Transcripts For BBCNEWS World Business Report 20240709

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plus, linkedout! microsoft pulls the plug on the business social network in china, the last major western platform still operating there. we start with our top story this hour, those changes to travel rules here in the uk. as you've been hearing, from sunday 24th of october, travellers returning to england will be able to take a lateral flow test instead of more expensive pcr tests. the government says the changes will take effect in time forfamilies returning from half term breaks. under the existing system, pcr tests can be around £75 per person, a cost the travel industry says is putting people off taking trips. let's get some reaction from travel industry consultant paul charlesyou. good to see you. what are your thoughts on all of this? it is not like you can just take up one of the lateral flow tests you might have kicking around at home because it is something your doctor gave you or something from school. they still have to be from a registered supplier, and it will still cost money, so how much changes this really going to make? , , ., ., , to make? yes, they have to be rivate to make? yes, they have to be private tests — to make? yes, they have to be private tests from _ to make? yes, they have to be private tests from a _ to make? yes, they have to be private tests from a private - private tests from a private provider. the costs are somewhere between 25 and £35 for most of these lateral flow or antigen tests. so they are much cheaper than the pcr tests but the government is insisting on that everybody takes by day to when they come back from a trip or enter the uk. so it is progress, definitely it is cheaper, but the very fact you still have to take these tests evenif still have to take these tests even if you are fully charged with a recognised world health organization vaccine, means that it organization vaccine, means thatitis organization vaccine, means that it is still effectively a travel tax on your travels, you are still having to pay something, and if you are a family of four it is still well over £100 for a trip that you might be taking to see granny or a business trip, even. might be taking to see granny ora business trip, even. so might be taking to see granny or a business trip, even. so it is still a long way from the days where we were before the pandemic began.— days where we were before the pandemic began. what is to stop the rice pandemic began. what is to stop the price of— pandemic began. what is to stop the price of these _ pandemic began. what is to stop the price of these lateral - pandemic began. what is to stop the price of these lateral flow- the price of these lateral flow tests from creeping up? it might be £100 today, but it could be £200 tomorrow, but as the ceiling on it? fit, could be £200 tomorrow, but as the ceiling on it?— the ceiling on it? a very good question- _ the ceiling on it? a very good question. the _ the ceiling on it? a very good question. the government. the ceiling on it? a very good - question. the government indeed has not been overseeing the testing industry as well as it should have done, it is an industry worth well over £1 billion, which has grown up in just six months or so. there isn't enough oversight on these, and of course testing providers are putting up the price is based on demand, so that the more people who come back travelling, and there are more people travelling with confidence, the test providers will see the demand increase and therefore put up the cost of the supply. but that shouldn't be any testing in place at all if you are fully jarred. we are now seeing other countries dismantling the testing and hotel quarantine regimes, the latest new south wales in australia overnight essentially saying we are going to get rid of hotel quarantine and home quarantine from the first of november, so i am not sure why the uk government is still holding onto these restrictions which are putting off people from travelling. we should say _ off people from travelling. we should say scott morrison did clarify international travellers will still have to fall under the quarantine rules. ijust wonder what fall under the quarantine rules. i just wonder what you make of britain's over policy more generally. i can go to a packed football match, go on a crowded public transport network, into a pub with no mask and no testing, and a country with the highest infection rates in europe. yet if i want to go to a business meeting in geneva, for example, i have got forms to fill out, test to do, still. does it make any sense, the policy that we have in britain?— have in britain? the policy doesnt have in britain? the policy doesn't make _ have in britain? the policy doesn't make any - have in britain? the policy doesn't make any sense, l have in britain? the policy- doesn't make any sense, bearing in mind the uk is losing out economically, it is an outlier, certainly compared with europe, and the rest of the eu. and these restrictions are simply in place to try to enable the government to try to have some sort of control, remaining control, ever people travelling. but the travel sector is never going to fully recover while these restrictions are in place, the confidence will not be built back and essentially consumers will be put off, especially in the mass market, which is having a stuttering recovery even though most people are travelling. so we need to see his remaining restrictions lifted as other countries are doing, and then the sector can try to get back some sort of normality. try to get back some sort of normality-— try to get back some sort of normali . . . , ., normality. paul