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tv   World Business Report  BBC News  October 4, 2021 5:30am-6:01am BST

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hello again you are with bbc news, my name is sally bundock so let's bring you the top business stories. the chancellor will commit £500 million to a newjob support programmes is the uk grapples with a shortage of skilled workers. opec and its allies meet today to decide on how much oil to release into a red—hot market as prices rise to three year highs. and it shares are suspended in evergrande is the debtladen chinese property giant fails to meet interest payments.
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a warm welcome. let's get down to business and we begin in the uk where the chancellor will commit £500 million, in dollars that 677 million, to a newjob support programmes across the country. during his speech at the conservative party conference later today, rishi sunak will promise to double down on help for the jobs market after covid—19 as he extends devil schemes and set “p extends devil schemes and set up during the pandemic so those will include schemes to help the long—term unemployed, others to encourage employers to take on apprentices and the extension of the so—called kick—start programme which kick—sta rt programme which subsidises kick—start programme which subsidises eligible jobs for young people who are on universal credit. this will be extended by a further three months. let's talk this through now. good morning, duvets. what do you make of this new
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commitment from the chancellor —— jervais. of course it is a big day for him with the speech of the conservative party conference.— of the conservative party conference. looking at the second day _ conference. looking at the second day of— conference. looking at the second day of the - conference. looking at the i second day of the conference and a big opportunity to have a say and i think we are generally looking at the underlying economy, while they have had a good recovery, there is a worry they are beginning to slow and we have seen some distinctly worrying inflationary science which are affecting businesses and leading to some struggling to supply and alongside we're seeing some far eastern slowdowns as well and if we see a world economy slowing down this is the moment when unemployment may start rising. and the furlough scheme ended at the start of september and we don't know yet how many of those who were on furlough have got jobs those who were on furlough have gotjobs or managed to retain thejobs they had. gotjobs or managed to retain the jobs they had. there are a lot of issues at stake here affecting the jobs market in the uk. affecting the “obs market in the uk. ., �*, ., the uk. that's right, and he has some — the uk. that's right, and he has some schemes - the uk. that's right, and he has some schemes in - the uk. that's right, and he has some schemes in place | the uk. that's right, and he - has some schemes in place which he can extend, the kickstart for example was that up in september last year and has
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only recruited really about 76,000 of the 250,000 he was hoping to recruit so he could extend that and it would boost employment in the short term. the prime minister is at pains to say in the midst of the supply chain problems we have, we need to invest in british workers and he's talking about the fact that the low—paid workers should beget a couple should be getting higher wages, thatis should be getting higher wages, that is what he is saying, and those arguing we're here because of brexit. absolutely and one of the features - because of brexit. absolutely and one of the features of. and one of the features of inflation as it affects those on lower wages malls as we've seen food price inflation coming through and the energy cost going up of course and various shortages in the supply lines all of this is leading to actually daily cost for many of those on the lower wages coming under pressure and i think another feature under pressure and i think anotherfeature which under pressure and i think another feature which the chancellor would like to discuss today is step up in terms of apprentices because they have had the support there but they want to boost that going forward.— but they want to boost that going forward. that is critical for small _ going forward. that is critical for small and _ going forward. that is critical for small and medium-sized| for small and medium—sized companies who said we need the
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kickstart programme to be extended, we need these schemes right now to try and skill up workers where they are desperately needed because so many have left the uk since january. many have left the uk since janua . . �* , january. that's right, the prime minister _ january. that's right, the prime minister was - january. that's right, the | prime minister was talking yesterday about a period of transition and part of it is getting the uk employees to move into roles which actually have been filled by overseas employees in the past to have come to the uk and that is a key feature that they are trying to bring people into the workforce now who can actually support the uk economy on a long—term basis. support the uk economy on a long-term basis.— support the uk economy on a long-term basis. good to see ou, long-term basis. good to see you. have _ long-term basis. good to see you. have a — long-term basis. good to see you, have a good _ long-term basis. good to see you, have a good week. - long-term basis. good to see you, have a good week. more long-term basis. good to see - you, have a good week. more now on the massive leak of financial documents that has exposed the secret wealth and business dealings of hundreds of world leaders, politicians and billionaires. duncan hames is the director of policy at transparency international. this was his reaction. when a political elite enriches itself from being in power, it's the ordinary man and woman who are suffering and whose country is all
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the poorer for it. in some cases, it's not even just about avoiding tax. if you are a public official and you receive a bribe in order to award a healthcare contract to a crony of yours and that isn't the best deal for your country, then your country is suffering as a result of you taking a kickback. so corruption is not a victimless crime — far from it. people who rely on their government to support them in their hour of need are the ones that lose out when their politicians have been furthering their own interests, instead of putting the people first. that is some reaction there and you can read a lot more about the pandora papers on our website so do take a look. bringing you some other business stories now and a former facebook whistleblower responsible for a series of bombshell leaks is revealed her identity. francis hogan, who
