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tv   World Business Report  BBC News  October 7, 2021 5:30am-6:01am BST

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so we need to get the people ready in terms of training, incentives, to get the jobs, and we also need to make sure that the jobs that we do have our betterjobs as much as we can. it hello again, this is bbc news, our better “obs as much as we can. ,., , ~ ., our better “obs as much as we can. , ~ ., ., can. it sounds like an ideal time for the top business world, can. it sounds like an ideal world. highly _ can. it sounds like an ideal world, highly skilled - can. it sounds like an ideal i world, highly skilled workers, stories, i am sally bundock. paid well, activity is up that these are problems with been russia promises more gas to grappling for years and years in this country and many would europe as prices surged to a new record. when a $20 trillion argue that a global marketplace overdraft is never enough. no cannot be avoided and, quite often, we want to get our skilled workers elsewhere. if we haven't got them in the uk. pain, no gain, british business must kick its addiction to foreign labour �*s as boris johnson but does this theory it is harder to have access to add up? plus the chips are down a smaller labour force, especially in short—term periods where we don't have but can intel plug the global shortage of semiconductor time to train or to bring in waisea nayacalevu we go inside the new multibillion dollar the right people from the uk. plant in arizona. and also, to be fair, this
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issueis and also, to be fair, this issue is notjust below skill. have shortages of high skill specialist skills in the uk as well. so having access to a smaller labour force doesn't help us here. in so we start with the energy smaller labour force doesn't help us here.— smaller labour force doesn't help us here. in the short-term we have a _ help us here. in the short-term we have a crisis _ help us here. in the short-term crisis following another we have a crisis right _ help us here. in the short-term we have a crisis right now- help us here. in the short-term we have a crisis right now with l we have a crisis right now with regards to lack of workers, chaotic day on your�*s energy markets. the wholesale price of whether it be drivers, working natural gas here in the uk in the farming sector, lots of set is desperately in need. sword almost 14%. just your thoughts on the impact yesterday, wednesday, to a new this is going to have on the uk economy in the short—term? record. it fell back sharply after russia's president putin we've already seen prices going said it was boosting supplies to europe. if we look at the up, it will impact wages, it has been impacting wages, which scale of the surging gas prices isn'tjust a bad thing, we need this year, —— gas prices this to think about how we reward year they are five times higher different people, but it would than usual and this is because demand has taught sword as put downward pressure on output economies emerge from covid and we have seen gdp rising by lock downs. you can send a slightly less than what short space of time, the enormous rise in prices and its economists had expected, partially as a result of that.
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increasing concerns about 0k, yael selfin, thank you for your time as ever, from kpmg. russia's power of your�*s energy supplies as steve rosenberg let's term the subject is a survey of business leaders in the uk has found they are reports. struggling to hire qualified europe is facing an energy crisis. staff, something yaeljust spiking gas prices, touched on so according to the soaring electricity bills. it is a perfect storm. business support from the open university two—thirds of bosses low gas stocks are saying now finding after a cold winter, a shortfall in wind power, and a surging demand recruitment difficult as candidates don't have required as countries emerge from the pandemic. skills. but is part of the problem russia? critics say russia tell us more about your is not supplying europe with as much gas as it findings. could for geopolitical reasons, tell us more about your findings-_ tell us more about your to pressure the eu findings. into using this. russia's new pipeline, nord stream 2. tell us more about your findinus. ,., ., ., , findings. good morning. yes, the research _ findings. good morning. yes, the research highlights - findings. good morning. yes, it bypasses ukraine the research highlights the i the research highlights the real lack of specialist talent and opponents say it will give russia's gazprom across many set is, whether it more power over europe's energy market. is in the nhs, shortage of social workers for local government or as the recent crisis has shown, a lack of gazprom can supply drivers. the 3% of our more gas to europe. but refuses to do that, organisation leaders that we saying that we will do spoke to are struggling to that if you accept recruit the right candidates
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with the right specialist gazprom's terms industry specific skills and almost a quarter believe it it will be finding staff remains of handling nord stream 2. the single best challenge over it's very simple. the single best challenge over the next five years. this is pure blackmail. the government's stance on this is we have to go through this today, president putin painful process, as we heard from borisjohnson in his hit back. it was europe's fault, he said, speech, in order to get to the that prices were ten times end goal of better skilled, higher than last year, because the eu didn't want to sign long—term better paid workers across the uk. your thoughts on the fact that we have to go through a energy contracts. short—term problem to force government and businesses to invest in a future workforce? no wonder the russians are smiling let me just say this issue is at their annual gas forum. they know the eu relies heavily on russian gas exports. notjust recent, we have been britain imports very tracking this since 2017, all little natural the organisations we have been gas from russia but the uk has been talking to have been saying we are facing a skills shortage hit too by the skyrocketing prices the last five years, it is a on the energy markets. russia's position problem. it is a longer term challenge for organisations and is very simple. we've got the gas you need, events like brexit and the we've got a brand—new ongoing pandemic, the furlough pipeline to deliver it,
