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tv   World Business Report  BBC News  November 1, 2021 5:30am-6:01am GMT

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future. victoria gill, bbc news, glasgow. hello again. you are with bbc news. time now for the top business stories. i'm sally bundock. as the cop26 meeting kicks off, we look at how investors can make sure their cash actually goes to green projects. japan's governing party has retained power with fumio kishida in charge was not what does he have in store? the deal does not cover experts from the uk...
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as cop26 in glasgow gets under way, companies in the financial and investment centre has to —— are saying to have a huge role to play in creating a greener future. the demand for esg funds, that is ethical social and governance, is dramatically increasing with just over $1 trillion invested in europe alone. but how do they ensure their green values are being met and they are not just their green values are being met and they are notjust being green washed? can you answer that question, how do you make sure when you invest in a fund thatis sure when you invest in a fund that is labelled as esg actually that is what you are investing in?— investing in? that is one of the most — investing in? that is one of the most important - investing in? that is one of i the most important questions investing in? that is one of - the most important questions we face the stop we bring together £10 trillion of assets from
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across the uk, working to drive sustainability and finance. i think one of the key questions we are often asked is exactly what you just said, how can we make sure these products are in fact delivering what is expected? that is core to the confidence and dump my confidence and dump my confidence in the entire system. something we need to do an awful lot of work to ensure we maintain that trust that the esg products you are getting, what is said on the ten, i suppose. we are working across the industry but also regulators to make sure when a fund is described as a sustainable or ethical or environmental or advertised as ethical credentials or environmental credentials, that fund actually delivers on those so that means regulating the way that different words are used. you might be surprised to hear that we are keen on more regulation because actually, regulation because actually, regulation in this area means that you can't use words like, "sustainable", unless you are talking the talk. that would help the leaders and drive leadership in this space and help people really going the
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extra mile to move their funds to greater into sustainability. within finance and ranking, et cetera, fund management, is there not their own code already or some sort of trademark where you as an investor can see yes, actually, these guys do mean business? absolutely. there is some incredible work being done. in fact in the run—up to this cop26, one of the most amazing things as members of ours and around the world are committing to net zero. trillions of dollars that are currently being managed by asset managers, pensions, banks, are now all committed to net zero has been one of the big successes, already, cop26 will stop there are already amazing investment issues... initiatives happening to demonstrate what is happening around sustainability so you definitely can believe a fund that says it is driving forward sustainability but we want to go the step further. we want
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regulators to do more, we want to do more as an industry and we want to address and build public confidence in this industry. public confidence in this industry-— public confidence in this indust. ., ., , ., industry. that those outside of our industry. that those outside of your organisation, _ industry. that those outside of your organisation, are - industry. that those outside of your organisation, are they - industry. that those outside of your organisation, are they in l your organisation, are they in agreement with you that more organisation is the way forward? it isjust organisation is the way forward? it is just such hard work, regulation obviously means huge amounts of paperwork and bureaucracy and it slows everything down and actually put some people off. the regulation _ put some people off. the regulation is _ put some people off. the regulation is it _ put some people off. the regulation is it has - put some people off. the regulation is it has to - put some people off. tue: regulation is it has to be joined up. what we're seeing potentially problematically at the moment and may be a starting point for addressing this, is different regulations and standards being applied in different countries across the world and i think while we are in of course a global marketplace for innovation, skills, headquarters of the most innovative companies, we shouldn't be in a global petition for standards, we should be considering definitions, shared across different countries and maybe the cop can be the starting point between different
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governments, internationally, rather than each country creating their own standards. we should a close eye. james alexander, thank you for your time. a scrap over steel and aluminium trade has been diffused over us —— between the us and european union. president biden has signed a deal to and tariffs on imports which were imposed by his predecessor donald trump. but uk exports are not covered in this agreement which british steelmakers says it puts them on the back foot. the us is the second largest market for the dish made steel. also the well�*s guest —— british made. the well�*s biggest steel maker chinese not happy this either. joining us now isjustin eric at stuart. lovely to see you, justin. —— why are we not included? fix,
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justin. -- why are we not included?— justin. -- why are we not included? �* , ., , ~ included? a big trading block like the eu. _ included? a big trading block like the eu, you _ included? a big trading block like the eu, you do _ included? a big trading block like the eu, you do a - included? a big trading block like the eu, you do a deal. i like the eu, you do a deal. when you are outside it, they try and change the deal and you have been left out. we have been left behind with all of this. it is one of those issues we have to contain real account of that every time they now do a deal, we won't be included at all and we may well be left behind as this shows. now we're going to have to see whether president is going to be positive towards the british, you say yes it is included in it or whether as a glutton of punishment, potentially, (speaks indistinctly). this (speaks indistinct ly) . this came in (speaks indistinctly). this came in 2018. _ (speaks indistinctly). this came in 2018. since - (speaks indistinctly). this came in 2018. since then nearly half of british steel exports have gone down by some 50%. and we know our steel industry in the uk is really struggling, for many reasons. tt the uk is really struggling, for many reasons. it struggles not only because _ for many reasons. it struggles not only because we _ for many reasons. it struggles not only because we put - for many reasons. it struggles not only because we put extra| not only because we put extra cost on the power they use in comparison to their competitors elsewhere in the world but all
