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tv   World Business Report  BBC News  July 30, 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. is offline is the new online? amazon's covid boost fades — as people return to shopping in person. shaking off the virus. a solid quarter of growth sees the us economy back to pre—pandemic levels. inside a digital goldmine. what is the true price of bitcoin to the environment? plus, no driving force.
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a shortage of truckers hits uk milk deliveries, the industry calls for urgent action. hello. sorry, i was busy reading my script! we start with amazon — the e—commerce giant has been one of the business world's biggest winners during the pandemic, as people around the world were forced to shop online. but is that boom coming to an end? amazon made sales of a vast $113 billion in the three months to june. but that was less than wall street was expecting. and it's warned of a further slowdown in the coming months. samira hussain reports from new york. amazon is the on line shopping titan but what happens when consumers who have spent most of the last 1.5 years stuck inside are finally allowed to go out shopping in actual physical stores? they do it. that was certainly reflected in
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amazon's quarterly earnings report. the company had a block last year in 2020 is the pandemic forced many to shop on line. but not only did amazon miss investor expectations the revenue in the last three months of this year, it's a forward guide is what the company is expecting the next three months is also lower. to be clear, amazon's revenue was up be clear, amazon's revenue was up 27% and this is the third consecutive quarter in which the company made $100 billion in revenue. but it was still disappointing to wall street. another thorn in the side of amazon is the continuing investigations by federal regulators here in the us were looking at amazon's selling practices, of its own branded goods, and of course its recent acquisition of the storied hollywood studio mgm. frank kochenash is a former amazon executive who now works for wunderman thompson commerce in seattle
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which advises companies on e—commerce. good to see you. thank you. this opportunity presented by the pandemic was a golden one are people like amazon, those already huge in the e—commerce space. have they made the most of it? figs space. have they made the most of it? ~ , space. have they made the most ofit? a ., of it? as you point out, in many ways. _ of it? as you point out, in many ways, amazon - of it? as you point out, in many ways, amazon was | of it? as you point out, in - many ways, amazon was perfectly fitted, the right company, the right place, the right assets and capabilities for what the pandemic presented and they do seem to have capitalised on it very well. as the news report pointed out, we are seeing a re— normalisation of the modernisation and growth rates of on line shopping 16%, but we should record that 02 last year was on line stores up 49%. even on a compound basis, they did not get those gains back. they grew them. but we are seeing a
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renormalisation of that but undoubtably, they've harvested and benefited from consumers shopping on line and creating prime memberships to do that shopping. for prime memberships to do that sho inc. ., ., shopping. for vaccinated communities _ shopping. for vaccinated communities with - shopping. for vaccinated | communities with lucinda shopping. for vaccinated - communities with lucinda locke down rules, right across the world, particularly in europe and the us, there are things that amazon just can't do as well as physical stores, and thatis well as physical stores, and that is going to hurt them. i think that is part of what we are seeing and the difficulty and predict being how consumer behaviour will be normalised. a year ago this time, 02 in 2020, there was a large blocking of consumer shopping on line by necessity. as we work through the pandemic and as conditions normalised, that benefit sales undoubtedly, as we work through
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the pandemic, that shopping is somewhat shifting back, as you know. and in fact, amazon's results in physical stores, and they were up 10%, which is the first time in over a year they showed positive revenue comparables in physical stores so i think we are seeing a renormalisation of that, and that will disproportionately benefit those retailers with larger physical store residences.— larger physical store residences. �* , , residences. it's interesting and easy — residences. it's interesting and easy to _ residences. it's interesting and easy to label - residences. it's interesting and easy to label amazon | residences. it's interesting i and easy to label amazon as residences. it's interesting - and easy to label amazon as a retail business, because of all the parcels that go around the world, but where they are seeing huge amounts of growth, and one thing that is quite different, is what's going on with their cloud business, for example. it's fascinating what's happened and that has not really changed because of the pandemic, has it? it looks
