tv World Business Report BBC News January 17, 2022 5:30am-6:01am GMT
this is bbc news with the latest business headlines for viewers in the uk and around the world. the boss of credit suisse resigns, after an internal investigation into his out—of—work conduct. getjabbed or stay at home. france gets tough on the unvaccinated as it approves a new vaccine pass, despite huge protests. the gateway for a prosperous future. we take a look at sri lanka's proposed new port city which is backed by chinese investment, however some locals are concerned about beijing's growing influence. and the show must go on. a virtual world economic forum gets under way this week. we talk to an award—winning company in cape town that helps ex—convicts get back to work.
let's start with a major resignation in the world of banking. the boss of credit suisse — antonio horta—osorio — has stepped down after being investigated by the bank's board for breaching covid—19 quarantine rules. horta—osorio had only been in the role for eight months and had promised to restore the swiss bank's reputation following a spate of high—profile scandals. credit suisse has already announced axel lehmann will be its new chairman. joining me now is russ mould, who's a investment director at aj bell. good morning to you. for those of us _ good morning to you. for those of us in — good morning to you. for those of us in financial news we know this man — of us in financial news we know this man very well, a former ceo — this man very well, a former ceo of— this man very well, a former ceo of lloyd's and other banks. are you —
ceo of lloyd's and other banks. are you surprised to hear this? in a way it is a terrible shame because mr horta—osorio did a fantasticjob at because mr horta—osorio did a fantastic job at lloyds because mr horta—osorio did a fantasticjob at lloyds here in the uk and managed to turn it around. unfortunately he found himself in a difficult position haven't broken british and swiss quarantine rules, or at least reportedly so. he was in a difficult position because he just done a strategic review of credit suisse notjust changing corporate structure and a change to risk management but also stressing personal accountability and responsibility for actions so do then potentially be seen doing something in breach of the was really not a good position to find himself. an position to find himself. an untenable _ position to find himself. an untenable position for him but for credit suisse he has only been there eight months and he was brought in to try and restore order following many scandals. it restore order following many scandals. , . , restore order following many scandals. , ., , ., scandals. it is a very long list. scandals. it is a very long list- the _ scandals. it is a very long list. the company - scandals. it is a very long list. the company did - scandals. it is a very long list. the company did not scandals. it is a very long i list. the company did not do too badly during the great
financial crisis. it was not involved in some of the silly things that major international rivals were. but over the last decade it has been involved in tax evasion scandals and in the last 12 months it has dealt with regulators over loans in mozambique, involved in a major hedge fund collapse in america and also lost in awful lot of money for its customers and having to start repaying them. so a series of multibillion—dollar missteps in the last 12 months. for shareholders _ the last 12 months. for shareholders of - the last 12 months. for shareholders of credit. the last 12 months. for shareholders of credit suisse, though still with them, this is another difficult time to keep investors on board. it another difficult time to keep investors on board.— investors on board. it is. shares — investors on board. it is. shares peaked _ investors on board. it is. shares peaked at - investors on board. it is. shares peaked at 70 - investors on board. it is. i shares peaked at 70 swiss francs before the gmc in 2006—7 and they are trading at about ten francs now. so anyone who is stuck through that has been patient but not rewarded. they will look now to the strategic review that mr horta—osorio and the chief executive put forward and axel lehmann the incoming chair after a long career at a
rival including zurich insurance, will be seen as a safe pair of hands.- insurance, will be seen as a safe pair of hands. thank you. have a good — safe pair of hands. thank you. have a good weekend. - let's get some of the day's other news. glaxosmithkline has rejected three unilever offers to buy its consumer goods division, including one worth £50 billion. gsk said the proposals "fundamentally failed" to reflect the value of the division. the financial times reports it's seeking a bid of at least £60 billion for any potential deal. campaigners have urged norway's giant state investment fund to pressure cladding firms and builders to fix fire safety issues. grenfell survivors and leaseholders affected by the cladding crisis called on norges bank to pull £5.7 billion of funds from companies if they fail to do so. in the us, airlines cancelled over 2700 flights on sunday, as a winter storm was poised to hit the east coast over the holiday weekend. according to flight tracking website flight aware, over a thousand flights were also delayed. american airlines was worst hit, with 600 of its flights cancelled.
