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tv   World Business Report  BBC News  September 2, 2022 5:30am-6:01am BST

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this is bbc news with the latest business headlines for viewers in the uk and around the world. going nuclear: borisjohnson pledges £700 million for the sizewell c power station project. but it could take 15 years and many billions more before it's up and running. pounded! sterling continues to fall after its biggest monthly slide since the brexit referendum in 2016. all eyes now on the usjobs report for august. a big number could mean more aggressive rate hikes from the federal reserve, and an even stronger dollar. plus, big screen versus big stream: can old—school cinemas survive in the age of netflix?
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"go nuclear and go large, go with sizewell c" — those were the words of outgoing prime minister borisjohnson on thursday as he pledged £700 million of uk taxpayers�* money to help build a new nuclear plant at sizewell in suffolk. he said it's vital that the uk becomes more energy independent as soaring oil and gas prices have left millions facing fuel poverty this winter. but critics argue that the money would be better spent on wind, solar, or even just better insulation for our homes. and it could take 15 years and many billions of pounds before this new nuclear plant is up and running. 0ur political correspondent iain watson has more.
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the outgoing prime minister want to go nuclear. he would like to give the green light to a new power station here in sisal in suffolk. he is spreading £700 million which will set off a chain reaction with companies in turn pledging more cash for the project. the deal is not done yet. he said nuclear power as part of a strategy to improve the uk's energy security. {jut strategy to improve the uk's energy security.— energy security. out of this catastmphe _ energy security. out of this catastrophe of _ energy security. out of this catastrophe of prudent's i energy security. out of this l catastrophe of prudent's war, energy security. out of this . catastrophe of prudent's war, i think good is going to come, and europe will wean itself off russian hydrocarbons, we will no longer be subject, vulnerable to his blackmail, and, in this country, we will have greatly accelerated long overdue reforms and steps to become energy independent, in particular by rectifying the damage we have done to our nuclear industry.— damage we have done to our nuclear industry. boris johnson
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not guarantee _ nuclear industry. boris johnson not guarantee that _ nuclear industry. boris johnson not guarantee that a _ nuclear industry. boris johnson not guarantee that a new- not guarantee that a new nuclear power station will be built. that decision will be taken by his successor, and it could take billions of pounds, not the millions he has pledged, to get the project off the ground. even then, it might not produce any power for another 15 years. in the serious short—term challenge of soaring bills, liz truss has said she would offer immediate support if she becomes prime minister. but she hasn't said how much. rishi sunak has said he would cushion the well from the effect of price increases but hasn't said how much money he provide. the labour leader would present his call for a six—month price freeze. for would present his call for a six-month price freeze. for the millions of— six-month price freeze. for the millions of people _ six-month price freeze. for the millions of people that - six-month price freeze. for the millions of people that would . millions of people that would be able to pay those bills, hearing the labour party say we would freeze those bills, we will not let that happen, and we will use money from the windfall tax on oil and gas companies who have made much more money and bottle proper than they were defecting to pay for that, that is a huge relief. , , ., , relief. there seems to be agreement _ relief. there seems to be agreement across - relief. there seems to be agreement across the -
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relief. there seems to be - agreement across the political spectrum that the uk should be less reliant on other countries for its energy needs. but irrespective of how or where power is generated, challenged the politicians is to ensure people can afford to pay for it. iain watson, bbc news. tom greatrex is ceo of the uk's nuclear industry association. he was also former shadow energy minister, covering energy policy for the opposition labour party here in the uk. thank you so much forjoining me today. it is good to see you. yesterday i was watching a clip of tony blair mocking david cameron about the conservatives stance on nuclear, and that one day someone might turn around and say the lights are going to go out, let's rustle up some nuclear. this is the major criticism — you can'tjust rustle up nuclear energy. no, you can't, it takes time to build them, but once built, produce a lot of power from a very small site for a very long time without any carbon emissions and without the
