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tv   World Business Report  BBC News  April 10, 2024 5:30am-6:01am BST

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official visit to the us. the leaders are expected to focus on cooperation, dealing with china and economic security. but amongst the expected rhetoric, how are relations between the two leaders? last month, mr biden announced that he opposes the planned sale of pittsburgh—based us steel to japan's nippon steel — an issue that could spark tensions. but mr kishida has been defending bilateral investments between the two countries. translation: japan welcomes investments — translation: japan welcomes investments from _ translation: japan welcomes investments from the _ translation: japan welcomes investments from the united i investments from the united states that puts forward cooperation in critical and emerging technology. the economic growth out of territory obtained through investment shall serve as the funding source of further
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investments into the us by japanese entities. last year, japanese entities. last year, japanese foreign direct investment to the united states surpassed $750 billion, making japan the largest investor to the united states for four consecutive years in 2019. japanese businesses operate in more 8500 locations around the us, creating more than1 millionjobs. and in a moment, we'll explore why the nippon deal to acquire us steel is a political headache for president biden. first, let's hearfrom corporate lawyer nick wall, from allen & 0very. he's explained the process for the takeover, which includes a us steel shareholder vote on friday. people are expecting the vote will go through but the threshold is not high so it should go through. then there is the regulatory steps, and
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there are two main aspects of that. even thoughjapan still does not have a very large us market share, i suspect that will be a recess they will get through. the next one is the fdi approval, the so—called severe approval, which the authorities will look at the impact on us security, and i think that is where people are expecting there to be more issues. 0bviously given the nature of the product, steel and its military use, in critical infrastructure, you can certainly see a construct where it is not able to get comfortable with the deal on the basis it could have an impact on us security. let's cross live now to our business reporter sura njana tewari. could you talk us through the domestic political challenges this deal faces in the united states?
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it is overshadowing that visit of the japanese prime minister. some say the deal is on life support and that is because both joe support and that is because bothjoe biden and donald trump have criticised it in a recent weeks. joe biden says the company must remain american owned and operated, and donald trump says he would block the deal if he is elected. remember, this is an election year and both president biden and donald trump need those blue—collar worker votes. the heart of the discourse over the deal is the influential united steelworkers labour union, which traditionally supports president biden. it is based in pittsburgh and opposition from the body has far—reaching implications for the election because pennsylvania, the state where pittsburgh is located, is seen as a key battleground state for the election.
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investors of the company have also oppose the deal and some are concerned about national security, the nippon deal is a big foreign company and there are concerns around a foreign company owning such a big american brand. japan says the deal is not quite dead, although the government has distanced itself, saying it is a commercial matter. as your guest measure, the next big hurdle is regulatory approval and the regulators mightjust take their time when they come to a conclusion after the election in november. thank you very much- _ let's hear now from shihoko goto, who's director of the indo—pacific program at the wilson center. welcome to the programme. how are relations between the two leaders? how cordial are they at the moment?—
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how cordial are they at the moment? �* ., g ., ,., , how cordial are they at the moment? �* ., g ., , ., moment? both the japanese and us government _ moment? both the japanese and us government officials - us government officials declared that relations between the countries has never been stronger, never been better. that is because they are facing similar challenges. they see comes to assessing the security risks that they are facing in the face of rising militant china. china's relations, growing relations with russia, working a strong relation between russia and north korea. this is all a dangerous neighbourhood and both the us and japan want to work more closely together to ensure that further military action is deterred.— further military action is deterred. , . ,. ., , deterred. defence is certainly on the agenda. _ deterred. defence is certainly on the agenda. tomorrow, i deterred. defence is certainly| on the agenda. tomorrow, we have the historic trilateral where the philippines will be joining the two leaders, the
