tv World Business Report BBC News September 22, 2021 5:30am-6:01am BST
this is bbc news with the latest business headlines for viewers in the uk and around the world. russia is supplying less gas to europe than before the coronavirus pandemic — the international energy agency calls on russia boost supplies for winter. where is the special relationship? the uk holds out for a stand alone trade deal with the us but forjoe biden, it's not a priority. a travel sector revolution — the boss of airbnb tells us how the pandemic has caused a seismic shift in the industry. and, bring out your wallets — we head to the monaco yacht show where the super—rich are gathered to find
their latest toy. the international energy agency has called on russia to send more gas to europe to help alleviate the energy crisis. the iea says russia is supplying less gas than before the pandemic, while still fullfilling its contractual obligations. traders and foreign officials have long accused rusia of restricting supplies. europe's benchmark power price has doubled this year to 100 euros per megawatt—hour, for the first time ever. think tank bruegel is predicting on an annual basis, this means europeans would pay 150 billion euros more for their electricity. dan eager is principal
analyst, european power at wood mackenzie. first of all, give us your take on the iea calling on russia to mmp on the iea calling on russia to ramp up its gas supplies to europe, your thoughts on that? yes, yes, thank you. that is certainly one of the issues at play. there are a few others in the mix and many of these coincidental factors that come together to give us a supply crunch in europe. in addition to the russian pipeline issue, there is also a boom in lng demand in asia and latin america, meaning there is much more supply being sucked out of europe ordinarily and the uk gas supply and the output to date is down on last year as a result of maintenance and project delays. a few other moving parts in the mix that our overall giving europe a supply crunch on the gas side
and thinking of the power sector as well, alongside the record gas prices, coal and carbon prices are at record heights and that is feeding into the high power prices. the price of c02 is 50 euros a time, more than double the level it was a year ago and the uk has a carbon price floor which adds a further 18 euros a ton premium on carbon mixing power sources in the uk, all of those things as you mention, wholesale power prices in the uk are now five times higher than they are a year ago and double that of neighbouring interconnected power markets such as france and belgium. in addition to this pricing premium can be largely explained by the high gas prices and high carbon prices but in particularfor the uk, its reliance on gas—fired generation is somewhat higher than other european markets. so far this year to give you at a
statistic, gas is accounting for 44% power slide and last week it contributed around half and one of the reasons for that is that alternative sources of lower cost power supplies have been lower, wind and solar continue to grow but the karma weather has seen that down about 50% on the five year average. about 5096 on the five year average-— about 5096 on the five year average. just very briefly if ou average. just very briefly if you will. — average. just very briefly if you will, how _ average. just very briefly if you will, how concerned i average. just very briefly if i you will, how concerned then argue about this winter for europe? argue about this winter for euro e? , , ., argue about this winter for euroe? , , ., ., .,, europe? 0k, yes, from a gas su -l europe? 0k, yes, from a gas supply point _ europe? 0k, yes, from a gas supply point of— europe? 0k, yes, from a gas supply point of view, - europe? 0k, yes, from a gas supply point of view, coming| supply point of view, coming into the winter with storage levels lower than usual, mainly off the back of last year with a cold snap and it carries some risk but we the uk production beginning to recover as me project come on stream and we have heard that the production from norway looks set to be boosted but the general feeling is supply could be tight if we
experience a cold snap again. on the palliser, on the one 0n the palliser, on the one hand, nuclear availability will increase —— on the one hand, and with norway coming online, there is some relief there but on the other hand, demand will increase into winter, september is only two—thirds the level we will see in terms of peak in power. will see in terms of peak in ower. j, .., will see in terms of peak in ower. a, u, power. appreciate your expertise- _ now to the us, where as you've been hearing the un general assembly is underway. borisjohnson is there and went with his agenda on what he'd like to broker in his meeting with the us president. trade was high on the list butjoe biden has downplayed the chances of a post—brexit free trade deal with the uk. the two leaders held talks at the white house and instead of a deal with the us alone there is talk of the uk negotiating entry into an existing trade arrangement between the us, canada and mexico. joining me now is swetha ramachandran,
investment manager, gam investments. good to see you again. give us your take on the situation. a trade deal or prising the uk into an existing trade deal with the us, mexico and canada, what would that look like? it’s what would that look like? it's no secret _ what would that look like? it's no secret that _ what would that look like? it�*s no secret that the uk has been seeking a free trade deal with the us for some time now but the us for some time now but the us for some time now but the us has forced them month agenda has been primarily domestic and the trade deal with the uk is not top of mind which is also what is coming out in the headlines. that said, even though the uk does not have a formal free trade deal with the us, there are about 100 sectorial arrangements that couple provisions in sectors such as insurance to say wine and spirits that trade could continue unimpeded once special