to france now, where the country's parliament has given final approval to the government's latest measures to tackle the covid—i9 virus. lawmakers in the lower house of parliament voted overwhelmingly in favour. the bill removes the option of showing a negative covid—i9 test to gain access to a host of public venues. instead, people will have to be fully vaccinated to visit bars, restaurants, some transportation and other public venues. scott marcus is a senior fellow at bruegel. good morning to you. this is something being closely watched, what is happening in france, across europe because other governments may follow suit. . , ., , ., suit. indeed and in germany are already in _ suit. indeed and in germany are already in that _ suit. indeed and in germany are already in that direction. - already in that direction.
president macron was clear in saying his intent was to literally kiss off the unvaccinated and so you see these strict —— movements to restrict things to do but at the same time the validity of a vaccine pass is being reduced so it is trying to push people to get vaccinated a second time all those who have not been or those who have been, to be boosted. those who have been, to be boosted-— boosted. what do french citizens now _ boosted. what do french citizens now have - boosted. what do french citizens now have to - boosted. what do french citizens now have to do l boosted. what do french | citizens now have to do in order to use many facilities or go to the pub or a restaurant? in france as in a number of european countries, they have to be able to show that they have been vaccinated, very much the case in italy and increasingly so when germany. 0ne increasingly so when germany. one of the things that the europeans did right at the europeans did right at the european level was to create a covid vaccine certificate, a qr code that creates a verifiable means of showing that you have been vaccinated. the uk is also part of the system. 33
countries outside the eu are on it and many of these countries have an app that you can display or you can show a printed copy of the qr code to prove that you have been vaccinated or tested, in those cases, for france the test is no longer adequate and that is the big change. in germany that is also a change unless you have been boosted the test is no longer enough either. more than 9096 of — no longer enough either. more than 9096 of adults _ no longer enough either. more than 9096 of adults in - no longer enough either. more than 9096 of adults in france i than 90% of adults in france have been fullyjabbed so i am sure that those are among the many protesting would argue is this really necessary when the vaccination uptake has been so successful? it vaccination uptake has been so successful?— successful? it is a fair question _ successful? it is a fair question but - successful? it is a fair question but on - successful? it is a fair question but on the l successful? it is a fair. question but on the one successful? it is a fair- question but on the one hand successful? it is a fair— question but on the one hand we are likely seeing a spread anyway. remember, omicron is highly contagious and it is pretty contagious even among those who have been vaccinated. the intent of the vaccination is to try to keep people from having a severe outcome or death. and there is also the
risk of contagion among healthcare workers and those who are responsible for critical infrastructure. for that reason we are seeing a bit of an opposite movement when it comes to quarantine times in many european countries. france, germany italy, it is either a short and quarantine with the fear that so many people may be out of action as a result of the omicron virus all at the same time that it will not be possible to properly operate healthcare facilities or critical infrastructure.- facilities or critical infrastructure. ~ ., ~ infrastructure. we will talk about that _ infrastructure. we will talk about that in _ infrastructure. we will talk about that in more - infrastructure. we will talk about that in more detail. infrastructure. we will talk | about that in more detail in infrastructure. we will talk i about that in more detail in a moment but at the moment, thank you. and before we look at quarantine timing, let's talk about china. the second biggest economy. it has shrugged off the pandemic blues deposed of 8.1% last year. which was slightly better than many analysts were expecting. however in the fourth quarter of last year china's economy grew by 4% — the slowest growth for 18 months — reflecting the impact china's strict covid policies have had
on manufacturers — supply chains and the wider economy. joining me now from singapore is our asia business correspondent, mariko 0i. give us more detail. where china is headed the global economy tends to follow. indeed, sally. it is important to remember that while growth of 8.1% is indeed impressive, the country was in the middle of pandemic lockdowns in 2020 so it is coming off a very low base and when you look at the latest data closely there are some worrying signs as well. firstly the property is set that we keep talking about, it is attracting less investment because some of its biggest developers are facing a debt crisis and now the industry slowdown was triggered by beijing's introducing new measures to limit the amount of
money some of those real estate companies could borrow. it does, is a bit of a surprise but at the same time a shock and that could affect the rest of the economy because construction of accounts for about a quarter of the gdp. consumers seem to be feeling less optimistic as well with retail sales figures coming in much weaker than expected. china strict covid zero policy has meant that some major cities began to enter lockdown in last month because of omicron and of course we are yet to see the full impact of that. that is another worrying sign. in order to help cushion the slow down the country's central bank has, for the first in almost two years, taken the unexpected step of making some key loans for businesses cheaper but beijing is likely that make unlikely to go further because the debt clampdown remains and they are unlikely. that policy before the olympics.
