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tv   World Business Report  BBC News  October 8, 2021 5:30am-6:01am BST

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hello. this is bbc news with the latest business headlines for viewers in the uk and around the world. frozen out. more than a million more uk households face being pushed into fuel poverty by the energy crisis. debt relief. markets share a deal to raise the overdraft and avoid a catastrophic default for now in america. tax haven no more. ireland dropped his opposition to a global minimum tax on multinationals. plus, saudi scores newcastle and sends the club straight to the top of the financial league.
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hello there. let's talk more about our top story, the energy crisis. over a million more british households face being plunged into fuel poverty this year. this is according to a uk charity. national energy actions is up to 1.5 million additional households will struggle to heat and power their homes by the spring. bills are pushed up by the soaring cost of wholesale gas. the bbc�*s economics editor has more. price rises are flowing direct from international markets into people's homes from drill to grill and soon on to everyone's bills. already this has it the likes of susan, a pensioner from bradford whose energy company has just hiked her monthly bill from £85 to £125.
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i am conscious that i put less water in the kettle, i have already started putting an extra layer on if it gets cold. there is only a limit to what you can do, i have changed the lightbulbs to economic ones. the money has to come from somewhere that i am not quite sure where yet and it is a lot of money to find. but that was before an _ of money to find. but that was before an even _ of money to find. but that was before an even bigger- of money to find. but that was before an even bigger surge i of money to find. but that was before an even bigger surge in international prices that could push up the energy by more than 30 sent in april. charities say that would put an extra 1.5 million households into fuel poverty —— 30%. gas prices in paid internationally have not just reached records but they have reached frankly incredible levels. for context, the latest consumer price which rose 10% for atypical house was based on them observing this price at 65 pence. if the prices persist,
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the price could go up to an incredible 1700 to £1800. energy bills of this size planning on the nation, doormat in april at the exact same time the taxes are going up just prove unaffordable for millions of ordinary household. it would prove unthinkable for a government that has prided itself on raising real wages, increasing pay packets more than the rates of inflation. other governments around europe have poured billions into lowering these bills, but that poses a dilemma of subsidising energy at the precise time we are supposed to be dealing with climate change. that is the big question, isn't it? the research firm behind thatis, it? the research firm behind that is, inside. their senior consultantjoins me now. craig, good to see you. thank you for joining me today. we have council tax bill is rising,
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fuel, food poverty already, energy poverty being raised as a possibility as well. how soon our people in britain going to have to choose between heating their homes feeding the? obviously we hope it doesn't come to that. what we are seeing as far as the wholesale market, the impact, that is ready feeding through now to bills and certainly in the context of those tariffs which are beyond the scope of the cap, they are already increasing also. this is not a problem which is on the horizon, it is apparent now and has the potential to increase as we move into next year. we saw a graph — as we move into next year. we saw a graph saying the price was based on the 65 level, and we are 200 plus, 277. just put that into context. this is going to get a lot worse before it gets better because of that lack effect. it gets better because of that lack effect-— it gets better because of that lack effect. , . ,., lack effect. very much so. the wa in lack effect. very much so. the
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way in which — lack effect. very much so. the way in which the _ lack effect. very much so. the way in which the methodology | lack effect. very much so. the l way in which the methodology is calculated as it does use the lag, so effectively even if we were to see a sharpened material reversal in wholesale prices, some of those increases that we have seen over the last two months would effectively go to the price already, so there is very much the issue of that time and consideration and the impact that the methodology has an father determining what level of will be.— level of will be. ok, so by that thinking, _ level of will be. ok, so by that thinking, it _ level of will be. ok, so by that thinking, it is - level of will be. ok, so by that thinking, it is in - level of will be. ok, so by| that thinking, it is in some instances going to be too late. all over europe governments are stepping in to help people, help companies. the british government is desperate not to bail energy companies out. we have 12 that have already failed. how many players do you think are realistically going to survive through to the spring? it to survive through to the s-urin ? , , to survive through to the s-urin? , , ' . to survive through to the surin ? , , ' . ., spring? it is very difficult to sa . spring? it is very difficult to say- frankly. _ spring? it is very difficult to say. frankly, given - spring? it is very difficult to say. frankly, given that - spring? it is very difficult to say. frankly, given that we| spring? it is very difficult to i say. frankly, given that we are what is ultimately uncharted territory for the energy market, and as he said, having
