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tv   World Business Report  BBC News  November 2, 2022 5:30am-6:00am GMT

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this is bbc news with the latest business headlines for viewers in the uk and around the world. i'm sally bundock. all eyes on the fed as it ponders how high to push interest rates. a 75 basis point rise would be the fourth such hike in a row. after 13 years of quantitative easing, the bank of england makes history with quantitative tightening. what does it mean for the british economy? tough times for the travel trader trivago — its revenues up, but the challenges are legion. we'll hear from the ceo. and how short—term economic pressures are hurting global progress towards climate goals.
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hello and welcome to audiences in the uk and around the world. we begin in the us where the central bank is expected to increase interest rates by another 75 basis points today which would be the fourth consecutive increase of this size. many are hoping for signs the federal reserve may soften its approach in the months ahead with markets anticipating a 0.5% rate rise in december. so what's different within the us economy that would lead the fed to change its current course? here's michelle fleury. since march the federal chair hiked the rate by three
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percentage points, in so doing caused more expensive loans on everything, from houses to cars and credit cards, so far they have done so without any damaging slowdown in job have done so without any damaging slowdown injob or growth —— wealth creation. the trouble is there is no sign of a living rolling off with consumer prices, inflation still high at over 8% and still the fed has focused on. and until it sees inflation coming back on it looks like the reserve keep making life harder for american borrowers, and keep running the risk of putting people out of work, tipping the economy into recession. well, let's talk about that risk now with ed price — an economist and principal at ergo intelligence. what are your thoughts, i'm assuming are with the majority that believe we are looking at a 75 basis point rise today? at a 75 basis point rise today? git least i wouldn't be surprised
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by moore, 75 looks about right, i was listening to earlier report and what would they need to see in order not to do that something we should touch on, it is tricky, if the fed did see something in the data it didn't like or did like in terms of how it will not go as high as 70 five might not go as high as 70 five might not go as high as 70 five might not go as high as 70 five simply because it doesn't want to lose the credibility that has built up so far with hiking stop that's where you believe we are headed today. where you believe we are headed toda . l, g , where you believe we are headed toda . . ~ , ., today. talk us through the im act today. talk us through the impact that _ today. talk us through the impact that might - today. talk us through the impact that might have, . today. talk us through the impact that might have, itj today. talk us through the l impact that might have, it is the last of a run of four pie increases with interest rates and now we're looking at and lower? t and now we're looking at and lower? ., �* lower? i wouldn't say so, i think the _ lower? i wouldn't say so, i think the fed _ lower? i wouldn't say so, i think the fed has - lower? i wouldn't say so, i think the fed has to - lower? i wouldn't say so, i- think the fed has to continue, i think it was behind the curve, looking at inflation now it has become embittered, it's notjust it has become embittered, it's not just the it has become embittered, it's notjust the number that is a problem, consumer inflation at eight point two is steady but l, eight point two is steady but i, court nation 6.6, the real problem is notjust the number
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but whether or not consumers expect the number to be higher, so the fed does have to do something more in the order of 5% total hikes. hi something more in the order of 596 total hikes.— 596 total hikes. if you are riaht 596 total hikes. if you are right and _ 596 total hikes. if you are right and there _ 596 total hikes. if you are right and there are - 596 total hikes. if you are - right and there are economists who disagree in markets pricing and lower rates going forward, if you are correct you believe 2023 we are looking at the us economy in recession? absolutely i'm afraid to say my bet is now the fed will push the us into a policy recession, policy will slow down the economy down to say there is a recession in the united states and that is bad news for the rest of well because the us is world's largest economy. what will that mean _ world's largest economy. what will that mean in _ world's largest economy. what will that mean in terms - world's largest economy. what will that mean in terms of- world's largest economy. what will that mean in terms of jobs| will that mean in terms ofjobs and also we have the mid—term election starting next week, this is a very political issue right now, americans are hurt in their pockets it affects how they vote? he
