tv World Business Report BBC News October 27, 2021 5:30am-6:01am BST
this is bbc news with the latest business headlines for viewers in the uk and around the world. fighting back from the pandemic — the uk chancellor will unveil his budget on wednesday — we go through all the key figures. the tech titans give the markets an update — alphabet�*s cloud division sends its revenues sky—high, but twitter disappoints investors with its advertising revenues. and oil prices surge further, hitting their highest level since 2014 — as supply chains fails to keep up with rising demand.
let's start here in the uk, where the chancellor rishi sunak will unveil his budget. he has promised his budget "begins the work of preparing for a new economy" post—covid. some polices have already been unveiled — such as a rise in the national living wage from £8.91 per hour to £9.50, to come into effect from the first of april. measures such as the furlough scheme, which finished at the end of september, were expensive. this forced the government to borrow more money. in the year ending april 2021, the government borrowed £320bn — the highest figure seen outside wartime. so what else can we expect from today's budget? joining me now is victoria clarke, who's the uk chief economist at santander. good at sa ntander. to good at santander. to see you, what do you think good to see you, what do you think we should be looking out
for later? ,., ., ., for later? good morning. i think the _ for later? good morning. i think the budget - for later? good morning. i think the budget needs . for later? good morning. i think the budget needs to | for later? good morning. i. think the budget needs to do three things. the first one is to show that the chancellor is therefore fiscal responsibility, so get the uk books in order, it cannot be too much of a splash the cash budget. secondly, he has got to set out a plan that relaunches the uk after covid and after brexit. initiatives to get people back into work, skills, retraining a lot on investment. thirdly, he needs to think about how he is going to get the government's political priorities back on track after such a challenging period. lots of the budget will be focused on these sorts of investments, levelling up initiatives, lots of projects aimed at growth and growth across the uk. lots to watch out for. he is going to
try and do lots of conflicting things in the sense he is trying to balance the books and show he is balancing the books, whilst also finding money to spend on those important priorities. it spend on those important priorities-_ spend on those important riorities. , . , ., priorities. it very much is a tiuht priorities. it very much is a tight rape _ priorities. it very much is a tight rape act _ priorities. it very much is a tight rope act he _ priorities. it very much is a tight rope act he is - priorities. it very much is a | tight rope act he is walking. in terms of that huge amount that was borrowed last year, how quickly do we think the chancellor will want to tackle that? in terms of the levels of cuts that may need to be made? i don't think this is going to be a budget that is looking like a budget of austerity, but he has got to show there is a plan and things are moving in the right direction. one of the factors that helps him is that we have had a very big gdp shock last year, but this year growth in the uk economy has been a lot stronger than the burrowing office had forecast. he has got what is called a
growth windfall to play with, that means he can use some of that means he can use some of that to meet some of these spending objectives, put things in place like skills and greater investment, but also at the same time, get debt to gdp on a trajectory that is showing on a trajectory that is showing on a trajectory that is showing on a downward move on the back end of his forecast. he may look to reinforce that with some fiscal rules, in particular ties him to that debt as a share of uk gdp by a particular point in time. that is something to look for later today. is something to look for later toda . , , , ., today. 0k, 'ust brief question, how does — today. 0k, just brief question, how does the _ today. 0k, just brief question, how does the health _ today. 0k, just brief question, how does the health of - today. 0k, just brief question, how does the health of the - today. 0k, just brief question, how does the health of the uk | how does the health of the uk economy look to you compared with other major economies which have also been hit by the pandemic?— which have also been hit by the pandemic? the economic shock that was really _ pandemic? the economic shock that was really significant, - that was really significant, last year it took a very big blow in gdp terms, but the
