Alarm bells are ringing about the outlook for china, but officials remain confident this is a short term blip. Only last month, the chinese premier, li qiang, said his country was still on track to reach its annual Growth Target of around 5 , a modest target after china grewjust 3 last year, one of the weakest showings in nearly half a century. Lets talk through whats at stake with jane foley, head of fx strategy at rabobank. Iam hoping i am hoping she is there. Good morning to you. I am hoping she is there. Good morning to you. Good morning. A fourth month morning to you. Good morning. A fourth month in morning to you. Good morning. A fourth month in a morning to you. Good morning. A fourth month in a row morning to you. Good morning. A fourth month in a row of fourth month in a row of contraction although it is slightly improved from last month, hasnt it . It slightly improved from last month, hasnt it . Month, hasnt it . It has slightly month, hasnt it . It has slightly been month, hasnt it . It has slightly been better month, hasnt it . It has| slightly been better than month, hasnt it . It has slightly been better than the market was expecting but that was really cold comfort. We look at whether manufacturing and the services sector, if we look through those into the Employment Indices that they have, they are very weak and thatis have, they are very weak and that is why many people in china are really very worried because its demand that is weaker, its consumers dont really have the confidence to go out and spend, they are worried about theirjobs, Youth Unemployment is very high, and the Property Market is slumping. That is creating a negative wealth effect. The problem here really is demand. There is no surprise that this economy is going through a bit of a tortuous year because it has just come out of extremely strict covid measures that were in place quite some time, which will have had a huge impact on the economy. Those to suddenly bounce back from that, it was not going be smooth. It bounce back from that, it was not going be smooth. Not going be smooth. It was never going not going be smooth. It was never going to not going be smooth. It was never going to be not going be smooth. It was never going to be easy. Not going be smooth. It was never going to be easy. But| not going be smooth. It was. Never going to be easy. But if you go back to the start of the year when the restrictions were being lit, there was a lot more optimism in the market about how fast china grove. You said quite rightly that 5 , that is the governments Growth Target, is quite a modest target given the lower base. There was some optimism at the start of the year that we would see a better rebound. It has been a surprise to many investors that Consumption Demand in china has been so slow to recover. Presumably, the authorities in china will be introducing measures to try and boost economic growth. That is what is expected isnt it given the numbers we are getting today are numbers we have had in the to today. Are numbers we have had in the to toda. ,. , are numbers we have had in the to toda. ,. , are numbers we have had in the totoda. ,. , , to today. Yes, and that is why the stock to today. Yes, and that is why the Stock Markets to today. Yes, and that is why the Stock Markets today to today. Yes, and that is why the Stock Markets today are l the Stock Markets today are bouncing because they have to come in with some sort of support. But actually there has been a lot of disappointment about the lack of support. To have been measures but these are generally on the supply side so helping companies reduce goods. And there has not been a lot to do to really produce demand for most consumers who remain really very nervous. You have to remember that china is the world was my second largest economy. This does affect us both. For instance, china is germanys largest export partner, and this is feeding back into europe through slow demand for a lot of germanys export good. Demand for a lot of germanys exoort good export good. Ok. We have to kee a export good. Ok. We have to keep a close export good. Ok. We have to keep a close eye, export good. Ok. We have to keep a close eye, that export good. Ok. We have to keep a close eye, that is export good. Ok. We have to keep a close eye, that is forl keep a close eye, that is for sure. Staying with china. Italys Defence Minister said rome made an atrocious decision when itjoined chinas belt and Road Initiative four years ago. Mr Guido Crosetto said the move has done little to boost exports and that italy now needed to work out a way to get out of the deal without harming relations with beijing. Lets cross to our Asia Business hub of singapore where Katie Silverjoins us. This is really interesting. The belt and Road Initiative that is pretty pervasive, even italy is pretty pervasive, even italy is involved. Is involved. Talk us through it. But is involved. Talk us through it but his is involved. Talk us through it. But his right. Is involved. Talk us through it. But his right. It is involved. Talk us through it. But his right. It is is involved. Talk us through it. But his right. It is a it. But his right. It is a multi trillion dollar usually ambitious project that was unveiled by Shenzhen Being back in 2013. Back in 2019, they became the First Western country to do so xijinping. According approaches atrocious and improvised. They said chinas export to italy, the amount china sells to italy has multiplied but it hasnt gone the other way. To give you an idea, the Trade Imbalance has actually been increased to the order of 2 billion now. We are hearing from italian policymakers saying other g7 nations who havent signed up to the belt and road have a better trading relationship. It is about rebuilding the old silk road, that is the ambition of the project, connecting