the name of publishing reports saying this is not an urgent problem. could we have changed the course of the climate to emergency? air is dying of last futures on outages era. the hello i'm adrian said again, this is counting the cost on. i'll just 0 you'll. we can look at the world of business digital things this week, a pivotal moment for the us economy. the federal was a cops interest rates for the 1st time since 2020. so how will that affect americans and the rest of the world? the cost of 10 drugs on the medicare insurance or the u. s. as low a big pharma says, the price controls could hurt the development of medications,

but when it's china is retirement, age is among the world's lowest, but that's about to change. so why is paging making its label forced work longer? it is seen as the cleverest signal yet, but the central banks, a winning the fight against inflation. the u. s. federal reserve joined the other banks around the world and lo. busy during the cost of borrowing with a bigger than expected cost of half points, the policy shift by the fed box of turning points in the economy. i am for americans who have suffered for the high cost of living over the past few years. the feds been trying to strike a balance between cub in price increases and not touching the economy in the process, while prices have eased. the victory may not yet be complaints. the next question the fed missed onset is how quickly it will come rates again to avoid the recession, but without fueling inflation comes on the home and reports size. searching for the rest of the landing for the us economy. the federal fees are lower interest rates

for the 1st time in more than 4 years. with the us labor market showing signs of weakness. the federal reserve helps this move with a shock with the economy. today, the federal open market committee decided to reduce the degree of policy restraint by lowering our policy interest rate by a half percentage point. this decision reflects our growing confidence that within appropriate re calibration of our policy stands. strange in the labor market can be maintained in a context of moderate growth and inflation moving sustainably down to 2 percent. before these rec of defense had great interest rates 11 times since at the 2022 banks, both of us consumes and company suffered the average interest rate on credit cards jumped on near all time high, rising from 16.34 percent in march 2022 to more than 20 percent today.

the higher rates at the desired effect. and the inflation rate is from a peak of 9 percent to 2.5 percent. but the job market slowed on the us economy now is for an integer session. if the economy is not in a recession, the market tends to go up roughly 10 to 1210 to 15 percent. and if we are in a recession, the market tends to go down about 1015 percent. so really is 2 different, drastic dif, different and binary outcomes. uh, from a potential standpoint, in terms of what the stock market may be doing in terms of the reaction. despite the cuts and rates the hood had for policy because the us economy remains on setting us. have them have the data for counting the cost. joining us now from this bundle is jameel. i'm out whose chief analyst at online trading brokerage g t secretary. but this again, it was a big a cost. many of us had expected. what do you make of it? indeed, it wasn't richard. in fact, it was

a logic interest rate cut. the analysis of the economist expects the line with the fed leaving by note when 5 percent of 9. and the interesting thing actually got injured was that the fed us central bank was supposed to get this party started or the trade journey towards lower interest rates in 2024. we were expecting for the timeframe for an interest rate up to occur as early as lanes and early 2024. that's how long we do my trip to the states. but in fact, the c, b, the opiates central bank, the bank of england, a develop central bank is have or stocks at this basi, but the fed tried to stop last night with a bang. i'm buy stocks and his legs. why did the fact move so late? is because of step and us with inflation. i've always such a use of metaphor for inflation. we need to look at as the diets inflation was close to double digits in the us as early as late as 2 years ago. and it was around

10 percent. so it needed to lose a lot of weights and i sometimes you get when it comes to a diet, as we move towards the 3 percent. we lost a lot of weights about for january, up until recently, that weight loss stored around the free present level. it was only this month, indeed, the inflation starts to move towards the middle cheapest. that's the allowed the fed to finally pull the trigger. but if we compare it to the likes the yoke in union and the united kingdom, inflation has trended back towards that 2 percent target sooner, which is why they weren't able to move 1st. but the fed has moved last, but it is also moved by the big the interest rate. but i had no point 5 percent against be obviously moved by no point you 5 percent. so how fine a line is the fed treading now, what are the dangers of, of the, the us forwarding into recession. that's a long way away. aged last year the us economy was prince and growth because similar to emerging markets of one point,