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scheme further, take this so let's do the deal. picture and actually amplify the issue. the findings here and considering how acute say this is not a small bump in the energy crisis is becoming in europe, that puts russia the road and it is a longer in a very strong position. term issue that has huge and since europe has committed to a greener future, it may, for a time, need more gas challenges for business as coal—fired plants are phased out. leaders. just briefly, have businesses, so long as europe as you say has been a challenge around for time, have they been is using as much energy as it is, so long as it is determined to reach putting on apprenticeships, the climate reduction coming up with training targets that it has set, programmes themselves in order it is hard to see a future to find the skilled work as they need? where europe is not more they have done, and they have dependent on russian energy, particularly russian gas, been doing this for a number of over the next one years now. they are using to two decades. like gazprom's headquarters, europe's tallest building, russia's dominance of the energy homegrown talent and training market is set to continue. steve rosenberg, bbc and developing staff and it is and developing staff and it is a great way of providing a career path to improve staff loyalty, engagement and retention, and attract new news, st petersburg. staff. they have been doing this, and primitives are a great tool as well as other formal things. great tool as well as other formalthings. —— formal things. —— apprenticeships. let's discuss this with stay with us here on bbc news. jonathan robinson, global power food for thought. we hearfrom and energy research director at frost and sullivan, good morning to you. listening to
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the boss. steve rosenberg's report, i recall weeks ago us reporting about the international energy agency saying that russia was this was a celebration by people not supplying as much gas to who were relishing europe as it was before the their freedom. pandemic and needed to supply they believe everything's going to be different more. your thoughts on how the from now on. they think their country russians have played this will be respected in the world once more, as it used to be market? russia has been before slobodan milosevic took power. supplying a lower amount of gas the dalai lama, the exiled than we normally would have spiritual leader of tibet, expected, that is clearly to put some pressure to ensure has won this year's nobel peace prize. as the parade _ was reaching its climax, two grenades exploded and a group of soldiers - that nord stream two is open. jumped from a military truck we had very low levels of wind taking part in the parade - power generation across parts and ran towards the president, of europe meaning we've been firing from — using more gas than expected kalashnikov automatic rifles. after 437 years, and we have also not got in certain countries adequate the skeletal ribs amounts of storage for of henry viii's situations like this so there tragic warship emerged. is a multitude of factors that but even as divers worked to buoy her up, come into play here.- the mary rose went through come into play here. how cuickl come into play here. how quickly could _ come into play here. how quickly could be - come into play here. how quickly could be see - come into play here. how another heart—stopping drama. quickly could be see a - i want to be quickly could be see a turnaround in the sort of the people's governor. i want to represent everybody. supply squeeze, if russia were to pump in more gas? i'm i believe in the people
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fortunately is going to take of california. some time for that to happen, as i say, there are other supply issues that come into play. there is very strong global demand, other gas contracts, lng contracts are being potentially delivered elsewhere in the world, and another big factor will be the you are with bbc news. the top weather over the winter. if we stories. the world health organization approves a vaccine 0rganization approves a vaccine against malaria, which could save the lives of hundreds of see relatively low wind speeds thousands of people across the now that we're more on globe every year. renewables, that will mean we the battle to avoid a shutdown will need more gas than of the us government remains in previously we had and this will a stalemate with no vote show the tight supply situation imminent to write —— raise the continuing. in show the tight supply situation debt ceiling. the world but �*s continuing-— continuing. in this crisis, do ou continuing. in this crisis, do you think — continuing. in this crisis, do you think it _ continuing. in this crisis, do you think it is _ continuing. in this crisis, do you think it is causing - you think it is causing governments across europe to have to rethink energy policy biggest food company nestle has been showing off its latest going forward because as you plant based foods, eggs and say, in the uk for example, shrimp. nestle was here that start—ups we've invested heavily in wind such as beyond meat, in power. we have to look at all sorts of sources, don't we? we launching big and meat substitutes. it is still usually dependent on dairy do, but we are committed to a products. what is it doing to pathway —— pathway of lessen it environmental impact? decarbonisation in many states, a question our business editor simonjack put to nestle.
