then grew in the presence of water. that connection had not been known before. what is getting bar r b. b combustor is not at all. is simply contributing to this pace formation process, piqued after midnight, before tapering off as commuters headed to work before 9 am. when the haze was thickest, now that the transformation is understood, it could help city planners and public health and aviation officials. but some say they faced substantial challenges. we don't have infrastructure for white heating. the low income population of the city, we don't have infrastructure gain cooking and they're building it as long as these problems are not solved by much burning is not it's data that may also prove useful to a world that is seeing more wildfires near more population centers every year con baker algebra. ah,

this is our desert, easier, top stories, least 15 people have died on to strong f quake hit on a coast of equitable magnitude 6.8. trema was centered south of 2nd largest city, a jak hill, and also impacted northern rate. is 20 years since the start of the us led invasion of iraq, the topple saddam hussein, up to 300000 iraqis were killed in the war between 20032019. the military operation was launched without un support. south korea and japan are reporting north korea's fide a short range ballistic missiles wet see off the coast of the korean peninsula. tension in the region has increased in south korea in the u. s. began at 11 day joint military exercise on monday. britton's home secretary swell braverman has visited wander, working to expound a controversial deportation agreement with kick garley. under the $146000000.00

deal agreed t last year. when to when accept migrants who arrive in person without permission, no deportations have yet taken place as rights campaign as challenged the legality of the policy in court. or than 45000 people entered britain last year by crossing the channel. the big point here is that there will be a package of high quality humanitarian support for people who will be relocated. trolanda that combined with our robust new laws, will be able to, will enable us to break her business model of the people smuggling, gangs. for me, you as president, donald trump says he expects to be arrested on tuesday in a case linked to a payment made to porn stars storm daniels, who cited what he called illegal leaks, is called on his supporters to protest a cause in pakistan's capital. his counselled, former prime minister,

enron combs arrest warrants, his supposes clash with police outside the court in islamabad. serbian calls of o have failed to reach an agreement to normalize ties onto math and round of talks . also, most prime minister said he was ready to sign the document and blamed set be as leader for refusing to sign off on the plan. as the headline news continues here now to sierra to counting the cost me, ah, [000:00:00;00] i, i hello, i'm molly inside. this is counting the cost on al jazeera, your weekly look at the world of business and economics. this week,

persons financed minister wants to boost the countries economic growth and he's tapping into the nation's vanishing workforce to do that. but will as budget plan help solve the problem. also this week president biden has said that the u. s. banking system is safe, but he's vowed tougher regulations for banks. who's to blame for the collapse of the silicon valley bank and could s v b's failure force a rethink on interest rates. plus australia's deal to buy nuclear submarines is the country's largest single investment ever in defense capabilities. but is the agreement with the u. s. an u. k. worth every cent. ah, the british economy is still as a worse state than it was before the pandemic. one of the reasons they are more than half a 1000000 british workers who have vanished from the u. k workforce since the outbreak of coven 19 despite unemployment being at historic close. now the collapse

in productivity has been crippling blow to the struggling british economy. guessing britain's last employees back to work was the centerpiece of the british finance ministers budget plan. jonah hall has more on this britain's finance minister called it up budget for growth. no shock measures jeremy hunts pre so used last autumn thompson. 2 2 but policies instead intended to restore stability and faith in government after a period of political and economic turmoil. today we face the future with extraordinary potential. the well bank said that a whole big european countries we are the best place to do business. among the measures announced were a series of low tax investment zones to boost productivity in traditionally undefended parts of the country. like here in the west midlands, they were plans to tackle a post covert post breaks it skills shortage,

including help to fund childcare. so the hard press parents can rejoined the labor market and enticements to get some of the more than 8000000 over fifty's who left the job market back to work. you are a retired g p. what would it take to entice you back to it? oh, my peer group was retired. qualify from boss back in 1982. there's nothing that we to go back to work now because i think, you know, there's a point in time that you've done your bit. you've done your best and when you start losing enjoyment in the job, which is what happened in the last 4 or 5 years with continual changes in the us. this feeling of most of us are done a bit and got bent out and move on. i think he's trying to go in the right direction, how successful it's going to be. it's another thing, a question that economists say,

