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tv   World Business Report  BBC News  October 28, 2021 5:30am-6:01am BST

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this is bbc news with the latest business headlines for viewers in the uk and around the world. cheers to the uk hospitality sector, as yesterday's budget delivers a cut in business rates as well as lower taxes on sparkling wine and draught beer. slowdown or not? we take the pulse of america's economy ahead of its third quarter gdp release. and e—commerce giant ebay exceeds analysts predictions and we find out how one plumber in england is pedalling a message to go green. hello and welcome to audiences
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in the uk and around the world. first we start here in the uk where the chancellor, rishi sunak, delivered his budget wednesday. some of the most striking measures affecting business were aimed at retail, hospitality and leisure — among the sectors hit hardest by the pandemic. shops, pubs and gyms in england will be among businesses to get a 50% cut in their business rates. and the way alcohol is taxed is to be simplified — some drinks will be taxed more but duty on draught beers will be reduced by 5%. joining me now is steve alton, ceo, british institute of innkeeping. what do you make of the measures announced yesterday by the chancellor — broadly welcome? will they help your sector miss it was welcome recognition of the social value of pubs in their communities and a couple of areas he spoke about, the cuts to business rates next
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year, one of the largest cost our members deal with, it is something we welcome and will allow our members to plan the economic recovery. specifically for certain pubs, local growers, where the public really is a place they feature their beers and presents a very special and different experience, so overall very welcome because right now pubs facing one of the most difficult period they have ever faced, with a huge cocktail of increased costs, trading is down and it is looking tough, so it was welcome news but there is more to be done. the chancellor's _ there is more to be done. the chancellor's estimate is that a cut in duty on draught beer would bring the price of a pint by 3p, a pub chain recently said this week that would
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higher wages, they need to put price up by 13p, and i know accountant but that means a net increase for those who are going to look up who have not had a wage rises and his other bills are rapidly rising.- bills are rapidly rising. yes, ubs bills are rapidly rising. yes, pubs have _ bills are rapidly rising. yes, pubs have difficult - bills are rapidly rising. yes, pubs have difficult choices i pubs have difficult choices ahead and there are significant costs to food and drink, over 10%, costs to food and drink, over io%, wage inflation is come through as well and operators have been facing increasing wages to face the staffing issue in pubs. if you go around, they are really struggling for staff and are closing certain days of the week, limiting their trading period and right now they need every opportunity to trade, so they have got these costs hitting them, utility costs going up, and they fear that they are going to have to pass some of this onto the consumer. equally, they are conscious that their customers are also facing these increased inflation costs across energy
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bills and general day—to—day expenses. they are very concerned but will do all they can to contain the tries. as you have said, if you look at sons, they don't quite stack up where the operational costs of pubs have gone to very high levels, so it is a very welcome cut in duty and it is great at long last that draught products in pubs specifically have been recognised as an important thing, so we are hopeful it is the start of something in terms of supporting pubs on a long—term basis. of supporting pubs on a long-term basis.- of supporting pubs on a long-term basis. are pubs lookinu long-term basis. are pubs looking at _ long-term basis. are pubs looking at a _ long-term basis. are pubs looking at a better - long-term basis. are pubs looking at a better year i long-term basis. are pubs - looking at a better year ahead? other fewer concerns about pubs going under?— going under? right now we are lookin: at going under? right now we are looking at difficult _ going under? right now we are looking at difficult trading - looking at difficult trading period through the winter, there is no doubt, staffing issues, supply chain issues, and you have to remember these guys have been closed for a significant period in the last couple of years and many have debts over £50,000, and it is
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after using all their reserves and personal savings to get them through, so they will have to trade better than 2019 just to trade better than 2019 just to stand still and recover their businesses, pay back the debt. to these announcements yesterday were welcome but hopefully the start of a longer—term change we need, so business rate is something great, but we need long—term reform, and the lower rent and lower vat must be continued on a long—term basis to support trading of these pumps as they go back to what the chancellor says, the unique elite mac represent something unique in the communities they serve and they need the support. —— they represent something unique. it is a long way until easter next year. is a long way until easter next ear. ., ~' is a long way until easter next ear. ., ~ , ., y is a long way until easter next ear. ., ~ ,, , . all eyes will be on the latest economic growth figures from america later.