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philippines leader will be part of this historic meeting. why is this so significant for the indo pacific?— is this so significant for the indo pacific? we have seen a rise in the — indo pacific? we have seen a rise in the number— indo pacific? we have seen a rise in the number of- indo pacific? we have seen a. rise in the number of alliances and partnerships in the region. we have seen the quality lateral relationship between the us and japan, australia and india, we have seen a strengthening in relations between japan and strengthening in relations betweenjapan and the us and korea. south korea. now we see the philippines as well. the philippines trilateral will focus more on security agreements in the south china sea, fortjapan, south korea and the us, the focus is much more north korea and stability in the korean peninsula. we are seeing an outreach from australia, the united kingdom and the united states for nuclear technology submarine technology, for the defence
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relations between three countries as well. we are seeing this enhancement with the washington officials, what they call a latticework, networking of relationships see that there is great integrity and greater cooperation. thank ou ve and greater cooperation. thank you very much- _ three months after a door plug blew off a boeing plane mid—flight, the us airplane maker is facing increased scrutiny. now, the federal aviation administration is investigating a whistleblower�*s claims that the company took shortcuts that impacted quality and safety. 0ur north america business correspondent erin delmore has more on the story. a former boeing employee who worked on the 787 accused the company of cutting corners during production and overlooking engineering problems that could weaken the plane's structural integrity. boeing dismissed the claims as inaccurate and reiterated confidence in the 787 dreamliner. meanwhile the company delivered its lowest
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number of planes in the first quarter of year since 2021, just 83 planes down from 157 the quarter prior. boeing executives say the company is slowing down production so that it can improve quality control. but delivery delays are sparking criticism from customers who have little choice to fulfil their needs. boeing and airbus dominate the us market. boeing's shares dropped on tuesday to their lowest point in five months. the latest us inflation figures are due to be published later, with the cpi measure of inflation expected to rise to 3.4% year—on—year — up from 3.2% in february. that may make it harder to justify rate cuts. indeed, the boss of one of the world's biggest banks has warned us interest rates could climb to 8%. jamie dimon, the head oijmorgan chase, said his bank has prepared for interest rates to jump because of "persistent inflationary pressures".
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but the general trend has been towards falling inflation, and the overwhelming expectation is for the federal reserve to cut rates this year. live now to martin baccardax, senior editor of thestreet.com. are you sensing that is the way it will be, there will be cuts? yes, the fed has tried to be as transparent as possible in projecting the kind of rate cuts they would like to see this year, the expectation is for three in the market bets the first will happen injune. because we have seen this strange inflation pattern over the past few months, mark are starting to doubt that some of the information from the fed itself says the rate cuts may not come until later this year. this invoice report is very important because firstly we need to define whether or not
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the trend that we have seen over the past couple of months where inflation is exhilarating is a real one or if it is an aberration, and we also have to say that if we are seeing slowdown in inflation, we would like to know what components are driving that is, whether things like rent, experiences, travel or whether things such as gas prices and energy prices which have been rising around the world as well. it is a complicated story but ultimately we will see rate cuts and now it is a matter of when. ~ ., ., cuts and now it is a matter of when. ~ . ., , when. what we are saying is if inflation does _ when. what we are saying is if inflation does indeed - when. what we are saying is if inflation does indeed show - when. what we are saying is if inflation does indeed show it | inflation does indeed show it has risen, there is uncertainty as to what the data will be looking like in terms of what the factors are?— looking like in terms of what the factors are? yes, precisely ra . the factors are? yes, precisely ray- what _ the factors are? yes, precisely ray- what we _ the factors are? yes, precisely ray. what we have _ the factors are? yes, precisely ray. what we have seen - the factors are? yes, precisely ray. what we have seen in - the factors are? yes, precisely ray. what we have seen in the past few months is that prices for goods and things that we have purchased, cars and furniture in all sorts of things, have been falling consistently and that is usually indicative that the rate hikes at the fed has put into the economy are working.
