Trade wars, Climate Change and the Pandemic Add up to a vintage hangover for the wine trade. We start with those Supply Chain problems hitting businesses across the uk because there have been more warnings from industry about the growing impact of Staff Shortages, blamed on the pandemic and brexit. The British Retail Consortium says some parts of the Food Industry in the uk are now becoming unsustainable. Andrew opie from the brc was speaking to the Trade And Business commission, an independent group of Business Representatives and mps looking to make recommendations to the government. He says its notjust about the well publicised Truck Driver shortages but a lack of staff in factories and right across the Supply Chain. If you look at the vacancies in the process sector, which is so important both in primary production and to sales and retail, they are really struggling now with availability. They do not have the access to the seasonal workers, there is a small seasonal Worker Scheme that is running as a pilot store, but we do not have the freedom that we do not have the freedom that we had previously to allow those companies to make up the shortfall for employing people locally. So a very different situation. We accept that in terms of they are no longer in the eu and we need to work without respectfully but need to find some solutions otherwise we have to put our production back into europe. Lets speak to Dan Kemp chief Investment Officer for europe, the middle East And Africa at morningstar investment management. Thank you forjoining us. Outline for the viewers, if you can, what economic impact on the Supply Chain shortages likely to have . The Supply Chain shortages likely to have . Absolutely and aood likely to have . Absolutely and good morning likely to have . Absolutely and good morning. This likely to have . Absolutely and good morning. This is likely to have . Absolutely and l good morning. This is obviously worrying news for all consumers, as we head into that busy christmas. Because retailers as well as other members of Supply Chains. This is an important story for All Of Us and i think the reason it is so important is that the latest news and the latest concerns we are seeing, ijust part of the longer Term Trend towards less globalisation, less Free Trade that we can focus on hauliers and brexit as challenges but also longer term issues like the, like what has happened with covid and the Travel Restrictions there, but even back to the us and China Trade disputes that we saw a few years ago. So, we have been used so used to increased Global Trade and a very stable inflation that comes from that and what were seeing is some real challenges to that trend. So its notjust going to affect businesses but also consumers and investors, of course, as inflation changes, the Investment Environment changes. Companies from bp to mcdonalds to Coca Cola have all reported Supply Chain issues in recent weeks. Even the Pub Chain wetherspoons. The boss of which was a very Vocal Brexit supporter. All of them are having the same problems. Is the answer letting in more foreign workers, as some are arguing . That deals with one of the problems and that is one of the problems and that is one of the problems being highlighted today in that interview earlier, saying there are a lack of workers in key sectors but if we really think about what causes the lack of workers, notjust into sectors but more broadly, part of that is training of course and there are a limited number of hauliers who have trained popular that can be addressed, but also it is often wages, we see these sort shortages in sectors where wages have been compressed. Sectors where wages have been compressed compressed. That has fed throu. H compressed. That has fed through to compressed. That has fed through to lower compressed. That has fed through to lower prices i compressed. That has fed | through to lower prices we compressed. That has fed through to lower prices we have enjoyed and higher Profit Margins that is pleased investors. One of the bigger things that we are likely to see from this is a rise in wages that will lead through potentially to damaging Profit Margins and rising prices. With this story, its really important notjust this story, its really important not just to focus on specific that we are seeing today in one story but look at that broader picture, which really speaks of a more challenging environment for low prices, more concerns about the inflation and challenges for companies and investors have to take that into account when building portfolios. To take that into account when building portfolios. Building portfolios. To your Oint Building portfolios. To your point about building portfolios. To your point about looking building portfolios. To your point about looking at building portfolios. To your point about looking at the L Point about looking at the broader perspective, those in the uk will be waking up to newspaper headlines, some of which are pointing to Truck Driver shortages happening right across europe, notjust in the uk, and inference there is that is not to play for Supply Chain squeezes because these things are happening elsewhere. To those people putting those headlines across and supporting that you have a point . I and supporting that you have a oint . ~ , and supporting that you have a oint . ~ ,. ,. ,. , point . I think they do have a oint in point . I think they do have a point in the point . I think they do have a point in the Sense Point . I think they do have a point in the sense that point . I think they do have a point in the sense that we i point . I think they do have a| point in the sense that we are all potentially focusing on one team of what is going on on that broader scale, and not seeing all of the other symptoms that are pointing to, if i put it this way, a more important disease, which is the greater, the greater risk of inflation. Yes, ithink greater, the greater risk of inflation. Yes, i think when we are thinking about this problem, both the policymakers and as investors and consumers and as investors and consumers and business leaders, you cannotjust and business leaders, you cannot just focus on and business leaders, you Cannotjust Focus on one area. We have to realise there are challenges across the globe and we are seeing