exemptions with the eu. an exemptions with the eu. an interesting scenario because on the one hand you have the white house thing is not a priority but at the same time downing street is at pains to say that they are looking for a standalone agreement. politically, this is important isn't it for the prime minister isn't it for the prime minister is to say that we have a trade deal with the us?— is to say that we have a trade deal with the us? dealwith the us? yes, the us is the uk's _ dealwith the us? yes, the us is the uk's largest _ dealwith the us? yes, the us is the uk's largest trading - is the uk's largest trading partner outside the eu and it is the fifth largest export market and they run a surplus in goods and services in trade with the uk so it's in the interests of both parties. covenant modelling — so that a free trade deal would be additive of 20% of gdp which although meaningful is perhaps not an immediate game—changer which adjust the uk stands and waiting for the right trade deal rather than any trade deal, could be proven right in hindsight. deal, could be proven right in hindsight-— hindsight. thank you for your thoughts- —
hindsight. thank you for your thoughts. there _ hindsight. thank you for your thoughts. there is _ hindsight. thank you for your thoughts. there is more - hindsight. thank you for your. thoughts. there is more detail on that story on the website. let's get some of the day's other news: the uk government says it has secured an agreement with the fertiliser company cf industries which will allow one of its uk plants to resume operations for the next three weeks, this in a bid to protect commercial supplies of carbon dioxide. the company usually produces some 60% of the uk's c02, which is widely used in food and drink production, as well as in the civil nuclear industry and the nhs. china's evergrande will, according to media reports, make the interest payment on its shenzhen—traded bond on time on thursday. this is separate though, as we understand it, from the $8lim offshore bond payment which the firm is also due to make on thursday. still, the move is lifting sentiment on chinese markets, which have re—opened after short break, shares were about 1% lower on the open but are recovering a bit. hundreds of workers
protested outside ford's factory in india's western gujarat state on tuesday demanding that the plan to close the factory is scrapped or workers are provided with otherjobs. ford, which built its first factory in india in the 1990s, said earlier this month it planned to stop making cars in the country as it does not see itself making profit. china's president xi jinping says the country will stop building new coal—fired power projects abroad and will work with developing countries to support them to develop green and low carbon energy projects. he made the pledge, along with offering to provide more covid—19 vaccine doses to the rest of the world in his address to the united nations general assembly. 0ur asia business reporter katie silver has been following the story.
china has been under heavy diplomatic pressure to put an end to its cold supply and that would be because that would make it easier for the global emissions targets. agree to stop coal plants are led this year and china, which had been dubbed the last man standing has now followed suit. the pledges been welcomed by environmental leaders, the un secretary general as well as well is the us requirement with john kerry calling it a great contribution. addressing the elephant in the room, the ongoing tensions between the two largest economies, president 11 says china only comes with peaceful intentions. the chinese people has always celebrated and driven to pursue peace, friendship and harmony. china will never and will never bully others. china is always a builder of world peace and contributed to world development and defender of
world order and provider of public goods. china will continue to bring the world new opportunities through its development.— opportunities through its development. for his part, president _ development. for his part, president biden _ development. for his part, president biden in - development. for his part, president biden in his - development. for his part, | president biden in his debut address to the un told the assembly the united states is not seeking a new cold war. this is quite a change in rhetoric from an administration which has identified a rising and authoritarian china as the paramount challenge of the 21st century. president xi also said that china would aim to provide 2 billion covid—19 vaccine doses to the world by the end of this year. the chief executive of airbnb says how people travel and the travel industry has been changed forever by the pandemic. brian chesky predicts that as the travel sector recovers following the global pandemic it is also going through a revolution. he's been speaking to michelle fleury in new york. number one, business travel has been the primary driver of profits and revenue for the
travel industry. most of business travel is fundamentally altered forever because technology is replacing the need to get on the aeroplane. numbertwo, people aeroplane. number two, people don't aeroplane. numbertwo, people don't have to be back at the office and i certain date which means they can go on longer trips. notjust going for a few days or a week, they are going for a month, an entire summer and all we have to believe is that employees will not all force people to come back to the office five days a week. to know that everything has changed forever.- know that everything has changed forever. much of this is transitory? _ changed forever. much of this is transitory? if _ changed forever. much of this is transitory? if i _ changed forever. much of this is transitory? if i look - changed forever. much of this is transitory? if i look at - is transitory? if i look at going to a hotel right down in a pandemic i don't want to been a pandemic i don't want to been a lived duck with four other guests and i prefer to stay somewhere with —— stuck i and i prefer to stay somewhere like an airbnb property but what when the pandemic is over and amid staying in a hotel? the? amid staying in a hotel? they will always — amid staying in a hotel? they will always be _ amid staying in a hotel? they will always be there. - amid staying in a hotel? they will always be there. why - amid staying in a hotel? tie: will always be there. why are people going to hotels in the first place? business trips?
