching will agree - through the process. i'm sure| many watching will agree with you on that. good to see you as ever. the spread of the delta variant across asia is a real concern with several countries reinstating lockdown measures. slow vaccine progress is a big frustration. let's go to singapore where nick marsh has more details. tell us what is going on in terms of the vaccination process in some countries. the rollout has _ process in some countries. the rollout has been _ process in some countries. tue: rollout has been quite process in some countries. tte: rollout has been quite slow, especially when you compare it to europe and the united states. you take a country like japan for example, they have only vaccinated 21% of their citizens, fully vaccinated that is, they have the olympic games to host which could cause further headaches if you look at hong kong, they are at 27%, australia only 11% of people fully vaccinated, and is not even mentioning the less
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developed economies like indonesia, thailand, like malaysia, they are all in single figures, so if you are an investor and you are looking at these numbers, is not going to inspire a whole lot of confidence in terms of the economic recovery, but then you also have the problem is you heard earlier of the variance, delta variant among them, i think up until now, a lot of asian countries, especially in east asia, they completely sealed off their borders in order to avoid a health crisis, and you have to say that until now, they more or less succeeded, those long, lengthy lockdowns, economically lengthy knockdown lockdowns, they were more or less avoided but now we're seeing a situation where these variants are creeping regardless. we saw a spike in southern china which affected productivity, there was one yesterday on the burmese china border, malaysia is in a lot of trouble, indonesia is having a fully blown health crisis and
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here in singapore whether vaccination rate is quite good, we are expecting further tightening of restrictions due to one of the biggest spikes since the beginning of the pandemic, so you have this situation where you have a slow vaccine rollout in many countries, variants getting through regardless, and borders closed. is not conducive to an economic recovery.— closed. is not conducive to an economic recovery. thank you very much _ economic recovery. thank you very much indeed _ economic recovery. thank you very much indeed nick- economic recovery. thank you very much indeed nick marsh | economic recovery. thank you i very much indeed nick marsh in singapore with the latest on what is going on in asia. let's get some of the day's other news. the american ice cream brand ben &jerry�*s has said it will end the sale of its products in eastjerusalem and the west bank. the decision has been widely criticised in israel. the company says it will continue to sell ice cream in israel, but it could yet be frozen out if israelis refuse to buy it in protest. a plan to crack down on online rip—offs including making it illegal for people to write or host fake reviews has been outlined by the uk government. the proposals would see bigger fines for firms that trick consumers into spending more than they want to online.
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people attending nightclubs and other venues where large crowds gather in england will need to be fully vaccinated from the end of september, the government says. currently nightclubs and other crowded venues are only encouraged to ask clubbers to show proof of vaccination, a negative test result or immunity. stay with us on bbc news, still to come: a look back with the world's very first space tourist, as amazon founderjeff bezos prepares to head out later today. see you coming down the ladder now. that's one small step for man, one giant leap for mankind. a catastrophic engine fire
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is being blamed tonight for the first crash in the 30 year history of concorde, the world's only supersonic airliner. it was one of the most vivid symbols of the violence and hatred to that tore apart the state of yugoslavia. but now a decade later, it has been painstakingly rebuilt and opens again today. there's been a 50% decrease in sperm quantity, and an increase in malfunctioning sperm unable to swim properly. thousands of households across the country are suspiciously- quiet this lunchtime - as children bury their noses in the final instalment of harry potter. - this is bbc world news, the latest headlines: days before the start of the tokyo 0lympics, more positive covid cases among athletes and officials, with some forced to
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withdraw from the games. a bomb blast in iraq, kills at least thirty—four people in a mainly shia muslim area of baghdad. now to airlines, and in a few hours time easyjet will reveal how it has managed to ride the storm of covid when it releases it's latest earnings. the carriers boss has expressed his exasperation at the confusion concerning uk travel restrictions. easyjet was previously flying high on hopes of an easing of restrictions and a bumper summer with uk tourists desperate to get away. but the recent changes in the governments traffic light system has renewed anxiety with many now opting for a staycation. plus the cost of covid testing is putting many off travelling overseas. joining me now isjohn strickland, airline analyst atjls consulting.
