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[00:00:02] Now on BBC News. The latest
[00:00:04] business news from across the globe.
[00:00:06] globe. Business Today. MUSIC
[00:00:15] MUSIC The The price of debt. The yield on US
[00:00:18] US ten year Treasury bonds hits its
[00:00:20] its highest level since 2007. Europe's
[00:00:23] Europe's biggest names in transport transport joined forces to bring
[00:00:26] bring hydrogen powered trucks to
[00:00:28] to the roads. And the food price
[00:00:31] price fall out of the Iran war. Experts
[00:00:33] Experts warn that global cereal prices
[00:00:35] prices could soar by 81%. Hello.
[00:00:39] Hello. Welcome. This is Business Business Today I'm Ben Thompson.
[00:00:42] Thompson. Now rising energy costs costs caused by the war in Iran have
[00:00:45] have been pushing up prices around around the world. That in turn is
[00:00:49] is causing a sell off in the bond bond market. The yield on ten year
[00:00:53] year US government bonds hit its its highest level since 2007. Well,
[00:00:57] Well, that rise in yields comes during
[00:00:59] during a continued sell off in the the US Treasury market, which is
[00:01:03] is estimated to be worth just over
[00:01:05] over $31 trillion in total. It will will push up mortgage rates in the
[00:01:09] the US and make borrowing more expensive expensive for businesses and government.
[00:01:12] government. It comes at a time when when we're expecting Fed Chair Kevin
[00:01:15] Kevin Walsh to raise US interest interest rates this week, as prices
[00:01:19] prices across the US continue to
[00:01:21] to go up. Well, Bob Parker is from
[00:01:24] from Icma Asset Management. He told
[00:01:25] told me what's at stake. In the UK.
[00:01:29] UK. You know, the cost of interest interest debt in the gilt market.
[00:01:32] market. The cost to the government
[00:01:35] government is over £100 billion this this year in, you know, the situation
[00:01:38] situation in America is even more more worrying where interest
[00:01:46] Where interest costs are the second largest item in the American American budget and will exceed 1
[00:01:49] 1 trillion. So the higher bond yields
[00:01:51] yields go and bond yields are going going higher because of what's going
[00:01:55] going on in. As you mentioned, in
[00:01:57] in energy markets. And that feeds
[00:02:00] feeds into higher inflationary expectations.
[00:02:02] expectations. And central banks have have to respond to that by raising
[00:02:06] raising interest rates with The Fed Fed probably raising rates tomorrow.
[00:02:09] tomorrow. Bank of England not necessarily necessarily raising rates this week
[00:02:13] week but certainly in October or
[00:02:16] or later in the year. And the ECB
[00:02:18] ECB has has raised rates twice already.
[00:02:21] already. So higher costs for consumers,
[00:02:24] consumers, higher costs for businesses.
[00:02:26] businesses. And as bond yields go
[00:02:28] go higher we have this sort of catch
[00:02:31] catch 22 this vicious circle in dealing
[00:02:33] dealing with budget pressures. Yes. Yes. And quite clearly that will
[00:02:37] will be thrown into focus when we we hear the budget here in the UK. UK. But particularly, of course,
[00:02:40] course, the politics and the economics economics will come crashing together,
[00:02:44] together, won't they? Not least in in the US for the mid-term elections
[00:02:47] elections and for President Trump, Trump, the cost of borrowing going
[00:02:49] going the wrong way. Absolutely. Absolutely. And you know, the opinion
[00:02:53] opinion polls for the mid-term elections
[00:02:56] elections are not positive for the the Republicans. And, you know, another
[00:03:00] another factor which I think does
[00:03:01] does worry investors is that if the
[00:03:06] the Republicans lose control of the
[00:03:08] the lower the House, then we could
[00:03:10] could end up with a policy gridlock
[00:03:13] gridlock in America. And, you know,
[00:03:14] know, when that has happened in the
[00:03:17] the past, we have had, you know, know, increased volatility in bond
[00:03:20] bond markets. So it's not just the
[00:03:24] the problem of upward pressure on
[00:03:25] on bond yields. Investors face the
[00:03:28] the challenge of increased volatility, volatility, which in turn means that
[00:03:31] that they adopt much more cautious
[00:03:34] cautious positions in terms of their their asset allocation. Bob Parker
[00:03:37] Parker there speaking to me a little little earlier. Now elsewhere, the
[00:03:40] the head of the US Environmental Environmental Protection Agency or
[00:03:43] or the EPA has scrapped rules limiting limiting pollution from coal and
[00:03:47] and gas plants. The agency said it
[00:03:49] it would move to stop future administrations administrations from regulating power
[00:03:52] power plant emissions. It argues
[00:03:54] argues that scrapping rules will
[00:03:57] will save $310 billion and lower lower energy costs. Well, environmental environmental groups warn that the
[00:04:01] the move will harm public health health and accelerate climate damage.
