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tv   World Business Report  BBC News  October 22, 2021 5:30am-6:00am BST

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this is bbc news with the latest business headlines for viewers in the uk and around the world. tech tax truce: europe agrees to end multibillion—dollar levies on the likes of facebook and amazon, averting a trade war with the us. evergrande escapes — for now. the chinese property giant avoids default with a last—minute interest payment. wework, re—worked! two years on from near collapse, the office—sharing company finally makes its stock market debut, netting its ousted founder almost a billion dollars. plus the craic returns, but the masks stay. ireland backtracks on easing covid restrictions for hospitality amid rising cases.
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hello there. we start with the row over taxing big tech. britain — along with france, austria, italy and spain — have agreed to roll back their multibillion—dollar digital services tax on the likes of facebook and amazon. it's part of a transition to a global minimum tax on all big companies due to come in from 2023. in return, the us is removing the threat of punishing tariffs that could have seen 25% import taxes slapped on european goods, from anything from clothing to shoes to cosmetics. from new york, michelle fleury has more. it's spelt out easily enough, how do you the digital world, but it turned into an ugly fight. the good forget the
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sparring between emmanuel macron and donald trump over this very issue? europeans want attacks for silicon valley giants like amazon and facebook and argued it was a matter of fairness and equity. the americans for their part suspected the goal was to hurt its businesses and so threatened retaliatory measures. by agreeing to drop the threat of trade tariffs against five european countries over their digital services taxes, the us is prioritising another groundbreaking deal to overhaul global corporate tax rates. that agreement, orchestrated by the oecd and to which more than 130 countries have signed up to, includes a 15% global minimum tax rate, as well as new rules to force multinationals to pay more in the countries where they do business. in the us, the deal needs to be ratified by congress and perhaps with an ion that the uk, france, italy, spain and austria which i all
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introduced their own digital services taxes agreed that multinationals are affected by the changes would be given a credit that could be applied against future tax bills. so, a us-eu against future tax bills. so, a us—eu tariff war over digital taxes has been averted. at least for now. at least for now! the final last words! susannah streeter is senior investment analyst at hargreaves lansdown. has everyone won here or has no—one the war on tax? 0r or is it another battleground where everyone is happy to take their little victory and walk away. it their little victory and walk awa . , , ., their little victory and walk awa. ,, their little victory and walk awa. away. it is slow progress but certainly _ away. it is slow progress but certainly this _ away. it is slow progress but certainly this year _ away. it is slow progress but certainly this year if - away. it is slow progress but certainly this year if you - away. it is slow progress buti certainly this year if you look at the overall picture, given the fact that the g7 and g20 group of nations supported this oecd group of nations supported this 0ecd proposal and it was brought in in october is no mean feat and yes, of course we've had this threat of tariffs really hanging over the global economy sincejune. in
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global economy since june. in fact, global economy sincejune. in fact, they were brought in but then immediately suspended with then immediately suspended with the hope there would be a deal reached but certainly, there were fears another mini trade war pretty large trade war, given there were 25% tariffs, corrupt. but certainly now that we have had this deal, but again is another small sign of progress and what is clear is that there is going to be this new regime brought in from 2023 is long, of course, as it is passed by congress. and what will happen is that any payments of tax made by the companies and maybe these tech giants which earn such a huge amount of money and where the focus really has been if there is an overpayment, it will be offset against what they owe in future years. of course yes, the sticking point, victoria, is congress certainly given the global agreement on this, it does look more likely than not
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that it will eventually get past. i that it will eventually get ast. ., that it will eventually get ast. . ., that it will eventually get ast. ., ., ~ ., that it will eventually get ast, ., ., 4' ., ., past. i want to know whether or not this tax _ past. i want to know whether or not this tax row _ past. i want to know whether or not this tax row may _ past. i want to know whether or not this tax row may be - past. i want to know whether or not this tax row may be a - past. i want to know whether or not this tax row may be a bit. not this tax row may be a bit of a fig leaf because you look at european countries and you look at the us and all of these economies are licking their covid wounds, if you like, and everyone knows that tariffs are not good for business. they end “p not good for business. they end up costing you money overall. i wonder whether or not this is politically expedient thing to be doing but really this is sort of part of a issue going on and everyone wants to get on with thejob and on and everyone wants to get on with the job and recover. yes. with the job and recover. yes, certainly. _ with the job and recover. yes, certainly. i — with the job and recover. yes, certainly, i do _ with the job and recover. yes, certainly, i do think— with the job and recover. yes, certainly, i do think that's - certainly, i do think that's why you have seen this agreement brought in, although it has to be said that there has not yet been an agreement made with india and turkey. there is still a tariff threat. but i'm sure those negotiations are continuing and we will get some agreement because as you say it's the last thing that
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economies need right now is another trade war, especially with inflation running so high and already filtering through to hurt earnings of some companies and expectations that it could get an even bigger problem in the months to come. thank you very much. susannah streeter. to asia now, where chinese real estate giant evergrande looks like it has avoided defaulting on its debts for now. according to chinese state media, evergrande has made a payment to overseas bond holders ahead of a deadline tomorrow. evergrande is struggling under massive debts of some $300 billion and fears it could default have rattled global markets. mariko 0i is following this for us in singapore. a huge sigh of relief but is evergrande as isolated a case as the people's bank of china would have us believe? evergrande is the one that
