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tv   World Business Report  BBC News  October 5, 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. after months of ambiguity elon musk is to finally go through with the purchase of twitter, in a deal worth $41; billion. a cut above the rest — oil prices surge as opec plus gathers in vienna to consider a big drop in production. after a two year break, the british cheese awards are back — will there be recognition for new cheeses challenging the more mature contenders? and creating the future in frozen treats — we taste the world of ice cream innovation in denmark.
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welcome to the programme, packed with dairy delights. but we first must talk about twitter. will he — won't he? the question of whether elon musk would buy the social media network twitter. it has been a six—month roller coaster since mr musk first made his offer in the middle of april. having struck a deal soon after, in earlyjuly the worlds having struck a deal soon after, in earlyjuly the world's richest man revealed he'd changed his mind and intended to pull out of the deal. that sparked a legal battle over whether mr musk should be compelled to uphold his promise. now he says he will go ahead after all. a few hours ago he tweeted: it's understood this app would mirror china's wechat app, which combines social media, instant messaging
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and payment facilities. mr musk went on to say the twitter acquisition would probably accelerate the x app by three to five years. here's samira hussain in new york. it was only six months ago when elon musk agreed to buy twitter for $41; billion. since then the billionaire has spent most of that time trying to get out of the deal. although twitter says roughly 5% of users are fake accounts or bolts, elon musk claims the number is much higher. as a result he should be let out of his contractual obligations. not so fast, the two sides will battle it out in court later this month. for many, the u—turn by elon musk is a clear sign he did not think he could win. why do you think he could win. why do you think into and elon musk is
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like, go through with the deal? it seems to me it has become increasingly obvious that elon musk would not prevail in court and that twitter would. otherwise, why would you agree to exactly what you would agree to exactly what you would agree to months before unless you felt the outcome would be the same or worse?— same or worse? twitter has heard it all _ same or worse? twitter has heard it all before, - same or worse? twitter has heard it all before, elon - same or worse? twitter has l heard it all before, elon musk is buying, now he is not, now he is again. it made a simple statement, that it intends to close the deal. it is not entirely clear who exactly has benefited from all this. certainly not twitter. its shares have tanked and employees have left the company during the months of elon musk turmoil and elon musk is still shelling out $41; billion but now it is for a much weakened
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company. joining me now is daniel ives, managing director of equity research at wedbush securities welcome to the programme. what a mess. twitter is damaged, elon musk�*s reputation is damaged, we think he is now being forced to buy something he does not want. it being forced to buy something he does not want.— being forced to buy something he does not want. it has been a nightmare- _ he does not want. it has been a nightmare. this _ he does not want. it has been a nightmare. this soap _ he does not want. it has been a nightmare. this soap opera - he does not want. it has been a nightmare. this soap opera hasi nightmare. this soap opera has spread out since april and ultimately many saw the writing on the wall. —— elon musk saw the writing on the wall, he has to buy twitter. he is paying $44 billion to buy twitter. he is paying $41; billion for an acid with $25 billion. he sm billion for an acid with $25 billion.— $44 billion for an acid with $25 billion. $41. billion for an acid with $25 billion. . , ., $25 billion. he has tweeted a coule $25 billion. he has tweeted a c°uple of — $25 billion. he has tweeted a couple of times _ $25 billion. he has tweeted a couple of times since, - $25 billion. he has tweeted a couple of times since, about| couple of times since, about his thoughts about what might happen next. this x app. what happen next. this x app. what do ou happen next. this x app. what do you think — happen next. this x app. what do you think will _ happen next. this x app. what do you think will happen - happen next. this x app. wiat do you think will happen next? the easy thing was buying