this and reports from many companies in many industries and countries Around The World. So its notjust one issue we can focus on. It is a broader Term Trend that we are seeking to mend. Lets stay with Supply Chain problems because the global shortage of Computer Chips continues to devastate american car makers. General motors says it will temporarily shut down most of its North American plants in september. The crisis has seen new Car Sales at ford plummet more than 33 in the us. The bbc� s Samira Hussain reports from new york. The month of august is usually when Car Sales in america are at their highest. But not so this year. Because of a shortage of semiconductors, us automakers have not had enough inventory to fill demand and factories have had to temporarily suspend operations because it did not have the chips needed for the cars. And with fewer cars to sell and continued pent up demand for vehicles, it has also pushed up the cost of cars, driving some consumers to purchase used vehicles. The monthly Sales Reports for ford illustrates the conundrum perfectly, falling by some 33 compared to the same time last year. And at the same time last year. And at the same time last year. And at the same time, General Motors has announced a Semiconductor Shortage means it would temporarily shut down operations at four plants in north america, in september. Toyota has also said it will cut production by A0 . If consumers were expecting smooth the road ahead, that does not look likely. Lets stay in the us, where stocks have crept to new record highs. Now Wall Street and investors Around The World are awaiting the latest us jobs figures. Well get the numbers for august in a few hours time. Injuly the us economy added morejobs than expected as employment rose by 943,000 but the figures mainly pre date the rise of the Delta Variant of covid which has led to a surge in infections across the us. The us economy has bounced back strongly from the pandemic but fed Chairmanjerome Powell has said hes monitoring the impact of the Delta Variant to see whether it risks derailing that recovery. Brian coulton is Chief Economist at fitch ratings. Thank you forjoining us asked, good to see you. I guess it was inevitable that the global economic growth would flow from the Breakneck Pace we have seen and the us is spearheading that recovery. How do you rate the risks now facing us economy in particular . Particular . Think you have to remember particular . Think you have to remember a particular . Think you have to remember a couple particular . Think you have to remember a couple of particular . Think you have to remember a couple of thingsj particular . Think you have to remember a couple of things are going on that will drive dynamics going forward, the Peak Physical Support for the economy which is absolutely enormous is behind us, that was in march and april this year, mls had a huge impact on spending. Whatever happens with the infrastructure, it will not be anything like that beast so that will fade over the next 18 months. He mentioned the delta virus, its true that it had a big impact on confidence but when were looking at high frequency data from the us, credit card spending, mobility trackers, lots of dates from april now, its not really showing there is direct impact so far on spending. Its true of lots of countries that the virus dynamics are having a less powerful impact on the economy then they thought, particularly where the Vaccination Process has been making progress. I do not think that delta will be such an impact. That delta will be such an im act. , � , that delta will be such an imact. � ,. , impact. Thats really interesting impact. Thats really interesting what impact. Thats really interesting what you j impact. Thats really interesting what you are impact. Thats really interesting what you are saying and it goes against other views out there. The saying that the Delta Variant is not having much impact on consumer spending. Can you explain how important that is as an underlying driver of the us economy . Massively important, not just economy . Massively important, notjust in the us, but also for the world economy. Everyone watching this all the time. What youve had happening with the us consumer over the last 12 months is that it has been quite fascinating. Broader Base Economy been quite fascinating. Broader Base Economy and been quite fascinating. Broader Base Economy and things been quite fascinating. Broader Base Economy and things add l Base Economy and things add recovery and things have gone back up by april this year and that was fairly steady, not rectangular, and an absolutely enormous switch in that spending towards consumer durable goods, up A0 , nominal terms, relative to pre pandemic levels in the space of 14 pandemic levels in the space of 1a months. Unbelievable increase a lot of this current Supply Chain that you are talking about are related to the pace in which the shifted demand, millers text, income is going up, and he could only go is going up, and he could only 9 up is going up, and he could only go up and spent on staff, and there is no producer on the planet would expect consumer durable spending to rise by 14 and what we are seeing is a Speeding Up caused by the massive switch into durable spending and that is now coming off. , spending and that is now coming off. ,. , off. Really interesting and i know youll off. Really interesting and i know youll be off. Really interesting and i know youll be keeping off. Really interesting and i i know youll be keeping across it and no doubt we will speak to you soon. Thank you for your time today. Stay with us on Bbc News, still to come virtual tour is abbas digital reboot The Shape Of Things To Come for the Music Industry . She received the nobel Peace Prize for her work with the poor and the dying in indias slums. The head of the Catholic Church had said Mother Teresa was a wonderful example of how to help people in need. We have to identify the bodies, then round the coffins and takej them back home. Parents are waiting. And wives are waiting. Hostages appeared, some carried, some running, trying to escape the nightmare behind them. Britain Lost A princess today, | described by all to whom she reached out as irreplaceable. An early Morning Car Crash in a Paris Underpass ended | a life with more than its share of pain and courage, warmth and compassion. This is Bbc News the latest headlines the Death Toll rises from the Flash Floods in the North East of america at least Forty Five people have been killed. A british born member of the islamic State Group pleads guilty to charges of conspiring to murder american hostages in syria. To scotland now where as in the rest of the uk, Department Stores are closing by the dozen as shopping habits change. So what to do with these often iconic City Centre buildings . Drinks giant diageo has given a new lease of life to one store in edinburgh as a centre for whisky tourism. Douglas fraser went to find out more. A new perspective on the capital and on scotch whiskey. The Makers Ofjohnny Walker have invested £185 million the Makers Ofjohnny Walker have invested £185 million to convert the former Phrases Department Store in Princes Street and up Rating Visitor centres at four distilleries around the country that provides spirit for this blend. The most valuable commercial brand to come out of scotland. In this immersive experience, its not enough to sell the product, this is about smelling, tasting, colour and telling a story. Consumers are really looking more and more to understand whats in their product, where it come from, how is it made, who are the people behind it . And certainly as you look at the next generation of consumers coming through, theres going to be an increasing demand. The Whole Distilling Industry has been putting evidence into whiskey tourism. The year before covid it was worth £85 million to Scotlands Economy and growing rapidly. There were nearly 2. 2 Million distillery visits with an average spend of £39. The tourism and of whiskey brought more than 1200 jobs, a 10th of the industry total. Department stores like phrases you have been closing by the hundred recently. Some have been transformed. On the street alone, three other big stores are currently closed and redevelop. City centres face a huge challenge if commuters dont return. It visitor attractions are going to be vital to their help. Lets mix our drinks now and move from whisky to wine. Its a global business thats had little to raise a glass about in the face of covid lockdowns, Trade Tensions and Climate Change. Weve been hearing from the boss of one of the worlds top wine Companies Accolade wines, best known for australian brands hardys, Echo Falls and banrock station. Accolades ceo Robert Foye told Aaron Heslehurst that despite economies opening up, covid has changed the landscape for his business. You have places like australia, where the second company there. They are still in box down as you know in sydney, melbourne and different parts of australia. If you come to the uk, you are 100 opened up but because of the effects of covid and because peoples habits have changed, you really are only at 65 of the level of 2019. So a long way to go. We think that is going to take honestly probably about two years to get to the 90, 90 5 level. Jump over to the us, they are opening extremely fast, and i would say in the us that kind of at the 90 level. Again, some changing habits that will bubbly be there for the next couple of years but it totally differs by geography. Wide it is different, isnt it. Lets talk about Staff Shortages during isolating. And this impact your business because i am wondering, Great Picking for example. Its a fairly labour intensive business, it cant be delayed stop we made a decision to focus on our people, not to lay people off or furlough. And as a result of that we have not had many issues. We have seen issues in Staff Shortages outside of our business with suppliers. Even more importantly is distribution and Truck Drivers, taking things from our plant to depots from Customer Depots to store saws stop we have seen Staff Shortages on premise restaurants. In some customers having a hard time getting back up having a hard time getting back up to full business. We just deal with it as much as we can. But the Staff Shortages are there and is a whole new group of employees that need to be trained when they come in, our customers, to drivers, restaurants and things like that. And viewers on bbc World News can see more of that interview with Robert Foye, ceo of Accolade Wines on talking business with Aaron Heslehurst this weekend. The times are on your screen now with the first airing at 2330 gmt on saturday. As we have been reporting pop Legends Abba are back with Theirfirst Studio Album for A0 years. Abba voyage will be released in november, before a revolutionary set of concerts using virtual avatars of the four created using motion capture technology. The producers are insisting there will be nothing fake about it. There were so many geniuses when i met them and they performed this to perfection of the five weeks, capturing every mannerism and emotion. The soul of their beings. Mannerism and emotion. The soul of their beings. So mannerism and emotion. The soul of their beings. So that of their beings. So that becomes the great magic of this endeavour that when you see this show, it is not a version or a copy of us pretending to be abba, it is actually them. What you are going to see when you come to the show is us. Mark mulligan is Managing Director at Midia Research which analyses the Entertainment Industry does their new stuff live up to the legacy . Dust off the sequence, Here We Go Again stop will it be any good . Certainly utilising the best knowledge available and there has been such pent up demand, and a band, given they havent done anything for decades, a major part of the popular consciousness. They do thing like the shows, they didnt amazing job of keeping the other tied there so there is a lot of pent up demand. Have released a couple of tracks already, havent they . How has it been received . Does the new stuff live up to the legacy . You can certainly tell its them. You can certainly tell its the same songwriting to mix, but its also clearly the band by their own admission. Songs which are out there, looking back at that time together in some ways. So i think it is a different abba but it is still abba. What you make of all of this, these avatars and things. I think it looks like they are off to a game of laser quest. Is this the future of music . We are moving into