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good morning, first of all, what will easyjet reveal, do you think? how has lost quarter bend? u nfortu nately, unfortunately, a substantial loss for the airline, and normally this is the best quarter of the year — the spring. they didn't expect to find more than 15% than what they actually flew, but it is a tiny minority. some of the problems described there, especially in the uk with the green list, they key markets that easyjet would be serving this time of year like spain, portugal, france, they have been not that green list, so even as we move into peak summer they are not bringing in that revenue. they will be some headaches. it they will be some headaches. it won't look good at all, and the
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outlook for the months ahead is getting gloomier by the day, would you say? with the delta variant rising in the uk, and in other key destinations like spain, france, across europe. absolutely, and even though the green list, which is revised periodically in terms of where uk travellers can go and come back without quarantine, precisely because of that rise and the delta variant here. many countries are requiring quarantine and testing for uk travellers, so this all adds to a great deal of uncertainty. now for the period through to september, the peak. for summer, will be challenging. easyjet has done what it can to cut costs, of course, and has raised significant liquidity, but even then a challenge such small amounts of flights, and the overhead costs is shared
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over a smaller number of customers, so the cost of producing a seat, the revenue earned, that has been impacted. this is the situation it finds itself in. also, after the winter months, even without a pandemic, you would see the airline losing money. it is airline losing money. it is eas jet airline losing money. it is easyjet and _ airline losing money. it is easyjet and a _ airline losing money. it is easyjet and a relatively i airline losing money. it is easyjet and a relatively stable position when you compare it to some rivals? it position when you compare it to some rivals?— some rivals? it is certainly a stronger— some rivals? it is certainly a stronger carrier, _ some rivals? it is certainly a stronger carrier, not - some rivals? it is certainly a | stronger carrier, not because of raising large amount of liquidity. i would say ryanair is one of the strongest in terms of cash reserves, in terms of cash reserves, in terms of cash reserves, in terms of their ability to operate a large number of flights, they have a diverse network, but it is still one of the leading carriers in europe. comparing to those other two carriers, there is a big cost difference. they are still expanding while easyjet is shrinking, they have reduced their fleet size, so that is
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giving another challenge, deciding whether they should fly, deciding whether they should fly, where they should take opportunities available. they have had to do a pinching from peter to pay paul. this is something that ryanair hasn't had to do. thank you, john, good to talk to you. john strickland. amazon founderjeff bezos and his brother mark will be the first passengers on the blue 0rigin new shepard spacecraft when it launches later today. there will be six passengers on this first space tourism flight. the flight will last 10 minutes, when the passengers will experience zero gravity before returning to earth. richard branson, the founder of virgin galactic became the first billionaire astronaut, flying to the edge of space onjuly11, but the new shepard flight will go 13 miles higher. in a moment we'll be looking at the growing market for trips into space. but let's kick off with the very first space tourist dennis tito — here's what he made of his trip
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on a russian rocket 20 years ago. the hardest part was the training. the space plan was easy. i was surprised. ifound out that they might be willing to, for a price, out that they might be willing to, fora price, by out that they might be willing to, for a price, by someone to the space station. i found myself sitting on top of the rocket. we had a few hours late. we were tired because we had to get up early. i think i ended up falling asleep for a few seconds. laughter. you had pencils that were on strings and at the capsule you
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went weightless as soon as you reached orbit and felt the burnout of the engine. the pencil would float in the air and you would know that you were there. it turns out that you go around the earth around once every 90 minutes. a5 minutes, you can look out, see the earth, and i would spend most of that time looking at the earth, taking pictures. can you imagine having eight days being weightless and just being euphoric? i was excited, you know, from beginning to end. here it is 20 years later, and there hasn't been a day that has gone by since then that i did not think of that
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experience.- did not think of that experience. did not think of that exerience. :: , ., , ., did not think of that exerience. :: , ., ., experience. 20 years on, and he thinks about _ experience. 20 years on, and he thinks about it _ experience. 20 years on, and he thinks about it daily. _ experience. 20 years on, and he thinks about it daily. do - experience. 20 years on, and he thinks about it daily. do we - thinks about it daily. do we want to go? joining me now is nick spall, space writer, royal astronomical society fellow and member of the british interplanetary society. a warm welcome to the programme. are you watching with great interest as jeff bezos and his passengers head out to space?— out to space? indeed, it is uuite a out to space? indeed, it is quite a day _ out to space? indeed, it is quite a day and _ out to space? indeed, it is quite a day and it - out to space? indeed, it is quite a day and it follows i out to space? indeed, it is i quite a day and it follows the virgin galactic flight of sir richard branson. he has been trying to go to space for years. a few days ago he managed it with the second spaceship in america. this is the second time, but a very different experience. this is a rocket rather than a space plan. it is all going to be over quite quickly. 11 minutes