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such a comparatively larger number of suppliers in such a short space of time is something we haven't seen previously but the pressures are very much there, both on households, businesses and on energy suppliers. the households, businesses and on energy suppliers-_ energy suppliers. the russians sa our energy suppliers. the russians say our free-market _ energy suppliers. the russians say our free-market decision i energy suppliers. the russians| say our free-market decision to say our free—market decision to buy spot prices is to blame and europe would have been better off on long—term contracts for gas. they right? but off on long-term contracts for gas. they right?— gas. they right? but has historically _ gas. they right? but has historically used - gas. they right? but has i historically used long-term gas. they right? but has - historically used long-term oil historically used long—term oil indexed gas contracts —— russia. they were progressively phased out, but reliant on the most reduced in the wake of the financial crash, and the fact they were prices of oil around 100 to 120 if not more dollars a barrel acted into the prices. and one of the reasons for the push behind, the move to spot trading was to ultimately move away from that and try and really introduce the potential
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for more competition into the wholesale gas market, so obviously you can fully appreciate russian perspective given it is method they have historically used to price the gas contracts to europe. qm. gas contracts to europe. 0k, thank you — gas contracts to europe. 0k, thank you very _ gas contracts to europe. 0k, thank you very much - gas contracts to europe. 0k, thank you very much for - gas contracts to europe. 0k, thank you very much for your time and your contributions today. time and your contributions toda . . ~ time and your contributions toda . ., ,, today. thank you. let's _ today. thank you. let's head - today. thank you. let's head over i today. thank you. let's head over toj today. thank you. - let's head over to the today. thank you. _ let's head over to the united states because financial markets are breathing quite a sigh of relief after the senate moved to head off a looming debt default. it reaches limit of $28.4 trillion and red—faced running out of money next week. thursday senators voted to temporarily raise the debt ceiling to keep the country going until december. is shoring up more trouble for later. according to the treasury department, the united states would have cash money to pay its debts by october 18, so the deal reached by congress was 11 days to spare does avoid a
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potentially catastrophic financial disaster. that is the good news. the bad news is that this is only a temporary fix for the lawmakers have agreed to increase the debt ceiling by $480 billion. that may seem like a lot of money, but it will only fund the government until early december, which means congress will have to address this issue all over again to avert a government shutdown, creating a headache right around the holidays. and failure by america to repay its bills would severely hurt the country by the credit rating, plunge the global financial system into turmoil, and possibly lead to a self—inflicted recession, which the government could not do a thing about since it would have no money to spend. so, some relief congress for now, but investors very much turning their attention to the federal reserve and when it will start dating back its massive economic stimulus stop a lot of that will depend on
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jobseekers coming up a few hours from now —— scaling back. let's speak to the chief economist at the bank of the west. thesejob numbers are going to be key to what they will do, aren't they?- going to be key to what they will do, aren't they? yes, they are swer— will do, aren't they? yes, they are super important. - will do, aren't they? yes, they are super important. we - will do, aren't they? yes, they are super important. we do i are super important. we do expect to see a strong rebound in usjob growth in september, we are looking for about 400,000 net newjobs created, double what we saw in august when we had about 235,000 jobs created. it is still below what we have been trending at the far this year, about 586,000 jobs. it is a step in the right direction but it is a little bit of a slowdown from what we have seen in past months. do you think that is going to head off the calls for a raining backup stimulus or not? i think the fed is going to go ahead, less that is below 200 thousand jobs created in september, i think the fed has
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orally signalled they will have a formal announcement —— formally announced. i think thatis formally announced. i think that is pretty much likely to happen given our forecast on jobs. they could even move up the timetable for raising rates if we continue to see inflation running as high as we have seen, we have seen pressures not only from supply chains bottlenecks but also energy prices which will keep inflation elevated in the united states until at least the first half of next year. but there are certainly concerns that you remain over in liquidity. there has been quite a lot of instability and of course sometimes pandemic induced, but sort of more widely as well, and there is a double—edged sword inflation which looks like it is to stay. absolutely, it has been a very uneven recovery in the united states, some people say higher