China To Asia and europe and beyond, use infrastructure projects. But critics have said china is using it to spread influence and create issues of debt diplomacy. Certain countries that are huge amounts of money to china for the investment in the likes of ports and bridges and railways, like for example a pakistan, now finding themselves ladled with debt, and that is one of the criticisms of the belt and road. This decision by italy was made under a previous government. And now they are looking at how to break free of it without annoying beijing. They say for example that china is both a competitor and a partner. We will see for example this decision being made apparently by december, thatis made apparently by december, that is what we hear from the Prime Minister was also planning to visit beijing soon. Interesting. Thank you. See you again soon. Lets get some of the days other news now. The day ahead for Prime Minister rishi sunak who is affected to announced millions of pounds of funding for a Carbon Capture project during his visit to the northeast of scotland. Sunak will emphasise the role the region will play in the uks wider Energy Security plans as he meets industry figures this week. The government said scottish schemes will help it grow the economy and meet its 2050 net zero commitment. Ka nye wests account has been reinstated on twitter after an almost eight month ban over offensive tweets. The us rapper, known as � ye, was accused of violating the platforms rules prohibiting incitement to violence. He has not posted anything new since returning to the site, which owner elon musk has rebranded to x. Nigel farage says he has launched a website to stand up for people who have been denied Bank Accounts after the row over his coutts account closure. He said on social media he will fight back against the big banks who have let us down, calling it a scandal. It comes after mr farage obtained a report from the bank which indicated his political views were considered as a factor in his account closure. On sunday, the Panama Canal Authority introduced limits to the number of daily vessels passing through its waters. The authority hopes the move will help conserve water as it battles an ongoing drought. Its not the first time its acted. It recently implemented a series of Drought Restrictions for the waterway with ships limited to the amount of cargo they could carry. Let us discuss this more. Joining us now is stefan legge, who is a lecturer in economics and head of tax and trade policy at the University Of St Gallen in switzerland. A warm welcome to the programme. First of all, can you give our viewers around the world a sense of how big an impact this has on trade, if the Panama Canal Authority doesnt reduce the number of vessels that can pass through . Inaudible but i see this incident rather as a fire signal, a signal of challenges coming ahead because the panama canal very much works like a water bridge, so every ship that comes from one ocean has to be lifted about 26 metres to go through the panama canal and then lowered again, and that requires about 200 million litres of fresh water, which are lost into the sea. And right now, the problem is that there is not enough freshwater because of Climate Change, so in the short term, the impact will be limited but i think it signals that Climate Change will cause problems in the future. So in a way, the panama canal was built a world that increasingly doesnt exist anymore, we need innovation, especially concerning energy and water preserve. So especially concerning energy and water preserve. Especially concerning energy and water preserve. So this is and water preserve. So this is a shortterm and water preserve. So this is a shortterm mashar, and water preserve. So this is | a shortterm mashar, because and water preserve. So this is a shortterm mashar, because of a short term mashar, because of course in the long term, they have got to come up with other solutions, havent they . Exactly. They have to innovate, they have to make sure they dont lose that much freshwater every time a ship goes through, and there are ideas how to do it, but i think it is, again, we are dealing with Climate Change. Instead of anticipating challenges that are coming, we are often responding only when the challenges are right here and already causing trouble. Presumably this will increase the cost, isnt it, for those using the panama canal . Exactly. It is another element in a Serious Development that increase International Trade loss. We have seen an era of globalisation where trade costs fell because of political decisions to liberalise because of reduced transportation costs. Now we see that thinner International Trade costs go up because political decisions, new barriers, new tariffs, but also because of Climate Change causing choke points to be a real problem. We see this right now with the panama canal whether capacity is reduced and the result is that ships can no longer carry as much load, which means that they charge more every container going through. So, yes, costs are going up and consumers will pay more. I going up and consumers will pay more. , , going up and consumers will pay more. ,. , going up and consumers will pay more. ,. ,. , going up and consumers will pay more. ,. ,. , more. I was ust going to say that. We more. I wasjust going to say that. We are more. I wasjust going to say that. We are looking more. I wasjust going to say that. We are looking at more. I wasjust going to say i that. We are looking at another element building inflation, and this problem, this particular problem is not going to be sold anytime soon. Problem is not going to be sold anytime soon anytime soon. Exactly. It is a development anytime soon. Exactly. It is a development that anytime soon. Exactly. It is a development that will anytime soon. Exactly. It is a i development that will increase International Trade costs. Of course companies, shipping con companies are used to this ijy companies are used to this by now, so they have measures in place to mitigate the impact, but there is no way to escape it. Trade costs are going up and that means that when the boats go through that canal, they will get more expensive. Canal, they will get more exoensive canal, they will get more exensive. ,. , ~ expensive. Interesting. Thank ou. We expensive. Interesting. Thank you. We appreciate expensive. Interesting. Thank you. We appreciate your expensive. Interesting. Thank| you. We appreciate your time. Thank you. Cern is one of the most Famous Centres for science in the world. 