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00:00:02Now on BBC News. The latest
00:00:04business news from across the globe.
00:00:06globe. Business Today. MUSIC
00:00:15MUSIC The The price of debt. The yield on US
00:00:18US ten year Treasury bonds hits its
00:00:20its highest level since 2007. Europe's
00:00:23Europe's biggest names in transport transport joined forces to bring
00:00:26bring hydrogen powered trucks to
00:00:28to the roads. And the food price
00:00:31price fall out of the Iran war. Experts
00:00:33Experts warn that global cereal prices
00:00:35prices could soar by 81%. Hello.
00:00:39Hello. Welcome. This is Business Business Today I'm Ben Thompson.
00:00:42Thompson. Now rising energy costs costs caused by the war in Iran have
00:00:45have been pushing up prices around around the world. That in turn is
00:00:49is causing a sell off in the bond bond market. The yield on ten year
00:00:53year US government bonds hit its its highest level since 2007. Well,
00:00:57Well, that rise in yields comes during
00:00:59during a continued sell off in the the US Treasury market, which is
00:01:03is estimated to be worth just over
00:01:05over $31 trillion in total. It will will push up mortgage rates in the
00:01:09the US and make borrowing more expensive expensive for businesses and government.
00:01:12government. It comes at a time when when we're expecting Fed Chair Kevin
00:01:15Kevin Walsh to raise US interest interest rates this week, as prices
00:01:19prices across the US continue to
00:01:21to go up. Well, Bob Parker is from
00:01:24from Icma Asset Management. He told
00:01:25told me what's at stake. In the UK.
00:01:29UK. You know, the cost of interest interest debt in the gilt market.
00:01:32market. The cost to the government
00:01:35government is over £100 billion this this year in, you know, the situation
00:01:38situation in America is even more more worrying where interest
00:01:46Where interest costs are the second largest item in the American American budget and will exceed 1
00:01:491 trillion. So the higher bond yields
00:01:51yields go and bond yields are going going higher because of what's going
00:01:55going on in. As you mentioned, in
00:01:57in energy markets. And that feeds
00:02:00feeds into higher inflationary expectations.
00:02:02expectations. And central banks have have to respond to that by raising
00:02:06raising interest rates with The Fed Fed probably raising rates tomorrow.
00:02:09tomorrow. Bank of England not necessarily necessarily raising rates this week
00:02:13week but certainly in October or
00:02:16or later in the year. And the ECB
00:02:18ECB has has raised rates twice already.
00:02:21already. So higher costs for consumers,
00:02:24consumers, higher costs for businesses.
00:02:26businesses. And as bond yields go
00:02:28go higher we have this sort of catch
00:02:31catch 22 this vicious circle in dealing
00:02:33dealing with budget pressures. Yes. Yes. And quite clearly that will
00:02:37will be thrown into focus when we we hear the budget here in the UK. UK. But particularly, of course,
00:02:40course, the politics and the economics economics will come crashing together,
00:02:44together, won't they? Not least in in the US for the mid-term elections
00:02:47elections and for President Trump, Trump, the cost of borrowing going
00:02:49going the wrong way. Absolutely. Absolutely. And you know, the opinion
00:02:53opinion polls for the mid-term elections
00:02:56elections are not positive for the the Republicans. And, you know, another
00:03:00another factor which I think does
00:03:01does worry investors is that if the
00:03:06the Republicans lose control of the
00:03:08the lower the House, then we could
00:03:10could end up with a policy gridlock
00:03:13gridlock in America. And, you know,
00:03:14know, when that has happened in the
00:03:17the past, we have had, you know, know, increased volatility in bond
00:03:20bond markets. So it's not just the
00:03:24the problem of upward pressure on
00:03:25on bond yields. Investors face the
00:03:28the challenge of increased volatility, volatility, which in turn means that
00:03:31that they adopt much more cautious
00:03:34cautious positions in terms of their their asset allocation. Bob Parker
00:03:37Parker there speaking to me a little little earlier. Now elsewhere, the
00:03:40the head of the US Environmental Environmental Protection Agency or
00:03:43or the EPA has scrapped rules limiting limiting pollution from coal and
00:03:47and gas plants. The agency said it
00:03:49it would move to stop future administrations administrations from regulating power
00:03:52power plant emissions. It argues
00:03:54argues that scrapping rules will
00:03:57will save $310 billion and lower lower energy costs. Well, environmental environmental groups warn that the
00:04:01the move will harm public health health and accelerate climate damage.