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worked as a product manager on the vivid team, was interviewed on sunday on cbs and she said the document prove facebook photos growth over safety. fa ce boo k photos growth over safety. facebook says the links were misleading and loss of a positive research done by the company. trading in shares of the chinese property giant evergrande have been suspended after it was reported to have missed a second key bond interest payment last week. the company has more than $300 billion in debt and is looking increasingly unlikely to be able to pay that back. shares in its evergrande property group were suspended according to the hong kong stock exchange. mariko oi is across this for us. what is the latest. ~ , ., ., ., latest. we 'ust found out that it was the — latest. we just found out that it was the company _ latest. we just found out that | it was the company evergrande which has requested its shares from trading in hong kong because earlier in its statement we did not know who actually requested the trading
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halt and in a statement they say it is because of an announcement containing inside information about a major transaction so not a lot of detail but they are reporting that another property group in china may by 51% stake in the company public property unit which is only on one report of the moment but shares have been stopped from trading in hong kong as well so we will wait for an announcement from the company because despite the fact of the grant has missed payments on some of its bonds, its shares continue to trade in hong kong and investors have been really closely watching even how beijing might step in to avoid the total collapse of the one which would be quite a huge thing in terms of the ripple effect on the rest of the chinese economy and of course ordinary chinese citizens who have bought a property from the company as well. a, ., ~
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property from the company as well. . ~' ,, property from the company as well. . ~' i” ., well. mariko oi, thank you for that, the _ well. mariko oi, thank you for that, the ongoing _ well. mariko oi, thank you for that, the ongoing saga - well. mariko oi, thank you for that, the ongoing saga of - that, the ongoing saga of evergrande in china. the organisation of petroleum exporting countries and its allies, led by russia, known as opec plus, for to review output policy, closely watched as the price of oil has been rising steadily in recent weeks where supply disruptions and recovering demand from the pandemic have pushed up oil, at one point above $80 a barrel. injuly one point above $80 a barrel. in july the one point above $80 a barrel. injuly the group agreed to boost output by 400,000 barrels a day and now it is expected to consider raising production to meet the surge in demand globally. let's discuss this with neil beveridge. good to have you on the programme. what are you expecting from opec plus today? i are you expecting from opec plus today?— plus today? i think we have come to — plus today? i think we have come to with _ plus today? i think we have come to with their- plus today? i think we have | come to with their meetings plus today? i think we have i come to with their meetings is to expect the unexpected so i think there is a range of scenarios that will be considered today but we expect policy to remain essentially unchanged so we think they will
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continue with the increase of 400,000 barrels a day month by month for the next certainly the year but with a very close watching brief on the market as with the oil prices certainly running too far ahead of that critical $80 a barrel mark. many are predicting oil prices will go up and up and you have goldman sachs saying by the end of the year we are looking at $90 a barrel, one organisation i spoke to last week energy aspects say over 100 next year is their projection as well. your thoughts? i is their projection as well. your thoughts?— is their projection as well. your thoughts? i think it goes too far, your thoughts? i think it goes too far. i _ your thoughts? i think it goes too far, i think _ your thoughts? i think it goes too far, i think in _ your thoughts? i think it goes too far, i think in the - your thoughts? i think it goes too far, i think in the short . too far, i think in the short term the additional supply that opec will put onto the market, coupled with the rise in output coming from the us, will mean that i think we have enough supply certainly the short term. on the demand side, we have to look at what is happening in china and you highlighted there the evergrande issue, it's playing up evergrande issue, it's playing up there in china and the slowdown we are starting to see in the economy. we saw chinese oil imports top $2 million a
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day lowered month on month in september and trinder is releasing some oilfrom september and trinder is releasing some oil from its strategic reserve onto the market i think there could be some surprises perhaps on the downside as we come into demand given the slower economic outlook we are experiencing. what about the rise and the price of gas currently which is causing some to shift from gas to oil, increasing demand? that is a treat to oil, increasing demand? that is a great point _ to oil, increasing demand? twat is a great point because on the flip side of this, of course, you do have this gas crisis with gas prices that are over $30 in asia which is the equivalent of $180 a barrel so there is switching up the margin for customers, for industries that can switch from gas into oil but that's a very limited part of the market so it will have some impact on certainly it will support prices to some extent but it only gives enough to counter the slowing that we are seeing over more —— overall in the
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economy. over more -- overall in the economy-— over more -- overall in the econom . ., ~ i. economy. neil, thank you, good to seak economy. neil, thank you, good to speak to _ economy. neil, thank you, good to speak to you. _ economy. neil, thank you, good to speak to you. today, - economy. neil, thank you, good to speak to you. today, as - economy. neil, thank you, good to speak to you. today, as you | to speak to you. today, as you have been hearing already in the programme, we will see many of the restrictions on travel easing in the uk so i move welcomed by the airline industry which is gathering currently in boston in the us for the annual general meeting of the international air transport association or ihpa as it's known. michelle fleury is there, she caught up with the chief willie walsh —— iata. is the great and the good of the aviation world gather here in boston, the industry which was thrown into chaos by covid—19 is struggling to recover. one of the many challenges it faces is the hurdles imposed by governments. earlier i spoke to three director—general willie walsh who told me people are beginning to recognise that the virus is endemic and that governments and his industry must learn to live with it.