a hybrid future the music. Live streaming and virtual concerts, all these things have become way more prevalent, many more artists have tried it. Some more successful, some less so. Many artists think, sometimes, i want to do different things, looking at games and other things. There are many different ways of performing live of which this will be one. Do you think people will pay money, money, money, just to see a set of holograms . Money, money, money, ust to see a set of holograms . See a set of holograms . Weve already seen see a set of holograms . Weve already seen it. See a set of holograms . Weve already seen it. Look see a set of holograms . Weve already seen it. Look at see a set of holograms . Weve already seen it. Look at the already seen it. Look at the gorillaz, a virtual band with a huge amount of success and a number of avatar performances of deceased artist. You have to think of it as something different. It is not a live performance where you are seeing the band in the flesh, is something different. But its notjust watching a movie or whatever else, its notjust watching a Movie Orwhatever else, it its notjust watching a movie or whatever else, it is something in between. This is what i mean about the hand of the future. It wasnt so long ago we didnt have 3d and it wasnt so long ago we didnt have surround sound. So many experiences which made it a bit more immersive and this takes this immersion to the next step. Together this band is worth an estimated 1 billion. Its hard to imagine they need the money so why do you think they are doing this . I the money so why do you think they are doing this . They are doing this . I think ou they are doing this . I think you pretty they are doing this . I think you pretty much they are doing this . I think you pretty much answer i they are doing this . I think| you pretty much answer the question with a question. They dont need to do this, they are doing it because they want to. A held for so long because they just didnt feel like they had anything else creatively to bring. And i think it is reinvigorated their creativity and drawn them together, they said it was about being together and preparing for the show, thats what got them recording and writing together again. They havent been together in a creative environment. First and foremost we have this new technology. It was the avatar tour, bringing them together and made them think why not. Really interesting, we will see how it pans out. Im sure there will be a rush for tickets. Thank you very much for your time today. B. You very much for your time toda. �. ~ you very much for your time toda. � w you very much for your time toda. � a. , today. A quick look at the markets today. A quick look at the markets to today. A quick look at the markets to see today. A quick look at the markets to see what i today. A quick look at the markets to see what is i today. A quick look at the i markets to see what is going on across asia. Japanese shares are soaring. Hitting a 3 decade high. The Prime Minister has offered to resign, opening the way for a fresh government that could help the ruling party. Plenty more coming up. Hello there. Were finally going to see some changes to the weather this week and into next week things look quite different. But in the short term we are ending the week on a similar note with this area of High Pressure continuing to bring in a lot of cloud. On a similar note with this area of High Pressure will continue to bring in a lot of cloud across the uk with limited clear spells. There will be a few glimmers of brightness around, particularly Western Scotland in the morning but generally a cloudy start. In to the afternoon favoured spots to see some sunshine developing more Widley Wil again be across scotland, Northern England and parts of Northern Ireland and also Southern England towards South Wales and this is where we will see the highest temperatures in the low 20s. Otherwise where we hold onto The Cloud, it will be around the mid to high teens for most. As we head through Friday Night it looks like its going to be another cloudy one. Across central and northern areas with clear spells across the south. But temperature wise, no more than ten to 1a celsius. We are starting to importing our winds from a more Southeasterly Direction to start the weekend as our area of High Pressure finally begins to retreat eastwards. It looks like it will bring some slightly drier air in from the near continent. We should see will see some holes in The Cloud from The Word go across central and southern areas. Some sunny spells here with further north varying amounts of cloud and a little bit of sunshine but generally a lot of cloud. Could see a few showers across southern and western areas into the afternoon but many places will be dry. Temperatures around 21 or 22 for the high around the high teens though further North And East with The Cloud. For sunday we see this feature runs to the northwest of the country. Thats going to bring thicker cloud, more of a breeze, out breaks of rain, northen irleand, northwest England And Northwest wales later in the day. Some of this ring could be quite heavy. Further south, it is a drier picture for sunday afternoon, lighter winds coming in from france. And we should see increasing amounts of sunshine into the afternoon. Temperatures responding to 2a degrees in the south. Obviously because of more cloud the wind and the rain in the north and not quite as warm. And next week, well will start to import some warmer air the continent and some southern areas across the south on monday and tuesday, given some sunshine we could see those temperatures creeping around the Mid 20 Celsius and a little bit warmer and further north too. Good morning, welcome to breakfast with Sally Nugent and charlie stayt. Our Headlines Today dozens now confirmed dead in Americas Flash floods the president blames Climate Change as the Death Toll rises. Pet theft is to become a new Criminal Offence can a change in the law stop a rise in the number of dog nappings . Foreign Travel Restrictions have been good news for britains Seaside Towns but how they keep visitors coming through the colder winter months . Im in blackpool this morning as they prepare to turn on the eliminations. Victory for england, but the players are subject