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of flight. they will be in space for about three have informed minutes and zero gravity, so for the for people on board, very exciting. —— four people. we havejeff bezos, his brother, wally funk, the pioneer aviator from the pioneer aviatorfrom america the pioneer aviator from america who has always had an ambition to go to space since he was younger, so quite a day. yes, for him in particular, he will realise his dream. realistically, this is only a reality for the superrich, isn't it? at the moment, it is. there is no doubt the prices are very high. virgin galactic has sold about 600 tickets, $250,000, but we are yet to hear what blue 0rigin will charge. 0ne but we are yet to hear what blue 0rigin will charge. one of the tickets is obviously very high — it was a charity cell ticket, talking about millions. in the early days of flying
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backin in the early days of flying back in the 1920s and 1930s — we will see the same and that prices will come down. the spacex have seen a price reductions and their satellites. the technology is gradually becoming reusable and more sustainable. we will see over the next ten years, we will see a reduction. would you be keen? i personally would be, yes, it is not orbit, near space, would be, yes, it is not orbit, nearspace, but would be, yes, it is not orbit, near space, but you can certainly put your astronaut�*s badge on if you make it. the interesting thing is, the definitions are different. the americans regard space as being 50 miles altitude, whereas the international definition is 62 miles, which is 100 kilometres. so there is some aspiring going on betweenjeff bezos and richard branson as to who is going into space, really, but there's no doubt that this will an extraordinary ride. all right. they will have the
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most incredible view. i can imagine. we have to leave it there, but thank you for sharing your thoughts on what is going to be quite an extraordinary day. i hope you have a lovely day, whatever you are up to. see you soon. hello again. monday was another hot and sunny day for the majority of us, but there were a few storms that popped up. one or two affecting sussex and kent, there were a few storms in south wales for a time and there was one in the veil of york but otherwise we have skies like these can be the majority of us having dry, sunny and hot day. and talking of heat, the met office have issued their first extreme heat warning. why now? well, these warnings only started being issued injune and this is just the first hot spell we have seen. but this area, it represents an area of concern to the met office where we could see some impacts from the heat whether that be impacts to health or indeed infrastructure, things like trains might need to go slightly slower due to the tracks heating up
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in this hot weather. that kind of thing. at the moment there's not too much going on, it's a clear start to the day tuesday and of course it has been very warm overnight, those temperatures starting off tuesday morning at around 16 degrees across parts of england and wales. a little bit fresher for scotland and northern ireland. but it's going to be another hot and sunny day. high pressure firmly in charge, however into the afternoon some thunderstorms will break out and i think this is the kind of area we are most likely to see the downpours. they are likely to be bigger storms, so want to hear reports of some localised surface water flooding in one or two of the biggest storms that do pop up. otherwise, it's another hot and sunny one. temperatures widely mid to high 20s, the low 30s in the very hardest parts of the country. and we are used to this, aren't we? after such a hot day those temperatures slow to come down, this is 11 o'clock at night and you can see those temperatures are still up at 23 there in birmingham and london. again, a little bit lower than that for scotland and northern ireland, but still plenty warm enough. now our area of high pressure hangs around to wednesday, the only real change is it reorientation slightly to push that hotter air a little bit further northwards. so one thing you will notice as temperatures tending
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to rise in northern ireland and scotland into more generally the high 20s i think as we go into wednesday. again there could be an odd shower popping outcome of but for the majority it will continue with that dry run of weather with temperatures in the high 20s to low 30s in the hottest areas. beyond that thursday and friday we keep the hot and sunny weather for the most part, there will be a change eventually coming, it looks look at might come through on the weekend. with heavy rain for some.
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good morning, welcome to breakfast with louise minchin and dan walker. 0ur headlines today — no jab, no entry — anger after the prime minister says only people who are fully vaccinated can enter nightclubs and other mass events in england from september. we can't go on like this. theatre is now on its knees. no fairytale ending for cinderella, as self—isolation measures force andrew lloyd webber to cancel opening night. but the show must go on for thousands of businesses struggling with employees instructed to stay home. more than half a million isolation alerts were sent via the nhs app
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in the first week ofjuly alone. as social mixing increases, how many more?

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