00:04:04damage. Here's Lee Zeldin making making that announcement. Today.
00:04:08Today. We are repealing the majority
00:04:10majority of the burdensome 2024 requirements
00:04:14requirements so that Americans can can benefit from our nation's full
00:04:17full energy potential. But we aren't
00:04:19aren't just stopping with the Biden Biden administration's overreach.
00:04:23overreach. We are also proposing proposing to rescind all remaining
00:04:27remaining greenhouse gas emissions emissions standards for power plants,
00:04:30plants, all of them. Let's talk now now to Samira Hussain, who's following
00:04:33following this for us in New York York and Samara. It is a bold move.
00:04:37move. The administration says it it will reduce energy prices, but
00:04:40but quite clearly not everybody happy
00:04:42happy about it. This is a really
00:04:45really consequential decision. It It is signalling basically that the
00:04:49the United States is saying they're
00:04:51they're going to move away from those
00:04:53those climate commitments. Now, in
00:04:56in terms of major pollutants, power
00:04:58power is the second largest pollutant pollutant here contributor to greenhouse
00:05:02greenhouse gases. And what the government government is saying is they're saying,
00:05:06saying, look, we're scrapping any any rules that we put onto coal and
00:05:10and other power plants. And we're
00:05:12we're also going to make it difficult
00:05:15difficult for next administrations administrations to try and put those
00:05:18those levers back in again. And that's that's really significant because
00:05:22because a lot of this was put under
00:05:25under the Clean the Clean Air Act
00:05:27Act and what the government is now now arguing is that it shouldn't
00:05:30shouldn't be part of that Clean Air Air Air Act at all. And that would
00:05:34would really make it difficult for for other governments or other administrations
00:05:37administrations to come after the the Trump administration and try
00:05:40try and reinstitute some of those those rules. Yes. And maybe we shouldn't
00:05:43shouldn't be surprised because we we know President Trump in the past past has talked about that need to
00:05:47to drill for fossil fuels. So maybe maybe this an extension of that,
00:05:50that, they say to bring down prices. prices. But yeah, and that's the
00:05:53the interesting point, isn't it, it, that this move would potentially
00:05:57potentially prevent other administrations administrations being able to change
00:06:00change that plan. Right. And then
00:06:01then if you look at what the administration
00:06:04administration is arguing now, we we heard that Lee Zeldin saying that,
00:06:07that, look, it's probably going to
00:06:09to save us some more than $300 billion.
00:06:13billion. It's not clear how exactly
00:06:16exactly that might happen, but it
00:06:18it is, of course, the driving principle principle for why the Trump administration
00:06:21administration is trying to do this. this. And of course, environmentalists
00:06:24environmentalists are saying, well, well, this takes the United States
00:06:27States backwards. And it really is
00:06:30is going to have a much greater impact
00:06:34impact long-term on the environment. environment. Samara, I know you'll you'll follow that for us. For now,
00:06:37now, though, thank you. Samira Hussain Hussain there live in New York. Now
00:06:41Now Europe's biggest names in transport transport and energy are joining
00:06:44joining forces in a major push to to bring hydrogen powered trucks
00:06:47trucks heavy trucks onto the roads
00:06:50roads by 2030. The firm say that
00:06:52that the technology is ready, but
00:06:54but the ecosystem around it isn't. isn't. Now, for the first time, they
00:06:58they are co-ordinating fleets, fuel
00:07:00fuel stations and hydrogen supply supply into a single unified plan.
00:07:04plan. Now, full day details of the the programme have been announced
00:07:07announced by the company's bosses bosses at the IAA Transportation
00:07:11Transportation event in Hannover Hannover as Julia Caesar now reports.