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twitter, the hard part is to fix it. monetising it will be the difficulty. $41; fix it. monetising it will be the difficulty. $44 billion including debt. they will montage through subscriber groups, ultimately, really tried to take this into more of a content e—commerce but that is going to be an uphill battle. twitter, tesla, spacex, juggfing battle. twitter, tesla, spacex, juggling all these will be a concern for elon musk. in terms ofthe concern for elon musk. in terms of the likes _ concern for elon musk. in terms of the likes of _ concern for elon musk. in terms of the likes of donald _ concern for elon musk. in terms of the likes of donald trump - of the likes of donald trump being allowed back and some of the plays being banned from twitter, there are concerns about what elon musk�*s strategy will be? it about what elon musk's strategy will be? , 4, , about what elon musk's strategy will be? , . , ., will be? it starts with freedom of speech- _ will be? it starts with freedom of speech. that _ will be? it starts with freedom of speech. that is _ will be? it starts with freedom of speech. that is really - will be? it starts with freedom of speech. that is really why l of speech. that is really why he started to get into this to begin with, going back to april. that is going to be a tight rope when you work with donald trump and other issues twitter has had because that is part of its problem because you
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cannot monetise anything and it has been a cesspool as we have seen from a content perspective. monetising is going to be the challenge were ultimately fault elon musk, the last few weeks, the delaware situation, coming around the corner and realising he was not going to win that.— going to win that. thank you for sharing _ going to win that. thank you for sharing your _ going to win that. thank you for sharing your thoughts . going to win that. thank you | for sharing your thoughts with us. tell us what you think. as you know, i am on twitter! oil prices have been rising in anticipation of a big cut in production by opec+. the cartel is meeting in vienna today for their first in person meeting since the global pandemic. expectations are running high they will agree to cut production — some say by as much as two million barrels a day in a bid to support prices and improve revenues for member countries, including russia. let's go live to vienna now.
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joining me now is independent oil analyst cornelia meyer. good morning, sally. are we looking at a production cut announcement of 2 million barrels per day? it announcement of 2 million barrels per day?— announcement of 2 million barrels per day? it could be anything — barrels per day? it could be anything between _ barrels per day? it could be anything between one - barrels per day? it could be | anything between one and 2 million barrels a day but what we have to look out for is not just the size of the cut but what are they cutting from? are they cutting from current quotas or from current quotas orfrom current production quotas or from current production because current production, depending which is or is you believe, is between 2.8 and 3.6 million dollars a day underproduction below the quotas. i351 day underproduction below the auotas. " ., . , day underproduction below the auotas. " ., ., , ' day underproduction below the auotas. " ., ., , quotas. 99 dollars .51 a baroque- _ quotas. 99 dollars .51 a baroque. that - quotas. 99 dollars .51 a baroque. that is - quotas. 99 dollars .51 a baroque. that is pretty| quotas. 99 dollars .51 a - baroque. that is pretty high. did they have to take such measures? it did they have to take such measures?— did they have to take such measures? , , , measures? it is pretty high, it is and it is _ measures? it is pretty high, it is and it is not. _ measures? it is pretty high, it is and it is not. it _ measures? it is pretty high, it
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is and it is not. it was - measures? it is pretty high, it is and it is not. it was way - is and it is not. it was way above 120 when the war in ukraine broke and it be came down between 20% or 25% in the last quadrant. they worried about the erosion and also worried about recession fears because as central banks are tightening money and as we see the difficult situation with energy, especially in europe, these recession fears are very real and obviously if demand goes down because of a recession, that will have its effect on the price. if recession, that will have its effect on the price.- recession, that will have its effect on the price. if they do no effect on the price. if they do go ahead. — effect on the price. if they do go ahead. as _ effect on the price. if they do go ahead, as expected, - effect on the price. if they do - go ahead, as expected, whatever that may be, that is going to be so unpopular with the us and the biden administration? it would be extremely unpopular with the us but i think, when you look at it from opec�*s
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view, they worried about two things. they are really worried about, when you look at the slide in the prize, the financial side and not being in tandem with the physical side of the market, they worried about recession. i think they will go ahead in terms of what is best for them. if you look at their charter, it says we want to have all your market adequately supplied and we will do what is best for our member countries. do what is best for our member countries-— countries. good to talk to you and we will — countries. good to talk to you and we will wait _ countries. good to talk to you and we will wait to _ countries. good to talk to you and we will wait to hear- countries. good to talk to you and we will wait to hear what| and we will wait to hear what that announcement is later from opec+. let's talk about the day ahead for the uk prime minister. as you've been hearing its a big day for the prime minister. in a few hours time liz truss will address her first party conference as leader.
