tv World Business Report BBC News August 19, 2022 5:30am-6:01am BST
this is bbc news with the latest business headlines for viewers in the uk and around the world. with inflation topping 10% here in the uk, independent retailers put out a call for help. how bad is the situation? we'll know in a few hours when the latest retail sales numbers are published. renters are being priced out of the market by rapidly rising rates. so, are any solutions to be found? and is work from home on fridays killing the after—work drinks? the trade body for bars and nightclubs thinks it may threaten over 250,000 jobs.
yes, a very warm welcome to all the business news. and we start here in the uk, where skyrocketing inflation is causing big problems for retailers. just how big will be revealed in a few hours when we get those retail sales numbers forjuly. if we look back, sales fell 0.1% month—on—month injune, and that was a better—than—expected result as rising energy and fuel prices dented consumer confidence. now that inflation is topping 10%, the british independent retailers association is calling for 100% rates relief to be introduced for smaller retailers, and an energy price cap for businesses. let us get more. andrew goodacre, ceo, british independent retailers association. good morning. thank you for joining us. you are calling for
the smaller retail, rate relief and an energy price for business in general. just talk about energy, energy prices have gone through the roof stop how much is it hurting our retailers?— how much is it hurting our retailers? ,., ., ., , retailers? good morning. it is so significant, _ retailers? good morning. it is so significant, only _ retailers? good morning. it is| so significant, only wednesday i was talking to a retailer, a perfectly successful business, and they were told the energy was rising 500%, and no choice, no room for negotiation. 0n was rising 500%, and no choice, no room for negotiation. on top of the increases both face, the supply chain and in labour increases in business rates increasing by 100% this year, then there is a total tsunami of costs. it is a time when consumer confidence is at a low and we are seeing less money come through the tills as well. it is a really toxic text for businesses on the high street. there was around the world and in the uk, theirjaws will drop when you talk about an increase
of 500%. that is not sustainable!- of 500%. that is not sustainable! ., , �* sustainable! no, it isn't. i totally agree. _ sustainable! no, it isn't. i totally agree. that - sustainable! no, it isn't. i totally agree. that is - sustainable! no, it isn't. i totally agree. that is why | sustainable! no, it isn't. i. totally agree. that is why we have asked the government to step in on this. in fairness, we were seeing increases of 300% last october, so this is not necessarily a new problem. we felt for a long time that intervention and support along the lines of what was happening in the covid period is necessary.— in the covid period is necessary. in the covid period is necessa .�* y necessary. briefly if you can, are ou necessary. briefly if you can, are you saying _ necessary. briefly if you can, are you saying a _ necessary. briefly if you can, are you saying a cut - necessary. briefly if you can, are you saying a cut in - are you saying a cut in consumer spending? are you saying a cut in consumerspending? i are you saying a cut in consumer spending? i wonder what you are expecting in a couple of hours when we get those retail numbers. across nearly all _ those retail numbers. across nearly all sectors _ those retail numbers. across nearly all sectors of - those retail numbers. across nearly all sectors of retail, i nearly all sectors of retail, the exception in the past has beenin the exception in the past has been in clothing and holiday where an item is for weddings has sought out quite well over the summer, but generally seeing speaking declines, and i would be amazed if we didn't see a fair decline when the figures are released later
today. ms are now, because of the uncertainty of energy prices in the future, consumers are definitely raining back on the discretionary expenditure. 0k, andrew, a pleasure having you. thank you for your time. we appreciated. the covid—i9 pandemic and the war in ukraine have caused worldwide disruptions to trade and investment. no country, region or industry has been left untouched and global trade partnerships are changing. on thursday, the us announced that they will begin formal trade negotiations with taiwan with talks focusing on trade facilitation, digitaltrade and anti—corruption standards. so, how has the war in ukraine changed the trade picture globally? and are new trade alliances being formed because of it? let us get more. joining me now is stefan legge, economist, st gallen university. good to have you with us as well. i talk about trade, global tried on my weekly show an awful lot, especially since
