Transcripts For BBCNEWS World Business Report 20240710

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Good to have you with us. We are getting down good to have you with us. We are getting down to good to have you with us. We are getting down to business. When the ever given ran aground and blocked the suez for a week in march, it halted roughly 15 of Global Trade in the process it was the culmination of a perfect storm for global Supply Chains. The ship finally made it into port in Felixstowe Yesterday to the relief of businesses whose precious cargo has been trapped for four months. The ever given saga highlighted our reliance on global Supply Chains for just about everything and exposed the weaknesses in seaborne transport. Heres our Business Correspondent theo leggett. Four months later and still bearing the scars of her encounter with the sandy banks of the suez canal, the ever given finally got into the port of felixstowe. This giant of the seas became stranded after negotiating one of the narrowest part of the canal, she was stuck fast and the waterway was not for six days. Hundreds of ships could not pass through and it caused havocin pass through and it caused havoc in a global Container Industry already under pressure because of the covid 19 pandemic. The saga of the ever given may be either but what it is shown is how much impact a single event involving one giant vessel can have on the entire global Supply Chain and just how vulnerable the systems we rely on four imports every day, really. And those Supply Chains are still under strain, thanks to otherfactors chains are still under strain, thanks to other factors such as covid outbreaks in key chinese ports in the weather, meaning Freight Rates are continuing to solve. This has won awards for us all over the world. Gavin runs a Puzzle Company importing toys and puzzles in china to be sold in britain. He is Ordering Supplies for the busy christmas. But there the costs are becoming insurmountable. Prior to this year, whenever paid more than £2700 for a40 Foot Container coming to us from china. This morning i was quoted over £15,000 for a similar container, prices have gone through the roof and it is becoming unworkable. find gone through the roof and it is becoming unworkable. Gone through the roof and it is becoming unworkable. And it is not ust becoming unworkable. And it is not just prices becoming unworkable. And it is not just prices that becoming unworkable. And it is not just prices that are becoming unworkable. And it is not just prices that are the notjust prices that are the problem. Some traders are simply struggling to find space on vessels coming from East Asia at any price, such as the level of demand. It asia at any price, such as the level of demand. Asia at any price, such as the level of demand. If you manage to net a level of demand. If you manage to get a Container Level of demand. If you manage to get a container loaded level of demand. If you manage to get a container loaded at to get a container loaded at the supplies and put it on a Vessel Sailing next week, the line may not load it on that vessel and they may not load on the next vessel, and the next vessel after that. The next vessel, and the next vessel afterthat. In the next vessel, and the next vessel after that. In other words, your container is stuck in Shanghai Port for three additional weeks before it is actually shipped on the vessel. Some businesses are happy. With space on the services they scare and Cargo Rates so high, the shipping lines themselves are making record profits although they argue this is simply compensation for the many lean years they have suffered in the past, but they are the only happy ones. For importers, retailers and consumers in Europe And North america as well as supplies in East Asia, this is a crisis they can certainly do without and the ever given remains a potent symbol of a troubled year they would like to forget. Theo leggett, Bbc News. Here to discuss this further is richard wilding, professor of Supply Chain strategy logistics, procurement and Supply Chain management at Cranfield School of management. Good morning to you both. Im sure you were listening into my colleagues report, where he is upcoming the many challenges facing Supply Chains at the moment and it is impacting the global economic recovery, isnt it . , ~. , global economic recovery, isnt it . ,. , it . Massively. And we have to remember it . Massively. And we have to remember the it . Massively. And we have to remember the ever it . Massively. And we have to remember the ever given, it . Massively. And we have to l remember the ever given, think about the size of those ships and that particular ship, basically has over 20,000 containers on it. If the Line Containers on it. If the Line Containers up from end to end, they would cover 76 miles that is the length of hadrian small this is the scale of these ships are actually going around. And it has machine parts, household goods, garden furniture, barbecue, supplying people like ikea, lenovo, dixons, all sorts of businesses and its critical to recognise that basically global Supply Chains, they circle the globe many times so if you are looking at products, they may start with raw materials coming from africa, australia, moving to china, then moving through to china, then moving through to europe, and the uk. So this complex network, not really a chain, it is a network, as soon as you get disruptions, its rather like a fly hitting the spiders web, you basically get ripples going out everywhere. That is what we have been seeing, particularly over the last 18 months or so. figs seeing, particularly over the last 18 months or so. As you mentioned. Last 18 months or so. As you mentioned, this last 18 months or so. As you mentioned, this