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income households in housing and have done very well but lower income workers are still underperforming, still down about 5.3 millionjobs underperforming, still down about 5.3 million jobs from preplanning levels in the united states, and about 1.7 million of thosejobs united states, and about 1.7 million of those jobs are in low—wage hospitality sectors. it is complete recovery at this point. scott, thank you very much for your time. scott anderson in san francisco for us. now, a global crackdown on tax dodging by multinationalfirms global crackdown on tax dodging by multinational firms has taken a major step forward after ireland dropped its opposition to the plan. more than 130 countries have signed an agreement to charge companies a minimum of 15% tax. the idea is to stop the likes of google and facebook slashing their tax bills by setting up headquarters in tax havens. jurisdictions with low tax rates such as historically ireland. alex is a teen executive of the tax justice network, which has been
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campaigning on this issue for almost two decades now. alex, is this the last barrier to this happening? this kind of activity. when this particular deal started to be put together in 2019, we really thought it could be. every year money is shifted around the world by multinational companies trying to pay less tax, and that cost everybody else something like billions of dollars. this deal looks like it could put a line through that. there are two elements. one is about taxing companies weather actually did the real activity where their sales take place to make a pretty —— profit shifting harder. the other is a tax that requires you will pay at least 15% on your profits wherever you managed to shift them too. that would make a profit
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shifting much less attractive. unfortunately, though, what we have seen is the ambition of that deal has really collapsed. ireland signing up is another sign of that. what they see is that the first pillar without making it harder to tax office when they arise instead of applying to multinationals only applies to around 100 multinationals and only a small bit of their profit, so that has really lost a lot of ambition. the global minimum tax now has so many carveouts that it tax now has so many carveouts thatitis tax now has so many carveouts that it is going to make it even for ireland that has a tax rate below that really quite a small impact, and the last thing, what we are seeing is a lot of lower income countries starting to say they might reject this deal now even that to agree injuly because the benefits of them will be so small. unfortunately i think we're going to see a high—level statement today where the oecd says, yes, everyone is still with us, but almost all of the
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technical looks like it is going to be pushed further down the line again and we start to wonder whether we are actually going to get that deal at all. goodness. ok. alex, thank you very much for the assessment. so not quite what it looks like on the chin. thank you very much, alex. to stay with us here on bbc news. cosplay conquers covid. it is the return of the comic con. this was a celebration by people who were relishing their freedom. 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 i exploded and a group of-
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soldiersjumped from a military truck taking part in a parade i and ran towards the president, firing from — kalashnikov automatic rifles. 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. i believe in the people of california. welcome back. i am victoria fritz. a reminder of the headlines: america's national security advisor warned russia not to exploit the energy crisis causing gas shortages across europe. in the us senate agreed to lift the country's
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debt ceiling for two months, possibly avoiding a debt ceiling. the boss of craft heinz says the situation has become so bad that it's impossible not to pass on higher costs to consumers. and he was asked whether high prices are likely to be replicated elsewhere. this is very different to other years of inflation. in previous years of inflation. in previous years there were other innovations of coffee or we had a brad croft in beans but what is different now is that this inflation is across the board. and so it's to navigate through this inflation during the crisis. it's up to us and others in the industry to try
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to minimise this price increase. the same way that i've told to minimise this price increase. the same wa that i've told you to minimise this price increase. the same wa that i've told you we to minimise this price increase. the same wa that i've told you we are to minimise this price increase. the same wa that i've told you we are much to minimise this price increase. the same wa that i've told you we are much more to minimise this price increase. the same wa that i've told you we are much more agile, we have to uses agility and creativity to find solutions to avoid extreme pricing increase is and try to manage this.— pricing increase is and try to manage this. well, viewers are not world _ manage this. well, viewers are not world news _ manage this. well, viewers are not world news can _ manage this. well, viewers are not world news can see - manage this. well, viewers are not world news can see more i manage this. well, viewers are | not world news can see more of that interview with the boss of kraft heinz on talking business. the times are on your screen. the first airing is on saturday. and add to the financial revolution in the premier league, as the southern well fun feel they deal for newcastle united, sending it straight to the top of the rich list with the backing of an owner with an estimated $500 billion. those are deeper pockets than those of magister city or the shake all the authority that owns paris saint—germain and i have an