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like it is strengthened. two very positive notes from the investor point of view. the amazon cloud business, aws, which had seen acceleration, with quarterly revenue, up 37% compared to 32% in q1, and the amazon advertising business which is roughly half the size now of the aws business, continues to accelerate. that was up 83%, which is largely advertising, up 83%. these other revenue streams that amazon has developed a mouse showing signs, either continuing or showing signs of rebounding in terms of revenue acceleration. frankly, thank you very much for your time. let's stay in the us
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because wall street shares touched new record highs in thursday's session — after economic data showed the world's biggest economy has now recovered to pre—pandemic levels. us gdp growth hit an annual rate of 6.5% in the three months tojune — slower than economists were expecting. but that has helped reassure investors that the federal reserve won't be in a rush to remove stimulus measures. craig erlam is senior market analyst at foreign exchange brokers 0anda here in london — is this the inflection point in the global pandemic? do you think this is an inflection point in the global pandemic, that would now got the world's biggest economy back where we were before the pandemic? it's not unusual to see the us leading the way in terms of growth, to see them back into positive territories. 0bviously back into positive territories. obviously an encouraging sign. the us like many others face
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challenges in the third and fourth quarters of this year, they are seeing a surge in the delta variant at the moment. that could have an impact on the third and fourth quarter. the fact we're back in positive territory, still far more encouraging signs. i think other countries, we are starting to see similar as well. there is certainly positive signs to come here but we shouldn't expect it to be smooth sailing. and you can see it almost reflected in the gdp data yesterday, softer than we were expect thing, but you can also see the fed is taking, the us central bank is taking a cautious approach to the exit from its emergency era stimulus and this is a wise decision. what choice do they have? do you think they've created a monetary monster here. and financial markets, of which you are a part, they are effectively hook on cheap money. effectively hook on cheap mone . , . ., ., , money. they are, and have been for uuite money. they are, and have been for quite some _ money. they are, and have been for quite some time. _ money. they are, and have been for quite some time. the - money. they are, and have been for quite some time. the risk -
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for quite some time. the risk this week was a tapered tantrum, the idea that if the pet bed starts to pare back its bond buying and mortgage—backed security buying, it could send the market into a little bit of a frenzy. we have become non— central—bank stimulus, but this is nothing new. this is still a repercussion from the global financial crisis and is something we started in the us in follicular —— particular to see less of a reliance on when they were raising interest rates but the pandemic has put us back into the emergency era as far as the markets are concerned and hooked on stimulus, with the stimulus measures, it's always about when it comes to the exit, always about the timing and the pace, and if you can keep the markets on board with that, as the fed has done so far and will continue to do, there shouldn't be much disruption and towards the end of the year, we will start to see them pull away from that, once there is plenty of evidence they are going to do so safely without causing too much disruption from the market perspective but
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also economically. this latest surgeon covid cases is a concern for the fences they will not be in any rush, they want to remain part of the solution. want to remain part of the solution-— solution. we are back on emergency _ solution. we are back on emergency measures, i solution. we are back on i emergency measures, 6.5% growth, that doesn't sound like much of an emergency to me. like i say, this is one quarter of growth it's been very strong. we have started to see this building over the past couple of quarters. we can always go backwards. we are seeing a surge in cases again. if we see people's behaviour changing, see people staying indoors, not wanting to go to restaurants and shop outside, we will start to see that growth slowed dramatically and quickly as we've seen in the past. if more restrictions are imposed, we will see a similar effect. 0ne imposed, we will see a similar effect. one thing central banks have been keen to do is almost
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not flip—flop between providing more stimulus and taking stimulus away, because of conflict in signals to the markets, and people don't know what you're doing one day to the next. the otherflipside is now seeing inflation right now that the argument from the central bank and others is these are temporary inflation measures and it's expected to come down. if that changes, you could see the approach from the federal reserve change quickly. let's turn to bitcoin now. the cryptocurrency has come under increasing scrutiny recently over its impact on the environment. the process of mining bitcoin uses thousands of energy hungry computers — that need a vast amount of electricity. 0ur north america technology reporter, james clayton, has been given rare access to a bitcoin mine in upstate
