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tv   Talking Business  BBC News  June 11, 2022 3:30pm-4:00pm BST

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that is obviously you to go to work, that is obviously making it very difficult indeed. people are still going to work, are they? people are still going to work, are the ? , . �* , ., ., they? they are. i'm very fortunate. i've not they? they are. i'm very fortunate. i've got the — they? they are. i'm very fortunate. i've got the most _ they? they are. i'm very fortunate. i've got the most amazing - they? they are. i'm very fortunate. i've got the most amazing team - they? they are. i'm very fortunate. i've got the most amazing team of| i've got the most amazing team of people that work for me and they are extremely dedicated but it does not the fact that, actually, some of them are having to look at leaving a job that they thoroughly enjoy to do something else because it is not just a commute to work. this is their role. this is their duty and it is now costing them money every time they turn up. some of them are travelling long distances, and the spiralling cost makes it economically difficult? it is extremely difficult. we have just increased what we are paying on mileage up to the full 45p that is payable by the governments but that has not been reviewed since 2010.
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fuel prices and the average cost of driving around has increased massively in the last 12 years. to have that not even be reviewed, do not have any more that we can give tax—free, is making it exceptionally hard to even be able to support the star. ., ., , hard to even be able to support the star. ., ., ._ ,., star. you are saying the government can do more- — star. you are saying the government can do more. they _ star. you are saying the government can do more. they could _ star. you are saying the government can do more. they could also - star. you are saying the government can do more. they could also cut - can do more. they could also cut some of the fuel duty, which they take from fuel at the pumps. yes. they could — take from fuel at the pumps. yes. they could do _ take from fuel at the pumps. yes. they could do so _ take from fuel at the pumps. yes. they could do so much _ take from fuel at the pumps. yes. they could do so much more, - take from fuel at the pumps. 133 they could do so much more, they really could. we are of a jigsaw puzzle here. the knock—on effect that is having four as being community carers has a huge knock—on effect for the entire health and social care industry. you are looking at people that are ultimately classed as bed blockers in hospital because they cannot be discharged home, because there is not enough staff in the community to look after them, because people do not want to come into an industry thatis not want to come into an industry that is going to cost them to work, and people are leaving the industry, because it is costing them too much
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money to do theirjob.— money to do their “ob. thank you. good luck to — money to do their “ob. thank you. good luck to you — money to do theirjob. thank you. good luck to you and _ money to do theirjob. thank you. good luck to you and all— money to do theirjob. thank you. good luck to you and all your - money to do theirjob. thank you. good luck to you and all your staff who are facing those dilemmas. thank you. the singerjustin bieber has revealed he is suffering from facial paralysis after cancelling shows this week. the 28—year—old said in an instagram video that the condition is due to a diagnosis of ramsay hunt syndrome. the condition which affects the facial nerves is usually temporary. now on bbc news, it's time for talking business. hello. let us take a look at what is on the show. the global economy is facing multiple crises, from supply chain chaos, war in europe, and potential famine. can this so—called poly
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crisis be taken on by the wto, world trade organization, as global trade ministers meet face to face for the first time since the pandemic? and the war in ukraine. while discussing all of that. there they are. the boss of the world trade organization, as well as a former wto judge from china. and what does this mean for a business where trade is everything? i will be speaking with the boss of one of the biggest shipping and freight companies to find out how they are navigating through these choppy waters. whenever you arejoining me whenever you are joining me from around the world, hello, welcome to the show. we are in a poly crisis.