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services inflation has actually been accelerating, we have seen it in rents, or an equivalent rents, travel costs as well, insurance, education, and also some components of the economy that are the key drivers of growth, so if inflation is exhilarating there, that could be problematic for what the fed is trying to accomplish. that is trying to accomplish. that is the soft landing, the mythical situation where the economy containment inflation without necessarily tipping into recession. the economy has done very well over the past 6-8 done very well over the past 6—8 months in the expectation is a wilson sub will be but maintain that resilience but it will be tested significantly if the inflation pressures we have seen over the past few months which will extend into the summertime.— which will extend into the summertime. thank you very much. the uk's opposition labour party says it plans to crack down on tax avoiders to fund its commitments on schools and the nhs. the shadow chancellor, rachel reeves, says the proposals would help raise an extra £5 billion a year. it comes after the government
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adopted labour's plan to earn extra tax revenue by scrapping the so—called �*non—dom' tax status. so, how will they close the tax gap? our business editor, simonjack, explains what that is and how labour hopes to do it. the so—called tax gap is the difference between what the economy should be generating in tax revenue and what actually gets collected. now, currently, its estimated to be around £36 billion a year. sounds like a huge number but, as a share of the uk economy, it's actually quite small and it's been shrinking over the last 16 years. as you can see here, it'sjust1.5% of gdp. that's much lower than in the us, canada, australia and italy. let's take a closer look. it's a hard thing to tackle. in 2010, the coalition government spent nearly a billion pounds to try and shrink it and, as you can see, it didn't really work. in fact, it started to edge up until 2013, when there was a big
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crackdown on vat fraud and underpayment, which did work, along with the decline of cash as a means of payment also helping. so who is still underpaying? this may be a surprise. small businesses account for more of the shortfall than individuals, criminals, medium and largerfirms combined, partly, say labour, because hmrc is under—resourced and unresponsive, and labour promise more people and better technology. closing the tax gap by much has proved historically difficult and a further clampdown on non—doms has amplified warnings that the globally mobile super—rich will flee to switzerland, dubai or even italy. now, it may be possible to raise an extra few billion a year in five years' time but, the sums involved are just a fraction of the current planned spending cuts to many departments that labour have said they will not reverse. around the world and across the uk, this is bbc news.
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a group of older swiss women have won the first ever climate case victory in the european court of human rights. the women, mostly in their 70s, said that their age and gender made them particularly vulnerable to the effects of heatwaves linked to climate change. the court said switzerland's efforts to meet its emission reduction targets had been woefully inadequate. it is the first time the powerful court has ruled on global warming. live now to justin urquhart—stewart, the founder of regionally, an investment platform. hello. what exactly was this ruling, this case? take us through the specifics. the main elements. _ through the specifics. the main elements. a — through the specifics. the main elements, a group _ through the specifics. the main elements, a group of— through the specifics. the main elements, a group of some - through the specifics. the main l elements, a group of some 2000 women of switzerland who have said that as far as they are concerned they will sit on
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their rocking chairs and do their rocking chairs and do their knitting. they see the government has a specific rights or they have a right to get the government to act more responsibly about global warming to make sure they are in an environment, their life, is still going to be protected. this is an important thing because it means for the first time, the court of human rights, which is why a lot of countries, it made a part of the constitution, not the same in britain, we do not have a constitution in britain, it means that this has to be acted upon. it means controlling the climate, it means further action with regard to climate change in is switzerland they look at their gases, reducing by 10% injust look at their gases, reducing by 10% in just two years, getting companies to change their attitude and also getting other governments to act. this is fine in theory the practical application be difficult. 0ne application be difficult. one thing that the course that is you must act on this in those
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countries, over 30 countries will be obliged to do so but in real terms it will be very difficult for those countries to be able to go along with it because they have other priorities, like inflation and those other things to get the economy going. those other things to get the economy going-— those other things to get the economy going. essentially this is a precedent, _ economy going. essentially this is a precedent, doesn't - economy going. essentially this is a precedent, doesn't it, - economy going. essentially this is a precedent, doesn't it, and. is a precedent, doesn't it, and it will increase litigation. i am trying to work out what happens next?— am trying to work out what happens next? you are right, the makers — happens next? you are right, the makers and _ happens next? you are right, the makers and at _ happens next? you are right, the makers and at the - happens next? you are right, i the makers and at the moment. the lawyers will argue the case one way or the other. practically what countries do other than what they already doing, which is arguing over the levels of damage to the economy and the climate and therefore what they can actually do. while some agree and have signed up to try to make sure we set a temple of the brief level, but wow we have seen from figures, this will be incredibly difficult. put that against other dangerous issues such as the war in ukraine in the middle