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new york that has its own gas fired power plant. the arabs plant, greenwich generation, have decided to convert to a gas—fired power station with a twist. convert to a gas-fired power station with a twist.- station with a twist. bitcoin is a type — station with a twist. bitcoin is a type of— station with a twist. bitcoin is a type of currency - station with a twist. bitcoin is a type of currency you i station with a twist. bitcoin | is a type of currency you can mostly buy and sell on line. these thousands of commuters are competing to verify the millions of that coin transmit actions around the world and if they succeed, they will be rewarded with a new bitcoin. 0ne bitcoin is currently worth over £28,000 on these computers need a lot of energy. the unique thing about this plant, it generates activity activity and minds bitcoin �*s. it will actually create the energy and literally, right next to it,
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you have computers using that electricity to make it coin. the amount of energy used to my kneeis the amount of energy used to my knee is whether bitcoin is around the equivalent to a quarter of the uk's annual use of energy. greenwich argues because it uses gas, it's green and bitcoin mines and they've pledged to use a solar energy plants but it still uses carbon dioxide but greenwich says they offset it. we dioxide but greenwich says they offset it. ~ . ' :: :: , dioxide but greenwich says they offsetit.~ . '::::f offset it. we are 10096 carbon neutral. this _ offset it. we are 10096 carbon neutral. this is _ offset it. we are 10096 carbon neutral. this is a _ offset it. we are 10096 carbon neutral. this is a gas - offset it. we are 10096 carbon neutral. this is a gas plant. neutral. this is a gas plant and approximately 50% of the grid is powered by natural gas. whether it's in new york at the rest of the country, this plant does emit carbon. some local politicians are concerned. do you want greenwich to close down? personally, itabsolutely should. it should not be using
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fossil fuel to should. it should not be using fossilfuel to run should. it should not be using fossil fuel to run these computer processors to benefit of you people on wall street, for what? of you people on wall street, forwhat? it's of you people on wall street, for what? it's not worth it. politicians around the world are still trying to work out how to deal with the bitcoin plasma energy consumption. companies like greenwich think they are the future but others think reopening plants like this is a step in the wrong direction. james clayton, bbc news. more ups and downs for chinese ride—hailing company didi. its shares soared in pre—market trading on reports its owners could be planning to buy back its shares and take the company private — just weeks after its turbulent debut on the new york stock exchange. not true, apparently! katie silver is following this in singapore. the shares run an absolute rollercoaster and this was the rollercoaster and this was the rollercoaster they and reflected the rollercoaster since it first listed last month so it's all triggered by this article in the wall street journal which said they were
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considering going private 0rd delisting. they also said it was about trying to compensate some of these investor losses but as you said, about 40% surged in shares and premarket trading but they strongly denied this. in the end, ending the day of, about 11%. this was about 30% of the listing price from last month. you will remember it's one of the biggest listings were seen from china since ali barba in 2014, four $.4 billion. just in the days after we had the chinese authorities were investigating the company and they couldn't register as a result, new users sold themselves on the app store and we are seeing it have this absolute rollercoaster and it is truly continuing. stay with us on bbc news, still to come:
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tough times for the childcare business. but could it mean more men taking up the vocation? cheering. 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 of the soldier's lot, drudgery and danger, now no more after almost four decades. if one is on one's own in a private house, not doing any harm to anyone, i don't see
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why all these people should wander in and say you're doing something wrong. six rare white lion . cubs are on the prowl at worcestershire park and they've been metl with a roar of approval from visitors. - they are lovely and sweet, yeah, cute. this is bbc world news, the latest headlines: tokyo has extended its state of emergency afterjapan suffered emergency after japan suffered a emergency afterjapan suffered a record—breaking 10,000 emergency afterjapan suffered a record—breaking10,000 daily cases. there is increasing concern for the olympics is filling the spark. it is day seven of the olympics. all eyes will turn to the track as the heat of the 100 metres marks the start of the athletics.
