tv World Business Report BBC News May 11, 2022 5:30am-6:01am BST
this is bbc news with the latest business headlines for viewers in the uk and around the world. tackling inflation. us president biden says cooling prices is his top priority. can africa replace russia as a supplier of rare metals needed for electric cars and other high—tech products? we go live to cape town for a major mining conference there. the end of a beautiful friendship. fifa and games maker ea part ways as they can't agree on licensing fees.
a possible reprieve on tariffs. united states presidentjoe biden says his administration could drop the trump—era tariffs on china. that comment from mr biden comes against the backdrop of surging inflation in the us. in remarks at the white house on tuesday, mr biden also blamed the rising cost of living on pandemic disruptions and the war in ukraine. our north america business correspondent michelle fleury has more. the latest inflation reading is due out this wednesday, economists predict it will show rising prices remain entrenched, for americans filling up this tank this will come as no surprise, the average price of a gallon of petrol at an all—time high, rising inflation notjust an economic challenge, also a political one. president popularity has taken a hit over
this issue told americans felt their pain though he blamed the war in ukraine and the pandemic for soaring prices. i war in ukraine and the pandemic for soaring prices.— for soaring prices. i want every american - for soaring prices. i want every american to - for soaring prices. i want every american to knowl for soaring prices. i want. every american to know and for soaring prices. i want - every american to know and i am taking _ every american to know and i am taking inflation very seriously.— taking inflation very seriousl . . . , seriously. he criticised republican _ seriously. he criticised republican policy, - seriously. he criticised i republican policy, saying seriously. he criticised - republican policy, saying it would make the situation worse. republicans disagreed.- republicans disagreed. pointing the fin . er republicans disagreed. pointing the finger at _ republicans disagreed. pointing the finger at everyone _ republicans disagreed. pointing the finger at everyone house - the finger at everyone house other— the finger at everyone house other than himself, the american people are sick and tired~ — american people are sick and tired. ., american people are sick and tired. . ., ., , tired. taming inflation is the 'ob tired. taming inflation is the “0b of tired. taming inflation is the job of policy _ tired. taming inflation is the job of policy makers - tired. taming inflation is the job of policy makers inside l job of policy makers inside here, the american central bank, one way the president could help with rising prices is to remove tariffs on chinese imports under don —— on the —— donald trump. imports under don -- on the -- donald trump.— donald trump. will you drop donald trump. will you drop donald trump _ donald trump. will you drop donald trump poss - donald trump. will you drop donald trump poss mac - donald trump. will you drop . donald trump poss mac tariffs? we are discussing that right now. no decision made on it.
pocketbook issues front of mind for many americans, with congressional mid—term elections only a few months away democrats worried they will use votes over inflation which economists predict will remain significantly higher, for a while. bearin bear in mind. consumer prices surged by 8.5% — the largest annual gain since december 1981 last month following a double—digit rise in energy prices. joining me now is pete earle, economist and research fellow at american institute for economic research — pete, what's your take on whether inflation is likely to ease today? last month we saw inflation as measured by cpi up eight point 5%, year—on—year with a 1.2 increase from february to march, expectation is that many of the initial price shocks that came from the russian invasion have settled back, we
will steal see year—on—year inflation at eight or 8.1%. what do you think the two—year outlook would be and will remain the greatest challenge for the us? ﬁx, remain the greatest challenge for the us?— for the us? a lot of what happens _ for the us? a lot of what happens over _ for the us? a lot of what happens over the - for the us? a lot of what happens over the next i for the us? a lot of what happens over the next 12 for the us? a lot of what - happens over the next 12 months as far as inflation goes will depend on what happens in two places, ukraine and china. if the war in ukraine grinds into a persistent conflict energy prices might be elevated for some time, china keeps the lockdowns in place, there are already showing signs of bringing back supply chain bottlenecks, both of those will translate to persistently hire prices. translate to persistently hire rices. ,, translate to persistently hire rices. , ., ~' prices. do you think the federal _ prices. do you think the federal reserve - prices. do you think the federal reserve is - prices. do you think the federal reserve is now. prices. do you think the - federal reserve is now doing enough to contain inflation, or as some people say to its going to fast? ., ~' to fast? no, i think the federal— to fast? no, i think the federal reserve - to fast? no, i think the federal reserve has i to fast? no, |thinkthe| federal reserve has got to fast? no, |thinkthe i federal reserve has got a to fast? no, |thinkthe - federal reserve has got a late start and trying to catch up, what they are trying to do is raise interest rates both
