Skip to main content

tv   World Business Report  BBC News  May 12, 2022 5:30am-6:01am BST

5:30 am
this is bbc news with the latest business headlines for viewers in the uk and around the world: border disorder — fears of a uk—eu trade war, as tensions grow over the post—brexit deal on northern ireland. negative outlook — british consumers are the gloomiest in ten years, as inflation soars and recession looms. bear market blues — the sell—off continues, with the dow down for the fifth session in a row and a further hammering for tech stocks and cryptos. plus, streaming in — disney signs up millions of new customers to its online video platforms, as rival netflix loses subscribers.
5:31 am
could the uk be heading for a trade war with the european union? that's certainly the fear of some in the business world, as tensions grow over the post—brexit deal on northern ireland. uk foreign secretary liz truss is holding talks with the vice—president of the european commission in the next few hours, as her government threatens to tear up large parts of the agreement. that could trigger legal action or trade sanctions from the eu as our deputy political editor vicki young reports. for some businesses in northern ireland, trading opportunities have grown, but the rules can cause disruption too. this garden centre in belfast is dealing with extra paperwork and supply issues.
5:32 am
it has slowed our deliveries down. we would order lots of stuff from england, from holland. our frustration is that we are a weather—dependent business. as soon as the weather gets good, we need to get ordering. we would usually order on a monday for a friday delivery. that has completely changed. we are now ordering two to three weeks ahead and it is very hard to do that considering the uncertainty of the weather. and this is why the extra checks are happening. when we left the eu it was agreed that goods arriving in northern ireland from the rest of the uk would be monitored to make sure they met eu standards. that's because northern ireland shares a land border with eu member ireland, and brussels doesn't want unchecked products ending up in its single market. an open border is seen as an essential part of the peace process. last week's northern ireland assembly elections have upped the pressure again. sinn fein won. they say the brexit arrangements must stay, but they can't govern unless unionists share power, which they're refusing to do unless the
5:33 am
protocol is scrapped. and uk ministers are in washington explaining why changes are essential. this is the bundle of documents that has to be filled out by companies moving goods within our own country. we still want a negotiated solution, but if your negotiating partner is at the point of saying, "there is nothing to talk about," then we have a moral obligation to take action to protect our citizens in northern ireland. the uk government wants smoother trade arrangements, and is threatening to take matters into its own hands by scrapping parts of the brexit treaty it signed up to, which could mean trouble ahead. unilateral action will make all of this worse, because what it will do is it will result in legal action. it will result in potentially countermeasures. and nobody wants to see friction between the european union and the uk right now. but senior cabinet ministers here think this situation has
5:34 am
dragged on forfar too long. they're even considering the dramatic step of drawing up a new law which would allow them to ignore parts of the brexit treaty that boris johnson signed. that could come as soon as next week, and could lead to a trade war. many fear this is sowing the seeds for a wider confrontation with the eu that could affect businesses across the uk. vicki young, bbc news, westminster. roger pollen is head of the federation of small businesses in northern ireland, he joins us from county down in northern ireland. even the us president is involved said to be preparing to appoint a special envoy to protect the good friday agreement. do your members believe a re—negotiation is possible or likely at this stage? it is interesting that you mention the good friday
5:35 am
agreement. it set out to take minorities. that is what was important about it. it is not good enough that if it suits the majority, it is good enough and you get on with it. the protocol is working with a lot of businesses but there is a significant minority badly affect bite and we need to focus on that minority to remove the problems they are experiencing and then move on. both britain and the eu have played down hopes of progress at today's meeting. if the talks are unsuccessful, legislation to scrap the protocol could be presented as early as next week. how prepared are your members for the disruption that could cause? we have been a period of disruption for the best part of two years so business deals with what it has to deal with and the problem is we have not got clarity, the rules have been changing. a lot of the
5:36 am
effects of the protocol are not yet biting so we are constantly in a moving, changing field. if we see some further disruption through westminster and brussel, it is deeply unwelcome. we want to settle agreement between the two parties but we are a long way away from it. we parties but we are a long way away from it.— away from it. we have been havin: away from it. we have been having the _ away from it. we have been having the same _ away from it. we have been i having the same conversation years on exactly that, it seems. jacob rees—mogg, brexit opportunities minister said that tit for tat economics would damage british consumers at a time of rising prices. how much pressure is the cost of living crisis putting on a trade solution at the border? there is a huge amount of pressure coming into consumer and businesses. you have international, regional, national. we're trying to see how you can the problems. at the moment the protocol is
