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tv   World Business Report  BBC News  November 23, 2021 5:30am-6:01am GMT

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this is bbc news with the latest business headlines for viewers in the uk and around the world. president biden chooses continuity and nominates jerome powell to remain as head of the us central bank. one of the pandemic winners, zoom, announces a 35% jump in revenues. however it shares fall after the earnings update as investors fear the competition has caught up. and turning on the taps — japan, india and the us look to use their crude reserves to drive down oil prices.
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let's start in the us, because after months of speculation, joe biden has nominated jerome powell for a second term as fed chair. the role is known as the most powerful economic position in the world and the financial markets initially reacted positively to the announcement, with the s&p 500 hitting a record high before retreating. lael brainard will be vice chair of the central bank as it wrestles with high inflation which, if it lasts, could play a pivotal role in congressional elections next year. the bbc�*s michelle fleury has more from new york. four years ago president trump backed tradition by appointing jerome powell instead of re— nominating janet yellen to become chair of the us federal reserve. he
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become chair of the us federal reserve. , , ., reserve. he is strong, committed, _ reserve. he is strong, committed, smart. i reserve. he is strong, | committed, smart. he reserve. he is strong, _ committed, smart. he eventually soured on him, _ committed, smart. he eventually soured on him, unhappy, - committed, smart. he eventually soured on him, unhappy, he - committed, smart. he eventually soured on him, unhappy, he was| soured on him, unhappy, he was not doing more to turbocharge the us economy. it not doing more to turbocharge the us economy.— the us economy. if the fed would do — the us economy. if the fed would do its _ the us economy. if the fed would do its job _ the us economy. if the fed would do its job we - the us economy. if the fed would do its job we would l the us economy. if the fed - would do its job we would have would do itsjob we would have a tremendous spurt of growth. that all changed with the pandemic. with the global economy in the world's financial markets taken, the fed cut us interest rates to near zero and resumed its bond buying programme. if the fed we are doing all we can to help shepherd the economy through this difficult time. those actions earned him president biden�*s endorsement on monday. when a country was haemorrhaging jobs last year, and there was panic in our financial markets, his steady and decisive leadership help to stabilise markets and put our economy on track to a robust recovery. economy on track to a robust recovery-— economy on track to a robust recovery. the challenge today facina recovery. the challenge today facing america's _ recovery. the challenge today facing america's central - recovery. the challenge today facing america's central bank| facing america's central bank is different, battling inflation.— is different, battling inflation. ~ ~ ., ., inflation. we know that high inflation. we know that high inflation takes _ inflation. we know that high inflation takes a _ inflation. we know that high inflation takes a toll- inflation. we know that high inflation takes a toll on - inflation takes a toll on families, especially those with less able to meet the higher cost of essentials like food,
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housing and transportation. we use our tools both to support the economy and strong labour market, and to prevent higher inflation from becoming entrenched.— inflation from becoming entrenched. ,, ., ., , entrenched. serving alongside him, lael _ entrenched. serving alongside him, lael brainard, _ entrenched. serving alongside him, lael brainard, picked - entrenched. serving alongside him, lael brainard, picked as| him, lael brainard, picked as vice—chair. i him, lael brainard, picked as vice-chain— him, lael brainard, picked as vice-chair. i am committed to -auttin vice-chair. i am committed to putting working _ vice-chair. i am committed to putting working americans - vice-chair. i am committed to putting working americans at| putting working americans at the centre of my work at the federal_ the centre of my work at the federal reserve. this means getting _ federal reserve. this means getting inflation down, at a time — getting inflation down, at a time when people are focused on their— time when people are focused on theiriobs— time when people are focused on theirjobs and how fair are their— theirjobs and how fair are their paychecks will go. she is a federal government - their paychecks will go. she is a federal government that - their paychecks will go. she is l a federal government that many progressives would hope would replacejerome progressives would hope would replace jerome powell. progressives would hope would replacejerome powell. among replace jerome powell. among those replacejerome powell. among those disappointed was democratic senator elizabeth warren who said in a statement it's no secret i am pros the renomination, and i will vote against him, citing his failures and regulation, climate and ethics. the appointment still needs to be confirmed by the senate, so far, mr powell appears to have bipartisan support stop at the senate banking committee said i look forward to supporting his confirmation. but he was less