00:07:14reports. Heavy duty transport is is one of Europe's biggest remaining
00:07:18remaining sources of emissions. Hydrogen Hydrogen has long been seen as a
00:07:21a promising solution for long haul,
00:07:23haul, heavy duty transport, but progress
00:07:26progress has been slow. Without a
00:07:28a co-ordinated ecosystem Europe has
00:07:32has about 6.5 million diesel trucks
00:07:35trucks producing a quarter of all all road transport emissions. Stand
00:07:38Stand by any busy road like this this one and you can feel the noise
00:07:41noise and pollution that they create
00:07:44create while switching heavy trucks
00:07:46trucks to hydrogen would mean zero
00:07:49zero tailpipe emissions, quieter quieter roads and cleaner long haul
00:07:53haul freight. The initiative aims aims to make hydrogen trucks commercially
00:07:57commercially viable. That means tackling tackling one of the biggest barriers
00:08:00barriers to adoption the total cost
00:08:02cost of ownership. Coming together together between different actors
00:08:05actors in the ecosystem is so important important because we think that the
00:08:09the business case, the technology technology is there and now it's
00:08:13it's about really to make sure that
00:08:15that we are putting also the right
00:08:18right conditions to provide business business models for scaling. The
00:08:22The plan includes strategically placed
00:08:24placed refuelling corridors along
00:08:26along key transport routes designed designed to give operators confidence
00:08:29confidence that hydrogen will be be available where and when they
00:08:32they need it. Countries and regions
00:08:35regions that are driving this agenda
00:08:38agenda can combine a competitiveness
00:08:42competitiveness resilience or energy
00:08:43energy resilience. So to speak. Regional
00:08:47Regional security and also competitiveness. competitiveness. And eventually,
00:08:50eventually, which is super important important decarbonisation, less pollution
00:08:53pollution and less noise when it
00:08:55it comes to mobility. Hydrogen offers
00:08:57offers fast refuelling, high energy energy density and the ability to
00:09:01to keep freight moving without adding
00:09:03adding huge battery packs. Experts
00:09:06Experts say that shifting these trucks
00:09:08trucks to hydrogen is essential if
00:09:12if Europe's going to meet its climate
00:09:14climate targets. Europe's transport transport sector is preparing for
00:09:18for a hydrogen powered future and
00:09:20and the race to build it has officially
00:09:22officially begun. Julia Caesar, BBC
00:09:25BBC News. Elsewhere, the latest employment
00:09:28employment data paints a pretty tricky
00:09:30tricky jobs market picture here in in the UK. I want to run you through
00:09:34through the numbers first of all all for employment. Provisional figures figures show that there has been
00:09:38been a slight fall in August compared
00:09:40compared to the month before. That
00:09:43That represents around 26,000 fewer fewer employees in the workforce. workforce. While the drop has been
00:09:47been mainly felt in retail and hospitality,
00:09:50hospitality, the quarterly rate of of unemployment remains unchanged
00:09:53unchanged at 4.9% in the three months
00:09:56months to July. On top of that, job
00:09:58job vacancies remain at their lowest lowest level outside of the pandemic.
00:10:01pandemic. And if you look at the the wages data, annual growth and
00:10:04and employees average earnings, including
00:10:06including bonuses, came in at 3.9%.
00:10:093.9%. That's between May and July, July, unchanged from the previous
00:10:12previous period. But the figure is is likely to be a defining factor
00:10:15factor in the rise in the state pension pension next April under the triple
00:10:19triple lock guarantee, the pension pension will go up by the highest
00:10:22highest of either 2.5% inflation inflation or wage growth. So it means
00:10:26means that state pensions would go
00:10:28go up by nearly £500 a year from
00:10:31from next April. Now Labour made made that as a manifesto pledge to
00:10:34to keep the triple lock. But economists economists have warned about the
00:10:37the cost of the policy and it will will mean tough spending choices
00:10:41choices in the budget. So big issues issues facing the government right
00:10:45right now. And that is one of the the key things that they will be
00:10:47be focusing on ahead of the budget. budget. Now we've talked about global
00:10:51global inflation and that has been been driven largely by what of events
00:10:55events in the Middle East and global global fertiliser and energy supplies
00:10:59supplies are being hit by the closure closure of the Strait of Hormuz that that has raised fears about food
00:11:03food prices and food security. The The International Chamber of Commerce
00:11:07Commerce says a prolonged disruption disruption could drive global cereal
00:11:09cereal prices up by as much as 81%
00:11:1281% above the level seen in 2020.