the war in ukraine. there are alliances forming, are there? we are looking at change in this trading pattern.- we are looking at change in this trading pattern. yes, we do see that. _ this trading pattern. yes, we do see that, and _ this trading pattern. yes, we do see that, and what - this trading pattern. yes, we do see that, and what we - this trading pattern. yes, we | do see that, and what we lack to understand for quite some time is that we have globalisation, more and more international trade, we have a specialisation, every country does what it is very good at but we forgot a little bit that this is all based on the idea that countries can trust each other to supply each other, and what we have seen with the war in ukraine, but also with covid and the financial crisis, rising protectionism, the us china trade war is at the trust in other countries is eroding, and now you are looking for countries that you can trust thatis countries that you can trust that is more than the other, the current supplier. so this underlying trust is shifting and eroding and that leads to new alliances, countries look for alternative suppliers and they want to diversify and even
mmp they want to diversify and even ramp up domestic production. at}! ramp up domestic production. of course one part of the war we know is this energy crisis that many in europe are certainly facing, and other parts of the world. do you think the trade alliances will be linked to energy supplies?- energy supplies? yes, definitely. _ energy supplies? yes, | definitely. international energy supplies? yes, - definitely. international trade was always characterised to a large extent by energy transfer from one country to the other, but energy used to be a dirty industry, it is still a dirty industry, it is still a dirty industry, but increasingly, it is getting more importance, and we realise that the green energy and a green economy is taking longer than expected, and we need supply of energy, notjust and we need supply of energy, not just from and we need supply of energy, notjust from time to time, but we need every year, and we will look out for new suppliers, and to some extent, reduce the
emphasis on ethics. think about saudi arabia, supposed to be a pariah state, now it is negotiating with france and the us. so energy is driving new alliances, yes. let us. so energy is driving new alliances, yes.— us. so energy is driving new alliances, yes. let me end on this, because _ alliances, yes. let me end on this, because you _ alliances, yes. let me end on this, because you mention i this, because you mention across the supply chain disruptions. do you think that is forcing some nations to look inwards, in terms of, hey, we have to make more stuff at home, and it will not happen overnight but wejust home, and it will not happen overnight but we just have to make more stuff at home on their own. make more stuff at home on their own-— make more stuff at home on their own. exactly, it will not ha en their own. exactly, it will not happen overnight, _ their own. exactly, it will not happen overnight, but - their own. exactly, it will not happen overnight, but thinkl happen overnight, but think aboutjust one case, taiwan is coming out, and increasingly hot topic, and there is a prospect of conflict or destruction, and europe, the us realise how dependent we are on one company, tsmc. so europe is ramping up subsidies for chips production, so a lot of regions and countries will see domestic production, but, yes, this will
be more expensive and it will not happen overnight. indeed. thank you _ not happen overnight. indeed. thank you very _ not happen overnight. indeed. thank you very much - not happen overnight. indeed. thank you very much for - not happen overnight. indeed. thank you very much for yourl thank you very much for your time. have a great weekend. four in ten young people are spending more than 30% of their income on rent new figures suggest. anything above 30% is classed by housing experts as unaffordable. but this data shows that the number of people under 30 paying that rate has reached a five—year high. 0ur consumer affairs correspondent colletta smith has this exclusive story. no—one likes paying rent, but right now, people under 30, like mia, are paying through the nose. mr; like mia, are paying through the nose-— the nose. my tenancy, i am lookin: the nose. my tenancy, i am looking for— the nose. my tenancy, i am looking for new _ the nose. my tenancy, i am looking for new tenancy. it| the nose. my tenancy, i am. looking for new tenancy. it is more expensive. it feels like i will be stuck in rental properties forever. but everyone is in the same position. it everyone is in the same position-— everyone is in the same position. everyone is in the same osition. , ., ., . ., position. it is extortion. what were you _ position. it is extortion. what were you paying? _ position. it is extortion. what were you paying? 850 - position. it is extortion. what i were you paying? 850 between the two of _ were you paying? 850 between the two of us. _ were you paying? 850 between the two of us. i _ were you paying? 850 between the two of us. i moved - were you paying? 850 between the two of us. i moved home . were you paying? 850 between l the two of us. i moved home two weeks _ the two of us. i moved home two