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in their pockets it affects how they vote?— in their pockets it affects how the vote? ., , they vote? he does, if you look at what joe _ they vote? he does, if you look at what joe biden _ they vote? he does, if you look at what joe biden has _ they vote? he does, if you look at what joe biden has tried - they vote? he does, if you look at what joe biden has tried to i at whatjoe biden has tried to do, tried to go the old—fashioned route, if you throw money at a problem be the midterms you should get the results you want which is more votes, unfortunately there is another narrative that the inflation is his fault, it's not quite that simple because we see international supply chain constraints and other problems including a late cycle fiscal stimulus from trunk, but i think you are right at this point before the midterms this level of inflation is not good for the economy. interesting to net our for the economy. interesting to get your take — for the economy. interesting to get your take stop _ for the economy. interesting to get your take stop when - for the economy. interesting to get your take stop when we - for the economy. interesting to get your take stop when we get the news from the fed we will make sure you know as well. staying with central banks — it's the turn of the bank of england to decide on its next move when it comes to interest rates tomorrow but it's grabbing headlines today because it
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has started to unwind it's so—called qe programme. quantities easing was a term we all heard again and again following the global financial crisis in 2008 when central banks bought government debt in order to push down interest rates and avoid a credit crunch. with rising inflation for the bank of england now it's all about quantitative tightening. to make sense of this and what it means for our money we'rejoined by sunaina sinha haldea — global head of private capital at raymond james. how will this affect artists and our money. talk us through what the central bank is doing in the uk?— what the central bank is doing in the uk? ~ ., g, in the uk? bank of england has become the _ in the uk? bank of england has become the first _ in the uk? bank of england has become the first central- in the uk? bank of england has become the first central bank. become the first central bank to actively sell down the bonds that had bought during the crisis periods, bought them during brexit, the pandemic and after the 2008 financial crisis, the bank of england even sold $80 billion worth of and got good demands for those bonds yesterday becoming the first central bank to do so all
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others have signalled they will try to do that coming months. . in layman 's terms what does in layman �*s terms what does this mean, is it good news, a sign we are no longer needing quantitative easing at this point or is it a sign they are having to take the steps to try and draw down on patient? it is and draw down on patient? it is and draw down on patient? it is a sin of and draw down on patient? it 3 a sign of functioning markets and that is good news, remember, couple of weeks ago the bank of england had to step in with more quantitative easing at the long end of the uk gilt curve because that market broke after the so—called mini budget when all the pension plans struggled to make that market struggle for themselves, it is very good you suggested were able to prove they can sell and it is the short term of the uk government bond curve is functioning well with good demand for uk paper. however it is being done to bring down inflation, to make sure the interest rate rises
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that the changes going through are effective.— are effective. the bank of england _ are effective. the bank of england "s _ are effective. the bank of england 's meeting - are effective. the bank of - england 's meeting tomorrow england �*s meeting tomorrow what do you think it will decide to do and you said at raymond james you think interest rates will peak in the uk? ~ interest rates will peak in the uk? . ., interest rates will peak in the uk? ~ ., ., ., , .,~ uk? we are not quite at peak levels in the _ uk? we are not quite at peak levels in the uk _ uk? we are not quite at peak levels in the uk or— uk? we are not quite at peak levels in the uk or any - uk? we are not quite at peak levels in the uk or any other| levels in the uk or any other part of the world because inflation remains persistently high, we are at double digits in the uk, and england you will see a strong single from the bank of england, remember they faced heat from not giving an emergency rate rise during the liz truss mini budget fiasco, it will be under pressure to deliver that big rate rise tomorrow and a strong signal to markers as it is serious about inflation control, all central bank are late to control inflation, it is very important to give a strong signal with a big rate rise tomorrow. that is something _ big rate rise tomorrow. that is something we _ big rate rise tomorrow. that is something we will _ big rate rise tomorrow. that is something we will be - big rate rise tomorrow. that is something we will be covering | something we will be covering here tomorrow morning as well.