quickly enough and to levels high enough, so they slow and eventually stop the inflationary updraught, they also want to do so in a way which doesn't bring on a recession, a difficult balance to strike. historically most rate increase cycles ended in an economic slowdown, right now if you look at equity markets around the world, financial market participants and investors don't believe the soft landing is likely. we will be watching _ soft landing is likely. we will be watching that _ soft landing is likely. we will be watching that very - soft landing is likely. we will| be watching that very closely, an interesting line from the us today chinese sanctions might be dropped, these were put in place by donald trump. do you think that's likely, what effect would that have? well, an hint effect would that have? well, anything undertaken - effect would that have? well, anything undertaken that - anything undertaken that removes barriers to trade, whether or high taxes, or barriers of those sorts, will help. but the fact is, both the former administration and the present one, have a vested interest in protecting the
agricultural sector, that's what a lot of the tariffs sought to do, protect american agricultural interest. i think they may do it, if they evaluate the risk of inflation has higher than, say, what they lose from not protecting the agricultural complex, but i don't think it's going to be an easy decision for them to make, there will be a lot of balance in the administration mind to do so. ., ~ in the administration mind to do so. . ~ ,, in the administration mind to do so. . ~ i. in the administration mind to doso. . ~ . ., do so. thank you so much for takin: do so. thank you so much for taking us _ do so. thank you so much for taking us through _ do so. thank you so much for taking us through all - do so. thank you so much for taking us through all of - do so. thank you so much for taking us through all of that l taking us through all of that information.— information. thank you for havinu information. thank you for having me- _ it's being called the iberian exception: spain and portugal have been allowed by the eu to manage their own energy costs and impose a price cap of a0 euros per megawatt—hour. the reference price for gas in the wholesale market is e90. the european council approved the move as both nations produce a high level of renewable energy and have "very low" dependency the rest of the eu. it means that both countries will now be able to help
businesses avoid the impact of volatile gas prices. it comes as the european commission is looking to increase the eu's renewable energy target for 2030 as part of plans due next week. joining me now is henry edwardes—evans, associate editorial director, energy transition, s&p global commodity insights. henry, why are spain and portugal being given this exemption? it is rare, it is almost unheard of, for the market, quite worrying. it's because the gas price has risen so steeply, and the marginal unit in the setting of the power price, is often the gas unit, so that pulls up the power price alarmingly. and that's what's happened here. limiting the gas price and power generation to 50 euros a minute
what —— megawatt—hour, half the cost of the gas being used in power generation, and will reduce power prices, likewise. it's a political move to ease the pressure on consumers in iberia, in theirfinal bills and we can see other member states throughout europe looking at these ideas, the problem is, european power markets are very closely interlinked so the european commission is only taking this step very cautiously on the details are still to come out. because those markets are coupled, and if you export powerfrom spain, into france, then you have to work out who it is actually going to pay for this is in fact a pretty substantial subsidy on the gas price will. substantial subsidy on the gas rice will. , ,., , ., price will. everybody would like some _ price will. everybody would like some help _ price will. everybody would like some help with - price will. everybody would like some help with their . price will. everybody would i like some help with their bills and whatever country they are in is this also a reward for the renewable energy work,
these countries have been undertaken?— these countries have been undertaken? well, it's trying to recognise _ undertaken? well, it's trying to recognise the _ undertaken? well, it's trying to recognise the fact - undertaken? well, it's trying to recognise the fact the - undertaken? well, it's trying i to recognise the fact the share of renewables is growing quite significant in europe, so let's try to get away price setting power of fossil fuels because, in future, fossil fuels will have a declining impact on the cost of electricity generation. we have to say that at the moment that is still a very significant element, and marginal price power markets and its an important element because what it does is that it sets the price for everybody in the market, and it allows other technologies that are cheaper to grow faster, so if you interfere in that process, then the risk is that actually you call the market for renewables, you don't actually accelerated because they are not getting so much for their output and the incentive to best in wind and solar is therefore reduced. i
guess the war in ukraine will probably be pushing demand for renewables at a different pace as well. henry, thank you so much forjoining us on bbc news. let's get some of the day's other news: ukraine, which has remained a major route for russian gas to europe even after the invasion, said on tuesday it would suspend use of a transit point for some russian gas headed to europe, blaming moscow for the move. it said it will redirect the gas from that transit point, which is in an area occupied by russian forces, to another in a ukraine—controlled area. in china, inflation figures for the month of april were released just about an hour ago. the consumer price indexjumped up 2.1% from a year earlier, higher than march figure of1.5%, but still not as rampant as the rest of the world. now to the market in metals, where the war in ukraine and sanctions on russia has sent prices across the board soaring. russia is one of the world's top producers of rare metals