it's too soon to answer. i think it's very important for the government to address the late the, the labor shortages by all means. but to actually look at where the biggest unemployment rate is and at the moment the biggest unemployment rate is not in the over 50. it certainly is between in the 16 to 24 years old. and i haven't seen anything too that the government has done for them. in the short term, of course, the high cost of living remains. britain is most pressing economic problem. and while jeremy hunt did offer more help on energy and fuel costs, in the hope that inflation falls dramatically by the end of the year, more significant items like tax cuts aren't likely to appear until closer to the election. this in the meantime, this budget cannot he raise the fact that economic pain is sent to continue with the i m f, noting the britain will be the worst performing g 7 economy this year, joe, to hold al jazeera in the west. midland. joining me now from london is grace lorden

. she's the director of the inclusion initiative and an associate professor of the london school of economics. many, thanks for your time. grace. the start with a you case that vanishing workforce. why have so many people there not return to work now that coven is over, especially given the cost of living crosses. thank you, molly, for having me on. i really, i really appreciate it. so i guess is kind of 3 groups that have been the focus of jeremy hans budget. the 1st are women who have young children. the 2nd are people who have disabilities. on the 3rd are people who are over the age of 50. and i think if we take the groups of people who over 50 and who have disabilities, the number is of individuals who haven't come back to work have risen after cove. it the exact reason for that is unknown. i think the, the hunt budget is assuming that it's down to pensions so that people who are over 50, for example, have done cost benefit analysis and made an assessment that it's actually worth their wild more to stay at home versus going to work. and the budget tries to

tackled us, i think for people who have disabilities. again, it's looking to see what is the type of work that's actually available to them. in the u. k, there tends to be work that is quite well pays and worked as quite poorly paid. and if you find yourself in the bracket where you are quite pre paid, and if you are managing it stability, it may actually be in your best interest, both in terms of income and well being to stay home. and again, the budget tries to tackle us. and are these the rights sectors of the workforce to focus on in terms of the government they it in the budget doesn't look at the 18 to 25 year old mock at all. well, i think the answer to that is, is, is yes and no. so i think if we think if we take the pressures that are currently on the health education services, tackling the over fifty's is a really good way to go. because it means that people, for example, already are in work consultants. nurses coming to the end of their career might decide to do extra shifts because they're not going over the pension threshold. it also means that people who've decided to come out of the workforce because they've

already saved so much pension and it been negatively affect them to work might actually coming back into the workforce. but i think the answer is no for sectors like accommodation, food services, on construction, where it's unlikely the group, so they've targeted individuals over 50 people with disabilities. and mothers of young children are going to fill the gaps in those sectors. so i think it's yes for those to fall under public service, for private sectors that are struggling to fill employment gaps at the moment, i think the answer is no. to what extent can bringing migrant workers in help the you case labor situation from my perspective migrant workers would solve a lot of the problems that we're seeing in the construction and you know, in the, in the hotel and, and retail sectors. and again, this is something that obviously falls outside drive me home, stream it in, but in the budget. but does feel like that 2nd piece of the puzzle, it feels like he's really taco public service. but where there's these large gaps, construction and in, in hotels, migration will be and relaxing the migration laws to allow more people to enter the

u. k. would be one way to fit our skills shortage. i think the other thing with highlighting is that even those people that are in work in the u. k are pretty unhappy. we've seen thousands of people go on strike over, pay the high cost of living. what did the budget do to address their concerns? the budget doesn't really do anything to address their concerns. and in fact, i know that the m has been a statement put out on behalf of the unions representing some of the n h s. that basically says that they understand that the over fifty's initiatives will help to kind of plug shifts, but it does nothing to plug the, the gap and pay the people are actually looking for, you know, a lot of our nurses, they're underpaid. a lot of our teachers are underpaid within the public health services, and it doesn't really talk of the problems. so at the moment bargaining is happening . it looks like the bargaining would be somewhat successful, probably not getting people what they want and where that money is going to come from is not addressed in the budget. the chancellor said this was a growth budget. a person of course the any g 7 economy yet to regain its pre