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the world's biggest oil company — saudi aramco has reported bumper results of $42. 4 billion in net income in its third quarter. the oil giant says it will pay out a big dividend or nearly 19 billion dollars, mostly to the saudi government. it's the latest in a series of oil companies posting big profits as a consequence of high oil prices driven up by the ongoing war in ukraine. in britain, the cost of making a cup of tea went up significantly as food prices continued to rise at record rates in october. the british retail consortium said costs for tea bags, milk and sugar all rose — that's caused by higher costs for ingredients and energy, as well as worker shortages. businesses in the north wales island of ynys mon are calling for compensation for lost earnings due to the closure of the menai bridge. the local member of parliament says businesses, which rely heavily on incoming
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visitors and general access, "have seen their takings plummet". the bridge was closed for urgent safety work almost two weeks ago and could stay shut for 16 weeks. the global pandemic proved to be incredibly challenging for the travel industry and now it faces a cost of living crisis and soaring inflation. many are asking how will this impact travel and tourism in the year ahead? the global hotel search platform trivago has released its third quarter results, which show its revenues up almost a third on last year to 184 million euros. but it lost 73 million euros — due mainly to impairments related to macroeconomic conditions such as rising interest rates, increased inflation and more business uncertainty. well, we have the chief executive of trivago with us now to talk through the challenges. axel hefer, a warm welcome to the programme.
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just tell us in more detail how trivago is, we have your result, how healthy argue given the challenges? t result, how healthy argue given the challenges?— the challenges? i mean you are sot on, the challenges? i mean you are spot on. the — the challenges? i mean you are spot on, the zah _ the challenges? i mean you are spot on, the zah i _ the challenges? i mean you are spot on, the zah i was - the challenges? i mean you are spot on, the zah i was very - spot on, the zah i was very strong and we have seen everywhere in the western world people returning to travel, visiting friends, going on business trips etc, so we are very happy with the results, revenues were up at the highest profitability ever, in terms of that. ~ ., ., ., that. we are coming out of the ulobal that. we are coming out of the global pandemic, _ that. we are coming out of the global pandemic, how- that. we are coming out of the global pandemic, how are - that. we are coming out of the global pandemic, how are you | global pandemic, how are you impacted by that, and how financially sound are you off the back of that? the pandemic was obviously _ the back of that? the pandemic was obviously very _ the back of that? the pandemic was obviously very hard - the back of that? the pandemic was obviously very hard for- the back of that? the pandemic was obviously very hard for any| was obviously very hard for any travel business, we go back to 2020, we dropped to i% of our normal revenues beginning of april. the good thing is, we
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see through the pandemic that travel is really a basic need, as soon as you could travel people wanted to travel and just get a break get out of the lot downs, out of their home office and remote work. i don't think that will change, even with increasing prices for pretty much everything, we do believe people will continue to travel. ., , . ., ., travel. people will continue to travel, travel. people will continue to travel. we _ travel. people will continue to travel, we have _ travel. people will continue to travel, we have seen - travel. people will continue to travel, we have seen that - travel, we have seen that despite the horrific disruption this summer europe, at airports people determined to get there break. foryou, people determined to get there break. for you, trivago in months and years ahead, do you think you are in a good position because actually a cost of living crisis means we have to be more on it in terms of how much our holidays will cost, we have to come places such as your website to check rates, check we are getting the best deals?— rates, check we are getting the best deals? absolutely we think what will happen _ best deals? absolutely we think what will happen people - best deals? absolutely we think what will happen people well. best deals? absolutely we think what will happen people well in | what will happen people well in absolute terms spend even more next year on travel, but the