weeks ago — the two of us. i moved home two weeks ago-— weeks ago. the data shows the most unavoidable _ weeks ago. the data shows the most unavoidable areas - weeks ago. the data shows the most unavoidable areas for - most unavoidable areas for young people are in london, many of the areas that have seen the biggest change our other towns and cities. dudley, bolton, slough, salford, nottingham, trafford and peterborough have seen some of the biggest increases. young people spend more of their incomes on rents than any other age group, so with rates going up age group, so with rates going up so quickly, at the same time incomes are not, it is only people who are being squeezed in the middle. and that is before they have even started paying for any of their other bills. in dudley, estate agents say with so few homes coming up, it is tempting for tenants to offer more than the listed price. to offer more than the listed rice. g; :: to offer more than the listed . rice. ,': ii ., to offer more than the listed rice. g; :: ., , price. under 30 are struggling at the moment. _ price. under 30 are struggling at the moment. i _ price. under 30 are struggling at the moment. i can - price. under 30 are struggling at the moment. i can relate i price. under 30 are struggling| at the moment. i can relate to them. i do try and simplify it a little bit but at the same time they should be offering £100 more, £50 more if! time they should be offering £100 more, £50 more if i cannot meet the environment, but if they don't, they will miss out on the property. it is a hard situation. on the property. it is a hard situation-—
situation. that is the conundrum - situation. that is the conundrum that - situation. that is the conundrum that my l situation. that is the . conundrum that my face situation. that is the - conundrum that my face when situation. that is the _ conundrum that my face when she got her flat. were a lot of people looking at every flight you are looking at?— you are looking at? exactly. you have — you are looking at? exactly. you have to _ you are looking at? exactly. you have to offer _ you are looking at? exactly. you have to offer a - you are looking at? exactly. you have to offer a more i you have to offer a more refined something just to get it. refined something 'ust to get it. �* ., ., refined something 'ust to get it. but for some, moving back home does — it. but for some, moving back home does have _ it. but for some, moving back home does have a _ it. but for some, moving back home does have a silver - it. but for some, moving back. home does have a silver lining. i like living with my mum, i will stay there as long as i can. ~ , ., , , will stay there as long as i can. g ., , , ., will stay there as long as i can. g ., colletta smith, bbc news. g row grow up, boys! a severe drought in southern parts of china is becoming the latest headwind faced by the world's second largest economy. a drop in water levels in the yangtze river is curbing electricity generation, which in turn is forcing factories to shut down. 0ur asia business reporter wow da silva is standing by for us in singapore. wow, tell us more. good to see you. the yangtze river is notjust china's longest river, it is also one
of asia's largest waterways, and water levels there are at their lowest level for this time of the year. in this one province, one of china's was populist provinces, the water levels at the hydropower river wires are down by half this month and that is a problem that relies on hydropower to meet about 80% of its energy needs. it is perhaps unsurprising that we are hearing about power cuts in some cities, hearing about factories shutting down, and even office buildings are switching off their air—conditioning was not a reminder that it is august, there is a heat wave there, so demand for air—conditioning is really spiking. some of the companies being affected are the makers of solar panels, makers of cement and other products and we are even hearing about and upstream impact on large automakers like tesla which have large factories elsewhere in china. those reports saying that tesla may find it hard to maintain
current levels of production because some of its suppliers of auto parts in this one are being affected by those shutdowns. this of course is causing a great deal of concern for the chinese leadership, the chinese president xijinping telling the local authorities that they need to ensure that normal life can resume and that normal life can resume and that normal levels of industrial production are maintained. a reminder that the chinese economy was already facing a slowdown. it has been because of course by the strict zero covid approach to the pandemic and by the downturn in the property sector. so this drought really adding to the headaches that the chinese leadership is facing right now. yes, you said it. it is the last thing china needed. in fact, it is the last thing the global economy needs. we will leave it there. thank you for the update. we will talk soon. let us talk about some of the other business is making headlines around the world. the turkish currency, the lira,
has fallen in value again after the central bank unexpectedly slashed its interest rate by i%. inflation in turkey is running at a 24—year high at nearly 80% and is forecast to get worse. the bank said the rate cut was an attempt to cool these price rises in a move that goes against the conventional economic wisdom. the thai commerce minister says a request by producers to increase the cost of instant noodles by a third is too much. the minister is evaluating a proposal from five companies to put up the government—controlled price from six to eight baht, or about 20 us cents. the noodles are consumed by many poor people in thailand and have remained at the same price for ia years, but the firms say they're experiencing soaring production costs. stay with us on bbc news. still to come: is work from home on fridays killing the after—work drinks? the trade body for bars and nightclubs think it may