growth this year has been pretty strong. the uk economy has been pretty resilient. that certainly helps the borrowing position. the starting point, given the big gdp shock, the uk was one of its worst, where big burrowing compared to its peers. but now we are growing, pretty rapidly if not at pre—pandemic size for the economy, which is good news. there is a big hill to climb but the uk is starting on a decent footing there. victoria, thank you _ decent footing there. victoria, thank you very _ decent footing there. victoria, thank you very much - decent footing there. victoria, thank you very much for - decent footing there. victoria, thank you very much for that. l let s get some of the day s other news. mcdonald's workers walked out at restaurants in 12 us cities in protest at the fast food giant's handling of sexual harassment claims. organisers, who have held five strikes over harassment since 2018, say mcdonald's has "largely ignored" frontline workers who complain. cashiers and cooks walked out in chicago, detroit, houston and miami among other
places on tuesday. australia has confirmed it will lift a ban next week that has prevented its own citizens travelling overseas without permission. australians have spent 19 months under some of the world's strictest border rules, in an effort to keep out covid. from the 1st of november people will no longer need an exemption to leave the country — provided they are fully vaccinated. it's a big week for tech companies, with many of the household names releasing their latest financial results. among them, alphabet, which is the parent company of google, and it announced a1% jump in revenues to $65 billion for the third quarter. alphabet�*s profit over the period was $21 billion, boosted by a strong performance from its cloud division. elsewhere, twitter missed market expectations due to disappointing advertising revenues, after apple
the fact apple is looking things down, doesn't impact them so much. but twitter,, they don't have any lavage, they don't have any lavage, they don't have their own mobile platform to control what data is being tracked versus not. it is definitely concerned for some companies. other companies are weathering the storm. in companies are weathering the storm. , ., ., storm. in terms of what twitter does next. _ storm. in terms of what twitter does next. it — storm. in terms of what twitter does next, it has _ storm. in terms of what twitter does next, it has started - storm. in terms of what twitter does next, it has started to - does next, it has started to try and add more services, just talk about some of those? the? talk about some of those? they are t in: talk about some of those? they are trying to — talk about some of those? they are trying to push _ talk about some of those? they are trying to push a _ talk about some of those? they are trying to push a more - are trying to push a more personalised twitter, which could go a lot of different ways. facebook has run into some difficulties going on the hardcore personal site, making it more political for some people than they want to see. but i think they are trying to turn twitter into less of a timeline of people you follow and may be more connected to current events, stuff like that. i have seen early versions of the twitter app,
more focused and looking more like facebook than it currently does, which is an interesting move. ., ., ., move. intriguing. you have had a sneak peek- _ move. intriguing. you have had a sneak peek. thank— move. intriguing. you have had a sneak peek. thank you - move. intriguing. you have had a sneak peek. thank you very l a sneak peek. thank you very much. shares in robinhood fell more than 8% in after hours trading. the online brokerage which claims to be on a mission to "democratise finance for all" blamed a drop in crypto trading for lower revenues. from new york, here s the bbc s michelle fluery with more. the investing app known for its easy—to—use interface appears to have lost some of its appeal. robinhood didn't report any new user growth. customers with funded accounts at robinhood actually fell by 100,000 to 22.1; million in the third quarter. analysts had expected the user base to rise. and while meme stock trading and dogecoin stole the show in the first half of the year, those trends appear to have run out of steam. simply put, there was a lack of viral events to drive growth and that hit the bottom line.
revenue tied to cryptocurrency trading tumbled 78% to $51 million from 233 million in the quarter before. and robinhood said that barring any change in the market environment, the headwinds that drag down the last quarter would persist until the end of the year. with little reason for cheer, those comments only drove the stock lower. it looks like tensions between the us and china are flaring again, after washington revoked the us licence of one of china's biggest telecoms companies citing "national security" concerns. the white house has ordered china telecom to stop providing services in america within 60 days. joining me now is suranjana tewari from our asia business hub of singapore. how big a deal is this for china telecom, how much business do they do in the us?