5:37 am
holding up the operations for the northern ireland assembly so we cannot deal with our regional issues. we need to try as much of the friction out of this is possible for things to run smoothly. we are in a difficult period but if the protocol told us anything, if we fail, the risk will run into the formation of the executive and the programme for government which is effectively the business plan for northern ireland and if that gets held up ireland and if that gets held up because of issues around protocol, we look to plan to fail for that as well.- fail for that as well. thank ou fail for that as well. thank you very _ fail for that as well. thank you very much _ fail for that as well. thank you very much for - fail for that as well. thank you very much for your. fail for that as well. thank i you very much for your time. let's stay with the uk economy because a survey of consumer confidence has found people in britain are the gloomiest about their personal finances in ten years. the survey by pollsters yougov and the centre for economics and business research comes after warnings from the bank of england of double digit inflation and calls grow
5:38 am
for more financial help from the government. in the next couple of hours we will get official uk growth figures for the first three months of the year — they are expected to show a sharp slowdown. kallum pickering is senior economist at berenberg private bank. there's a danger of a negative chain reaction of ever—decreasing demand leading to a long—term depression — technically — can a governme stop a recession? i think that dramatically overstates the situation the uk is facing. it is a supply side problem. due to china zero covered policy, the war in ukraine etc. the recovery from covid. we are seeing consumers reacting to high prices. the
5:39 am
first quarter showed decent growth. what we need to find out is what happened from march onwards after the war. i out is what happened from march onwards after the war.— onwards after the war. i would counter that. _ onwards after the war. i would counter that. it _ onwards after the war. i would counter that. it is _ onwards after the war. i would counter that. it is certainly - counter that. it is certainly filtering into that demand side. people are cutting back. we saw it with netflix subscriptions, jim membership, the amount of holidays and money people spend on holidays. my money people spend on holidays. my question to you is, what do we do about it? the central bank is doing what it can buy raising rates — what does the government need to do and when? lots of anecdotal evidence that things are very bad but let's see what the data says. there is a difference between the two. the second quarter of the f will be very, very difficult. we may even shrink slightly but fundamentals in the economy are actually pretty good. the risk is, if the government acts to demand by either cutting taxes
5:40 am
or boosting payments, you will worsen the economic issues. i5 worsen the economic issues. is there a danger in waiting to see what the data does that you wait too long and miss the opportunity to do anything about it and you are acting after the horse has bolted, as the saying goes? we have seen this across the world as criticism from central banks that they failed to understand the nature of inflation. they said it was transitory, it turns out it was not and many countries around the world are suffering with inflation and the response has been delayed. do we not need to pre—empt? we have rising prices, big rises in energy prices, we know what is likely to happen, should not we be doing something right now about it? we we be doing something right now about it? ~ ., ~ ., ., ., about it? we also know that for eiuht about it? we also know that for eight months — about it? we also know that for eight months of _ about it? we also know that for eight months of rising - about it? we also know that for eight months of rising prices, i eight months of rising prices, the economy outperformed expectations and that is why the uk had the fastest
5:41 am
recovery. it is important not to act before we have a good idea aboutjust how the economy is doing. it is quite possible that the confidence that are being weak, what we're seeing is economic activity holding up much better than the data suggests. there are often contradictions. if we are to add demand will we are struggling with supply problems, that will produce more inflation and we may find yourself with the bank of england forcing a recession upon the economy in order to cure the inflation. we have a problem with weak supply, we should not add to demand and potentially worsen what is already a very severe inflation problem until at least we have some data to see where we can actually give some help.- actually give some help. really interesting _ actually give some help. really interesting and _ actually give some help. really interesting and thank _ actually give some help. really interesting and thank you - actually give some help. really interesting and thank you very | interesting and thank you very much for your time. uk stock markets closed sharply lower on wednesday —
5:42 am