pandemic size. do you think the chancellor has done enough to boost economic growth? look, i think this good things in this budget. i think some of the focus is on carbon capture quantum computing. i think the tax breaks for and d are all really good things. i would prefer it's something more and kind of straightforward done to incentivize companies within the u. k. and particularly looking at the corporation tax, one of the benefits that britain has have of coming out of bricks is that they can actually lower the corporation tax like arlene for example, and then choosing not to do it and doing something with capital rebates feels to me like a missed opportunity for jeremy hunt. i think it really comes back to skills. i think if we want to have growth, we need to be an investing in skills. we need to be investing in the right skills. at the moment within the u. k, we spend an incredible amount sending individuals to university a skills that they're choosing are necessarily the ones that are being demanded in the labor force. so i would love to see

a focus on incentives for younger people and older people to study the skills that are needed in the economy, both in the university setting and also in the further education setting. really good to talk to you, grace, lord and director of the inclusion initiative and an associate professor london school of economics. thank you for your time. thank you so much. the silicon is not a buying course, america 16th largest bank and a lender to some of the biggest names in the technology world. but in a stunning 48 hours, s the base fortunes turned its become the largest bank to collapse. since the 2008 financial crisis sending shock waves across the world, now many consumers were concerned about their deposits on the security of the banking system. after the southern shut down, president joe biden had to address the situation and reassure deposited that them money was safe leave because of the actions that are regular already taken. every

american should feel confident, the deposits will be there, if and when they need them. second, the management of these banks will be fired if the bank is taken over by f d, i see the people running the bank should not work there anymore. 3rd, investors in the banks will not be protected. they knowingly took a risk and when the risk didn't pay off, investors lose their money. that's how capitalism works. and for it, there are important questions of how these bank gotten to the circumstance in the 1st place. now the federal deposit insurance corporation, also known as the f d i. c took over silicon valley bank. after failing to find a buyer regulated transfer the bank assets to a special bridge bank, the crisis management. they also closed new york by signature bank. after mounting pressure, the fed then announced a new bank term funding program to help banks borrow when facing emergency

situations. buy stocks have seen a lot of volatility after s v. b collapse, especially smaller banks. on march, 13th, fast republic says, fell. what pings 62 percent? several days later, a credit swish has dropped and all time low after its biggest investor said it couldn't provide any more financial assistance than italian banks like unit credit saw dash as drop as well. businesses in the us move that deposits from small to big banks, executive say that was the biggest movement off deposits in more than a decade. so what went wrong out silicon valley bank? well, during the pandemic, the tech sector enjoyed when full profits and deposited them with s. v be the bank then took that money and invested in bonds or treasury bills. but then of course, inflation hit hard and the fed raise interest rates from virtually 0 to more than 4 and a half percent in the past year. when rates rise, bond price is full. this caused s p b's portfolio to lose significant value. at the

same time, businesses began to withdraw cash to keep the operations running off to start up funding flowed sb be didn't have enough cash on hand, so it's sold it's bonds. as a huge loss, investors became worried about the banks health, causing a run on the bank to talk about these issues in more detail, let's bring in. he roberts few is the director of research and analytics at kwan inside in london. thank you for your time, sir. not given the measures taken to protect banks off to the 2008 financial crisis . why were the problems at sb be not spotted any earlier? yeah, i think that's a very good question. i suspect this one has going to be hard for the very near term, at least because the 1st wave of any crisis is really about. wow, this is a 599, a g s about putting the fire out and the recriminations can start and the 1st order

effect is to ensure there's no systemic risk. no bank run and that's what authorities are going to concentrate on 1st up. but i think the question is entirely valid, and that would be a lot of questions asked about regulators. it does seem in the case of sb be that it was poor management, a concentration of deposit, poll strategy in terms of the, the assets side of the balance sheet. and questions should be asked about why just for them spotting. and what is the connection then between what happened to s b b and what is happening at credit suisse? because my understanding is those are 2 completely different issues. i agree to be from a kind of micro company, specific perspective. they are completely independent, no doubt about that, but there is a common threat and it comes from macro. and the colon thread is the, the rise, the aggressive rise and interest rates that we've seen from the fed in the states from the c,

