tv World Business Report BBC News November 16, 2021 5:30am-6:01am GMT
this is bbc news with the latest business headlines for viewers in the uk and around the world. trade talks to relieve trade tensions? china and the us still have punitive tariffs on each others goods — so what difference will today's virtual meeting make? we have an exclusive interview with the philippines�* central bank governor — who says the challenge from covid will soon be over — inflation is the bigger economic threat. and plastic fantastic — that's the message from morrissons as it invests in its own recycling facility. we speak to the man in charge.
we begin with more detail on the much anticipated summit between the leaders of the us and china. the meeting between xijinping and joe biden has been happening virtually and is the latest attempt at easing tensions in what is arguably the most important bilateral relationship. xi told biden in the video conference the two countries face multiple challenges together and must increase communication and cooperation. while president biden said they both have a responsibility as leaders to ensure that relations between china and the united states do not veer into open conflict.but, the two sides are currently engaged in a full blown trade war, so how did we get here? you may remember here. we take
you every twist and turn. injuly 2018, you may remember, president trump placed a 25% duty on around $34 billion dollars�* worth of imports from china. it sparked an immediate retaliation from beijing and a series of tit—for—tat measures. the trade war had begun. tensions were intensified a year later when in may 2019 the chinese telecoms giant huawei was added to a new us trade blacklist. big chinese semiconductor companies soon followed onto the list. then injanuary 2020 under the biden administration the two countries signed the first phase of a new trade deal. that delayed new tariffs, cooling things down slightly. and in may this year, the first trade talks of the biden era were held — between chinese vice—premier liu he and us trade representative katherine tai. many tariffs still remained but the exchange was described as "candid and constructive". so what can we expect now? christine mcdaniel is senior research fellow at mercatus center.
a warm welcome to the programme. and christine, i note that you have worked in the us treasury department, in the us treasury department, in the white house, in their council of economic advisers. so you have some real insight into the views within the white house about china. what are your expectations following this virtual meeting? argue by havin: this virtual meeting? argue by having me- — this virtual meeting? argue by having me. nice _ this virtual meeting? argue by having me. nice to _ this virtual meeting? argue by having me. nice to see - this virtual meeting? argue by having me. nice to see you. . this virtual meeting? argue by| having me. nice to see you. -- having me. nice to see you. —— thank you for having me. we're still waiting details that are yet to trickle out of this virtual conference. but as you have just described, a virtual conference. but as you havejust described, a host virtual conference. but as you have just described, a host of terrorists have, this has definitely challenged his particular relationship was not it was a real sigh of relief when china and the united states a few ago in glasgow came out with thatjoint statement on climate. and then
for them to have this virtual conference today, trying to i think maybe reset the tone for more, at least more engagement at the highest level and then perhaps even at the cabinet level and maybe even deputy level. once you get to deputy level. once you get to deputy level we can really get to some of those behind the border issues that, it can really help with damage control. so things don't boil up to having to resort to some lunch instrument.- resort to some lunch instrument. ~ , instrument. when the -- blunt instrument. _ instrument. when the -- blunt instrument. when _ instrument. when the -- blunt instrument. when a _ instrument. when the -- blunt instrument. when a trade - instrument. when the -- blunt instrument. when a trade warl instrument. when a trade war broke out, it was a huge story. dominating concerns about the impact it would have on the global economy et cetera et cetera. actually the biden administration have kept largely a lot of that, the tariffs in place. they haven't actually watered down things that much or have they? well, i
think the rhetoric _ that much or have they? well, i think the rhetoric has _ that much or have they? well, i think the rhetoric has been - think the rhetoric has been toned down but it has largely remained the same. during the trump administration the original play on at least at the cabinet level was to do china first. by doing china first the idea was to get other countries involved and then address a lot of issues which are more thanjust us — china issues. are more than 'ust us - china issues. �* , , issues. briefly, christine, sorry to _ issues. briefly, christine, sorry to interrupt - issues. briefly, christine, sorry to interrupt you - issues. briefly, christine, sorry to interrupt you but | issues. briefly, christine, - sorry to interrupt you but what is your expectation when it comes to trade specifically with regards to these regular meetings that these two leaders are committed to?— are committed to? well, i don't really expect — are committed to? well, i don't really exaect a _ are committed to? well, i don't really expect a lot _ are committed to? well, i don't really expect a lot to _ are committed to? well, i don't really expect a lot to happen . really expect a lot to happen unless china decides to give something in return which is
really unfortunate because trade negotiators like to think that tariffs give them some bargaining power. economists just see the data. we see the terrace for what they really are which is reallyjust increasing costs. importers, consumers. we could really use easing on inflationary presses —— pressures stop and many other economies as well. that could easily be done if president biden were to eliminate the tariffs. so i think the longer inflation stays on the more pressure they will be under to eliminate the tariffs. ~ will be under to eliminate the tariffs. . , ., ~ , will be under to eliminate the tariffs. . , . ~ , ., tariffs. ok. we shall keep a close eye- _ tariffs. ok. we shall keep a close eye. christine - tariffs. ok. we shall keep a i close eye. christine mcdaniel thank you for your time. let's get some of the day's other news. the us president has signed into law a $1.2 trillion infrastructure spending bill, marking a legislative achievement for his administration. the bill had caused a major rift in mr biden�*s party that was blamed for a democratic election loss this month. another massive social spending bill is currently being considered in congress.