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of this also means that when you see when rules change in regards to things like whiskey and cognac and things like that, which was almost like a trumpet like attitude in terms of punishment over trade and of course all that got one back. same thing would have happened quite easily had we been paying attention to the detail of this and realising actually, all the steel was seen as... we were (speaks indistinctly), unfortunately (speaks indistinctly), u nfortu nately you (speaks indistinctly), unfortunately you find you are in that scoop and we are out of it. we're going to have work very hard to say actually that they need our high—quality steel and we should include us in their trade. tn steel and we should include us in their trade.— in their trade. in the meantime, - in their trade. in the meantime, they - in their trade. in the meantime, they are | in their trade. in the - meantime, they are joining forces meantime, they arejoining forces to combat the might of cheeny are —— china, the well�*s biggest steel manufacturer and a lot would argue that is subsidised by the chinese state. they really have a task on their hands to come against china's cheap steel? tt on their hands to come against china's cheap steel?— china's cheap steel? it will be very difficult _
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china's cheap steel? it will be very difficult indeed. - china's cheap steel? it will be very difficult indeed. china... | very difficult indeed. china... it is not held by the west. the chinese are still is dirty steel. it may a different qualities and standards but you know, the standards of steel like dirty, it is (speaks indistinctly), no, what they need to be able to do is say actually there is so much still being produced in the world and whether there is a knock—on effect, it then pushes others out. that will be difficult. something like cop can help but nonetheless we need the jobs and with china, their economy showing signs of slowing down as well, there won't be a move to give awayjobs at the moment. to give away “obs at the moment.— to give away “obs at the moment. ., ., ~ ., . ., moment. to talk to you, nice to see you. _ moment. to talk to you, nice to see you. have — moment. to talk to you, nice to see you. have a _ moment. to talk to you, nice to see you, have a good _ moment. to talk to you, nice to see you, have a good week, - moment. to talk to you, nice to | see you, have a good week, see you soon. to japan next whether
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liberal democratic party been returned to power with a letter result than opinion polls were protect gang that may predict thing. japan's new prime minister fumio kishida one with a new reduced minority which means he can govern without relying on his smaller coalition partner. the ldp has dominated japanese politics for decades stop they handling of the pandemic and economy in recent times has been criticised, so what is ahead? mariko oi takes a look. fumio kishida's economic policy seems to be rather different from his predecessors. yoshihide suga and shinzo abe. they focused on the economy by creating more and creating inflation. a policy known as abenomics. the stock market doubled in value during their tenure. but critics argue those policies only made the rich richer. here is why. japan's
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average salary has partly grown in the next three decades compared to other developed economies. fumio kishida wants to narrow the wealth gap by raising the capital gains tax which is a tax on profits made on investments. i didn't go down well with investors. right after fumio kishida was chosen as his party's new leader, the nikkei 225 suffered an eight a losing streak in what became known as fumio kishida shock. the prime minister backtracked on raising the capital gains tax. some investors say it should be looking at other taxes. �* ,, �* should be looking at other taxes. �* ,, ~ , taxes. translation: japanese companies — taxes. translation: japanese companies have _ taxes. translation: japanese companies have posted - taxes. translation: japanese companies have posted recordl companies have posted record profits recently they have generated them overseas so it is difficult for them to offer a pay rise withinjapan but what they should do is invest the money they have earned to boost growth at home instead of
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hoarding the cash. the government can encourage this through taxation policies. when fumio kishida _ through taxation policies. when fumio kishida was _ through taxation policies. when fumio kishida was elected - through taxation policies. when fumio kishida was elected at i fumio kishida was elected at the new leader of the ruling liberal democratic party, he vowed to listen to the voices of the people. his decision not to raise the capital gains tax was chaired for his ability to listen to his voices of investors. now he has brought another victory to the ldp, voters will be closely watching whose voices he will be listening to next. that is mariko oi, of course. let's go to japan back to china where the personal information protection law comes into force today. it has some parallels with the eu cosmic gdp are, though there are important differences, too. it regulates the amount of information which can be held on natural persons within china and it applies to companies outside china, too. if a company such as microsoft,
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the new law appears to be the final straw for them so it has decided to shut down its social network link in china. isabel hylton is founder of china dialogue. good morning to you, isabel. just explain how it will work. how will chinese people be protected going forward? ~ ., , people be protected going forward? ~ .,, i. people be protected going forward? ~ forward? well, as you say, similar to _ forward? well, as you say, similar to gdp _ forward? well, as you say, similar to gdp are, - forward? well, as you say, similar to gdp are, this - forward? well, as you say, similar to gdp are, this is l forward? well, as you say, | similar to gdp are, this is a law that regulates how information on individuals can be collected, shared and used by companies. to that extent, you know, we are already familiar. it is based on a principle of informed consent, so without consent, a company can be penalised for collecting information. it has a universal jurisdiction so that if a company borders supply of goods and services into china and the law applies to them wherever the company's headquartered.