there was still be business trips but if you. the more we work from home, the more physically isolated we are, the more we actually desire is human connection with friends, family or others, that is the kind of travel people will be seeking in the future, travel based on connection. you have 'ust based on connection. you have just seen _ based on connection. you have just seen the — based on connection. you have just seen the biden _ just seen the biden administration ease restrictions on the profitable transatlantic route. what is to say that does not resume, that business travel that you talked about disappearing, some of it but that won't come back? i certainly hope that transatlantic travel comes back because that was more than half our business before the pandemic, that would help as a lock. i think it's more for leisure travel and business travel so there will be a basic shift from leisure travel —— business travel to leisure travel. stay with us on bbc news, still to come: bring out your wallets —
we head to the monaco yacht show where the super—rich are gathered to find their latest toy. benjohnson, the fastest man on earth, is flying home to canada in disgrace. all athletes should be clean going into the game. i'm just happy that justice is served. it is a simple fact that this morning these people were in their homes, tonight those homes have been burned down by serbian soldiers and police. all the taliban positions along here have been strengthened, presumably in case the americans invade. it's no use having a secret service which cannot preserve its own secrets against the world. and so, the british government has no option but to continue this action even after any adverse judgment in australia. concorde had crossed the atlantic faster than any plane ever before, breaking
the record by six minutes. this is bbc world news, the latest headlines: president biden promises a new era of rrelentless diplomacy instead of relentless war as he delivers his first presidential address to the un general assembly. a 5.8—magnitude earthquake strikes southern australia. tremors are felt in melbourne, canberra and sydney. the current crisis within supply chains and the energy sector has firms searching for ways to future proof their businesses. the impact of covid—19 has laid bare how complicated global supply chains are and the knock
on effect around the world when things go wrong. experts say the answer is quantum computing and they predict these super computers?are set to revolutionise the most complex problems, solving issues that are currently deemed impossible injust a matter of minutes. joining me now is carmen palacios—berraquero, quantum physicist, nu quantum. great to have you on the programme. itjust sounds so promising. expressly was supplied change. please explain. supplied change. please exlain. , , supplied change. please exlain. , ., ., explain. absolutely, thanks for havinu explain. absolutely, thanks for having me- _ explain. absolutely, thanks for having me. that's _ explain. absolutely, thanks for having me. that's really - explain. absolutely, thanks for having me. that's really start l having me. that's really start by saying that quantum computers are at a scale that is commercially useful to tackle these problems. when
they do come they will have a tremendous impact, a number of aspects which touch on their energy crisis and the supply chain crisis. an optimisation in large and complex supply chains, not only the supply chains, not only the supply chains but optimising and protecting the demands is one of the problems that quantum computers will be really excellent it. and when we say excellent, it means really able to tackle problems. it will be intractable.— to tackle problems. it will be intractable. it's kinda beyond our thinking. _ intractable. it's kinda beyond our thinking. the _ intractable. it's kinda beyond our thinking. the idea - intractable. it's kinda beyond our thinking. the idea is - intractable. it's kinda beyondj our thinking. the idea is then that business leaders, chief executives can make good choices about what to do. absolutely. quantum computers
use quantum mechanics to compute. this means an exponential increase in computational power for certain problems. some them to do with supply chains, but perhaps the most exciting one is to do with the simulation of new molecules, new materials, computational chemistry. imilli computational chemistry. will this shift because huge disruption in the global labour market. by that i mean will humans be replaced? it’s market. by that i mean will humans be replaced? it's an interesting _ humans be replaced? it's an interesting question. - humans be replaced? it's an interesting question. i - humans be replaced? it's an interesting question. i think| interesting question. i think we are still some way away, the quantum industry is still nascent, even though it is taking shape, but 2015, it was still dominated by academia and it's only been since 2018 that