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that is according to ngozi okonjo—iweala, director—general of world trade organization, because wto is holding its most important meeting in more than four years. this week trade ministers from more than 150 countries will gather in geneva in switzerland. the meeting has twice been postponed covid outbreaks. but now, as well as a world facing a pandemic and this aftermath, there is a war on european soil. globalfood european soil. global food shortages. european soil. globalfood shortages. at the global cost of living crisis. and of course, the continuing climate emergency. yes, poly crisis doesn't seem about right. last time, the ministers met in december 2017, right. last time, the ministers met in december2017, in right. last time, the ministers met in december 2017, in buenos aires, they were greeted by anti—globalisation protesters. but the sense from the ministers as the bigger challenge that needs to be addressed. at the moment the wto is facing a crisis over its very existence was top since 2019, and
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the presidency of donald trump, the united states has blocked the appointment of any newjudges to the wto applet body. that is a panel of judges from different member countries that decide on any challenges to the organisations rules. of this body cannot do its job because newjudges are not being appointed then none of the trade battles between countries, like us and china, can be resolved. while the biden administration says it wants to move beyond this, the block on judges wants to move beyond this, the block onjudges remains —— newjudges remains. despite this, trade around the world has badged back after the pandemic. globaltrade the world has badged back after the pandemic. global trade went to a record high in 2021. $20.5 trillion. 13% higher than the same number in 2019. before the pandemic to hold. but the supply chain crisis from the pandemic continues to linger, exacerbated by russia + this attack on ukraine. oil prices have skyrocketed. global shortage of that
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country's grain is causing global concerns. that has led to some of the other big wheat producers such as india banning exports of their grain. measures that could be agreed by all parties at this wto meeting is exemption on all bands from food programme which is seeking to feed people in crisis. another change that could get approval is that of temporary waivers for intellectual property around vaccines. with much of the world still striving to jab its population, this could be a big win for the world trade organization. agreements to stop overfishing and fishery organization. agreements to stop over fishing and fishery subsidies could also be approved by the entire conference. smaller agreements between select countries could yield big results, which could include major economies agreeing to cut red tape for the service sector, new measures for america, tape for the service sector, new measures foramerica, europe, china among others, to address the climate crisis. and key agreements to make digital trade more seamless across
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much of the world. as you can see, some major global challenges, and a very full plate for all those gathering at this all—important meeting. but where do they even start? to find out, i caught up with the big boss of the wto. ngozi okonjo—iweala, my friend, always a pleasure having you on my show. let us start with this. the global economy is facing multiple crises, which are having a profound effect on living standards around the world. where do we even start with these major issues? this world. where do we even start with these major issues?— these ma'or issues? this is what i call sin these major issues? this is what i call sign of _ these major issues? this is what i call sign of genius _ these major issues? this is what i call sign of genius crisis, - these major issues? this is what i call sign of genius crisis, poly - call sign of genius crisis, poly crisis, it cannot be solved by any one country alone. that this what we need international cooperation. we need international cooperation. we need is multilateral system. some of them, like the food crisis, that is
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facing as, the international health crisis, the pandemic, we see the pandemic going down in some countries, but it does not completely over. we now have faxes can help us that, to solve it, although some parts of the world, like africa, still needs to get their vaccination rates up. we need to work on that, otherwise it might be variants more common among us. on food, we need to work together, we need to get the grain out of ukraine, because 20—25,000,000 tonnes of waiting to be exported. we need those to be released on to international markets. above all, our members, we need them not to put on export restrictions and prohibitions for any length of time. on that note, because we are seeing some nations putting up trade
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barriers, which of course hinders the free flow of goods all around the free flow of goods all around the world. perhaps, as you have mentioned, most worryingly on food essential. but you, the wto, you exist to facilitate free trade. how do you bring down those barriers? with transparency. one of the tools we have as it is ourjob to monitor these barriers. once we know that members have put them up and it is transparent, it is easy, you know, to identify them, and work with them and get them to take those barriers away. we have 25 countries now have restrictions, this is a much lower number than at the height of the pandemic. this transparency, this will keep the number not going to