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it's really important that we get back to a normal environment. i think people recognise now that this is a virus that is effectively endemic, really there are parts of the world where it isn't, a number, especially in asia, a number, especially in asia, a number of countries have tried to pursue a zero covid approach, although they probably denied that that was the approach they were taking, but i think most countries now recognise that we are going to have to learn to live with this virus. ~ ~ ., , have to learn to live with this virus. ~ _,, ,, have to learn to live with this virus. ~ . . , ,, ., virus. mr walsh was speaking to me is the uk — virus. mr walsh was speaking to me is the uk loosens _ virus. mr walsh was speaking to me is the uk loosens testing - me is the uk loosens testing requirements, something he has been critical of, seeing it as an example of governments not following the science.— following the science. since the 25th of _ following the science. since the 25th of february - following the science. since the 25th of february when l following the science. since - the 25th of february when these changes came into place, we were looking at them today, 7.9 million pcr test have been taken by people flying in to the uk. the positivity rate has been less than 1%, 0.9%. at the same time, the positivity rate in the uk was almost 7%. so
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people have been led to believe that the risk is people flying into the country. the risk was into the country. the risk was in the country. we have been arguing for some time is that people who are being required to undertake expensive, unnecessary testing and that that was certainly going to slow down the recovery. airlines are putting pressure on governments to ease covid restrictions but that is not all they are talking about. there is also the work airlines themselves need to do to ensure their recovery and then, there are the broader challenges that go far beyond the pandemic, such as how to address climate change and sustainability. that is michelle fleury. excuse me as i clear my throat. just saying to you bbc online, there is a lot of explanation and detail on the travel restrictions, how they have changed today and what it means especially for those hoping to get away in the next few weeks. to stay with us. still to come— what happens if the us reaches
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its debt ceiling. no longer cannot pay its bills? we will be finding out. this was a celebration by people who were relishing in theirfreedom. they believe everything's going to be different from now on. they think their country will be respected in the world once more, as it used to be before slobodan milosevic took power. the dalai lama, the exiled spiritual leader of tibet, has won this year's nobel peace prize. as the parade was reaching its climax, two grenades exploded and a group of soldiersjumped from a military truck taking part in the parade and ran towards the president, firing from kalashnikov automatic rifles. after 437 years, the skeleton ribs of henry viii's _ tragic warship emerged. —— after 437 years, - the skeletal ribs of henry viii's tragic warship emerged. but even as divers worked - to buoy her up, the mary rose went through another. heart—stopping drama. i want to be the people's governor. i want to represent everybody.
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i believe in the people of california. you are with bbc news. the top stories: the secret dealings of hundreds of world leaders and billionaires have been exposed in one of the biggest leaks of documents dubbed the pandora papers. new travel rules come into force in the uk with the traffic light system being simplified and replaced by one single list. in the us, congress delayed a vote on a $1 trillion infrastructure plan setting backjoe biden's agenda.
