this is bbc news. the headlines: search and rescue efforts are under way after one of the deadliest tornadoes to have ever hit the us state of mississippi. at least 25 people have died with more thought to have been trapped under the rubble of destroyed buildings. the governor has declared a state of emergency. vladimir putin has said russia will station nuclear weapons in belarus — the first time it has deployed such arms outside its territory in almost 30 years. the us department of defense said it was monitoring the situation but did not currently see any reason to adjust its nuclear posture. the uk government is preparing to announce further alternatives to hotel accommodation for migrants as early as next week. those behind the policy say it will be a big break

from hotels and a shift to more basic accomodation in an effort to deter people from coming to the uk illegally. now on bbc news, talking business: now it's time for talking business. welcome to talking business. let's have a look at what is on the show. a crisis forcing governments to invest billions to avert a catastrophe. it is not the banking crisis, though. it is the climate crisis. as europe goes head to head with the united states on subsidies for green investment we will ask what it means for business, international trade, and the future of the planet. i will discuss that with these two. there they are.

and we will assess the impact on business with wayne griffith the big boss of the car—maker say yet which has just announced an electric car battery plant in spain. and later in the programme, the man behind the cinema magic. i will speak to the boss of visual effects giant frame store, sir william sergeant. i will ask him about working on the world's biggest movies and what the future holds forfilm, tv and gaming. wherever you arejoining me from around the world, once again, a big hello and warm welcome to the show. just days before the un issued its latest wake—up call to the world about global

warming, the european union laid out its ambitions to boost the green economy. it has announced plans for massive subsidies for green tech to match the near $400 billion already committed by us presidentjoe biden in his signature information reduction act. in washington, dc the issue topped the agenda at the meeting between the eu president and president biden taking precedence even over the war in ukraine. the first topic we discussed is information reduction act and, indeed, we welcome the inflation —— inflation reduction act because it is a massive investment in the green transition, moving towards a net zero economy. it is mirrored by the green deal industrial plan in the european union. the amounts of money we are talking about for these subsidies is huge. the american inflation

reduction act puts aside $269 billion in subsidies and tax credits for clean energy and technology. the aim is to drive up demand for american—made products, so if you want a subsidy for an electric car the battery for it must be made in the usa. it is claimed green industries in america added 100,000 jobs in the first five months after the act was signed into law. but the eu is fighting back. in february, the commission announced its own green industrial deal pledging more than one quarter of trillion dollars for the green transition and then, earlier this month, two more big announcements for big subsidies. they are not yet law. they need to be approved by governments and the eu parliament but one of the main goals is to subsidise clean technology where at least 40% of the product is made in the eu. by the eu and us lag behind china.

in 2022 alone, more than half a trillion dollars was invested in the sector in china. compare that to the mi billion in the us, it is also way ahead of germany, france and the uk. so can these subsidies really make a difference to climate change and what impact a massive subsidies in one part of the world have elsewhere? let's talk to gareth redman king from the london based energy and climate intelligence unit. gareth, good to have you on the show this week. we are talking about some big numbers. the question is, are they big enough numbers to tackle the climate crisis? they are definitely big enough to make a difference. they may not be quite enough quite yet. the ippc reportjust published in the state of climate change globally suggest we need something like three — six times the level of investment we currently have to get on track for net zero, but if you take the us $369 billion committed under the inflation reduction act alongside a couple of other pieces of legislation

with money attached, may be as much as $500 billion, that is an absolute step change in investment. it will help put the us a lot closer to getting on track for its current emissions targets and also will leverage considerably more investment. that 500 billion could leverage something like 1.2 trillion in private investment on top of that. what we are seeing is this big blocs coming together. the us, eu, china is doing its own thing way out front. i wonder where it leaves other smaller players, including in that the uk. it has left the european union. where does it leave anyone who maybe doesn't have as deep pockets? overall, it puts us globally in a very good situation. got some of the biggest economies on the planet competing to fund the clean transition that the science is very clear we everyone to get on track for 1.5 degrees.

the uk has led the way before on investment in climate changed. it has moved markets. it has brought in and grown industries and brought supply chains to the uk to help the transition. i think there is a risk in the short term if the uk is not able to clarify the policy situation, to improve the regulatory situation in the uk and to keep providing public investment that leverages that, that it will get left behind and squeezed in between the eu and us. it is clearly a very valuable industry. net zero is very valuable to the uk economy. recent calculations showed it is worth 70 billion a year and employs 840,000 people. that is something like five times what the oil and gas industry employs in the uk, so it is worth fighting for. it is worth investing in and it is cheaper to invest in it than to bear the costs of not making that transition fast enough.