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analyst and a liverpool fan! good to see you! what do you think? do you think big money means big results? does it actually transacted better performance?— actually transacted better erformance? , �* , performance? doesn't typically mean that _ performance? doesn't typically mean that and _ performance? doesn't typically mean that and you _ performance? doesn't typically mean that and you look - performance? doesn't typically mean that and you look at i performance? doesn't typically l mean that and you look at these takeovers anything of manchester city and paris saint—germain or chelsea, not state but one of the first clubs that was bought up with massive club money and investments made into the playing squad. they can look at some success stories but it's always not guaranteed but if you are a newcastle united fan and he would look at those numbers and you would be very excited. ., ., , , excited. you would be very excited! — excited. you would be very excited! what _ excited. you would be very excited! what will - excited. you would be very excited! what will we i excited. you would be very excited! what will we see i excited. you would be very i excited! what will we see on the front of the shirts? extremely difficult to say, you imagine there will be a massive overhaul in the club in terms
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of sponsorship deals and there will be a number of sponsorship in terms of training ground and training kits and massive investment in the playing squad and also the facilities and if there is one thing that they have done really well, they've notjust invested more than £1 billion in the playing squad but they have invested heavily in the structure around the club and surrounding areas and i think they will expect that, the fan. �* . the fan. and what will the saudi arabians _ the fan. and what will the saudi arabians get - the fan. and what will the saudi arabians get back i the fan. and what will the i saudi arabians get back from all of this?— all of this? aside from the reputational _ all of this? aside from the reputational side, - all of this? aside from the reputational side, one i all of this? aside from the | reputational side, one area they look at closely in sport, from a financial perspective, still plenty of gains to be hired and if you look at manchester city they bought the club for a little over $200 billion at the time are now valued at $4 billion saved even when you account for the
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roughly 2 billion they invested in the staff it is still an enormous profit if they were to sell based on the current valuations but obviously gets more challenging when you are looking at an infrastructure in football right now that is extremely competitive, where you have many multibillionaire owners all competing for the same spots for the champions league spots, the future that comes with it, then it is extremely competitive compared to when others took over the big clubs. again, newcastle is a strong to do so because of the financial backing they have. . ~ the financial backing they have. ., ,, ., the financial backing they have. ., ., have. thank you for your time toda . have. thank you for your time today- finally. _ have. thank you for your time today. finally, if— have. thank you for your time today. finally, if you - have. thank you for your time today. finally, if you are i have. thank you for your time today. finally, if you are the i today. finally, if you are the sort of person you know marble from anger, dust off the
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c011 con play attractants. it is very success full and the comic book universe is huge growth business. disney paid $4 billion for the marvel brand and now it is valued at over $50 billion! well, let's speak to the organisers of comic—con as well as star wars celebration. good to see you, michael, this miracle marvel story, how representative is that trajectory for the rest of the industry? great to be here. the pop culture industry has seen such a rise, especially when it came through the marvel universe with all the movies that come through — — marvel universe and so much has been brought out of that and that trajectory of 4 billion up to 50 billion has been sent throughout the industry, people being to live out the heroes back from the comic book days
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and see them on the big screen has propelled that into mainstream. ok, talking about some of these mad outfits! kind of rise of cosplay, what you look for when you judge the winners and how elaborate are the costumes?— winners and how elaborate are the costumes? some of them are amazinu! the costumes? some of them are amazing! the _ the costumes? some of them are amazing! the detail— the costumes? some of them are amazing! the detail and - the costumes? some of them are amazing! the detail and time i amazing! the detail and time put into the costumes, you wouldn't expect how long it wouldn't expect how long it would take. some people are putting hundreds of hours in the costumes and when we're trying to judge the costumes it is more around the accuracy and coming out of the costumes to see what it took to build and what was the technique used to make the costumes and then prejudging goes ahead of that to bring the field down to a limited group, and then they come on and have a stage presence that is brought into it and there is a theatre that you bring onto the stage, because people want to be seen so it's amazing that the
