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tv   BBC World News Outside Source  PBS  September 26, 2022 5:00pm-5:31pm PDT

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♪ ♪ narrator: funding for this presentation of this program is provided by... narrator: cfo. caregiver. eclipse chaser. a raymond james financial advisor tailors advice to help you live your life. life well planned. narrator: funding was also provided by, the freeman foundation. by judy and peter blum kovler foundation; pursuing solutions for america's neglected need
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and by contributions to this pbs station from viewers like you. thank you. announcer: and now, "bbc world news". ♪ >> hello, this is "outside source." global markets react uk prime minister's economic plano the cost of government borrowing sores and apparent plungers to an all-time low against the dollar. the bank of england says it will not hesitate to raise interest rates to stabilize the currency. in italy, giorgia meloni claims victory in the elections and look set to become the country's first firefight leader since mussolini. we have a special report on the struggle for survival on ukraine's front nine. >> we have been hearing incoming
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and outgoing shells, every 30 conds or so. it really does not stop. >> science fiction made reality as nasa applies to divert an asteroid by crashing a rocket into it. ♪ >> we start in the u.k., where the bank of england says it will not hesitate to take action to control inflation. after the pound slot to an all-time low against the dollar. take a look at this chart from this morning's asia trading. at one point, sterling fell to $1.03, the lowest since 1971, but has since recovered slightly. there is speculation the bank of england may announce an emergency hike in rates to control rising prices. for the moment, that has not happened. there is lots to impact with this. to understand what is happening
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today, we have to go back to friday, and to this announcement in parliament. >> i can announce today that we will cut the basic rate of income tax to 19 pence in april 2023, one your early. that means a tax cut for 31 million people in a few months time. >> that was the chancellor announcing the biggest tax cs since 1972, huge increases in borrowing. under the plan, he scrapped the uk's top rate of income tax and canceled the plan arise in corporate taxes in a bid to boost economic growth. that same day the pound fell to $1.09 against the dollar. on sunday, the chancellor said he would go even further. >> we have only been here 19 days. i want to see, over the next year, people retain more of their income. i believe the british people will drive this economy. >> that was sunday.
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overnight, the pound sock to its lowest level against the dollar, so markets are clearly rattled. >> we had a budget on friday where we saw a lot of tax cuts. unfortunately, that means the government would have to issue a lot more debt. that is something the market is finding it difficult to swallow. u.k. fundamentals right now, a lot of debt, recession, and high inflation. that is something investors do not like. we have a current account deficit which means we are reliant on foreign investors to fund that. >> the fall in the pound could affect three important areas, inflation, interest rates, and government borrowing. first, let's look at inflation. >> a great deal of what we buy from the fuel in our cars to the close that we wear to the food that we eat comes from abroad. when thealue of the pound goes down, the cost of those imports goes up.
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that means prices goes higher and the pound in your pocket will not go as far. >> a week or pound could also impact energy prices at a time when energy bills are already at the highest level in 50 years. >> hire prices of imported goods, and that includes energy prices. the government is spending some 60 billion pounds over the next six months it anticipates subsidizing engy prices. it will cost more to subsidize them if the pound is weaker against the dollar. wholesale energy is priced in dollars. >> next let's look at interest rates. these are set by the bank of england which is independent of the government. last year it raise the cost of borrowing. now it is saying it will not hesitate to lift it further. here is a former deputy of the bank of england on his concerns. >> i would be concerned. the bank and the government have indicated that they are going to
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take their next decision in november and publish forecasts and so on at that point. and the worry is they may need to take action sooner. >> next, let's hear from andy again on how much interest rates are likely to go up by and what that would mean. if you look at what's happened to interest rate recently, currently 2.25%, after going up have a percentage point last week. on the markets now they are saying, as we heard, they will not be able to wait until november. the markets think an emergency interest rate will be necessary. by november they will be up to 4%, double what they are now. then by december, 5%. later on, 6% by next june. these are really sharp rises in interest rates. implications for people with variable-rate mortgages, people coming off of a fixed rate deal, but also indications for monetary rate policy.