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prices we are seeing by relying on burning fossil fuels. how long would it take, all things considered, to be up and running? do you think 15 years even remotely realistic?- do you think 15 years even remotely realistic? yes, if we aet remotely realistic? yes, if we net on remotely realistic? yes, if we get on with — remotely realistic? yes, if we get on with it, _ remotely realistic? yes, if we get on with it, we _ remotely realistic? yes, if we get on with it, we can - remotely realistic? yes, if we get on with it, we can do it i remotely realistic? yes, if we get on with it, we can do it in | get on with it, we can do it in around ten to 12 years i expect. it depends on how quickly decisions are taken, and yesterday was an important step, but it is not the final step. step, but it is not the final ste . _ ., ., “ step, but it is not the final ste, ., , step. looking at this technology, - step. looking at this technology, nuclear| step. looking at this - technology, nuclear does not have a good track record of finishing on time. edf is still struggling to finish a reactor in france delayed by more than ten years. look at the situation at hinkley point, thatis situation at hinkley point, that is still behind schedule, and also, at an increased cost of half £1 billion. these are significant delays and significant delays and significant costs. in significant delays and significant costs. in glebe point didn't _ significant costs. in glebe point didn't start - significant costs. in glebe - point didn't start construction ultimately despite it being something that government have been talking about for a long time, didn't get its final agreement until almost at the
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very end of 2016, so delays to starting construction mean it will come in later than people might have anticipated some years ago, but that is not because of construction. that is because of decisions that need to be made in terms of planning and approval. what we saw yesterday and some of the statements that were made yesterday have been made over the last two months by the government in the uk is about getting on with it, about getting on with it, about getting on with making those decisions get the infrastructure built. the time to build a nuclear power station is always 15 years ago. the second best time is now. we don't want to be in exactly the same position next time there is a price shock in energy and we need to have in the long—term have a resilient low carbon power supply for the future, and that is what nuclear helps to provide. it is not the only source you will you but it will provide firm low carbon power that isn't subject to the power prices, gas prices in the same way we are seeing at the moment, and thatis are seeing at the moment, and that is what we need to go and
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do. i that is what we need to go and do. ., ., that is what we need to go and do. . ., , . ~' that is what we need to go and do. ., ., , ,., ., do. i want to pick up on a clarification. _ do. i want to pick up on a clarification. in _ do. i want to pick up on a clarification. in terms - do. i want to pick up on a clarification. in terms of. clarification. in terms of hinkley point, the timeline was delivered in 2016 after the announcement had been made, and they said they would be producing power by 2025. they now think it is 2026 so that did slip after the initial delays. did slip after the initial dela s. ., , , did slip after the initial dela s. . , , ., delays. there has been a pandemic— delays. there has been a pandemic during - delays. there has been a pandemic during that - delays. there has been a - pandemic during that because of a couple of years ago we had a period where there was very little construction able to take place in a defective construction projects, notjust in energy but across lots of different infrastructure. that was something that was not foreseen and that has had an impact in terms of delay. but people say it is ten years later, you talk about 2017, but originally we were saying we should have hinkley online. if you don't make the decision until 2017, you will not deliver it on time.- until 2017, you will not deliver it on time. but these decisions — deliver it on time. but these decisions need _ deliver it on time. but these decisions need to _ deliver it on time. but these decisions need to be - deliver it on time. but these decisions need to be made l deliver it on time. but these i decisions need to be made now and people across this country and people across this country and elsewhere are facing cost of living crisis right now, and energy bills are really through
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the roof this winter. in terms of cost, there is something to consider here, that if a decision is made to go ahead with nuclear, how are those costs going to be apportioned? presumably the costs will fall on the average consumer now as i have two front up the cash in order to pay for this is investment.— order to pay for this is investment. yes, energy infrastructure _ investment. yes, energy infrastructure has - investment. yes, energy infrastructure has to - investment. yes, energy infrastructure has to be l investment. yes, energy. infrastructure has to be paid for... , , , ., for... the energy bills will go u . for... the energy bills will go u- in for... the energy bills will go up in terms _ for... the energy bills will go up in terms of _ for... the energy bills will go up in terms of investing - for... the energy bills will go up in terms of investing in i up in terms of investing in nuclear. up in terms of investing in nuclear-— nuclear. no, they won't, because _ nuclear. no, they won't, because you _ nuclear. no, they won't, because you are - because you are displacing using gas—fired power and the volatility pricing causing issues we are seeing at the moment with firm low carbon power for nuclear, so the price predictability is better in the overall cost will be lower because you will be paying for infrastructure which has a very low fuel cost and therefore cheaper electricity. but low fuel cost and therefore cheaper electricity.- low fuel cost and therefore cheaper electricity. but in the meantime. — cheaper electricity. but in the meantime, liz _ cheaper electricity. but in the meantime, liz truss - cheaper electricity. but in the meantime, liz truss is i cheaper electricity. but in the meantime, liz truss is widely expected to be written by the next prime minister has recently said she is not sure that france is indeed a friend of written.
