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tv   World Business Report  BBC News  January 6, 2022 5:30am-6:01am GMT

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the burj dubai has easily overtaken its nearest rivals. this is bbc news with the latest business headlines for viewers in the uk and around the world. a shot in the arm for the travel industry, as covid testing rules for arrivals to england are eased. tightening the purse strings, the federal reserve could start raising interest rates in the us as early as march. covid cases in france hit a new daily record for europe, as president macron piles pressure on the unvaccinated. plus: charged up! electric car sales surge in britain despite a slump in the wider auto industry.
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are you planning on going anywhere anytime soon? we start with the travel industry, because airlines and tour operators have been welcoming the decision by the uk government to ease covid testing rules for travellers. from oaoo gmt tomorrow, fully vaccinated passengers arriving in england will no longer have to take pre—departure covid tests. they will still have to do a test within two days of arrival, but won't have to self—isolate while waiting for the result. travel bosses have complained the extra testing brought in to curb the omicron variant has put many people off travelling, because of the high cost and fear of being trapped abroad. the boss of tour operator
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jet2 told our transport correspondent katy austin the changes have come at a critical time for his industry. january is the peak booking time for holidays, it's when everyone gets through christmas, you've got the january blues and you want to book a holiday and look forward to it and i think it is fair to say the season has got off to a not a great start. this, i think, is a real shot in the arm for the holiday industry and they want to book a holiday and they want to book a holiday and have something to look forward to stopping the last 18-24 forward to stopping the last 18—24 months has been a little bit glum with not a lot to look forward to and i think this could be a real change in that we can now book a holiday and look forward to it. so we can now book a holiday and look forward to it.— look forward to it. so you do think this — look forward to it. so you do think this has _ look forward to it. so you do think this has come - look forward to it. so you do think this has come early - think this has come early enough for there to be a summer holiday recovery?— holiday recovery? yes, it has come at _ holiday recovery? yes, it has come at the _ holiday recovery? yes, it has come at the right _ holiday recovery? yes, it has come at the right time - holiday recovery? yes, it has come at the right time and l holiday recovery? yes, it has come at the right time and iti come at the right time and it will make a huge difference. before this interview was looking at our web statistics
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and i can see that the number of people on the website is going up exponentially as we speak. people are rushing to see if they can book their holiday and get the best room in the best hotel and get it secured and pass on things to look forward to. so it is gonna make a big difference. shares of airlines and travel companies have been rising on hopes that disruption from the omicron variant will prove short—lived. gervais williams is head of equities at the fund manager premier miton. nice to see you and happy new year to you. this is welcome news as we just heard their, at a time when many are considering to travel and of course in the uk, the february half term is not far away at all. ., �* , half term is not far away at all. , all. that's absolutely right, and what — all. that's absolutely right, and what is _ all. that's absolutely right, and what is interesting - all. that's absolutely right, and what is interesting is i all. that's absolutely right, i and what is interesting is that the covid scare is very severe at the moment but it is very steep and lasting relatively short periods so it could be
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within four or six weeks that we're looking at the of the covid variant and that could mean that people have a lot more confidence buying their holidays, booking their flights, booking into hotels, et cetera. flights, booking into hotels, et cetera-— et cetera. although these chan . es et cetera. although these changes have _ et cetera. although these changes have taken - et cetera. although these changes have taken place j et cetera. although these i changes have taken place on et cetera. although these - changes have taken place on the part of the uk government, it is still so complicated when you look to travel, depending on what country you are going to and what is required when you get there. interstellar a minefield, isn't it? it you get there. interstellar a minefield, isn't it?- minefield, isn't it? it is but ithinkwhat_ minefield, isn't it? it is but i think what is _ minefield, isn't it? it is but i think what is interesting l minefield, isn't it? it is but| i think what is interesting is the uk has been a relatively early adopter of trends and so what the uk does i think is reflected elsewhere and as soon as possible care has peaked and it's falling away we will see a lot of the current restrictions reduced and that will give people confidence so think it will be a gradually recovering period and as the boss ofjet to was saying, we are looking at people booking now for later in the year and that is a very good time for them to actually pick up sales as we move forward in the next couple of