unlikely. that policy before the olympia-— unlikely. that policy before the olympics. thank you. stay with us here _ the olympics. thank you. stay with us here on _ the olympics. thank you. stay with us here on bbc _ the olympics. thank you. stay with us here on bbc news. - the olympics. thank you. stay | with us here on bbc news. still to come, the gateway for a prosperous future. we take a look at sri lanka's proposed new port city which is supported by chinese investment. but some locals are very concerned about beijing's growing investment. donald trump is now the 45th president of the united states. he was sworn in before several hundred thousand people on the steps of capitol hill in washington. it's going to be only america first. america first. demonstrators waiting for mike gatting and his rebel cricket team were attacked with tear gas and set upon by police dogs. anti—apartheid campaigners say they would carry on the protests throughout the tour.
they called him the 'butcher of lyon'. klaus altmann is being held on a fraud charge in bolivia. the west germans want to extradite him for crimes committed in wartime france. there, he was the gestapo chief klaus barbie. millions came to bathe as close as possible to this spot. - a tide of humanity that's i believed by officials to have broken all records. this is bbc world news, the latest headlines: novak djokovic arrives in dubai after being deported from australia, where the tennis 0pen he was hoping to compete in gets under way. two teenagers in the uk have been arrested in connection with the siege at a synagogue in texas on saturday. the self—isolation period for people who test positive for covid—i9 has been cut to five full days in england.
from today people will be able to leave isolation after negative lateral flow tests on days five and six. uk ministers had touted the move as a way to reduce staffing pressures in some sectors, including the nhs. so how much will this help business? roger barker is director of policy at the institute of directors. good morning again to you roger. what does the ayodi say about this? i assuming you are positive? we about this? i assuming you are ositive? ~ . positive? we are positive. it was u- positive? we are positive. it was up government - positive? we are positive. it was up government to - positive? we are positive. it| was up government to decide whether this would be a feasible step from a public health perspective, and said she'd javed has said that two—thirds of covid cases will not affect us and combined with two executive lateral flow test it seems reasonable at that point to release people from
isolation. it is going to help businesses. there are many businesses. there are many businesses who are really suffering from staff absences at the moment. perhaps ten to 20% absence rates across a wide range of sectors which is really having a major impact on business. let's not forget the most employees are really suffering quite a mild illness. the thing which is keeping them away from work is the isolation requirement, so if we can safely reduce that isolation requirement, it's very positive business. requirement, it's very positive business-_ business. some sectors are particularly _ business. some sectors are particularly vulnerable, - business. some sectors are particularly vulnerable, we | particularly vulnerable, we have mentioned the of course, hospitality as well, whereas other businesses can ride this storm much more easily, can't they, if their staff are working from home anyway? absolutely. if you are in a business where employees need to be present in order to deliver a service, such as the ones you have mentioned, the mail system, transport system,
trains, and so on, then it's a real problem. staff absences really cause you to either not provide services to clients or to close down premises and facilities. is a major problem. those who are working at home, because this is a mild disease, it's not really going to affect flexible working too much. despite the curveball that omicron presented when we first heard about it in december, how are your members feeling at the start of this year about the year ahead? are they mainly optimistic? what's the feeling about the year ahead?- optimistic? what's the feeling about the year ahead? there is no doubt that _ about the year ahead? there is no doubt that the _ about the year ahead? there is no doubt that the confidence i about the year ahead? there isj no doubt that the confidence of our members talk a tumble when plan b came into place. they were getting ready to take off this year, and start to grow, and we still feel that this is and we still feel that this is an economy that really wants to grow. but with the arrival with omicron, with the arrival of plan b, that confidence has
significantly gone down. it's round about the level that it was one year ago when we actually had quite meaningful restrictions, and i think if we can see the end of plan b coming on the 26th of january when the government will review it, and there is no further restrictions, then i think we're really confident that the economy is still in a position to start to move forward in that businesses will start to invest feel more confident. we shau invest feel more confident. we shall keep _ invest feel more confident. we shall keep a — invest feel more confident. we shall keep a close eye, roger barker, thank you. sri lanka says its proposed colombo port city, being built on a land reclaimed from the sea, will massively boost its economy. a chinese company has invested $1.1; billion for the man—made land, adjoining colombo. but there are concerns over beijing's growing influence in sri lanka, which is under pressure due to its external debt crisis. anbarasan ethirajan was given exclusive access to the port city.