charles, thanks for our normality. paul charles, thanks for your time. _ france's finance minister has told the bbc that leaving the single market after brexit has made the supply crisis worse for the uk. bruno le maire has been holding talks with other g7 finance chiefs in washington about the supply issues hitting the world economy. he told our economics editor faisal islam that rising prices are a worry for everyone. but he said eu members have found it easier to plug labour shortages. this is transitory inflation. but the key question is, how long will it last? how long will the transition last? and we are all aware that the direct impact and the negative consequences on households of this increase in prices, especially energy prices, are to be taken seriously, and not underestimating the impact of inflation on households, especially households in our country. especially households in our count . , especially households in our count . ., _ especially households in our count . ., ,_, country. there is obviously a generalised _ country. there is obviously a generalised supply _ country. there is obviously a generalised supply crisis - country. there is obviously a i generalised supply crisis worse than _ generalised supply crisis worse than expected even three or four— than expected even three or four months ago. do you think all countries are dealing with that— all countries are dealing with that in— all countries are dealing with that in the same way? this is, i think, a _ that in the same way? this is, i think, a common _ that in the same way? this is, i think, a common global- that in the same way? this is, i think, a common global risk. we have a strong economic recovery, we have a stronger economic recovery than expected, and this explains why you have such shortages on materials, semiconductors, where you are facing these bottlenecks.— bottlenecks. and you think bein: bottlenecks. and you think being part _ bottlenecks. and you think being part of _ bottlenecks. and you think being part of the _ bottlenecks. and you think being part of the single - being part of the single market, which the uk is no longer, _ market, which the uk is no longer, is _ market, which the uk is no longer, is helping you adjust to these _ longer, is helping you adjust to these challenges? i longer, is helping you ad'ust to these challenges?fi longer, is helping you ad'ust to these challenges? i think it is helping _ to these challenges? i think it is helping us _ to these challenges? i think it is helping us because - to these challenges? i think it is helping us because we - to these challenges? i think itj is helping us because we have access to otherjob markets when you are asking for some more people in restaurants, hotels, for truck drivers, for instance, you have access to other labour markets, and i have been discussing that with my friend rishi sunak very long now, because we are facing the same situation but the fact we are members of a very important single market helps us facing these bottlenecks.— these bottlenecks. when you lurk out your _ these bottlenecks. when you lurk out your friends - these bottlenecks. when you lurk out your friends across l lurk out your friends across the — lurk out your friends across the channel, united kingdom, and you — the channel, united kingdom, and you hear about global britain, _ and you hear about global britain, what that meant three years— britain, what that meant three years ago— britain, what that meant three years ago was doing more trade deals— years ago was doing more trade deals and — years ago was doing more trade deals and perhaps having more reliance — deals and perhaps having more reliance on some of these countries. how do you reflect on how— countries. how do you reflect on how the uk looks from across the channel?— the channel? when you have a careful look — the channel? when you have a careful look at _ the channel? when you have a careful look at the _ the channel? when you have a careful look at the current - careful look at the current world situation, you have on one side of the us, on the other side, the rise of china. then there's one single place left. and this will not be for the uk. this will be for europe. let's be clear about that. we need huge financial investments that no country can make when you want to invest for wind hydrogen, you not talking about1 billion euros or10 talking about1 billion euros or 10 billion euros, you are talking about 60, 70 billion euros. when you are talking about being more independent in the production of semiconductors, you need to put 50 billion euros on the table just to build new plants for the production of chips, which means that between china and the us, once again, there is one single place left and i think it will be for europe. bruno le maire referred to staff shortages there. let's stay with that issue because the uk government is offering hundreds of emergency visas for butchers to come to the uk. industry leaders say brexit and the pandemic have led to an exodus of east european workers from the meat processing industry. and they've warned that staff shortages mean healthy pigs are having to be destroyed rather than processed for food. farmers kate moore and vicky scott have been speaking to the bbc�*s danny savage. there were some tense moments waiting for details of today's announcement about assisting pig farmers. it announcement about assisting pig farmers— pig farmers. it is making me feel a bit _ pig farmers. it is making me feel a bit sick, _ pig farmers. it is making me feel a bit sick, actually. - pig farmers. it is making me. feel a bit sick, actually. when the preposal_ feel a bit sick, actually. when the proposal came _ feel a bit sick, actually. when the proposal came to - feel a bit sick, actually. when the proposal came to employ| feel a bit sick, actually. when - the proposal came to employ 800 foreign witches and make available more cold storage for carcasses, attention turned to relief. it carcasses, attention turned to relief. , ., relief. it is a positive, definitely. _ relief. it is a positive, definitely. they - relief. it is a positive, definitely. they are i relief. it is a positive, - definitely. they are listening to us and hopefully they are going to help us. i to us and hopefully they are going to help us.