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congress will need to signoff on a separate bill on climate change. the sweeping bill would need to be trimmed from 3.5 trillion dollars perhaps closer to three trillion dollars however they have come no closer to agreement on that figure. congress also faces another pressing deadline, janet yellen has said the us will reach its debt ceiling, the limit on how much the us government can bar on the 18th of dover and it has prompted dire warnings of a catastrophic default on the national debt that can reverberate through the us and impact the global economy. stephen bliss is chief us economist at ts lombard. welcome to the programme. this is an ongoing tussle. we have been here before, where politicians in congress are grappling over how much money
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to spend and then we hit the debt ceiling.— debt ceiling. this is politics. it is somewhat _ debt ceiling. this is politics. it is somewhat ironic, - debt ceiling. this is politics. it is somewhat ironic, if- debt ceiling. this is politics. it is somewhat ironic, if it i debt ceiling. this is politics. it is somewhat ironic, if it isj it is somewhat ironic, if it is the right word, that the republicans do not want to vote to raise the debt ceiling. but they themselves voted for a two—year suspension of the debt ceiling, voted in a large republican tax—cut as well as raising the ceiling account for all the dead raised through the covid packages pass through the trump administration. both sides are equally complicit in the amount of debt. when it comes to raising the debt ceiling, the other party always likes to stick it to the other party to make them be the ones to vote for it and try to attach political consequences to it. at
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attach political consequences to it. �* ., ., , attach political consequences to it. �* ., ,, to it. at the end of the day us will never _ to it. at the end of the day us will never divulge _ to it. at the end of the day us will never divulge on - to it. at the end of the day us will never divulge on its - to it. at the end of the day us will never divulge on its debt. | will never divulge on its debt. they will figure it out somehow evenif they will figure it out somehow even if there is a temporary shutdown scenario? i even if there is a temporary shutdown scenario? i mean, they will ass shutdown scenario? i mean, they will pass continuing _ will pass continuing resolutions so the government will stay open through to early december and as far as the debt is concerned, this is political theatre. i think you can get yourself sucked into the vortex of this theatre which is being played on many different levels at different times. but you can sit back and say, this is what it is and at the last minute the democrats will probably have to be the ones who will have to be the ones who will have to be the ones who will have to vote and signed a reconciliation package to raise the debt ceiling and plans are suspended for two years which will pass by a vote, 51—50 in the senate and a narrow few votes and the house and we move on to the next crisis.—
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on to the next crisis. when it comes to _ on to the next crisis. when it comes to what _ on to the next crisis. when it comes to what the _ on to the next crisis. when it comes to what the joe - on to the next crisis. when it comes to what the joe biden| comes to what thejoe biden administration plans to spend on infrastructure, welfare, education — he has a very long list — what you think he is likely to get at the end of this? i likely to get at the end of this? ., f likely to get at the end of this? ~' j ., ., this? i think they're going to net this? i think they're going to get down — this? i think they're going to get down to _ this? i think they're going to get down to 3 _ this? i think they're going to get down to 3 trillion. - this? i think they're going to get down to 3 trillion. what | this? i think they're going to. get down to 3 trillion. what is going on here is that he is getting pulled by the left of his party and the left of the party demands — in the house — demands this social welfare package be passed before the infrastructure package is passed because if they offer the infrastructure first, they will lose their leveraged to get the social structure pass. they are holding one hostage for the other and he kind of gave them the green light. the
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problem with this politically, in the end, we will get the infrastructure package just like the debt. we will get about eight to trillion dollar social spending package. about eight to trillion dollar socialspending package. —— about eight to trillion dollar social spending package. —— a two trillion dollar spending package. but the problem with what is going on over here, especially byjoe biden being pulled left, in the election in 2020, trump loss but the democrats lost in the house and the senate and they only gained in the senate. they got to a 50-50 in in the senate. they got to a 50—50 in the senate because of the special election in georgia... ii the special election in georgia. . ._ the special election in georgia. . . the special election in georuia... , georgia... if we can get beyond the politics. _ georgia. .. if we can get beyond the politics. if— georgia... if we can get beyond the politics, if you _ georgia... if we can get beyond the politics, if you don't - the politics, if you don't mind, and talk about what impact the $2 trillion spent will have, it is a huge amount of money. what difference will it make? will it achieve the goal of president biden to make
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a difference to those who need it most? , ., ., , , it most? first of all, this is $2 it most? first of all, this is sz trillion _ it most? first of all, this is $2 trillion over— it most? first of all, this is $2 trillion over a _ it most? first of all, this is $2 trillion over a few - it most? first of all, this is| $2 trillion over a few years. on that more important package, the $2 trillion package is about redistributing income in effect from tax—cut in the upper end to benefits to the middle and lower income. at the end of the day, how much of a difference will it take? it doesn't for the people getting the money, obviously, but for the money, obviously, but for the british economy, probably not as much. it is a political argument. underthe argument. under the infrastructure, that argument. underthe infrastructure, that is big deal and it is very important but the impact does not get felt until 2023 because it has to be allocated before you put
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a shovel in the ground.- a shovel in the ground. thank ou for a shovel in the ground. thank you for your _ a shovel in the ground. thank you for your time. _ a shovel in the ground. thank you for your time. now, - a shovel in the ground. thank you for your time. now, he i you foryourtime. now, he first dreamt of being a music star himself but made the switch to management and publishing and has not looked back. ricky blew is a record label honour who signed some of the u.k.'s biggest stars and he has been sharing his ceo secrets. i has been sharing his ceo secrets-— has been sharing his ceo secrets. ., ., , ., has been sharing his ceo secrets. ., ., ., ., secrets. i have always had a very independent _ secrets. i have always had a very independent spirit - secrets. i have always had a - very independent spirit towards a business and with that being said, i have also to be a hunter and gatherer because you ultimately eat what you kill, in my business. (music playing). in this business, it is all about delivering.