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months. �* , ., months. because also as well even right _ months. because also as well even right now, _ months. because also as well even right now, the _ months. because also as well even right now, the ski - months. because also as well| even right now, the ski season in europe is extremely popular for travellers, in europe is extremely popular fortravellers, both in europe is extremely popular for travellers, both during the fabry half term, the easter period as well, and the question is if there were serious restrictions preventing travel, that would be the third yearin travel, that would be the third year in a row and some of these resorts just wouldn't be able to sustain that. resortsjust wouldn't be able to sustain that.— to sustain that. that's absolutely _ to sustain that. that's absolutely right, - to sustain that. that's absolutely right, a - to sustain that. that's absolutely right, a lotj absolutely right, a lot of the resorts themselves have had quite difficult financial situations, they've had to get the extra cash, borrow money. i think the same is true for many of the travel operators, lots of the travel operators, lots of the travel operators, lots of the major airlines have had very thin pickings in recent years, so they are struggling a little bit and they are really looking forward to actually getting the sales is that gives them the confidence to carry passengers when the recovery comes through.— passengers when the recovery comes through. good to talk to ou, comes through. good to talk to you. have _ comes through. good to talk to you. have a _ comes through. good to talk to you, have a good _ comes through. good to talk to you, have a good day. - comes through. good to talk to you, have a good day. we - comes through. good to talk to you, have a good day. we will. you, have a good day. we will see you soon. let's go to the us now, where the world's most powerful central bank could be poised
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to raise interest rates as early as march. that's according to notes from the federal reserve latest meeting. with inflation soaring, fed officials have been considering removing support from the economy faster than anticipated as samira hussain reports from new york. the federal reserve started doing two things when the pandemic first hit america's shores and rocked the world's largest economy stop it instituted a method on buying programme which provided much—needed fuel to the economy and financial markets and it also cut interest rates to near zero which made it cheap to borrow money, which encourage people to spend money. but inflation is now skyrocketing, heading levels not seen in almost for years so now fed officials are looking at removing its support of the us economy faster than it had originally intended. it has already started reducing its bond buying programme and it will speed up that process by doubling how fast uses asset
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purchases. the fed is also signalling about three interest rate rises this year stopping the first one coming possibly as early as march when the bed should have completely ended its massive bond buying programme. raising interest rates will make borrowing costs for homes and cars more expensive, which should slow spending. fed officials believe that these moves will put the central bank and a better position to handle whatever happens next with inflation. let's have a look at how markets are react into this. markets have been reacting strongly to this, suranjana tewari is following developments in singapore. what is going on in asia today? yes, those rising inflation rates potentially and interest rates potentially and interest rates are rarely stoking markets here in asia, she is falling across the board from
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india to south korea and australia. major indices really taking their cues from wall street with australian shares down more than i%, japan's nikkei down more than 2% and even china's chip index is down around 2%. the omicron variant is also causing a lot of problems here in asia, causing a lot of concerns as well, especially in china that continues to produce that zero covid strategy and that despite some data out this morning showing that the private sector, the activity actually grew in december compared with the previous month. but it also did say that covid—i9 outbreaks continue to weigh on the outlook. 50 continue to weigh on the outlook. so why is this happening? higher interest rates make things more expensive for businesses and for consumers. and that means that here in asia, returns on stocks might not be that good and the real fear is that investment capital will go from