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we can't really turn our back on renewables and the renewable we have very early on focused penetration will increase. we on greenhouse gas reductions, we have already left carbon need to look _ behind us two years ago, we are penetration will increase. - need to look at ways to growing and our gas goes down. incentivise patients. yes, we on dairy there is exciting 0n dairy there is exciting technology for what is low greenhouse gas emissions dairy, missed look at the balance. so this means food additives that produce me then when cows when you see gas prices going belch, it is a different short—term? it conversation. isn't that the most responsible when you see gas prices going short-term?— short-term? it will stabilise at relatively _ short-term? it will stabilise at relatively high _ short-term? it will stabilise at relatively high levels - short-term? it will stabilise thing to move away from dairy? at relatively high levels of. short-term? it will stabilise | at relatively high levels of so we've seen the big now. it will we have been early champions for dairy and wheat products. take a bit of heat out of the we have very exciting offerings market. ~ , ~ on the market already. it is take a bit of heat out of the market. ~ , . ., , ._ market. we expect them to stay not cost about dropping the hiuh. if market. we expect them to stay high- if we _ market. we expect them to stay high. if we don't _ market. we expect them to stay original product. it is a more high. if we don't get _ market. we expect them to stay high. if we don't get enough - high. if we don't get enough wind, we could see another spike against this would we balanced diet. in the western want to watch in the coming diet in particular we are never months. , ., . ., ., indexed on dairy and meat. that want to watch in the coming months. , ., ., ., ., ., months. jonathan, for now, thank yon _ leads not only to larger months. jonathan, for now, thank you. we _ months. jonathan, for now, thank you. we will - months. jonathan, for now, thank you. we will keep - months. jonathan, for now, thank you. we will keep a i greenhouse gas emissions, but months. jonathan, for now, - thank you. we will keep a close eye. let's go to the us where also potentially health issues she is on wall street have been down the road. rattled by the is the should we be honest about the government could default on its
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cost of this transition? if we debts. the us has reached its are going to get this done in a agreed borrowing limit of more cleaner, greener away, are going to get this done in a cleaner, greeneraway, it will cost more money. than $28 trillion and democrats the first unit of the new is and republicans are deadlocked always going to be a little more experience than the last over raising the so—called debt and the old. this is a hope you ceiling. late on wednesday markets did get a boost on have to get over and then at hopes of a temporary deal to some point the scale kicks in, extend the limit until technology kicks in and makes december. business leaders have the new technology more affordable. been warning of the in the short—term, what you say catastrophic consequences of a is food might rise? us default. politicians are playing with in the short—term, these may be fire when it comes to the debt more expensive. a plant —based hamburger is more expensive ceiling. that was the message than a meat based one, but you from ceos and business leaders, see prices coming downjust like with the battery—powered cars as more farmers provide attending a white house meeting, the potential threat of default enough to damage the economy, but actual government the food necessary for the protein production, and this default, according tojp default, according to jp means premium consumers are happy to pay a premium for the morgan. default, according to jp morgan-— default, according to jp moraan. ' . , , product that paves the way. what you hope can be achieved once we go into cop26? what is morgan. the effects will be cascading. _ morgan. the effects will be cascading, the _ morgan. the effects will be cascading, the ensuing - morgan. the effects will be i cascading, the ensuing weeks could go anywhere from a the prize here do you think, and how likely are we to get recession to a complete catastrophe for the global it? i think after several years of economy and i don't know why anyone would take a chance like confusion, what we could end up
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with is global regulatory that. , �* .., that. president biden called the meeting _ that. president biden called the meeting to _ that. president biden called the meeting to ramp - that. president biden called the meeting to ramp up - that. president biden called l the meeting to ramp up racial and republicans who don't convergence on the urgent need for co2 reduction and the support raising the debt ceiling and believe democrats should do it on their own. change in climate. when you creating a rift between look from 2016 to 2020, the us corporate america and congressional republicans, traditionally aligned on economic issues. it is giving not alone. before that, asia the us treasury secretary and wasn't on—board. what you can see now the first time as the ally as she urges congress to major economies of north set aside politics for the sake america, europe and asia are all heading in the right of the economy. for decades, direction. that of course over time will mean good incentives our country — of the economy. for decades, our country has _ of the economy. for decades, our country has earned - of the economy. for decades, our country has earned a - for the companies that want to our