Transcripts For BBCNEWS World 20240704

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We heard that average uk wages were rising at their fastest pace in 20 years. Katharine neiss is chief european economist at pgim fixed income. Thanks very much for being with us today, katharine neiss. So clearly welcomed news that inflation has fallen to this point. Still quite far off the Bank Of Englands target, though. Is everything going to plan or as we had expected . 50. To plan or as we had expected . So, toda s to plan or as we had expected . So, todays data to plan or as we had expected . Srr, todays data are to plan or as we had expected . S57, todays data are not to plan or as we had expected . S513, todays data are not a to plan or as we had expected . Sr3, todays data are not a surprise. It is encouraging, as you say, that Headline Inflation is coming down. No doubt uk consumers will be relieved to see that Energy Prices and food Price Inflation is beginning to cool. But, that said, core inflation, that is a measure of inflation that gives us perhaps a better read on domestic Inflationary Pressures, that is not really showing any signs of coming off and so that means that, while encouraging in this data, we are not quite there yet in terms of seeing inflation really dropping off in a sustainable way. find inflation really dropping off in a sustainable way. Inflation really dropping off in a sustainable way. And uk inflation still well ahead sustainable way. And uk inflation still well ahead of sustainable way. And uk inflation still well ahead of its still well ahead of its International Peers such as the united states, for example. Why is that . ~ , united states, for example. Why is that . , a, , that . Well, the uk is really being hit from both that . Well, the uk is really being hit from both sides. That . Well, the uk is really being hit from both sides. On that . Well, the uk is really being hit from both sides. On the that . Well, the uk is really being hit from both sides. On the one l hit from both sides. On the one hand, the uk has had a very tight labour market, similar to what the us is experiencing. But of course, we are also exposed to the Energy Price Shocks on the back of russias invasion of ukraine in europe, so we are sort of being affected by both of these Double Whammy Impacts on inflation here in the uk. And as a consequence, the Inflationary Pressure here is magnified, compared to the us and the euro area. Sure. So the widespread to the us and the euro area. Sure. So the widespread expectation to the us and the euro area. Sure. So the widespread expectation is the Bank Of England is going to raise the Interest Rates yet again and its next Decision Point is in september. You havent seen anything on todays data or the data over the past few days, that wage later we were talking aboutjust days, that wage later we were talking about just a days, that wage later we were talking aboutjust a moment ago, to dissuade us from that expectation . No, i am afraid not. Dissuade us from that expectation . No, iam afraid not. This dissuade us from that expectation . No, i am afraid not. This latest batch of data, whilst encouraging, it does show that domestic Inflationary Pressure remains uncomfortably high and i would expect that the Bank Of England will make a similar conclusion and continue to raise rates at their next policy meeting. Ok. Katharine neiss of pgim next policy meeting. Ok. Katharine neiss of pgim fixed next policy meeting. Ok. Katharine neiss of pgim fixed income, next policy meeting. Ok. Katharine neiss of pgim fixed income, thanki neiss of pgim fixed income, thank you very much forjoining us with that today. A year ago today, President Biden signed the Inflation Reduction Act into us law. Although inflation is in the name, a big part of its remit was to tackle the climate crisis. It included substantial subsidies for green energy industry, which Ruffled Feathers outside the us, especially in europe. Our correspondent Michelle Fleury has more. Shejoins me now she joins me now from shejoins me now from new york. Michelle, lets talk about the Inflation Part of it first. Us Inflation Part of it first. Us inflation is running at 3. 2 , well below the uk figure that we have just been talking about, so that part of it has worked, hasnt it . Well, look, i mean letsjust go back to this legislation. It actually hasnt done much to get us to that point. And in fact, biden admitted recently that he wished he hadnt called it that. In part, you have to remember at the time when it came into existence, it was when the us was experiencing inflation at levels not seen in some lto years and so, as a result of that, there was this sort of feeling that maybe it needed to reflect that in the name. It is a reflection, if you like, of the politics of the day when it was created. What it really should be thought of is as a really significant piece of Climate Legislation that potentially might have sort of downward pressure on prices in the future, but at its core that, i think, is what it will be remembered for, as a significant piece of american legislation on climate change. Piece of american legislation on climate chance. ~. , climate change. Yes, indeed, america is known for climate change. Yes, indeed, america is known for packaging climate change. Yes, indeed, america