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the compa ny�*s headquartered. everyone the company's headquartered. everyone really has to pay attention to this. for non—compliance, there are quite heavy fines and so companies in china, as well as international companies, are currently scrambling to make sure that they are compliant. there has not been an awful lot of time to do that and i think the big exception, the big difference between gdpr, there is no limit on state surveillance or state use of information and the capacity of chinese, or chinese civil society to monitor the actions of the state, of course, is rather limited. took us through _ course, is rather limited. took us through why _ course, is rather limited. took us through why microsoft - us through why microsoft linkedin, decided to walk away, because china is such an enormous market. it is so important to most global companies. tt
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important to most global companies.— important to most global comanies. , ., ., ., , companies. it is an enormous market but — companies. it is an enormous market but it _ companies. it is an enormous market but it is _ companies. it is an enormous market but it is a _ companies. it is an enormous market but it is a market - companies. it is an enormous market but it is a market in l market but it is a market in which has come —— become steadily more difficult to operate. especially in the more sensitive areas of data and information. so for some companies, the government will just insist that data be stored in china, that there is a very, quite fierce cross—border transfer in place which we actually saw with chinese companies as well. it is going to affect things like dde which is already in trouble with the authorities. dde being the chinese version which listed on the new york stock exchange earlier in the year and then found its operations were being hobbled in china by a very cross government which was essentially concerned that the kind of data that dde had collected it should not leave the country. it was a national security risk there. so for an international company operating international company operating in china to fall under the level of scrutiny and the level
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of risk that china is now imposing on companies, i think it is not really worth the candle. and china has, for many years, protected its own internet companies against competition in lots of ways. we saw google for example... fik. saw google for example... 0k. they couldn't _ saw google for example... 0k. they couldn't maintain - saw google for example... ok. they couldn't maintain the integrity of their search so it is kind of not worth it anymore. is kind of not worth it anymore-— is kind of not worth it an more. �* . , anymore. all right, really appreciate _ anymore. all right, really appreciate your _ anymore. all right, really i appreciate your explanation. anymore. all right, really - appreciate your explanation. it is fascinating what is happening in china. to stay with us here on bbc news, still to come: as india won't commit to come: as india won't commit to net zero targets, what is actually going on with its solar power plants? we will be live there shortly.