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high, with respect to countries that have put in restrictions and prohibitions. and if they have, we are asking that the stick to the mutual guidelines, make them transparent, temporary and proportionate.— transparent, temporary and proportionate. transparent, temporary and ro ortionate. ., , , proportionate. indeed. it has been ears proportionate. indeed. it has been years since — proportionate. indeed. it has been years since your — proportionate. indeed. it has been years since your top _ proportionate. indeed. it has been years since your top dispute - years since your top dispute resolution body was able to function. we know it was crippled by president trump blocking the appointment of newjudges. i want to ask you, when will you get it up and running again? briefly explain how important this group ofjudges are? thejudges are part important this group ofjudges are? the judges are part of what we call the appellate body, the central system of resolution. members sent a dispute. at the first level, for the panel to make a ruling. then they can put it to the appellate body. if
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we do not agree with a finding of the panel, then it is very important. the issues that we are getting conversation going on reform of this system, the us is reaching out at a technical level to talk with other members. that is promising because it means that one of the things we will be looking at, at least in the us despite concern, thatis at least in the us despite concern, that is a good sign that we are beginning that process.- that is a good sign that we are beginning that process. there are some governments _ beginning that process. there are some governments around - beginning that process. there are some governments around the i beginning that process. there are i some governments around the world aren't even in particular the united states, that they are concerned about how china, the worlds second biggest economy is treated by the wto. they say china should not get the concessions developing economy is afforded. is there a minute and that argument, given that sheer size
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and influence of the chinese economy in the 20 years since its jointed wto? in the 20 years since its “ointed wto? ., , ., , wto? one of the things that is interesting _ wto? one of the things that is interesting or _ wto? one of the things that is interesting or different - wto? one of the things that is interesting or different at - wto? one of the things that is interesting or different at the l wto? one of the things that is - interesting or different at the wto is that the wto, when it was founded, said countries should self designate what they want, whether they want to be called developed or developing? that is it. that does not change. china is designated as developing but in the past 25 years its economy has changed enormously, and changed fast. that has brought a lot of discussion about whether some of the ways of managing the economy in china are according to the rules, or that is something anti—competitive. what we are doing here, the wto, is trying to work with members on these issues, trying
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to make sure that benefits of special treatments, which is what those developing country members who are pruner gates, they are able to implement agreements is perhaps a slower pace, and perhaps with more space and support than others, they are going to make sure that that benefit does go to members that need it. looking at the issue of subsidies, level playing field. just completed the first stage of that kind of study with imf, the world bank, and wto now working together to look into that problem. what is the level of industrial success? where is it coming from? how can we reform the way be function in order to take account of these issues? we are moving at a level playing field. here are something i know close to
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your heart because we note the covid pandemic still is not over and many countries are still struggling to access vaccines. you at the wto have spent more than 18 months trying to reach a deal on intellectual property rights. to make them more accessible will have ministers meet in person at this gathering finally mean you get a deal? we in person at this gathering finally mean you get a deal?— mean you get a deal? we are cautiously — mean you get a deal? we are cautiously optimistic. - mean you get a deal? we are cautiously optimistic. right . mean you get a deal? we are . cautiously optimistic. right now, mean you get a deal? we are - cautiously optimistic. right now, as we speak, negotiations are ongoing on this very issue. the good news is that after one and a half years of not really negotiating with each other, we have a text that everybody agrees on. the idea is to narrow the differences as much as possible so that when we discuss it next week they will have a text that they can record and finalise. we are cautiously optimistic. we are not out of the woods because there are strong areas of differences still.