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the uk's biggest dairy company, arla, has told the bbc that it failed to make 25% of its deliveries to supermarkets last weekend because it didn't have enough drivers. arla boss ash ameeramardy says bold action is now needed to avoid a summer of disruption. he's been talking to our business correspondent emma simpson. this is the world pass fresh milk dairy, we process over a billion litres of milk from our cooperative farmer owners a year, so you can see this is a vast operation, in fact, one in every five bottles of milk sold in the uk is made here. since the beginning of april, we have experienced driver shortages for being able to take a product from the factory like here in ellsbury to the supermarkets, and that has now
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been increased to such a level now where we are not able to deliver milk to every store that we would like to. can you auanti that we would like to. can you quantify this? _ that we would like to. can you quantify this? normally - that we would like to. can you quantify this? normally we i quantify this? normally we deliver milk _ quantify this? normally we deliver milk to _ quantify this? normally we deliver milk to 2400 - quantify this? normally we | deliver milk to 2400 stores daily, so a very big milkman! unfortunately at the moment, only 10% of the stores every day we cannot deliver to, and at the weekend, it is worth. last saturday, there were 600 stores we could not deliver milk to. . , ., ., ., ~ milk to. that is a lot of milk! it is a milk to. that is a lot of milk! it is a lot _ milk to. that is a lot of milk! it is a lot of— milk to. that is a lot of milk! it is a lot of milk _ milk to. that is a lot of milk! it is a lot of milk and - milk to. that is a lot of milk! it is a lot of milk and it's - it is a lot of milk and it's worrying for customers when they go to shops, notjust milk but an industry into issue, but it's worrying when they go to the store and the shelves are empty. the store and the shelves are em . ~ . the store and the shelves are em . _ ~ ., , ., the store and the shelves are em .~ ., ., , the store and the shelves are em .~ ., ., empty. what you want is a company? _ empty. what you want is a company? is _ empty. what you want is a company? is a _ empty. what you want is a company? is a structural l empty. what you want is a - company? is a structural issue of a shortage _ company? is a structural issue of a shortage of _ company? is a structural issue of a shortage of drivers - company? is a structural issue of a shortage of drivers in - company? is a structural issue of a shortage of drivers in the | of a shortage of drivers in the uk and it needs a structural solution, however, going into the summer with many more holidays coming up, there is a short—term crisis that we need to make sure we do not have food shortages in the summer and therefore we would like to work with the government first to recognise it is a crisis,
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secondly, there is a backlog of tests for hgv drivers, we predict about $30,000 — 30,000 drivers work with us and we want the government to accelerate that testing and we believe that driving should be recognised as a skill shortage and therefore open up temporary visas for the industry to be able to bring european drivers back into the country. finally, we are looking at childcare. it has been put under huge strain by covid with schools closed around the world and parents juggling children and work. but could the pandemic bring about some lasting changes? as many people re—evaluate their careers, a growing number of men are applying to work in childcare, traditionally a female—dominated workplace. brett wigdortz is ceo of tiney, a digital marketplace for child—minding services.
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rate, in your view, rate, in yourview, do rate, in your view, do you think childcare suffers from an image problem? 0h think childcare suffers from an image problem? oh no question it suffers from an image problem, we are trying to bring childminding into the 21st century and the truth is it is a highly skilled profession, these are educators educating young children at the most important part of their life when lots of brain neurons are meeting and fusing and what we are seeing is that great childminders can set up children for life in a great way. your background is very interesting, you break the this is plan for teach first, what did she learn about education inequality and when it starts? visited hundreds of schools in the uk over the last 15 years and saw lots of great teaching and saw lots of great teaching and lower quality teaching and when we started teach first we started in the secondary schools and the goal was to reduce the gap between wealthier and lower income children in secondary schools and after a few years we
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realise we could make a huge difference but the gap starts youngerso difference but the gap starts younger so we started moving into primary schools. in primary schools you realise the gap in education starts even younger. so i teach first we started working with early years and you could see the impact she had with great educators in earlier years and the way we need to think about sitting kids around a desk and teaching maths like that but it's more about teaching them to communicate, play, interact with others in great ways on a visit to many primary schools where young children from different backgrounds were not able to play, communicate, vocalise their needs in different ways that set them up poorly for education. will then it led me to tiney to start childminding in early years and help people start great nurseries in their homes to ensure children can get great education at a younger age. what he think men are starting to wake up to this as a career choice? i5 to wake up to this as a career choice? , . ., ..,
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to wake up to this as a career choice? , . ., .. ., choice? is a great career and what was _ choice? is a great career and what was included _ choice? is a great career and what was included with - choice? is a great career andj what was included with many more men and fathers spending time with children at home. we saw people much more used to a flexible career. some people couldn't wait to get away from home and the kids once things opened up then we had another group of dads and mums who really realised how much they love spending time with small children and educating small children and educating small children and educating small children and being part of the home education. that is a huge number of people out there who realise that covid was an opportunity for them to learn is you skill and post covid we see a huge demand for this skill. ., ., , , skill. huge demand, does this mean prices — skill. huge demand, does this mean prices for _ skill. huge demand, does this mean prices for childcare - skill. huge demand, does this mean prices for childcare willl mean prices for childcare will go mean prices for childcare will 9° up mean prices for childcare will go up because they are already pretty exorbitant according to many parents popular a massive supply constrained market and there is huge demand for childcare but not enough supply. it is one of these koreas were we need more people to do it. one of the problems in earlier years, it is difficult for people in nursery to make a good living. at}!!!
