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tv   World Business Report  BBC News  July 23, 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. battling the �*pingdemic�* — uk businesses struggle with staff shortages as hundreds of thousands are told to self—isolate by the nhs app. service unavailable! thousands of major website — from aianb to hsbc — taken offline in a global internet outage. so what went wrong? tight times for tech. the chip shortage could be set to continue as intel warns it still faces supply constraints. life after trump for twitter — the platform sees users and revenues surge, despite calmer times in us politics and the ban on its tweeter in chief.
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plus, crocs rock in lockdown dress—down. why the chunky foam shoes are scoring record sales. we start in the uk where businesses reeling from the pandemic are facing a new challenge — it's being called the �*pindemic�*. hundreds of thousands of workers are being told to self—isolate after being pinged by the nhs covid app which traces the contacts of people who test positive. it has led to staff shortages and in some cases empty supermarket shelves as supply chains are hit. that workers in the food industry would not have to isolate, but could take daily tests instead. our economics editor faisal islam has more. it was meant to be a weaker freedom from the pandemic
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restrictions but last week record number of things, over 600,000 from nhs covid app for instructions to isolate from industries like supermarkets to railways to isolate. businesses are now saying it caused shortages, something causing panic. shortages, something causing anic. , . ., , shortages, something causing anic. ,. ., , ., panic. there is certainly no reason for _ panic. there is certainly no reason for panicking, - panic. there is certainly no reason for panicking, but l panic. there is certainly no l reason for panicking, but the government should be panicking and i think they need to sort this out immediately. we do not have time to waste. we are here to help feed the nation through the pandemic.— the pandemic. after acknowledging - the pandemic. after i acknowledging concern the pandemic. after - acknowledging concern of the pandemic. after _ acknowledging concern of some images of empty shelves, the government stepped in, helping hundreds of supermarket and food market critical sites keep employees working.— food market critical sites keep employees working. what we are announcing _ employees working. what we are announcing is _ employees working. what we are announcing is for _ employees working. what we are announcing is for the _ employees working. what we are announcing is for the top - employees working. what we are announcing is for the top 400 - announcing is for the top 400 sites. — announcing is for the top 400 sites, things like supermarket depots— sites, things like supermarket depots and key food manufacturers, we will change
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the system and enable them to test a _ the system and enable them to test a return to work. someone who — test a return to work. someone who is_ test a return to work. someone who is contacted in future by test — who is contacted in future by test and _ who is contacted in future by test and trace or who is pinged will have — test and trace or who is pinged will have daily testing for seven _ will have daily testing for seven days and able to carry on working. — seven days and able to carry on working, provided that has remained negative. gne working, provided that has remained negative.- working, provided that has remained negative. one of the bi aer remained negative. one of the bigger sopplies _ remained negative. one of the bigger supplies of _ remained negative. one of the bigger supplies of milk - remained negative. one of the bigger supplies of milk to - bigger supplies of milk to hospitals, schools and prisons was even before the announcement keeping pinged who tested negative at work. the industry broadly welcomed the ship today. this is notjust about the impact of the nhs private app reflecting high levels of cases and telling workers to stay at home — — nhs covid app. these sectors most affected are those where there were already labour shortages, for example, of lorries, where tens of thousands of vacancies exist as a result of the combination of the cupboard pandemic and post—brexit employment issues. further disruption has been acknowledged in some petrol
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stations in collection of beans and social care, childcare is another area already suffering from worker shortages. the government also has released a list of 16 sectors from energy to medicines to essential transport where named critical workers could also be exempted from isolation. ben fletcher is executive director of make uk, which represents british manufacturers. welcome and thank you for being with us. how much of an impact is the �*pingdemic�* having on your sector, manufacturing? and your sector, manufacturing? and absolutel your sector, manufacturing? fific absolutely enormous impact. about three quarters of the members we have survey are losing staff to the �*pingdemic�* at the moment and many of them somewhere between 25% and above have lost somewhere between 10% of their workforce and a quarter of the workforce already and given the way we expect this infection rate to rise, with the government predicted we have another six weeks or so before the peak, we