it was close to 5 percent. even this share seems to around the $2.00 to $3.00, but some level um we have to also take into account the us economy, instructed somewhat differently. consumer spending accounts for the lodgers component of us to the bay and could serve as a store spending in the us. however, they say there's no smoke about bio. and recently from august onwards, we have had a balance and an economic dates up, such as 2 week long comp, payroll reports, which is the monthly employment reports they come in much worse than expected. and some of the i a, some dates are signals that global weakness is impacting the us. so we do have some concerns with us economic events and bullying. but i, recession, there was a long way away if the opposite tool, of course we better say better, but those are all by the fed. moved from larger than expected is also try to provide the message that is in control of the situation and is prepared to provide the medicine for low interest rates. that the us economy might need to understand

some potential pressures is going to face between now and the end of 2024 until you expect the fed to move again in the coming months before the end of the dipping into account that the stage moved aggressively last 9, i'm financial markets were expected 100 basis points moves to share. that means one percent have an interest rate call the fed as possibly the. i know that they have moved more than we expected. we could expect for that to be what the interest rate over the course and the remainder of the share. it also comes down to the economic data. but the federal show last night is prepared to be aggressive. so now the inflation c is the big controls. we have to look out for the non fun payrolls and bolts, which are a bunch of camera view, is the monthly job for books that come out in the 1st friday every 3 months. we have to look at the us consumer data and the p of my data. but i do expect to fetch me one more time overall unlikely before the us presidential election pull out,

which i think is gonna make the global outlook. and the fed outlet much from one player up to 2025 on woods. right, so the us economy is the largest in the world. what does the rate cuts in the united states main for the rest of us? what we have to consider that it was actually the us interest rates that moved 1st after the russia and ukraine crisis because the inflation shock that we haven't seen in decades. so the fed being able to move to such an extent that provide some confidence that hopefully no knowledge see is resume. and of course there's been mid to thousands where we have the global financial crisis. all of us globally got use to low interest rate policy. i know that and many of us have not seen interest rates close to 5 to send in a generation and hold for many viewers in the lifetime. so now the defect is starting to move and us rates are starting to move. it does provide some confidence that matters might be getting back to normal, but i still think the newer normal will be a more moderates or higher interest rate. want to say,

i don't think we're going to go back to was the one percent we might need to set to somewhere around 3 percent interest rate policy. but hopefully that gives some confidence to award economic but nice. and that does need some supports to mean it's always great to talk to you manufacturing data being with us again, on counting the cost. a democrats presidential nominee a couple of hours just hoping that low a drug costs could help her. we know the votes as americans pay more for prescription drugs than anyone else. and at least 33 high income countries. in 2022 . the annual cost of those medications was around $1400.00 for each person. the bite in harris administration has reached an agreement with drug makers to lower prices on the 10 costly as drugs under medicare health insurance. the deal is expected to save millions of enrollees around $1500000000.00 and out of pocket costs in the 1st year. well, the agreement which will take effect in 2026 as part of sweeping changes on the

binding signature, economic package, the inflation reduction act, property price has been in effect last year. medicare would have saved $6000000000.00. the pharmaceutical industry has unsuccessfully trying to find a voltage to stop the negotiations. pfizer, among other companies as well in the lower drug prices, will affect innovation and how the development of cancer, drugs, and treatments for other diseases. we're drunk, like a say that developing a new drug costs billions of dollars and involves a trial and error process in which many ideas failed to make it to market that supports as of the bites and how his drug price reform point to the industries sky high profits, the global pharmaceutical industry generated almost $1.00 of the half trillion dollars in revenue in 2022 last year drug manufacturer, a bristol myers squibb posted 45000000000 dollars in revenue. not reported around $60000000000.00 in sales, and johnson and johnson rating. bolden,