there has been a doubling of investment going into this industry, so we are still forming, finding ourfeet and who knows what will happen? what are you most excited about when it comes to the attention of quantum computing —— potential. of quantum computing -- potential-— of quantum computing -- otential. ,, . , , potential. quantum computers can tackle _ potential. quantum computers can tackle intractable - potential. quantum computers| can tackle intractable problems so we can direct them to the most important problems. the main thing to me is climate change, there is a lot we can do about climate change, starting with simulation of new materials that can replace plastics and host fusion, the accurate simulation of our atmosphere, the much smarter prediction, energy needs and
travel across the globe. all of those put together, helping to solve the climate crisis.- solve the climate crisis. thank ou solve the climate crisis. thank you being _ solve the climate crisis. thank you being on _ solve the climate crisis. thank you being on the _ solve the climate crisis. thank you being on the programme. | solve the climate crisis. thank- you being on the programme. the mind boggles. it will get the better of us in the end, it will. so far this year, the world's richest people have spent over a billion dollars on superyachts. throughout the pandemic the appealfor taking to the open seas on your own luxury floating mansion was too good an opportunity for those with enough cash. escaping the covid lockdowns and travel restrictions has given the industry a huge boost. in the first half of 2021, 344 superyachts have been sold on the brokerage
market — a number that far exceeds previous years. today marks the start of the most prestigious gathering in the superyacht calendar, the monaco yacht show, with 82 of the finest floating real estate on offer. joining me now isjonathan beckett, ceo of burgess. good morning to you. we wanted to see the beautiful skyline of monaco but you are below deck. do tell. it's still dark out there, i knowi do tell. it's still dark out there, i know i get up early. do tell us about this show, are you expecting big businesses here? i you expecting big businesses here? ~ , , ., .. here? i think this is going to be a very — here? i think this is going to be a very unusual _ here? i think this is going to be a very unusual show - here? i think this is going to be a very unusual show stopj here? i think this is going to - be a very unusual show stop got a fantastic collection of yachts here, as you say, about 82 yachts in the show and about 25 yachts out of anger. about 3.5 billion euros of super yachts here in the show. and we are expecting the number of people coming to the show to be
significantly down but anyone coming here is going to come with intent. i was a dinner with intent. i was a dinner with a client last night where we are going shopping today and looking for a sanctuary for them and theirfamily looking for a sanctuary for them and their family to enjoy in the pandemic has really changed our market. i in the pandemic has really changed our market. i was going to say l'm _ changed our market. i was going to say l'm sure — changed our market. i was going to say i'm sure it _ changed our market. i was going to say i'm sure it has _ changed our market. i was going to say i'm sure it has because i to say i'm sure it has because if you are on your own superyacht, you've got all the luxury and all you want to get you are not mixing, you are isolated. you are not mixing, you are isolated-— you are not mixing, you are isolated. , , _. ., , isolated. the superyacht has something — isolated. the superyacht has something for _ isolated. the superyacht has something for everybody. i isolated. the superyacht has| something for everybody. all people often come with parents, grandparents and children, is very much a floating century, as you say, but there is something for everybody on board, it's a great is this tool of course for business people to get together in this private and captive environment.- private and captive
environment. .. , environment. you see something for everybody. — environment. you see something for everybody, it's _ environment. you see something for everybody, it's probably i for everybody, it's probably only 1% of the worlds population that can consider one of these, maybe even less than that?— than that? that is certainly true, than that? that is certainly true. we — than that? that is certainly true, we were _ than that? that is certainly true, we were operating i than that? that is certainly true, we were operating in| than that? that is certainly l true, we were operating in a very unique section of the market, but if you can afford it, there is a wonderful tool to have. .. it, there is a wonderful tool to have-— it, there is a wonderful tool tohave. ., ., ., .. to have. you have one of the bi est to have. you have one of the biggest yachts _ to have. you have one of the biggest yachts on _ to have. you have one of the biggest yachts on show i i biggest yachts on show i believe. how much is it? what is the pricetag? i’m believe. how much is it? what is the pricetag?— is the pricetag? i'm sitting here on vic _ is the pricetag? i'm sitting here on vic aureus, i is the pricetag? i'm sitting here on vic aureus, 80-85 here on vic aureus, 80—85 metres, 125 million euros. we have a large yacht missing the show which is 108 metres and is on sale for 175 million euros. they are not cheap by any means, would you like to name some names? 0ur means, would you like to name some names? our clients are very private, a lot of them are