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it's been a rocky start for ms truss — the first two weeks of her premiership were dominated by a period of mourning for queen elizabeth, and since then she and her chancellor have been struggling to navigate deep financial challenges and retain the confidence of the financial markets and some within their party. i have come into office at a very difficult time, when we have seen vladimir putin's war on ukraine causing a spike in energy prices, when we have seen inflation hi, a slow growing economy. we had to act and deal with that straightaway. by putting in place energy price guarantee, ljy place energy price guarantee, by far the biggest part of our mini budget, by making sure we are not raising taxes at the moment when we need to get economic growth into our country. economic growth into our country-— economic growth into our count . . . country. that was a prime minister _ country. that was a prime minister outlining - country. that was a prime | minister outlining some of country. that was a prime - minister outlining some of the challenges. i'm joined by douglas
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mcwilliams, deputy chairman of the centre for economics and business research what are you hoping she will say today? i what are you hoping she will say today?— say today? i think she will create a — say today? i think she will create a bit _ say today? i think she will create a bit of _ say today? i think she will create a bit of confidence. say today? i think she will- create a bit of confidence. she will keep her growth plan running. we have seen an abandonment of the 35 p, sorry, cut in the 35p tax. that will worry people, that she gives away at the first whiff of gunfire. if other elements of the growth plan disappear, then i think she's a terribly difficult situation. she has got to try and get the economy growing and if her plant disappear because of a bit of public disapproval then she will not be able to take the tough decisions that she needs tough decisions that she needs to take. ., ., i. tough decisions that she needs to take. ., . , ., ~' to take. from what you think, i aet to take. from what you think, i net the to take. from what you think, i get the impression _ to take. from what you think, i get the impression you - to take. from what you think, i get the impression you believe | get the impression you believe her growth plans will work? if they were implemented they
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would. the difficulty... but we do not know — would. the difficulty... but we do not know yet _ would. the difficulty... but we do not know yet the _ would. the difficulty... but we do not know yet the detail of l do not know yet the detail of how they will be paid for. so many economists are concerned of this growth plan will not work. ,, ., of this growth plan will not work. , , ., ., work. some slightly exaggerate the costs and _ work. some slightly exaggerate the costs and we _ work. some slightly exaggerate the costs and we have - work. some slightly exaggerate the costs and we have done - the costs and we have done rather careful costing and we should not equate a lot of the things will make money not cost money. the cut into the upper rate of tax. it does not make money in the first couple of years that eventually it does. once you take that into account, it makes you money... that do not have a couple of years, they have an election in two years. this is the problem. some of these announcements need... come into effect in terms of rewards in years time is not in the short term.- is not in the short term. they have to seek _ is not in the short term. they have to seek out _ is not in the short term. they have to seek out the - is not in the short term. they have to seek out the public i have to seek out the public vote. she said short term thinking of the kind you have
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been describing has been but has damaged the economy and so she is claiming we need to think long—term. she obviously hopes the country will reward her and will be sufficiently impressed in the first two years to suffer the pain of the hard decisions and keep going to get the plan fully implemented. that is our hope and probably her only hope. d0 and probably her only hope. do ou and probably her only hope. do you expect businesses to expand, increase capital expenditure and high up more people in the light of this mini budget?— people in the light of this mini buduet? ., ., ., mini budget? the abandonment of the rise in cooperation _ mini budget? the abandonment of the rise in cooperation tax - mini budget? the abandonment of the rise in cooperation tax is - the rise in cooperation tax is good news. if it is sustained. and obviously the political uncertainty to which you refer effects international businesses as well. are they going to want to invest in a lower rate of tax when the government might change in two
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years? that is going to be a difficult one. in the long—term i am pretty certain businesses will spend more, all the studies say that, but you are in the short term, you have to factor in the fact we have a democracy and have an election every so often. we democracy and have an election every so often-— every so often. we will have to leave it there. _ every so often. we will have to leave it there. thank _ every so often. we will have to leave it there. thank you - every so often. we will have to leave it there. thank you for i leave it there. thank you for your thoughts. just to say, we will be live here on bbc news with the prime minister �*s speech when she addresses the conservative party conference in birmingham at 11am this morning. stay with us on bbc news, still to come: we take a look into the tasty world of icecream innovation in denmark.