is last 18 months or so. As you mentioned, this is really mentioned, this is really affected Shipping Prices and with businesses, small and medium sized companies are really having to take on board these rising costs for them and some of had to pass it on to customers. They have not had much choice really . Customers. They have not had much choice really . Yes, and it is a real challenge. Much choice really . Yes, and it is a real challenge. If much choice really . Yes, and it is a real challenge. If you is a real challenge. If you think before march 2020, we were talking around 2500 per container and your report mentioned a figure around that and now running at a roundabout he,000 dollarS Per container. And that is on Shipping Containers on ships but also airfreight 20,000. Those rates have also gone up dramatically as well and why is that . Because basically when you and i are flying around, passengers on the top of the aircraft and underneath, they are carrying freight. Basically, Freight Rates have gone up by 200 as well. What we are finding is that cost of logistics have increased dramatically and then when you look locally in the united kingdom, we have challenges with Laurie And Hdv drivers and rates are going up as well. This is where we are getting a big impact across all Supply Chain networks. Lorrie. find Chain networks. Lorrie. And the risk of chain networks. Lorrie. And the risk of hijacking, chain networks. Lorrie. And the risk of hijacking, with that News Today confirming and Oil Tanker has been hijacked in the gulf of oman, that is at the gulf of oman, that is at the other risk impacting supply. The other risk impacting Su L. , the other risk impacting Su L. , supply. There are certain shipping supply. There are certain Shipping Rates supply. There are certain Shipping Rates known supply. There are certain Shipping Rates known to| supply. There are certain L Shipping rates known to be supply. There are certain Shipping Rates known to be high risk and those ships have to protect themselves. So, it is known that there are high channels that are used and shipping companies will often try avoid those but of course where this one is happen, this is actually an absolutely key Shipping Lanes are continually, Supply Chain professionals Around The World are having to monitor what is going around globally in terms of looking where the risks are, where restrictions are occurring, if ports are getting shut down because of covid for example or because of covid for example or because of covid for example or because of storms and certain times of the year you do not want to move your goods across certain oceans. Certain oceans. Thank you for outlining certain oceans. Thank you for outlining the certain oceans. Thank you for outlining the challenges. Certain oceans. Thank you for. Outlining the challenges. Good to talk to you about that. Remember the Colonial Pipeline Cyber Attack which disrupted Fuel Supplies in the us for a while . Well, the company which first flagged that has released a new report saying that southEast Asian Telecommunication Networks are being used by hackers for espionage purposes. And they say the tactics being used and the groups the attacks are traced point to china as the perpetrator. Nick marsh in singapore is following the story. Tell us more. Yes, this report comes from tell us more. Yes, this report comes from cyber tell us more. Yes, this report comes from cyber ease, tell us more. Yes, this report comes from cyber ease, a comes from cyber ease, a u. S. Based group who as you say, linked the colonial Pipeline Attacks to dark side, they are that russian based Hacker Group. What they are doing this time around is investigating what they say is a chinese infiltration of Telecom Groups right here in southEast Asia. They say that these Telecom Groups have been infiltrated by hackers 2017 and have gained access to customers data and details of customers data and details of Customers Phone calls and also microsoft Exchange E Mail services and these customers are apparently of strategic importance to beijing. They have identified three main Hacker Group all with links to the chinese state and once more that have been analysing the ttp, the techniques and tactics and procedures used by these groups. The amount of overlap between them suggests they have been co ordinated by one single body, i. E. , the chinese government. Of Course Beijing has been denying this and say the accusations are groundless, there is no evidence to them and its another case of the united states and its allies ganging up on china. What cannot be denied of course is that these kinds of cyber attacks are increasing and worldwide, this is notjust a chinese issue. They have been used to either disrupt, lets say we Supply Chains or with fuel pipelines, or simply to spy fuel pipelines, or simply to spy and the reality is that for these powerful, hostile nations, no matter who they are or where they are, a cyberattack right now seems like the most effective and powerful way to hurt Each Other the moment. Powerful way to hurt Each Other the moment the moment. 0k, thank you. A Wor In the moment. 0k, thank you. A worrying trend the moment. 0k, thank you. A worrying trend it the moment. 0k, thank you. A worrying trend it would the moment. 