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still feel we are a long way short of the biggest impact yet. this is a problem that will only get worse.- will only get worse. what im act will only get worse. what impact is that _ will only get worse. what impact is that having - will only get worse. what l impact is that having then? will only get worse. what - impact is that having then? a impact is that having then? really substantial impact. manufacturing in the uk covers everything from food and drink, pharmaceuticals, making medicines, ppe, through to car an aviation industries, and parts or power stations and water supply infrastructure, so absolutely integral at the moment. if you are losing that much stuff, a quarter, it is bound to have an impact but one of the real challenges in manufacturing is the specialisms, so you cannot run your production line if you do not have the people who've got the training or the legal qualifications to run certain parts of it, the bits where they are managing toxic chemicals, the bits where they are handling a particularly complex piece of machinery, so you do not need an enormous number of people out of the system before it grinds to a halt. if we are already at the point where 10% of
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manufacturers are stopping production for some point, whether short—term or long—term, then that will stop food getting to supermarkets and stop medicines reaching hospitals and stop the part that we need that run the country from getting to our national infrastructure site. and was seen some in the food supply chain being exempted, have you had conversations with the government about manufacturing being included? talking to them on a daily basis are made the point that this is a step in the right direction but as always, what of the challenges is the complexity of the supply chain. this is a really good move and acknowledges there is a problem but as we understand it is the people at the top of supermarkets and some other very big food they all rely on parts or raw materials coming in from a very long supply chain and we are well short of everyone who needs the kind of relief we're talking about, getting it. what are saying to government is many thanks and good step in the right direction but what we actually
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need is to move away from in august, the deadline of august 16, when we will stop requiring people who have had two jabs to self isolate and we think we can bring that forward and that will make a huge, huge impact. it was still require people to have a covid test but i think that would maintain confidence in the system and maintain a high degree of public compliance and certainly seems much more logical in a situation now where you have had two jabs and get pinged you have to isolate words at the moment we are seeing 18 —year—olds go to nightclubs and have a great time and many of those people have not been vaccinated at all. i think workers are looking at that and it doesn't make sense to them and they listen confidence in the system and that's why i was saying to the government all the time, this is great but the size of the problem is huge and will get better and will be much more sensible to scrap the august 60 deadline and if you've had two jabs are ready and get pinged and have a positive test you should be able to get on with working ——
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august 16. able to get on with working —— august16. in able to get on with working -- august iii-— able to get on with working -- august 1&— august 16. in the next few months. _ august 16. in the next few months, cases _ august 16. in the next few months, cases going - august 16. in the next few months, cases going up, | august 16. in the next few. months, cases going up, how concerned are you or prepared as a manufacturing sector for a possible lockdown, should it come our way again? i possible lockdown, should it come our way again?- possible lockdown, should it come our way again? i think we are absolutely _ come our way again? i think we are absolutely are _ come our way again? i think we are absolutely are at _ come our way again? i think we are absolutely are at that - come our way again? i think we are absolutely are at that risk. are absolutely are at that risk and i think most of our members are thinking about that and planning for that. i think this is a double whammy. manufacturing stayed open for most of the previous lockdown periods and considered a christendom industry and one of the reasons why we think the government should be thinking about the risks now. what we were able to do throughout the peaks last year and early this year was operational because manufacturers were able to and got comfortable and confident employing covid—safe practices in the workplace and what we did not see that we did see in other countries was really big outbreaks around factories and food production plants so i think we are ready for that.
