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tv   Counting the Cost  Al Jazeera  September 13, 2022 8:30am-9:01am AST

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of color than ever before. gray hair apparently is also in fashion. i think there's definitely a train. oh, it's great to see from somebody who's not in their twenties, thirties, fourties or fifties. it's really nice to see because just because you've got grain here doesn't mean you're not stylish. some say there's still work to be done. however, especially when it comes to showcasing clothes made for plus sized people. we're seeing a lot of brands that try to embrace that on their social media, but when it comes to actual models coming down the runway, we're still seeing that lack of diversity. and i think the industry has a long way to go. still, there's no shortage of beauty or i popping style at this trend setting event featuring top designers from around the world. kristin salumi al jazeera new york, the 74 of emmy awards wrapped up in los angeles with the h. b o series succession taking the top honor for best drama the so based on
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a family that controls a media company. so matthew mcfadden, when best supporting actor in a drama is and i a one her 2nd best actress. i me for her portrayal of ruin euphoria and had lawsuit and the white los is also received 3 awards each. sorry and mike and i've been talking ah, this out there on these. the top stories, wallace in scotland had been paying their last respects to queen elizabeth. the 2nd a coffin is lying at rest in edinburgh before traveling to london late on tuesday. earlier the queens at 4 children. behold a traditional vigil around the coffin of the late mother on saint joe's. saint. joe's cathedral friends near king charles the 3rd stood for 10 minutes with his siblings mona for robust and who's in edinburgh. it's a time when the family is able to show their respect, show their eyes there to a certain extent, humility, i suppose,
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but certainly they indicate how somberly they take this situation publicly to the members and to the people around them to, to show their public respect for queen elizabeth the 2nd. it is a very unusual situation in one respect because this is the 1st time that a woman has taken part in it. a princess on. of course the princess, while it is the queen's daughter and is therefore entitled to take part in this as when fighting on the border between long time rivals, armenia, and as of a john and mary armine, as defense, ministry voted intense shelling and artillery fire on 3 of his military positions, by the, as a, by johnny army, as, as the vice on says, armenia started the latest provocation to delay the signing of the peace treaty agreed upon by both sides in august. and russia is acknowledging huge losses in the, in ukraine's at northern cot. keep region. moscow admits is forces of and
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outnumbered in the past week with ukraine. we take in territories in the northeast since early september, ukrainian troops of advanced rapidly and iran, as, as is ready to cooperate with the u. s. nuclear watchdog, to revive the 2015 and you can deal. it comes after reports by the i a e, a that found a could not guarantee the peaceful nature of trans at nuclear program. and the un has welcome to a statement by forces in norden, e. theo, p as t gray region, saying they're open to a cease fire. the tea grains also are ready to accept and african union that piece process that something they've dismissed in the past. those deadlines, news continues, hey, on, out as era from in prison, dissidence, to inspiration from founding the independent states to fiercely defending his people from ethnic cleansing. in the conclusion of a to paul documentary, seen a jesse a will expose the wise to power of the 1st year of an independent bosnia herzegovina
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is at beg of it from prisoner to president on a jessina. ah, [000:00:00;00] i hello, i'm adrian said again. this is counting the cost analysis area. look at the world of business and economics. this week. russia shuts off europe's main gas pipeline. off the g 7 countries agreed to cap the prices of russian oil. the u plans to set a limit on moscow's gas prices. who was winning the energy back? also this week, europe's energy crisis deepens. as russia, titans it's choke, hold on supplies. the eas says it's prepared to meet the challenge. should moscow
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turn off the gas champs? but is it? and skyrocketing energy prices are squeezing people's income's in rich and poor countries alike. when will global inflation peak? or could the rising cost of living remain far too hot? and all out energy war between russia and the west threatens to deepen europe's energy crisis, putting pressure on governments to make interventions in the energy market to rein in soaring prices. but it also puts the kremlin revenues at risk that is meant to stem the flow of funds into its war coffers. moscow's earnings from energy exports are expected to rise by 38 percent this year. western capital say they want to cut off that financial lifeline. the g 7 group, the u. s. japan, canada, germany, france, italy, and the u. k. have agreed to kept the price of russian oil shortly after that decision. russia's energy giant announced the indefinite hold to gas flows to