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but we are very encouraged by the progress in negotiations. the critics will say, the pharmaceutical companies have spent billions creating these vaccines, why give it away for free? is there a worry that if they have two it could jeopardise future vaccines? well, i do not think so. the kind of agreement that is being negotiated right now, to allow developing countries to be able to access patent so that they can be used to help a bigger problem, is not such a disincentive for the pharmaceutical companies. ads, disincentive for the pharmaceutical comanies. �* ., ., . companies. a deal on reducing fishin: companies. a deal on reducing fishing subsidies, _ companies. a deal on reducing fishing subsidies, we - companies. a deal on reducing fishing subsidies, we know- companies. a deal on reducing | fishing subsidies, we know that companies. a deal on reducing - fishing subsidies, we know that has proved elusive through 20 years of talks. given the threats to global fish stocks, and the focus on food security, given the war in ukraine,
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our mind is now focused on finally reaching a deal? you our mind is now focused on finally reaching a deal?— our mind is now focused on finally reaching a deal? you are touching on all the right — reaching a deal? you are touching on all the right issues. _ reaching a deal? you are touching on all the right issues. minds— reaching a deal? you are touching on all the right issues. minds are - all the right issues. minds are really focused on this. i can tell you, for 21 years this agreement, right now in the past one year, very encouraged by the progress we are making. i do not want to overestimate the number of divergences that still exist among members on this important agreements, but again we are making progress. we have to see next week. but it is encouraging. ngozi okonjo—iweala, i wish i had more time. always a pleasure having you on the show. good luck with everything. i would love to talk to you soon. everything. i would love to talk to ou soon. . ~' everything. i would love to talk to ou soon. ., ~ i. you soon. thank you. as we _ you soon. thank you. as we said _ you soon. thank you. as we said at - you soon. thank you. as we said at the - you soon. thank you. as we said at the top| you soon. thank you. l as we said at the top of you soon. thank you. - as we said at the top of the you soon. thank you. _ as we said at the top of the show, since 2019 the world trade organization has faced a crisis
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about its existence. the body of judges which rules on appeal to the wto has not been sitting. since 2019 the so—called appellate body was shut down after america said it would not approve the apartment of any newjudges. as appeals can't be heard and ruled on countries have been able to ignore some of the organisations rules. earlier i caught up with one of china's former judges on the wto appellate body. china. thank you for your time. it is great to have you. i want to make it clear that you are speaking to me from a personal point of view, not as a representative of the chinese government. i appreciate your time. let us start with this. for the past two and a half years the appellate body has not been functioning. it has not been able to function because china, the united states, keep blocking judges. i want your opinion. do you think the appellate body will be able to recover? i feel
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bad about the _ body will be able to recover? i feel bad about the situation. _ body will be able to recover? i feel bad about the situation. the - bad about the situation. the appellate body has done a wonderful job, the best function among four functions the wto. but it does the blockage of the selection process, all the appellate body exists to function, since then, more than ten cases of appeal already submitted, but nobody to handle these cases. they are still pending. the appeal members are deprived. does they are still pending. the appeal members are deprived.— they are still pending. the appeal members are deprived. does the wto have an answer. _ members are deprived. does the wto have an answer, especially _ members are deprived. does the wto have an answer, especially in - members are deprived. does the wto have an answer, especially in this - have an answer, especially in this upcoming meeting? i have an answer, especially in this upcoming meeting?—
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upcoming meeting? i think so. i comare upcoming meeting? i think so. i compare with — upcoming meeting? i think so. i compare with other— upcoming meeting? i think so. i compare with other issues. - compare with other issues. fisheries, vaccine waiver, or others. i think a resumption of the selection process of the appellate bodyis selection process of the appellate body is the easiest one, and is the urgent one, the most urgent issue. on that note, thank you so much for your time. on that note, thank you so much for yourtime. i on that note, thank you so much for your time. i appreciate it. good luck with everything. i your time. i appreciate it. good luck with everything.— your time. i appreciate it. good luck with everything. i will talk to ou luck with everything. i will talk to you soon- — you soon. ok. thank you. even before russia invaded ukraine global trade was reeling from the many shocks of the pandemic. changing consumer patterns, a bruised airline industry, and covid —related absences were shipping workers. add to that a war in europe and this has made the movement of global trade is uniquely challenging, and sending shipping rates through the roof. how do you navigate through all of that? i spoke to the boss of ocean network