it is, china's largest telecoms company and around the world it has 335 million subscribers in more than 100 countries. but it is not that big in the us. it has been there for nearly two decades, but among its customers are american, chinese americans, as well as tourists who go there. 2 million chinese tourists a year and students and businesses providing services to the chinese government facilities in the us as well. that is what the us is worried about. the us regulator says the company could be subject to exploitation influence and control by the chinese government. it is worried about how it accesses stores and disrupts data. also about us communications and how it could disrupt that. the us says that could be used to engage in things like espionage and other harmful activities
against the us. the us officials say it was highly likely to be forced to comply with chinese government requests without any independent judicial requests without any independentjudicial oversight. china telecom has called the decision disappointing and it plans to pursue all available options while continuing to serve its customers. the us, as you say, is moving against a number of chinese telecom companies, huawei being the most famous, saying it is a national security concern, said te, also among them. this makes it hard for us businesses to expand in some technology like five g networks.— five g networks. ok, thanks very much _ five g networks. ok, thanks very much indeed. - stay with us on bbc news, still to come. oil prices continue to surge, hitting their highest level since 2014 — as supply chains fails to keep up with rising demand.
indira gandhi, ruler of the world's largest democracy, died today. only yesterday, she had spoken of dying in the service of her country and said, "i would be proud of it. "every drop of my blood will contribute to the growth of this nation." after 46 years of unhappiness, these two countries have concluded a chapter of history. no more suspicion, no more fear, no more uncertainty of what each day might bring. booster ignition and lift off. of discovery with a crew of six astronaut heroes and one american legend. - this is beautiful. a milestone in human history. born today, this girl in india is the seven billionth person on the planet.
this is bbc world news, the latest headlines... a vote in the brazilian senate reccomends, president bolsonaro face criminal charges over his handling of the pandemic. moldova and russia enter a fresh round of negotiations — with moscow still threatening to force energy giant gazprom to cut off gas supplies. the boss of the world's biggest investment firm is warning there's a "high probability" that a barrel of oil will hit $100. prices for brent crude have risen to around $85 amid a global energy shortage. the warning from blackrock�*s ceo larry fink came at a big investment conference in saudi arabia known as "davos of the dessert" from where our middle east business correspondent sameer hashmi sent this report. inflation, slower economic
growth and energy crisis, these were some of the topics that dominated day one of the fii summit here in riyadh. the top bosses of goldman sachs, blackrock, blackstone in a panel discussion underlined the fact that the world is going through an energy crisis and it's important to recognise that, because that could lead to higher inflation. and they also didn't rule out that oil could touch $100 a barrel, which could be a bigger crisis, especially at a time when there is an energy shortage. the other thing that has been discussed is climate change and talking about achieving net zero carbon emissions. saudi arabia just announced two days ago that they are aiming to reach there by 2060, but at the same time have been highlighting the fact that it's important to recognise, given the scenario right now where there is an energy crisis that fossil fuels cannot be demonised completely because they are needed and they are not going away anytime soon. it is important to adopt a balanced approach,
and that was pretty much the consensus across many panel discussions over here where you have people from across the globe, investors, entrepreneurs and some marquee chief executives from different companies that attended this event. the bottom line here that came out at the end of day one is, it's good to achieve those targets, to be on track to achieve those targets as far as climate change goes and achieving those co2 emissions levels, zero targets. but at the same time it's also important to keep investing in fossil fuels because there will be demands over the next ten, 15 years, after which it expected that it will start to taper. but it's important to stay on track and not lose sight of what the short—term goals are. staying with high oil prices, we're nowjoined by david madden, who's a market analyst at equiti capital. how analyst at equiti capital. much of an impact would