0n the border of switzerland and france, its High Energy Physics research has helped reveal the secrets of our existence. Spencer kelly was able to get access to the facility, and meet with one of cerns engineers to look at some of the cutting edge robots used there. Iam i am eloise matheson. Welcome to our robotics workshop. This is cern what two, one of our regular robots were using the accelerator complex. Tassies wheel so it can move side to side very easily. We might send robots to an area where a human might not want to go for some reasons like radiation. It has a lot of different senses. Mostly we use cameras. The operator has a more intuitive way of controlling and interacting with the robot. So here you are looking at the beginnings of the prototype of the fcc robot. This could be where the future of cern is going to build a new accelerator that will be 100 kilometres in circumference. In the environment, robots will be important both as tools you can use for inspection and maintenance and repair and also as first responders. This is a novel robotic system we are building that will inspect the inside of Radio Cavities that give acceleration to the beam and it is important that the inner surface of perfectly machined. So we built this robotic system to take thousands of both of photos using a liquid lens camera. Here you have crane bought a crane bot and you can imagine this robot is really useful if we need to act as an area that is very cluttered. When you drop it down from a crane, you are hanging off cable so you have sway in momentum from everything going around but you have these two arms. It is like a human when you have arms to balance yourself. The arms can stop the swaying motion. Around the world and across the uk, this is bbc news. Voiceover bbc news. Bringing you different stories from across the uk. Last minute preparations for the leavers concert and these year 6 pupils at Newford Academy in Stoke On Trent are departing for pastures new on a high. Their school has just been rated as outstanding by 0fsted. Their Learning Plans are actually catered to each individual child, you can constantly see what the child is learning and is striving towards. Nobody falls behind, everyone has a chance to catch up while everything is fresh in their memories. That level of learning is something the school strives for for all 480 pupils. We are ambitious for every child, that they are absolutely given everything that they need, with hard work and resilience that they can achieve whatever they want to. Staff say the passion here for learning will serve these pupils well. For more stories from across the uk, head to the bbc news website. Youre live with bbc news. We have touched on the economic challenges facing china. Let us focus on europe. In a few hours from now, the latest eurozone gdp and Inflation Numbers will be released, which will show how The Cost Of Living crisis is affecting millions of people across the bloc. Last month, Consumer Prices slowed to 5. 5 , mainly due to lower fuel prices. Many analysts will be keeping a close eye on the Second Quarter gdp numbers, after they were flat during the first quarter. Were nowjoined by carsten brzeski, whos the head of Macro Research at ing. What kind of figures are you expecting this morning . Are you gloomy or optimistic . Given where we are coming on from we are a little optimistic, i see the european gdp growing slightly, 0. I optimistic, i see the european gdp growing slightly, 0. 1 on the quarter and i expect inflation to come down somewhat, but in the bigger picture, this has not changed, europe is somehow stuck in stagnation and inflation remains too high. Stagnation and inflation remains too high. That is a problem remains too high. That is a problem not remains too high. That is a problem not just remains too high. That is a problem notjust in remains too high. That is a problem notjust in europej remains too high. That is a problem notjust in europe that many countries, isnt it where inflation is still too high and yet there is just no growth. Germany for example talk us through how the powerhouse of europe is doing right now . Flat europe is doing right now . Not bad and not europe is doing right now . Iirrt bad and not good in all honesty. Germany already had gdp numbers out last week on friday, it is stuck in stagnation because when you look at germany what is happening there, we have the so called cyclical headwinds, what is the impact of higher interest rates, the impact of higher inflation, plus the us economy slowing down and in china not really gaining momentum, on top of that we have all these structural issues that is demographics, the Energy Transition that is changes to global trade and this is somehow keeping germany again, in a Twilight Zone between stagnation and recession. I think it will keep germany therefore a couple of years. Germany therefore a couple of ears. � , germany therefore a couple of ears. � y. , years. And yet the challenges that are facing years. And yet the challenges that are facing germany, that are facing germany, france, the big economies in europe and yet we have had the