(tx oov)jpmorgan chase has sued tesla for $162.2 million — jpmorgan chase has sued tesla for $162.2 million — accusing elon musk�*s electric car company of "flagra ntly" breaching a contract related to stock warrants after its share price soared.the news comes as elon musk — in an unrelated transaction — sold $930 million in shares to meet tax withholding obligations related to stock optionshe is required to pay income taxes on the difference between the exercise price and fair market value of the shares. british prime minister borisjohnson has warned that the eu faces "a choice" between — quote — "sticking up for ukraine" and approving the nord stream 2 gas pipeline. the warning comes amid fears that russia is preparing for a possible invasion of the eastern european country. construction of the nord stream 2 pipeline,
which will carry russian gas directly across the baltic sea to germany, has been delayed by us sanctions. wealthier nations should pay a covid—19 vaccine tax as part of the price they pay to manufacturers to ensure a fairer distribution of the jab to poorer nations. that's the idea in a report in thejournal of medical ethics — it's author — andreas albertsen — says that taxation is fairer than the current donation model because it better reflects the ability of a country to pay. the simple idea behind the vaccine tax scheme is that for every vaccine bought, a fraction of the price paid is set aside to create a fairer vaccine distribution. and andreas albertsen is able to join us now to explain further — he is associate professor in the department of political science at aarhus university
i have in a nutshell put forward what your ideas. can you explain further?- forward what your ideas. can you explain further? thank you havin: you explain further? thank you having me- _ you explain further? thank you having me. one _ you explain further? thank you having me. one must - you explain further? thank you having me. one must say - you explain further? thank you having me. one must say that| having me. one must say that the current model is based on voluntary donations and that means those who are going to contribute to do something about the unequal distributions, that is the country that —— the countries most willing to donate. but is this really the right way to address the staggering inequality? my ideas we should tie it to gather to the ability and willingness to pay so those who want to protect their own contribution also the world approval. contribution also the world approval-— contribution also the world approval. contribution also the world a. roval. ., , .,, ., approval. kovacs was there to assure sarah _ approval. kovacs was there to assure sarah distribution - approval. kovacs was there to assure sarah distribution of. assure sarah distribution of vaccine to available countries. using didn't work? —— covax.
well, currently covax is dependent on nations from countries and they are not forthcoming to a sufficient degree, we face this inequality. my proposal is not an alternative to covax, it is an alternative to covax, it is an alternative to covax, it is an alternative funding source so when countries by vaccines they would also be obligated to pay a small fraction of the price as a tax that would then be set aside to acro one. isluiith be set aside to acro one. with the burden — be set aside to acro one. with the burden fall _ be set aside to acro one. with the burden fall in _ be set aside to acro one. with the burden fall in terms - be set aside to acro one. with the burden fall in terms of who plays the tax? governments or manufacturers? the manufacturers - manufacturers? the | manufacturers would manufacturers? the - manufacturers would be responsible for allocating the money but given that, they have a fairly strong hand in these negotiations. i am very open to the fact that they will be governments that will pay this tax. ~ ., , , ., ., tax. who is listening to what ou tax. who is listening to what you suggest _ tax. who is listening to what you suggest right _ tax. who is listening to what you suggest right now? -
tax. who is listening to what you suggest right now? is i you suggest right now? is manufacturers can choose to implement this tax, if all did so, the current governments wouldn't have any choice but actually pay the tax was up could be various reasons why they would to do so. but have ou had they would to do so. but have you had any — they would to do so. but have you had any feedback - they would to do so. but have you had any feedback from i they would to do so. but have l you had any feedback from drug manufacturers all those within the industry to what you have suggested? hat the industry to what you have suggested?— the industry to what you have su: rested? ., , , ., suggested? not as yet but what i'm doinu suggested? not as yet but what i'm doing here _ suggested? not as yet but what i'm doing here is— suggested? not as yet but what i'm doing here is of— suggested? not as yet but what i'm doing here is of course - suggested? not as yet but what i'm doing here is of course to i i'm doing here is of course to put out the proposal and see if we can have a discussion about this current model that is really working to the benefits so we should consider alternatives. but there are also ways in which we could launch through institutional matters, see if we can improve the situation. it could be a requirement for future research funding that you sign up for this idea. it could be a requirement that covax could only buy from manufacturers who sign up to promise to administer the vaccine tax. i’m
