tv World Business Report BBC News August 17, 2022 5:30am-6:01am BST
this is bbc news with the latest business headlines for viewers in the uk and around the world. prices are rising faster than they have done for a0 years in the uk. and today we'll find out just how much they have risen in july — and it could be in double digits. how has working from home changed our cities, and what can be done to revive them. it was a0 years ago today the first cd was made at a factory in germany. and despite the rise of streaming it proves itself unexplicably resiliant with sales actually increasing in the us. and will he or won't he? elon musk hence he may purchase manchester united. —— hints.
prices are rising faster than they have done for a0 years in the uk. the bank of england says the recent increases in energy hills, which are set to be three times more than they were a year ago, will drive inflation — the rate at which prices rise — even higher, to 13%. uk inflation hit that a0—year high injune, reaching 9.a%. july's figures are released in a few hours and there is a real chance that headline uk inflation could hit double—figures. joining me now is liz martins, uk economist, hsbc welcome and it is good to have you on the programme. what do you on the programme. what do you think? do you think we will hit double digits today and if so how significant is that?
that is our forecast that we get to exactly 10% year—on—year injuly and some of our fellow economists don't think it is quite that bad they say nine point 8% perhaps but 9.8, ten, these are incredible figures that even a few months ago we would have found hard to believe. yesterday we had the labour market numbers and the wages and they were up as well. so 10% inflation and wages at 5% that is a painful situation for uk households. we 5% that is a painful situation for uk households.- 596 that is a painful situation for uk households. we saw the bank of england _ for uk households. we saw the bank of england predict - for uk households. we saw the bank of england predict this . bank of england predict this and they are trying to increase interest rates to try and stifle the inflation is that what we will see more of you think? more hikes in interest rates from the bank of england? more hikes but we have had quite a few already. the base rate has risen to 1.75% so the b of e is probably nearing the end of thatjourney is a balancing act here. raise
interest rates to try and bring down the rate of inflation but as you do so you slow the economy as well. of course, the bank of england told us a couple of weeks ago they are forecasting a recession to last the best part of two years. you could be careful not to raise rates too much and exacerbate the economic risks in order to bring down inflation. but we do expect a few more rate rises, three more specifically in september, novemberand september, november and december. september, november and december-— september, november and december. ~ , ., ., december. when we see inflation eaked, december. when we see inflation peaked. do _ december. when we see inflation peaked. do you — december. when we see inflation peaked, do you think? _ december. when we see inflation peaked, do you think? it - peaked, do you think? it depends on the household energy price caps. in our current forecast we've got a peak coming injanuary forecast we've got a peak coming in january that will see another rise in household energy cost but even as we were publishing those forecasts, so many people are saying that actually gas prices have risen higher still and there was not a jump in higher still and there was not ajump in apriland higher still and there was not a jump in april and if that is the case then it really depends on when the energy crisis pigs
and that is hard to foresee. also if any action is taken by the government to train reduce the government to train reduce the impact. but for now our forecast is january to be the peak. during the pandemic, offices shifted to home—working but many have continued with a hybrid model since then. uk workers are going into the office an average of 1.5 days a week, with only 13% coming in on a friday, a survey suggests. but what does this change to home working mean for cities? with less footfall, how will it shape the industries we rely on in the office, from commuting to what's on the doorstep from hospitality to retail? joining me now is allen simpson, managing director at london & partners. welcome and thank you for being with us. tell us about london and how it has been four by working from home now that the pandemic is pretty much over and life is returning to some
kind of normality?— kind of normality? start by sa in: kind of normality? start by saying it — kind of normality? start by saying it is _ kind of normality? start by saying it is more _ kind of normality? start by saying it is more the - kind of normality? start by saying it is more the same | kind of normality? start by - saying it is more the same then it is different. most people don't work from home, you cannot come into some jibes, my wife is a nurse. but about a0% of us work from home some or almost all of the time and in other cities it is more like 35%. we recognise the short run impacts to do with consumer spending and productivity does not seem to be affected. we are effective working from home, the really interesting thing is more about the logical cities and the purposes of cities. cities are an amazing way of creating innovation, an opportunity to meet new people and learn new things and what is really interesting is to see how many —— how to replace that