not really household names, they are private business people as opposed to celebrities, and our clients come from all around the world, europe, america is a very big market for us. asia, russia. sweden. looking for one man in this market. maybe today is your lucky day, jonathan, thank your lucky day, jonathan, thank you for being on the programme. to talk to you. it’s you for being on the programme. to talk to you-— to talk to you. it's quickly show you _ to talk to you. it's quickly show you financial - to talk to you. it's quickly l show you financial markets. to talk to you. it's quickly i show you financial markets. the big event happening later today in washington is the conclusion of the us federal reserve was meeting, so of course, all eyes will be on the fed, any decisions it may make or comment or indications as to what's ahead, everybody wants to know when it might start to pull back. it was put in place to boost the world's biggest economy and get it through the
pandemic. so you are now up—to—date. thank you so much for being with us here. whatever you are up to today, buying a superyacht, have a good one. another warm day in the offing for many with spells of sunshine once the early mist and patchy, dense fog clears away. however, further north we do have a different complexion to the weather for the day ahead. some cloudy skies with some rain, heavy to start and the risk of autumnal galesjust on q4 the autumn equinox. that's all being brought by this advancing area of clouds, it's a low pressure system. we do have a weaker weather front ahead of it. so, in contrast, it will be quite a mild start in the north whilst it could be a little bit chilly down to seven or eight in the south. it is here we will see the best of the sunshine once that mist and fog clears away, particularly for the far south. a little bit more cloud for england and wales and the odd spot of drizzle first thing,
but that clears away. this is the main rain player through the day, the northwest highlands and the islands initially. it will tend to turn a little bit lighter as it pushes southward, some brightness ahead of it and some brighter weather with showers following behind. but a breezy day even in the south as well, and the winds do escalate towards the evening. so, temperature wise, a cooler day, we are into cooler air behind that weather front, but as recent days, 22 to possibly 23 in the spots in the south and east. through the evening overnight look at those showers packing in, the winds really strengthen, there is a risk of gales across the far north and west and a cooler feel. while further south, our weather front starts to introduce a bit more cloud, so it will be milder here as we start thursday morning. a little bit of mistiness and the odd patch of fog. we still got that high—pressure close by, but you can see that deep area of low pressure whisking away toward scandinavia. behind it is just introducing that cooler air for a time. but it is just a brief incursion of chilly airfor the far north. i think you will notice a temperature dip a little bit in southern areas as well, with some cloud coming behind it is just introducing that cooler air for a time. but it is just a brief incursion of chilly airfor the far north.
i think you will notice a temperature dip a little bit in southern areas as well, with some cloud coming and going but still plenty of dry and bright weather. 0ur weather front, however, just bringing the increased risk of drizzly, cloudy weather into northern and western areas. so, temperaturesjust a degree or so down on those that we are going to see through the day ahead. but then, the wind turns back to the southwest. in fact, by the weekend it's turning towards the south actually. so, dragging that warmer air back to all parts. and some fairly settled weather, but always the risk of some showery rain out towards the west. as ever, more on our website. bye— bye.
good morning welcome to breakfast with sally nugent and dan walker. 0ur headlines today. white house talks between the prime minister and the president — but no trade deal agreed yet. the deal with the uk, that continues to be discussed. pensions scandal — the catalogue of errors that led to thousands of women being underpaid by one billion pounds. the government strikes a multi—million pound deal to protect the flow of carbon dioxide used in food and drink production. i look at whether it came soon enough and how it could affect everything from meat