administer the vaccine tax. i'm sure there _ administer the vaccine tax. i'm sure there are _ administer the vaccine tax. i'm sure there are many, many ways. for now, thank you. interesting to hear your take on a wetter way of sharing vaccinations around the world.- way of sharing vaccinations around the world. now to the philippines where its central bank meets on thursday. it is unlikely to raise interest rates this week as the country looks to keep its economic recovery from the pandemic on track. the governor has been talking to my colleague karishma wasvani and warns inflation may replace covid as the most pressing issue next year. karishma vaswani and warns inflation may replace covid as the most pressing issue next year. right now inflation is elevated because there are prices and that his recent disturbances —— whether —— weathered disturbances. other than that, supply trade and so we feel
thatis supply trade and so we feel that is no need for the policy to correct the current inflation.— to correct the current inflation. ~ , ., ., ., ~' to correct the current inflation. ~ , ., ., ., inflation. when you look again ahead to next _ inflation. when you look again ahead to next year, _ inflation. when you look again ahead to next year, what i inflation. when you look again ahead to next year, what are i ahead to next year, what are your main concerns about the philippines economy? you talk about the fact that it is recovering and back on track but the pandemic has left deep scars. ., ' ' , scars. the covid-19 will be behind us _ scars. the covid-19 will be behind us by _ scars. the covid-19 will be behind us by the _ scars. the covid-19 will be behind us by the second i scars. the covid-19 will be l behind us by the second half scars. the covid-19 will be i behind us by the second half of next year. the most important issue at that time will be inflation still and of course unemployment. at inc that the impact of covid—19 is on our youth, becomes one full year of studies but you know the youth are very resilient and so we can easily catch up on that. do you know the philippines has a very young population. its median age is 25 so investment
in infrastructure and investment, i think those two items will be, should be the concern. in the next problem. you are with bbc news. stay with us on bbc news, still to come: and plastic fantastic — that's the message from morrisons as it invests in its own recycling facility. we speak to the man in charge. benazir bhutto has claimed victory in pakistan's general election, and she's asked pakistan's president to name her as prime minister. jackson's been released on bail of $3 million after turning himself in to police in santa barbara. it was the biggest i demonstration so far of the fast—growing _ european anti—nuclear movement. the south african government has announced that it's opening the country's remaining whites—only beaches to people of all races.
this will lead to a black majority government in this country and the destruction of the white civilisation. part of the centuries—old windsor castle, - one of the queen's residences, has been consumed by fire for much of the day. - 150 firemen have been battling the blaze, i which has caused millions. of pounds worth of damage. more details emerge about the liverpool bomber. 32—year—old emad al swealmeen was an asylum seeker from the middle east who converted to christianity in britain. with tensions on trade, taiwan and climate change, the us and chinese leaders hold their most extensive talks since president biden took office.
google has made its largest ever investment in australia. the company is putting up $1 billion for a new research hub. suranjana tewari in our singapore bureau has been following the story. i hope you are there. good to see you. tell us, why is google so interested in australia? this money would be spent over the next five years and it is the next five years and it is the largest investment in australia to date from google. it is aimed at increasing cloud capacity in setting up a research facility staffed by australian researchers and engineers. google also plans to partner with australian science agency. google australia's managing director says the spending plan would ring significant technology resources and investment for the country. the prime
minister, scott morrison, has welcomed it calling it a one billion dollar vote of confidence. scott morrison has big ambitions for the country's digital economy and says that investment will bring thousands more jobs in investment will bring thousands morejobs in engineering, computer science and ai. sally, this is quite a turnaround for google because months ago it threatened to pull it services from australia in response to tougher government regulation and that really affected companies such as google and facebook because canberra wanted these websites to pay news outlets for content posted on them. the law went ahead and google publicly backed away from that threat, striking licensing deals with most of australia's main media companies. so a real turnaround for google but for now a lot of investment for australia. thank you very much. this week the food retail giant morrisons has announced its bought a stake in a new recycling facility in fife, scotland.