b in europe. and the common thread there is to fight against inflation. and what happens for the last 12 months, plus inflation has become the overriding enemy. the fed, the c, b will be hiking rates aggressively bad as pushed up short term interest rates. which means that deposit is able to put their money in a money market fund us treasury, or a government bond in europe that yields the same and is backed by a sovereign a country. so there is pressure for deposits. and secondly, rising interest rates has hurt the assets that the banks have owned. treasury bonds, mortgage bonds, government bonds in general. so kind of been hit by a double whammy. but to go back to your question, the common thread is the tightening of monetary policy to fight in cation from global central banks. i understand with when it comes to f, b, b. i mean, that's reasonably small bank when you compare it to credit suisse. if credit suisse

goes, goes down, all we talking lehman scale here, potentially, i think it would in was in the european context because the banking sector, so intertwined and credit research. so integra within the european banking sector. even if it is a bad bank that has got had the scandals and to some degree brought on itself, i don't think the thirty's can afford that credit suisse guy who does the knock on effect would be too broad. and it would be, as you say, a kind of lehman asked movement. but i think, you know, you big lesson from 2008, 2009 was if central banks feel like they have to act, they do have the wherewithal to do so. you know, think about to drag, ease and do whatever it takes moment and to be fancy authorities. no, just the s n b with credit suisse. i've acted very quickly. if you look at how quickly the f d i see stepped in to cover the uninsured depositors. my s. phoebe to 13, have responded pretty quickly in terms of the 1st off effects,

at least. absolutely, they have very quick acts. but despite that, we're still seeing turmoil in the financial markets. why is that? i think your last question is bang on the money is because if the failure of unknown and kind of rumsfeld speak be the, the unknown unknowns. we know the, all these banks have the same exposure to the same basic business mode. and therefore the same problems are i'm in terms of the tracking deposits on the front end and in terms of the asset mix, they hold further out. what we don't know is which banks have employed to right hedges to protect themselves. we don't know which are facing the big deposit right . when the beneficiaries deposit flying to to, to the, to fail banks. the g s. i b is that known in the states globally, systematically important. so there's some stuff we know, but it's the, the fair of over how many other s, b, b are out there. so propelling things here, i just, most basic, remember, markets are driven by greed and fear. and when we're in a bad market, it's the fair that dominates,

and it's the fair of which banks are hiding. is the issue that's driving things and really anything that can stop it. all the authorities providing an effective back stop, which they've certainly done at least the 1st stop. and then in pure market psychology, little bit agreed to come back when you look at some of these distress levels and say, well, know what, i'm quite fancy to school to the upside here and i'm the long plays come back. so those 2 intertwined forces. i think will probably dictate when we can start to think about at the bottom, we talked about the impact, the rising interest rates have had on bank balances. do you think we're at the point that things perhaps are so bad in the financial markets that central banks should actually be thinking about still paying interest rates from going up any farther? on the one hand, yes, when the facts change,

you have to adjust accordingly. and there's no doubt that what's happening with the banks is going to be impact their ability to make new loans. so therefore, it is going to be a tightening of credit conditions and that will sort of through to the real economy . so there is very real danger that the tomo in financial markets will spill over into real economy to employment, to companies. so in that regard, you have to think get bank central banks and stop and take notice. but you have to remember what's different. this time is inflation. inflation is not coming down at the pace that people hoped. and that's the reason that the fed and the c b hiking rates in the 1st place. so trying to marry the, the needs of financial stability that the need to fight inflation is an incredibly tough off. my own personal view would be that they probably still deliver a height probably on the $25.00 for the c, b probably only $25.00 for the fed next week. they then try and separate out what's

called my pro credential. i all the lending facilities in the back. so i was trying to see if they can direct towards the banks to ensure that an accredited remains. okay. and you can see that the, the money market continue to operate as the fascinating to talk to you. he robert starts for such an analytics at kwan inside speaking to us from london. thank you so much for your time. aah! australia wants to operate and build nuclear powered submarines and it's just embarked on one of its most expensive military projects and decades. the countries deal with the united states and britain to acquire the vessels will cost up to $245000000000.00 us dollars over the next decades. now this would make australia, the 7th country in the world with access to such technology. joining the ranks of the us, russia, china, the u. k. france and india. now, under the deal,