0k, thank you. A worrying trend it would seem. | lets keep our focus on china and its clampdown on Technology Companies of all types. Again this Week Weve seen Tech Stocks on a Roller Coaster Ride with tech investors battening down the hatches. Gaming companies are in focus with concerns in beijing about the impact gaming has on its users. This follows tough new regulations on all sorts such aS Private education, Ride Hailing Apps and online payment services. To discuss this trend im joined by isabel hilton, founder of china dialogue. There has been an awful lot of discussion about thiS Particular issue, Technology Companies, especially those that are becoming very powerful and large in china being directly impacted by regulation. What is your take on this trend in china at the moment . It on this trend in china at the moment . On this trend in china at the moment . ,. ,. , moment . It is very hard to be absolutely moment . It is very hard to be absolutely sure moment . It is very hard to be absolutely sure about moment . It is very hard to be absolutely sure about this absolutely sure about this because it covers so many sectors, however, the one thing that this trend does have in common, at least all the cases have in common with Each Other, is its an assertion of Party Power over big companies. In china, the market is so large and dynamic that companies grow very fast, become very dominant, and so there seems to be three main factors. One, market abuse, and another question about Tech Security and there is a general tightening i think of regulatory standards in china. Along with a crowdpleasing. Some of it is about what is called, what the party calls capitalistic success, this swiss middle Class Sector being obliged to pay for very expensive tuition, these squeezed middle Class Sector. Government can about data going overseas. A number of factors but they are bundled up into an assertion of party control. find Assertion of party control. And Ou Assertion of party control. And you have assertion of party control. And you have really assertion of party control. And you have really highlighted how complicated this is because from the Point Of View of us in the west is easy to point the finger and say this is china cracking down on big tech as it becomes too influential in mainland china. Its not as simple as that . Is mainland china. Its not as simple as that . Simple as that . Is not as simle simple as that . Is not as simple as simple as that . Is not as simple as that. Simple as that . Is not as simple as that. There simple as that . Is not as| simple as that. There are elements and certainly elements of being too powerful. I have to say as much of the discussion in the united states is about the parra big tech companies, china can move against them and doesnt seem to mind that nearly 1 Trillion has been wiped off Shareholder Value in the process so there are concerns about any regulator would recognise. Also there is speculation that, its hard to be firmer than to speculate that there is a desire on the part of the authorities to keep the focus of an economy that is going to grow more slowly and is in fierce competition now in the united states, to keep the focus on the party priorities, which are not gaining or tutoring. They are far more strategic than that. Tutoring. They are far more strategic than that. Ok, its unfortunate strategic than that. Ok, its unfortunate we strategic than that. Ok, its unfortunate we are strategic than that. Ok, its unfortunate we are out strategic than that. Ok, its unfortunate we are out of l strategic than that. Ok, its unfortunate we are out of time, i would like to discuss this further. Thank you. Lets get some of the days other news upmarket Sportswear Brand sweaty betty has been bought by us based wolverine worldwide for almost £300 million. Founded in londons Notting Hill in 1998, the company expanded rapidly on the back of the popularity of so called ath leisure fashion. Chief executive Julia Straus will stay at the firm after the 400m deal. Chinese E Commerce Giant alibaba reported slowing growth in the second quarter, as earnings missed expectations. Its Core Business has been hit by rising competition from other big players likejd. Com and pinduoduo. And, as we heard, its outlook has been battered by the recent spate of chinese regulations in the tech sector. Stay with us on Bbc News, still to come Skate Mania grips the uk as Sky Brown takes Centre Stage at the olympics. She wins the bronze 0lympics. She wins the Bronze Medal, she is team gb� s youngest medal winner. We are going to look at the surge in demand now for skate stuff. The question was whether we wanted to save our people and japanese as well and win the war or whether we wanted to take a chance on being able to win the war by killing all our young men. The invasion began at two oclock this morning. Mr bush, like most other people, was clearly caught by surprise. We call for the immediate and unconditional withdrawal of all iraqi forces. 100 years old and still full of vigour, Vitality And Enjoyment of life no other King Or Queen in British History has lived so long, and the Queen Mother is said to be quietly very pleased indeed that she has achieved this landmark anniversary. This is a pivotal moment for the church as an international movement. The question now is whether the american vote will lead to a split in the anglican community. This is bbc world news, the latest headlines the belarusian athlete who defied her teams orders to fly home from the olympics has left tokyo on a flight to austria. And uS President biden says the governor of new York Andrew Cuomo should resign after an investigation found he sexually harassed women while in office. If you are a regular for watching thiS Programme you will be well aware that we are right in the thick of the second quarter Earnings Season with several big names reporting todays. So what is The Story So Far and what do the numbers say about how companies are recovering from the global pandemic . Joining me now is russ mould, investment director, aj bell. Good morning to you. Just talk us through who stood out for you and also wanted to come today . What will grab our attention . Today . What will grab our attention . ,. , attention . Looking at what we have