it claims to be the first supermarket to co—own its own recycling operations. the site will reprocess �*hard—to—recycle' soft plastics. it's expected to turn 15,000 tons of hard—to—recycle waste packaging a year into plastic flakes, pellets and boards. but why are supermarkets moving into the recycling business and will it help? jamie winter is procurement director at morrisons good morning to you. can you answer that question? why have you made this move at morrisons?— you made this move at morrisons? ~ , , morrisons? we believe there is a responsibility _ morrisons? we believe there is a responsibility to _ morrisons? we believe there is a responsibility to clean - morrisons? we believe there is a responsibility to clean up i a responsibility to clean up and provide infrastructure here in the uk. soft plastics like sweet wrappers and crisp packets and bread bags and those things, historically have been hard to recycle and that is meant that many people have looked to ship it out of the uk to be recycled or processed. so
we decided that we could reinvest and play our part in making sure that we get to a better place and we will collect those materials and take them to our site where we will process them and turn them into pellets, flakes, eco— sheets and that is basically a replacement for plywood that they can be used in plywood —— construction. they can be used in plywood -- construction.— construction. and what will ha - en construction. and what will happen to _ construction. and what will happen to the _ construction. and what will happen to the pellets i construction. and what will happen to the pellets and l happen to the pellets and flakes? , ., , ., happen to the pellets and flakes? , ., ,., , happen to the pellets and flakes? , ., , ., flakes? they will also be made into other _ flakes? they will also be made into other product. _ flakes? they will also be made into other product. so - flakes? they will also be made into other product. so what i flakes? they will also be made| into other product. so what has been happening _ into other product. so what has been happening with _ into other product. so what has been happening with this i into other product. so what has been happening with this type i been happening with this type of plastics that morrisons has until now been throwing away? the cost of recycling it was high so it will go to incineration or landfill. however this is a far better if we can recycle it and using
this new technology put in place in five it allows us to recycle it and turn it into other products.- recycle it and turn it into other products. recycle it and turn it into otherroducts. ., ., ., , other products. you have nearly 500 supermarkets _ other products. you have nearly 500 supermarkets across i other products. you have nearly 500 supermarkets across the i 500 supermarkets across the country. will this site be able to take all of the soft plastic thrown away?— thrown away? the first site will not be _ thrown away? the first site will not be able _ thrown away? the first site will not be able to - thrown away? the first site will not be able to take i thrown away? the first site will not be able to take all| thrown away? the first site i will not be able to take all of the plastic we do have plans over the next few years where we will have more but usually the first site will take 15,000 tons of soft plastics collected from stores or manufacturing sites and we are looking to work closely with the council. we're almost at a time but, briefly, what does it cost morrisons and will this be on to the consumer? it morrisons and will this be on to the consumer?— to the consumer? it will not aet to the consumer? it will not get passed _ to the consumer? it will not get passed on _ to the consumer? it will not get passed on to _ to the consumer? it will not get passed on to the - to the consumer? it will not i get passed on to the consumer at all. it is a significant investment we are making but one we think is worthwhile as
you say, there is no place for these products to be recycled at the moment and this provides it. ., , ., ~ it. quite interesting. thank ou it. quite interesting. thank you very — it. quite interesting. thank you very much. _ it. quite interesting. thank you very much, jamie. in i it. quite interesting. thank. you very much, jamie. in little you very much, jamie. in little more than one hours time in the united kingdom we will get the latest numbers on unemployment and it is expected to show a continuing recovery in the labour market. at that could, of course, be a worry for the bank of england because much lower unemployment doesn't normally correlate with rising inflation, with wages going up and that kind of thing. let's talk to craig ellena senior market analyst. numbers —— what we expect the numbers to look like? ., . like? not too bad which will come as _ like? not too bad which will come as a _ like? not too bad which will come as a relief— like? not too bad which will come as a relief to - like? not too bad which will come as a relief to most i like? not too bad which will come as a relief to most of| like? not too bad which will l come as a relief to most of us but from the perspective of the bank of england it does put more pressure on them, as you just alluded to. it is worth noting that the end of the fellow scheme is in september so today we will get some inclination as to how many people are claiming unemployment related benefits as at the end of october.