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europe, through the north stream. one gas pipeline, citing the need for additional repairs. gas prices serve more than 35 percent. the euro slid to its lowest in 2 decades as moscow warned that it won't reopen that pipeline until sanctions are lifted. and the e u is planning a cap on rush and gas prices to among other proposals to curb soaring energy costs . president vladimir putin has warned the west that it cannot isolate russia. he says that western sanctions against moscow have back fired. and now threatened, the whole world out is here, is that in bummer reports, a bold move from brussels, but will it work? the european commissions going ahead with a plan for a new price cap on russia? natural gas. we all know that our sanctions, i deeply grinding into the rush economy with a heavy negative impact. but putting is partially buffering through fossil fuel
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revenues. so here the objective is we must cut rushes, revenues, which putting you as, as to finance his atrocious war in ukraine. since february, the use imposed sanctions on russia and acted to wean itself off russian energy. some member states are skeptical of the price cap worried it could push moscow to turn off the taps completely rushes already stopped or reduce supplies on $3.00 of its biggest westwood gas pipelines. while oil supplies have been re directed eastwards as its economy and horses downward console from the westland many global markets, and at any point since the end of the cold war. and in some respects the weight warn you, craig is gone to russian. russia subjection sanctions means that russia's economic fate is sealed. it has to become an asia facing east and facing economic power, or it leak nancy parish. if president putin's worried, he's not letting on. speaking of the eastern economic forum in vladivostok, he called the price cap idea stupid me. he also addressed another issue with global
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implications. ukraine's grain exports shipments like this one resumed after key. even moscow reached to deal in july with turkey in the united nations, acting as guarantors. but putin says that developing world is being cheated is uletha misses 20. if we remove turkey as an intermediary, virtually all the grain was brought not the poorest countries but to the european union. the world food program speaks of the need for the poorest countries. out of $60000.00 tons of production, just 3 percent went to developing countries. and over here with what you and data shows, turkey has been the biggest single destination with cargoes also going to china, india, egypt, yemen, somalia, and djibouti. whatever the reality vladimir putin insists his country's already seen off the worst effects of western sanctions. sang inflation has started to fall . he told his gathering rushes natural resources would protect the nation as jobs and companies disappeared in europe. that surely
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a warning the continent cons ignore. joining us now, david beck, the chief economist of london based energy intelligence provider, for tex, he's in kito in ecuador, could teddy with us, david the so the ear is planning this capital on gas prices among other proposals. is that going to help its energy market? susan simply raised the stakes even further with russia. yes. the stakes with rational, already extremely high. i would say the gods christ kept question is secondary to the prize camp question because that lead to violence of global important step one is primarily aggression. but your market at this point of time, they also 2 aspects to this. the gas price kept the $1.00 is the price of this paid to ship a gas import. but ultimately, the more important question at this point of time is better. this has to go married or the empower innovation is put out to force the merit or the means that always
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has the most expensive power source will define the price of electricity. and this is now natural gas with a very small share and all power makes basically leading to a mess had been told profit for the power generation industry that is processing their renewables or coal or whatever. okay, so these are the 2 of the we'll talk, we'll talk about that. how the energy market is if it's priced a little later in the program. in the meantime, you mentioned that the cap on oil, that is that cap on oil price is going to work. and why does the west need that price cap when european nations are trying to phase out the reliance upon russian oil in the 1st place? the oil price cap is basically not needed that much from the european point of view . it's needed from the global point of view. because the question is, how much oil the supply washer to the market?