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you are with bbc news, let's remind you of our top stories:
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world leaders at the cop26 climate conference in glasgow are warning they must take urgent action to prevent this traffic global warming. and a un scientific reports is the past seven years have been the hottest on record while extreme weather conditions have become the new normal. more now on our top story and india's stand at cop26 where it is not committing to a net zero deadline. our india business correspondentjoins us now live from delhi where it is looking extremely hot, you've got solar panels behind you. before we talk about solar, just talk us through why india isn't committing to a net zero target? committing to a net zero taraet? . . , committing to a net zero tar et? ., .,, , target? india has been maintaining _ target? india has been maintaining this - target? india has been l maintaining this position target? india has been - maintaining this position for a very long time and they are expected to reiterate that at the summit, essentially saying that the richer nations, the developed countries must take the lead and provide easier access for the developing
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nations to clean technologies as well. they are also talking about in the past how the developed nations must come together with a fund of the tune of $100 billion annually and divide this to developing nations to meet their development goals. india has maintained that with a population of 1.4 billion with millions living below poverty, they have specific developing goals and therefore it is very hard to commit to a net zero deadline. that is the primary reason and in factjust yesterday a senior minister in the indian government's cabinet also maintained that rich countries need to get to their net zero deadlines before the developing nations because they need to take the lead and the onusis need to take the lead and the onus is on them and not the developing countries.- developing countries. let's talk about _ developing countries. let's talk about solar _ developing countries. let's talk about solar and - developing countries. let's talk about solar and india's plans, what is happening? india has over the _ plans, what is happening? india has over the years _ plans, what is happening? india has over the years made - plans, what is happening? india has over the years made a - plans, what is happening? t�*tc —. has over the years made a lot of efforts to try to promote alternative green technologies. we are not there yet they are
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still making efforts. for instance what you can see behind me as a rooftop full of solar panels which caters to the delhi metro needs, delhi metro is essentially the equivalent of the london tube which caters to nearly 6 million commuters on the daily basis, these are of course pre— pandemic figures but it feeds nearly 60% of the metro's demands and delhi is one of the world's most polluted capital cities as of the last air quality report, so measures like these, the introduction of more eve vehicles is something that the government is looking towards, there is a little more climate consciousness but many expert say we are still miles behind in trying to do a lot more when it comes to the infrastructure that needs to support this kind of renewable energy sources. earlier on in august the indian government said that it had achieved 100 gigawatts of renewable energy systems here in the country, they hope to maximise that and increase it to about 400 by 2030, so there are plans but execution is something that we
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need to keep looking up for. 0k, need to keep looking up for. ok, thank you life for us and delhi. let's ring you some other business stories. after imposing some of the strip this border controls in the world australia is opening up to international travel. fully vaccinated citizens will no longer need permission to leave. the relaxation comes as the number of adults who have received two accent doses reaches 80%. american airlines has cancelled more than 1700 domestic and international flights since friday. on sunday 850 flights were cancelled. the carrier says the disruption is being caused by bad weather and staffing shortages. airlines have been tight on staffing due to the pandemic which drastically reduced demand for air travel. coca—cola is buying body armour for $5.6 billion air travel. coca—cola is buying body armourfor $5.6 billion in a deal that values the sports drink branded at around $8 billion. coca—cola which already owns 30% is buying the
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remaining 70% according to the wall streetjournal. a formal announcement is expect today. now, did you know it is world vegan day today and of course the vegan society is going to make the most of that at cop26 to push its message that becoming vegan is individuals can a huge difference. in order to reach net zero the society is calling for animal agriculture as a contributor to those emissions to be acknowledged and addressed at the conference. livestock creates 14% of all greenhouse gases with cattle being by far the largest contributor. let's talk this through with louise davis who is chief executive of the vegan society. good morning to you and happy world vegan day. took us through what you are hoping to hear when it comes to cop26? are hoping to hear when it comes to com?- are hoping to hear when it comes to cop26? thanks for havin: comes to cop26? thanks for having me — comes to cop26? thanks for having me and _ comes to cop26? thanks for having me and happy - comes to cop26? thanks for having me and happy world | comes to cop26? thanks for - having me and happy world vegan to you and all of your viewers. as you say it is very timely
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with cop26 kicking in this week. we really want to try to raise awareness amongst decision—makers and government and global leaders, the impact of animal agriculture. currently there is nothing on the agenda at cop26 officially, that acknowledges food and farming at all. so we are trying to raise awareness, we got official observer status at cop26 so we will be there trying to talk to policymakers about this issue and we are also trying to talk to individuals as well, so while governments are not taking action, we can all do something individually with every meal that we have, so we are encouraging people to consider what you are eating, consider what you are eating, consider what you are buying and our campaign late up for the planet can help you make sustainable nutritious choices on every meal that you eat.- nutritious choices on every meal that you eat. one of the disappointments _ meal that you eat. one of the disappointments is _ meal that you eat. one of the disappointments is some - meal that you eat. one of the disappointments is some of i meal that you eat. one of the i disappointments is some of the world leaders that are not going to be at cop26 and jair bolsonaro, president of brazil where illegal deforestation of the amazon rainforest is taking