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the region stopping now, of course the slower economic cycle in general is weighing on the market here, so they will be looking forward to what the fed actually does. we be looking forward to what the fed actually does.— fed actually does. we will all be watching _ fed actually does. we will all be watching very _ fed actually does. we will all be watching very closely, - fed actually does. we will all. be watching very closely, thank you. let's go to france now, where more than 332,000 covid cases have been recorded in a single day, a new european record. president macron has caused a political storm with a newspaper article threatening, using coarse language, to make life increasingly difficult for people who refuse to get vaccinated. france's parliament has been debating a bill that would exclude the unvaccinated from many public spaces. tomasz michalski is economics professor at the hec business school in paris. nice to see you. this is a very political story as well as the impact it will have on the
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french economy. what more can you tell us about the meeting is going on in government late yesterday? 50 is going on in government late yesterday?— is going on in government late yesterday? so what is going on is that france _ yesterday? so what is going on is that france has _ yesterday? so what is going on is that france has a _ yesterday? so what is going on is that france has a strategy i is that france has a strategy of weathering the current pandemic by trying to minimise the impact on the economy as much as possible, keeping businesses open, keeping schools open which is also important. extending telemarketing but this measure that was adopted just by the french parliament is one of the key issues, because they want to keep hospitals relatively not saturated and ready to accept more and more of those that fall sick to the pandemic. it is a very difficult balancing act, isn't it? similar to what we are experiencing here in the uk as well. trying to keep the
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economy open as much as possible but keep people safe as well. in terms of the politics in france, to what extent is this having an effect because it is an election year. who understand the negative externalities are being vaccinated, what it does to people. most of those who are unvaccinated, they are not supporters of president macron. —— the negative externalities of being unvaccinated. contenders polling at 27% for the first round which is relatively high for a sitting french president, again 16% for marine le pen. but french president, again 16% for marine le pen.— marine le pen. but if the economy _ marine le pen. but if the economy is— marine le pen. but if the economy is having - marine le pen. but if the economy is having a - marine le pen. but if the. economy is having a tough marine le pen. but if the - economy is having a tough time and of course the economic outlook is difficult in the short term for all of us, how
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will that play into how things will that play into how things will go in france and what is the outlook for the french economy?— the outlook for the french econom ? , , . , , economy? this year, the gdp urowth economy? this year, the gdp growth is _ economy? this year, the gdp growth is going _ economy? this year, the gdp growth is going to _ economy? this year, the gdp growth is going to remain - growth is going to remain relatively high at 3.6%, the public deficit is going to remain high at 5% of gdp, but there is going to be a recovery. and avoiding lockdown or major disruptions currently is going to be an important part of this strategy. for the time being, it seems to be working. they also shortened the time period where you have two get isolated after covid exposure. 50 there
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two get isolated after covid exposure. so there are two get isolated after covid exposure. 50 there are hopes that the gdp growth this year is not going to be widely affected. is not going to be widely affected-— is not going to be widely affected. ~ . ., . affected. we will have to leave it there but — affected. we will have to leave it there but thank _ affected. we will have to leave it there but thank you - affected. we will have to leave it there but thank you so - affected. we will have to leave it there but thank you so much j it there but thank you so much for your time. stay with us on bbc news, still to come: together again! australia dismantles its covid fortress as border restrictions are eased. the japanese people are in mourning following the death of emperor hirohito. thousands converged on the imperial palace to pay their respects when it was announced he was dead. good grief. after half a century of delighting fans around the world, charlie brown and the rest of the gang are calling it quits. the singer paul simon starts his tour of- south africa tomorrow in spite of protests and violence - from some black activist groups. i
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they say international artists should continue to boycott south africa _ until majority rule is established. . around the world, people have been paying tribute to the iconic rock star david bowie, who sold 140 million albums in a career that spanned half a century. his family announced overnight that he died of cancer at the age of 69. the world's tallest skyscraper opens later today. the burj dubai has easily overtaken its nearest rivals. take care. this is bbc world news, the latest headlines: the world's top—ranked tennis player, novak djokovic, faces deportation from australia after his visit was cancelled over a covid vaccine exemption. and brush and that peacekeeping troops are deployed to