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and there is an insurance been coming up on shipping oil to food companies, and that is the powerful penn from the european union. and that is happening basically to cut off washing supply washer. it's actually struggling to place its balance in the market. yes, china and india buy more than the used to, but pretty much everybody else has data on the sidelines. the complexities and that this s now there with even no actually legal restriction, an important question. but the insurance band will come up in december. we fully effective in december this year, and that is something that you could say. it's actually forcing cheese 7 in the european union. in installing this price kept because as part of this price kept this injury, which band will be stopped or ended. as you said, china, india could undermine the price cap anyway, by continuing to buy russian oil at whatever price russia charges. how do you go
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about then policing this? miss g 7, price capital oil yet let me say, or 1st of birth on china and india. i think it's over in the interest, i just looked up, our data in china and india imported 9 percent of the oil from russia before the war started and not being 17 percent of the way from russia. so that means still 83 percent of that is imported from other countries. so it's essential for those countries as well that the oil price remains as low as possible into gilbert oil price cap. would basically also incentivize russia to export as much as oil as possible because that would then be the only level for income to waste production exports. so this is wide, so they're interest and ultimately, you know, every buyer wants to buy as cheap as possible. and if there is a big price that might have, you know,
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that would have to be thought basis. so on the, on the washer export bases. and then there are still older, logistical costs would be based per china, india. any other place in this? yeah, i mean there is simply a very key intended by any, any. ready kind of, if this reference price is there, then they will try to get this close to whether they may perhaps be a 1 dollar dollar 5 dollar premium in me listed to weighs individual players. that's not video relevance. the important thing is whether it's still going to turn it on and especially on, on wednesday, president putin threatened to cut off energy supplies completely to, to europe. what happens if he dollars? yes, the question is, can he short term? yes, of course. sure. you can do this for a week or they can rest and with it. can you do it in the long term?
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and speaking of months, one months, 2 months we most, i would say no. i think it's important to understand the contributions of gas and oil to the russian budget. the oil contribution is about 4 times bigger than the got confusion. so that's why they could play the golf club in europe. but they can, in my opinion, not they, they talk on it persistent basis that they can make problems in the short term. that's very few. david, just really good to talk to you on counting the cost me. thanks. d david, back that in quito in ecuador. now europe has accused rusher of using energy as a weapon against those supporting ukraine. the kremlin blames western sanctions for pipeline shutdowns. moscow has already stopped sending gas to what it calls unfriendly european nations, because they refuse to pay in roubles, europe's leaders and are bracing for the risk of a rush of gas, cut off and scrambling to find ways to cut demand. they've rapidly filled their gas storage facilities and countries,
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stores have exceeded the 80 percent target. that was set to be reached by october, some european nations like germany. i've also sold alternative supplies like liquefied natural gas from the u. s. and cutoff. but that's still a work in progress, norway, europe, 2nd biggest gas supply behind russia is raising production to help the e u. and its reliance on russian fossil fuels by 2027. algeria is also among the countries looking to increase supplies to european nations like italy and spain. european nations of voluntarily reducing their gas consumption by 15 percent in an attempt to get through winter. and they're reactivating co or nuclear plants to fill the energy gap, while others are turning to electricity imports. renewables at hydro power will discuss all of this rejoined by simone, talia. busy petra simone is a senior fellow at the brutal think tank. a researcher on the use energy and
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climate policy. he joins us now from brussel simone. good tatty with us now to why his end is the rising cost of energy down. not just the war in ukraine, but the crazy way in which the energy markets operate, the marginal pricing system for electricity in which we heard earlier in the program, the highest priced bid sets the overall price, and speculators driving up the price of gas on the t t f. is it fair to say that this is as much a crisis of badly designed and obsolete institutions that enrich a tiny few at the expense of everyone else? but it is about the war? well, as a matter of fact, the, the european electricity market, the design that you described as a function very well for a long period of time. but the situation we are in which he's a war and the weapons ation of energy that has been done by russia. we
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make the current market setting feet for the emergency we are in. so these are market that functions pretty well in peacetime, but we are not in time right now. and this is the reason why the european commission is proposing not to overturn these market design in a rush because these a complex set of rules data is also very important to provide the investment, the certainty, and the foster investments in renewables. namely in the coming years, but adopting emergency measures that might take out part of those extra profits that have been done by the generators of electricity with renewables,