unemployment itself will only cover september so we will have to wait another month to find out what the full impact of the fellow scheme will be. we will get some insight today but broadly speaking, the data we expect will show most people returned to work which is something alluded to earlier this week and, again, that puts pressure on the bank of england because the rate is expected to therefore remain low which keeps inflationary pressures high. as you say, what is quite critical with these numbers in the next ones to come is the impact at the end of the fellow scheme that that is had on the labour market and in the months ahead as well, depending on how tricky things get with infection rates in the uk. the bank of england ultimately has backed itself into a corner. if they would just focus on inflation and they would make an adjustment based on that they could have laid the groundwork for patients and not raising interest rates too quickly. by focusing more on the labour market —— on the
labour market they could have high unemployment benefit but it does not give them much wiggle room in december to raise interest rates. the market disappointment this month that they did not raise interest rates was quite significant. they will not have that flexibility next month and as you say this comes at a time when we are going through a winter period. we know what happened last winter with the rate of covid infections and they are not leaving themselves much wiggle room next month if the unemployment data says what we think it will say. we the unemployment data says what we think it will say.— we think it will say. we do keep talking _ we think it will say. we do keep talking about - we think it will say. we do keep talking about the i we think it will say. we do i keep talking about the bank of england and when my makes it —— make its move but with rates historically low at almost zero, what impact would appoint to 5% increase have? we know it would increase the debt repayments for the government but for the uk economy as a whole? ., ., ., ., ., whole? not too great and impact- — whole? not too great and impact- not _ whole? not too great and impact. not .25, - whole? not too great and impact. not .25, more. whole? not too great and i impact. not .25, more likely
.15. but it is almost the path of travelling it takes down the market. i know that historically that may not seem like a lot that we are in an economy where we have not been used to rate hikes for more than a decade now, it starts to have a bit more significant impact. so it is path of travel that takes us down rather than the actual impact of this 115 basis point rate hike. brute the actual impact of this 115 basis point rate hike. we shall see what happens _ basis point rate hike. we shall see what happens in _ basis point rate hike. we shall see what happens in the i basis point rate hike. we shall see what happens in the near| see what happens in the near future. thank you very much and have a good day, craig. we are almost out of time and as i keep telling my guests, keep interrupting them, i do feel bad about that. let's quickly show you the financial markets. we pack quite a lot in. japan is treading water today, hong kong above 1% higher and the price of oil creeping up yet again over 1% higher today. almost $83 for a barrel of
rent. so you are fully up—to—date, thank you for your company once again. have a really good day and i will see you soon. hello. well, tuesday promises to be a dry day across most of the uk. it's going to be cloudy and mild once again. and, in fact, not much change expected for the next few days. if anything, the temperatures could rise even further. so why is it so mild? well, on the satellite picture, you'll see this big weather front here. this is very much where the jet stream is. thejet stream is pushing along the weather fronts, but it's also separating the mild air to the south, which has engulfed the uk, and indeed much of europe, and is keeping the cold air at bay. so we are to the south of the jet stream in that milder air. but scotland is a little closer to the weather fronts in the north atlantic, so that does mean some of that rain grazing the western isles through the course of the early hours. elsewhere, it'll be dry.
and where the skies will have cleared, perhaps 4—5 celsius at dawn, so a little on the nippy side, but generally mild. now, that weather front does move into scotland, northern ireland, perhaps the lake district and the north of wales, but the rain will be light and fleeting and will quickly fizzle away. east and south, it's going to be dry. perhaps a bit of brightness, too. and the same pattern continues into wednesday. so high pressure in the south with that mild air coming in, weather fronts in the north of the atlantic. and again, they are bringing this time some showers to parts of scotland, whereas in the south, in fact central, southern areas of the uk, should be a fine day — in fact, a very bright day, particularly eastern areas and along the south coast. temperatures a little fresher on wednesday, 10—12 celsius, but then they rise again as we head into thursday. now, around this high pressure, we'll run along a current of mild air on thursday. and as it engulfs the uk, the temperatures could actually rise even further with a bit of sunshine. so, yes, a bit of cloud and rain here in the northwest of scotland, but widely, i think, the mid—teens. and look at that — 16 in aberdeen. wouldn't be surprised
if it gets up to 17 — 17 this time in november — extraordinarily mild for eastern parts of scotland. shouldn't last for too long, perhaps into friday. again, friday could well be another very mild day, with the mid—teens across the country, but i think as we head into the weekend, it's going to turn a lot, a lot cooler. so a very mild week, particularly mild towards the end of the week, and i think the weekend and beyond is going to turn a lot, lot colder. bye— bye.
good morning. welcome to breakfast with sally nugent and dan walker. our headlines today... the liverpool terror attack. police name the suspect who was killed in the blast. four men who were arrested have been released. fears from the front line of the nhs. hospital trusts in england say it will be "the most difficult winter in the history of the health service". the risk of clinical incidents goes up by the day but my concern is i'm not sure what we can do about it and that's what worries me the most. former yorkshire county cricket player azeem rafiq says it's "time for truths" as he prepares to give evidence to mps about the racism he says he experienced at the club.