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—— a friend of britain. how does that tally with edf, a french—state owned company, being the potential operator at sizewell? edf have currently operated, it is coming to the end of his life, had a long—standing relationship with edf and the nuclear with friends, i suspect that will continue regardless of comments made during the election process. it’s of comments made during the election process.— election process. it's france a friend of— election process. it's france a friend of britain _ election process. it's france a friend of britain when - election process. it's france a friend of britain when it i election process. it's france a| friend of britain when it comes to nuclear?— to nuclear? yes, and it has been for — to nuclear? yes, and it has been for generations. i i to nuclear? yes, and it has| been for generations. i fully expect that to continue because there is a shared interest in energy security across europe in ensuring that the opportunities for supply chains that exist in the uk and in france and work together as i have done for many years, both within each other�*s countries and more widely across the world. i and more widely across the world. . ,, . ., _, world. i appreciate your time. thank yon —
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world. i appreciate your time. thank you. thank _ world. i appreciate your time. thank you. thank you. - the pound has fallen below $1.15 cents for the first time since the start of the pandemic back in march 2020. it comes after a brutal month for the uk currency — it lost about 5% against the us dollar during august, the worst monthly performance since the aftermath of the brexit vote in 2016. investors are worried about the prospects for the uk economy with consumers and businesses facing rising prices and soaring energy bills. the bank of england has predicted the uk will fall into recession towards the end of this year. dan kemp is the global chief investment officer at morningstar investment management. the prospect of parity with the dollar was once crazy talk. now, the implied probability on the money markets of that happening is1 in 32. and it's a 1 in 7 chance of being back at1 in 5. is a currency crisis on the horizon?
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hello. i think the first thing to remember is that when we have these sharp price moves, investors and market participants tend to get really excited and talking about crises and what could happen next, and tend to fall into the behavioural mistakes of expecting the current trend continue. it is really important to take a step back and look at the longer term and also what is really behind these falls we have seen. i am thinking much more from a valuation perspective, and as we look at that, it is really not a pound story. we tend to think in terms of pounds because we are in the uk, but it is really a dollar story. if you look at all the major currencies around the world, they have all been falling against the dollar, so it is about the dollar strength and stirling weakness. bud about the dollar strength and stirling weakness.— about the dollar strength and stirling weakness. and we will be coming _ stirling weakness. and we will be coming to _ stirling weakness. and we will be coming to that _ stirling weakness. and we will be coming to that in _ stirling weakness. and we will be coming to that in a - stirling weakness. and we will| be coming to that in a moment when we talk about the us jobs
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data. i hear what you are saying. however, there are things that are specific to stirling and specific to the uk economy. —— maga. liz trust saying comments on interest rates. what impact is that likely to have on stirling? == likely to have on stirling? -- sterling- _ likely to have on stirling? -- sterling- i — likely to have on stirling? » sterling. i concur with your last guest commenting on political promises in the middle of an election campaign is probably not something that we are going to be thinking about longer term... we are going to be thinking about longerterm... but we are going to be thinking about longer term. . .- about longer term... but is that having _ about longer term... but is that having a _ about longer term... but is that having a particular- about longer term. .. but is i that having a particular impact on the value of the pound? personally i don't think that is having a big impact on sterling, there are other structural factors which you mentioned which is having an impact on sterling. we have a very tight labour supply and you have had some structural changes following brexit, and it is having an impact on the pound as well. at the pound is
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not alone. we have this very high inflation that we are seeing, there is concerns that the bank of england isn't doing enough yet with their balancing, sojust considerations in terms of the slow nuclear economy as well as the said is doing in the us, but the fed is being more aggressive, people affecting the fed to go further, and that is one of the things pushing the us dollar up against other countries, whereas in the uk, we have gone more slowly, that reflection some ways notjust the structural issues that i mentioned, but also, some of the price changes that we might see in terms of energy, which tends to be quite volatile. i certainly wouldn't be criticising the bank of england, they have a very tough job to do, but the important thing is as an investor not to get tied up in the day—to—day news flow but think of it from a long—term valuation perspective, because we do