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kazakhstan after the country's resident called for help to stop violent protests over rising fuel prices. last year was the best ever for sales of electric cars here in the uk. more battery powered vehicles were registered in 2021 than in the previous five years put together, according to industry figures. overall though, the auto industry is struggling to recoverfrom its biggest slump in three decades, with the ongoing pandemic disrupting supply chains, and in particular the avaibilility of vital computer chips. mike hawes is chief executive of the society of motor manufacturers and traders here in the uk. there are two angles on this. there are two angles on this. the rise of the electric vehicle versus the really tough year, again, the new car sales? absolutely. we came into 2021 thinking it couldn't be any
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worse than 2020, and it wasn't. but the growth was only a marginal i%, but the growth was only a marginali%, because but the growth was only a marginal i%, because of that shortage of semiconductors. it is affecting the auto industry globally and affecting other industries as well. that is code related. most of these chips come from asia, they have lockdowns which cut production, and the industry is struggling to catch up. the more positive side is that the market is undeniably moving towards electrified vehicles, especially battery vehicles, plug—in hybrids, about one in six cars that we buy in the uk now can be plugged in, we have a long way to go, but certainly it is great progress.— it is great progress. certainly encouraging _ it is great progress. certainly encouraging to _ it is great progress. certainly encouraging to see _ it is great progress. certainly encouraging to see such - it is great progress. certainly| encouraging to see such huge demand for electric vehicles, but it really depends on where you are in the country as to how viable that is, doesn't it? certainly in london and the south—east, there is a lot of on street charging, but elsewhere, the infrastructure isn't there yet, is it?-
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isn't there yet, is it? that's riuht. isn't there yet, is it? that's right- the _ isn't there yet, is it? that's right. the shift _ isn't there yet, is it? that's right. the shift to - right. the shift to electrification, firstly, we are still at relatively early stages, we still have battery electrics for about 11% of the market, tending to be sold primarily to company car drivers because the tax incentives make it a sensible choice. invariably, at the moment, they are being sold to people who have driveways. but for those who live in flats, though seven terrace accommodation, those who don't have their own dedicated parking space for which they can install a charger, that is a real shortage, and our biggest concern is that the take of these vehicles is continuing to accelerate at a much higher rate than the installation of public charges. london's south—east is growing reasonably well, other parts of the country, less fast. irate reasonably well, other parts of the country, less fast.- the country, less fast. we will leave it there, _ the country, less fast. we will leave it there, but _ the country, less fast. we will leave it there, but thank - the country, less fast. we will leave it there, but thank you i leave it there, but thank you so much. interesting to see the latest numbers. to australia now, where the government is relaxing some covid testing requirements to help lessen the demand for testing kits, and boosters
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and vaccines will be made available to children next week. after almost two years, the country reopened its borders last month to skilled migrants, students and backpackers. australia had barred most foreign nationals in march 2020 under some of the world's toughest covid—i9 controls, and most tourists are still not allowed in. from sydney, phil mercer reports. finally, the wait is over for overseas students, allowed back into australia. so is the anxiety and uncertainty they have had to live with because of some of the world's toughest covid—i9 border closures. the world's toughest covid-19 border closures.— border closures. when i 'ust touched down, i border closures. when i 'ust touched down, sydney, h border closures. when i just touched down, sydney, it i border closures. when i just touched down, sydney, it is| touched down, sydney, it is unbelievable. ijust kept unbelievable. i just kept crying, unbelievable. ijust kept crying, i cried a river, because i was so happy. i was so relieved. well, sorry, you are here now, you are in
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sydney. it are here now, you are in sydney-— sydney. it is exciting, nervous- _ sydney. it is exciting, nervous. everything l sydney. it is exciting, | nervous. everything is sydney. it is exciting, - nervous. everything is new here, _ nervous. everything is new here, and _ nervous. everything is new here, and this is my first time to live — here, and this is my first time to live in _ here, and this is my first time to live in a _ here, and this is my first time to live in a foreign country. i feel— to live in a foreign country. i feel like _ to live in a foreign country. i feel like it _ to live in a foreign country. i feel like it is back to normal, at least — feel like it is back to normal, at least on _ feel like it is back to normal, at least on campus. education has been _ at least on campus. education has been one _ at least on campus. education has been one of— at least on campus. education has been one of australia's i has been one of australia's main exports because of international students. this sector acknowledges that many might never return because of strict measures at the border. these students are young and keen to study abroad, to travel, to improve their english, so the longer that australia's orders were closed, the more attractive other options became, like the uk, like canada, like the us. and we can't begrudge the students for making that choice. australia's covid fortresses but that is gradually being dismantled. the lifting of travel restrictions for skilled