threaten over 250,000 jobs. 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 chants: czechoslovakia must be free! _ man: czechoslovakia must be free! - crowd chants: 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 me to desert rome?" this is bbc world news. the latest headlines: a fire at a russian ammunition depot is being blamed for the evacuation of two border villages as explosions are reported at an airfield in russian—occupied crimea. a usjudge has unsealed documents that authorised the fbi to search donald trump's florida home. now for you sport's fans out there, you may recently have been enjoying watching the women's european football championship. in fact, more of you than ever before were watching, with record audiences in the stadiums and on screens — the event the latest marker in the rise and rise of women's sport. and that growth offers serious potential for companies looking
to get involved, with research showing fans of women's sport are willing to spend more money and more time with associated brands than fans of men's sports. for this week's talking business weekly programme, i have been speaking to the boss of sports innovation lab, angela ruggiero. she explained how women's sports fans are hungry for more. the demand is there. the demand to — there is a lot of fans that are going online, they are downloading apps, they are following athletes directly, they are trying to get their hands on any content they can and a lot of that comes in the digitalformat and a lot of that comes in the digital format but what that is showing us is that there is a demand out there and when the supply side of the market, when linear tv puts it on tv, the typical broadcast view, those same fans are going to tune in and more so. so, a lot of numbers being thrown out in terms of ratings and the amount of people that watch the euros,
but what we have been suddenly is digital interactions which shows us that there is a massive audience which is untapped and wants to spend more time and more money on the women's side of the game. we know that _ women's side of the game. we know that research from your company and others show how fans of women's sport could be certainly good news for brands and sponsors and more likely to buy into associated products and spend more time with them. what is behind those findings? so, we found in our research that it so, we found in our research thatitis so, we found in our research that it is about the quality of the fan versus the quantity of fan. most male sports are driving enormous eyeballs — thinks the euro men's side of the sport. everyone expects the ratings to be high, the number of tickets sold to be high. we are seeing that while the quantity satisfy the quality is if you follow women's sports you are spending more money
with the brands that sponsor your teams. you are literally spending more time consuming digital and linear contract. you are watching longer, which is very valuable in today's age where the consumer may not have an intention spend, no they are watching log on the women's side of the equation. they are deeper, more loyal, more engaged fans, so if you are thinking about growth going after the women's market is more valuable because these consumers are deeper, more engaged, they are going to spend more money coming in that is big money if you can grow that fan base. and you can see more of that interview with olympic gold medal—winner angela ruggiero on talking business with aaron heslehurst this weekend on the bbc news channel at 3:30pm on saturday here in the uk and in the rest of the world on bbc world news, where the first airing is at 23:30gmt on saturday. the entire show, all about the
business and women in sport. i have also got the head of football for the england football for the england football for the fa and the focal association. so, check that. the us housing market appears to be slowing down. data out on thursday showed that injuly, the number of existing homes sold was lower than in any month since november 2015. samira hussain has more from new york the pandemic may have disrupted large parts of the us economy, but it a boom in housing, and that boom now seems to be over. according to the national of realtors, prices fell slightly between june and july, although they were betweenjune and july, although they were made at between june and july, although they were made at historically high levels. it is in the number of sales that the slowdown is most visible. delight was the sixth consecutive month of declines, and this is to have knock—on effects for the wider economy. —— july. strong effects for the wider economy. ——july. strong home effects for the wider economy. —— july. strong home sales driver spending across a range of sectors from electrical
appliances to diy. because of the low in sales is most likely be federal reserve as it raises interest rates, mortgages are getting more expensive and if homes are being sold. so, while it won't please everyone, this later data may be taken as some evidence that the fed's attempts to get inflation under control by having some effect. hey, it's friday! if you're working from home today you're not alone. friday is the uk's most popular day for working from home, with just i3% of people going into the office. yeah, it is us. that's according to a survey this week from consultancy advanced workplace associates. the return to the office after the pandemic has been slow and employees say ending the working week at home gives them a better work—life balance and saves money on travel. but the shift is hitting city centre hospitality businesses hard, with friday after work drinks fizzling out.