a whole new man—made land adjacent to colombo, now a vast expanse of sand. this was soon transformed into a high—tech port city, and here, sri lanka is building an international financial centre with tony's funding. this land was under the sea a few years ago. a chinese company has invested $1.4 chinese company has invested $1.1; billion to reclaim this $1.11 billion to reclaim this entire land, about 269 hectares. the sri lankan government wants to build a huge financial district rivalling singapore or dubai. sri lankan officials are excited about the prospects. it excited about the prospects. it will be an economic game changer, what you see out here, which is desert at the moment was reclaimed from the sea, which gives three longer a chance to redraw the map, build a city of world—class proportions and functionality,
and compete with centres of business excellence. this promotional _ business excellence. this promotional video - business excellence. this promotional video says . business excellence. this promotional video says that the colombo port city will be the first of its kind in south asia, hosting multinationals and globalfinancial asia, hosting multinationals and global financial giants. more than 40% of the land has been given to a chinese company on a 99 year lease. the construction has gained momentum under the watchful eyes of chinese engineers and workers. with an increasingly assertive china, there are concerns over beating 's motives here. palumbo has already handed over a strategic port in the south to chinese control after struggling to pay off the debt to chinese firms. sri lankan officials insist the port city is just a commercial venture, but some fear this could become a chinese outpost in the long run.— in the long run. definitely, at the moment— in the long run. definitely, at the moment this _ in the long run. definitely, at the moment this way - - in the long run. definitely, at the moment this way - at - in the long run. definitely, atj the moment this way - at the the moment this way — at the
way this government has agreed to the chinese, china has taken over everything in the port city, the whole thing. one day, sri lanka will not have any say in this. three longer hopes with sweeping tax breaks and tax—free salaries this offshore financial centre will attract millions of dollars from far and wide, but the us has warned that the relaxed business environment could become a haven for money launderers. as far as this particular area is concerned, there is no way that can happen because the law model, the criminal law applies here, so we have a money—laundering act, we have a business intelligence unit, we have financial intelligence unit, so with all those things, there is no way that somebody can get out of it. 5ri there is no way that somebody can get out of it.— can get out of it. sri lanka 's economy _ can get out of it. sri lanka 's economy is _ can get out of it. sri lanka 's economy is in _ can get out of it. sri lanka 's economy is in tatters - can get out of it. sri lanka 's economy is in tatters as - can get out of it. sri lanka 's economy is in tatters as it i economy is in tatters as it struggles to replay that repay its huge external debt. it owes
around $8 million to china alone, while amazing, city like hong kong and sri lanka will sit in the strip of the indian ocean. today we should have seen the start of the world economic forum in davos, however like many other events the in—person gathering is postponed due to omicron. but world leaders and company bosses will still meet online and at the digital event will also announce its 15 social innovators of the year for 2022. the awards are handed out by the schwab foundation for social entrepreneurship, which is part of the wef, for their work tackling global challenges. joining me now from cape town is one of the winners, rene parker, who's the ceo and managing director of reconstructed living labs. congratulations to you and all those who work at your company. tell us what is your business and what is it all about? good
morning- _ and what is it all about? good morning. rlabs _ and what is it all about? good morning. rlabs is _ and what is it all about? good morning. rlabs is a _ and what is it all about? good morning. rlabs is a social- morning. rlabs is a social enterprise, we provide training services, we provide business empowerment, and a main aim is to make communities able to solve their own problems, so through various instruments, using technology mainly we provide the services of our communities.— provide the services of our communities. you are helping those who _ communities. you are helping those who have _ communities. you are helping those who have been - communities. you are helping - those who have been imprisoned, those who have been imprisoned, those who have been imprisoned, those who are, used to be members of gangs, those individuals would find it very difficult to get a job and remain in employment, to get into that workplace as it were, is that correct? we into that workplace as it were, is that correct?— is that correct? we provide trainin: is that correct? we provide training and _ is that correct? we provide training and we _ is that correct? we provide training and we assist - is that correct? we provide l training and we assist people from difficult backgrounds,
underserved communities, so really a variety of individuals with different backgrounds that we assessed. tell with different backgrounds that we assessed.— with different backgrounds that we assessed. tell us how you do this because _ we assessed. tell us how you do this because we _ we assessed. tell us how you do this because we are _ we assessed. tell us how you do this because we are aware - we assessed. tell us how you do this because we are aware of- this because we are aware of many organisations that are trying to do what you are doing but you have seen a huge success rate.— but you have seen a huge success rate. we definitely start with _ success rate. we definitely start with a _ success rate. we definitely start with a person, - success rate. we definitely start with a person, we - success rate. we definitely - start with a person, we believe that human beings have an innate ability to learn, to survive, and we all want to see a better version of ourselves, and that is really where we start, so we bond with a person through training programmes, giving them various skills and how to lock their potential, and once that happens, we realise that people actually have business ideas, people are able to innovate by themselves, and we provide a safe environment for this to happen, many ideas, many businesses are started, and it provides