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that, sterling looks really cheap, it looks about 20% undervalued compared to the us dollar. 0ver undervalued compared to the us dollar. over the long—term, thatis dollar. over the long—term, that is likely to, sterling is likely to reach its fair value. we don't know what the journey will be, but really important that people don't get over excited about the short—term. it obviously has an impact on people's cost of living, that is really important. but when we think about it from an investment perspective, sterling looks great value and really undervalued.— sterling looks great value and really undervalued. thank you very much- — stay with us on bbc news. still to come, big screen versus big stream: can old—school cinemas survive in the age of netflix? she received the nobel peace prize for her work with the poor and the dying in india's slums. the head of the catholic church had said mother teresa was a wonderful example
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of how to help people in need. we have to identify the bodies, then arrange the coffins and take them back home. parents are waiting and wives are waiting, so... hostages appeared, - some carried, some running, trying to escape _ the nightmare behind them. britain lost a princess today. described by all to whom she reached out as irreplaceable. an early morning car crash in a paris underpass ended a life with more than its share of pain and courage, warmth and compassion. this is bbc world news.
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to the us now. we've been talking about the soaring dollar. all eyes are now are on the latest employment figures, which are out in a few hours' time. a strong us jobs report could embolden the federal reserve to carry on raising interest rates aggressively. and that will mean an even stronger dollar and possibly more pain for stock markets. samira hussain in new york has more. the much dissipated and closely watched jobs report, columnists are expecting the us to add about 300,000 jobs, give or take. it's less than the previous month when the economy added 528,000 jobs. there is an expectation that we could see some solid wage growth, especially given the tight labour market but it doesn't look like the unemployment rate will change much staying at its five decade low of 3.5%. couple
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that with comments made by jerome powell last week, wall street is expecting a pretty hefty increase to interest rates later this month. it seems that the us economy can handle it. plus, even though inflation may have dipped in the last cpi report it is still at a four year high. combating the high cost of living is a priority but investors continue to worry about the speed of the rate hikes with many worried it is a fast track for a recession. let's talk to economist pete earle, research fellow at the american institute for economic research. he's in great barrington, massachusetts. lovely place. let's talk about what is going here and the paradox of the us labour market, because we are repeatedly seeing and reporting on this programme about layoffs, during a time of a jobs boom and a time of low unemployment sojust how
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jobs boom and a time of low unemployment so just how robust an indicator of strength is jobs to what is actually going on with the us economy? thanks for havin: on with the us economy? thanks for having me- — on with the us economy? thanks for having me. i— on with the us economy? thanks for having me. i think _ on with the us economy? thanks for having me. i think the - for having me. i think the first and the most important thing to mention is that unemployment doesn't cause recessions, recession scores unemployment and typically unemployment and typically unemployment is at a low up to a year before recession begins. 0ne a year before recession begins. one of the things we are learning right now is that economic numbers are often conflicting in nature and we see slowing growth amid a very strong job market and we are also learning that the effect of the pandemic mitigation policies are still with us and probably will be with us for a while. �* ., ., i. ., ,, ., while. and what do you make of any hepes _ while. and what do you make of any hepes for— while. and what do you make of any hepes for a _ while. and what do you make of any hopes for a pivot _ while. and what do you make of any hopes for a pivot from i while. and what do you make of any hopes for a pivot from the l any hopes for a pivot from the federal reserve in terms of interest rates and the path that they are set on? right now the fed is _ that they are set on? right now the fed is fighting _ that they are set on? right now the fed is fighting the - the fed is fighting the perception that it is going to blink once the economy slows enough to start generating higher unemployment and i think