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workers, students, backpackers and refugees is a significant step for a country looking to reconnect with the rest of the world. it has brought relief and joy. among the first to arrive to work in australia was arrive to work in australia was a celebrated artist from south korea. i a celebrated artist from south korea. . . . ., . korea. i am an international o era korea. i am an international opera singer. _ korea. i am an international opera singer, so _ korea. i am an international opera singer, so i _ korea. i am an international opera singer, so i am i opera singer, so i am performing at the opera australia. it was so emotional, when i got to make the curtain call. i want to feel that again, in australia. many others are _ again, in australia. many others are also _ again, in australia. many others are also delighted again, in australia. many. others are also delighted to again, in australia. many- others are also delighted to be allowed in. i others are also delighted to be allowed in-_ others are also delighted to be allowed in. i have been waiting for this for— allowed in. i have been waiting for this for almost _ allowed in. i have been waiting for this for almost ten - allowed in. i have been waiting for this for almost ten months | for this for almost ten months already, when the prime minister, scott morrison, announced that the borders would open, i immediately booked a ticket and flew right away. booked a ticket and flew right awa , �* , ., ., , booked a ticket and flew right awa. , .., ,, ., booked a ticket and flew right awa. , .., ,, . ., away. australia is desperate to fully reconnect _ away. australia is desperate to fully reconnect with _ away. australia is desperate to fully reconnect with the - away. australia is desperate to fully reconnect with the rest i fully reconnect with the rest of the world. but the pandemic has entered another unpredictable phase. for some, at least, the freedom to travel is a gift they have waited many months to receive. well, that
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is not to be seen in the hotel room where novak djokovic is waiting to hear if he will be allowed in or not. the world number one tennis player is currently looking at an injunction request against the visa cancellation, but has been put to the court by those representing novak djokovic. we will let you know as soon as we know. the last two years have meant huge disruption in the business world, spelling disaster for some and providing opportunities for others. so what will 2022 bring in global business? michaeljacobides is professor of entrepreneurship and innovation at london business school, he's been looking at this and joins us from the greek island of kea. good to have you on the programme. in terms of disruption this year, what will grab the headlines? i disruption this year, what will grab the headlines?— disruption this year, what will
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grab the headlines? i think the disru tion grab the headlines? i think the disruption is _ grab the headlines? i think the disruption is changing, - grab the headlines? i think the | disruption is changing, because what you see, rather than having new firms that enter the scene and entirely up and markets, you now have some new digital giants that are upending traditional industries, so if you think about who is being disrupted, well, you can think about entertainment and apple disrupting entertainment, you can think about healthcare and wellness and all of fintech trying to enter in their. you can think of financial services, some banks are saying that all of these wonderful new technologies, these block chains and the non— fungible tokens are going to try to come in. so we are entering a world whereby disruption is not only coming from these new companies that are founded in a small garage, but is driven by companies that are trying to expand their scope and take advantage of greater new opportunities that are presented to them. you have mentioned — presented to them. you have mentioned entertainment i mentioned entertainment committee mentioned fintech as
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well, that has been going on for some time, other industries where disruption has not yet taken place, where it could happen in the nearfuture? well, we're seeing already a of service industries that are changing. the funny thing is that we are speaking about industries, and one of the big disruptions we are seeing is that the nature of the traditional industries is starting to melt away, and we are seeing these bubbles. so what happens is that the digitisation allows you to serve the customer in cool new ways, that is why a bit tech is trying to say, well, i will serve all your needs. 50 if you have a traditional retailer you are notjust concerned you are going to find a new form of retailing, you are concerned people are simply not going to bother to show up in the same sector, as it were before. that is why i mention things like wellness and healthcare. here