economic empowerment to these individuals that are either able to start their own businesses, or they are able to be absorbed back into the economy. be absorbed back into the economy-— be absorbed back into the econom. , . . ., ., y be absorbed back into the econom., . . .,._ , economy. digital technology is at the heart — economy. digital technology is at the heart of _ economy. digital technology is at the heart of what _ economy. digital technology is at the heart of what you - economy. digital technology is at the heart of what you do, i at the heart of what you do, isn't it? make sure you are at the cutting—edge of technology and therefore they are very much involved in that learning about that and training in that. yes, technology is an enabler, we believe that when we started out in 2009, we used social media as a digital tool to provide training and giving a digital voice, because everyone has a story in the minute you own your story, that is what you give to the world, so we were using social media, we launched our first innovation as rlabs, providing instant messaging services, and over the years we have seen how technology has enabled not only
the individuals themselves, but how it catapulted and enabled communities to provide broader services and other assets to their organisation, always staying abreast of what is new and what is happening because we do believe, we don't want anyone to be left behind,. it's been an absolute pleasure to speak to you and congratulations once again, thank you for telling us about what you were up to. let briefly show you financial markets in asia, no action on wall street, it's a public holiday so they are entering the long weekend but what is standing out as the price of oil, of $86 per barrel currently, choppy waters in general in asian markets partly because of the information and obtain about growth which was mentioned earlier but pointing out the retail sales, only coming in ati.7% out the retail sales, only coming in at 1.7% growth,
analysts were expecting nearly 4% so that does not bode well, consumer confidence very low in china. you are up—to—date, thanks for your company, and i will see you soon. hello there. a bit like it was last week, this week is going to be a quiet one. high pressure never too far away, and that means a lot of dry weather. indeed, some parts of the midlands, eastern england could be completely dry this week. it is going to be quite cold, not so much during the day but i think overnight, we are going to find some frost. with clearer skies developing at the moment, we start monday with a frost, particularly across england, wales and also northern ireland. some patches of mist and fog around by the morning, mainly across parts of wales and the west country. those should fairly quickly lift and there's going to be a lot of sunshine around for most of us, and light winds too. the winds won't be as strong as they were on sunday in northern scotland — should be dry here but there will be a lot of cloud — and we're sitting at temperatures of 8 or 9 degrees, which isn't bad, really, for this time of the year. now, i mentioned high pressure.
there it is on monday. as we head into tuesday, these weather fronts are poking in from the north—west but underneath the centre of the high, with those clearer skies and light winds, we are going to start with more fog on tuesday, particularly across parts of the midlands, east anglia and the south—east and whilst it lifts, it could stay a bit grey all day. some sunshine around but more cloud coming in on tuesday, and those weak weather fronts bring in some rain across northern ireland, eventually into western parts of scotland, but lifting temperatures perhaps into double figures. likely to be a colder day, though, for england and wales, especially where it stays grey and misty. those weather fronts continue to move down from the north—west with a stronger wind, as well, but those weather fronts are weakening all the while, so there's not much rain away from north—western parts of the uk. more cloud, a bit of patchy light rain or drizzle to clear from england and wales, then sunshine follows from the north, strengthening those north—westerly winds and it's getting colder, as well, hence those wintry showers in the far north of scotland. could make double figures still in the far south—west of england. now, i mentioned high pressure is going to dominate over the week ahead, and another one is coming in later in the week but for a while, it's going to be centred to the west of the uk, hence those colder north—westerly winds
coming our way and dropping the temperatures overnight, so thursday, a more widespread frost. those are the temperatures in towns and cities. maybe a bit more cloud keeping temperatures up in northern ireland and there'll be more cloud across northern scotland, a stronger wind here, maybe pushing one or two showers down some of those north sea coasts but generally, thursday will be dry and, again, there'll be a lot of sunshine, a chilly wind, yes, and temperatures will be typically around 6—8 celsius.
good morning, welcome to breakfast, with dan walker and sally nugent. 0ur headlines today. two teenagers are arrested in manchester as part of the investigation into the texas synagogue siege — the man behind the attack was from blackburn. search and rescue flights begin over tonga, as fears grow for a missing british woman who it's thought was swept away in the tsunami. tory mps return to westminster after a weekend of hearing what voters think of the downing street lockdown parties. the number of families struggling to pay for their gas and electricity is expected to treble. average bills could rise from £100 a month, to 150 in april. we'll speak to some of those already worried about the increase.