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this is bbc world news, the latest headlines: a promise of change, despite the disruption — the uk prime minister, prepares to deliver her key—note speech
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after days of u—turns and divsions. the worst drought in 40 years leaves hundreds of thousands of somalians are facing extreme hunger and death. china's economy is slowing down as it adapts to a punishing zero—covid strategy and weakening global demand. official growth figures for the july to september quarter are expected next week and if the world's second—largest economy contracts, that increases chances of a global recession. joining me now is our asia business correspondent sura njana tewari. what have you found out? china doesnt what have you found out? china doesn't have _ what have you found out? china doesn't have inflation _ what have you found out? china doesn't have inflation problems| doesn't have inflation problems like the uk, but those high prices around the world mean there is less demand for the goods that the factory of the world producers. also, the
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chinese currency is on course for the worst year for decades against the us dollar, and that speaking investors. what exactly has gone wrong? zero covid—19, that policy is wreaking havoc, covid—19 outbreaks in several cities are hurting economic activity across industries, also people aren't spending money on things like food and beverage, retail or tourism, like food and beverage, retail ortourism, china like food and beverage, retail or tourism, china makes like food and beverage, retail ortourism, china makes up like food and beverage, retail or tourism, china makes up a third of output but it is having a real crisis, homebuyers are refusing to meet mortgage payments because they are not sure homes will be completed and developers are fast running out of cash crop climate change is making things worse, heatwave and drought this year have had a lasting impact on china's factory activity, affecting iphone makers and auto companies and the regulatory crackdown on the chinese tech times which has
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lasted two years is not held —— helping others. the likes of ali barber are bleeding cash and investment leading to a underemployment crisis. we are less than three weeks away from the communist party meeting, during wet the premiere is set to secure an unprecedented third term as president but the economy may prove to be his biggest challenge yet. we will look for that _ biggest challenge yet. we will look for that data _ biggest challenge yet. we will look for that data when - biggest challenge yet. we will look for that data when it - biggest challenge yet. we will look for that data when it is i look for that data when it is coming up. days may be drawing in here now, but not long ago the uk and parts of europe had some of the hottest weather on record, and to cool off there were few things more satisfying than eating an ice cream. adrienne murray has been to what might be ice cream's answer to silicon valley in denmark. and was lucky enough to visit an innovation centre to get the inside scoop on how future frozen desserts are brought to life. it's never too late to fulfil a
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childhood dream and i met a product development centre for ice cream. i can test out new ice cream. i can test out new ice cream. i can test out new ice cream designs together with technology needed to bring them to life. , . ., ., to life. they come here have four or five _ to life. they come here have four or five different - four orfive different gradients and then we put them in and we test them and see how does the mouth feel, the texture, is it working? inside a rotating — texture, is it working? inside a rotating freezer _ texture, is it working? inside a rotating freezer the - texture, is it working? inside| a rotating freezer the mixture is called tuned and narrated before being pumped into a tub. we don't eat ice cream because we are hungry. it we don't eat ice cream because we are hungry-— we are hungry. it is one of the few foods _ we are hungry. it is one of the few foods we _ we are hungry. it is one of the few foods we consume - we are hungry. it is one of the few foods we consume frozen | we are hungry. it is one of the . few foods we consume frozen and while the basic seppi is simple it is a complex structure of ice crystals, fat globules and air bubbles, in fact usually half of an ice cream volume is actually air. and this is where it all starts, one of the first steps to make ice cream, is designing the mould. on the shop floor machinery is
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assembled for these factories. this one has been prepared to go to a customer and can make a million ice creams a day. over 25 billion litres of ice cream are eaten worldwide. in the us and china consumed the most. meanwhile sizzling temperatures in the uk this summer have seen sales soar. from mid july to august up 28% compared to the year before. it takes six months to bring a new idea to the market, so what can we expect and freezes next summer? global trend is minimising ice creams, downsizing the volume, a small cone, small sticks, bite—size. a small cone, small sticks, bite-size— a small cone, small sticks, bite-size. . . ., , bite-size. making ice cream is a precise _ bite-size. making ice cream is a precise science _ bite-size. making ice cream is a precise science so _ bite-size. making ice cream is a precise science so if - bite-size. making ice cream is a precise science so if you - a precise science so if you want to make sure you are getting it right, you need to test it... and i'm only happy to help. let's stay with dairy.