is known for packaging all climate change. Yes, indeed, america is known for packaging all sorts climate change. Yes, indeed, america is known for packaging all sorts of is known for packaging all sorts of laws and to individual acts and bills that dont actually have much to do with the title. We are a year into it now. Do you think is it. And lots of introspection obviously as to whether or not it has worked, but really is it too early to say whether or not it is bearing any fruit . ,. , ~ ~ whether or not it is bearing any fruit . ,. , ~ ~. ,. , whether or not it is bearing any fruit . ~. ,. , fruit . Look, i think it has had a seismic impact. Fruit . Look, i think it has had a seismic impact. What fruit . Look, i think it has had a seismic impact. What it fruit . Look, i think it has had a seismic impact. What it does. Fruit . Look, i think it has had a | seismic impact. What it does at fruit . Look, i think it has had a. Seismic impact. What it does at its core is lower prices for american households and companies when it comes to Clean Technology. You know, when it comes to things like the adoption of electric cars and solar panels and the like. And if you look just measurably at what it has done in one year, in 12 months, it has accelerated the pace at which americas adoption of clean energy, Clean Technology is taking place and it has also accelerated the pace at which new projects are moving forward, the sort of, you know, there is a resurgence, if you like, of manufacturing taking place that is being driven by this happening in america right now. So on those two fronts, it has made a big difference. But where you get that sort of International Component is there is concern that these tax credits were perhaps protectionist in some instances and yet, you could argue the converse, which is it spurred a race around the globe, you have a new green deal in europe, you have a new green deal in europe, you have the uk also with its own Climate Policies and tax credits, so it has dramatically had an impact. The question is what comes next, particularly when you look at developing countries, sure. Michelle fleu in developing countries, sure. Michelle fleury in new developing countries, sure. Michelle fleury in new york, developing countries, sure. Michelle fleury in new york, thank developing countries, sure. Michelle fleury in new york, thank you developing countries, sure. Michelle fleury in new york, thank you very l fleury in new york, thank you very much for that. Lets change gears now. Were changing gears now to talk about an electric car maker, which you might never have heard of, which has made its Stock Market Debut and already has a higher valuation than ford and general motors. Vinfast is based in vietnam. It launched on the nasdaq yesterday and shares skyrocketed. The company is now valued at 85 billion, even though its never made a profit and its only made 11,000 cars in the first half of this year, compared with 900,000 for tesla. David bailey is professor of Business Economics at the Birmingham Business school. The university of birmingham. Thank you very much for being with us today. How can a car maker most people have never heard of be worth more than its oldest and most established rivals . The likes of ford, gm, those that are established rivals . I the likes of ford, gm, those that are established rivals . The likes of ford, gm, those that are established rivals . I had heard of it and even are established rivals . I had heard of it and even i are established rivals . I had heard of it and even i am are established rivals . I had heard of it and even i am surprised, are established rivals . I had heard of it and even i am surprised, but| are established rivals . I had heard| of it and even i am surprised, but i think investors are looking for the next big tesla. They are looking for a new entrant that is going to be making electric vehicles and in the case of vinfast, it is backed by the group, which people may not have heard of, but it is a huge conglomerate in the country in vietnam, it is backed by one or the richest investors, and billionaire, and it has big investment and has moved very quickly, back to only set p moved very quickly, back to only set up in 2017, made its first cars in 2019 and has already brought electric vehicles to market, so it is seen as a kind of a dynamic new entry. Lets bear in mind a lot of new car makers listed are subsequently seeing a big fall in value, one other company like this saw a 90 fall in value since it was first listed. Saw a 9096 fall in value since it was first listed first listed. The question, are these because first listed. The question, are these because any first listed. The question, are these because any good . First listed. The question, are | these because any good . That first listed. The question, are i these because any good . That is first listed. The question, are these because any good . That is a reall bi these because any good . That is a really big question these because any good . That is a really big question because these because any good . That is a really big question because that i really big question because that will determine the future of the company. What it has done is started Exporting Cars to the us in very small numbers, but those cars have been absolutely panned by reviewers