seen attention . Looking at what we have seen so attention . Looking at what we have seen so far attention . Looking at what we have seen so far there attention . Looking at what we have seen so far there have i have seen so far there have been three main trends, those companies that did brilliantly last year during the pandemic is were are finding it hard, so clorox are selling less cleaning fluid, Social Media Companies are not so many users because people are going a little bit more then you have companies that suffered terribly last year who are seeing a recovery this year, everything from cars to luxury goods to oils and banks and steals and industrials, and the third group is those companies that scraped every penny last year and are feeling a lot more confident this year and they are paying a lot more then buybacks and dividends boasting total Shareholder Returns which is why in dixies like the S P 500 are trading at record highs. Indexes. 500 are trading at record highs. Indexes. You still have those within highs. Indexes. You still have those within the highs. Indexes. You still have those within the tourism those within the tourism sector, not necessarily in the us, some in the us are doing rather well but certainly for the European Airlines and also australian for example, Qantas Yesterday announcing having to tell 2500 people theyjust got to down tools is still very difficult for something is, isnt it . It difficult for something is, isnt it . ,. ,. , isnt it . It is and frankly there was isnt it . It is and frankly there was a isnt it . It is and frankly there was a statistic isnt it . It is and frankly l there was a statistic from Deutsche Bank that said 88 of american companies had beaten analyst expectations, think Thatis Analyst expectations, think that is because firms are about how the second half be more difficult because apart shortages, bmw said similar Things Yesterday and that is a trend that is bubbling over. We have seen heineken, you deliver talking about raising shipping costs, rising costs of metal for cans, commodity costs, and they are now starting to try to put up their prices to compensate for that. Youve got the right Sharing Company Lyft talking about Driver Shortages and yet ultimately none of us know what the Delta Variant could mean or what is coming, or more lockdowns coming and thatis or more lockdowns coming and that is why a lot of firms are not getting carried away. Even those who are talking about giving more cash back to shareholders, they are not being completely over bold in terms of their outlook going forward. � ,. , forward. And briefly what is our forward. And briefly what is your thoughts forward. And briefly what is your thoughts on forward. And briefly what is your thoughts on the forward. And briefly what is i your thoughts on the outlook . Markets have been very nervous this week and the worry is that countries such as the uk where many many people are now fully vaccinated, we are in a very different place to say for example countries in asia where the Delta Variant is spreading significantly. They are not as vaccinated, they are having to lock down against. And decided they what is ahead, isnt it . And the uneven base for recovery will be the key story going on as well as inflation and we do see rising costs, do they have the power to pass that on to consumers . That will be vital in the second half and beyond. Be vital in the second half and be ond. ,. ,. ,. , beyond. Really good to talk to ou, beyond. Really good to talk to you. Have beyond. Really good to talk to you. Have a beyond. Really good to talk to you, have a really beyond. Really good to talk to you, have a really good beyond. Really good to talk to you, have a really good day i beyond. Really good to talk to l you, have a really good day and we will speak to you again soon. Now, he founded a company so successful its almost become a word in its own right, we talk about airbnbing a property these days, but brian Chesky Isnt so Sure Airbnb was actually such a great business idea, as he explains for our ceo secrets series. Id rather work with great founders on a not great idea than not excellent founders on a great idea. Theres a huge obsession with having a idea and picking the right market. 13 years later, i think matters more you do it with what you do. Honestly, was a B B really a good idea . Renting three Air Mattresses in our apartment to designers to sleep in our Living Room to 70 a night didnt seem like a good idea. I would strain of raise 150,000 and sell 10 of the company and we could barely get a meeting from a lot of people. But if you have a great team, you can take an idea that you might think is a little crazy and you can find a way and and the number one reason that start ups fail is the founders quit. They either lose motivation, they have no traction or they run out of money. You dontjust like get sniped. You just kind of crawl and fade away, so just having great founders that can support you as the most important thing, i think. You as the most important thing, ithink. You as the most important thing, ithink. Interesting to net his thing, ithink. Interesting to get his top thing, ithink. Interesting to get his top tips skateboarding has made its 0lympic debut at tokyo, with skateboarders now athletes rather than just � cool kids and companies that sell Skateboarding Gear have seen their sales rocket. Sky brown, the uks teenage skateboarding sensation, just won a Bronze Medal a few minutes ago, and she has really lit the fire under the sport, specially here in the uk. Joining me now is james davidson, cfo of skatehut. I understand you have seen i understand you have seen a i understand you have seen a surge of sales this year . Its surge of sales this year . Its been incredibly surge of