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sure on lael brainard, writing i look forward to meeting with her. in opting not to change course at the us central bank right now, joe biden is prioritising continuity. after all the pandemic is not lifted yet, and the extraordinary measures the bank took to shore up measures the bank took to shore up the economy are still in place. but with the recovery comes new challenges, and new policies. jerome power faces a momentous second term. joining me now is alpesh patel, who's the ceo of praefinium partners. so the choice of powell is it the safe choice? lael brainard was also in the running, but many know little about her, what's her background? with the cost of living rising faster than it has for 3 years in the us, across all sectors, biden has spoken of reversing it as a top priority, but the fed has hinted that it doesn't expect to raise interst rates soon, belivieing the curarent high rate is transitionary, but do these numbers put pressure on the fed to act sooner? is he the safe choice, does
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that reflect overall reaction? beforehand there was a case of buying the rumour and selling the facts, taking some of the prophet. they are approaching thanksgiving in the us, and the all—time highs, what a bumper windfall, people in my industry, the asset management industry, the asset management industry, and the man and woman on the street who has invested in the stock market has been having through their pensions or otherwise, so i think it's very enough to take a bit of money off the table once you know that you have discontinuity in this good news. �* , discontinuity in this good news. 3 . ~' discontinuity in this good news. 2 ., ~ ., ., news. let's talk about lael brainard — news. let's talk about lael brainard she was _ news. let's talk about lael brainard she was also - news. let's talk about lael brainard she was also in i news. let's talk about laell brainard she was also in the running. many don't know that much about her. what is her background?— much about her. what is her backuround? ,, , ., ., background? she has been around background? she has been around b uuite a background? she has been around by quite a while. _ background? she has been around by quite a while. she _ background? she has been around by quite a while. she is _ background? she has been around by quite a while. she is a - by quite a while. she is a renowned academic but also she's served originally under obama, and so there is this longevity in dealing with the fed and the white house, so thatis fed and the white house, so that is a positive, she also appeals to the elizabeth warren times, the sort of, for american politics the extreme
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left virtually, so they will be happy, given that if you have a republican likejerome powell you better make both sides happy, so that's good, she is seen as somebody who is potentially anti— bank, you might want to sell the dollar because she is slightly left of centre, there could be a bit of a loss of confidence in the us market, but they will take the kind of hawkish steps, the aggressive steps they need and she will temper back into room power�*s instinct to raise rates, you might be a bit slow on that because like she said she was concerned about the working man and woman, she won't want to see their mortgages rise too quickly and those interest rates will not rise as quickly, then you might want to be selling the dollar for a macro economic perspective, so left of centre, but it's very much, the great news is, it'sjerome power�*s fed, not biden, so he can say that part was not my fault. interesting analysis there. i
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just want to pick apart what you are saying there, let's talk about the job in hand, talk about thejob in hand, the us economy. inflation is the big story of course on the front, the cost of living rising faster than it has for three decades in the us, interest rates you mention, normally raising and the response to rising inflation. the us federal reserve has hinted that it is a no great rush to do it, that it believes it is a transitionary process, president biden has said that tackling inflation which is affecting all sectors of the us economy is his top priority. do you think the numbers that have come out on us inflation will put increasing pressure on the federal to act sooner than perhaps they might wish? they have several _ perhaps they might wish? they have several problems. - perhaps they might wish? tie: have several problems. they have several problems. they have very little that they can do in one regard because of start raising rates a bit too quickly, then it could panic the markets, it could panic the broader economy. does one problem. they have to do it slowly, but if they don't do a