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keeps making news headlines but there have been other property developers like fantasia and scenic that have been missing interest payments or even defaulting in those cases so it doesn't look like it is just evergrande and the reason a lot of economists are concerned about this is because the real estate sector has been a huge driver for growth china for many years but the industry has been facing slowing demand as well as even fall in prices according to the latest data and hearing all of these financial issues might actually make consumers even more reluctant to buy property and that would have a huge impact on china's economic growth, and that's the main worry. at the same time even for evergrande, even though the company has reportedly made a key interest payment one day ahead of the deadline, it does not mean it's debt crisis is over because it has missed four other payments in the last two months and it has more payments that are due before the end of the year so
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even though we are starting to hear some good news about the company's chairperson pouring compa ny�*s chairperson pouring his company's chairperson pouring his personal wealth into completing a project, things are starting to change but it does not mean that a debt crisis is over at all. marinko, thank yon — —— mariko, thank you. back in 2019, the office space company wework was one of wall street's hottest prospects with a valuation of almost $50 billion and plans for a massive share listing. but questions over its finances, corporate governance and the management style of its founder brought it to the brink of collapse. now, two years on, after a rescue deal and restructuring, wework shares have finally started trading on the nasdaq — albeit at a far lower valuation. adam neumann may no longer be on the board but still holds a sizeable stake, now worth almost $1 billion. joshua jahani is managing director of the private investment bankjahani & associates in new york.
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thank you very much forjoining me, joshua. is neumann still toxic by association? what is their appetite for these shares?— what is their appetite for these shares? , . , ., these shares? the shares are u - , 1396 these shares? the shares are up. 1396 on — these shares? the shares are up. 1396 on the _ these shares? the shares are up, 1396 on the first _ these shares? the shares are up, 1396 on the first day - these shares? the shares are up, 1396 on the first day of. up, 13% on the first day of trading so so far, the data suggest the outlook is positive. the idea of the previous drama that you referenced with the past ipo, i think it is affecting wework and i think they are trying very hard to get beyond it and to make investors excited about their technology and business model. , ., ., model. does the new world of work, whatever _ model. does the new world of work, whatever that _ model. does the new world of work, whatever that might - model. does the new world of| work, whatever that might be, favour firms like wework? it does. yes, it's almost as if wework has been able to rise out of the pandemic very advantageously. if you look at most commercial real estate or commercial office providers, they are going to have and are having a much harder time adapting to this new world compared to wework. mike
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mcsally is much more adaptable and they have a more flexible model ever since they began before the pandemic —— wework. much of the space on a sub—prime or all prime around the world, is still overpriced and is in flexible and inaccessible and it is surfeit to requirements and even the occupancy of wework offices are half full or half empty, 50%, depending on your point of view so how brittle is the leasehold property? so how brittle is the leasehold ro -e ? ., so how brittle is the leasehold --roe ? ., , , ,, property? the whole business case is vulnerable _ property? the whole business case is vulnerable but - property? the whole business| case is vulnerable but wework is vulnerable, given what you referenced earlier and what we talked about with the past drama and now the fact they are coming out in public with the valuation about $89 billion versus —— versus the 47 billion they wanted a couple of years ago, they are vulnerable and i think all of their shareholders know that and they want to make sure they are as innovative as possible to keep new entrants and threats at bay.— and threats at bay. joshua, thank you _ and threats at bay. joshua, thank you for _ and threats at bay. joshua, thank you for your - and threats at bay. joshua,
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thank you for your time. i thank you for your time. staying with all things covid related. thailand's prime minister says vaccinated people from 46 countries will be allowed to visit without quarantine from next month. it has already said visitors from ten key markets will be given quarantine exemptions, including britain, singapore, germany and the us. sarah toms is in singapore for us. good news or a little bit too late? no, it's definitely good news and much needed for the thai tourism industry and all of those wannabe travellers like myself but so what is going to happen is that vaccinated tourists from a wide range of countries now, the us, china, european and asian countries, including singapore, will now be allowed in, as long as they can supply a negative covid pcr
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test. 0pening can supply a negative covid pcr test. opening up, as you said, to 46 countries and territories on one november may seem like a big jump but you have to remember how crucial the tourism industry is to thailand. it's a huge chunk of the country's gdp. thailand lost about 50 billion us dollars on tourism revenue so many businesses in those popular tourist destinations have been devastated as the streets have remained eerily silent for months now but still it's a risky step for thailand. 0nly around one third of the population has been fully vaccinated and they are still seeing around 10,000 covid cases a day. seeing around 10,000 covid cases a day-— seeing around 10,000 covid casesada . ., ., , cases a day. sarah, thanks very much. stay with us on bbc news. still to come: 0n the canvas — global fine art sales slumped last year. can more affordable alternatives buck the trend?