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volume will come down and what does that mean, you will try to cut your vacation short by a day, try to save money by going for cheaper locations and you will just for cheaper locations and you willjust compare prices a lot more and that's exactly what we do, we are confident that there is something positive in the current situation for us as a business. current situation for us as a business-— current situation for us as a business. ., ., , ., ,., ., business. from what you said to me then in _ business. from what you said to me then in terms _ business. from what you said to me then in terms of _ business. from what you said to me then in terms of your- me then in terms of your preparations for the month and years ahead, you are not thinking efficiencies, or are you? where are you out, you said to those investors who want to know where trivago is in the year ahead? the pandemic was for any _ in the year ahead? the pandemic was for any travel _ in the year ahead? the pandemic was for any travel business - was for any travel business efficiency programme because you had to reduce your cost and become a lot more sessions, to really survive in times we had a few month of travel activity and then adopt down right after, and basically, a
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rollercoaster ride in terms of revenues and emotions. to me travel businesses are well prepared and in terms of product offering, the core of what we do is help people to save money, i we are well prepared, for sure. so think travel will _ prepared, for sure. so think travel will remain _ prepared, for sure. so think travel will remain priority i prepared, for sure. so think| travel will remain priority for households who are really counting the pennies, for some, across europe which is your main area of operation, it's a really tough time ahead? brute really tough time ahead? we think pretty _ really tough time ahead? - think pretty much everybody who can afford to go will try to get a break, and perhaps a little shorter or cheaper destination. we see already with our data some destinations are becoming more popular, morocco at the top of the list, and that is what people will do they will find a way to get a break, even at lower budgets.
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thank you for your time. the chief executive of trivago. stay with us on bbc news. still to come: i was always waiting for a viral moment, right from the beginning. did not happen. in ceo secrets, mob's founder ben lebus explains why sometimes it's better not to go viral. the israeli prime minister, yitzhak rabin, the architect of the middle east peace process, has been assassinated. a 27—year—old jewish man has been arrested and an extremist jewish organisation has claimed responsibility for the killing. at polling booths throughout the country, they voted on a historic day for australia. they are being held somewhere inside the compound, _
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anywhere in the universe, and itjust seems to keep on going. tonight, we prove once more or the scale of our wealth, but from the enduring power of our ideals. this is bbc world news. the latest headlines: north korea's test—launching of multiple missiles, including one that crossed the maritime border with the south. exit polls in israel's election suggest former prime minister benjamin netanyu is set for a record sixth term. but his likud party would share power with the far—right.
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the taiwanese tech giant, foxconn, has quadrupled the daily working bonus for staff working at its huge zhengzhou plant in china — known as �*iphone city'. that's to quell rising discontent over harsh covid restrictions, which led to scores of workers escaping over external fences at the plant in recent days. 200,000 people work at the factory, which produces the majority of iphones shipments worldwide. joining me now is katie silverfrom singapore. in real terms, how much is the bonus worth to workers?- bonus worth to workers? each day there _ bonus worth to workers? each day there are _ bonus worth to workers? each day there are now _ bonus worth to workers? each day there are now able - bonus worth to workers? each day there are now able to - bonus worth to workers? eam day there are now able to earn about 55 us dollars, and able to get bonuses for forgoing leave. it's a significant proportion, as you say, about four times. as you mentioned, it's also about easing discontent and return workers. to quote the company, it is to thank fellow employees for
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their persistence. and that's because there is a lot of discontent. 0ne worker told reuters, the newswire, they are facing miserable conditions and at times there hasn't been enough food or water to drink. i made since the other day they've been eating in the dormitories, confined there, to stave off the outbreak. there were scenes of employees are fleeing and many taking to social media to complain. the company makes about 70% of iphones globally. mostly at this plan. the hearing that as a result of much of the production particularly in november coming from this plant could slump in the order about 30%, which is not necessarily speu 30%, which is not necessarily spell good news in the lead up to christmas.— to christmas. no, absolutely. thank you. — to christmas. no, absolutely. thank you, katie. _ to christmas. no, absolutely. thank you, katie. we'll- to christmas. no, absolutely. thank you, katie. we'll keep | to christmas. no, absolutely. | thank you, katie. we'll keep a close eye on that story. let's bring you more on the cost of energy feeling inflation around the world. short term economic pressures and the rising cost of energy are stopping countries achieving goals aimed at to reducing global warming — that's the latest findings