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quick enough, then the problem becomes worse. they could cut back on this bond buying, and the balance sheet of the fed and think of is printing money. balance sheet of the fed has doubled in the last two years — two years. that is a greater response as proportion of gdp than the financial crisis of 2008, and you might say that's fine because the americans are of obsessed with growth and it was through power�*s job and he has done it but if the ease back on that too quickly, then panic, they do it too slowly, it just leaves panic, they do it too slowly, itjust leaves greater it just leaves greater inflation, but look itjust leaves greater inflation, but look at the positives. inflation is really being caused by transportation costs which are also a component of energy price rises. we have energy prices are higher than these levels before and the market tends to self correct. also it is not generally the food in your basket which is increasing or at least you can substitute some of that away. the fixed costs such as energy or rent,
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you can't substitute away, but the cost of your fruit basket might not impact people as much as the headline figures seem to suggest. tote as the headline figures seem to su: est. ~ ., as the headline figures seem to su: est. ~ . ., as the headline figures seem to su: est. ~ ., ., ., suggest. we will have to leave it there, but _ suggest. we will have to leave it there, but many _ suggest. we will have to leave it there, but many many - suggest. we will have to leave l it there, but many many thanks. to china now, where the country's cyberspace regulator says it wants to clamp down on what it previously labelled the "chaotic" celebrity fan culture. the regulator says it will now more tightly regulate the online information of its celebrities, which it hopes will create a more �*positive' environment. joining me now from our asia business hub of singapore is suranjana tewari. so what's happening here? there is really two sides to this. on one hand the chinese leadership is unhappy with celebrities becoming very powerful, earning a lot of money and sometimes evading taxes. 0n the other side, the leadership is concerned about
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the impact that start chasing is having on mainstream values, and some say there is concern that these fan clubs that can mobilise online to stage protests for their favourite stars. beijing really wants young people to have a healthy message online from wholesome role models. and in recent months it has ordered broadcasters, online platforms, artist to try and help curb that celebrity culture. what is changing this time? well the regulator is restricting discussions of celebrities daily lives and limiting the number of times celebrity adverts can appear on internet sites, it is also effectively banning unofficialfan banning unofficial fan appreciation groups. banning unofficialfan appreciation groups. is also asking local branches to watch out for culture that it deems unsavoury, things like targeting extravagant pleasure, looks and even lifestyles. this could impact a number of online firms in china. of course there
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is the closest thing to twitter there, webo, and a number of other platforms that allow fans to interact with celebrities including billy billy, similar things to tiktok. in august the chinese government crackdown on gaming firms, and shares in those fell by 10% as a result, so this is likely to have an impact as well. let's talk about oil because we have seen prices and lower this week as infections rise across europe. however, they still have risen some 60% this year and some seven cultural —— countries including the likes of japan countries including the likes ofjapan india and the us are reported to be close to an agreement to release more of the national crude reserves. it comes after they were not able to persuade 0pec plus countries to persuade 0pec plus countries to pump more oil. joining me
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now is the global head of private capital and advisory group. many thanks forjoining me this morning. this looks like a mini battle between the us led countries and 0pec plus. it really is a geopolitical tussle between the united states and 0pec plus which is essentially led by saudi arabia, so this will put further strain on the us saudi relationship. joe biden and other leaders are under massive pressure to bring inflation under control, and oil is a major input into the global economy so they feel their hand is forced after 0pec plus has refused to release more volume into the market and has decided to do so only gradually instead of doing more to put price into the controls today. the agreement, _ the controls today. the agreement, it - the controls today. the agreement, it could - the controls today. the i agreement, it could come the controls today. the agreement, it could come as early as tuesday, couldn't it? do you think that 0pec plus will react? it do you think that opec plus