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no cleric cetera. in order to use those resources for lowering the energy b as of energy of energy companies of companies, families across europe. so this is the kind of emergency measures the commission proposed to do without the rafting, these electricity market design right now, because it will take time to think that and that will be done most likely next year . europe's l. n g in ports of increased. how long though cut it rely on shipments. i mean, some countries don't have the infrastructure even to take on board l n g, that's the shipped to europe. who are the winners benefiting from this, this current energy crisis, other than those, as you said, who are earning huge profits right now. it is create a clear that the, the rio extra profits. now then in the producing country. so whoever is
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producing gas and exporting it to europe either be a pipeline or l n g is now making a lot of money. and this is why we start to see also conversations. for example, we recently seen an interview by den or regional prime minister saying we are aware of the difficult situation right of europe and the betty i gas price we, we are open to discuss the price caps in order to lower our own, got supplied to europe the price of our own gas supply to europe if we buy our long term contracting and such a manner. so i think there is a clear condition that some countries, the gas producers, the producers, are making a lot of money in the moment. and this certainly represents an international issue . russia also, of course, facing
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a long cold winter just how much have western sanctions against russia hurt its economy. president putin says that the sanctions have backfired. is he right or the people of russia going to feel it hobb this winter to? well, the better the reason that the moscow has been rushing in and closing north 30 in september rather than as many expected in the winter might be a sign that russia wants to anticipate and escalate before the pressure. you can try to escalate the where the europe because probably sanctions are biting. and we know very well that the sanctions that have been put on russia. we seated. ready compromise the russian economy in the me, your long term. we know that without exporting its energy to europe, russia will end up being a minor partner, you know, relationship with china,
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which will not certainly be so convenient for the russian people. and i think we are better aware of the timing damage and it's true in the short term. it's europe that was tougher and it's suffering because of the high energy prices. but europe is proving it up ability of re balancing away from russian gas. and once these done in a structural manner, it will be russia bearing the longer term cost of the war he decided to start against ukraine. really got to talk to simone many thanks. indeed for being with us. once again, simone tele appeared for them in brussels. the, the cost of living has been rising. ever since pandemic lockdown is disrupted global supply chain and caused panic. buying in the supermarkets. now, russia's invasion of ukraine is pushing the price of almost everything from energy
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to wheat, further up inflation as the a double digit territory. and many of the world's biggest economies, a level not seen in close to half a century in indonesia. for example, the price of petrol and diesel went up about 30 percent last week after the government cut subsidies. now to serious jessica washington reports from jakarta, ah, from 7 am to 7 pm central co writes through the streets of the indonesian capital, he became a motorbike taxi driver after losing his job at an exhibition center during the pandemic. he is one of millions of people battling to make ends meet after the government caught fuel subsidies. deductible. good money i make is already not enough. often. i don't eat lunch just so i can send the money on my children's need . fuel prices went up by about 30 percent, with subsidized petrol, increasing from around $0.51 to $0.67 per liter, and diesel,
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going up from $35.00 to $0.46 per liter. so in global oil and gas prices, as well as the depreciation of the local currency triple to the states, subsidy budget to $34000000000.00. anger and the government says it's reallocating some funds to social grants. $20000000.00 low income households said to receive around $10.00 a month until the end of the year. for many, it's an inadequate solution. be lp, the cache, it is like candy, totally useless. we want them to lower the price of fuel. unions and students have led protest in several cities around the country. the message is clear, many people are worried about stagnant wages and the rising cost of living. and those concerns had been exacerbated by this latest policy change. some economists are also critical of the decision where all of the sauce i at the,
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all of the consumers level hit by the increase of the fuel price. and at the same time, the minimum which in indonesia is only increased by one percent. so inflations versus the income of the ordinary citizen, indonesia is not catch up. higher fuel costs have a knock on effect. essential goods become more expensive because logistics expenses increase a worrying prospect for oddity who is already skipping meals for before the price like life was already hard. now it's even more difficult. he spends an extra dollar and a half on fuel every day. it's an expense that heat, like millions of indonesians cannot afford. joining us now from london is pull. donovan, who is chief economist at u. b. s. bank global wealth management poor could to have you with us on counting the costs. once again, we've been talking a lot on the program today about europe's energy crisis. a people really going to