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the big question is how it stayed between june the big question is how it stayed betweenjune and september when the delta wave of coronavirus hits. no signs are that economic activity is picking up again. one company that knows all about how the pandemic caused the instant collapse of business followed by a fast turnaround is the car rental giant hertz. samira hussain has been talking to its ceo, mark fields. within two months of the pandemic taking hold in america, hertz filed for bankruptcy. it was drowning in debt and covid—19 pretty much obliterated any business. fast forward to today and the us car—rental company is an example of a pandemic turnaround. snap back in travel, constraints in the industry on the number of vehicles, that obviously has benefits at least financially to companies like hertz.
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clearly it does — the company is out of bankruptcy and is now spending billions of dollars buying tesla's electric cars for its fleet. it has partnered with uber to allow drivers of the car hailing app to rent cars at a discounted price. and it is also partnering with the online used car retailer ca rva na to sell their cars. we continue to believe that the consumer is going to continue to be quite healthy in terms of their personal balance sheets and that is going to drive a lot of demand. and then when you take it to hertz�*s business, clearly travel is integral to our business, and people, they are tired of being cooped up. hertz remains optimistic, and with reason, as people are travelling more. but the emergence of varying strains of the coronavirus could easily derail the economic recovery country ——the country and the world has seen so far. labour shortages continue to plague restaurants and retailers, shipping delays are leading to some store shelves being bare. and ongoing supply disruptions
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show no signs of easing. in fact, many in corporate america believe these supply chain constraints will last for at least a year, if not longer, which does not bode well for a country that depends heavily on consumer spending for its economic growth. joining me now is pete earle economist and research fellow at american institute for economic research. what you expect from the numbers later?— what you expect from the numbers later? thank you for havin: numbers later? thank you for having me- — numbers later? thank you for having me. the _ numbers later? thank you for having me. the date - numbers later? thank you for having me. the date once - numbers later? thank you for having me. the date once we | numbers later? thank you for. having me. the date once we get today our unemployment —— our unemployment and gdp. racing 92 engine 80,000 jobless claims, which would be a good number, because we have had three readings below 300,000 in the last time we had that was march 2020, just as the pandemic began. ——... we had a 6.7%
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totally growth and the estimates are gdp growth actually slowed to 2.7% in the last quarter and that is more to do with the shipping problems than some logistical issues that have risen. said the global— issues that have risen. said the global supply _ issues that have risen. said the global supply chain - the global supply chain problems are likely to be reflected more so than the delta variant?— delta variant? yes, that is what we — delta variant? yes, that is what we believe _ delta variant? yes, that is what we believe right - delta variant? yes, that is what we believe right nowj delta variant? yes, that is - what we believe right now and my personal view is that gdp is lower than the estimate. the estimate was for 2.7%, but i think it will closer to 2% at 2.2%, is quite a drop, but hopefully that recedes. there will be lots _ hopefully that recedes. there will be lots of _ hopefully that recedes. there will be lots of tension - hopefully that recedes. there will be lots of tension about | will be lots of tension about what these numbers mean in terms of the next decision by the us federal reserve and the central bank on interest rates and also how quickly they take the support they have been into
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the support they have been into the economy through the pandemic, but what you think we might see in their thinking based on the health of the economy that will get today? the fed can't raise rates because they will be adding money to the economy while saving it back out with higher rates, so they can't do that. once they end the taper, which they said they would do in november or december, they can start raising rates in the summer. they have indicated july they are set to do so, and the concern is that if inflation, which is rising at the fastest rate since 1991, where to start rising faster, it would put pressure on the bed to raise taxes and pulled the economy. == bed to raise taxes and pulled the economy.— bed to raise taxes and pulled the economy. -- it would put pressure _ the economy. -- it would put pressure on _ the economy. -- it would put pressure on bed _ the economy. -- it would put pressure on bed to _ the economy. -- it would put pressure on bed to raise - the economy. -- it would put l pressure on bed to raise taxes.