— to us and hopefully they are going to help us. i think it is definitely — going to help us. i think it is definitely a _ going to help us. i think it is definitely a positive, - going to help us. i think it is definitely a positive, the - definitely a positive, the private _ definitely a positive, the private storage is a good thing. _ private storage is a good thing, because if the butchers don't — thing, because if the butchers don't come in, as many as they want, _ don't come in, as many as they want. at — don't come in, as many as they want, at least we can still kill pigs— want, at least we can still kill pigs and they can still be useful— kill pigs and they can still be useful to —— for food. are kill pigs and they can still be useful to -- for food. are you confident _ useful to -- for food. are you confident now _ useful to -- for food. are you confident now that _ useful to -- for food. are you confident now that you - useful to -- for food. are you confident now that you will i useful to -- for food. are you | confident now that you will not have to cull pigs on farm. for us, have to cull pigs on farm. for us. hepefully _ have to cull pigs on farm. for us, hopefully this _ have to cull pigs on farm. er?" us, hopefully this has come quick enough. never bristol two weeks away. but i don't know how quick they can get private storage up and running. government has said it has listened to concerns about labour in the pig industry, and denies acting too late.- denies acting too late. what have identified _ denies acting too late. what have identified through - denies acting too late. twist have identified through talking to industry over the last ten daysis to industry over the last ten days is that labour is an aggregating factor. we can act to solve that problem by having these temporary visas and that is what we have decided to do. on this east yorkshire farm, there are caveats to the positive response to tonight's announcement. this plan has to work and it must be in place soon. ~ , , soon. we needed this in place 12 weeks ago _ soon. we needed this in place 12 weeks ago now. _ soon. we needed this in place 12 weeks ago now. it - soon. we needed this in place 12 weeks ago now. it is - 12 weeks ago now. it is essential we get some stuff in there asap. there are farmers unfortunately already coming pigs because of overstocking on farms, so we need them now. very disappointed it has taken them so long to come to this decision, to these arrangements. we as farmers should never have been put in this position. this really was not a problem. this is a processing problem. and we have been left to deal with the whole emotional and financial issues. , , ., issues. the test is now whether the badly needed _ issues. the test is now whether the badly needed foreign - the badly needed foreign workers will want to come, and be operational, withinjust workers will want to come, and be operational, within just a few weeks. danny savage, bbc news, driffield. swetha ramachandran is an investment manager at gam investments. for yea rs for years now, the policy response from government to any labour shortage has been, this is new, business. you sorted out, up skill re— skill workers, you pay them more money, and the problem will disappear. i mean, is there an admission now with these visas that the labour problem is broader, deeperand that the labour problem is broader, deeper and far more urgent than the government had led us to believe?— led us to believe? yes, absolutely. _ led us to believe? yes, absolutely. i— led us to believe? yes, absolutely. i would - led us to believe? yes, absolutely. i would say| led us to believe? yes, - absolutely. i would say that even before the pandemic, there was an acknowledgement that the uk, the skills gap was quite wide, which has worsened with the pandemic, because workers have fundamentally changed their views about the industries and locations they would like to work in, and now we are grappling with all of that as the labour market tries to adjust. we saw from the ons on tuesday that we have a record high number of vacancies, at 1.2 million. this is as the employment force is now at record highs as well, 29.2 million. but it does suggest that there are roles that are left to be filled which are urgent, whether longer term solution is not necessarily going to prevail in the short term.— necessarily going to prevail in the short term. now, we have been hearing _ the short term. now, we have been hearing from _ the short term. now, we have been hearing from kate - the short term. now, we have been hearing from kate and l been hearing from kate and vicki, the pig farmers there. i am wondering whether or not this programme of visas and getting people in in emergency situations is even going to work. if you look at what is happening with the hgv drivers, and the hope that people would come from abroad, to come in and drive our lorries, that isn't really happened, that hasn't happened at the speed at which industry has needed. do you think we are going to get the people we need over the next six months? it the people we need over the next six months?