most difficultjuly for southern europe, many countries dealing with extreme, incredibly high temperatures and what that means, there are so many challenges arent there, currently that these economies are trying to grapple with . The short term fix required to get growth going again and inflation down and then the long term challenges . You are fully right. I think what we do need for europe and other western economies is clearly a bit more future oriented, more positive oriented, more positive oriented gender to reform, to tackle the negative impact from Climate Change, to tackle also the loss and International Competitiveness that especially european economies are currently suffering. But it is very difficult to see such a new reform agenda emerging if at the same time especially many European Countries are sticking to fiscal austerity. I think we will either see a big Investment Boost also coming out of governments, or if we do not see that we will see especially europe, being stuck in stagnation for a long while. Thank you for your time, we will see you again soon. Carsten brzeski there. We will have those numbers coming out of europe and the next few hours, we will update you when we do get those. To india, which boasts over 2 of the Global Semiconductor design talent, has recently attracted investments from Major Players like amd micron to grow its own chip making industry. But can india become a Global Semiconductor manufacturing powerhouse . Nikhil inamdar reports from mumbai. About a year and a half after andy announced a 10 billion Incentive Package for Chip Companies investments finally seems to be coming in. After microns 2. 5 billion movement to set up a Semiconductor Assembly and testing plant a few weeks ago amd has said it will open its Largest Research and development centre. The Prime Minister has said a 50 assistance to set up Chip Manufacturing in the Company Country will mean india see exponential growth in this area. Fox, says it is optimistic about the direction in which india is going on a chip making but industry watchers are more cautious, they say while the Government Supports will allow india to strengthen its presence in the Chip Making Chain Attracting Manufacturing investment will need more work. For companies to commit to Technology Transfers and set up fabrication units, india will need to undertake Structural Reforms such as improving its Business Climate and trade linkages. The country has made some headway on these fronts but there is still a long way to go. Nikhil inamdar, bbc news, mumbai. A big week for new zealand. From tuesday, new zealand will introduce new measures to help restrict vaping amongst young people. The measures range from limits on sales near schools to a ban on some disposable units, as it extends anti smoking regulations. The countrys government plans to phase in the changes over a six month period, as it cracks down on the industry. Were nowjoined by hazel cheeseman, whos the Deputy Chief Executive at action on smoking and health. You are happy with these measures coming into force . It is interesting to see what new zealand are doing and something uk we should be looking at, there are two important pools with what they are doing, first, they are being clear that it first, they are being clear thatitis first, they are being clear that it is important Baby Products be more available than the more lethal products that are Tobacco Products and that they are calibrating their policy to produce reduce use among young people while maintaining availability for adults and that is something we should be looking at in the uk also struggle with an increase in the use of disposable babes around our under 18 � s. It is around our under 18 s. It is notjust around our under 18 s. It is notjust the around our under 18 s. It is not just the uk around our under 18 s. It is not just the uk but around our under 18 s. It is not just the uk but worldwide, Notjust The Uk but worldwide, it is a problem in many countries around the world and the us are very concerned about young people vaping. The us are very concerned about young people vaping young people vaping. There has been an increase young people vaping. There has been an increase in young people vaping. There has been an increase in young been an increase in young people vaping in a number countries linked with the use disposable products, in various countries are looking at different approaches to that, and it is a trickery set of policies to calibrate because on the one hand there is a desire to communicate there are significant harms from vaping which the evidence does not really support, we know vaping is much less harmful than smoking and a valuable aid to quitting, but we dont want to see young people using these products because there is a risk of addiction and potential unknown harms for the future, getting that balance right and policy is really challenging and it is interesting the direction new zealand is going, in terms of being perhaps more liberal in the way products can be bought and sold within specialist vaping shops which adults would only go to while being more restrictive in the retail setting. Retail setting. What kind of regulation retail setting. What kind of regulation do retail setting. What kind of regulation do you retail setting. What kind of regulation do you think retail setting. What kind of regulation do you think we | retail setting. What kind of regulation do you think we will see for the uk . We regulation do you think we will see for the uk . See for the uk . We have been callin see for the uk . We have been calling for see for the uk . We have been calling for a see for the uk . We have been calling for a tax see for the uk . We have been calling for a tax on see for the uk . We have been calling for a tax on disposable | calling for a tax on disposable products, making it more expensive, to reduce their appeal to young people will but Promotional Products needs to be looked at, are very visible in our shops be looked at, are very visible in ourshops in be looked at, are very visible in our shops in the uk in the blending of products as well, we do not need them in many bright colours to be a valuable quitting eight. Those two things together and other availability around Licensing Retailers we do not have a license for the sale of tobacco in the uk. We now have a license for the sale of tobacco. That would bring down the use under 18 s but keep them available as a useful way of stopping smoking for adults. Thank you to much for your time. Hazel cheeseman Chief Executive of action on smoking and health. The top story out of china was the news about its economy, played out in economies, japan up , hong kong up 1. 