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have to choose between staying warm and eating is the $375000000000.00 relief package that's been proposed. going to be enough. i think the package is going to go a long way to mitigating the costs to individuals and perhaps a little bit less of a cost to business is a concern. but there is some assistance there. of course, this is not a precise science. it depends how cold the winter is. it depends on how much people are able to cut back on energy consumption. and of course, the bigger the shock in terms of limiting gas supplies, limiting of the power generation. the bigger the reaction that you get, your people will turn down so fast, they will work from home, which is a big energy saving drive less frequently another big energy saving. so it's a very, very imprecise calculation. i'm afraid of course, inflation biting everywhere,
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but it hits hardest in the developing world. what has been the impact of inflation? the president putin says the ukranian grain exports that were done under the deal that president tuan broke, could a helping richer nations at the expense of the developing world? is he right? no, i think that's one. overly simplistic analysis to put it politely. what we've got to remember, of course, is that agriculture commodities don't have a huge impact directly on inflation in developed countries. because food in developed countries is really food. food in a developed country is nearly all labor costs and the agriculture commodities the, the price, the farm a gets, is a very small part. the issue here is that when we see rising agricultural commodity prices, that is something which hits less developed economies a lot more significantly because in a less developed economy, food is effectively
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a lot closer to the pharma. those are what bearing in mind, we've done to have a food priced problem this year because it's a long nino weather system this year. and climate change has been making the long year affect more and more destructive over time. so the effect of the drought in the west coast of the united states, the disruptions of the monsoon season in india, pockets on those are things which we're going to happen anyway. have had a significant impact on cultural commodity prices more. ukraine has made things worse, but this is going to be a high fruit price yet anyway. okay, let's, let's take in china. let's take in the us here and interest rates. a broad brush question here for you pull. are we likely to see a global recession? i know the economies in certain parts of the world are predicting recessions. others aren't bo, i think a global slowdown will happen. that is to say,
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we would expect growth to flow this year anyway, because the front pace of consumption, we had off to the global ponds that it was starting to fade with the united states . slowing down as it is, is doing. and with europe slowing down, i mean, you've got the largest and the 2nd largest economy in the world. so of course, you're going to get a global slow down. i think of recession, which, you know, there's no proper definition of what a recession is, but a recession defined as a period of significantly below trend growth. but clearly a risk. but i think it is very much a risk case on the signals that we're seeing from the united states. for example, still showing us that the consumer is prepared to support the economy and prevent us going into some kind of economic slump. china's economy is weak, china's economy is quite in sheila so you know, what happens in china doesn't necessarily have
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a huge global impact. the european economy is where we got the most. um certainty of what overall i think it's slow down rather than a very brief answer i need from you here focus. we're almost out of time how long before inflation begins to ease it's already easing in the united states in europe . it depends on the precise nature of government policies, but fairly soon, always good to talk to people many thanks indeed pulled on them there. at u. b. s global wealth management. ah, that's all show for this week. don't forget if you want to comment on anything that you've seen, you can get in touch with us. i'm at a finnegan on twitter. use the hash tag, ha seenteen, see what you do, please, or drop us a line. counting the cost of our 0 dot net is our e mail address. there's plenty more. few online has always been al jazeera dot com slash c t. c. that takes you straight to a page where you'll find individual reports, links, an entire episodes for you to catch up. but that is it for this edition of counting
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the cost. i'm adrian finnegan for the whole team. thanks for being with us. the news on al jazeera is next in ecuador, ingenious developments in the battle against illegal deforestation. these are basically old cell phones. when people send to us, we would love increase. they listen to the forest, and we can forget anything. welcome like chainsaws or gunshots. and in australia, indigenous practices are being used to pipe pi would pyar if they make a fire, like if the lake allow fire break, the by the time that we try get here and just stop. yeah. innovation and tradition . i try on al jazeera we understand the different americans have culture across the world. so no matter how you take it out, you 0. we're bringing the news and current affairs cut meta to you countess


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