like nickel, platinum and palladium — essential materials for new green technologies like batteries for electric cars. so for new sources of these raw materials, countries are now looking to resource rich africa to fill the gap. south africa is currently hosting the continent's biggest mining investment summit in cape town — with high level delegations from the us and global industry heavy weights looking to secure supplies for the future. but, historically, there have been problems for the sector in some african nations with concerns of human rights abuses, corruption and pollution. i'm joined now byjonathan molyneux from mining sustainability consultants erm. jonathan is at that conference in cape town. jonathan, can africa replace russia as a supply of rare metals needed for the electric cars? ~ ., ., ., cars? well, we are well aware ofthe cars? well, we are well aware of the sanctions _
cars? well, we are well aware of the sanctions on _ cars? well, we are well aware of the sanctions on russia - cars? well, we are well aware of the sanctions on russia has certainly historically been a tremendous source of critical metals. but i think there is a border backdrop here which is, the international energy agency, just very recently highlighted the mismatch between the demand and supply for critical metals they will try to support the global transition to a low carbon economy and all the green metals that will be required for building out the new, urban environments and societies in southeast asia, so it's important to understand or separate the impacts of the russia and ukraine situation from the more macro global trend towards, this demand and supply graph, and i think this is where africa is a tremendous opportunity to play. ——. down
here at this conference i have been attending this for ten years now, and we are seeing new generation of senior leaders and ceos taking to the stage, and, a tremendous vase about the opportunity that africa has, to generate, play a major role in supplying those new critical materials. haifa new critical materials. how difficult will _ new critical materials. how difficult will it _ new critical materials. how difficult will it be _ new critical materials. how difficult will it be to - new critical materials. how difficult will it be to turn i difficult will it be to turn that vase into action? it’s that vase into action? it's absolutely _ that vase into action? it's absolutely always - that vase into action? it�*s absolutely always the challenge, isn't it, and the industry has a challenging history. i think the thing we have noticed most here, is that the conversation has really changed on the platform, the industry heavyweights as you called them, the mining majors, the leaders of the industry, their ceos, their whole focus has shifted in the last probably two or three years,
and we are really hearing loud and we are really hearing loud and clear this year around their understanding, that the markets are looking for these new materials to be produced in new materials to be produced in new and sustainable ways. investors who are here at the conference, are looking for places to shift their capital to, but they are very keen to play a responsible role in supporting responsible transitions, they want to see their money being put into new critical material projects, that are being developed against a future mind blueprint, if you like. thank ou so blueprint, if you like. thank you so much _ blueprint, if you like. thank you so much for— blueprint, if you like. thank you so much forjoining - blueprint, if you like. thank you so much forjoining us. | stay with us on bbc news, still to come: game over — why one of the most profitable computer franchise
deals in history is about to come to an end. the pope was shot, the pope will live — that's the essence of the appalling news from rome this afternoon, that, as an italian television commentator put it, terrorism had come to the vatican. the man they called the butcher of lyon, klaus barbie, went on trial today in the french town where he was the gestapo chief in the second world war. winnie mandela never looked like a woman just sentencedl to six years injail. the judge told mrs mandela there was no indication - she felt even - the slightest remorse. the chinese government has called for an all—out effort to help the victims of a powerful earthquake — the worst to hit the country for 30 years. the computer deep blue has tonight triumphed over the world chess champion, garry kasparov. it is the first time a machine has defeated a reigning world champion in a classical chess match. america's first legal same—sex marriages have been taking i place in massachusetts. god bless america! cheering
this is bbc world news — the latest headlines: the us house of representatives votes overwhelmingly in favour of providing an additional $40 billion in aid for ukraine. tens of thousands of military personnel have been deployed in the sri lankan capital colombo as the government struggles to contain protests against the spiralling cost of living. and it's full—time between the world football body fifa and electronic arts. the video games maker has announced that fifa 23 will be the last in its long running series of fifa—branded football games. ea has been producing the game for almost three decades, but says the license cost was one of the reasons why it ditched the partnership with fifa but ea will still be producing football games and future editions will come under a new banner.