sales this year . It� s been incredibly popular, skateboarding since the start of lockdown has really taken a boom at. We were of course expecting the olympics to start in 2020 and they only got delayed partway through the year so i think there was a lot of participation in the industry that it was really going to take off and certainly even though the olympics didnt happen last year with lockdown occurring, children being at home and their parents looking to entertain them, then certainly as a sport, it really took off from march, april last year. Took off from march, april last ear, took off from march, april last ear. , year. Skateboarding has been in the uk and year. Skateboarding has been in the uk and obviously year. Skateboarding has been in the uk and obviously other the uk and obviously other countries for years, hasnt it . My countries for years, hasnt it . My kids have been skateboarding, i am very familiar with your company, you have cost me quite a bit im have cost me quite a bit im really glad have cost me quite a bit im really glad to have cost me quite a bit im really glad to hear have cost me quite a bit in really glad to hear that it has always been popular. What we really seen over the last 12 months is just another level in terms of the surge of demand, so traditionally, we are an a number of categories at skatehut, we sell Roller Skates and so on but skateboarding really took off this time last year, i think it was just a perfect combination of factors. People at home not necessarily getting access to their local Skate Parks but they could obviously do it in the streets, on the cul de sacs, in the drive, in the garden, so there waS Plenty of opportunity to get out there and The Sun was shining, it was the perfect storm. � ,. , shining, it was the perfect storm. � i. Shining, it was the perfect storm. �. , shining, it was the perfect | storm i storm. Are you a skater . I refer storm. Are you a skater . I prefer two storm. Are you a skater . I prefer two wheels storm. Are you a skater . I prefer two wheels than storm. Are you a skater . I | prefer two wheels than for, ive got to be honest stop in my kids try to keep me away from the board. I do try to Have A Go occasionally. Ige Have A Go occasionally. Ive tried it, Have A Go occasionally. Ive tried it, i Have A Go occasionally. Ive tried it, i nearly Have A Go occasionally. Ive tried it, i nearly broke Have A Go occasionally. Ive tried it, i nearly broke my ankle its great to talk to you, i am sorry we have got more time and huge congratulations to all those winners at the olympics stopping the Silver Medallist from japan, she isjust 12 Sky Brown, well done. Thanks for your company, have a lovely, lovely day. And of course i am on twitter if you want to get in touch. I will see you soon. Hello. The weather midweek isnt looking too bad at all for most of us. Wednesday is going to bring lengthy sunny spells, skies will probably look a little bit like this. But were expecting heavy showers, too. Lets have a look at the big picture first, and heres the Jet Stream. Everywhere south of that is warm. Everywhere north of that is generally cool and quiet showery. And you can see a large chunk of the continent experiencing this relatively cool and showery summertime weather. So, at the moment, its quiet on the weatherfront. Clearfirst thing in the morning with lots of sunshine. Temperatures around ten in glasgow, 13 in liverpool, 12 in london. Notice a bit more cloud in the morning here out towards the north west, and actually it will be quite cloudy through the day. In the Western Isles and Northern Ireland, showers here. But showers also breaking out acrosS Parts of the highlands, the pennines and a few scattered around the midlands and the south, too. But coastal areaS Probably staying dry and sunny all through the course of the afternoon. Windsll be light. Itll feel warm enough, too, 22 degrees quite widely. Even on the North Sea coast, in excess of 20 celsius. Youll notice that some of these showers, some heavy and maybe thundery ones, will last through the afternoon and into the evening hours as well on wednesday. Now, heres the Weather Map for thursday. This current of wind, thats the Jet Stream pushing a low pressure towards us for the end of the week, so that means the weather is turning u nsettled. And heres thursday. 0ut towards the west comes the low pressure. You can see the increasing winds, up to near Gale Force around some coasts. Outbreaks of rain, too. For a time at least, Eastern Parts of the Country Shouldnt be too bad at all on thursday. I think that Rain And Wind will probably reach you later in the day, and temperatures hence getting up to around 22 in the afternoon in hull. But the low pressure is Slap Bang over us On Friday, and itll be a slow mover. So, that means all the heavy Showers Thatll be churning away, theyll be sitting on top of us for quite some time. I think On Friday particularly heavy. The Met Office is highlighting across scotland, Northern Ireland and the north of england heavy and thundery and prolonged. In the south, therell be showers too. And remember, very breezy weather as well, so brollies at the ready. This is Bbc News for viewers in the uk and around the globe. Our top stories. The belarusian athlete who defied her teams orders to fly home from the olympics has left tokyo on a flight to austria. President biden says the govenor of new York Andrew Cuomo should resign after an investigation found hed sexually harassed women while in office. In the uk, the Coronavirus Vaccination programmes to be expanded to include 16 and 17 year olds. Aged just 12 and 13, skateboarders from japan and great britain become the youngest ever olympic medal winners in the same event

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