with the time we do not spend together. with the time we do not spend to . ether. ., with the time we do not spend touether. ., ., , together. how are we seeing this shift shape _ together. how are we seeing this shift shape london - together. how are we seeing this shift shape london at. together. how are we seeing | this shift shape london at the moment in terms of other businesses which are impacted ijy businesses which are impacted by the knock—on of not having so many people in the city? we're seeing, let's say, 70— 80% drop in travel across a week and it is fluid. wednesdays and thursdays and not changed that much. so we have a city with picks and bulges. some days we are busier than we were. and some days where it is quiet. and for business the skill is figuring out how to cope with that slightly different demand. what about traffic? _ slightly different demand. what about traffic? traffic _ slightly different demand. what about traffic? traffic is a - about traffic? traffic is a pattern- _ about traffic? traffic is a pattern. there _ about traffic? traffic is a pattern. there are - about traffic? traffic is a pattern. there are days| about traffic? traffic is a - pattern. there are days when it is quieter on days when it is busier. but what we're finding, actually, is that the pattern
everyone coming in on a wednesday is slightly evening itself out. the train is too busy on the day they want to come in so people are self—selecting other days and in general we see things return to something like normality. it is important to say that not all working from home and those who are are increasingly to spend time in the office on days other than wednesdays and thursdays. so in most regards it is not that much different. the most interesting thing will be the return of international tourism this year because tourism this year because tourism funds our cities and it is what brings in the money to support feeders galleries and restaurants and we'll see that as a key part of the value of living in a city like london, new york or paris.- living in a city like london, new york or paris. thank you very much — new york or paris. thank you very much for— new york or paris. thank you very much forjoining - new york or paris. thank you very much forjoining us. - much of the inflation we're seeing now was made worse by the war in ukraine, which caused food and fuel prices to soar globally.
the bbc has spoken to people all over the world about how rapidly rising cost of living has hit them and found many doing their best to tackle rising prices. we feed a200 kids. here, in rural georgia, all the children donner is responsible for feeding are on free school meals. that it has been a struggle with spiralling invalidation. i struggle with spiralling invalidation.— struggle with spiralling invalidation. , ., . invalidation. i used to have two vendors _ invalidation. i used to have two vendors and _ invalidation. i used to have two vendors and though i l invalidation. i used to have - two vendors and though i have one vendor. he can charge me anything that he wants. i one vendor. he can charge me anything that he wants.- one vendor. he can charge me anything that he wants. i am at his mercy- _ anything that he wants. i am at his mercy. when _ anything that he wants. i am at his mercy. when supplies - anything that he wants. i am at his mercy. when supplies do i anything that he wants. i am at. his mercy. when supplies do not come through she has to hustle. what has been a big challenge this week and getting food? i know you have been struggling all summer. know you have been struggling all summer-— all summer. one of the things our kids really _ all summer. one of the things our kids really love _ all summer. one of the things our kids really love our - our kids really love our smoothies for breakfast and we found out from our vendors that he did not have the bulk yolngus for our smoothies. so we went to walmart, to any
grocery stores that we could find. i did not want the kids going home to their mum and saying they didn't have any smoothies. having our kids eat breakfast and lunch here at school is a saving to their family budget. they are struggling with inflation here in the united states. it is very high, food is gone up, gases gone up in the salary and income has not gone up proportionally.- income has not gone up proportionally. industry is assinr proportionally. industry is passing through _ proportionally. industry is passing through a - proportionally. industry is passing through a lot - proportionally. industry is passing through a lot in l passing through a lot in nigeria right now. we are running _ nigeria right now. we are running at a loss, a serious loss — running at a loss, a serious loss. �* , ., ., ., ., loss. as the head of a large bakers association, - loss. as the head of a large l bakers association, emanuel organised a four—day shutdown of bakeries. he says half a million people took part. we not million people took part. we got flyers — million people took part. we got flyers today and it is very tough — got flyers today and it is very tou . h. ., got flyers today and it is very tou . h. . ,, ., got flyers today and it is very tou~h. . ,, ., , ,
tough. the war in ukraine push the rice tough. the war in ukraine push the price of— tough. the war in ukraine push the price of wheat _ tough. the war in ukraine push the price of wheat to _ tough. the war in ukraine push the price of wheat to record - the price of wheat to record levels and bakeries like emanuel�*s to the brink. i levels and bakeries like emanuel's to the brink. i feel for nigerians. _ emanuel's to the brink. i feel for nigerians. some - emanuel's to the brink. i feel for nigerians. some are - emanuel's to the brink. i feel| for nigerians. some are using 100% — for nigerians. some are using 100% of— for nigerians. some are using 100% of their income today on food — 100% of their income today on food how— 100% of their income today on food. how do they fend for their— food. how do they fend for their families? forced out of work by the pandemic, christina floris got together with her neighbours to set up this communal pot. lockdown is over but things are getting harder as everywhere soaring energy and fertiliser prices are pushing up the price of food.