this how much of an impact would this have more widely if the price of oil hits $100 a barrel?_ price of oil hits $100 a barrel? , ., ., ., barrel? first and foremost for consumers — barrel? first and foremost for consumers it _ barrel? first and foremost for consumers it it _ barrel? first and foremost for consumers it it would - barrel? first and foremost for consumers it it would be - barrel? first and foremost for consumers it it would be a - consumers it it would be a problem, to say the very least. in the uk, headline inflation currently dipped to 3.1% in september, and it was 3.2% in august, highest level in nine years but the cost of living is 3.1%. keeping in mind it was only 1.5% back in april. it gives you an indication of how quickly the cost of living has increased in the past five months. should we see a continuation in the major rally we have seen in oil and should we have seen in oil and should we had the $100 per barrel mark, it is likely it could push inflation even higher. it is only a few days ago we heard from a member of the bank of england that inflation in the uk could target 5% this time
next year. so essentially for consumers and individuals, it is likely to eat into savings, eat into their incomes. for businesses, higher costs will be passed on, squeezing profit margins or perhaps deter employers from taking on new staff. ., staff. david, we are approaching - staff. david, we are approaching the - staff. david, we are i approaching the global staff. david, we are _ approaching the global climate summit in glasgow, i wonder if something like high oil prices could be that motivated the individuals, countries, companies may need to switch to cleaner, greener perhaps cheaper energy sources? absolutely. particularly if you are a country that is a net importer of energy. for those countries which are exporters of energy, saudi arabia, hoping to be carbon neutral by 2060 in the intro. with this scenario, it is a balancing act from
those who benefit from the high price of oil and country to are large importers of oil. they will be focusing on shifting away the demand and focus rather on the need for fossil fuel, such as oil and pushing more towards greener energy. if you look at the wider political climate in the last number of years, it is heading in that direction towards renewable, green energy sources. david, we must leave _ green energy sources. david, we must leave it _ green energy sources. david, we must leave it there, _ green energy sources. david, we must leave it there, thank- green energy sources. david, we must leave it there, thank you . must leave it there, thank you very much. now, they say it's lonely at the top, but can it be more than that? can leaders of big, global companies become trapped in a kind of bubble, where they don't hear the advice they need to hear — including on the most pressing issues, like climate change? one business leader thinks so, he's been sharing his ceo secrets with us. avoiding the ceo bubble is essential for learning and for innovation.
as ceos we have to recognise that a bubble will form around us, that people might be less likely to tell us what they really think, to challenge and push back, to disagree. and it's on all of us as leaders to build organisations that are diverse, so that we have different perspectives in the room and to create a culture where people will speak up, will challenge, come up with new ideas and feel free to raise them, even if they turn out not to be great ideas. if i personalise this, climate change is a great example. we were already acting to address climate change, but not as boldly as we needed to. and i had partners in vcg who pushed back very strongly on me, educated our broader
partnership, they turned out to be right, it did change the trajectory of the way we've acted much more boldly. they helped me break through my own bubble and they helped bcg get better as a result and for that, i'm eternally grateful. employees are turning to robots for careers advice because employers aren t listening to them. that s what a new study into the career prospects of employees around the globe has revealed — that nearly three quarters of workers think robots can support their careers better than humans because employers aren t listening to them. the research, which surveyed 111,000 employees, found than two thirds of them would make life changes based on robot recommendations. joining me now is cormac watters, who's the executive vice president of oracle. what exactly are we talking about, robot career advisers? how does this work?- how does this work? hello, it is real. how does this work? hello, it is real- the — how does this work? hello, it is real. the survey _ how does this work? hello, it
is real. the survey has - is real. the survey has produced some results which are very relevant and timely, particularly as a result of the last 18 months with covid. what it has shown is the global workforce is feeling disconnected, a little bit out of control and lonely. employees are saying, about 75% are saying they feel stuck professionally and not happy at work. they are looking for new ways to advance their curries and they want technology to help define their future roles. one of those is turning to artificial intelligence. we use them in our home lives without thinking, satnav, alexa and so on. they believe that a robot will be much better placed to listen dispassionately and offer impartial advice on how best they can progress their own personal career. we have 'ust own personal career. we have just seen _ own personal career. we have just seen some _ own personal career. we have just seen some images - own personal career. we have just seen some images of - just seen some images of literal physical robots, but it sounds like what you are saying it is an algorithm or artificial intelligence matching them to the right career move to them? i don't