[00:04:04] damage. Here's Lee Zeldin making making that announcement. Today.
[00:04:08] Today. We are repealing the majority
[00:04:10] majority of the burdensome 2024 requirements
[00:04:14] requirements so that Americans can can benefit from our nation's full
[00:04:17] full energy potential. But we aren't
[00:04:19] aren't just stopping with the Biden Biden administration's overreach.
[00:04:23] overreach. We are also proposing proposing to rescind all remaining
[00:04:27] remaining greenhouse gas emissions emissions standards for power plants,
[00:04:30] plants, all of them. Let's talk now now to Samira Hussain, who's following
[00:04:33] following this for us in New York York and Samara. It is a bold move.
[00:04:37] move. The administration says it it will reduce energy prices, but
[00:04:40] but quite clearly not everybody happy
[00:04:42] happy about it. This is a really
[00:04:45] really consequential decision. It It is signalling basically that the
[00:04:49] the United States is saying they're
[00:04:51] they're going to move away from those
[00:04:53] those climate commitments. Now, in
[00:04:56] in terms of major pollutants, power
[00:04:58] power is the second largest pollutant pollutant here contributor to greenhouse
[00:05:02] greenhouse gases. And what the government government is saying is they're saying,
[00:05:06] saying, look, we're scrapping any any rules that we put onto coal and
[00:05:10] and other power plants. And we're
[00:05:12] we're also going to make it difficult
[00:05:15] difficult for next administrations administrations to try and put those
[00:05:18] those levers back in again. And that's that's really significant because
[00:05:22] because a lot of this was put under
[00:05:25] under the Clean the Clean Air Act
[00:05:27] Act and what the government is now now arguing is that it shouldn't
[00:05:30] shouldn't be part of that Clean Air Air Air Act at all. And that would
[00:05:34] would really make it difficult for for other governments or other administrations
[00:05:37] administrations to come after the the Trump administration and try
[00:05:40] try and reinstitute some of those those rules. Yes. And maybe we shouldn't
[00:05:43] shouldn't be surprised because we we know President Trump in the past past has talked about that need to
[00:05:47] to drill for fossil fuels. So maybe maybe this an extension of that,
[00:05:50] that, they say to bring down prices. prices. But yeah, and that's the
[00:05:53] the interesting point, isn't it, it, that this move would potentially
[00:05:57] potentially prevent other administrations administrations being able to change
[00:06:00] change that plan. Right. And then
[00:06:01] then if you look at what the administration
[00:06:04] administration is arguing now, we we heard that Lee Zeldin saying that,
[00:06:07] that, look, it's probably going to
[00:06:09] to save us some more than $300 billion.
[00:06:13] billion. It's not clear how exactly
[00:06:16] exactly that might happen, but it
[00:06:18] it is, of course, the driving principle principle for why the Trump administration
[00:06:21] administration is trying to do this. this. And of course, environmentalists
[00:06:24] environmentalists are saying, well, well, this takes the United States
[00:06:27] States backwards. And it really is
[00:06:30] is going to have a much greater impact
[00:06:34] impact long-term on the environment. environment. Samara, I know you'll you'll follow that for us. For now,
[00:06:37] now, though, thank you. Samira Hussain Hussain there live in New York. Now
[00:06:41] Now Europe's biggest names in transport transport and energy are joining
[00:06:44] joining forces in a major push to to bring hydrogen powered trucks
[00:06:47] trucks heavy trucks onto the roads
[00:06:50] roads by 2030. The firm say that
[00:06:52] that the technology is ready, but
[00:06:54] but the ecosystem around it isn't. isn't. Now, for the first time, they
[00:06:58] they are co-ordinating fleets, fuel
[00:07:00] fuel stations and hydrogen supply supply into a single unified plan.
[00:07:04] plan. Now, full day details of the the programme have been announced
[00:07:07] announced by the company's bosses bosses at the IAA Transportation
[00:07:11] Transportation event in Hannover Hannover as Julia Caesar now reports.