chinese premier li keqiang has asked local officials from six provinces to take the lead in stabilising the economy. the comments came at meeting with the officials on tuesday and comes after the latest data showed that consumption and output fell below expectation. 0ur asia business reporterjoao da silva is following the story from singapore. bring us up—to—date. this is a clear and reassign that there is unease at the top of beijing's about the state of the economy. the request from china's number two coming just days after the central bank
unexpectedly cut lending rates and also, as you mentioned, after that data on consumption output came in well below expectations. the premier met with leaders of six very porten provinces and just to give you an idea, together those provinces amount to a0% of china's economy. the premiere told those local leaders that they need to take steps to boost consumption and offering more fiscal support for investment. he also told them that they need to strike a balance between those measures and china's very strict pandemic control measures, a reminder here that the chinese leadership has vowed to continue following a zero covid approach. businesses and major industrial hubs and tourist centres are facing interment in determinant shutdowns every time there is an outbreak and
thatis time there is an outbreak and that is having massive economic impact. the chinese leadership has set a growth target of 5.5% for the year but according to many economists who are lowering their forecasts that target looks increasingly ambitious, especially after the june quarter, china narrowly avoided an economic contraction. thank you. let's get some of the day's other news. apple has reportedly told its employees to return to the office for at least three days a week, starting from september. according to the financial times, ceo tim cook says the move will preserve the "in—person collaboration that is so essential" to company culture. the tech titan had announced a similar plan last year but then postponed the original date due to rising covid cases. walmart is considered a bellwetherfor the us economy. the company reported better than expected sales, driven largely by consumers buying groceries and other essentials. but their profits got smaller compared to the same time last year. high inflation has meant that shoppers are pulling back on big ticket items, instead
sticking to the necessities. stay with us on bbc news, still to come: it was a0 years ago today the first cd was made at a factory in germany. and despite the rise of streaming it proves itself unexplicably resiliant with sales actually increasing in the us. washington, the world's most political city, is today assessing the political health of the world's most powerful man. indeed i did have a relationship with ms lewinsky that was not appropriate. in fact, it was wrong. in south africa, 97 people have been killed today, in one of the worst days of violence between rival black groups. over the last 10 days, 500 have died. crowd chant: czechoslovakia must be free! _ man: czechoslovakia must be free! - crowd chant: czechoslovakia must be free! _
russia is observing a national day of mourning for the 118 submariners who died on board the kursk. we are all with them now, within our hearts. the pope has celebrated mass before a congregation of more than 2.5 million people in his hometown of krakow. "stay with us, stay with us," - chanted this ocean of humanity. "well, well," joked the pope. "so, you want mej to desert rome?" this is bbc world news, the latest headlines. voters in the us state of wyoming have ousted the trump critic, republican liz cheney, from her seat in congress, replacing her with a candidate who supports mr trump's unfounded claims of voter fraud. president biden signs on the dotted line —
the biggest—ever investment in green energy passes into law, with more than $a00 billion of new spending. the billionaire elon musk�*s tweeted that he's "buying manchester united" — but it's not known if he's serious. his post has already attracted almost 300,000 likes. he did tweet again saying it was a joke. joining me now is susannah streeter, senior investment and markets analyst, hargreaves lansdown. we hargreaves la nsdown. were we hargreaves lansdown. were going to talk about thl possibility we were going to talk about the possibility of him buying but he has reacted to that by tweeting know this is a long—running joke on twitter i'm not buying any sports team, when asked by users of people serious about buying the club. we have been contemplating whether it was serious, me — many manchester united fans would like the prospect of him buying? it
would like the prospect of him bu im? .,, would like the prospect of him buin.? , would like the prospect of him buinu? , ., buying? it appears they would, he set twitter _ buying? it appears they would, he set twitter alight _ buying? it appears they would, he set twitter alight with - buying? it appears they would, he set twitter alight with his i he set twitter alight with his comments a few hours earlier but now disappointment because there willing to spend, were hoping perhaps there the glazer family indicated unless a hefty sum and elon musk has so it wasn't outside the bounds of possibility that he could do