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a historic moment that many of his victims have waited for for decades. the former dictator in the dock, older, slimmer. and as he sat down, obedient enough. dawn, and as the sun breaks through the piercing chill of night on the plane outside, it lights up a biblical famine now in the 20th century. the depressing conclusion — in argentina today, - it is actually cheaper— to paper your walls with money. we've had controversies in the past with great britain but, as good friends, we have always found a good and lasting solution. concorde bows out in style after almost three decades in service. an aircraft that has enthralled its many admirers for so long taxis home one last time.
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this is bbc news, the latest headlines: buckingham palace has revealed that queen elizabeth has spent a night in hospitalfor medical checks, but is now back at windsor castle. the hollywood actor alec baldwin accidentally shot dead a cinematographer and wounded the director on the set of his new film with a prop gun. to ireland now, where today should have been a red letter day. 22 october was supposed to have marked the full, unrestricted re—opening of the hospitality sector, but that's not the case. in fact, rising numbers of covid—19 cases has led the government to reversed many of the promises made to the people.
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they will still need to show digital vaccine passports to get into pubs and restaurants and to enter nightclubs, but at least the latter are open — that's the first time since march of last year. masks are still mandatory. adrian cummins is ceo of the restaurants association of ireland. this was not exactly what you're hoping for, was it? irate you're hoping for, was it? we are going _ you're hoping for, was it? we are going in _ you're hoping for, was it? - are going in the right direction in terms of covid and the opening of the economy. 0ur government has taken a approach which is slow and steady and we have pumps opened for the last number of weeks and months and restaurants also and at the capacity of 70% but from tonight onwards the nightclub industry will open at 100% and they have been closed for nearly 580 days. we are moving
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forward, it is slow, we need to protect public health at all times but we are in a better position now that we have been over the last number of months during the pandemic. the over the last number of months during the pandemic.— during the pandemic. the thing with the face _ during the pandemic. the thing with the face masks, _ during the pandemic. the thing with the face masks, they - during the pandemic. the thing with the face masks, they are l with the face masks, they are still mandatory, but we are not realistically going to see people clubbing in face masks, surely, and how realistic they will open for any length of time if you still have contact tracing and large groups of people all congregating in the same area?— people all congregating in the samearea? . . . same area? that is correct. we have a conservative _ same area? that is correct. we have a conservative approach i same area? that is correct. we| have a conservative approach as to how we open the economy and society here in ireland but believe we are doing the right thing to protect public health. it will not be easy for the hospitality industry but we will put our shoulder to the wheel and make sure that whatever we open, we do not) down again if there is a spike in covid cases. we have a very
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limited capacity in the healthcare limited capacity in the healthca re system limited capacity in the healthcare system for icu bed capacity and hospital capacity for covid patients so it is a balancing act for ireland at the moment and we need to balance between reopening our society fully but also protecting the health services as well here in ireland. bq�*s protecting the health services as well here in ireland. 8996 of the population _ as well here in ireland. 8996 of the population aged _ as well here in ireland. 8996 of the population aged over- as well here in ireland. 8996 of the population aged over 12 i as well here in ireland. 8996 of the population aged over 12 is| the population aged over 12 is vaccinated, a situation where bands are playing gigs in belfast but they are oral on ice in dublin and these restrictions look likely to stay in place until february next year. as there public support for what is going on in the republic of ireland?- the republic of ireland? there is ublic the republic of ireland? there is public support _ the republic of ireland? there is public support around - the republic of ireland? there is public support around the i is public support around the fight against covid and the strategy by the government. not everyone is happy about it but the general support is we're doing the right thing and that has been shown by the vaccine take up in island. we have the
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highest take—up of vaccine per head of population anywhere in europe —— ireland and we're very proud of that and now we're starting a booster campaign for those over 60 and those who are vulnerable. as we go through the next number of weeks and months, and we are going through a time, the christmas period is very, very important for the hospitality industry, it is critical we have a good christmas and make sure we do it right and proper because last christmas we only traded for two weeks and a long shutdown from december right through until august of this year. so, we have learnt a lot over the last number of months and we believe that while we are not at full capacity, we will get there eventually and we need to get through the next number of weeks and months safely and securely so there is no going backwards in the fight against covid here in ireland and we are continuously marching forward. and we are continuously marchin: forward. ., ~' , ., ., marching forward. thank you for our time