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we have a saying which is, where is it? because the excuses will not save you. i didn't do my homework, sorry, my train was late. the delivery of the album, the new exciting artist, the new songwriter et cetera, that is the result you are looking for. we have more on those on our website as well. we were talking about the situation with regards to ever ground, trading in the shares have been suspended. —— evergrande. hobson to acquire 51% of evergrande for more than 50
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billion hong kong dollars, around five billion dollars us according to a report in the global time. we shall have more on the details later when we seek confirmation. hobson offered to buy 1% share in the company. let's look at financial markets big was the evergrande story has had an impact on trading today as well. the price of oil still above $79 a barrel. it will be interesting to see how it trades as the ipaq plus meeting progresses. this — opec. that is the latest business news and
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sport. you are up—to—date. thank you for your company. you can get in touch with me. i am on twitter. as we have mentioned, plenty more details on the stories we have covered online. hello. we're eyeing up another area of low pressure, another spell of wind and rain heading into parts of the uk overnight monday into tuesday. until then, it is showers, not quite as windy for monday. it will still be breezy out there, especially in wales and england. so, on this brisk flow of air coming in from the west, the showers mostly across western areas developing low pressure, though, to the southwest will bring that rain —
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later in the day — that next area of low pressure. starting numbers for monday, showers, some heavy, just running through southeast england and east anglia early on before they're clearing away. then many eastern areas will be largely dry for the rest of the day, just the odd hit and miss shower. a scattering of showers to the west, any where you catch a shower could be heavy, could be some hail mixed in and perhaps the rumble of thunder. rain gathering, though, to the southwest, that next area of low pressure pushing the rain into southwest england and wales. some of this will be heavy on monday evening. then it feeds across the rest of england, and then going into tuesday, it's a question ofjust how far north that rain is going to get. quite a chilly night, though, in scotland and northern ireland, where it stays clear with lighter winds on tuesday morning. so, something to plan for in the detail of where this band of rain is going to come to a halt on tuesday, maybe affecting parts of northern england, but also toward southern and eastern scotland, so we will keep you updated on that. there will be showers elsewhere though much of northwest scotland and northern ireland will avoid the rain from this weather system, it will be a cool day on tuesday and near that rain, there's a chance of gales as well. the area of low pressure will slowly
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move away into the north sea as we go on into wednesday with high pressure building in behind. still breezy across eastern areas with early showers or some spells of rain slowly easing. lighter winds elsewhere with some sunshine around, clouding up again towards northern ireland and parts of scotland later in the day as outbreaks of rain move in on wednesday. now, later in the week, there's a change of weather pattern, if you like, low pressure. this is ex—hurricane sam in the northwest. a trailing weather front, though, will be sitting across parts of scotland and northern ireland thursday into friday with a chance of rain, whereas elsewhere, high pressure is building in. now, all parts will turn milder, but drierfor wales and england, quite a bit of cloud, though, and some mist and fog around.
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good morning, welcome to breakfast with dan walker and sally nugent. our headlines today. the chancellor will set out his vision for the economy amid growing concerns over the squeeze on living standards. as pa rt of as part of it he will announce £500 million forjobs. but how far will that go? a questionnaire were put to him. the first military drivers will start delivering fuel to forecourts — with the south east of england still struggling for supplies. in sport, a moment of magic from mo salah as liverpool and manchester city share the points in a thriller at anfield in the premier league.
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good morning. we are looking

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