00:11:152020. So there could be a big fallout fallout for emerging markets and
00:11:18and big questions about the fragility
00:11:20fragility of the global supply chain.
00:11:23chain. So in Geneva today at the the World Trade Organisation debate,
00:11:27debate, they're looking at exactly exactly that and looking at whether
00:11:30whether today's global trade rules rules are keeping pace with geopolitical
00:11:34geopolitical shocks. Let's talk to to John Denton, who's Secretary General
00:11:37General of the International Chamber Chamber of Commerce. John, good to to have you with us. And that number
00:11:40number is one that is stark an 81%
00:11:4381% rise in cereal prices. What's What's driving that? Well. Look,
00:11:47Look, first of all, thanks for having
00:11:48having me on. It's a it's a really really important issue. And I'm so
00:11:52so glad that you've identified it it because one of the issues here
00:11:55here that we're seeing is a lot of
00:11:59of complacency around the asset access access to fertiliser. I mean, the
00:12:01the Strait of Hormuz has been primarily
00:12:04primarily seen as an energy story, story, whereas the reality is that
00:12:07that if you actually look at what's what's happening to fertiliser prices
00:12:09prices and I think people did not not realise that of course this is
00:12:13is apparent to anyone in business business on a global basis. The amount
00:12:16amount of fertiliser that actually actually flew or flows through the
00:12:19the Strait of Hormuz, it's something something like 30%. And what we're
00:12:22we're actually seeing now is actually
00:12:25actually quite a significant hit hit just from a capacity point of
00:12:28of view and a supply point of view view to fertiliser. And what we're
00:12:31we're seeing is a consequence of of that is demand destruction. And
00:12:34And what you're also seeing is a a consequence of the demand destruction destruction is that farmers can't
00:12:38can't get access to. And as you say, say, a lot of this is going to be
00:12:41be felt and is being felt already already in emerging markets. They're They're going to start changing the
00:12:45the way in which they plan, and that's that's going to affect down the track
00:12:48track the actual access to food. food. And that's where the challenge
00:12:51challenge is to the food value chain. chain. And actually that leads to
00:12:54to food insecurity, food scarcity scarcity and ultimately to hunger.
00:12:57hunger. And that's what we're trying trying to avert here. And that's
00:13:00that's why we're actually very focused focused on getting prominence in
00:13:03in moving the complacency out of of the way to get action on this
00:13:06this right now. And John, really really briefly in a couple of sentences,
00:13:10sentences, where in the world is is most vulnerable right now? Well,
00:13:12Well, it's emerging economies. There There is no doubt those economies economies that are most reliant on
00:13:16on it and where you've actually got got a lack of fiscal space to do
00:13:19do anything about it at all, seeing
00:13:21seeing that in particular in emerging
00:13:23emerging economies in Asia and in in Africa. John, really good to talk
00:13:26talk to you. Sorry to keep it so so short. There's a lot to fit in
00:13:29in this hour. But John Denton there there at the International Chamber Chamber of Commerce. That's your
00:13:32your business. See you soon. Bye-bye.
00:14:50people. For the latest, follow us us on The President's Path here on
00:14:53on BBC News. MUSIC
00:15:08I was here at the very first
00:15:11protest, the party had organised organised about a month ago. And
00:15:14And this is so much bigger. Been
00:15:17Been driving towards the site of of this wildfire, but we've just just stopped at the side of the road
00:15:21road here because of what we saw saw out the window. This man has
00:15:24has been pulled out successfully. successfully. It's taken a mammoth
00:15:27mammoth mammoth rescue effort. This This morning. You get very little
00:15:30little sense of the terrible scenes scenes that were witnessed here last
00:15:34last night there. When the story
00:15:35story breaks. BBC News. Welcome back.
00:15:40back. Now China has warned against
00:15:42against turning outer space into into a battlefield and Russia has
00:15:46has called for weapons to be kept kept out of space after the US military
00:15:49military confirmed for the first first time it has deployed weapons
00:15:53weapons in Earth's orbit. Well, Kari Kari Bingen is the director of Aerospace
00:15:56Aerospace Security Project at the the centre for Strategic and International International Studies. She