for teasing on twitter, wants to use this platform even though he is trying to walk away from buying to buy the platform but now doesn't want over box on the platform and it is, it's the court date.- is, it's the court date. more on his twitter _ is, it's the court date. more on his twitter battle, - is, it's the court date. more on his twitter battle, he - is, it's the court date. more| on his twitter battle, he has sold some tesla shares, we think to go to court, is that twitter deal completely off? i certainly think it does mean that, he is determined to walk away from it, right at the
beginning lot of outrage at him offering this amount of money for twitter, offering this amount of money fortwitter, he offering this amount of money for twitter, he is clearly a fan of the platform, he uses it to communicate with his many, many fans around the world, there were indications about tesla and space it ambitions, and he has run into problems of regulators about what he has posted on twitter, but his decision to make that offer for twitter to buy it, it was, at the time really controversial, and then soon after, this? was raised about the number of fake accounts on the platform, and thatis accounts on the platform, and that is what he is trying to use to walk away from the steel, but twitter is set to fight very hard, and currently lawyers from both sides are wrangling and different documents are being put into each other�*s side, so the judge really can assess the way forward, but certainly doesn't look like he will be buying
twitter any time soon, or any sports team. twitter any time soon, or any sports team-— twitter any time soon, or any sports team. thanks for taking us through _ sports team. thanks for taking us through that _ sports team. thanks for taking us through that is _ sports team. thanks for taking us through that is changed - sports team. thanks for taking us through that is changed as l us through that is changed as we just went on air. before we picked up ipods and smartphones to play music via itunes or spotify — cds ruled the audio format landscape. rewind a0 years today, and the world's first cd was manufactured at a philips factory near hanover in germany on august 17, 1982. so whatever happened to the i2—centimetre shiny discs and have they become obsolete? in 2007, at the peak, more than two billion discs were sold globally. but since spotify�*s emergence in 2008, the trajectory has been downwards. but rumours of the cd's demise are not accurate — according to data from the recording industry association of america, shipments of compact discs rose from 31.6 million in 2020 to a6.6 million in 2021 —
a rise of a7%. revenue also rose from $a83.2 million to $58a.2 million. so should we be digging out our discmans and rediscovering cd collections again? what's the reason behind the resurgence and are other countries spinning the shiny discs again? joining me now is mark mulligan, managing director and analyst at midia research. i guess lots of people like me will have a box of cds in their attic with nowhere to play them just thinking what are they going to do because even charity shops don't want them but it seems lots of people are still buying and playing them, how, and where and why? i think it is more — how, and where and why? i think it is more of— how, and where and why? i think it is more of a _ how, and where and why? i think it is more of a dead _ how, and where and why? i think it is more of a dead cat _ how, and where and why? i think it is more of a dead cat bounce . it is more of a dead cat bounce than rename silence for the shiny dose, —— renaissance. it
is growing there has been an uptick in vinyl sales example, for many years now but you put vinyl and cd together still only about 16 or 17% of the global music market because as much as they are growing, streaming is growing much more quickly, streaming is the future, cds past there is a little bit of a nostalgia for the cd that has certainly driven some sales over the last couple of years.— couple of years. what about sound quality. _ couple of years. what about sound quality, my _ couple of years. what about sound quality, my kids - couple of years. what about | sound quality, my kids listen to music on the phone and it is nowhere near as playing it by a record player or cd player, is it? ~ record player or cd player, is it? . , , record player or cd player, is it? ~ , , ., ., it? well, it depends on what ou it? well, it depends on what you mean — it? well, it depends on what you mean by _ it? well, it depends on what you mean by good, - it? well, it depends on what you mean by good, people l it? well, it depends on what i you mean by good, people like me mice were brought up and educated by the consumer electronics industry that quality was everything, we went from cassette to cd, vhs to
