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tv   World Business Report  BBC News  July 27, 2021 5:30am-6:01am BST

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this is bbc news with the latest business headlines for viewers in the uk and around the world. tesla hits the accelerator on its electric dreams, as the carmaker delivers a record 200,000 cars to customers in the second quarter. more volatility for bitcoin, after amazon issues a statement denying it will be accepting the cryptocurrency as payment after it surges to a six—week high. and we're off to the races! glorious goodwood returns with a full capacity crowd, we take a look at some of the hurdles the horse racing industry has faced over the past year.
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let's start with tesla, because the electric carmaker has shown no signs of being hitting by the pandemic blues. tesla reported it sales rose to $12 billion for the three months to the end ofjune, up from $6 billion a year ago. despite shortages of semiconductor chips and congestion at ports hampering production, the firm delivered a record 200,000 cars to customers in the quarter. however the firm did make a $23 million loss on its bitcoin investments, although it recently signalled it might accept it again as a payment in future. joining me now is daniel ives, managing director of wedbush securities.
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what do you make of the results? they seem to beat expectations. yes, this is a strong quarter, especially amid the chips shortage. we are seeing a profit. that is the key, showing that green tidal wave thatis showing that green tidal wave that is leading the charge — tesla — causing some tumbles and china. you mentioned china, that is such an important market for all carmakers, but especially those in the electrical vehicle sector. did we get much detail on that from this set of results? yes, that is really the bull thesis and the growth story. i think elon musk talked about china, looks to be strong in the second half of the year. there was positivity. this is really about the china growth
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story, continuing to play out. that is the key with tesla. it was also a feather in the cap for elon musk, looking forward in terms of china. something we talk about a lot on the business programmes is the shortage of semiconductors, the shortage of semiconductors, the essential chips that we use in everything from smart phones and tablets, but also in the cars that need those on—board computers to function. did we learn anything about how that is having an impact on tesla, if at all? yes, as you talk about the whole auto sector, we are seeing some moderation of the chip shortage. every car they are making, they saw the first lot and the first half of the year. this becomes a high—class problem, and now comes down to the second half, they really need to see some of that alleviate to hit target
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numbers. it was interesting, the loss that they made on the cryptocurrency bitcoin, the investments they made, because tesla is such a key combination of a car maker and a tech company. when it bought bitcoin, suggesting it may accept payment and bitcoin for its cars. we have seen it backtrack now, and the losses they have enjoyed. when we go back, tesla was naming more and bitcoin gain than selling all electrical vehicles last year, so there has been a u—turn in terms of bitcoin. there was a $23 million write—down. less than the industry was expecting, but this has become a sideshow for telfer. it has been an overhang and the stock. investors will be looking forward to them playing down that a bed and focusing on electric vehicles because that, especially with
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competition across the board, thatis competition across the board, that is the key and tesla's story. daniel ives from wedbush securities, thank you. on cue. germany has listed spain as a "high—incidence area," due to concerns about a spike in covid infections. so from today most people arriving back into germany who aren't fully vaccinated will have to go into quarantine. could it have a negative effect on future bookings in spain at a delicate time for europe's travel sector? joining me now is eric dresin, secretary general, the european travel agents�* and tour 0perators�* associations. what do you make of this move by germany? is it going to hit spain hard or not as much question mark good morning, yes, this is a sad decision, if i may say it like that. there is already about 200, 200
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50,000 german people in spain today, so, first of all, this is a key issue for them to consider how they can travel back. of course, you have a lot of people who have planned their holidays for spain, and, for sure, there will be changes in their plans. maybe not massively, depending if they are fully vaccinated, but for sure people will reconsider their destination. in terms of bookings, are you seeing that people are reluctant to go to destinations like spain, for example, if it involves having to quarantine on return, or does the fact that fully vaccinated people don't have to quarantine — does that encourage people to go ahead anyway? vaccination anyway, fully vaccinated people can travel safely and easily, i would say,
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considering the context in europe. your question is very difficult, because you just point out the issue of the fragmented issue of the states and the european union on travel restrictions. you see that there is a increase in bookings, very recently, in june and july, and people want to travel, so they are trying to travel, so they are trying to find out the best destination, and looking at some health indicators to make that decision, on top of prices and interest. but it is difficult to say exactly who is going work because all the countries — each country has its own travel restrictions, so that'll be important you, let's say, look at all the parameters before making a choice.