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what we are seeing in the stock markets right now is a sign that the markets are actually taking jerome powell seriously and they believe, the market participants believe that he will not back off even when unemployment starts rising in an effort to squash the inflation that is at a0 year highs. inflation that is at 40 year hi . hs. ., , highs. the new dallas fed chief has ut highs. the new dallas fed chief has put the _ highs. the new dallas fed chief has put the inflation _ highs. the new dallas fed chief has put the inflation fight i highs. the new dallas fed chief has put the inflation fight on i has put the inflation fight on the front burner, laurie logan, in herfirst comments. how real is the fight with inflation and what is being done to tackle it on the ground?— on the ground? there is two thins on the ground? there is two things right _ on the ground? there is two things right now. _ on the ground? there is two things right now. it - on the ground? there is two things right now. it is i on the ground? there is two things right now. it is a i on the ground? there is two things right now. it is a very| things right now. it is a very real fight. things right now. it is a very realfight. the fed is of course raising interest rates but it's also job only, it's making sure that the market knows it is not going to back off and also this month we have the beginning of the run—off of the beginning of the run—off of the fed balance sheet so about $95 billion is about to start to come out of the economy stopping those two things will act against inflation but they are also going to push the dollar up ready substantially, even above where it is right now. . ,
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even above where it is right now. ., , , , , now. 0k, and 'ust very briefly, america-s — now. 0k, and just very briefly, america's strong _ now. ok, and just very briefly, america's strong dollar- now. 0k, and just very briefly, america's strong dollar is i america's strong dollar is hurting everyone. it is a difficult situation for the rest of the world. it difficult situation for the rest of the world.- difficult situation for the rest of the world. it is, and it is really _ rest of the world. it is, and it is really happening i rest of the world. it is, and it is really happening for. rest of the world. it is, and | it is really happening for two reasons. the dollar is a safe haven asset and it started running up after russia invaded ukraine but also again it is just supply and demand with lots of dollars leaving the markets, both because of the fed balance sheet and rising interest rates there is a lot of demand for the dollar and the supply is decreasing. thanks very much, thank you for your insights. of course with the us dollar being so strong as it is means a night out in rome is cheaper than it once was but a more complicated picture for multinational companies and foreign governments, so thank you very much for those insights. finally, to the world of film. this week has some of the biggest names in the movie business have been descending on venice for the annual film festival. eight out of the last 10 best director 0scars have gone to films that premiered at venice. but the name that is shaking up the world of hollywood is
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netflix. the streaming giant is increasingly backing big budget movies, and chasing its first ever best picture 0scar. it is premiering four movies at the venice festival, including blonde, a dark retelling of marilyn monroe's tragic life. they won't be released in cinemas. meanwhile, there's a potential disaster movie in the making for traditional cinema. cineworld, the world's number two cinema chain, is close to bankruptcy, with debts of $5 billion. thousands of cinemas could close in the us and here in the uk if it collapses. this weekend uk the industry is holding its first national cinema day, trying to attract audiences back with £3 tickets. but can the big screen survive in the age of big streaming? that is a question for karen who is a film journalist at the venice film festival at the moment. what do you make of all
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of this, is the a future for cinema?— of this, is the a future for cinema? there is always a future for _ cinema? there is always a future for cinema. - cinema? there is always a future for cinema. as i cinema? there is always a future for cinema. as long cinema? there is always a i future for cinema. as long as we got people that are used to going to the cinema. the problem with lockdown and other diversions is that people lose the habit of going to cinema with yourfamily and the habit of going to cinema with your family and with your friends, so pretty soon we are all thinking oh, we'rejust going to be watching cinematic movies, lawrence of arabia, big—screen movies, that we are going to watch them on a small screen. that is not necessarily true. cinema has survived television, vhs and streaming and it is continuing to survive. i have to say don't forget that netflix, despite having some wonderful openers here at venice, really some amazing films that i'm glad are going to be streamed and shown in the cinemas, netflix is losing customers and a shareprice value the moment, so it is not hunky—dory with them either. i it is not hunky-dory with them either. ., ., ., , either. i love that, hunky-dory from an american! _ either. i love that, hunky-dory from an american! thank i either. i love that, hunky-dory