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place, most of that to clear trees in order to make land available for cattle farming. governments in terms of where they buy meat from, exports, imports, they can make a difference can't they? absolutely. i think we are talking about greenhouse gas emissions and carbon impact of food in relation to reaching net zero but deforestation is a huge issue and cattle grazing is the leading cause of deforestation so we need to have a global approach to this, we need to think about where our food we need to think about where ourfood is coming we need to think about where our food is coming from. we need to think about where ourfood is coming from. we can be growing a lot more food, plant—based food in the uk so if we could shift people away from animal product and encourage the subsidies in the uk to be going over to encourage farmers to be growing things like chickpeas and lentils that would be a more sustainable option and of course we do need to look at our imports as well, we can't ignore what we are bringing in from other countries.- from other countries. what about to — from other countries. what about to meet _ from other countries. what about to meet tax? - from other countries. what about to meet tax? i - from other countries. what about to meet tax? i think| about to meet tax? i think eiuht about to meet tax? i think eight meet _ about to meet tax? i think eight meet tax _ about to meet tax? i think eight meet tax is - about to meet tax? i think. eight meet tax is potentially about to meet tax? i think- eight meet tax is potentially a bit of a blunt statement. we
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need to ensure that the choices we make are really fair for everyone including the animals in the system and i think the risk is when we've looked at the options people are proposing for a meat tax it is often purely on carbon impact which would mean that potentially we are moving people away from beef to other products like chicken which, factory farmed chicken which i think generally the british public don't want to be eating food that is produced in that way. we do think it is cruel so we would much rather have a more sophisticated financial intervention that starts with the production point to let's think about how we support farmers to be producing food thatis farmers to be producing food that is kinda and also better for the environment, so currently we are subsidising meat and dairy when we could be subsidising more heavily plant—based foods. subsidising more heavily plant-based foods. louise sorry we are nearly — plant-based foods. louise sorry we are nearly out _ plant-based foods. louise sorry we are nearly out of _ plant-based foods. louise sorry we are nearly out of time - plant-based foods. louise sorry we are nearly out of time but i we are nearly out of time but we are nearly out of time but we appreciate you joining us this morning. louise davis, happy world vegan day. to tell us, what are you eating? have you changed your eating habits because of your concern about the environment? i'm on
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twitter, it would be lovely to hear from you. twitter, it would be lovely to hearfrom you. don't twitter, it would be lovely to hear from you. don't forget on our website there is so much more about cop26 and details about what you can do. i will see you soon. morning. a change of month brings with it a change of the weather. we'll start the week with sunny spells and scattered showers. by the middle part of the week, it gets noticeably quieter, cooler for all of us, and some frost and fog overnight, so plenty to pack in there. so on monday morning, then, it looks somewhat like this — with low pressure easing away, and as we go through the week, high pressure will build in which quietens things down. but ahead of it, we can trace those isobars all the way back to the north — and that means a colder wind direction, with that northerly wind driving the blue tones, the cooler air, a little bit further south, you really will notice the difference with the feel of the weather if you are out and about this week.
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so sunny spells and blustery showers from the word go, most of the showers to the north but some will push further south as we go into the afternoon, and it looks as if those temperatures will peak between 9—14 celsius. now the showers will tend to fade away as we move through the night, and we will have some clear skies, perhaps a few frequent showers continuing into the far north of scotland. but where skies clear away, temperatures will fall away and we could see low single figures to greet us first thing on tuesday morning, and that gives us the potential for some frost to form, and maybe some patchy fog. so first thing on tuesday morning, it'll be a bit of a chilly start, lots of sunshine, some showers around, most frequent ones along the exposed north coasts of scotland and northern ireland, and some running down through the irish sea. temperatures are likely to struggle, though — top temperatures of 11—12 celsius. now, as we move out of tuesday into wednesday, still the risk of some showers, but as the high desperately tries to squeeze in along the west, but again, we are likely to see sunny spells and scattered showers as we go through the day on wednesday.
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it will be quite a cool feel to the day with those temperatures really struggling — in some areas not getting into double figures by the middle part of the afternoon, so a top temperature of 7—11 celsius. out of wednesday into thursday, the high pressure finally builds in, the winds will ease, we will see a good deal of quiet weather — that will kill off the showers, so that means on thursday, there is a greater chance of seeing more in the way of sunshine, but as you can see those temperatures are still set to struggle even for this time of year. hello there.
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you good morning and welcome to breakfast with dan walker and sally nugent. our headlines today: the prime minister warns that time is running out to prevent catastrophic global warming, as world leaders arrive in glasgow for the cop 26 climate change summit. a one minute to midnight moment and the clock is ticking. we have to get everybody to do more. good morning from glasgow, as 12 days of talks on the future of the planet get under way. we look at how climate change is damaging lives here and around the world — and ask what can we do to cut our emissions?
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with 120 leaders from around the world here now, can

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