— next six months? it is questionable, - next six months? it is| questionable, because next six months? it is - questionable, because the labour shortage the uk is facing is not unique to the uk. this is common across the european union, canada, the us, advanced underdeveloped economies are reporting the same thing. so if a european worker had the choice of may be working on a single market with more flexibility versus the uk, thatis more flexibility versus the uk, that is of course a question, because we are competing for the same pool of labour is the single market would be. we had, we know that _ single market would be. we had, we know that over _ single market would be. we had, we know that over 7000 - single market would be. we had, we know that over 7000 healthy | we know that over 7000 healthy pigs were cold for nothing. they are never going to make it onto the supermarket shelves. we know milk has been poured down the drain because there are not lorry drivers around to take it out and deliver it to homes. how much has been lost, how much has been wasted, by clinging to an ideology for too long before abandoning it entirely in favour of something completely different?- completely different? these labour shortages _ completely different? these labour shortages are - completely different? these j labour shortages are making their way now post pandemic, on their way now post pandemic, on the plus side, the uk economy is now more productive than it was pre—pandemic, labour productivity has gone up. we will need a period of adjustment, we will go through adjustment, we will go through a period across the next 6— nine months that we are dealing with this, and the way this is going to shoppers in consumer price inflation. we already seeing the of goods go up. labour is in a better position now to command higher wages but it also needs to be seen how much those higher wages will now be eroded by higher inflation because of the shortage of actual goods on the shelves because of the reasons you mentioned. brute shelves because of the reasons you mentioned.— shelves because of the reasons you mentioned. we will have to leave it there. _ you mentioned. we will have to leave it there. thank _ you mentioned. we will have to leave it there. thank you - you mentioned. we will have to leave it there. thank you very l leave it there. thank you very much for your insight and your time today. let's stay with the supply crisis, because bosses in industries from toys to construction to meat are warning of delays and rising prices, because of blockages at ports and a shortage of truck drivers. emma simpson has been speaking to a bicicyle manufacturer in wales that is struggling in the run up to christmas. they sell everything they make, and bicycles are in big demand. this is the warehouse and normally there would be 25,000 on the shelves in the shelves of before but we don't have a knife bikes for christmas, and disappointing. knife bikes for christmas, and disappointing-— disappointing. disappointing for mums — disappointing. disappointing for mums and _ disappointing. disappointing for mums and dads? - disappointing. disappointing for mums and dads? mums| disappointing. disappointing . for mums and dads? mums and dads, for mums and dads? mums and dads. the _ for mums and dads? mums and dads, the shops _ for mums and dads? mums and dads, the shops and _ for mums and dads? mums and dads, the shops and four. - for mums and dads? mums and dads, the shops and four. thisl dads, the shops and four. this production _ dads, the shops and four. this production line _ dads, the shops and four. this production line is _ dads, the shops and four. this production line is running at half speed. they rely on parts from all over the world and are waiting on three containers of tires from south korea.- tires from south korea. tires should have _ tires from south korea. tires should have come _ tires from south korea. tires should have come straight i tires from south korea. t as should have come straight here and they won't make it till mid november. and they won't make it till mid november-— and they won't make it till mid | november._ they november. they are late? they are very late — november. they are late? they are very late and _ november. they are late? they are very late and we _ november. they are late? they are very late and we cannot - are very late and we cannot make 5000 bikes. and if that wasn't bad enough, the shortage of drivers means they are struggling to get the bikes to the shop. struggling to get the bikes to the sho.�* , ,, , struggling to get the bikes to the sho-.�* , ,, ,., the shop. businesses are grappling _ the shop. businesses are grappling with _ the shop. businesses are grappling with a - the shop. businesses are grappling with a whole i the shop. businesses are i grappling with a whole host of different issues right now and for some, this festive season is turning into a logistical nightmare and the government is under growing pressure to make sure the wheels do not come off this christmas. costs for businesses are also piling up. britain's biggest chicken producer is warning the days of low food prices are coming to an end. and for some businesses, it could be a bumpy ride ahead at the busiest time of year. emma simpson, bbc news, pontypool. janet godsell is professor of operations and supply chain strategy at loughborough university. i want to pick up on the last point there, the largest poultry seller is saying food is too cheap and i have chickens myself and i know how much it costs to deal with them, to how them and medical issues, avian flu restrictions and lockdowns as the seat of seasonal migrations, other price of consumer goods too low for the economic systems we have in place?