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now whether you're a fan of a bit of red leicester, crumbly caerphilly, strong stilton or your classic cheddar. you'll find them all at today's british cheese awards — back after a two year breakfor the pandemic. and apparently there are a lot of you cheese fans out there — gobbling up over 700 british and irish varieties on the market — powering an artisanal cheese sector worth over $100 million a year. but after the shocks of the pandemic and soaring food costs how is the industry coping? joining me now is mary quicke of quicke's cheddar — who have been making cheese for over 450 years in devon. mary has been a british cheese awards judge for many years and joins us from somerset where the awards are being held. welcome to the programme. i'm so excited _ welcome to the programme. i'm so excited to _ welcome to the programme. i“n so excited to be judging at the british cheese awards. back after so long.— british cheese awards. back after so long. you are 'udging, i presume * after so long. you are 'udging, i presume you t after so long. you are 'udging, i presume you won't _ after so long. you arejudging, i presume you won't eat - after so long. you arejudging, i presume you won't eat all. after so long. you arejudging, | i presume you won't eat all the cheese today, you have been
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testing cheeses for weeks in the run up to today?- testing cheeses for weeks in the run up to today? well, we at home on — the run up to today? well, we at home on the _ the run up to today? well, we at home on the farm, - the run up to today? well, we at home on the farm, we - the run up to today? well, we at home on the farm, we eat. at home on the farm, we eat quite a lot of cheese all the time, obviously, testing our own cheese, but what was so fantastic, at the british cheese awards is just being able to taste all the new cheeses, there are 20 brand—new cheeses, there are 20 brand—new cheeses this year, in the competition, and i think that is a real reflection that after the pressure cooker of covid—19 it was very hard on specialist cheesemakers, but for 90 entries, that's more cheese than the french make. so that's exciting. than the french make. so that's excitina. �* , . , exciting. the british cheese market has _ exciting. the british cheese market has been _ exciting. the british cheese market has been booming l exciting. the british cheese i market has been booming for some time, as we mentioned, a lot of challenges lately, not least the rising cost of all the stuff that goes into cheese?—
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the stuff that goes into cheese? , ., ,., cheese? yes, tell me about it, ener: cheese? yes, tell me about it, energy is _ cheese? yes, tell me about it, energy is a _ cheese? yes, tell me about it, energy is a really, _ cheese? yes, tell me about it, energy is a really, really - energy is a really, really difficult cost, the electricity cost has gone up by goodness me, five or six times, the gas prices, we use gas very much to heat our milk, and that's difficult, and, labour costs, and labour availability, making especially allergies, we make these beautiful all 27 kilos of big cheeses, and, it is a really, really interesting work, it's hard work, there are easierjob so we are having to keep up our salary rates, in order to keep our people happy. i don't expect you to reveal the winners on this programme right now, i suppose that wouldn't be allowed,. i’m wouldn't be allowed,. i'm 'udauin wouldn't be allowed,. i'm judging them _ wouldn't be allowed,. i“n judging them today!