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when it comes to the rules, you mentioned the fragmented decision—making. how is the travel industry responding, because often these decisions are made by individual states in europe or outside europe, for example in the uk, and sometimes it can be short notice. yes, that is the worst case scenario for the whole industry, notjust the industry, not just the individual industry, notjust the individual members and tour operators. the whole industry is demanding from members, co—ordination. that is the most important thing. there is an increase in bookings, in destination, and depending on restrictions of member states. you have a european map which is very popular in the present europe, but this is not the one used by the member states to apply their own restrictions, so the demand is there. people
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want to travel. they are booking. but, let's say, that decision — it is difficult to say which decision is the most popular. thank you, that was eric dresin from european travel agents�* and tour 0perators�* associations. surging demand for uk houses will last well into 2022 as buyers continue to look for more room after being cooped up during the pandemic, says property website zoopla. a search for space has pushed up the average price of a house by 7.3 per cent over the past year, reaching a new high of 230,000 pounds. the department store chain selfridges group has been put up for sale by canada�*s weston family for four billion pounds according to several media reports. credit suisse has been appointed to start looking for a buyer. selfridges cut a50 jobs a year ago after sales slumped
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during england�*s nationwide lockdown. jeff bezos has offered to cover $2 billion of nasa costs in order to be reconsidered for a key contract to build a moon landing vehicle. in april, the space agency awarded the 2.9 billion contract to elon musk, rejecting a bid from bezos�* company blue 0rigin. 3,000 car workers at the honda plant in swindon have begun their last week at work. the japanese car maker has been a vital part of the area�*s economy for 35 years, but this week the last car will roll off the line. and that will be that. it�*s a huge week for all involved, as our business correspondent dave harvey reports. when they announced it, it was
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just like my wild collapse. —— wild collapse. i thought i had — —— wild collapse. i thought i had just— —— wild collapse. i thought i had just got my foot on the ladden _ ladder. it - ladder. it has been a long ladder. — it has been a long year for thousand of honda workers trying to find work. midway through apprenticeships they have now been taken on by a new firm working on cutting—edge recycling machines, eager to snap up staff with the honda track record. the guys are really great, enthusiastic, always willing to dive in, be hands—on. it is completely different to honda _ it is completely different to honda. for example, iwas it is completely different to honda. for example, i was at the university of birmingham setting — the university of birmingham setting up a research rig. it must a _ setting up a research rig. it isjust a completely setting up a research rig. it is just a completely different job~ — is just a completely different m i — isjust a completely different “ob. . isjust a completely different 'ob. . . , isjust a completely different “ob. . . , , isjust a completely different “ob. . ., , , ., job. i am in a better place now than i was- _ job. i am in a better place now than i was. the _ job. i am in a better place now than i was. the promise - job. i am in a better place now than i was. the promise of - than i was. the promise of further_ than i was. the promise of furthertraining, _ than i was. the promise of furthertraining, and- than i was. the promise of further training, and evenl further training, and even agri-— further training, and even agri- level_ further training, and even agri— level qualifications, | further training, and evenl agri— level qualifications, i am — agri— level qualifications, i am really— agri— level qualifications, i am really happy, - agri— level qualifications, i| am really happy, honestly. for the _ am really happy, honestly. for the other— am really happy, honestly. for the other 3000 - am really happy, honestly. | for the other 3000 workers am really happy, honestly. . for the other 3000 workers in this vast factory, their fortunes late with the union,