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east, what comes first, the climate? it should have people in those issues, it is probably further down the list and even countries like switzerland do act, if you are a small country in the middle of europe and the rest of europe doesn't act, frankly this decision does not cover very much. strong action by a court with the practical application will be difficult unless those governments will enact something to say they will try to make sure this becomes part of their law and take direct action. how popular will that be when it comes to the population who are not so interested in it? inaudible. we have lostjustin. thank you very much. you may have heard of the langauge esperanto. it was aimed at making international communication easier, with everyone able to speak it alongside their mother tongue. well, it didn't really take off. but now, thanks to ai, conversing in another language, or as many as you like,
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has just become a bit of a cinch. here's james clayton. all speaking different languages. the world is more connected than ever. conversations with anyone, anywhere are just a click away. there'sjust one problem — we don't all speak the same language. i really, really wish that i could, but unfortunately i can't speak any other languages fluently other than english. speaks mandarin. speaks french. what if i could speak polish? speaks polish. thanks to new ai apps though, i can give at least the impression of being able to speak pretty much any language. this one is called heygen. so i'm going to speak like this. i do a quick video of myself,
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upload it onto heygen and wait. and then out pops a video of me speaking the language that i chose, in this case spanish. speaks spanish. and here's the really cool bit — when 0mar, the producer on this piece, got into the shot, it detected his voice was different to mine and translated his voice too. you are in shot, my friend. speaks spanish. i've actually managed to fool some friends using this. it really is impressive. in london, one company called synthesia is using this kind of tech to translate ai generated corporate videos into any language. many of these companies, of course, have divisions all over the world whom they need to, it's a sales force maybe that they need to train, right. and with this tool that can create the base material in english, they can then translate it into different localities. but the company's founder says the tech has other benefits, too. we're seeing that with ngos all
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over the world where they can produce video content instead of written content for people who may have a difficult time reading and will do it in local languages. sojust this kind of dissemination of information in people's native language via video and audio, it's very, very powerful. as it gets easier and easier to change the words that come out of our mouths, there's also a worry that this kind of technology could increase the amount of misinformation on the internet. but when it comes to translating educational videos or sending a message to someone in their own language... speaks german. james clayton, bbc news. now, its national siblings day. over the years, there have been plenty of examples of siblings building successful businesses together. the wright brothers, the warner brothers and the versaces are just a few. but is it wise to mix the professional and
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the personal, and can sibling rivalry ruin a business? paul keogh is an adviser to family businesses. he worked with his father in the pub—bar industry and left because his father would not discuss succession. why? | why? i was only a boy with two older sisters _ why? i was only a boy with two older sisters and _ why? i was only a boy with two older sisters and family i older sisters and family businesses is the lack of conversation around succession, and who is going to take over their business in the next generation. in my father's case, if he was alive now he would be 110, and that generation did not really talk about succession planning, so in my case i would have been probably my age now without really having any idea of what the plan was going forward for
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the plan was going forward for the business. i was lucky i got a job with guinness, which my father thought was a trainee job, so i was going to learn the drinks business and come back and work for him. but i did not. thankfully i was the right decision because later in life we got on well, but if we work together we probably would have killed each other. goodness. i will ask my next question! cannot simply rubbery harm businesses, ithink question! cannot simply rubbery harm businesses, i think you can harm lives from the sounds of it! what have you learnt? you have an advisory role at the moment for family businesses. what have you learnt to help family businesses work? it cannot be personal, can it?— personal, can it? no, and thereafter— personal, can it? no, and thereafter a _ personal, can it? no, and thereafter a couple i personal, can it? no, and thereafter a couple of- thereafter a couple of fundamentals. 0ne thereafter a couple of fundamentals. one is we cannot pick a siblings. we are into a family. that is not any