marking the fifth straight session of losses for the dowjones industrial average. the renewed sell—off came as official inflation data showed a slight easing of price rises in the us. annual inflation hit 8.3% in april, down from 8.5% in march. but that still convinced investors the federal reserve will continue raising interest rates aggressively. that has hit demand for risky assets — tech shares and cryptocurrencies in particular victoria scholar is head of investment at the online platform interactive investor. bitcoin is down to 16 month lows. does this dispel the idea that crypto is a defensive play against inflation? firstly, it serves as a reminder that this is a very volatile asset class and not for the fainthearted investors stop while they can make a strong games, they can also
5:43 am
suffer from strong games, they can also sufferfrom heavy losses. strong games, they can also suffer from heavy losses. it strong games, they can also sufferfrom heavy losses. it is interesting because one of the main arguments for crypto is is that it could be an inflation edge, like gold but that has proven not to be the case. they have become highly correlated to some of the riskier assets within the equity markets, the likes of the tech stocks. when we see the nasdaq sell—off sharply, we see crypto is sell—off as well. they are down 2% from november highs with losses exhilarating in recent sessions. —— 60%. i5 losses exhilarating in recent sessions. -- 60%.— losses exhilarating in recent sessions. -- 60%. is there a dancer sessions. -- 60%. is there a danger that _ sessions. -- 60%. is there a danger that terminal - sessions. -- 60%. is there a danger that terminal in - sessions. -- 60%. is there a danger that terminal in the l danger that terminal in the markets will amplify economic problems than simply reflect them? , ., . them? yes, i think the fed and other central— them? yes, i think the fed and other central banks _ them? yes, i think the fed and other central banks are - them? yes, i think the fed and other central banks are looking j other central banks are looking to markets and financial conditions are rocky at the moment but central banks need
5:44 am
to be very careful to stick to their mandate and control inflation and growth, rather than making the decision based on what is going on within the market. clearly the market is a reflection of future values of stocks and company values going forward and so, if we were to see a major sell—off, that could have implications because think of everyone who owns stocks in the stock market, they will become less wealthy as a result, we will have less disposable income. businesses will be struggling, that could lead to job cuts and other cutbacks. what happens in the stock market has implications for the wider economy.- for the wider economy. thank ou ve for the wider economy. thank you very much- _ stay with us on bbc news, still to come: a glimmer of hope. five years on from hurricane maria, can renewable energy restore power to puerto rico?
5:45 am
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 legall same—sex marriages have been taking - place in massachusetts. god bless america! cheering
5:46 am
this is bbc news. the latest headlines — ukrainian forces launch counter attacks in the east — forcing russian troops out of villages near the country's second biggest city kharkiv. republicans in the us senate have blocked a bill that would protect access to abortion across the country. let's turn to the world's biggest entertainment company — because shares in walt disney have been on the rise after some better—than expected numbers. disney managed to sign up almost eight million new subscribers to its disney plus streaming service in the first three months of the year. that was a lot more than investors were expecting, particularly after rival netflix revealed it had lost subscribers over the same period — and forecast more people would ditch the service in the coming months.
5:47 am
disney+ added 7.9 million subscribers in the last three months, beating wall street expectations for its video streaming operation. now, disney has 205 million paid subscribers across all of its services globally, that includes disney+, espn plus and hulu. it shows how quickly it is closing in on rival netflix, which still leads with 21 million subscribers, but disappointed investors last month when it announced its numbers were actually falling. the mouse house may have what it takes to come out on top in the extremely competitive streaming market, and more customers are showing up to disney's amusement parks too. that segment of its business took in $7 billion of revenue in three months. in any case, disney's management seems pleased with the company's performance with the ceo declaring we are in a league of our own. hitha herzog is a new york
5:48 am
based analyst and author. good to see you, thank you for joining us. sounds good, but at what cost they got these 8 million new subscribers? they are giving up something like a billion in revenuejust to get the content on this platform. how sustainable is that? thea;r how sustainable is that? they certainly are, _ how sustainable is that? they certainly are, in _ how sustainable is that? they certainly are, in fact - how sustainable is that? they certainly are, in fact netflix i certainly are, in fact netflix is actually spending less in terms of trying to get their subscribers, then disney is at this point. but it is proving to be very successful. they are going into about 53 to sa different markets worldwide. they are adding about 500 shows, local shows, that basically means shows with specific countries. south africa, india, latin america, so they are really pushing for this streaming service to take off. as your reporter said, 205 million subscribers now. they added about 7.9 million. but they did say, the ceo of