let's get more on this. joining me now is michael kill, ceo, night time industries association, trade body of nightclubs, bars, music and entertainment venues representing moo venues. michael, great to have you with us, my friend. just paint us a brief picture if you can about all these people working from home on friday — what is that doing to the industry? ﬁr. home on friday - what is that doing to the industry?- doing to the industry? or, as ou can doing to the industry? or, as you can appreciate, - doing to the industry? or, as you can appreciate, it - doing to the industry? or, as you can appreciate, it has - doing to the industry? or, as l you can appreciate, it has been at the main stay of british culture for people to go out after work on a friday evening, or go to lunch in the daytime if they are working from the office, and as you can appreciate, during the pandemic many people work from home and it had a huge impact on the hospitality sector in particular that people weren't taking up those lunches and particularly on friday night, as you have suggested, was a huge night for those city pubs, bars and restaurants and with people working from home on a friday that has had a huge dent in it the revenue for these businesses ongoing, and definitely since the pandemic it is that behavioural change
as well impacted revenue coming in at a time when we really, really need the revenue to recover. really need the revenue to recover-— really need the revenue to recover. ., ~ . ., recover. that said, michael, we talk about _ recover. that said, michael, we talk about fridays, _ recover. that said, michael, we talk about fridays, but - recover. that said, michael, we talk about fridays, but i - recover. that said, michael, we talk about fridays, but i am - talk about fridays, but i am looking at some numbers here because it is not as fighters, is it? staff and now going into offices on average, it says here, 1.5 days a week compared to four days, roughly, before pandemic. so, the lack of football, it is almost decimating parts of the... i mean, you're expecting to see businesses fail?— businesses fail? without a doubt. businesses fail? without a doubt- we _ businesses fail? without a doubt. we are _ businesses fail? without a doubt. we are aware - businesses fail? without a doubt. we are aware the l businesses fail? without a - doubt. we are aware the current cost inflation situation is now mounting up to become unsustainable. many businesses are experiencing something like are experiencing something like a 30% increase in cost. so, with the downturn in trade and some of the city centre pubs that rely so heavily on the workers and employees coming and taking lunch or going for and taking lunch or going for an afternoon complaint or in the evening, where that revenue has been lost right the way across the week has been a real, real challenge, but in particular friday because it is
one of the big bonus for us. i think the challenge that we have over all is it is just unsurmountable cost coming in, the trickling of energy costs. we have seen up to 600% increase in energy costs. business interruption insurance is over 100% and they are still suffering from legacies debt per unit on average of about 133 k, so many of the sme businesses, independent businesses, independent businesses, are at huge risk of failing at the moment and subsequently that means jobs being lost also. it subsequently that means “obs being lost alsoﬁ being lost also. it certainly does. being lost also. it certainly does- it — being lost also. it certainly does- it is _ being lost also. it certainly does. it is like _ being lost also. it certainly does. it is like a _ being lost also. it certainly does. it is like a dog - being lost also. it certainly i does. it is like a dog chasing its tailfor the economy does. it is like a dog chasing its tail for the economy here. i was talking about the retailers in those numbers coming out today at the top of the programme, and you mentioned 600%. our gas mentioned 600%. our gas mentioned a 500% increase in energy prices and as i said to him, that is not sustainable. nobody can keep up with that. know, and there are people making decisions with what they do with the business every day the challenge that we have his government have been slow to react. they are reluctant to