with big issues over the build quality, about the ride quality, about the technology and the battery rate. Some reviewers even saying, look, dont buy this. You could say, well, this is a new entrant, it is getting new cars to market for the first time. It will make errors and it will have to improve quality, but i think it has made the fundamental marketing mistake in bringing cars to the us market at a similar kind of price to tesla, which has been doing this for a long time now, even though it hasnt got the quality. If it was undercutting tesla by 10,000 or 15,000, you might persuade people to buy them. I think it will have a real problem at this price level, but the bottom line is it has to Fix Thoseissues but the bottom line is it has to fix those issues very quickly. Ok. David baile at those issues very quickly. Ok. David bailey at the those issues very quickly. Ok. David bailey at the university those issues very quickly. Ok. David bailey at the University Of Bailey at the university of birmingham, thank you very much for that. During the pandemic, we all dressed down a bit leisurewear or even pyjamas became business attire, but once restrictions were lifted, theres been a renewed there was a renewed interest in classic dressing. We sent Anders Edenholm to investigate on londons classic menswear street. Newsreel introducing the best dressed street in the world. Savile row was founded here by and most famous tailor of them all, mr henry poole, a few years after the battle of waterloo. My name is simon cundey. I am owner and Managing Director of Henry Poole Co here at 15, savile row. This year we are looking at certainly a good start in the year for the first half. We are going to see, perhaps, a little change, i am sure, as the pent up demand is declining a little bit, shall we say . But nevertheless, people are aspiring to buy something really special for them. And it is a similar story further down the row. When we look at the figures from pre pandemic, i have to think with open arms and think and say, yes, it is very much back there and improved from pre pandemic. Which, i have to say, is rather heartening. But despite this, last year the uks National Statistics agency removed the mens suits from the basket used to calculate inflation. But fear not. They have been replaced with a formaljacket or blazer. What we have found is that we are making a lot more Sports Jackets, blazers, whether it be formal tweeds or lightweight wool mesh jackets, and they have become very popular throughout all regions where we are doing business in. We certainly are seeing change in dynamic of ordering. In dynamic of wardrobe. You know, they would have been buying four suits and two Sports Jackets. Nowadays it is more four Sports Jackets and two suits. But nevertheless, they are being cautious on what they are buying. A big part of the business now, i would say, is about 70 Overseas Market with a 30 uk market. It does change a little bit from year to year on, but the biggest part of that 70 is going to be america, japan. But shopping on savile row is not for the faint hearted. A two piece suit from one of those tailors can cost upwards of 8,000. But both tailors insist that a Handmade Savile Row suit is an investment for the future and that the cost per wear can be even lower than that for a ready to wear one. Theyre built to last. If they are looked after over the course of their lifetime, they can last 20 30 years. They can be adjusted if weight is lost or weight is gained and if required, with some families, they can be passed onto the next generation. So maybe just maybe one of the suits being cut here is still Walking Around somewhere in london. Anders edenholm, bbc news. Thats World Business report until next time, goodbye . To to launch and river trials will take place in the spring of 2025. For more stories from across the uk, head to the bbc news website. Hello from the bbc sport centre. I will perry. England have booked their place in sundays womens World Cup Final after a 3 1win over the co hosts australia in sydney. Ella toone gave england the lead in the first half with a superb strike which found the top corner. Australia responded through their superstar sam kerr starting her first match of the tournament beating mary earps from 25 yards to make it 1 1. Lauren hemp pounced on an australian defensive error eight minutes later to restore englands lead before Alessia Russio wrapped up the victory late on to make sure of their place in the final against spain. Spain is going to be even tougher, i think. Obviously every single game with that we have come into this tournament has been of the highest level, so we have to be ready, but we have been dreaming since we were little girls, so yes, we are excited. We will get recovered and be ready. Excited. We will get recovered and be read. ,. , excited. We will get recovered and beread. ,. ,. , be ready. Youth are strains in the studio. Be ready. Youth are strains in the studi0 you be ready. Youth are strains in the studio. You are be ready. Youth are strains in the studio. You are watching, be ready. Youth are strains in the studio. You are watching, it be ready. Youth are strains in the studio. You are watching, it was i studio. You are watching, it was always going to be tough, wasnt

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