— have in place? food in particular— have in place? food in particular has - have in place? food in i particular has potentially have in place? food in - particular has potentially been too cheap. the way that supply chains are set up, is that we have consumers, retailers, processes and then the actual farmers although the manufacture across those chains and sometimes the retailers cannot control the price in a way or buffer consumers against price increases up the chain but what we're seeing now with an unprecedented in raw material prices and also in the logistics prices is that the ability of manufacturers and retailers to buffer the consumer is coming to an end and some of those price rises will have to be passed on to the consumer.— will have to be passed on to the consumer. broadening this out a little _ the consumer. broadening this out a little bit _ the consumer. broadening this out a little bit here, _ the consumer. broadening this out a little bit here, to - the consumer. broadening this out a little bit here, to what i out a little bit here, to what is going on here in terms of trade, i know the price of containers have skyrocketed, gone up ten times in the last two years alone and how profitable is international trade these days? i profitable is international trade these days?- profitable is international trade these days? i think we've seen why prices _ trade these days? i think we've seen why prices have _ seen why prices have skyrocketed and it comes down to rules of supply and demand. in the early stages of the pandemic we saw a slight dip in global shipping as we stopped purchasing certain items like clothing and cars, some stayed the same and others went up but what we're seeing now as we go into these different of recovery phase while we're with covid is that the demand for many products have been stimulated and stimulated to levels beyond which we have ever seen and so we see huge demand for products which also causes huge demand for logistics and historically we tended to think about manufacturing and logistics quite separately and each being optimised in their own right. but what we're seeing now is the need to integrate and think about these things together and when we have shortages, we see price rises as people scrambled to get hold of those rare sources. to get hold of those rare sources-— to get hold of those rare sources. , . ., ~ , ., ., sources. janet, thank you for our sources. janet, thank you for your time- — stay with us on bbc news, still to come: seeing red over the green pass. italy brings in some of the world's strictest workplace covid rules but will they do the economy more harm than good? parts of san francisco least affected by the earthquake are returning to life, but in the marina area where most of the damage was done, they are more conscious than ever of how much has been destroyed. in the 19 years since he was last here, he has gone from being a little—known revolutionary to an experienced and successful diplomatic operator. it was a 20—pound bomb i which exploded on the fifth floor of the grand hotel, i ripping a hole in the front of the building. this government will not weaken. democracy will prevail. it fills me with humility and gratitude to know that i have been chosen as the recipient of this foremost of earthly honours. this catholic nation - held its breath for the men they called the 33. and then, bells tolled i nationwide to announce the first rescue and chile let out an almighty roar. - this is bbc world news, the latest headlines: add day of mourning in lebanon after violence broke out in beirut, leaving six dead. australia's most populous state, new south wales, is opening international borders to vaccinated citizens for the first time in 18 months. microsoft is shutting down its business social network, linkedin, in china, saying having to comply with the chinese state has become increasingly challenging. it comes after the career—networking site faced questions for blocking the profiles of some journalists. another american social media company has to come to the pressures of offer raiding in china, citing a significantly challenging environment and greater components, linkedin has agreed to bail on china instead offering uses in the country a new app that would show a jobs only version of the site called injobs, made available later this year but it will not include a social feed of the ability to share or post articles. other social media feed of the ability to share or post articles. other social media sites feed of the ability to share or post articles. other social media sites like feed of the ability to share or post articles. other social media sites like twitter feed of the ability to share or post articles. other social media sites like twitter and facebook have been blocked for many years and google are operations in china more than a decade ago. linkedin was the last of the remaining major american social media companies operating in china. let's go to italy now where some of the strictest workplace covid rules come into force today. all workers must hold a green pass, showing proof of vaccination, a negative test or recovery from the virus. anyone without one faces suspension from work and stoppage of pay and a fine of up to 15 hundred euros. but some businesses say that rather than encouraging vaccination, the rules will cause more major disruption to the economy. professor michele geraci is a former undersecretary of state at italy's ministry of economic development. why do some people think this will cause more harm than good? low the general