make decisions and incoming administrations focus on hustings in the next couple of weeks for the crisis is immediate. that is where the issueis immediate. that is where the issue is and we need an intervention or we will see businesses lost and jobs, you know, it is going to be horrendous. it is potentially catastrophic for our industry. i am sorry to hear that, michael. i have to leave it there but thanks for your time. i appreciated. have a good weekend. let's see how the asian markets are faring today. it isa it is a little bit of a mixed bag but stocks didn't swing on friday. investors tried to assess the federal reserve �*s plans for well what they are doing about lifting interest rates. of course, to fight inflation. we have had some mixed numbers and differing opinions by bank officials providing, well, really they are providing very little clarity, so it is leaving a lot of market traders which way to 90, of market traders which way to go, but many suggest, of course, that is what the market suggested in the us on wall
street. i have got to go. follow me on twitter. treat me. i will treat you back. i will be back at the top of the hour with the news. i will see you then. hello there. the weather is still looking quite mixed, really, over the coming few days. we end the week with some warm spells of sunshine, but there will be a few showers blown in, mainly towards northwestern parts of the uk. towards the southeast, on thursday, temperatures reached 27 in central london and 28 at heathrow airport in the sunshine — that sunshine was ahead of this band of cloud that brought some patchy rain. and that cloud and patchy rain is heading towards the southeast at the moment. it will keep the temperatures up here by the end of the night. but clearer skies will follow to the north, those numbers dropping away to 11—12 celsius. and you may get a view of the northern lights in scotland, maybe the far north of england and northern ireland. some early rain here in the southeast corner of england and cloud — that soon moves away, sunshine comes through. cloud will tend to build up
a bit and, as the wind picks up in scotland and northern ireland, will blow in some blustery showers. here, the odd showers possible across england and wales, but on the whole it looks dry, some sunshine. temperatures similar to what we had on thursday — could make 20 celsius in eastern scotland and eastern parts of northern ireland. low—to—mid—20s across england and wales. now we still have an area of low pressure to the north of the uk. around the base of that, this weather front is pushing in from the atlantic, and that means we start the weekend with some cloud and rain in scotland and northern ireland. but it does move through, and we'll get some sunshine following, a few showers into the northwest. this narrow band of rain gets stuck across northern england. to the south, there could be some spells of sunshine and maybe 1 or 2 light showers, but again, it's generally dry, and those temperatures not really changing much as we head into saturday afternoon. second half of the weekend, and remember, everything is sort of coming in from the west — this is where our weather is coming from, and we've got some more weather fronts, some thickening cloud tending to come in from the atlantic, slowly but surely. and things are slowing
down a bit, really. so we start dry, bright, some sunshine on sunday. and with that cloud coming in steadily from the west during the day, the winds probably a bit lighter on sunday, and a bit of rain coming into some western areas later on. if anything, temperatures may be a shade lower on sunday — 18 central belt of scotland, 2a london and the home counties. now the jet stream is sitting right over the uk at the moment. that's bringing the unsettled weather. into next week, the jet stream heads further north, and that allows some warmer weather to arrive, especially in the southeast.
good morning, welcome to breakfast with charlie stayt and naga munchetty. our headlines today. the first hosepipe ban in wales for 30 years, as parts of the country are offically declared in drought. concerns over ambulance response times. an 87—year—old lay under a makeshift shelter on his garden patio for 15 hours after calling 999. after yesterday's national rail strikes, today the focus shifts to london. members of the rmc on the underground are walking out and passengers are advised not to attempt to travel.
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