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you hit the brakes and that slows down economic growth. >> downing street said it will not comment on the fall of the pound and says it is a matter for the independent bank of england. the finance minister is not commenting either. >> wt are you going to do about the turmo in the markets thisorning, sir? >> i will not make any comment now. >> what conversation are you having with the bank of england, sir? >> in a statement, the bank of england said the bank is monitoring developments in financial markets very closely in light of the significant repricing of financial assets. the re of monetary policy is to ensure demand does not get ahead of supply in a way that leads to more inflation over the medium-term. the mpc will not hesitate to change its rates by as much as needed to the 2% target sustainably in the medium-term. i spoke to a market analyst
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about her assessment of the situation. >> certainly, there has been real nervousness across financial markets because of this worry, because these tax policies, it means they are inflationary, will push up demand in the economy. that will force the bank of england to increase interest rates much more sharply. that is causing real jitters across the housing market in particular. housebuilding shares have fallen back. there are real worries about the number of mortgage holrs who are on two-your fixed deals that will run out next year. actually, they took those mortgages out when rates were at 0.1%. they are forecast to shoot up to close to 6%. you can see how pnful that could be. it could be that some of those people, around one in five, may
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be refused fresh mortgages at those lower rates. they would have to pay more anyway because they do not meet affordability criteria. that has caused a real worry as far as the housing market is concerned. fears it could lead to a much sharper downturn than the correction expected. >> the key thing that people may not understand, why is it that government policies are so inflationary, pushing prices up, yet, the bank of england's main b is to keep inflation at 2%. someone is pushing and someone is pulling. that does not seem like a good way to run the economy, does it? >> it is like an economic tug-of-war which is taking place right now between the government and the bank of england. the government's agenda is all about growth. it believes that by cutting tax, putting more money into people's pockets, they spend more, tax
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cu for the wealthy trickle down until everybody boosts growth. the problem is, if you have more demand in the economy, that will fuel inflation, and that is exactly what the bank of england is trying to reign in by pushing up interest rates. we have already seen those seven successive rate rises. because the government is so intent on stimulating this demand, it means the bank of england are just going to have to put up interest rates even more than they ordinarily would have done. that has what has rattled the marketand the fact that these tax cuts are unfunded, will add to the government's debt pile. also if inflation goes higher, it makes paying back that debt more expensive because a lot of debt is inflation linked. you can see why there is nervousness around. ♪
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heavy fighting is continuing in ukraine's eastern donbass region which russian forces have been trying to take four months, but ukrainian troops have been making gains in recent weeks. getting full control remains president putin's stated aim in ukraine. our national correspondent and journalist report where residents endure constant russian shelling and the destruction of their homes. i should warn you, her report obtained some distressing images. >> inside a city under relentless attack. this is -- pounded by russian airstrikes and showing -- shelling. ukrainian forces still hold the city but the russians are at the eastern edge. it is hard for us, she says, one
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of the few venturing out. have you thought about leaving? >> i don't want to. this is my homeland, she says. i wish you well, she adds. others are desperate to go. but facing a dangerous weight -- wait. irina flinches at this all-too-familiar sound. her 14-year-old daughter is the main reason she wants to get away from her birthplace. which is now a battleground. as we wait with them, we lose count of the shells.
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what a memory for a teenager to take awafrom home. it is easy to see and hear what people need to get away from. in the last few minutes, we have be hearing incoming and outgoing shells every 30 conds or so. it really does nottop. this city is in the center of a fierce fight now between russian forces and ukrainian forces. everything is ok, irina says, trying to reassure. it is very hard to go, she tells me. it is only because of the war. the main thing is to save my daughter's life and to take our cat and kittens so that we all survived. rushing into get them out, a volunteewith a van.