[00:07:14] reports. Heavy duty transport is is one of Europe's biggest remaining
[00:07:18] remaining sources of emissions. Hydrogen Hydrogen has long been seen as a
[00:07:21] a promising solution for long haul,
[00:07:23] haul, heavy duty transport, but progress
[00:07:26] progress has been slow. Without a
[00:07:28] a co-ordinated ecosystem Europe has
[00:07:32] has about 6.5 million diesel trucks
[00:07:35] trucks producing a quarter of all all road transport emissions. Stand
[00:07:38] Stand by any busy road like this this one and you can feel the noise
[00:07:41] noise and pollution that they create
[00:07:44] create while switching heavy trucks
[00:07:46] trucks to hydrogen would mean zero
[00:07:49] zero tailpipe emissions, quieter quieter roads and cleaner long haul
[00:07:53] haul freight. The initiative aims aims to make hydrogen trucks commercially
[00:07:57] commercially viable. That means tackling tackling one of the biggest barriers
[00:08:00] barriers to adoption the total cost
[00:08:02] cost of ownership. Coming together together between different actors
[00:08:05] actors in the ecosystem is so important important because we think that the
[00:08:09] the business case, the technology technology is there and now it's
[00:08:13] it's about really to make sure that
[00:08:15] that we are putting also the right
[00:08:18] right conditions to provide business business models for scaling. The
[00:08:22] The plan includes strategically placed
[00:08:24] placed refuelling corridors along
[00:08:26] along key transport routes designed designed to give operators confidence
[00:08:29] confidence that hydrogen will be be available where and when they
[00:08:32] they need it. Countries and regions
[00:08:35] regions that are driving this agenda
[00:08:38] agenda can combine a competitiveness
[00:08:42] competitiveness resilience or energy
[00:08:43] energy resilience. So to speak. Regional
[00:08:47] Regional security and also competitiveness. competitiveness. And eventually,
[00:08:50] eventually, which is super important important decarbonisation, less pollution
[00:08:53] pollution and less noise when it
[00:08:55] it comes to mobility. Hydrogen offers
[00:08:57] offers fast refuelling, high energy energy density and the ability to
[00:09:01] to keep freight moving without adding
[00:09:03] adding huge battery packs. Experts
[00:09:06] Experts say that shifting these trucks
[00:09:08] trucks to hydrogen is essential if
[00:09:12] if Europe's going to meet its climate
[00:09:14] climate targets. Europe's transport transport sector is preparing for
[00:09:18] for a hydrogen powered future and
[00:09:20] and the race to build it has officially
[00:09:22] officially begun. Julia Caesar, BBC
[00:09:25] BBC News. Elsewhere, the latest employment
[00:09:28] employment data paints a pretty tricky
[00:09:30] tricky jobs market picture here in in the UK. I want to run you through
[00:09:34] through the numbers first of all all for employment. Provisional figures figures show that there has been
[00:09:38] been a slight fall in August compared
[00:09:40] compared to the month before. That
[00:09:43] That represents around 26,000 fewer fewer employees in the workforce. workforce. While the drop has been
[00:09:47] been mainly felt in retail and hospitality,
[00:09:50] hospitality, the quarterly rate of of unemployment remains unchanged
[00:09:53] unchanged at 4.9% in the three months
[00:09:56] months to July. On top of that, job
[00:09:58] job vacancies remain at their lowest lowest level outside of the pandemic.
[00:10:01] pandemic. And if you look at the the wages data, annual growth and
[00:10:04] and employees average earnings, including
[00:10:06] including bonuses, came in at 3.9%.
[00:10:09] 3.9%. That's between May and July, July, unchanged from the previous
[00:10:12] previous period. But the figure is is likely to be a defining factor
[00:10:15] factor in the rise in the state pension pension next April under the triple
[00:10:19] triple lock guarantee, the pension pension will go up by the highest
[00:10:22] highest of either 2.5% inflation inflation or wage growth. So it means
[00:10:26] means that state pensions would go
[00:10:28] go up by nearly £500 a year from
[00:10:31] from next April. Now Labour made made that as a manifesto pledge to
[00:10:34] to keep the triple lock. But economists economists have warned about the
[00:10:37] the cost of the policy and it will will mean tough spending choices
[00:10:41] choices in the budget. So big issues issues facing the government right
[00:10:45] right now. And that is one of the the key things that they will be
[00:10:47] be focusing on ahead of the budget. budget. Now we've talked about global
[00:10:51] global inflation and that has been been driven largely by what of events
[00:10:55] events in the Middle East and global global fertiliser and energy supplies
[00:10:59] supplies are being hit by the closure closure of the Strait of Hormuz that that has raised fears about food
[00:11:03] food prices and food security. The The International Chamber of Commerce
[00:11:07] Commerce says a prolonged disruption disruption could drive global cereal
[00:11:09] cereal prices up by as much as 81%
[00:11:12] 81% above the level seen in 2020.