$85000000000.00. joining us not from atlanta in italy is andrew father. he's the head of global public health initiatives for oxford in berlin, and a senior fellow at ox with boss and school. good to have you with us. i just want the drugs cost so much in the united states. when the u. s. has a different system from many other parts of the world. i'm only based in the u. k. and we have a, a, a institute code nice to recognize these things and puts things through a mechanism to west. i won't be effective messes us doesn't have that kind of centralized monopoly control or pricing. so what you just described is a kind of an innovation on that you have to find go through the new regulation update of at the level of the government. do you have to put asked to put to an act in order to do this. so this is meant if you just clear up to the price that's like twice the cost of what it costs the patient in the, in the country like from, for example, i don't deal with say that you read us is

a really quite medicalized dakota. me to it's, you know, medical factories about 4.5 trillion the, and the, the drug sites are, is a very big chunk of that. that's, that this is about controlling that cost. that, that cost in the equation prices for new us drugs last, the new new laws coming on line was 35 2nd greater than the previous year. and we have a record of they have a record number of blog best as the, the, the mechanisms to keep prices under control, the number of bathrooms pads of a pulse of the world. so this new inflation reduction, i get both an opportunity to, to, to tackle this my particular take home. this is the, you know, this is a move in the right direction. but it's actually quite a small part of the equation that are much big are more important things that, that could and should be taught to control that driving the level of price is this, the reason is become pressed to, to degree by, by the political part is this the,

it has the potential way things are getting into the next 51020 years to bankrupt. the, the, the, the systems for providing healthcare in the us to pick farmers warning, but the forcing them to lower the drug prices or the selling for less is going to disrupt innovation all day. right? or all the big pharmaceuticals prioritizing profit of a health. i know the not right to be quite blended but have done some x rays and things. they have to say that the that the defend the position. i noticed that when this was announced, the share price is if the company is hardly botched. in fact, they probably went up around about this time. they re issue with the shoulders. this wasn't going to have stopped digging in pat. relatively speaking is that so this is quite a small measure. um, i know you know, to, to, in your introduction that have these prices being, in effect a year or 2 ago, this would have save 6, but it, well, this is going to come into effect in 2026. the reason is that we have to allow the

legal process to to go through its cost. so if you do not increase and you look at the, the rising prices in embracing yes, the, the savings of topics. i don't know that, and i really just wiping out the increases in, in, in recent process. i've talked to the, actually, this is almost okay, it's trouble tickets, but there's always too much easy money in the system for pharmaceutical companies at the moment in the us. the regulatory system is, is flagging things through that doesn't have to write and take a little by each was already that. and actually if you look at that, that full, they, they don't have much incentive to actually add, i thought about it. so i need to argue that actually the needs to be a bit more responsive, put the value on the drugs that actually generate fire experts, it's impactful on health. and unless you've all to illustrate to the system is a wash with, with, with money. and some of these big companies have so much cash, they didn't know what to do with that. so the written branch of products, which really isn't very politically possible by either of the political pots in the

us, would move in the direction of, of, of a set of measures that was asked to be tougher on the, on, on, on compass, in terms of what they produced, they wouldn't allow them to get drugs through the system on the basis of one study, they would, they would require a more meaning, the clinical important differences between what is being developed and what's currently on the market. they'd be more emphasis on random much trials with a representative. i just picked of long example that i could pick up a load more with a drug being used as it's not really matching. and it's use how i was trying help them to ask for the advocacy numbers are actually in the real well low. so a few of these kind of things would actually improve the incentives of, of, of, of companies to produce useful drugs. ok, and are really good to talk to you on terms of the costs, manufacturing data being with us. thanks very much. and so to all highlight of the week, it's $900000000000.00 a year. that's roughly how much it would cost to your p and union to keep pace with

competitors like china and the us. the findings were released by the former president of the european central bank, mario dorothy last week. the share of the global economy is shrinking and rocky says, but if you're a comp provide, it's people with security and prosperity, it will have lost its reason for being his recommendations to transform the use economy and create reducing energy prices, coordinating industrial policy, and raising defense investment us more than 300000000 people who are currently age 50 to 60 a set to leave the chinese workforce over the next decade. that's the country's largest age group. that is almost as large as being tie us population. the growing number of elderly people is straining the countries pension pawsman with a declining both rate. few a young people will replace those who reached retirement age and keep paying into that post. so to try to slow the decline in his labor force, china is to raise the retirement age for the 1st time. since the 1950s,