5:49 am
disney, did say that they are on track for that guidance that they had put on the 2024, which is around 235 to 240 million subscribers.— is around 235 to 240 million subscribers. yeah, i mean, it is easy to _ subscribers. yeah, i mean, it is easy to make _ subscribers. yeah, i mean, it is easy to make these - is easy to make these comparisons and the headlines will make all these comparisons between disney plus and netflix, but it is important to say that netflix is still absolutely dominant in this space. it has over 200 million subscribers. is there any chance that disney really can complete in this market? it is the tale of— complete in this market? it is the tale of two _ complete in this market? it is the tale of two big _ complete in this market? it 3 the tale of two big juggernauts streaming services. when you listen to the earnings, you certainly hear the ceo and the cfo hyping up this company. they did talk about the difference of the fact that when you think of disney, you think of children's programming. now, i have twin toddlers, i think yeah, disney+, of course, lots of children's programming, but
5:50 am
they emphasise there is a lot of adult programming as well. for example, they noted the drop outcome kardashians, a lot of this cross shows that are in hulu as well as disney+ really carrying the torch of the company. so they emphasise that. in fact, a lot of their subscribers are adults. they are but they _ subscribers are adults. they are but they are _ subscribers are adults. they are but they are also - subscribers are adults. they i are but they are also parents. how likely is it that people who don't have kids are going to sign up to disney+?- to sign up to disney+? that's what they _ to sign up to disney+? that's what they were _ to sign up to disney+? that's what they were saying, - to sign up to disney+? that's what they were saying, they l to sign up to disney+? that's i what they were saying, they are really trying to go after that demographic of people who don't have kids to sign up for it and thatis have kids to sign up for it and that is why they are really pushing this programming that is gaining all these awards and getting a lot of buzz.— getting a lot of buzz. thank ou getting a lot of buzz. thank you very — getting a lot of buzz. thank you very much. _ the us territory of puerto rico saw its electricity grid nearly destroyed by two hurricanes and an earthquake in recent years. the us government has committed $10 billion to rebuilding it.
5:51 am
for many in puerto rico and in the green lobby, this is a golden opportunity for a new beginning in electricity and a move from fossil fuel based electricity to renewables. but fossil fuel interests aren't giving up easily. samira hussain reportes. nestled in the caribbean sea is the island of puerto rico. it gets several hours of direct sunlight a day, more than enough to meet all of its energy needs. but less than 3% of the island's power comes from renewable sources. head into the mountains, and stable access to power remains a luxury. people likejulio rodriguez and melvin suarez just live that way. they use their car battery to power the television at night, and kerosene lamps are lit for when darkness comes, mundane chores become enormous tasks. the movements may seem routine but it belies their embarrassment at what their life has become. translation:— at what their life has become. translation: , ., translation: sometimes we are ashamed to _ translation: sometimes we are ashamed to look _ translation: sometimes we are ashamed to look for _ translation: sometimes we are ashamed to look for help. - translation: sometimes we are ashamed to look for help. we - ashamed to look for help. we don't like asking so many people for help. it's
5:52 am
embarrassing.- people for help. it's embarrassin. ., ., embarrassing. two back-to-back hurricane is _ embarrassing. two back-to-back hurricane is five _ embarrassing. two back-to-back hurricane is five years _ embarrassing. two back-to-back hurricane is five years ago - hurricane is five years ago shattered the island's electricity grid, leading to the longest blackout in us history. the same destructive elements can also be the solution. then another mountain town 100 kilometres away, are town 100 kilometres away, are to rower is using the sun to bring power to the poorest communities. irate bring power to the poorest communities. ~ ., , ., communities. we have been told for so long _ communities. we have been told for so long that _ communities. we have been told for so long that puerto _ communities. we have been told for so long that puerto rico - communities. we have been told for so long that puerto rico is i for so long that puerto rico is a small— for so long that puerto rico is a small island, that we don't have — a small island, that we don't have natural resources, that we cannot — have natural resources, that we cannot exercise the right for self—determination. and what we are saying — self—determination. and what we are saying is we have plenty of naturai— are saying is we have plenty of natural resources, clean energy sources — natural resources, clean energy sources that can be used to power— sources that can be used to power puerto rico. the island is laruel power puerto rico. the island is largely powered _ power puerto rico. the island is largely powered by - power puerto rico. the island is largely powered by fossil i is largely powered by fossil fuels, oiland is largely powered by fossil fuels, oil and natural gas brought in on ships. by installing solar panels on the roofs of homes and businesses, he has shown that solar is a viable option. sure it may be cost prohibitive for most but