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let's get some of the day's other news. semiconductor maker global foundries aims to raise more than $2 billion in its initial public offering, according to a reuters report. this gives it a valuation of around $26 billion, one of the biggest stock market debuts in the us this year. the chip—maker is the world's third largest by revenue, trailing behind taiwan's tsmc, and with samsung of course in first place. us car—maker ford has posted a drop in quarterly profits. but analysts had expected that because of a global chip shortage that has dented productions for global car—makers. ford's third quarter results were still nearly double of what analysts had estimated. samsung, the world's biggest chip and smartphone maker, saw operating profits for the july to september quarterjump nearly by 30% — the highest in three years. let's go to our asia
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business hub in singapore, where suranjana tewari is following the story. what is behind the numbers? samsung is seen as an industry bellwether because it supplies to big tech firms like apple and sony, so with this 28% jump in operating profits between july and september, it seems quite good, and it is also its highest quarterly profit in three years, $10.5 billion. an increase of $1 billion since last year. they are best known for smartphones, last year. they are best known forsmartphones, but last year. they are best known for smartphones, but these results are driven by memory chips inside mobiles, personal computers and servers, and it saw a profit surge of 8% year—on—year. so how has it been so successful? it is still benefiting from that close to covid booing. it recovered on the world economy but tech companies have
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boomed and samsung's performance has seen its demand increasing. performance has seen its demand increasinu. ., , ., increasing. people are continuing _ increasing. people are continuing partly - increasing. people are continuing partly to i increasing. people are i continuing partly to work increasing. people are - continuing partly to work from home and from the cloud. that said, it expects prices of chips to keep on being under pressure. some will start going back to the office, economies will reopen and therefore the price of chips might behind, continuing to be high. samsung did give stark warning about the chip shortage, it said it is likely to affect smartphone customers in the current quarter and producers of goods from televisions to cars are facing severe shortages of chip arts, but the higher demand after the coronavirus has also put pressures on other parts of the supply chain. there are component shortages, labour shortages, logistic problems and delays at factories. samsung of course launched new
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smartphones this quarter and profits slumped by 24% and they said that was down to hire margin cost and component shortages, but it is expecting holiday shopping to boost demand in mobile devices for this quarter. demand in mobile devices for this quarter-— this quarter. thank you very much. thank you very much. stay with us on bbc news, still to come... we find out how one plumber in england is pedalling a message to go green.
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this is bbc world news, the latest headlines... new research suggests logging and wildfires could be causing some of the world's biggest forests to produce more carbon than they absorb. lockdowns come into effect in parts of
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russia as it registers a record number of covid deaths and infections. earnings season is in full swing — plenty of the world's biggest companies announcing their results. manufacturers including general motors, general electric, 3m and boeing face logistics headaches and higher costs due to hold ups in global supply chains. those are likely to persist into next year. on the other hand, big tech firms are powering ahead reporting strong earnings. joining me now is fiona cincotta from city index. it seems like at the moment in terms of earnings, there is a two speed situation from attack in the fast lane and everything
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manufacturing struggling like manufacturing struggling with these pick—ups. —— tech in the fast lane. with these pick-ups. -- tech in the fast lane.— the fast lane. correct, so what we are seeing _ the fast lane. correct, so what we are seeing is _ the fast lane. correct, so what we are seeing is companies i the fast lane. correct, so whatl we are seeing is companies and manufacturers very much struggling to bridge that difference and gap between supply and demand of parts as economies reopen. so that is being reflected, we are seeing that in part in shortages, and that in part in shortages, and that as well as hitting profits in these companies, so if we think about boeing, for example, they missed their revenue expectations, and then you have ge, who have had to lower their forward you have ge, who have had to lower theirforward guidance, and then general motors, who have seen profits drop by a0%,