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will react?— will react? it will need to reassess _ will react? it will need to reassess after _ will react? it will need to reassess after the i will react? it will need to reassess after the shock| will react? it will need to l reassess after the shock to will react? it will need to i reassess after the shock to the oil market from so many countries releasing strategic reserves in a co—ordinated manner. in reserves in a co-ordinated manner-— reserves in a co-ordinated manner. . ., ., ., manner. in addition to that you have restrictions _ manner. in addition to that you have restrictions are _ manner. in addition to that you have restrictions are like i have restrictions are like towns in europe that have also changed the picture, so 0pec plus wants to act to have all the right excuses to do so, but not doing so will absolutely bring about a diplomatic struggle between these countries led by the us and india and it's a diplomatic coup for the us to bring both china, india and japan to the table, the top four collective consumers of oil in the world to be able to act in a co—ordinating manner. fin to be able to act in a co-ordinating manner. on that, those countries _ co-ordinating manner. on that, those countries that _ co-ordinating manner. on that, those countries that are - those countries that are supposed to be part of the agreement, do they have enough reserves to cater for the market, and how important is this the president biden? he has a congressional election coming up and high oil prices will not do much for his
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regard?— will not do much for his reaard? ., , �* , regard? not 'ust joe biden but other regard? notjust joe biden but other leaders _ regard? notjust joe biden but other leaders under _ regard? notjust joe biden but other leaders under pressure i regard? notjust joe biden but. other leaders under pressure as well, but really forjoe biden, his approval rating is that at an all—time low at the he is under pressure to deliver something, and while the reserves will certainly put a damper on oil price which are in addition to european lockdowns will bring the price down, more importantly it is the signal to the markets, and signal to his people that he is doing everything he can. joe biden also referred to the largest oil producers in the united states to the federal trade commission for investigation, saying that they were taking acts against the american people with co—ordinated action that has kept oil prices higher than it should be. so he is trying to do all that he can to signal that he is doing what he can to bring oil price down. interesting stuff. many thanks.
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stay with us on bbc news, still to come: one news, still to come: of the pandemic winners. zoom one of the pandemic winners. zoom announces a 35% jump one of the pandemic winners. zoom announces a 35%jump in revenues however its shares fall after the earnings update as investors fairer competition has caught up. president kennedy was shot down and died almost immediately. the murder ofjohn kennedy is a disaster for the whole free world. he caught the imagination of the world — the first of a new generation of leaders. margaret thatcher is resigning as leader of the conservative party and prime minister. before leaving number ten to see the queen, she told her cabinet, "it's a funny old world." angela merkel is germany's first woman chancellor, easily securing the majority she needed. attempts to fly a hot air balloon had to be abandoned after a few minutes, but nobody seemed to mind very much. as one local comic put it, "it's not hot air we need,
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it's hard cash." cuba has declared nine days of mourning following the death of fidel castro at the age of 90. castro developed close ties with the soviet union in the 1960s — it was an alliance that brought the world to the brink of nuclear war with the cuban missile crisis. this is bbc world news, the latest headlines: the international red cross says sanctions against the taliban are causing extreme hardship for ordinary afghans, and malnutrition in hundreds of children. as coronavirus infections continue to rise, austria re—enters a nationwide lockdown, despite angry protests. the video conferencing firm zoom has announced a 35%jump in revenues for the third quarter to $1 billion, which was slightly better than many
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analysts were expecting. however, investors were less than impressed, and its shares fell 6% in late trading. the firm has been one of the big pandemic winners, but has the competition caught up? microsoft teams recently expanded to more than 250 million active users. joining me now is rob kniaz, who's the founding partner at hoxton ventures. many thanks for joining many thanks forjoining me this morning on the programme. what do the 03 results tell us about the direction of travel for zoom? has it been hit by returning to the office? i think it's a combination that they have really saturated the entire market. there are no more new customers out there, frankly. it is still really impressive that we are still —— they were able to grow more than 30% in this last quarter
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thinking we are more than a year and a half into lockdown. investors are realising there's just no more world to be have. but shares fell 6% in late trading, what about the competition out there? how will it cope, for example, with the might of microsoft teams? i think it is a good question stopping microsoft is using its classic bundling techniques to make sure the products are bundled in with the other purchasers, in this case office 365. i think competitors will be giving it away for free, increasingly. zoom is still i think the best, but when you have people giving it away for free to becomes table stakes, it is much harder to make money. it is much harder to make mone . �* , it is much harder to make money. it is much harder to make mone. �* , ., ., it is much harder to make mone. , ., ., , money. because although zoom is rofitable money. because although zoom is profitable it _ money. because although zoom is profitable it doesn't _ money. because although zoom is profitable it doesn't really - profitable it doesn't really have any other strings to its bow, does it? do you expect it to start to diversify?— to start to diversify? that took about _ to start to diversify? that took about running i to start to diversify? “trust took about running advertising. historically they've been very adverse to any kind of ads but in their free tears they are giving away four low minutes, it makes sense that they would