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he has been doing this for months, evacuating frontline areas. >> i fee happy when i see smiles on their faces. i have heard things. that is why i am here. it is my main mission, my life for these people. >> you are risking your life every day. >> i think it is usual for me, usual for any ukrainian, all ukrainians. >> loading up the essentials. she has the pet carrier and irina grabs the final bags. they are beginning their journey to the relative safety of the capital kiev. nearby, we come across a victim of the warning shelling.
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there is no let up. for over an hour, his body cannot be moved. the living keep walking. his sister in red can only take cover. andrey spent his life saving others. he worked as an ambulance driver. as russia tries toake this city, it appears ready to destroy it, a pattern we have read in the ruins before. shell, kl, repeat. the russian army way. >> stay with us on "outside source." science-fiction made reality as nasa plans to divert an asteroid
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by crashing a rocket into it. ♪ >> super typhoon noru has ripped through parts of the philippines, flooding homes and leaving millions without electricy. these drone pictures show you the scale of devastation. our correspondent is in -- the red cross had a shelter set up right across the country as this super typhoon crashed into the philippines. many were put up in small tents, churches, community centers. but as they woke up this morning, this was the result. this is the main road to san miguel. as you can see, many people are out of their houses, spending time on the side of the road. they are sharing food, information. people have gone to relatives houses. i have been to some of the other
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neighborhoods where we have had to wade through chest deep water. many people are on the roofs, passing throto one another. people say that is how they will have to live until these floodwaters recede. ♪ >> this is "outside source," live from the bbc room in london. britain's central bank said it is willing to hike interest rates to control inflation following a slump in the pound due to concerns about government borrowing. now, italy's far right leader giorgia meloni is on course to become the country's first female prime minister. she is widely expected to form italy's most right-wing government since world war ii. there she is claiming victory. >> italy has chosen us. it's important to understand that if we are called to govern
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this nation, we will do it for all italians, uniting the people. >> her party is set to win 26% of the vote, a big jump from the 4% the party received in the last general election. however, it is not enough for her to form a government on her own. that is where she will need the support of her allies, matteo selby any's far right week, and silvio berlusconi's center-right. they both got less than 10% of the vote. ms. meloni's closest rival was enrico letta. his party got 19% of the vot, while the populis five-star movement got about 15%. mr. letta has since announced that he will step down as party leer. also in the party -- >> this was a failure of the pro-european camp that failed to
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unite. there is a blame game going on now between opposition parties. we should focus on uniting. >> the results of the election marked a return of silvio berlusconi, nine years after he was kicked out for fraud. >> everybody will have some influence on anybody else within the coalition, as it has always been with different balances for 25 years. the coalition of center-right rules many regions today in central italy and has a long history of work. >> there is a concern about her party's links to fascism. >> she says she has jettisoned fascism, has consigned fascism to the history of italy, but there are those who believe it is not so simple. there are the echoes of italy's very dark past that is still
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pervading parts of her party. she described herself as a modern conservative, anti-lgbt, wants a naval blockade on libya to stop migrant boats. >> giorgia meloni's victory has also raised fears among women's rights activists. there is concern among minority religious groups. so what do italians think about their prospective new leader? jessica parker is in the northern city of verona. >> from the point of view of civil rights, women's rights, human rights, i don't think she is very open. >> i am happy because this is a change. we will see. it's also important that for the first time we may have a woman as prime minister of italy. that is something new. >> and italy, history is all around you. but if today is an historic one,
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many voters do not seem actually that excited. they are worn down by the volatility of italian politics. cynical, too, about the promises that politicians make. >> how could this potential new government compared to that of the outgoing prime minister? >> completely different. mario draghi was not an elected official. he was a technocra he was put there to solve italy's financial crisis. he was seen by brussels as a very stable, reliable, pro-european leader. giorgia meloni is different, she is from the far right. as you mentioned, if she becomes italy's next prime minister, she will form a very right-wing coalition, the most to the right since world war ii. there are people in brussels, leaders, who are concerned about