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or because of the supply chain bottlenecks they have seen. it is not expected to stop soon, so it is expected to continue as the global economy worked their way through this problem. we have had the tech giant reporting some really impressive numbers, microsoft, for example, now trading again at an all—time high. they beat their earnings revenue, as did alphabet from google. there are very strong earnings come from the tech sector. it is expected to slow slightly but that is expected given the boom we have had from those companies. timer;r had from those companies. they concern the _ had from those companies. they concern the markets _ had from those companies. they concern the markets and - concern the markets and investors is the higher costs because of the failure of supply to keep up with demand due to the global supply chain problems and that could fuel
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inflation. , , ., , inflation. yes, this does a - ear inflation. yes, this does appear to _ inflation. yes, this does appear to be _ inflation. yes, this does appear to be a - inflation. yes, this does appear to be a very - inflation. yes, this does appear to be a very big l inflation. yes, this does - appear to be a very big focus for the markets as well. we know that inflation is extremely high currently and it does look like it could continue going higher if manufacturing firms specifically start to pass on those increases they are experiencing because of supply chain bottlenecks. because the economy is in a very difficult situation where we have persistent elevated inflation and slowing growth, and that will be a place where the central bank is going to not want to be.— want to be. thank you very much, fiona. _ thank you very much, fiona. now, with all eyes on the cop26 conference, people are thinking about ways to save the planet. but it's notjust about politicians and big businesses making radical changes. it's also about what individuals and small businesses can do. here's how one plumber in england is trying to make a difference.
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morning! a lot of people i know that are tradesmen do not like the stigma attached to being a white van man. being aggressive and fat and smelly, wearing a vest, it is not something they want to be associated with, you know? the local city council ran a scheme where you can apply for a grant or loan for a cargo bike. ijumped straight on and applied. peak times, obviously rush—hour, school run time, i can get through a lot quicker. just having the space to think about things and go
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on the cyclepaths and away from the busy traffic, it really helps your mental health. but also being physically active is super good for you and with the electric motor on these bikes, you can do as much or as little effort as you want. there are so many parking restrictions and permit areas around here in the inner city and i can basically park where i want as long as i'm not blocking path, it is perfect. my fuel bills have come down by over half on the van. i still have to use the van occasionally to do biggerjobs, carrying boilers around and radiators and such, but it is a massive saving. i'm hoping that people will be motivated to make the changes that are needed, and if they see me doing myjobs on a big bike like this, they could say, "oh, my gosh, that is impractical," then they can look at themselves and go,
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"well, what is my excuse?" online marketplace ebay exceeded market estimates for quarterly revenue on tuesday as the pandemic accelerated the shift towards a digitised retail sector. more of us shopping online basically. revenue rose to $2.5 billion in the third quarter from $2.26 billion the previous quarter. but with the reopening of physical retail, how will that hit the likes of ebay? and ebay is also pushing into new categories, including advertising and payments processing. but e—commerce giants like amazon are also challenging ebay's market position for small businesses. joining me now is chris payne, financial advisor at payne capital. what is your take on the ebay results? , . results? they did exceed expectations _ results? they did exceed expectations but - results? they did exceed expectations but did - results? they did exceed expectations but did not| results? they did exceed - expectations but did not exceed by much and frankly the stock price on wall street did not love it. it pulled back. but
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taking the long view, ebay has greater things in the pipeline, for example, those managed payments making it easierfor sellers to get paid much more quickly. the other thing i like is that they are gearing their advertising more towards promoting products on the auctions rather than promoting advertising, so those two things will help ebay long—term and help them create more of a buzz around their business rather than their competitors like amazon.— rather than their competitors like amazon. and that is a big thing with _ like amazon. and that is a big thing with amazon _ like amazon. and that is a big thing with amazon trying - like amazon. and that is a big thing with amazon trying to i thing with amazon trying to encroach on their territory. exactly, intent on taking a niche market, ebay is promoting its bigger sellers, and one of the things they are doing now, high—end products, they are offering an authentication service. so when you are bidding on these different products, ebay is essentially authenticating and making sure these products are real whereas amazon does not offer those