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from an american! thank you | either. i love that, hunky-doryl from an american! thank you for the use of that word. netflix might not be doing well but i'll tell you who is doing a lot worse, cineworld. really close to bankruptcy. if that goes and as you say the chance of cinema surviving depends very much on people actually remembering to go to the cinema in the first place, what impact would it have if that chain appears?— appears? well, cineworld operates _ appears? well, cineworld operates 751 _ appears? well, cineworld operates 751 states i appears? well, cineworld operates 751 states and i appears? well, cineworld. operates 751 states and ten countries —— sites in ten countries. and it is looking at bankruptcy and i think what is going to happen there is i don't think it will disappear necessarily but i think it will splinter off into something else, for example i think the creditors will see their debt go into equity and the new owners might break it up so they might sell off regal in they might sell off regal in the us and picture health in the us and picture health in the uk and some of the cinemas in poland and eastern europe, they will want to sell those off as soon as possible but i'd just think means it will go
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smaller. it made some unfortunate choices of buying some propertyjust before lot down, just before the pandemic and nobody could have really foreseen that but debt has been the big undoing of streamers and exhibitors, so really the small operators are cinema operators like everyman and marcus and smaller streamers in fact are doing very well. i}!( fact are doing very well. 0k karen, thank _ fact are doing very well. 0k karen, thank you so much. it is really interesting to get your insights and my hope you enjoy the rest of the festival. let's have a quick look at the markets. this is how the asian markets. this is how the asian markets have been faring. has been a pretty tricky session, everyone is waiting for the us jobs data and what that then may mean for the federal reserve on the part of interest rates which therefore affects the impact of the dollar, the strong dollar which affects pretty much everyone across the world, and everyone else's currencies more negatively, not least of course the stirling
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here in the uk so this is how the us markets are at the moment and how they closed. you can always reach me on twitter. it is always a pleasure, i will see you soon. hello there. summer 2022 was certainly a memorable one and as we bring summer to a close, these are some of the standout headlines. england'sjoint warmest summer on record and the driest year so far for the uk since 1976. there is some rain in the forecast as we go through friday and towards the weekend, the weather is set to change. we have got this weather front here gathering pace into the north—west and this weather front�*s been bringing some showers. now, those showers may well linger for parts of england and wales, fairly isolated but nevertheless they will still be there, the best of the sunshine north wales, northern england and eastern scotland. showery outbreaks of rain gather into the far north—west of scotland and northern ireland, here temperatures perhaps at around 18 degrees the high but it will be another hot and humid afternoon for central and eastern england with temperatures
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into the high 20s. all change as we move into the weekend, for some there will be some thundery showers around, or longer spells of rain and it will turn increasingly windy for all. as an area of low pressure anchors itself out to the west, spiralling around that low in an anticlockwise direction, there's a series of weather fronts that's going to bring some rain, some of it fairly persistent, through northern ireland and south—west scotland throughout the weekend and that could have an impact. it will certainly have an impact on the feel of the weather. elsewhere, sunny spells and scattered showers, not a bad day to the far north of scotland, highs of 19 here but in the sunshine in east anglia if you dodge those showers you should see highs of 2a celsius. more wet weather in a similar position coming up through southwest england, wales and then sitting across northern ireland and south—west scotland. showers elsewhere, if you dodge those showers you still keep those blustery winds but it will still feel quite warm in the sunshine for parts of england and wales as temperatures are still likely to peak at highs of 25 degrees. disappointing under the cloud and the rain. the low pressure is not set
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to move very far very fast at all, into the early half of next week it anchors itself down to the south—west, the wind direction still coming from the south still relatively mild but still we could see some showers and those showers could be heavy and quite widespread for the early half of next week.
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good morning and welcome to breakfast with charlie stayt and naga munchetty. celebrating the life and legacy of our friend and colleague bill turnbull after his death at the age of 66. welcome to bbc breakfast with sian williams and bill turnbull. bill became one of the nation's most loved broadcasters, presenting breakfast for 15 years. we'll speak to his former sofa partners later on the show. we'll hear how bill's prostate cancer campaigning saved lives and encouraged thousands of men to come forward for testing. we'll hear about his real passions — his football team wycombe wanderers. i'm here at their ground.
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