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the real challenge however is that if we get to that point after another few weeks where we have had to self isolate, manufacturing will be in a very different position to where it was in march last year and trying to keep operating from a position of real weakness where many staff were already out of the workforce where actually we make the changes now, firms will be able to build up stockpiles and to cope with that, the pharmaceutical industry and medical industry can create buffers of ppe and medicines and so on and if we find ourselves in a situation where we keep the august 60 deadline and we get to that point and lost significantly more workers from the workforce and more production is lost, and more production is lost, and then we go to further lockdown, very speculative and i'm suggesting it will happen but could happen but if it were to happen, i think manufacturing would be reacting from a position of weakness rather than strength —— august
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steen. —— "16. thousands of major websites, from airbnb to hsbc, to the playstation network, were knocked offline on thursday in a huge global internet outage. people around the world reported receiving dns or domain name system errors when trying to access sites. here's the bbc�*s tech reporterjames clayton in san francisco. companies websites go down all the time but what was different he was just how many massive companies and their platforms or went down and exactly the same time, talking about the ups, hsbc, airbnb, the list went on and on and what happened was essentially a dns, a domain name system, run by a company called alkali and their system went down and as a result of that, also went down —— akamai. result of that, also went down -- akamai— result of that, also went down -- akamai. this is the problem when you _ -- akamai. this is the problem when you have _ -- akamai. this is the problem when you have the _ -- akamai. this is the problem when you have the supply - when you have the supply chains, all of these websites integrated with another country company and when one goes down
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they all go down and there is suspicion of hacking but akamai says that is not the case. they are not sure what happened but certainly for 30 minutes, one hour, the major company websites went totally off—line. let's stay with technology because the global shortage of computer chips could be set to continue. chipmaking giant intel has warned it still faces supply chain constraints on materials and equipment — despite reporting better than expected results for the past three months. the ceo told reuters they are helping suppliers build factories as fast as they can but it could take a couple of years to catch up. demand for chips has soared during lockdown, with more of us using computers and devices for work and entertainment at home. carolina milanesi is president and principal analyst at ccreative strategies in sanjose, california. thank you forjoining us. how is intel faring against its rivals like samsung?
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rivals like samsung ? second—quarter rivals like samsung? second—quarter results were very strong for intel and the last thing we saw in the evaluation was really about the future and the fact that as you were reporting, the ceo is still cautioning about 20 two 03 and q4. still cautioning about 20 two 03 and 04. that should bottom q3 and 04. that should bottom out in q3 and q4 q3 and 04. that should bottom out in q3 and 04 should be better. therefore because it is quite conservative so we could see an uptick there. what intel is doing that is a little bit different from some of the competitors is that they are becoming a little bit inventive so they are notjust building and investing in the future but they are helping some of their suppliers finishing the job so taking off some of the last depth of the production in—house so their suppliers can go on and supply more products.
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they have also been inventive in response to what the pc maker had done, which is really try and optimise the chips and the components they have in a kind of matchmaking arrangement, if you like, so they can get how they meet the man in both enterprise and consumers. man in both enterprise and consumers— man in both enterprise and consumers. , .., ., ~ consumers. says it could take several years _ consumers. says it could take several years before - consumers. says it could take several years before the - several years before the shortage of chips could be resolved. could that be resolved. could that be resolved anytime soon? i resolved. could that be resolved anytime soon? i do not think so because _ resolved anytime soon? i do not think so because what _ resolved anytime soon? i do not think so because what you - resolved anytime soon? i do not think so because what you are l think so because what you are really addressing is the shortages we i think because of the pandemic, to the point that james is making in the previous report, we are online 24/7 and more and more of what we do requires chips for anything where using today that is connected to the internet and so the demand that we now have in store —based devices that
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need ships to drive anything, from an intelligence mart speak out to a coffee machine that is touched two attached to the internet, these all required ships —— that is attached to the internet. shares of twitter have surged after the social media platform reported better than expected results for the past three months. twitter says it added 7 million news users over the period and revenuesjumped 87% on the same quarter last year to over a billion dollars. some twitter—watchers were predicting a fall in traffic with the end of the us election period and the ban on president trump from the platform. so what's it been doing right? russ mould is investment director at aj bell. it continues to bring new services, have new content partners, with the football
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league, and also the women's national basketball association, so there is content there. overall, people are still, to some degree, stuck at home, looking to go out, stay in touch with the world, and twitter is a way they can do that. the user base grows, and more and more advertisers are interested. i think twitter crossed the $1 billion revenue mark for the first time. billion revenue mark for the first time-— first time. use numbers are growing- — first time. use numbers are growing- at _ first time. use numbers are growing- at a _ first time. use numbers are growing. at a slower - first time. use numbers are growing. at a slower rate i first time. use numbers are i growing. at a slower rate than expected, but revenues have risen a lot more. what is behind it? it is perhaps counterintuitive. twitter going forward with user growth, you do have the new privacy rules, which have come in with regarding the system. you also have a lot of hanging over them from president trump, and you have the ongoing issues with whether there is appropriate monitoring of racial abuse, so there are
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challenges, but they are looking at those user numbers going up, they are looking at that and it is generating some momentum going forwards. is there a surprise trump effect is taking off trump of twitter — it didn't have an impact on revenues? i think the censorship or monitoring won't go away. we have seen issues recently with high—profile sportsmen and women here in the uk. trump was very active on twitter, he has banned, his supporters have taken that quite badly, but there are perhaps a lot of other people who are quite happy he is no longer on that, they can use the side as they want to. thank you for being with us. still to come — sporting honour financial disaster. is it time to rethink how the olympics are held?