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some of her policies. >> what do we know about her policies? what do we know about what she has won this many votes based on? >> if you look at her manifesto the brothers of italy have had this manifesto. it is quite vague. we have never really seen them out in government. they have always been in the opposition. what we know about her is that she is a ver firm, hard line on illegal immigration. she says it is a matter of national security. she is a euro skeptic. in the past she did advocate for italy to leave the euro. also impornt is her social conservatism. giorgia meloni says she is in favor of what she calls mother and father. she is against gay marriage and adoption. is a big part of her campaign. >> she will also have to
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potentially work with coalition partners. are there areas where things may become difficult for this potential coalition? >> we will have to wait and see. they have similarities but also big differences. one that has emerged a few days before the vote is the position on russia and the war in ukraine. matteo selby any has an vladimir putin for a long time. famously years ago he was photographed with a t-shirt with putin's face on it. giorgia meloni is a big supporter of sendingeapons to ukraine and sanctions. this is something the coalition might be clashing on. >> silvio berlusconi, a return to the senate for him. what does this mean? >> the political comeback he has been trying to achieve. he has been prime minister of italy for a long time. in the last few years he became known for his parties.
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he is also a convicted crimina tax fraud and bribery. for him, this represents a big political comeback and want to work closely with baloney to keep his position. >> now to a big story that is straight out oa sci-fi movie. in the next few hours, nasa is planning to crash a spacecraft into an asteroid to change its course. the space rock does not pose any danger to earth, but the mission will test whether one could be diverted if it were heading to our planet. our science editor has the details. >> it is a cataclysmic scenario, an asteroid heading for our planet wh the potential for mass devastation. it has happened before. a space rock wiped out the dinosaur66 million years ago. but now nasa is testing a way to
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stop any future threats. in just a few hours, a spacecraft called dart will crash into an asteroid. this space rock poses no threat but it is a test to show how we can deal with one on a collision course with earth. >> we are not looking to destroy an asteroid, which is tremendously difficult. we are just looking to nudge hit early enough that it misses, and that is how we defend the planet against this natural hazard. >> the spacecraft launched at the end of last year and has traveled nearly 7 million miles. now, it is almost at its destination. the target is a twin asteroid system. a larger space rock called didymos is orbited by a smaller space rock called dimporhos, 150 meters across. the spacecraft traveling at
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14,000 miles per hour crashes into dimporhos, giving the asteroid a kick. it changes the speed by just a fraction, about a millimeter per second. but this is enough to alter its orbit. scientists can monitor this from earth to see if it has worked. thanks to the spacecraft's onboard cameras, we can watch the crash as it happens. >> this is part of the reason we need to move beyond doing just tests in the lab or running models on our computers, but doing this on an actual asteroid of the relevant size to see how these small worlds really react to a deflection technique like this. >> the mission will be a first step in finding a solution, helping us to protect our planet should a real threat come our way. >> you can get more on that and all the stories you been watching "outse source" on our website,
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you have been watching "outside source" on the bbc. bye bye from me. narrator: funding for this presentation of this program is provided by... narrator: financial services firm, raymond james. narrator: funding was also provided by, the freeman foundation. by judy and peter blum kovler foundation; pursuing solutions for america's neglected needs. and by contributions to this pbstation from viewers like you. thank you. ♪ ♪ narrator: you're watching pbs. ♪ da-da-da-duh-da-da-da♪ ♪ da-da-da-da-da-da ♪♪
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♪ ♪ narrator: funding for this presentation of this program is provided by narrator: cfo. caregiver. eclipse chaser. a raymond james financial advisor tailors advice to help you live your life. life well planne narrator: fuing was also provided by, the freeman foundation. by judy d peter blum kovler foundation; pursuing solutions for america's neglected needs.


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