dvd, standard definition to because quality was everything stop people and teenagers now even those on their 20s who came of age and the 2000 �*s, quality wasn't what was important, it was accessibility, portability being able to take things with you and get whatever you want whenever you want, convenience became more important than quality. the vast majority people in world listening to music listen on tiny little headphones, probably won't be able to tell the difference between much of the audio quality, another reason why the cd has less relevance now even if it might be a better quality format, it doesn't have the same paul it used to have, 20 or 30 years ago. same paul it used to have, 20 or 30 years ago-— or 30 years ago. most people don't have — or 30 years ago. most people don't have the _ or 30 years ago. most people don't have the space - or 30 years ago. most people don't have the space or- or 30 years ago. most people| don't have the space or desire to get huge speakers, i remember having —— my dad having speakers bigger than me, i bought a record player couple of years ago so i could get my
80s vinyl out but you don't play them very often, because there is that immediacy of being able to just click on a phone and choose whatever song you want? phone and choose whatever song ou want? ~ ,,., , phone and choose whatever song ouwant? , ,, you want? absolutely, speaking out of the inside _ you want? absolutely, speaking out of the inside of _ you want? absolutely, speaking out of the inside of my - you want? absolutely, speaking out of the inside of my mouth, l out of the inside of my mouth, there is a reason why people are buying cds again, and people are getting bitten by cds again that as there is something of a whole that is left by digital, because when you stream get instant to everything, people can listen to more music than ever before, it has transformed the way the music business works in the way consumers listen to music, but the idea of holding something and having something on your shelf, the fiscal element, the tactile sense that this means something to me is a gap the music market has left inadvertently into the rush to digital. the people are returning to a a0—year—old
format shows how much something new is needed to fill that gap. thanks for watching, i might share some of my finals on twitter. hello there. a north—south divide across the country today. northern areas looked largely dry with plenty of sunshine, but again, across england and wales, closer to a thundery low than we're likely to see these thundery showers developing. again, they could be heavy enough to cause some localised flooding, especially from the midlands southwards. you can see that thundery low to the south, a ridge of high pressure building in across the north. this weather system will arrive across northern and western areas on thursday. so again, for large parts of england and wales, we'll see the clouds bubbling up, thunderstorms breaking out pretty much anywhere, but certainly across the midlands, in towards south, southeast england. further north, widespread sunshine around, light winds too. a very pleasant day, with temperatures reaching around 18 or 19 degrees, england and wales. little bit cooler, still quite humid in the southeast,
top temperatures 20—23 degrees. as we move through wednesday night, the showers and thunderstorms continue to rattle on across to east anglia and the southeast. and then eventually, they'll clear away and we start to see some wetter weather and breezier weather pushing into scotland and northern ireland, so temperatures recovering here. a few chilly spots under the clear skies, northern england, 11—15 across the south and east. here's thursday's pressure picture, then. this weather front bringing outbreaks of rain into scotland, northern ireland, perhaps western england and wales through the day. some heavy bursts mixed in there, quite a lot of cloud, generally. across the east and southeast of england, though, apart from the odd shower around, we should see some good spells of sunshine, so a quieter story here. a little bit warmer with more sunshine in the southeast, up to 25 degrees. around 20 or 21 as well across scotland and northern ireland. into friday, looks like that weather front eventually clears away from the southeast of england. we've got further sunshine and showers, scotland and northern ireland, northwest england, but quite a bit of sunshine, i think, across central, southern and eastern england.
and again, quite warm — 25 degrees. around the high teens in the north and the west, these sorts of values closer to the seasonal norm. we hold onto the run of westerly winds as we head into the weekend, this feature bringing an area of wet and windy weather across scotland. as we move through saturday night into sunday, though, we'll look at the next system, which will bring a spell of wet and windy weather across the whole of the uk during sunday. so for saturday, then, it looks like it's northern areas which will see the showers. drier further south. sunday, though, looks unsettled across the whole of the uk, with outbreaks of heavy rain in places.
good morning. welcome to breakfast withjon kay and sally nugent. 0ur headlines today... compensation for thousands of people infected with contaminated blood during the �*70s and �*80s, but campaigners say the many grieving families have been ignored. payment of £100,000 is going to the surviving infected and the bereaved partners. sadly, children who have lost parents and parents who have lost children are not included. things are costing more but how much more? i am at a minimum wholesale