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different to business in general, we do not necessarily get to pick our colleagues and non—family co—workers. that is not that unusual. the other thing is that sibling rivalry can be healthy, the competition growing up, every family has rivalry at some point. it is only when it gets to the point where it is a vicious or people cannot move on where it becomes a problem. i have worked with family businesses were there is rivalry and their reasons conflict but they manage to work together well in the business. there was no wind rule fits all. ideally, if you get on a siblings,...i rule fits all. ideally, if you get on a siblings,...- get on a siblings,... i am sorry but _ get on a siblings,... i am sorry but we _ get on a siblings,... i am sorry but we have i get on a siblings,... i am sorry but we have run i get on a siblings,... i am | sorry but we have run out get on a siblings,... i am i sorry but we have run out of time. so many good questions we could have touched on. thank you very much. you have been
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watching the business use, stay with us, all the top stories coming up at the top of the hour. hello there. tuesday unfortunately brought more stormy weather with it and coastal flooding with the high tides, as well as inland flooding. a brief ridge of high pressure is pushing that low pressure out the way, but the weather fronts are hot off the heels again off the atlantic with more rain to come through the day ahead. this is what we had on tuesday, 60 millimetres and more across beddgelert in north wales. many of the other wettest places seeing 30—110 millimetres of rain. and despite the showers having ease, the rain and the winds through the night and it turns chilly with a touch of frost, potentially a few areas first thing and some mist and fog in the south. already, temperatures are rising in the west ahead of the next band of rain that you may have seen there. so wet through the morning rush across northern ireland,
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underneath this weather front. and as it comes in, it's introducing milder atlantic air. so it will turn misty and foggy over the hills as well as the fog first thing further east. once it sets in across scotland on and off through the day, early brightness and sunshine in the east replaced by that rain as it meanders its way eastwards through the day. you can see it does ease off a little bit in southern parts, but it's got a legacy of cloud left in its wake. so a mild day, where we see any breaks — perhaps 16 in northern ireland. but there's a met office warning for the west of scotland. again, another a0 millimetres, possibly more over the hills. further south, there'll be a steady spell of rain and lots of misty, murky weather over the hills. another pulse comes in through the evening overnight, particularly scotland and northern ireland. it tends to weaken as it pushes southwards, but all the cloud and the wind and the winds will be strong again today, perhaps not as strong as yesterday, but they hold the temperatures up through the night. and a fairly brisk wind will continue with us on thursday. maybe some mist murk first thing, particularly in the south under the remnants of this weather front. but actually, once that clears out the way, we might see some brighter skies and sunshine coming through before the next
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pulse of rain starts to materialise across western parts again. but look at the temperatures on thursday. it's looking mild, in fact, warm in the strengthening april sunshine. and that milder, warmer atlantic air is with us through thursday and indeed friday to end the week, perhaps even start the weekend, but not for long because we get some colder air starting to dig in behind it. and you can see for the weekend or by the end of the weekend, it's a return to slightly cooler weather for most.
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good morning. welcome to breakfast with sally nugent and jon kay. 0ur headlines today... welcome to breakfast with sally nugent and jon kay. 0ur headlines today... with sally nugent and jon kay. children questioning their gender identity are being let down by a "toxic debate" over the subject, according to a major review. former sub—postmaster and leading campaigner alan bates describes post office bosses as "thugs in suits", as he gives evidence to the inquiry into the it scandal. the whole of the postal service nowadays, it's a dead duck. it's beyond saving. bereaved families call for restrictions on newly—qualified drivers, to reduce the number of young people
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killed in road crashes. cost—of—living pressures still biting. debt support charities saying millions are turning to them for help. i'll have all the details. britain's most succesful gymnast max whitlock has told bbc breakfast in an exclusive interview, he's retiring after the paris olympics this summer — and that the games will be his last ever event. he h e m ostly he mostly dry start for many of us. it is chilly with sunshine. the rain in the west will cross all areas through the day. all of the details later in the programme. it's wednesday, the 10th of april. children have been let down by a lack of research and what is described as "remarkably weak" evidence on medical interventions in gender care, according to a landmark review published today.
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paediatrician dr hilary cass, who carried out

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