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is the interesting thing, regulation is going to play a very big role, the other thing that you need in order to operate is to ensure regulators allow you to do stuff. to give you one example of how things are changing, considerfor are changing, consider for instance are changing, considerfor instance what is happening in terms of digital advertising, advertisers, even news media, are finding themselves entirely pushed by some of these big tech sectors, i think we will see that continuing on and amplifying on the critical question is, what will the regulators do? right now, all the bit tech has been pushed back by regulators, saying, don't disrupt us anymore, you're already taking a lot of value out. bill you're already taking a lot of value out-— you're already taking a lot of value out. all right, michael, we will have _ value out. all right, michael, we will have to _ value out. all right, michael, we will have to do, _ value out. all right, michael, we will have to do, sorry, i value out. all right, michael, | we will have to do, sorry, you are on a roll but i will have to wrap you up, i'm afraid. we almost out of time. at a lovely down that beautiful island in
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greece and we will see you again, i am sure. greece and we will see you again, iam sure. i hope greece and we will see you again, i am sure. i hope you also have a lovely day. that is all from me. see you soon. hello. hard to believe that only a few mornings ago, we were starting the day with temperatures in the mid—teens. out there at the moment, a widespread and quite sharp frost as we start thursday morning's commute, temperatures even in the city centres below freezing. but it's into the countryside we're seeing temperatures in minus double digits. temperatures have risen, though, to start the day across in northern ireland, and that's because we've got cloud spilling in here ahead of what will be a wet and windy day for a fairfew. the sunshine giving way to the cloud, the rain, and also some hill snow. the hill snow is happening because our weather system, these weather fronts pushing their way eastwards, will be pushing into that cold air, which is sitting in place at the moment. plenty of sunshine across central and eastern areas to start the day. but through the morning commute, outbreaks of rain,
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a little bit of hill sleet in northern ireland spreads its way into western parts of northern england and wales, turning readily to snow in the scottish hills, also in the lake district and the pennines, giving a covering of snow in places, and all being blown around by strong—to—gale force winds touching 60—70mph across some western areas. some parts of east anglia, the south—east will stay dry until late in the afternoon and evening, even if it does cloud over. but here across many eastern areas, it'll still be a cold day, even though there's a slice of mild air pushing in, just 3 celsius, maybe up to around 8 or 9 for a time in the west, finishing the day with sunshine and showers. then it's showers into the evening and overnight to take us through into friday, those showers turning wintry once again as temperatures drop. there could be some frost and ice around as well as we start friday morning, even though temperatures nowhere near as low as they will be to start thursday. 50, another cold day on friday. we're almost between that one system clearing and another one pushing in, and we've got winds coming in from a north—north—westerly direction. that will bring frequent showers across western scotland, northern ireland, north—west england and north wales, given a covering of snow for one or two spots mainly over the hills, but even some lower—level sites. forsome, it'sjust
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rain, sleet and hail. we'll have to watch the system as well spreading across southern counties, which could bring a few longer spells of rain, even a bit of sleet and snow to the south. a cold day in the wind. then we flip things around to something milder as we go through into saturday. this next weather system pushes its way in. slightly wider, more extensive than the one we are seeing on thursday, so more in the way of rainfall around. gustiest winds in the south, we'll all see rain at some point, and then colder to end the day and into sunday morning with a touch of frost before more rain arrives in the west later on. take care.
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good morning, welcome to breakfast with naga munchetty and jon kay. our headlines today. no vax? no entry. the world's top ranked tennis player novak djokovic faces deportation from australia ahead of the open because of strict vaccine rules. on the issue of mr djokovic, rules are rules. and there are no special cases. here in the uk, testing rules are being relaxed. people without symptoms who have a positive lateral flow won't need a follow—up pcr. record nhs waiting lists in england. a warning that a lack of staff could derail plans to clear the backlog. feeling the pinch.
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pressure mounts on the government to act as energy bills look set

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