how long do these subsidies have to last? because they are expensive and i wonder if this is about changing behaviour in the short term or making a marked shift in the longer term because countries cannot afford to keep paying this? no, and they don't need to. we've got a clear example here in the uk. if you look at offshore wind a decade, maybe 15 years ago, all the talk of offshore wind was to dismiss it and say it is way too expensive, we cannot afford to subsidise this. it is more expensive than nuclear. but subsidising in the right way, incentivising and leveraging private investment grew the industry, deployed offshore wind at a phenomenal rate which brought down costs, improve the technology, grew the companies and industry, provided jobs, high—qualityjobs in areas of the uk that very much welcomed them and now offshore wind is cheaper than gas.

these subsidies already announced are still in their infancy but i wonder what difference they are making already and i suppose that comes down to corporate thinking about where they may set out, whether they have the financial support to invest in new r and d and green tech. i think alreadys we've seen some announcements from companies battery companies, car companies, that they may switch investments to the us because of the subsidy that is on offer but this is not a zero—sum game. in the end, a huge part of this, these clean technology industries, did not exist 15, 20 years ago. they have grown as a result of the need and investment. the ippc making it abundantly clear that the need is still there for us to expand these industries, expand this transition. and more of that investment

will grow, continue to grow those industries, continue to grow the opportunities. it is about investing in the right way at the right time. gareth, it is so good to talk to. thank you for being with us on the programme. it is clear this is also about creating jobs and business. but is it also about governments protecting their own economies? camela dower is an expert on trade law at the university of sussex. it is good to have you on the programme. if you take the word green out of the subsidies it is essentiallyjust state aid, isn't it? yes, it is state aid. the differences in the eu it is very carefully regulated under this framework whereas in the us, they are not so interested in international laws and norms to regulate their subsidies. talk to me about the difference.

why is the us taking such a different approach to the eu? the us is, in terms of a power game, the us has always felt it has been able to guide the international trading systems just through its dominance whereas the eu is very much a proponent of the international rules —based system under the wto and internally to ensure a level playing field among member states. whenever we hear state aid, it suggest that by putting the word green in front of this, the us is able to throw out all of those internationally agreed laws. there is a real problem with greenwashing at the moment and the us is supporting its domestic industry and domestic production through these local content requirements which actually violates international trade rules under the wto but there are no

filters and the government at the moment to try and stop these transgressions but, the end of the day, this is a subsidy race and china obviously is ahead of the game and the real problem is that a subsidy race is really a trade war and we know what happens when there are trade wars, what happened just before the second world war and we also know that poor countries can't play this game. this is a rich country race, so are you actually exacerbating global inequalities. interesting that you mention this is a developed world issue. where does all of this leave the developing world? those not able to offer subsidies to business? those without subsidies are left out of this game and theyjust have to hope that they can afford to import these goods and they might not be the cheapest and they might not be the most green of what we would like the world to be pursuing. for those countries it is kind of like india and indonesia.

they look to see how the us is flouting international rules and they think, well, were just going to have to play the same game. do you fight fire with fire or do you have the moral high ground? when you have domestic pressures at home such as unemployment and poverty, then sometimes it is easier politically to just join the subsidy game and that is not the most efficient use of resources or the most effective way to mitigate the planets crisis. we are talking about three big blocs: china, the eu and us. i wonder, after brexit, where does this leave the uk? the uk has been trying to have a sort of green industrial under brexit. the problem is the uk is equally conditioned by the international rules—based system and so we already have the eu actually bring in the uk consultations

and the wto because of its low carbon subsidies so the uk has as much to worry about by these rules as any other country and again, the uk hasn't got the resources that the us has so in terms of the industry, maybe it is more about new tech rather than focusing on electric vehicles and solar panels which are already mature industries, maybe we need to think even further ahead of the game and look at hydrogen and further on because it does seem to be a waste of time to try to catch up with china. thank you so much. really good to have your thoughts on the programme. what impact does this have on business? if you are a car—maker deciding where to make your next generation of electric cars, could subsidies influence your decision?