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mission control: we see - you coming down the ladder now. neil armstrong: that's one small step for man, | one giant leap for mankind. a catastrophic engine fire 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 that tore apart the state of yugoslavia. but now, a decade later, it's 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. crowd: seven, six, five, four, three... i thousands of households across the country are suspiciously- quiet this lunchtime - as children bury their noses in the final instalment of harry potter. -
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tokyo has recorded its highest number of daily covid cases, with the olympic opening ceremonyjust hours away. new zealand has suspended its quarantine—free travel bubble quara ntine—free travel bubble with quarantine—free travel bubble with australia for at least eight weeks. shares in chinese ride—hailing giant didi slumped by more than 11% in new york on thursday. it comes after a report by bloomberg that regulators in beijing are considering serious penalties for the company. didi made its us stock market debut at the end of last month — but since then it's been under serious pressure. nick marsh is in singapore for us. it looks like things will get worse and worse 41, it was only about three weeks ago that they made their debut on the stock
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exchange, raised 4x4 billion dollars, but a lot has changed since then. in fact, since that debut, shares have tumbled by more than 25%. what was the reason for the fall? it is these reports you mentioned that chinese regulators are planning an even bigger crackdown on the company due to alleged misuse of personal data. we are hearing that acute fine could be on the way, bigger than that $2.8 billion fine that was faced by alibaba earlier and the air. we're also hearing talk of a potential delisting from the stock exchange. these are just reports right now, unconfirmed. didi hasn't made any public but what is real, this big loss and shareprice value, and this general crackdown we are seeing on big tech firms in china. thank you, nick marsh. love them or hate them, and i will keep my opinion to myself, but
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crocs are hot in the fashion stores and on wall street. the maker has said that sales almost doubled in the last three months to a record $614 million. it has also raised its forecast for the rest of the year, the boss because a strong consumer brand desire of crocs. not long ago, crocs were seen as the footwear of chefs, nurses and children, the brand even leaning into the image that the chunky plastic shoes went for everyone, whether marketing slogan — come as you are. look at this advert. ., look at this advert. to me, come as — look at this advert. to me, come as you _ look at this advert. to me, come as you are _ look at this advert. to me, come as you are basically l look at this advert. to me, - come as you are basically means being _ come as you are basically means being authentic to yourself. owning _ being authentic to yourself. owning who you are, understanding... they— understanding... they promote individuality, very much mainstream. the report record sales of $640 million for the last three
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months. that is nearly double this time last year. they see no signs of it slowing down, however the company is facing supply chain disruptions due to covid, and in fact the ceo told analysts that it could lead to temporary closures in vietnam — its key manufacturing location. still, their success has spawned a slew of imitators. now, the company is going after the copycats. retail giant walmart is among the 21 shops being sued by crocs for copyright infringement. they became a wardrobe staple of lockdown outfits, but now that restrictions are easing, is at the end? fashion experts believe the trend for so—called ugly fashion is here to stay, and if you need to prove, just last month a musician wore a pair of gold crocs to the oscars. thank you, michelle. as you
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have been hearing, the olympics opening ceremony takes place in just a few hours time. more controversially, however. tokyo will be the most expensive summer games ever held. even before the pandemic, the costs tripled from original estimates. now, the japanese taxpayer faces a huge estimates. now, the japanese taxpayerfaces a huge bill for an event that hosts no spectators and no foreign fans. doctor alex budzier is from the business school at oxford university. thank you for being with us. how much of a financial head are they facing? the latter part of the question is hard to say. we think that when we are looking at the estimates and actual costs that tokyois estimates and actual costs that tokyo is facing, this could be very well in the range of $30 billion. it is quite a large billion. it is quite a large