australia will receive 3 u. s. virginia class nuclear power submarines from the u. s. within the next 10 years. and it also has an option to buy to more the price tag involves the cost of building the submarines as well as the needed infrastructure and training. now russia and china have already criticized the oak, is packed, saying that it threatens nuclear, non proliferation and could even lead to a new arms race. or joining me now in doha is alex got hopeless. alex is out there is defense, and it's good to see you alex, the money we are talking about here. ease, i'm watering. can the australian government afford this very good question and is touching go, we're talking about a quarter of a trillion dollars over a period of about 25 years. now. australia is about 13 in terms of g, d, p $1.00 trillion per year. and it's currently spends about $30000000.00 on defense

per per year. now it's doable. but if you have a look at the budget, the way it breaks down. so we spend 6 percent on defense, some percent on education, 16 on health and 35 percent on social services. so when you have a multi generational deal like this involving 3 countries that the australian taxpayer is going to have to foot, their invariably will be overruns, cost overruns, the price will expand, and it's going to be the taxpayer that has to foot the bill and that is going to be the real issue here, and of course with australia having a high turnover of prime ministers. who's to say if the deal is actually going to get to its end. and invariably, the army will lose money. the airforce will lose money. and of course low hanging fruit, so with social services and health that seem to be cut in during these times. so why invest all this money on submarines festival? it boose,

australia is combat par dramatically. and this is one of the biggest and jumps in the military technology, australia's ever really experienced. it gives the navy a huge reach your, your budget tree and military thinking is constrained by your geography. now, obviously, australia being an island on the edge of the pacific. it needs long range, everything long range missiles were which aircraft, and of course, a fleet the can actually take the fight the enemy. now the irony is here that the enemy, even though it's never mentioned, is presumed to be china and international relations with china. been declining regionally and also with australia. however, china is australia's biggest partner in terms of trade by an order of magnitude more than the next 3 combined. so it's a useful thing. it's a powerful thing, but it will only be needed will only be useful in terms of a war. and we don't know when that's coming. and it's not just about buying the submarines as it it's,

it's whether australia actually has the capacity and to develop these summaries. yes, very much so, and this is gonna be the issue here. you are effectively creating an entirely new industry. now, australia has a great, an industrial base as a is leaders in artificial intelligence, early as a solar par technology. and it has a fairly small but robust defense, an industrial sector. but you're talking about creating, 1st of all, you have to revamp the ports at perth to be able to allow the visiting virginia class summaries from america. then you have to be able to supply an outfit and maintain your own a fleet of fur over virginia class. submarines the some of the most high li, complicated machines on the planet. and then you're gonna have to build your own, which is going to be a hybrid of australian american british technology that hasn't even been designed yet. so all that is gonna have to be done in australia over the course of the next

25 years. well, china already come out and criticize this, moved a steel. they have warned that a could trigger some sort of arms raised. is that a real concern? those races already there. now it's a chicken and egg situation. she's in ping as always, being concerned with china, being able to protect its own interests, obviously being a global power. therefore, it needs to have a global reach, which is only reasonable on many of the pals and do exactly the same thing. but of course, this is made china's naples nurse. japan is going through a reopen program, south korea's going to it's the same. and also the philippines and australia now is following suit. so the ohms races already own alex, really good to talk to you. our defense analyst alex caterpillar speaking to us there. and that is our show for this week. get in touch with us by tweeting me at mullins, i. e d is the hash tag a j c t c. when you do or of course,

can drop us an email counting the colstat out, is there a dot net ease our address? and as more for your line, al jazeera dot com slash ctc, that will take you straight to our website, which has individual reports, links, an entire episode to begin to catch up on that is it for this edition of counting the cost. i marleen site from the whole team. thanks for joining us. the news on al jazeera coming up next ah ah, louise nurse,

a ah. and he's 15.