5 , it is expected now as jane and i were discussing earlier, it is hoped maybe beijing authorities will step in with measures to stimulate the worlds second biggest economy because the Service Sector missed expectations forjuly and Manufacturing Activity weakened as well. These markets also given a boost by us stocks rising sharply on friday, after the Federal Reserve preferred measure of inflation fell to its lowest level since the start of the pandemic. We had a very strong end to wall street, i want to mention something happening this week you will want to be across, is the bank of england, will be meeting. It is highly likely it is expected that the members of the Monetary Policy committee will raise rates to a 15 year high, so the cost of borrowing in the uk could be going up again on thursday following its monthly meeting. The question for many in Financial Markets is, well there is a split on whether it will be a 25 basis increase or a half a percent, that is something we will unpack this week is it progresses. But now, it is goodbye for me. So thank you so much for your time. Ill see you soon. Hello. July has been a very wet month across the uk. And as we look towards the very end of the month, and, indeed, into the start of the new one, well, theres more rain on the way. Spells of wind and rain this week, rather cool as well. Now, looking back at the rainfall weve had so far, these figures are valid up to 10am on sunday. Can see that in preston 285 of the averagejuly rainfall. That means preston has had close to three times the rainfall we would expecting in a typicaljuly. And those figures got a further top up as sunday went on because we saw a band of Heavy Rain Pushing Northwards And Eastwards In Association with this frontal system still with us for monday morning. All tied in with this area of low pressure, which will be wobbling its way eastwards through the day. So a band of Rain Pushing Northwards across scotland, some sunshine, at least for a time in the north of scotland, and then to the south of that, for northern ireland, for england and wales, large amounts of clouds and mistand murk, some splashes of rain and, actually, some really heavy and persistent rain across the Channel Islands that Mayjust Graze into southern counties of england at times. Temperatures 17 21 degrees in most places. So at the 0val for the cricket, i think we are going to see some showers at times. Im hopeful of some lengthy dry spells as well to allow some play to take place. And then as we move through monday nights, well, quite a mishmash of weather. Some areas of clouds, a bit of mist and murk, some splashes of rain. We mayjust see a few more clear spells working into the mix by the end of the night, temperatures of 12 or 13 or iii degrees. Now, tuesday looks set to be one of the drier days of the week. I cant promise its going to be completely dry. Therell still be some bits and pieces of rain, some showers around. But we should at least get to see some spells of sunshine and some decent dry gaps between the showers. Rain, though, youll notice, returning to the Far Southwest of england later in the day. And temperatures at best 17 21 degrees, not particularly impressive for the first day of august. And then for wednesday, well, this deep area of low pressure pushes eastwards. This is a very autumnal looking weather chart. There will be some really strong winds, particularly on the southern flank of this low around the southwest of england, also through the Channel Islands can be very windy indeed. Some outbreaks of rain, and then it looks like staying decidedly cool towards the end of the week. Good morning. Welcome to breakfast with sally nugent and jon kay. 0ur headlines today. Capturing Carbon Dioxide and storing it under the north sea. The governments expected to announce multi Million Pound plans for a new scheme which it hopes will cut emissions. Stuck in hospital when theyre well enough to go home. Some Vulnerable People are waiting months to be discharged because of a lack of home care, according to a a bbc investigation. And posting any letters . Make sure youre using royal mails new bar coded stamps old ones wont work any more after today, and ill be explaining how to get them replaced. Good morning. Its a final day decider for england in the ashes. Theyre hoping to draw the series, but its australia who are in charge going into the last day of play at the oval. Good morning. For many of us, today is going to be cloudy, wet and breezy. Away from the far north of scotland it should remain dry. But later it will brighten up across southern areas. Ill have all the details throughout this mornings programme. Good morning, all. Its monday the 31st ofjuly. The Prime Minister is expected to announce a multi Million Pound Funding Package for a new Carbon Capture project in scotland. The Acorn Project aims to capture Carbon Dioxide emissions and store them under in the north sea
comparemela.com © 2020. All Rights Reserved.