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negotiating redundancy packages to keep them going while they look for work. it to keep them going while they look for work.— look for work. it equates to about 6-5 _ look for work. it equates to about 6.5 weeks _ look for work. it equates to about 6.5 weeks for- look for work. it equates to about 6.5 weeks for every i look for work. it equates to . about 6.5 weeks for every year serve. it is uncapped unlike the statutory minimum, and there are additional bonuses wrapped up in that, so they the walk out with lucrative redundancy packages. soon, thousands of ex— co—workers will be here looking for work. the biggest challenge for these guys will be their salary expectations. a production operative worked for them at over £20 an hour. you are probably realistically looking at minimum wage to about £10 per hour. forjim, a bright future, but for others, they are searching for others, they are searching forjobs. bitcoin�*s price surged again monday after speculation that amazon may be entering the cryptocurrency sector after it posted a job seeking a "digital currency and blockchain product lead". bitcoin was trading
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at a six—week high of over 40,000 until the online retail giant squashed rumours that it would accept the cryptocurreny as a form of payment. so is amazon interested in bitcoin or not? joining me now is dan kemp, who�*s the chief investment officer of morningstar investment management. so what�*s happening here? good morning, you are absolutely right. the cryptocurrency rollercoaster continues with this latest twist that we have had from amazon, firstly, whether that advert overnight, and then at the denial that came as well. i think the first thing to remember as we will see a lot more of these twists and turns in the cryptocurrency story. the reason why this is important for people is because cryptocurrency isn�*t like a
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traditional asset. when you buy a traditional asset than you expect some form of return, whether that be dividends, shareholdings, interest on bonds or property, but of course with cryptocurrency as you don�*t get that stream of returns, and so it is not possible to estimate a real value for assets like a cryptocurrency, and that is why we are seeing these huge swings and the prices. it depends on how people feel about these cryptocurrency is at any given point in time. at some point, they are really enthusiastic, other times they are down in the dumps, and we have seen more examples like that in the past day. with the price, how important is the buying from big firms like amazon and tesla, as i was talking about earlier in the programme. how much of a difference does that make? it makes a huge difference to the sentiment of those involved
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in bitcoin, and it is not really surprising that big companies are looking at cryptocurrency is, but more importantly looking at blockchain, which is the technology behind many of these cryptocurrency is, to see whether there is a future for that type of technology in their own businesses, and even potentially the use of cryptocurrency is. but, of course, for companies like amazon that are retailing, selling goods that they have paid hard currency for, typically, then they are going to need some sort of stability before they can start accepting cryptocurrency, and you don�*t see that much in cryptocurrency, so it is difficult to tell from the outside whether they are more focused on the future of cryptocurrency or just the blockchain that lies behind, but certainly we would expect a lot of lead time and more stability before these companies start using
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cryptocurrency to a greater extent. really interesting topic area that i am sure we will return to before too long. dan kemp, morningstar investment, thank you. stay with us on bbc news, still to come: glorious goodwood returns today with a full capacity crowd, we take a look at some of the hurdles the horse racing industry has faced over the past year. crowd cheers. the us space agency, nasa, has ordered an investigation after confirmation today that astronauts were cleared to fly while drunk. the last foot patrol in south armagh. once an everyday part
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of the soldiers�* lot — drudgery and danger are now no more, after almost four decades. if one is on one's own in in a private house, not doing any harm to anyone, i don't really see why all these people should wander in and say, "you're "doing something wrong". six rare white lion cubs on the prowl at worcester park and already they�*ve been met with a roar of approval from visitors. they are lovely, yeah, really sweet. yeah, they�*re cute. this is bbc world news, the latest headlines: day four at the olympics and the medals keep coming for team great britain, picking up a gold and silver in the men�*s 200 metre freestyle. earlier there was a first ever gold for