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express, based in singapore, and one of the biggest shipping companies. a pleasure having you on the show. what is it that governments specifically have to do to free up global trade?— specifically have to do to free up global trade? they need to first of all look at their _ global trade? they need to first of all look at their own _ global trade? they need to first of all look at their own individual - all look at their own individual countries. look at how is the existing supply chain working. look at the infrastructure that they have. the reports, the terminals, there are railroads, the trucking operations, and do they have enough labour in those particular sectors. and i are those sectors working under very tight planning restrictions? is there enough new capacity being brought online to build to that. on the container shipping site, we have been traditionally building for percent 5% additional capacity over the last ten years on a regular basis. we
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have not seen that consistent supply—side extraction build—up also on the operation. governments have got to look a lot more clearly at the infrastructure planning, and look at how the markets, how efficient are the markets working within their own individual domestic economies. secondly they need to recognise the entire supply chain just linked up, governments have to work together at a doable level to make sure trading rules are clear, make sure that any adjustments that are being made to policies to do with transfer of people or crews or restrictions around certain commodities or whatever, are being thought through, and that this will not have some negative impact on supply chain and create additional bottlenecks and problems. make sure your markets are working, and working efficiently in terms of supply chain, also look at total global picture and realise supply chains are so interlinked
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that we need to work together, and total government policy at a global level to pull us through. part of this, you are seeing the need to be more investment from government. need to be more investment from government-— need to be more investment from government. ~ ., ., , government. indeed. also, to realise the pandemic— government. indeed. also, to realise the pandemic is _ government. indeed. also, to realise the pandemic is not _ government. indeed. also, to realise the pandemic is not completely - the pandemic is not completely finished. for example, in china we are still hoping that situation is improving, and that any stage we may get anotherflare—up improving, and that any stage we may get another flare—up somewhere else. while it may be covid situation and health situation is hopefully going to calm down, we still have weather—related issues, you sometimes have industrial relation issues that also pop up, to do with tracking strikes, to do with labour strikes as well. we have various factors which could happen and bottleneck app, which would impact the overall supply chain. no room for any complacency. we need to work on this continuously to look at where these bottlenecks are, and free them up very quickly, because if they are allowed to continue they will have an overall knock—on impact
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right through the supply chain which may take many months to clear. we know that the pandemic is not over. winter is not far round the corner for the northern over. winter is not far round the cornerfor the northern hemisphere. in terms of covert. —— covid. if it hits again, another variant sits again, will we have learned to right lessons to move forward? you have hit it on the — lessons to move forward? you have hit it on the nail. _ lessons to move forward? you have hit it on the nail. i _ lessons to move forward? you have hit it on the nail. i am _ lessons to move forward? you have hit it on the nail. i am often - hit it on the nail. i am often asked, when is the supply chain going to calm down? when will things improve? isee, we going to calm down? when will things improve? i see, we are heading going to calm down? when will things improve? isee, we are heading in the right direction, but i was still of the pandemic existing, and while we still have locked out in certain areas, three laps in certain areas, labour shortages or complete closing down of factories in receiving areas, then that is going to mean problems will continue to exist. we need to get over that. secondly, we have had this major pandemic, hope for the world learns from that.