joining me now is piers harding—rolls, research director ampere analysis. piers — is this a purely financial decisoion? i don't think it is. when you look at what both parties, ea and fifa wanted to get out of the deal, they have clearly diverged over the past few years, fifa was looking for more revenue. but also wanted to offer less exclusivity under the current deal. because its aim really is to scale its licensing business. if you have exclusive relationships, it is harder to do that. there is a lot of competition coming into the football space so i think it was thinking about its opportunities to do deals with other companies coming into the space. from the point of view of ea, it would have weighed the ongoing licensing costs,
obviously, but it also wanted to innovate within the game. i was thinking about introducing new monetisation modes, for example, such as non—refundable tokens and thinking about additional content that it wants to show within the game. and possibly even things like user generated content. all these areas that are really hot within gaming at the moment. all these new areas, are they too much to handle in what was an incredibly successful franchise and now we will see ea sports and fifa taking each other on. who do you think will win out as to is an interesting question. i think ea sports will transition to the new brand. the core brand will stay the same but it will be given the same but it will be given the freedom to innovate more generally within that
experience.- generally within that experience. generally within that exerience. �* ., ,., experience. and from the point of view of _ experience. and from the point of view of fifa, _ experience. and from the point of view of fifa, it _ experience. and from the point of view of fifa, it is _ experience. and from the point of view of fifa, it is sporting i of view of fifa, it is sporting a number of different games coming into the market at the moment and talking up the idea of a specific simulation game which competes head on with the franchise of ea. it's not a given. not a given out perform strongly in the market but i think ea is well—positioned. it has a relatively long ramp for it to be able to get the brand across to the consumer. thank ou so across to the consumer. thank you so much — across to the consumer. thank you so much for— across to the consumer. thank you so much for your - across to the consumer. thank you so much for your analysis. | now, many people harbour the thought of starting a business at the back of their minds, but never get round to it — sometimes it takes a big life event, to force them to take the risk. well, that's exactly what happened to our next guest, who founded an eye protection start—up called ocushield, here's his story. after nearly dying after a
jumped into the sea, slightly swimming and it was choppy waters. i drowned. while drowning, i had 75% water in my lungs. fortunately, someone nearby came on a jet ski and took me to the beach and a doctor and nurse administered cpr, fortunately. after being in a coma for a week i woke up in a coma for a week i woke up in the first thing i thought about was family and friends. as well as that, it was my business. i realised how much the business was on my mind and i had to execute and it made me realise and commit to the business that i had to see it through.