wayne griffiths is the boss of sayat thank you for being on the programme this week and talk to me about that investment you are making. electric battery production there. how important were subsidies in making that decision? the total investment and together with their partners, it is a 10 billion euros investment in electrifying spain and that investment is split across different areas. developing small electric cars that we're going to build here in spain in our two plants. the other is preparing the plants, so the plants themselves need to be prepared for electrification then the big news last week where we were laying the foundation with the prime minister and the king of spain for the first gigafactory battery plant in spain in valencia. when you look around the world to see where you might expand operations, how influential is that subsidy in where you establish? it is playing a key role at the moment and we have

to make sure that europe, that we maintain our competitiveness against the us, so our decision for the 10 billion investment in spain, the spanish government played a key role. we have a unique moment in time, unique opportunity with the european next generation funds that we could use to support us in making a decision particularly for the new activity of the battery plant in valencia. that was absolutely key and essential and, as i say, looking ahead, when we see what is happening in the united states and also in canada in the north american region, europe needs to maintain its competitiveness. that neatly gets us onto that story in the headlines of late. you are part of the vw group. there is a lot of speculation that the group may instead

of setting up that big investment in eastern europe that money might go to the us instead to take advantage of some of the new subsidies. how much truth is in that? i cannot comment on the plans of that group but i can confirm we are doing our investment here for the battery electric plants. i think you also need battery plants close to where you produce and reproduce more in spain so it makes a lot of sense for us to have that battery plant here in spain. there is another factor i would like to bring to the table, notjust inventions but if you are going to build a battery electric vehicles with zero emissions you need renewable energy to do that. it does not make sense to build batteries, electric batteries with fossil fuel generated electricity so in the case of spain with 50% of energy sourced from renewable energy and the potential that becoming more. you can see behind me

the sun is shining. the sun shines through the day so we have a huge potential of renewable energy and i think that plays an important role, a decisive role in the case of spain. what is the tipping point? when are we more likely to be in an electric vehicle than one fuelled by fossil fuels? that will depend a lot on the country, i think. if we look in the north of europe it is already very advanced. the average across all of europe is 20% of sales are electric vehicles, germany is slightly higher, 25%, and scandinavian countries are even higher. the uk also are 20 or 25%. in southern europe they are lagging behind particularly here in spain with only 10% electrification so it is different in different markets. but i think a lot of it

will depend on how committed the european governments are in their individual markets to support the acceleration to electrification not only in terms of incentives for electric cars but also the charging infrastructure which is one of the biggest worries the consumers have so that has to speed up as well and from a spanish point of view i am leading the car industry here in spain and we are pushing the government to speed up with concrete actions in this area. can the climate wait that long? the targets for 2035 zero emissions is an ambitious target when you see where we are today and where we want to be it is one cycle of a car and obviously, cars are not the only producer of c02 and emissions so we need to do ourjob but we want to be part of the solution. we are speeding up.

i think 2025 onwards with a small battery electric vehicles we will see the number of electric cars going up considerably and we want to be fully electric brand by 2030. we just have to start speeding up now. it is good to talk to. enjoy that sunshine. we've been talking about subsidies for green technology but here in the uk, the government has also just announced extra help for the film industry. generous tax credits for productions based in the country but do big blockbuster movies really need financial help? let's talk to sir william sargent who founded one

of the world's most successful production companies framestore. welcome to talking business. we've been discussing green subsidies on the programme and there are now subsidies for your industry, too. what green subsidies might help the planet is a right that we subsidise your industry? do you need financial help? to be competitive. it is an inward investment so it's money that would not come here. we get e7 of value for every £1 of tax credit so if we did not have that we wouldn't have additional benefit, very simple. no tax credit, the business would not come here. those credits make it more financially viable to operate in a certain country, don't they? talk to me about what would happen if they were not on offer. can you still afford to do it somewhere in the like the uk? the hollywood studios is co—funded with an american company so if we didn't have the tax credits production

would basically go to different parts of the world and a community we spent 25 years building. the creative industries is the fastest—growing part of the economy and has been for the past decade or plus, so we would basically be giving up something that we are world leaders in. and once you give it up it is very difficult to get it back. you have worked on some huge productions, haven't you? things like top gun, harry potter, the marvel movies, you talked about. a lot of them are sequels. criticism that originality has gone out the window because you can just churn out sequels. is there any truth in that? not really, the world has always had sequels. what is wrong with harry potter, variations on the story.