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services. d0 amazon does not offer those services. , ., ~ services. do you think the secret for _ services. do you think the secret for ebay _ services. do you think the secret for ebay is - services. do you think the secret for ebay is the - services. do you think the j secret for ebay is the very niche items, one—off pieces of jewellery perhaps or a limited edition pair of trainers, is that where it can perhaps make a bigger margin on its profits? absolutely. to your point, things like jewelry, absolutely. to your point, things likejewelry, or one—off, specific things, things that are more rare will add more margin and be whole idea is ebay takes a bigger commission out of what the sellers are selling, whereas amazon are selling the so—called trinkets. in amazon are selling the so-called trinkets. in terms of the pandemic, _ so-called trinkets. in terms of the pandemic, that _ so-called trinkets. in terms of| the pandemic, that presumably help ebay, people spending more time at home, clearing out the spare room and thinking, i might get a dollar or two if i sell at online. do you think they will suffer now people are spending less time doing those things? spending less time doing those thins? , , ., ,
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things? yes, but that is true for all online _ things? yes, but that is true for all online businesses - things? yes, but that is true for all online businesses and amazon has experienced that situation, but the thing that will make ebay different is the fact that you have got a supply chain issue, here in the united states, we have ships in port waiting to off—load goods. for sellers and the likes of ebay where they will have items where they will have items where they will have items where they can mark up prices, because things will be in demand because you cannot get them in normal times. {lila demand because you cannot get them in normaltimes. 0k, thank ou for them in normaltimes. 0k, thank you for that- _ you can reach me on — twitter i'm @benmboulos thank you for watching, i will see soon. goodbye. —— i will see soon. goodbye. —— i will see you soon. —— i will see you soon. hello, 24—hour rain totals have now surpassed 230mm in the wettest parts of the cumbrian hills, and the met office amber
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warning for rain continues across cumbria and south—west scotland into thursday. there's more rain to come and, as all that water feeds down through the rivers and streams, the risk of flooding and disruption increases from a weather front which is very much still around in the day ahead, pulses of energy running along it just enhancing the rainfall. so, there will be more rain to come on a very wet day in cumbria, for a time more widely across southern, central and eastern scotland, from the eastern side of northern ireland, before it eases here, and pushing into more of north—west england and wales, and south—west england as the day goes on. northern scotland, sunny spells and a chance for showers, brightening up in northern ireland. largely dry through central and eastern parts of england. these are your wind speed averages — gusts are high, particularly with the rain band along irish sea coasts, gusting near 50mph in places, and the higher temperatures will be those parts of eastern england that break out into a few sunny spells — we could see 18 celsius again. there will be further rain overnight thursday into friday,
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but the idea is it's starting to move further east on another very mild night. and on friday, that rain will reach parts of eastern england that have stayed dry through much of the week. there'll be another spell of rain moving through scotland, but, as it all begins to pull away eastwards, it will be much drier to end friday, and particularly in those areas that have seen so much rain so far this week. at the same time, temperatures are coming down a few degrees. we're not finished with the rain, though — low pressure still very much in charge for the weekend, and another band of wet weather will arrive friday night into saturday. it does look as if it's moving a little quicker now, this, so it will bring a spell of rain overnight into saturday, but clears away more readily on saturday, allowing a drier, brighter day after the rain with a few showers around. again, notice our temperatures are edging downwards. it looks at this stage as if sunday will be the wetter day of the weekend.
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as low pressure feeds in yet more rain, some will be heavy as it moves its way northwards. the wind starts to pick up again, as well, and even after the rain, there'll be some heavy showers around.
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good morning, welcome to breakfast with charlie stayt and naga munchetty. our headlines today. a £150 billion spending spree from the chancellor, but a warning that high taxes and inflation mean living standards won't improve.
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what will it mean for people in burnley or berwick, singled out in a speech yesterday as part of the governors's levelling up? how will changing westminster affect people here? —— people in bury? we'll bring you analysis and reaction to the budget throughout the morning, including an interview with the chancellor rishi sunak live at 7.30 police say the gun fired on a film set by actor alec baldwin killing a colleague contained a live round. it's a league cup without manchester city. the holders have been knocked out for the first time in five years —

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