country has earned a move in that direction and a reputation for being a larger cost of doing business welcoming and reliable place to for the companies that don't. do business. we respect the the ceo of nestle there. we rule of law. we honour our debts. in this reputation has will talk about intel next because let's return to the benefited us in many ways, supply chain problems because including the ability to keep the boss of intel has told the interest rates low and for the bbc some prisons may be missing dollar to service the world's this christmas thanks to the reserve currency. ultimately, shortage of computer chips. intel is rapidly expanding its these benefits have helped us manufacturing capacity in lead in the world economy and america and europe in an attempt to combat that shortage become a more prosperous nation. and yet today, we are stop the ceo gave us a tour of staring into a catastrophe in
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which we surrender this hard his company's newest chip making facility in arizona. earned reputation and force the it is not often you get suited american people and american up it is not often you get suited up with the ceo of a industry to accept all the multinational corporation. you are good- _ multinational corporation. you pain, the turmoil and the are good. with _ hardship that comes with multinational corporation. you are good. with almost - multinational corporation. you are good. with almost 80 - are good. with almost 80 million dollars. _ are good. with almost 80 million dollars. you - are good. with almost 80 default. , ., million dollars. you are i are good. with almost 80| million dollars. you are an engineer— million dollars. you are an engineer like _ million dollars. you are an engineer like me. - million dollars. you are an engineer like me. you - million dollars. you are an default. given how high the stakes are, _ engineer like me. you are | default. given how high the stakes are, democrats - engineer like me. you are pretty close to enter some of default. given how high the i stakes are, democrats appear default. given how high the - stakes are, democrats appear to be leaning towards accepting republican offer of a the most advanced manufacturing short—term increase to the debt any place on earth. the limit so they will be back the most advanced manufacturing any place on earth.— any place on earth. the mike richards are _ any place on earth. the mike richards are made _ any place on earth. the mike richards are made in - any place on earth. the mike - again fighting the same fight richards are made in rooms free of any microscopic particles in december. as one wall st that could damage them, hence the suits. , ., ., , economist put it, the only thing harder than increasing the debt limit is increasing at that could damage them, hence the suits. , ., ., the suits. this one has almost finished processing. _ the suits. this one has almost finished processing. each - the suits. this one has almost finished processing. each one| finished processing. each one of these is the chip. we have four of these and we can't them twice. here in the uk, boris up, diamond cut, split them johnson has been laying out his apart and we test them and take economic plans at the four good ones and put it on a conservative party conference in manchester. he played down package like this and this creates one of these high—end cloud server chips that we the supply chain problems caused by staff shortages, and would have going to google, rebuffs caused by business amazon, microsoft, something leaders to allow more overseas like that. , , workers into the country. in amazon, microsoft, something likethat. , , , like that. this tiny microchip is actually — the short—term. mrjohnson said like that. this tiny microchip is actually made _ like that. this tiny microchip is actually made up - like that. this tiny microchip is actually made up of - like that. this tiny microchip is actually made up of tens i like that. this tiny microchipl is actually made up of tens of the short—term. mrjohnson said the uk economy must kick its billions of transistors and it is basically in the brain of addiction to cheap foreign
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your personal computer or labour. ~ ., laptop. the semiconductor is addiction to cheap foreign labour. ~ . ~ ., the engine of the global addiction to cheap foreign labour. . ~ ., ., labour. we are embarking now on the change _ labour. we are embarking now on the change of _ labour. we are embarking now on the change of direction _ labour. we are embarking now on the change of direction that - the change of direction that has been long overdue in the uk economy, but to mass—produce this tiny piece of technology economy. we're not back to the requires a facility of a same old broken model with low wages, low growth and gargantuan size. isn't this productivity, all of it enabled awesome? intel is spending $20 and assisted by uncontrolled million to build just two immigration and the answer to factors in arizona alone. they the present stresses and strains, which are mainly a are investing billions more in the us and europe. from function of growth, economic groundbreaking to producing an revival, is not to reach for that same old lever of uncontrolled immigration, to keep wages low. the answer is to control immigration, to allow people of talent to come to this country but not to use immigration as an excuse for failure to invest in people, in skills, and in equipment and facilities and machinery. itinfoil facilities and machinery. well let's talk to _ facilities and machinery. well let's talk to the _ facilities and machinery. well let's talk to the chief - let's talk to the chief economist at kpmg, yael selfin.