perception is that the green path is discriminatory on the basis of income, like you say, you can obtain the green path either through the vaccine all the covid test that needs to be done every two days. the vaccine must be free but the testis vaccine must be free but the test is paid by the individuals. so the rich people can choose, they want the vaccine, get the test but the poor people cannot afford the testing. poor people cannot afford the testinu. , ., , .,, testing. they would be obliged to do the vaccine _ testing. they would be obliged to do the vaccine or _ testing. they would be obliged to do the vaccine or like i i to do the vaccine or like i said face a problem with the salary and employment. this has been perceived as is discriminatory, nature based on income, against the principle of a society that really needs to help each other. to of a society that really needs to help each other.— to help each other. to think the measures _ to help each other. to think the measures will— to help each other. to think the measures will actually l to help each other. to think. the measures will actually be in force to? i the measures will actually be in force to?— in force to? i think the government _ in force to? i think the government is - in force to? i think the government is may i in force to? i think the government is may be j in force to? i think the - government is may be conceded in terms of timing but not principal. they may extend for some specific categories of workers and a of today it may be a few days later but there will be disruptions because these laws are really polarised society so the government is very strong and very much focused on making sure that this happens and this may not actually incentivise people to take more vaccine. it can be counter—productive because those who don't want to take the vaccine and do not have the money to afford the testing they probably prefer not to go to work but still be around in society. that would be a little bit of a problem for the health. ., ,,., health. professor... i will have to — health. professor... i will have to cut _ health. professor... i will have to cut you _ health. professor... i will have to cut you off, i health. professor... i will| have to cut you off, thank health. professor... i will i have to cut you off, thank you for your time today and thank you very much for your time on bbc news. international viewers, more coming up. hello. a chilly start to friday across the north of the uk. we've had a cold front gradually working its way southwards through thursday. that's been bringing some outbreaks of rain. and as its name implies, behind it, we've got colder air, so likely to see a touch of frost through parts of northeast scotland and northeast england to start the day on friday. further south, still holding onto this milder air through parts of south wales and into southern england. and it's here we've still got that frontal zone through friday morning, so cloudier, maybe the odd patch of rain. most of that will have fizzled out. through the afternoon, the cloud should thin and break here. and for all of us, we should see some good spells of sunshine during friday. just more cloud pushing into northern and western scotland through the afternoon. temperatures lower here, just nine or 10 celsius the top temperature. certainly a fresher feel compared to friday. 13 to 15 celsius further south, perhaps 16 across southwest england. but it's a fine end to the day for most, late spells of sunshine before cloud piles in across the north and west of scotland overnight, also into northern ireland and western parts of england and wales too. further east is where we'll have the clearer skies and once again a cold night, particularly for northeast scotland and northeast england, where we could see a few pockets of air frost. but this brief autumnal chill doesn't last for long. as we head into the weekend, we've got further frontal systems approaching from the west. and with those, we'll see a return of the milder air across much of england, wales and northern ireland on saturday and eventually back up into scotland on sunday. so let's take a closer look at saturday, which overall will be a cloudier day compared to friday. most will be dry, the odd patch of rain, but some rain will arrive into northern ireland as we head into the late afternoon. temperatures starting to recover on saturday, but still a fairly cool feel across the far northeast of england and into scotland. and on sunday, this frontal system will slide its way across and begin to weaken — look what's happening out into the west. but on sunday, we're likely to see some showers, maybe some longer spells of rain. but come the afternoon, looks like the rain will begin to ease and we should see a few spells of sunshine developing. temperatures back up into the mid, if not high teens and starting to feel a little bit less chilly across scotland as well. but as we move into next week, it will be mild, yes, but we're also likely to see some frequent showers or longer spells of rain. goodbye. good morning, welcome to breakfast with charlie stayt and naga munchetty. our headlines today. plans to let foreign lorry drivers make more deliveries in the uk, as the government tries to keep the supply chain moving. thousands of domestic abuse cases in england and wales are dropped, because prosecutors ran out of time to bring charges. good morning. tap and go — for more. you can now spend up to £100 every time you use a contactless card — but not everyone is happy. i'll look at what you can do if you're worried about the rise in the payment limit. # go easy on me, baby

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