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difficult for people in nursery to make a good living. off when the net to make a good living. off when they get paid — to make a good living. off when they get paid less _ to make a good living. off when they get paid less than - to make a good living. off when they get paid less than a - they get paid less than a minimum wage. and we're trying to make sure they get a better wage and own their own business and they should be treated like professionals. thank you for your insights there. let's see how the asian markets are faring today. the lower down there, the gas crunch sending prices hurtling higher, exacerbated by lower volumes and declining european production and do remember that amazon shares were sharply down on disappointing wall street with their results. they came in at 113 billion dollars. unbelievable amounts of money! us markets, the dow up slightly and dojoin me on twitter. you can reach me on twitter —
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i'm @ v fritz news thank you for your company. we will see you soon. hello there. storm evert is bringing a quite exceptionally windy spell of weather for this time of year across the south of the uk, with a met office amber warning issued for a good part of cornwall and the isles of scilly. it's all because of this area of low pressure, quite a small low, but quite a powerful one tracking its way eastwards, with the strongest winds on the southern flank. you can see the amber warning area here across cornwall into the isles of scilly. those are the wind gusts in the black circles. but the winds also really quite brisk across a good part of devon, dorset, into hampshire, up the bristol channel and across the south coast of wales as well. so, some damage and disruption quite possible as we start the day, and with this curl of wet weather as well, some heavy and potentially thundery bursts of rain at times. 0ur storm tracks its way eastwards across england and wales through the day.
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for northern ireland and scotland, calmer weather, quite a lot of cloud and some showers, some of which could be heavy, but a few sunny spells breaking through as well. stays windy for a good part of the day down towards the south, but those winds will slowly be easing as we head towards the end of the afternoon. temperatures, well, a bit disappointing, really, for this time of year, 17—20 degrees. now, you can see our swirl of low pressure clearing away eastwards as we head through friday night. into the early hours of saturday, fairly large areas of cloud, one or two showers and some clear spells. temperatures between 12—15 degrees as we begin the weekend. so, the remnants of storm evert clearing away eastwards. high pressure trying to build in from the west, but not having much luck. stranded between low pressure and high pressure, we will have a northerly wind through the weekend, and that means it will, generally speaking, be rather cool for the time of year. we will see some spells of sunshine, but also some showers, some
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of which could be quite heavy. quite a lot of cloud, i think, as we start saturday morning. some outbreaks of patchy rain here and there. some sunny spells developing, but some pretty sharp showers, especially down towards the south. could be the odd flash of lightning, the odd rumble of thunder. in the sunniest spots, up to 21—22 degrees. and then as we look ahead to sunday, again quite a lot of cloud, some showers or potentially longer spells of rain, the odd thunderstorm down towards the south later on. we will see some sunny spells, but temperatures quite disappointing, especially in northern scotland. here, just 14—15 degrees.
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this is bbc news for viewers in the uk and around the globe. i'm victoria fritz. our top stories... tokyo extends its state of emergency, afterjapan suffers a record breaking 10,000 daily covid cases. there's increasing concern the olympics is fuelling the spike. ican i can sense getting too used to a state of emergency and it is not stopping people from going out. if the government really wants to stop spread _ the government really wants to stop spread of— the government really wants to stop spread of the virus may have to lock us down _ spread of the virus may have to lock us down and — spread of the virus may have to lock us down and offer financial support. on day 7 of the tokyo 0lympics — all eyes will turn to the track, as the heats for the 100 metres, marks the start of the athletics. australia sends in the troops to enforce sydney's
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stay—at—home restrictions — as covid infections continue to rise.

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