sequels, if you think about the marvel cinematic universe, we all want new versions of characters and stories. coronation street is however many times a week sequel but we like the characters we love and the environments. i would love to see some of your special effects in coronation street or eastenders. there is the merging of television, movies and gaming now, a huge part of what you do is gaming so talk to us about the direction of the industry overall because the lines are blurring between what was a traditional industry and a very new industry. i'm thinking of things like the last of us. a computer successful on television with very filmic production values. it all comes down to storytelling. the direction has been to tell stories so previously quite

often the plotlines and characterisations are now — you've characters in games which you can actually make the most of. what is most exciting and all the things your company does right now? we are working with technology companies in different forms of reality which we call mixed reality and immersive technologies so if you look at a game like fortnite, for example, we currently consume entertainment and live our lives in a digital sense with their mobile phones and laptops or whatever. you talk about the virtual world. like meta, for example, betting really big on its metaverse. it hasn't quite taken off yet as they thought it would. is it shaping out how you thought it would? it is shaping out into all the components as a three—dimensional world. and, you know, when you look

back at the internet, meta came out of nowhere, so you are looking at the same analogies as we move into three—dimensional metaverse world, in that it is like hollywood. nobody knows anything. nobody is guaranteed to be a winnerjust because you spend $10 billion. it is too early to own the metaverse. you've been doing this quite a while. has the industry changed in the way you thought it would? did you ever foresee he would be creating the sort of stuff and you founded the business? we set up eight people in a room and wanted to be big in soho and then we wanted to be big in london but we always set out to be big in the world because film was where the action was. 0ur aspirations were global and ambitious and it is about

storytelling and enabling story and so we look at now what will be happening in the next five years. it is about will someone pay for it now? will someone take the financial risk because it all comes back to the consumers buying something that then makes it financially feasible to do something different in storytelling. it sounds really exciting. thank you so much for being with us, thank you forjoining us from la. with us, thank you for “oining us from uni with us, thank you for “oining us from la. you are very kind, thanks very — us from la. you are very kind, thanks very much. _ us from la. you are very kind, thanks very much. that's - us from la. you are very kind, thanks very much. that's it - us from la. you are very kind, thanks very much. that's it forj thanks very much. that's it for this week. _ thanks very much. that's it for this week. i — thanks very much. that's it for this week, i have _ thanks very much. that's it for this week, i have you - thanks very much. that's it for this week, i have you have - this week, i have you have enjoyed the show. you can keep up enjoyed the show. you can keep up with us on the bbc website, or you can reach me on twitter. thanks for watching, we will see you very soon, goodbye. looks like things are turning colder brieflyjust—in—time for british summertime. 0ur clocks went forward one hour during the early hours of

sunday. it will be turning colder across northern areas today and we will start to notice the difference in the south once we lose the early morning rain, all courtesy to this area of low pressure, pushing into the near continent as it pulls away, northerly winds will set and initially across the north of the uk and then spread outwards and you notice the blue colours spreading to pretty much all areas by the end of sunday. but we start this morning on a rather wet note across southern areas, that rain takes its time to clear away from east anglia and the south—east, could leave a bit of a hang back of cloud for the north. some good spells of sunshine around but it will be cold in the northerly wind with some showers which will have a wintry element to them particularly in north and east of scotland so temperatures here, low single digits and single figures for much of england and wales as well, away from the southwest. as we move through sunday night, that cold air spreads southwards, sky is clear, it is going to be a very cold night, widespread frost i think away from the far south—west of england and south wales, so ice and frost could be an issue.

into monday, we are in between weather systems, this will arrive as we head into tuesday but a ridge of high pressure will bring a lot of fine and dry conditions on monday to much of the uk, it will start cold and frosty mind you, watch out for any early ice across northern areas and it should stay sunny into the afternoon as well. cloud tending to build a southern and western areas later on, temperatures lifting to 11 degrees but after that cold start in the strong late march sunshine, temperatures will reach highs of 7—9 celsius. on tuesday it starts to turn cloudier, windier, weather, rain pushes in, preceded by some snow certainly across the hills and across the north of england and scotland but temperatures will be on the rise you will notice, southern and western areas, we are back into the low teens and beyond tuesday, it looks like low pressure dominates the scene, sitting out to the west of us ushering in some very mild air from the south—west

there will be strong winds and rain too. i think one of the mildest days will be thursday, we could be up to 16 or 17 degrees across southern and eastern areas but it will be mild and unsettled right across the board.

welcome to bbc news. our top stories: a state of emergency in mississippi after a violent tornado kills at least 25 people. vladimir putin says russia has agreed to keep tactical nuclear weapons in neighbouring belarus. the uk government is set to announce the use of ferries as part of a series of alternatives to hotel accommodation for migrants as early as next week. hello and welcome to bbc news.

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