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marching forward. thank you for your time today. _ finally, if the banksy auction last week piqued your interest in art collecting but the $25 million price tag was a bit steep, this may be more your style. the affordable art fair started in london more than two decades ago. there are now spin—off events in 10 cities around the world — they've sold over 500,000 pieces of artwork. global art sales though were down 22 % last year, according to industry figures — so how's this year's event going? will ramsay is founder and ceo of the affordable art fair. hello. does affordable art buck the trend here or not? i hello. does affordable art buck the trend here or not?- the trend here or not? i think for any art. — the trend here or not? i think for any art, people _ the trend here or not? i think for any art, people have - the trend here or not? i think| for any art, people have more money in their back accounts than ever, they have not been able to go on holiday or leave house as much as they would and we definitely sing a trend of people spending more money on art. ~ ., people spending more money on art. . ., ., , people spending more money on art. . . . , , ,
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art. what are they spending it on? for pleasure _ art. what are they spending it on? for pleasure or— art. what are they spending it on? for pleasure or profit? i i on? for pleasure or profit? i hope it is always for pleasure. you should definitely buy what you love and not what you think you love and not what you think you should buy and if you discover in 20 years time it has gone up in value, you can feel extremely smug about your excellent taste!— excellent taste! realistically, the vast majority _ excellent taste! realistically, the vast majority of - excellent taste! realistically, the vast majority of people i the vast majority of people going into affordable art fair are to put something nice on their walls and not to flog it five years later?— five years later? that is absolutely _ five years later? that is absolutely right - five years later? that is absolutely right and - five years later? that is - absolutely right and people want to support artists and galleries who have had a particularly tough time. i think the reason why the art sales figure you have just quoted has reduced by 20% roughly is because people do often need to interact with art and talk to the artists, the galleries, see the art in the flesh and that will be why i think art sales were down a bit. but online sales have increased.—
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bit. but online sales have increased. , increased. 0k, let me get this riaht, increased. 0k, let me get this right. are _ increased. 0k, let me get this right. are you _ increased. 0k, let me get this right, are you blaming - increased. 0k, let me get this right, are you blaming the - increased. 0k, let me get this| right, are you blaming the rise of online sales for the decline of online sales for the decline of physical sales people go in and experience the art and are persuaded to invest in a? ida. persuaded to invest in a? no, oane persuaded to invest in a? no, online sales _ persuaded to invest in a? no, online sales are _ persuaded to invest in a? no, online sales are up. _ persuaded to invest in a? no, online sales are up. we - persuaded to invest in a? iirr, online sales are up. we are seeing people spending more money now that we are able to hold art fairs again and so i think people want art in whichever way they can get it. one of the predictions from a midyear report this year to september is that there could be a growing divide in the market's top and bottom ends, leading to greater concentration of value at the top. when does that leave you? i think that is the art market report that was geared mainly towards the top end. that was referring to the bottom end being the over £10,000 or $10,000 range and we are below all of that. we are not so much
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auction prices. it is buying primary market from the artist and from galleries and we have seen an increase in spend per head at the fairs we have been able to run since the lockdowns. i thank you so much for your time and lockdowns. i thank you so much foryourtime and i lockdowns. i thank you so much for your time and i love that artwork from your children behind you! thank you. the language learning app duolingo has been downloaded 500 million times since it was first launched in 2012. people use it around the world to teach themselves everything from english to portuguese — to gaelic or swahili. but now the app is branching out into maths. duolingo's cofounder and ceo luis von ahn has been speaking to our business reporter dougal shaw. it is known for language learning, that is the most popular way to learn language in the world but our mission is more general, is about all of