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include ads to monetise those users. and once you are in an enterprise you can keepjacking up enterprise you can keepjacking up the price, keep making increasing value. if you look at the customers who are worth more than $100,000, i think they have 2000 customers worldwide that paying more than $100,000 a year which is quite substantial for a videoconference thing product others are giving away. what about its zoom phone, which nearly tripled its annual recurring revenue base last year — it's a cloud based phone system, it's reached 2 million users. that can provide further growth for the company?— for the company? yeah, they have the _ for the company? yeah, they have the hardware _ for the company? yeah, they have the hardware with i for the company? yeah, theyj have the hardware with zoom rooms and a cloud based zoom phones but which is a normal telephone service in the office so it's very natural extensions. once you are on zoom you can branch out and offer the entire telecommunications stack but the rooms are important for
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officers but the cloud communications are probably decreasingly important stopping there are things frankly you can do one zoom that don't require a phone anymore. interesting stuff. rob kniaz, thank you very much forjoining me this morning. shares and payments firm paytm has fallen, wiped about $7 billion of its listing all us and of nearly $19 billion. paytm's debut is now regarded as one of the worst ever market debuts for a large indian company. pfizersays debuts for a large indian company. pfizer says its covid-i9 company. pfizer says its covid—19 vaccine provides strong, long—term protection in adolescents. a late stage trail which subjects range between 12-15 which subjects range between 12—15 years old shows that the vaccine remains 100% of four months after the second dose. the data will be used to
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support its applications for regulatory approval in the us and around the world. let's now talk about the jobs market, because new data out from linkedin today shows the number of people changing roles in october 2021 was up 25% compared to two years ago. linkedin is also seeing hiring return to pre—pandemic levels in all countries, but the pace of recovery in europe has lagged that of the us. but there's less competition for roles now compared to a year ago, so job seekers are in a stronger position to negotiate salaries. joining me now is karin kimbrough, who's the chief economist at linkedin. many thanks for joining many thanks forjoining me on the programme this morning. how is the global labour market changing? we are at a point right now where i don't think the labour market as ever been as tight. we are seeing an end doubling of availablejobs and
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we are seeing an end doubling of available jobs and at the same timejobseekers are of available jobs and at the same time jobseekers are being pretty choosy and pretty cautious which means we are seeing fewer applicants per role which brings down the competition for any roles so it's really never been a better time to try to get a job, but at the same time, when you compare country to country, we are definitely seeing that the us seems to have a little bit more momentum than other parts of say, in the uk or continental europe. interesting, because what does that high quit rate tell us about the state of the global economy and the jobs market? are they a sign of a healthy and recovering labour market? our workers feeling more confident in their ability to secure a debtor deal elsewhere? absolutely, a high quit rate is usually a sign that people feel they can leave one job and find something better, whether it be better pay, more flexibility, more generous benefit orjust something that they prefer to do and we all know that after some 18 months since the
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pandemic started, many people have been contemplating, you know, or trying to redefine where they work, how they work and why they work and as a consequence they are moving around and we are calling this the great reshuffle and a lot of what we are seeing are simply people who are making a choice for something different and it is forcing employers to have two really calibrate better for what workers are looking for right now.- looking for right now. your data at linkedin _ looking for right now. your data at linkedin shows i looking for right now. your l data at linkedin shows hiring is back to pre— pandemic levels in all countries but the pace of recovery in europe has legs that of the us, hasn't it? what picture are you seeing and why is that? i picture are you seeing and why is that? ~ . picture are you seeing and why is that? ~' ., ., is that? i think there are two reasons- _ is that? i think there are two reasons. one _ is that? i think there are two reasons. one is of course i is that? i think there are two | reasons. one is of course and many of the european countries there were really quickly installed fellow schemes that meant people stayed sort of attached to theirjob. they were not unemployed so they didn't have these rheumatic swings in unemployment that we had in the us. so the us had a