this device may be familiar to many of you. it may have accompanied you during workouts or during your commute. but it's now the end of the road for apple's ipod. the company announced on tuesday that its discontinuing the ipod touch , the last model produced by apple. the first ipod was launched in 2001 and the device has been widely praised for revolutionising how people listen to music. joining me now is jane foley, head of fx strategy, rabobank. jane — do you remember yourfirst ipod? ido,i i do, i don't have to remember it because i have it right here! this is probably about 20 years old and like many people, the phone really has been
taking over and why carry one of these around when really the phone does it all? it does not come as a surprise that they are now stopping this. that come as a surprise that they are now stopping this. at the time it was — are now stopping this. at the time it was incredible. - are now stopping this. at the time it was incredible. it - are now stopping this. at the time it was incredible. it was| time it was incredible. it was a style accessory and celebrities flocked to be seen with that, john meier, u2, oprah winfrey and bmw built a system where you could have it in your cars and it became part of the furniture? it in your cars and it became part of the furniture?— of the furniture? it really did and it was — of the furniture? it really did and it was so _ of the furniture? it really did and it was so important - of the furniture? it really did and it was so important for l and it was so important for apple, the business. if you look at the 1980s and 1990s, apple had a string of failures of devices that no—one really wanted. this is really important for them men establish their brand and establish their brand and establish them as a fashion brand as well. it was not the first mp3 either but it was the first mp3 either but it was the first one that could store about 1000 songs back on the day and that was an awful lot! it was a big revolution for their business as well. and the
di . ital their business as well. and the digital music _ their business as well. and the digital music market. - their business as well. and the digital music market. it - their business as well. and the digital music market. it was i digital music market. it was incredible. we had itunes taking out filesharing and is consolidated the digital music application. i want to share one thing with you, i had someone stand in that apple was not concerned about cannibalising its own products in terms of it demise.- in terms of it demise. that's ri . ht in terms of it demise. that's right and _ in terms of it demise. that's right and that's _ in terms of it demise. that's right and that's because - in terms of it demise. that's i right and that's because anyone with a smart phone now know they don't have to carry around a portable music device because your phone does it all. this is why no—one is particularly surprised at this news. i would say some parents are disappointed because the new ipods, they look more like smart phones and you can do video calling on them as well as well is e—mailing so for a child who you don't want to have the full capacity of a phone, this was a alternative and a cheaper one as well but for most people, this is perhaps an inevitability that
this little device has been taken over.— this little device has been taken over. ., ~ . taken over. thank you so much forjoining _ taken over. thank you so much forjoining us- _ taken over. thank you so much forjoining us. it _ taken over. thank you so much forjoining us. it is _ taken over. thank you so much forjoining us. it is breakfast i forjoining us. it is breakfast next. thank you forjoining us me. hello there. tuesday was a day of sunshine and showers — most of those showers were across scotland and northern ireland. and there was quite a lot of rainfall across parts of western scotland at times — some of these showers quite heavy, even some rumbles of thunder, too. for the next few days, it's going to remain breezy, rather unsettled, low pressure nearby, and we'll see showers or even longer spells of rain. now for wednesday, this feature could bring some significant rainfall to parts of england and wales throughout the day. now some of that rain really will be quite heavy across parts of wales, south—west england through wednesday morning. and then, that rain will push in towards the midlands, parts of eastern england into the afternoon — i think the northern extent of it being around the greater manchester area, not further north than that. but as this rain band begins to move south—eastwards into east anglia in the southeast, it will begin to fragment.
again another windy day to come, particularly across southern britain with that rain band. quite gusty, as well, across the northwest of scotland, where we'll see sunshine and showers. and temperatures will range from around 14—17 celsius. pollen levels on wednesday, again, will be rather high, but maybe not quite as high across england and wales as we'll have that rain band. now, that rain will clear away from the south—east as we move through wednesday night, then skies will clear. winds will turn a little bit lighter, as well, but there'll be further showers across the north and the west of scotland in particular. now, with the clearer skies, a slightly cooler air mass — it'll be a fresher night to come for wednesday night, with temperatures down into single figures for most. the pressure chart for thursday, then, shows more weatherfronts affecting northern parts of the uk — so again, it'll be quite breezy and showery here, a little bit drierfurther south. so, best of the sunshine for england and wales throughout thursday. after that fairly fresh start, temperatures will begin to rise. more cloud, though, for northern england, northern ireland, and scotland — there's the north—west of scotland, which will see most of the showers and also the strongest of the winds. after that cool start, temperatures will reach highs of 14—18 or 19 celsius across the south. for friday, again, weather fronts bring more showers and blustery
conditions across the north of the uk, but as we head into the weekend, this area of high pressure begins to build in. it turns sunnier and warmer, but we could see potential of some thundery showers across southern areas, especially on sunday. so, those temperatures will be building as we head on into the weekend, as that area of high pressure starts to establish itself. and there'll be increasing amounts of sunshine, but also some heavy showers in the south.
good morning, welcome to breakfast with dan walker and sally nugent. our headlines today. a stark warning that 1.5 million households will struggle to pay energy and food bills, as the prime minister faces pressure to do more to ease the cost of living. a mixed reaction to the queen's speech. there's a boost for struggling high streets, and the price cap on household energy bills will be kept in place for longer — but did it go far enough to address those soaring prices? bowel—cancer campaigner deborahjames speaks to breakfast about the time she has left and her hopes for her family. i know that my kids are going to be... ..more than looked after and surrounded by love.