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education. we started with language learning for many reasons but probably the biggest one is which there is this humongous need to learn english and over the world and knowledge of english can immediately increase your potential and that's why we started with languages but always wanted to teach other things, it was starting to teach elementary school maths and generally is a lot to do with education.— and generally is a lot to do with education. the educational technology _ with education. the educational technology space _ with education. the educational technology space is _ with education. the educational technology space is very - technology space is very competitive, how will you stand out? ~ ., , ., , . competitive, how will you stand out? . ., , ., , ., out? would try to use a similar strate: out? would try to use a similar strategy that — out? would try to use a similar strategy that we _ out? would try to use a similar strategy that we used - out? would try to use a similar strategy that we used for - strategy that we used for duolingo, we spent a lot of effort to make it as fast as possible and duolingo is like a game and we will do the same with a massive app and another thing to make it stand out as we can use the data of millions of people for how well we can teach and a very sophisticated student model. whenever you start a lesson on duolingo it is personalised to you and we tried to give you exercises that practised things you are not that good at. fire
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that practised things you are not that good at.— not that good at. are you likely to _ not that good at. are you likely to attract _ not that good at. are you likely to attract more - not that good at. are you - likely to attract more children because the teachers elementary maths and many children use duolingo at the moment. how worried are you about the amount of screen time spent on mobile devices?— mobile devices? many parents tell us the _ mobile devices? many parents tell us the thing _ mobile devices? many parents tell us the thing they - mobile devices? many parents tell us the thing they love - tell us the thing they love about duolingo is that they think of it as productive screen time and so we spend a lot of effort trying to make sure every time someone uses duolingo they get something out of it, we can add things that do not have educational value just to add fun but we do not do that on duolingo. everything we put on there has to be educational. 0ur we put on there has to be educational. our main competitors are not other education apathy, the other competitors are tick—tock and instagram, these are the main competitors.
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0ur our top story, the queen is out of hospital and back at her desk and in tip top condition! see you again soon. hello. after what was a decidedly chilly day on thursday in most places, temperatures have been allowed to drop where night skies have been clear. but the skies certainly aren't clear everywhere — areas of cloud spilling down from the northwest, which have been producing some outbreaks of showery rain. most of us, though, starting friday in the midst of this relatively cool air, and a decidedly chilly feel in the north—east of scotland — that's where we will have some of the coldest weather through the day, some of the windiest weather, but some of the sunniest weather. for shetland, for 0rknay, for the north and east of the mainland. elsewhere, south—west scotland, northern ireland, england and wales starting off with large amounts of cloud, some showers — the showers becoming fewer and further between as the day wears on — and, even in these cloudy areas, there will be spells of sunshine. the winds for most will ease through the day, it will stay
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quite blustery up towards the north—east, temperatures for at lowick and aberdeen only getting to 8—9 celsius. but elsewhere, a slightly milder afternoon, 12—14 celsius. as we move through friday night where we keep these clear skies in eastern scotland and eastern england, it will turn really quite chilly, temperatures getting close to freezing in some spots. but out west, it will be becoming milder, windier, the wind starting to come up from the south, bringing milder air our way with a lot of cloud, mist and murk, and hill fog as this weather front begins to approach from the west. now this will introduce rain through saturday across parts of northern ireland and western scotland — ahead of it, we'll see increasing amounts of cloud, and also crucially, this southerly wind setting up, bringing some milder air. so a milder feel to the weather as we go through the weekend, but that weather front will bring outbreaks of rain from time to time across northern ireland, particularly up towards the north and the west of scotland. further south and east, quite a lot of cloud developing — it will stay mainly dry, particularly for england and wales, those winds though coming up from the south, quite a strong wind across the western side of scotland, and those temperatures will be
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higher by this stage — ten for lowick, 1a for glasgow, 15 for belfast and plymouth. now into sunday, we keep the southerly winds, still quite a strong wind in places. the weather front in the west breaking up into showers — so it's a mixture of sunshine and showers, really as we head through the day on sunday, but we keep those slightly higher temperatures. values in most spots around 111—15 celsius.
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good morning. welcome to breakfast with charlie stayt and naga munchetty. 0ur headlines today... the queen returns to windsor castle after spending a night in hospital. she's said to be in good spirits. the hollywood actor alec baldwin has shot and killed a woman with a prop gun on the set of his new film. the care regulator warns of a "tsunami of unmet need" and an "exhausted and depleted" workforce. good morning. petrol prices are close to record _ good morning. petrol prices are
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close to record highs, _ good morning. petrol prices are close to record highs, piling - close to record highs, piling further

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