the change will take place over 15 years starting in january. according to the plan approved by lawmakers, men will retire at 63 instead of 60 women will retire at 55 instead of 50 for ordinary workers and 58 instead of 55. for those in management positions, starting in 2030 employees will also have to make more contributions to the social security system in order to receive pensions. while the announcement of the rise and the time that they just let the mixed views of an old of chinese workers as well as younger ones, used on employment as high and china. many people are worried that and expanded workforce would lead to tougher competition for jobs uses. and i'm worried that we modern people now is so competitive and distressed that our health may not see us through to that age. clear or withdrawal. i may feel a bit reluctant to work for such a long time, but i also understand the decision. the government may have to consider the issue of an aging population. i think from a macro perspective, i can understand that

a kind of either bigger will give a for sure this would impact me, but i think we should look at this positive lee. it's a good thing because a country has an aging society, a multi level pension security systems being built. so raising the retirement age as a country weighing up the pros and cons. it's a strategy that's beneficial to the entire country. joining us from hong kong is obviously a garcia at our chief economist, the asian pacific, up at, uh, not 6, this bank. to tell you this again, alicia, how significant is this other countries of over the raise, the retirement age? was this going to do for the chinese economy? well, it's going to help pay the pensions to start because this is a big issue for china and the national patients on has a big deficit. number's not fully, you know, clear, but we know there is deficit. and i think the most important position is really to increase the number of years that time use when you to work to to, to receive

a petition from 15 to 20. that, that's the big thing because that's what gives a little bit of room briefing space to actually be to pension. the retirement age increase is relevant, but you know, it takes up a little bit late because it starts in the 25 and it goes really slow. the but the, the conditions are very, very important. and that's just to make the, the system fundable which, which hardly used today, they need to receive contributions from state on enterprises. you know, it's just not a sustainable. so it is important. but as we said, use unemployment in china at the moment is particularly high. what does this mean for the employment prospect of the younger generation? good question. um it means that it will be harder. i quite agree with the commons, which so you know, but chinese interviewed by just so yeah. it's going to be harder because that

by the way, how they're just going to be even less productive. um, generous productivity is decelerating speed in the case for the case. and the fact that it older people will remain in their jobs, i suppose to have been, you know, new brand new types. well, one too much for productivity or, you know, it's, it's kind of a mess. yeah. they, they need to find them, suspensions for young people. of course, there's another risk which is real, but they say it's in a, i mean, it all comes together on top of these on the lake retirement age, but with a dwindling workforce. to what extent is china by raising the retirement age simply kicking the problem further down the road? well, i mean, when you raced the retirement age and you basically get a longer use of contribution, of course the minimum explained to you, but you know, if you start working when you are safe, $23.00 after college and you,

you go in and you may be there for, for 2 years, and that's the bed. the bed is that people will stay there for very long. and therefore the amount of, of funds that will be incorporated you know, would be more. but your point is well taken because of the, these allow me to infertility to right in china. this is 2019 is really very, very rapid reduction in the particular rate. this, this actions might not be, you know, because it's still the permit is getting interesting here on the bottom. and that's not accounted for so that you're in that regard. good. right. and what is the current state of china's workforce? i mean, how many people within it are skilled or unskilled and what is the impact having on china's economic growth? is a very good question because, you know, i, i want to make a point that is a little bit counter intuitive why the labor force is actually

a 4 lane in trying to find a percentage point a year. um that the labor force is poorly in the rural areas. why? because there's this deal, you're running session going on. so people are moving into the cities. in fact, that the, the population overall, which is concentrated in the run there is, is not explaining china's economic consideration because there is 2 people moving to higher productivity area specifically. so and on top of that to a question, there's also the labor force is being uh, is of course the share of skill labor is higher and higher so. so in principle, the worst we come, that when the cities can no longer accommodate people because they are beneficial rate, we re, uh, you know, the staff is busy stages that which is around the ac, depending on the congress to binds to be higher. yours is a bit not dependent, but say 80 with 63 now. so by 2035 and this is important. all of these