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lot of unemployment but now we are seeing a lot of people finding jobs and that momentum is really there. europe was more of a modulated cycle. the other reason, i think, is that there has been this fact that it happened over and over again that whenever we have these waves of covid, it really does slow the pace of hiring and we are seeing right now that cases of covid are increasing in parts of europe and that is definitely slowing hiring whereas in the us it seems that there is a little bit more behind us in some cases and it has picked up and accelerated again. has picked up and accelerated aaain. , ., . , again. interesting nuances there within _ again. interesting nuances there within the _ again. interesting nuances there within the job i again. interesting nuances| there within the job market there. many, many thanks. let's see how the asian markets are faring today. markets are mixed in asia on tuesday and the dollar extended gains as investors bet on a quicker pace of monetary tightening
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by the federal reserve afterjerome powell was nominated to serve a second term as boss. and on wall street the s&p 500 and nasdaq retreated from all—time highs after that fed chair announcement. you can reach me on twitter, i'm @ bbc baxter. to stay in touch, do stay with us. hello. after all of monday's sunshine, tuesday will be a cloudier day with the best of any sunny spells across southernmost parts of the uk. despite all the cloud, there'll be a lot of dry weather around, though you may encounter a little light rain or drizzle. it is high pressure, which is why it is mainly dry — it is bringing in the cloudier moist weather from the atlantic with some air which is a little less chilly than it's been — but i'm not sure we'll notice much difference between monday and tuesday because we're exchanging sunshine for so much more cloud — cloud will have prevented much in the way of frost into scotland and northern ireland overnight. it's england and wales that'll start with the lower temperatures and the greater chance for a frost, but also some early sunny spells. a rather cloudy day, though, in scotland and northern ireland, some patchy rain and drizzle
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north and west scotland, into northern ireland. and northwest england and north wales could see some of that, as well — and see the cloud just increasing further through wales and england. just east anglia across southern england, to parts of south wales having some sunny spells on through the afternoon with temperatures which are close to average for the time of year. the odd shower near the north sea coast and the far southeast of england into the channel islands, a few of those could continue into tuesday night. with a lot of cloud around, so bear the only frost, and a band of rain working into scotland and northern ireland as we start off on wednesday morning. now, some fog patches for tuesday morning, as there could be for wednesday morning, as well — and particularly through parts of wales and england, they mayjust end with a grey and rather misty, murky day, an already cold—feeling day. ahead of this weather front, which takes rain towards northwest england and wales, and out of scotland and northern ireland with sunshine following, but blustery showers, wintry on hills. it is a colder—feeling day for wednesday. and then, for thursday, the colder air has come back — but it's a brighter day again with sunny spells, though cloud steadily increasing in scotland and northern ireland. wintry showers in northern scotland, a few coastal showers elsewhere in both the east and west of the uk, but most dry with some sunshine.
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and then, this at the end of the week that will take us into the weekend, as well, an area of low pressure moves across us — so wet weather pressing south, heavy showers following on behind, and stronger winds with gales in places, as well. and it will feel much colder with a significant wind chill around. and some of these showers may be wintry not necessarilyjust on hills.
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good morning, welcome to breakfast with nina warhurst and dan walker. our headlines today. mps vote in favour of a controversial change to the way people pay for social care in england, despite a significant conservative rebellion. the vote came at the end of a bad day for the prime minister, who'd earlier delivered what's been described as a shambolic speech to business leaders. eh... forgive me. the man accused of driving a car into a christmas parade in the us state of wisconsin, will appear in court today charged with murder.

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