think we _ career move to them? i don't think we will— career move to them? i don't think we will see _ career move to them? i don't think we will see robots - think we will see robots skirting around the holes of officers, around the coffee machine looking for a conversation. but it is artificial intelligence, the ability to listen constructively based on masses amount of data to determine what other skills one needs, what other skills one needs, what roles are available and how that individual can go after improving themselves to get it. after improving themselves to net it. , �* ., ., get it. isn't there an emotive element. _ get it. isn't there an emotive element. he _ get it. isn't there an emotive element, he suggests - get it. isn't there an emotive i element, he suggests someone with a career move, they wince and look unresponsive, and maybe that is something a human can work out that a robot cannot?— can work out that a robot cannot? . ., . cannot? on the counter cited that, the _ cannot? on the counter cited that, the feedback _ cannot? on the counter cited that, the feedback from - cannot? on the counter cited that, the feedback from the l that, the feedback from the survey is saying employees are feeling that employers are not listening to them. they may do the appraisal conversation but it is only ticking the box. ok. it is only ticking the box. ok, i am listening _
it is only ticking the box. ok, i am listening to _ it is only ticking the box. ok, i am listening to you, - it is only ticking the box. ok, i am listening to you, but - i am listening to you, but we're almost out of time so i will thank you and say goodbye. thank you for watching, i will see very soon. goodbye. hello there. it is going to stay very mild over the next few days but there is more rain in the forecast and the rain is moving southwards at the moment so the wetter weather in the next few days, more likely to be in the southern uplands of scotland, cumbria in north west england and by thursday, for western parts of wales and some flooding is likely as well. the main focus of the rain is on that weather front there, and ahead of it we are drawing up the winds all the way from the tropics, over the azores and into the uk, which is why it's so unusually mild. in northern ireland on tuesday, temperatures reached 17 degrees ahead of the rain. it's normally around 11 or 12 degrees at best at this time of the year. and these are the temperatures we're starting with on wednesday morning, a very mild 15 or 16 degrees. but this is where the rain is and it's not going to shift
position through much of the day. we've got the rain threatening to come back into eastern parts of northern ireland, up towards the central belt of scotland. most of the rain in southern scotland, north—west england — especially cumbria and into north west wales. north of that rain band some sunshine, a few sharp showers south of the rain band like tuesday, a lot of cloud around, a bit of sunshine from time to time. those temperatures could be even higher — around 18 celsius. but that rain is going to be continuing throughout the day across southern scotland and north—west england. by the end of the day, 90 millimetres possibly in the southern uplands, may be double that over the higher ground in cumbria, which is why we are going to see some impact and that wet weather continues overnight as well. that stream of warm, wet weather coming in on that weather front. the position of the rain will fluctuate a little bit and we may start to see a few changes on thursday. scotland and northern ireland, perhaps brightening up a bit more with some showers — these could be quite heavy, mind you. still got that rain across some parts of southern scotland, northern england, wales and the south—west of england this time, but ahead of it through the midlands,
east anglia, the south—east it's still dry and bright and those temperatures hitting 17 degrees. but the wetter weather continues overnight. those weather fronts are still on the scene, perhaps forming an area of low pressure. i think the details may change as we head into friday, it's getting rather more messy. looks on the whole like it's going to be a day of sunshine or longer spells of rain. it may start to brighten up across more of the country, western areas turning a bit drier. but some of that rain pushing into the eastern side of england this time and temperatures won't be quite as high, they begin to fall away from the north west.
good morning, welcome to breakfast withjon kay and sally nugent. our headlines today. the countdown to the budget. the chancellor promises a "new age of optimism" but faces pressure to do more to help people struggling with rising living costs. but what about those promises to level up outside of london? i have brought the cypher to burnley to find out what people are hoping to hear from the chancellor later today. the queen pulls out of hosting a reception at the global climate summit in glasgow on medical advice. a perfect ten for the lionesses as england show latvia no mercy in their world cup qualifier