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bermuda, flora duffy winning the women�*s triathlon. south korea�*s economy expanded at the fastest annual pace in a decade in the second quarter, boosted by a pick up in private consumption. however a resurgence of covid—19 infections has cast some doubt over the outlook for growth for the rest of the year. joining me now is katie silverfrom our asia business hub of singapore. just talk us through these latest figures we had from korea. ,, latest figures we had from korea. . , ., latest figures we had from korea. . ,., , latest figures we had from korea. ,, , ., latest figures we had from korea, ,, , ., ., korea. sure, so they more or less had — korea. sure, so they more or less had expectations - korea. sure, so they more or less had expectations and - korea. sure, so they more or l less had expectations and what we have heard for the april to june quarter is a growth of almost 6%, a bigjump june quarter is a growth of almost 6%, a big jump from the previous quarter where we saw a 2% growth, but there are a few reasons for this, and one of them is known as the low base effect. able tojune back in 2020, we can remember all the world was on lockdown including south korea, and therefore it came off a very low base but
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there was a big pickup in consumption so confidence, people going out there and spending as well as government expenditure going up, and the fact that economies around the world and our reopening, particularly south korea�*s media trading partners, that�*s when we have seen a big resurgence when it comes to exports and imports. this won�*t come as any surprise to the bank of korea who has previously warned about inflation. we may well see for example south korea become the first asian country to raise interest rates, and that may happen as soon as next month, but there are those fears going forward that you mentioned, particularly when it comes to covid. the country is having its worst outbreak in all of the pandemic and facing his toughest restrictions, and it is likely to really impact consumption and that confidence i mentioned going forward. there is also the ongoing conflict when it comes to the chip shortage, it is a huge exporter but it also needs it in many of its products, so that the likely impact growth going forward and analysts i
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have been speaking to say they have been speaking to say they have been speaking to say they have been cutting the growth forecast despite this 6% turnaround. lavender is nature�*s cure for anxiety and insomnia. it also used to be an economic mainstay for the tiny east european republic of moldova during communist times. now, after thirty years in the doldrums, moldova�*s lavender industry is growing again. it is giving the country some much—needed export earnings, and a new type of tourist attraction.
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glorious goodwood, one of the highlights of the british horse racing calendar is set to start today. it hopes to be one of the first major sporting events to welcome a full capacity crowd back in 2021. but this has been a difficult time for racecourses on a commercial level, the pandemic is thought to have cost racecourses £400 million. joining me now is adam waterworth, who�*s the events managing director for the whole goodwood group. good to have you with us. i�*m sure today is a day you have been anticipating eagerly, looking forward to for some time. it�*s one thing to be able to welcome people back but is that the appetite for people to return to these largest comic large—scale crowd events? there
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does seem to be. 0ur ticket sales since the announcement from the prime minister three weeks ago, our ticket sales have been really strong, and thankfully there does seem to be, yes. thankfully there does seem to be, es. ., .,, thankfully there does seem to be, es. ., ., be, yes. for those attending are watching, _ be, yes. for those attending are watching, will _ be, yes. for those attending are watching, will the - be, yes. for those attending are watching, will the race i are watching, will the race look and feel as it always has done, or will look and feel as it always has done, orwill there look and feel as it always has done, or will there be some differences this time around? i hope so. obviously, there will still be a number of things in place, our way of being careful effectively, so they will still be masks, and inside areas, and i think the way, i will be interested to see the way that people behave in the way people interact on the racecourse, because frankly, ijust interact on the racecourse, because frankly, i just don�*t know, but, ithink because frankly, i just don�*t know, but, i think certainly, once the racing starts, and in terms of those shots of what