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from the energy transition commission. its new report reveals that to have even a 50% chance of limiting global warming to 1.5 degrees celsuis, cop27 must trigger more action by governments. it also finds that the cost of phasing out coal, ending deforestation, and reducing carbon dioxide levels could hit $300 billion per year. that's a huge amount of money and needs to be found. joining me now is faustine delasalle, vice—chair of the energy transitions commission. you publish this report today, cop27 starts you publish this report today, c0 p27 starts on you publish this report today, cop27 starts on sunday in egypt. is it yet another stark warning for governments to take on's absolutely.— on's absolutely. there has been rouress on's absolutely. there has been progress in _ on's absolutely. there has been progress in the _ on's absolutely. there has been progress in the past _ on's absolutely. there has been progress in the past few - on's absolutely. there has been progress in the past few years l progress in the past few years but the has created an introductory and we now need
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governments and corporate to go from that invitation. it is governments and corporate to go from that invitation.— from that invitation. it is a hu . e from that invitation. it is a huge challenge for- from that invitation. it is a huge challenge for every l huge challenge for every government worldwide and i remember cop26 last year in glasgow, just the pain the delegates and global leaders went through to hit commitments and reach targets, we even have and reach targets, we even have a chair of the event almost in tears. what is your expectation for next week? t tears. what is your expectation for next week?— for next week? i would say my expectations — for next week? i would say my expectations are _ for next week? i would say my expectations are quite - for next week? i would say my expectations are quite low, . for next week? i would say my expectations are quite low, to| expectations are quite low, to be honest. i hope to be surprised in the positive way. what we think is the big difference compared to last year is that the energy crisis has also highlighted that renewable energy can be cost competitive compared to fossil fuels increasingly expensive. hopefully they can provide great momentum for investment for renewables and energy
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efficiency. 0ne for renewables and energy efficiency. one of the key dimensions but to think about is in africa cup, not only cost over damages to the table but how do help low income countries accelerate their own conditions and that requires public finance.— conditions and that requires public finance. yes, and this is a problem. _ public finance. yes, and this is a problem. it _ public finance. yes, and this is a problem. it always - public finance. yes, and this | is a problem. it always comes down to money. your calculation of the cost of moving out of fossil fuels, deforestation, etc, is a huge number. where do you expect that to come from? there are three different categories of things we need to do. there is a whole bunch of stuff that is actually in the money right now, investing in renewables now is also good for business. all of the investment for renewables can come from climate capital, the same private capital that has historically been investing in fossil fuels.
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historically been investing in fossilfuels. the historically been investing in fossil fuels. the second category like industry, carbonisation of shipping, not yet in the money that could be in the money pretty close in the technologies that we need to invest in, reducing costs. as there are stronger partnerships between industry (crosstalk). we always struggle to be in the money like in deforestation and that's what we need public finance most permanently. faustine delasalle, thank you being in the programme from the energy transitions commission. apologies if he struggled with the sound. we will see what we can do on that going forward. ben lebus founded the online cooking platform mob while he was at university after he struggled to find recipes that were affordable and catered to a student kitchen, where the cupboards are pretty bare. fast forward six years, and the company has millions of followers and expected sales
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of four millon pounds, or $4.6 million this year. we spoke to ben for our ceo secrets series, and he shares why going viral might not be the best recipe for success. i think it cost him 30 times with links to the recipes, knowing with potentially get on tv, never read, neverapply knowing with potentially get on tv, never read, never apply to you, i'm sure didn't say. i was always waiting for a viral moment right from the beginning, did not happen. it meant there was much more slower study, meant there was much more slowerstudy, gradual meant there was much more slower study, gradual builds. now with five cookbooks and the insights we have, people might look at that and say it was no bread but it wasn't. what we have done in thatjourney has built a really loyal, committed audience that really deeply understand what we do and what