[00:11:15] 2020. So there could be a big fallout fallout for emerging markets and
[00:11:18] and big questions about the fragility
[00:11:20] fragility of the global supply chain.
[00:11:23] chain. So in Geneva today at the the World Trade Organisation debate,
[00:11:27] debate, they're looking at exactly exactly that and looking at whether
[00:11:30] whether today's global trade rules rules are keeping pace with geopolitical
[00:11:34] geopolitical shocks. Let's talk to to John Denton, who's Secretary General
[00:11:37] General of the International Chamber Chamber of Commerce. John, good to to have you with us. And that number
[00:11:40] number is one that is stark an 81%
[00:11:43] 81% rise in cereal prices. What's What's driving that? Well. Look,
[00:11:47] Look, first of all, thanks for having
[00:11:48] having me on. It's a it's a really really important issue. And I'm so
[00:11:52] so glad that you've identified it it because one of the issues here
[00:11:55] here that we're seeing is a lot of
[00:11:59] of complacency around the asset access access to fertiliser. I mean, the
[00:12:01] the Strait of Hormuz has been primarily
[00:12:04] primarily seen as an energy story, story, whereas the reality is that
[00:12:07] that if you actually look at what's what's happening to fertiliser prices
[00:12:09] prices and I think people did not not realise that of course this is
[00:12:13] is apparent to anyone in business business on a global basis. The amount
[00:12:16] amount of fertiliser that actually actually flew or flows through the
[00:12:19] the Strait of Hormuz, it's something something like 30%. And what we're
[00:12:22] we're actually seeing now is actually
[00:12:25] actually quite a significant hit hit just from a capacity point of
[00:12:28] of view and a supply point of view view to fertiliser. And what we're
[00:12:31] we're seeing is a consequence of of that is demand destruction. And
[00:12:34] And what you're also seeing is a a consequence of the demand destruction destruction is that farmers can't
[00:12:38] can't get access to. And as you say, say, a lot of this is going to be
[00:12:41] be felt and is being felt already already in emerging markets. They're They're going to start changing the
[00:12:45] the way in which they plan, and that's that's going to affect down the track
[00:12:48] track the actual access to food. food. And that's where the challenge
[00:12:51] challenge is to the food value chain. chain. And actually that leads to
[00:12:54] to food insecurity, food scarcity scarcity and ultimately to hunger.
[00:12:57] hunger. And that's what we're trying trying to avert here. And that's
[00:13:00] that's why we're actually very focused focused on getting prominence in
[00:13:03] in moving the complacency out of of the way to get action on this
[00:13:06] this right now. And John, really really briefly in a couple of sentences,
[00:13:10] sentences, where in the world is is most vulnerable right now? Well,
[00:13:12] Well, it's emerging economies. There There is no doubt those economies economies that are most reliant on
[00:13:16] on it and where you've actually got got a lack of fiscal space to do
[00:13:19] do anything about it at all, seeing
[00:13:21] seeing that in particular in emerging
[00:13:23] emerging economies in Asia and in in Africa. John, really good to talk
[00:13:26] talk to you. Sorry to keep it so so short. There's a lot to fit in
[00:13:29] in this hour. But John Denton there there at the International Chamber Chamber of Commerce. That's your
[00:13:32] your business. See you soon. Bye-bye.
[00:14:50] people. For the latest, follow us us on The President's Path here on
[00:14:53] on BBC News. MUSIC
[00:15:08] I was here at the very first
[00:15:11] protest, the party had organised organised about a month ago. And
[00:15:14] And this is so much bigger. Been
[00:15:17] Been driving towards the site of of this wildfire, but we've just just stopped at the side of the road
[00:15:21] road here because of what we saw saw out the window. This man has
[00:15:24] has been pulled out successfully. successfully. It's taken a mammoth
[00:15:27] mammoth mammoth rescue effort. This This morning. You get very little
[00:15:30] little sense of the terrible scenes scenes that were witnessed here last
[00:15:34] last night there. When the story
[00:15:35] story breaks. BBC News. Welcome back.
[00:15:40] back. Now China has warned against
[00:15:42] against turning outer space into into a battlefield and Russia has
[00:15:46] has called for weapons to be kept kept out of space after the US military
[00:15:49] military confirmed for the first first time it has deployed weapons
[00:15:53] weapons in Earth's orbit. Well, Kari Kari Bingen is the director of Aerospace
[00:15:56] Aerospace Security Project at the the centre for Strategic and International International Studies. She