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people at home will see, it will look like a fairly normal a good word.— will look like a fairly normal a aood word. ~ ., ., , .,, a good word. what sort of shape as the horse _ a good word. what sort of shape as the horse racing _ a good word. what sort of shape as the horse racing industry - as the horse racing industry in? pandemic on her pandemic the horses have to be looked after, people have to retrieve them, groom them, mark them out, all of that, that does not go away, so they must�*ve been some fairly heavy involved without the income. it some fairly heavy involved without the income.- some fairly heavy involved without the income. it has been very difficult _ without the income. it has been very difficult for _ without the income. it has been very difficult for everyone. - without the income. it has been very difficult for everyone. at i very difficult for everyone. at least with horse racing we were able to get back racing behind closed doors, although we were closed doors, although we were closed down from the middle of march last year to the beginning ofjune. from june last year we have been able to raise behind closed doors of that has kept the prize money levels down for obvious reasons, and for the racecourses, especially the larger ones like goodwood, not having a crowd is obviously a huge impact on our business, but the owners on the trainers and the stable staff, at least there was work. we
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and the stable staff, at least there was work.— and the stable staff, at least there was work. we are raising raidl there was work. we are raising rapidly towards _ there was work. we are raising rapidly towards the _ there was work. we are raising rapidly towards the end - there was work. we are raising rapidly towards the end of - there was work. we are raising rapidly towards the end of our| rapidly towards the end of our programme so we have to ended there, but thank you for speaking to us. think you were watching, i will be back with the headlines in just watching, i will be back with the headlines injust a watching, i will be back with the headlines in just a few minutes. see you soon. hello. the forecast for the next few days is looking quite turbulent and at times very wet indeed, with some torrential, heavy, thundery downpours, albeit with some sunny spells in between. now, let�*s take a look at the recent satellite picture because you can see all of these areas of cloud just rotating around, circulating on top of the uk, and this pattern continues with low pressure firmly in charge. close to the centre of the low, particularly, we are going to see some really intense downpours and thunderstorms popping up during tuesday. so, some cloud and some showery rain from the word go across western and southern parts, a bit more sunshine further east. but through the day, the showers will pop up quite widely, and some of them will be very heavy and thundery, especially across parts of north wales, the north midlands, northern
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england and scotland. and with very light winds, those showers will be very slow—moving, so in one or two places, we could see an awful lot of rain, giving rise to localised flash flooding. temperatures not doing too badly in the sunshine between the showers, as high as 23—24 degrees. some of those big showers and storms will rumble on through tuesday evening into the early hours of wednesday, and we start to see some more persistent rain developing across parts of scotland. so, low pressure still very much with us for the middle part of the week. in the centre of the low, an area of rainfall is going to become very slow—moving across scotland, so that could well cause some flooding issues. see, the rain will just continue here throughout the day. for northern ireland, england and wales, it�*s sunshine and showers again, some of the showers heavy and thundery. some really squally, gusty winds, but the winds generally will be a bit stronger on wednesday. so, at least that means the showers, where they do turn up, should move through a little more quickly. temperatures will be lower on wednesday, though.
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quite cool for the time of year actually, 14—20 degrees. as we move out of wednesday into thursday, the rain across scotland will only slowly pivot and start to move southwards. so, before this rain finishes, some places across scotland could see 100 millimetres or more, hence the potential for flooding. some of that rain drifting southwards into northern ireland and northern england through the day. some sunshine further south, chance of one or two showers, but we could well see another area of wet and blustery weather pushing into the far south west later in the day. and temperature still a little disappointing, 17—21 degrees.
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this is bbc news for viewers in the uk and around the globe. i�*m ben boulus. our top stories... day four at the olympics and the medals keep coming for team gb — they�*ve picked up a gold and silver in the men�*s 200 metres freestyle. earlier, there was a first ever gold for bermuda — flora duffy winning the women�*s triathlon. heavy rain, wind and high waves expected injapan, prompting organisers to bring the surfing finals forward by 2a hours. north and south korea restore a communications hotline following an exchange of letters between the two leaders. and pledging to unite a diverse country — canada�*s first indigenous governor—general is sworn into office.

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