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bill to pay for the olympics. could it have been avoided? maybe by not hosting the games, like as the cities that dropped out for the bidding — or the otherfive out for the bidding — or the other five candidates cities that didn't win in 2013 — they certainly avoided that massive head. how much of an issue isn't for the olympics committee that the cost of the games has risen so much over the past decades? and how easy is it for cities to recuperate the monies that they spend? we see it is really hard for the cities to recoup the money that they spend, and c and economic case and hosting. most host cities lose money over these sort of investments, and that really puts the ioc and that really puts the ioc and a hard position. as we can see, the next olympics will be in paris or la because nobody wanted it. just two days ago, brisbane won the hosting of the
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2032 olympics. again, it was the last city standing. it really loses its appeal, nobody wants to go for it, let alone any emerging or developing countries, so i don't think we will ever see, unless the ioc changes drastically, the games a place like brazil. is there a case that the olympic should be held on the repeat cities to prevent wastage? absolutely, absolutely, if you mentioned this 30 billion that tokyois mentioned this 30 billion that tokyo is about to spend, what did they mostly spend it on? facilities and infrastructures. they need to obviously be reused, so remember those horrible pictures from athens and rio when those things fall into disrepair because they are not used. there is really an argument, we think, to spread it out, and make good use of these facilities and reuse them. at the moment... thank you, doctor alex budzier. thank you
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for your thoughts, sorry to cut you. that is all from me. have a great rest of your day. stay safe. the heatwave is coming to an end. it may not feel like it right away because it's been so hot for so long. and in northern ireland on thursday, we beat the all—time high record once again, 31.4 celsius, that's three times in the space of a week that northern ireland has beaten its all—time high temperature record. and the amber warning from the met office of extreme heat is still in force for friday, that's because the temperatures will remain high during the night and during the daytime. you can see through the early hours in some areas, temperatures still around 20 degrees celsius. it is quiet on the weather front and, at least for now, clear skies across many western and southern areas but through the morning and into the afternoon, some coastal towns and cities along the north sea coast, probably staying cloudy,
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fairly cool as well, relatively speaking, with the breeze blowing out of the east and that heat still travelling towards the west, this is where we will have the higher temperatures so once again, 30 degrees is just about possible in northern ireland, high 20s across wales, may be the midlands, look at that, only 24 degrees expected in london. lots of sunshine, the possibility of a thunderstorm during the afternoon and then in the evening, clouds are increasing in the south—west of the country. so friday night, we could see some thunderstorms, and that heralds a really thundery weekend for many of us with slow—moving downpours brought by this area of low pressure on saturday and on sunday. the best of the weather will actually be across scotland and northern ireland, so this is where the sunshine will be. where it's further south, you can see from morning onwards, we've got cloud, outbreaks of rain, some thunderstorms, and remember, these are slow—moving storms, so a lot of rainfall in a relatively small area, in a short space of time, leading to potential flash floods. temperatures quite a bit lower,
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mostly in the low 20s. similar weather expected on sunday, if anything, the storms could be even more severe across some southern and south—eastern areas. again, the best of the weather out towards the north—west. glasgow could be the warm spot, possibly northern ireland as well, around 24 celsius. and the cool weather is expected next week with low pressure close by, bringing fresher conditions. that's it from me.
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good morning. welcome to breakfast with charlie stayt and naga munchetty. our headlines today... thousands of workers in the food supply chain are told they won't need to isolate if they're "pinged" by the nhs covid app. after months of uncertainty and last minute controversy, the opening ceremony of the tokyo olympics takes place later today. while brazil's men are off to a flying start in the olympic football, they thrashed germany 4—2, with a first half—hatrick from everton's richarlison. the search for sarm heslop. the parents of a missing british woman last seen on a yacht in the carribean urge her boyfriend to contact police.

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