5:53 am
the benefits are reliable access to electricity and energy independence. case in point, this barbershop in town. four years since cassar pueblo first installed solar panels here, and the people who run the place continue to be thankful. thank god, says rolando. i recommend everyone get solar power because it is the best. the bill was 50 or 60 but now it is $5. it is stupendous. natural disasters, neglect and mismanagement have left puerto ricans with a non—functional electrical grid. last year, the transmission and distribution of electricity was privatised. residents say it has become more expensive than the power cuts have become more frequent. unsurprisingly, the country that has taken over —— company that has taken over say solar is not the answer. irate solar is not the answer. we need all — solar is not the answer. we need all forms _ solar is not the answer. we need all forms of— solar is not the answer. - need all forms of electricity and that idea of a more decentralised grid with more
5:54 am
renewable energy as part of the future here, for sure. that doesn't get away from needing a solid, robust electric system. the dire state of puerto rico's electricity supply is a drain on its people and its economy. but in some places on the island, it has actually enabled clean, communal power to take overfrom fossil clean, communal power to take over from fossil fuelled corporate interests. now what happens next will have enormous implications on puerto rico's economy and its environment. let's see how the asian markets are faring today. they have been slightly lower in fact. we are seeing that hong kong's currency is testing the floor of its us dollar trading ban for the first time since 2016. capital outflows forcing the cake to be, spurred on by covid restrictions that we have seen that. bitcoin
5:55 am
continues to fall since we have been on air, testing new lows, already at a 16 month low. thank you very much for your company. i will see very soon. hello. rain reached some of the driest southern areas of the uk on wednesday. it wasn't very much, but it was more than has fallen for quite some time. that system now out of the way, and southern areas are having a mainly dry thursday to come, whereas across northern areas close to a weather front, there'll be some more rain, particularly across parts of scotland, and especially in the west. there will be a lot of dry weather to begin the day and a cooler start, with temperatures quite widely into single figures. a little bit lower than this in some rural spots. there will be lots of sunshine first thing. all parts will see cloud increasing. not everywhere will get rain from that cloud. there will be a few showers popping up in northern ireland during the morning, lasting into the afternoon. northwest scotland turning wetter, more widely across western parts
5:56 am
of scotland, later in the day, you'll see some rain. some of that pushing a bit further east during the afternoon. the odd shower for wales and southwest england. across wales and england, more cloud in the afternoon, compared with the morning, and a warmer day across the east and southeast of england, where it stays dry, with some sunny spells, compared with wednesday's rain. it is scotland, northern ireland, northern england with some patchy rain on into thursday night, and then, really by friday morning, it'sjust the northern half of scotland really seeing some rain, on what will be a milder start to the day. so on friday, then, it's really across northern scotland, we will see some further outbreaks of rain for a time. some cloud elsewhere in scotland, northern england, and northern ireland. it's wales and the southern half of england that will see the lion's share of friday's sunshine, on what will be a windy day across scotland, northern ireland and northern england, in particular — really quite gusty winds here, and temperatures are edging just a touch higher. now, it is a sign of things to come into the weekend — it will be pleasantly warm, especially when you get to see some sunshine. high pressure is close by. but that's not the whole story — later saturday, saturday night, first thing sunday, there are some showers, even some thunderstorms pushing up from the south,
5:57 am
into parts of england and wales. some of those come back sunday night and into monday morning. so, whilst many places this weekend will stay dry, there will be a chance of seeing a shower or maybe a thunderstorm, especially the further south you are. so, a selection of locations — you can find more places, of course, online and through the app — showing a lot of fine, pleasantly warm weather when the sun is out, but again, a chance of showers and thunderstorms later on saturday, particularly into england and wales.
5:58 am
5:59 am
6:00 am
good morning, welcome to breakfast with naga munchetty and charlie stayt. our headlines today. doctors and paramedics say that long waits for ambulances across the uk are having a dangerous impact on patient safety. it's the first time i've ever had to phone for an ambulance in my whole entire life, and i've got four children. and so, when i really needed it, it wasn't there to help, and it should be. good morning. the bread rolls are stacked up out of his bakery in bolton, but how do the economic growth figures stack up for the uk? i'll have the latest figures. shanghai's tough covid lockdown gets even stricter, with millions of people banned
6:01 am
from ordering commercial food deliveries.

37 Views

info Stream Only

Uploaded by TV Archive on