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wouldn't be allowed,. i'm judging them today! you | wouldn't be allowed,. i'm - judging them today! you give our judging them today! you give your advice — judging them today! you give your advice having _ judging them today! you give your advice having tested - judging them today! you give your advice having tested the cheeses, what to look for in a good cheese, what makes a cheese a winner?— good cheese, what makes a cheese a winner? goodness me. first of all _ cheese a winner? goodness me. first of all you — cheese a winner? goodness me. first of all you look _ cheese a winner? goodness me. first of all you look at _ cheese a winner? goodness me. first of all you look at it, - first of all you look at it, how does it look, then the smell, and then, obviously taste, taste and texture, the body of the cheese, how does it feel, it's texture. i'm very much looking for, complexity and balance. lode much looking for, complexity and balance.— and balance. we will have to leave it there. _ and balance. we will have to leave it there. interesting i leave it there. interesting flavours- _ leave it there. interesting flavours. i'm _ leave it there. interesting flavours. i'm loving - leave it there. interesting flavours. i'm loving your. flavours. i'm loving your passion. _ flavours. i'm loving your passion, i'm _ flavours. i'm loving your passion, i'm feeling. - flavours. i'm loving your. passion, i'm feeling. mary quinn thank you from quick�*s cheddarin quinn thank you from quick�*s cheddar in the heart of somerset. thank you for telling us about the competition. we have had a huge bounceback of two and a half %, hsbc shares
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powering the hang seng, it was closed yesterday so markets are doing well. if you have a good cheese, you need a good chutney. if you follow me on twitter, you know i make it stop. hello. wednesday gets off to a windy start, a wet start in northern and western areas. got an area of low pressure which is spinning up across the uk and will quickly move on towards scandinavia, there'll be a trailing weather front from it though that'll rain southwards which will begin wednesday dry and following on behind, it'll be sunshine and blustery showers. this is how things look at 6:00 in the morning. bit of a wet night in northern ireland and across much of scotland, heavier rain for wales and north—west england. look how mild it is, though, through wales and england in particular as the day begins. quite quickly the rain out of northern ireland, it'll be out of much of scotland by end of morning, brighter skies following on behind with scattered showers, some heavy and maybe thundery, moving through quickly on gusty winds. wales and northern and western
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england turning drier into the afternoon, sunny spells, chance of a shower, and through the afternoon, spell a brief spell of rain moving through east anglia and the south—east after what is a dry start to the day here, maybe a few sunny spells. it is a windy day, these are some wind gusts, there'll be stronger ones through irish sea coasts, particularly north wales and north—west england, very windy to begin the day and temperatures actually come down a bit once the rain has moved on through so it will feel cooler and particularly fresher into the afternoon. of course, that's helped by that gusty wind. we continue with some showers moving in overnight, wednesday into thursday, particularly towards the north—west of the uk mayjust merge to give a longer spell of rain moving in here. it will become mainly dry the further south you are through wales and england, lower temperatures, so a cooler start to the day on thursday. high pressure to the south keeping many southern areas essentially dry on thursday. whereas another set of weather fronts are coming close to northern ireland and scotland so here, there'll be a few showers around to begin the day but the idea will be that it'll tend to cloud over and we will see some outbreaks of rain coming into northern ireland and push in parts of scotland. by the end of the day, some of this could be quite heavy in places,
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notice further south, though, it is mainly dry and a quite bit of sunshine around here. more heavy rain in parts of northern ireland and scotland, overnight and into friday, then pushing through wales and england on friday, very slowly, mind you. behind it, so further north you are, you're back into the sunnier skies, brisk winds still, there'll be showers around, some of them could be heavy, maybe with a rumble of thunder. an area of high pressure nosing in across the uk to give many places a dry start to the weekend before we see further outbreaks of rain, mainly to the north and west as we go on through sunday.
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good morning, welcome to breakfast withjon kay and sally nugent. our headlines. a promise of change despite the disruption from the prime minister as she prepares to close a turbulant conservative party conference. ukrainian forces are making rapid advances in the south of the country, according to president zelensky. a call for urgent changes to rugby, as new research suggests top players face a greater risk of developing long term brain conditions. wholesale petrol and diesel prices plummet, but that's not being passed on fully to drivers. the rac says major retailers, including the supermarkets,
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are not cutting prices enough and accuses them

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