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we are about. the downside potentially of more of a viral moment is you have that kind of spike and it is maintaining that. sometimes can be quite difficult. talent has always been at the forefront of our content, something that set us apart from bbc good food or delicious magazine. there is that human connection with mob. wally been going for six years and therapy recipes that we got slightly wrong, there is a core that has run throughout and has been consistent. that is something that people have a connection with. ., ., ,, that people have a connection with. ., ., ~' , with. he looks like he is enjoying _ with. he looks like he is enjoying the _ with. he looks like he is enjoying the food, - with. he looks like he is enjoying the food, a - with. he looks like he is i enjoying the food, a good thing. let's three financial markets. within the bounds that markets. within the bounds that markets in hong kong and mainland china, on speculation, but in china they may be
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playing a reopening from strict covid curves in march. it will quickly look at us markets, all markets globally will be waiting for that fair decision. it happens later today. you're up it happens later today. you're up to date. see you soon. hello. well, the met office have confirmed that it was another very warm month across the country, and october in england was the fourth—warmest october on record. but quite alarmingly, we're now seeing some of the warmest conditions on record, taking the year as a whole to date. as for rainfall, well, we needed the rain, but it's only northern ireland which was significantly above average. but for the first few days of november, our rainfall accumulation chart shows that all of us will see some pretty wet weather. the darker colours in the south show some welcome rain to come here. but it's notjust wet, some windy weather, and especially during the next 24 hours. widespread gales across the country, and in this hatched area, we could see potentially damaging and disruptive gusts of wind of 50—70mph, all tied in with this approaching and deepening area
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of low pressure. now, before it arrives, the little ridge there which indicates a quiet end to the night. a few mist and fog patches, a lot of dry weather, just a few showers in the south and the west, but a rather chilly start compared to what we've been used to — 2 or 3 degrees in some sheltered glens in scotland. lots of sunshine, though, through scotland, england, wales to begin with. northern ireland cloudy, already turning windy, increasingly wet through the morning, some heavy rain at times sliding into western scotland and through the afternoon to wales and western parts of england. much of eastern england, though, will stay dry until later in the day, with some sunny spells. temperatures here around 15, 16 degrees in the south—east, but it will feel cooler than that in the north and the west as those winds pick up. in fact, it's going to get windier as the day goes through. just an example of some of the gusts by mid—afternoon, 40, 50, close to 60mph, maybe a little bit more as we head into the evening. heavy rain sweeping across all of england. strongest winds overnight to take us into thursday across central and northern parts of scotland. winds easing a little bit later. and the clearer skies that some will see to the north and west
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into thursday morning, again down into single—figure temperatures. milder in the south—east. and this is where the big question mark for thursday will be. the weather front may just drag its heels, bringing bursts of rain northwards and eastwards as we go through thursday, east anglia, the south—east, and the channel islands. away from that, though, more likely to see sunny spells develop, a scattering of showers, some of those heavy towards the south and west, and the temperatures 10 to 13 degrees. feeling cool compared to what we've been used to, but that's where we should be for this stage in november and the sort of temperatures we'll see through friday and into the weekend. friday, the driest day of the week most widely. saturday, of course, bonfire night, rain will be pushing its way in, and some strong winds too. bye for now.
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good morning. welcome to breakfast with ben thompson and sally nugent. 0ur headlines today... police officers with criminal records and links to organised crime. a damning report says hundreds of recruits are joining the force when they should have failed vetting procedures. going to "where the people are." former health secretary matt hancock defends his decision to appear on i'm a celebrity. counter terrorism police are investigating the bombing of a migrant processing centre in kent. who will have to take higher taxes? the government warns of even tougher times ahead — as it looks to plug
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a £40 billlion hole in the national bank account. what might that mean for you? i'll take a look. in sport, tottenham's turnaround.

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