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lots of talk but how do we get there? this lots of talk but how do we get there? �* , �* ., , lots of talk but how do we get there? �* , �* . , ., there? as we've heard, it is a sliuhtl there? as we've heard, it is a slightly long _ there? as we've heard, it is a slightly long road, _ there? as we've heard, it is a slightly long road, we - there? as we've heard, it is a slightly long road, we can't i slightly long road, we can't just get there straightaway because even though we do have people in the uk that are unemployed or outside the labour market, some of them don't have the right skills, some are not in the right place, or they don't have the incentives to actually go and do the jobs that are out there.
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actual us —— chip will take it
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is four years, which means these shortages could be around for a while. what are the mean, though, for christmas?- though, for christmas? there is some possibility _ though, for christmas? there is some possibility that _ though, for christmas? there is some possibility that there - though, for christmas? there is some possibility that there may| some possibility that there may be a few ious under the tree this year. i am in the industry for over a0 years. this is the worst it has ever been supply. to build a new factory is years. every aspect of human existence is becoming more digital. everything digital age semiconductors. that digital. everything digital age semiconductors.— digital. everything digital age semiconductors. that being the case, we semiconductors. that being the case. we are — semiconductors. that being the case, we are only _ semiconductors. that being the case, we are only ever- semiconductors. that being the case, we are only ever going i semiconductors. that being the case, we are only ever going to| case, we are only ever going to need more of them. but even with the massive new investments like this one, we may struggle to keep up with the demand for years to come. that's quickly look at the financial markets and we have seen a real turnaround in asia today following the losses we saw throughout this week actually, and you can see hong kong up 2.5% because of the optimism that perhaps the us will not default on its debt, and that is how things ended as
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well in the us. a real turnaround for the snp 500 as we mentioned earlier, sentiment changed towards the end of the trading session on wall street when that you look like to be on the debt ceiling. i will see you soon. hello there. tuesday's wind and rain was a distant memory by wednesday. in fact, some areas where we'd seen the heavy, persistent rain across north—east england had a beautiful day, with some sunny spells, a dry story and feeling pleasantly warm. now, it's going to get warmer still over the next couple of days. average temperatures at this time of year around the mid—teens. by friday, we're likely to see temperatures peaking at around 21 celsius, 70 fahrenheit, so at least a good five degrees above where they should be for the time of year. and one of the reasons is because of this weather front that, yes, is going to bring some cloud and rain into the north and west, but it's driving in warm air with a south—westerly feed of wind direction. and you really will notice the difference when you step outside first thing in the morning.
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may well be a cloudy start to thursday with a little bit of drizzle around and, yes, that persistent rain from that weather front affecting parts of southern and western scotland, along with northern ireland as well. but elsewhere, the cloud should break up, we should see some glimpses of sunshine and a pleasant afternoon for many, particularly in comparison to the weather earlier on in the week, with temperatures peaking at 20 degrees — that's 68 fahrenheit. now, fog could be an issue first thing on friday morning across central and southern areas. that will slowly lift into low cloud, and hopefully that cloud should again start to break up for some sunshine to come through on friday. 0ur weather front not moving very far very fast, still producing some relentless rain across northern ireland and western scotland, but still a relatively warm feel. the east of scotland, 19 or 20 degrees. we're likely to see 21 somewhere — that's 70 fahrenheit. as we move into the weekend, though, that weather front gradually meanders its way steadily south and east, so it will start to bring a change, but it's a slow process. ahead of it, again, dry,
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settled with some sunshine and once again some warmth. behind it, starting to show the first signs of a change. a slightly fresher feel, mid—teens maybe in the far north—west of scotland. but we could still see those temperatures, 19 or 20 degrees not out of the question. the weather front will take its time to clear away. once it does so, it's then going to allow for a cooler air source as the winds swing round to more of a north—westerly, and so you really will notice the difference with the feel of the weather as we go through the week ahead. starting off quite promising, but getting noticeably cooler, but still fairly dry.
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good morning, welcome to breakfast with nina warhurst and charlie stayt. fuel bills predicted to rise even more as gas prices reach a record high. the business secretary is due to face industry bosses for the first time since the start of the crisis. 20 of the crisis. years since the start of uk military 20 years since the start of uk military operations in afghanistan and commemorative services will take place in london and here at the national memorial arboretum in staffordshire. we will speak to some of those taking part in about half an hour. here at gatwick airport
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people setting off for holidays with big changes to travel rules kick in.

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