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costumes i think that people want to see. as you walk around, people are taking pictures and that interaction really feeds the event. fit, really feeds the event. a producer put together some great costumes and we edited out many because the reason being, there was not much costume, a lot more person than costume, a lot more person than costume going on if you know what i mean! i do worry about the sexualisation of, effectively, comics and children are coming through and this is predominantly initially the first time people think sexualised images. does this worry you?— sexualised images. does this wor ou? ~ ., . ., worry you? with our culture and the way things _ worry you? with our culture and the way things are _ worry you? with our culture and the way things are at _ worry you? with our culture and the way things are at the - the way things are at the events, people like to express themselves. i think it's how you take it and how you individualise it. people coming to showcase a character they have grown up with and how they take that and bring it to life within our events, is seen in that way. you know, it's really kind ofjust explaining to
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children and where you are and how things are viewed because it's not really the sexualisation unless that they want to take it and go with it. ok, all right, thank you for joining a today. a quick look at the markets before i go and have a look at what things are doing. asian shares are rising and chinese shares returned from a one—week holiday, upbeat, tracking a global rally and investors eyeing the jobs data coming out anytime in the next few hours, looking for fresh insights onto the timing of any tapering from the fed reserve. a quick look at us markets. this is how it looks at the end of trade. the dow is “p at the end of trade. the dow is up almost one whole % and shares in asia rising after a rally of 2% the day before, the biggest daily gain since august. thank you for your time today. it has been a pleasure,
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as always. you canjoin me for another hour on international news. i am victoria fritz. another hour on international news. iam victoria fritz. i will see you soon. goodbye. hello again. thursday saw the arrival of some very warm air indeed across the uk, with temperaturesjumping by seven degrees celsius in places. many of us had quite a bit of cloud, but we had some sunshine — for example, in north wales in denbighshire and next door to this in flintshire — that was where the warmest place in the country was. 22 degrees celsius the top temperature. that is eight degrees celsius warmer than it should be at this time of the year — the october average is 14 degrees. now, we've had extensive cloud across the north—west for both scotland and northern ireland. here, a slow—moving weather front has been bringing rain through thursday. we've got more rain to come overnight into friday,
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friday night and into saturday as well for some across scotland and northern ireland because this front is barely budging. further southwards, well, we've got quite a bit of cloud reforming, some mist and fog patches turning quite dense. as well as that, there's a bit of drizzle around, so quite a murky start to the day for many in england and wales with that mist and fog and low cloud slow to thin and break. but eventually, come the afternoon, we should start to get some brighter weather through. the exception — well, for northern ireland and scotland, there's more rain here, heaviest in argyll and highland, and we've got a very weak weather front moving into east anglia and south—east england. that willjust thicken the cloud up enough to bring occasional spots of light rain or drizzle as well. but otherwise, very mild again — temperatures running into the low 20s. now this weekend, this cold front will start to push its way southwards. it is a weak front. it will bring some fresher air in from the north and west with temperatures easing down a few degrees as we go through the weekend. now, saturday — again, mist and fog patches to start the day across england and wales but probably a better chance of seeing some sunshine through the afternoon. the rain in scotland and northern ireland actually starts to budge, so it should brighten up across the north—west of both later in the afternoon,
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but the rain heading into cumbria and northumberland. that same weather front is this stripe of cloud across east anglia and the south—east on sunday. a lot of dry weather on sunday, again with some sunny spells around, a few showers in northern scotland with strengthening winds here and the temperatures easing down — 14 or 15 degrees scotland and northern ireland, the far north of england, still 17—19 across england and wales. but it'll continue to get a little bit fresher — those temperatures coming back closer to average in the week ahead.
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good morning, welcome to breakfast with charlie stayt and nina warhurst. our headlines today. honoured for his work and child poverty, footballer marcus rashford lays bare the consequences of a code in universal credit. forty million people are invited to get the flu jab, amid warnings that more people than ever could be vulnerable this year. good morning from plymouth. this is the finish line of margon rod's latest incredible challenge. a100 mile and byjourney from north devon
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will see him finish here live later

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