a gene on the population. we fit gross massively. we're talking about around $1.00 percentage points, gross less every year, which i know once they you run inspection process is over. that is when we will brief see what the population means for china growth weiss, alyssa grids, talk to you again and counting the cost many thanks. and for being with us, the tension is in argentina, on the front line of president, how the emulators attacks on the welfare stage as the government pushes to implement its harsh posterity program. last week, midnight presented his 2025 budget to congress, which includes holding wages and pension study. he's previously struck down a little that would force the government to boost spending on retirement. argentina right now has one of the lowest pensions in the region to raise a bow reports from point us out as they say they are the 1st victims of

precedent heavy. i mean, these cuts pensioners protesting in front of congress against me, legs, veto oval that would increase the ring, come by at least 8 percent north of mind. hold if you have been married for 43 years, but the name of that we have come here because we have rights and the government is taking it away. they are taking our rights to each. the president forgot about the poor. quote, he used to work for a security company he spent and is a little over $200.00 a month. he says he spends 25 percent on buying just one medication. people here are angry when we need to coffee seed evaluated the currency to try to normalize economy after years of exchange rate controls. but inflation rose to 25 percent, and the 1st few months pensioners and workers are still trying to catch up with the increasing prices. the government says is negotiable,

and that's why the rested in be sold. the pensions know the best people are saying that the government is hurting this country's most vulnerable, and that's why they plan to challenge the lady, the therapy people that on the street. in the past 2 decades, each new government has changed. the formula for adjusting pensions pensioners have lost out with every one of them by the arrow made always 78 years old and comes to this nursing home to pick up food every day. they will know you can have the blessing, i have a daughter with disabilities, my son is able to work and construction. sometimes we have my pension account, so 5 with what time paid. so i have to come here and it's not just pensioners were struggling. anyway, administration has also lifted subsidies, a few with electricity and transport for millions. it's become a challenge to pay their bills. the soup kitchen feeds around 3000 people

a day maybe to selina started to come here 2 months ago, used to work in construction funding leasehold, so public works around the country has left him without a job. i was working in the company involved in public works and when the government took office may and 200 others will lift without a job. so i had to stop picking up cardboard on the street with this government. we're all trying to survive. now. hopefully the situation will improve for now, the biggest pending carts have been to argentina's pension system about 40 percent of the people in argentina work and being form i labor market. previous administrations have tried to get more people into the state system. this means there are no more people enrolled in a welfare program that's already struggling to afford to pay the minimum wage. not many most and we did not have a pension system. we have a subsidy program,

you know? so when a person reach a 65, the government gives us some something, but it's not related to the traditional param, and that person that today of 7000000 pension is $5000000.00 of them appeared a little over $200.00 a month. 5 medium pensioners are leaving below the poverty line in argentina. have you had any days continuing to promise these reforms? will benefit the country's economy by increasing numbers of people have started to question his plans and pensioners saying they're coming at their expense. pretty simple. i'll just see that counting the cost when a site is and that's our show for this week. if you'd like to comments on anything that you've seen, i'm at a citizen on x trying to remember to use the hash tag h a c t c. or you can drop us a line cache and the cost of elder 0 don't net is our email address. as always, there's plenty more few online, but i'll just do a dot com slash ctc. that takes you straight to a page and then you'll find individual reports links at in time episode to do to

catch up on. but that's it for this edition of counting the cost on a tree and fed again for the team here. and so how, thanks for being with us, the use of the houses here is next is really forces seek to silence. the truth simply occupied westbank storming and shutting down houses 00 and romano. the truth must be protected and heard. and the stories of real people must be told. this is not just that a task on journalism. it's an attack on the world's right to know. journalism is not of coolant or pressing it's, it's hey, getting to

my deals the french republic because i'm proclaimed, but just what is more than friends in a full pot series, the big picture takes an in depth, not from the same size. episode 3 analogies here with americans more divided than ever. are we watching the end of the american era? the us wants to keep the war and ukraine going until russia's will is broken. but is that strategy working? what to do if there is no date after in israel's war on concept, the quizzical look good us politics, the bottom line, the, there's no limit to how a dream continue to study in your own adventure,

no counter, and the is really bombardments, datsuns homes and 11 on caring, 569 civilians over tuesdays throwing global condemnation. the hello, i'm sorry to hire. this is all just there are life from the ha, also coming up in the program, a mass exodus from southern lebanon to escape these radio talks, some even fleeing to syria.