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maybe we are better in the future in terms of predicting and spotting when the pandemic are happening, working quicker to close them down and stop it becoming a global phenomenon. but you need to do more in the health where sector, regarding our future risk in the health where sector, regarding ourfuture risk aversion of these types of things happening. we still dealing with post—pandemic chain chaos. but in late february of this year comes a war on european soil. ~ . , . this year comes a war on european soil. . ., , ., ., ,, ,,, soil. what is that done? supply chain has been _ soil. what is that done? supply chain has been tough. - soil. what is that done? supply chain has been tough. many - soil. what is that done? supply chain has been tough. many of| soil. what is that done? supply . chain has been tough. many of you will be aware we are still uncaring delays because of that back up from land side coming to oceanside. ships are running fine on the ocean side, we can carry things, we just cannot get through the ports. changing gears and talking about that russia invasion, february, march this year, overall, russia, ukraine is 1—2% of
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global container business, not that significant in terms of overall supply chain. of course very significant in terms of businesses in russia and ukraine. we had to move very quickly for two reasons. one, first of all, operationally we were having difficulty moving our ships into russian waters, because of the sanctions and conditions in and around the trading environment, particularly things like insurance cover, banking cover. secondly, the saxons came on very fast, in terms of what goods and products can be moved into those markets. many of our customers stopped booking. we had to spend pretty quickly back in february, march, also a russian business. , , , , , ., february, march, also a russian business. , , , ,, ., ., business. just briefly, russian and ukrainian workers _ business. just briefly, russian and ukrainian workers make _ business. just briefly, russian and ukrainian workers make up - business. just briefly, russian and ukrainian workers make up a - business. just briefly, russian and ukrainian workers make up a lot . business. just briefly, russian and | ukrainian workers make up a lot of seafarers? . , . ukrainian workers make up a lot of seafarers? ., , ., seafarers? that is a good point. often when _ seafarers? that is a good point. often when these _ seafarers? that is a good point. often when these things - seafarers? that is a good point. | often when these things happen seafarers? that is a good point. - often when these things happen there as many unintended consequences that come out later. overall cargo
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volumes may be only one or 2% below the level, russia, 15% of all global seafarers on the 60,000 ships around the globe trading are from ukraine or russia, and that provides a significant issue as well. we have to work intelligently to find other crew members during this temporary situation, or maybe longer, as we can see, as things are developing at the moment. and make sure we have the moment. and make sure we have the cruise on board to keep the ships, the supply chain, are moving. when will this normalise? if we factor in design planning around the average container taking 50 days. if it is taking 100 days we will run short of containers. and the courts that are normally used to ships arriving on schedule on monday and immediately being served, 2a hours
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alongside, then departing. if they have to reach one or two weeks, that creates a huge problem, and the supply chain push back. we are seeing the port situation started to improve. but we still have bottlenecks, like in north america and north europe. and some parts of asia as well. i would expect that as the supply chain starts to improve due to the health and covid issues, is that landside force comes back more effectively, as we get more resources from government and industry are more tracking and distribution centres, that by sometime the end of calendar 2022 we should see a return to normality, in terms of supply chain fluidity. if that happens, then assets could be deployed efficiently and effectively, therefore into 2023 start to recover back to pre—covert levels in terms of business
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performance. fin levels in terms of business performance.— levels in terms of business performance. on that note, i appreciate — performance. on that note, i appreciate your _ performance. on that note, i appreciate your time, - performance. on that note, i appreciate your time, thank l performance. on that note, i- appreciate your time, thank you. good luck. talk to you soon. thank ou. you. it has been a pleasure. i hope you enjoyed this week's show. follow me on twitter. thank you for watching. i will see you soon. good afternoon. quite quiet out there for many. some lovely spells of sunshine. cloud and nuisance rain accompanied by gusty winds across western scotland, turning shaurya into northern ireland and northern england. that is how we continue to the rest of the day. with the best of the sunshine and temperatures could peak at 23 celsius. more disappointing if you have the cloud, wind and rain, further north. that train will tend to ease as we go
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through the night, becoming quite showery in nature. we keep hold of the cloud. elsewhere, relatively mild night. temperatures wide into double figures first thing on sunday morning. sunday will be brighter, settled on sunny day for many of us. winds will be also be lighter. we still run the risk of a few showers, chiefly through scotland, northern ireland and northern england. but rain as today. top temperature, 22 celsius.
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this is bbc news. the headlines at 16:00pm: prince charles is reported to have described the government's rwanda asylum scheme as �*appalling' — one conservative mp says more understanding of the policy is required. he is entitled to his view, as is anyone else. but a number of the views that have been made about rwanda seem to be on the basis of a lack of information about what this programme and what migrant experience has been like. police in brazil searching for a missing britishjournalist say they've found possible human remains in a river. borisjohnson urges ministers to do "everything in their power" to secure the release of two british men sentenced to death for fighting russian forces.
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the government is expected to reject proposals to introduce a new salt

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