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tv   The Context  BBC News  June 21, 2023 9:30pm-10:00pm BST

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indian prime minister narendra modi has arrived in the us for his first official state visit that will underscore the deepening of us—india relations in recent years. mr modi will be given a ceremonial welcome at the white house on thursday before he holds direct talks with presidentjoe biden. then there is the state dinner, a meeting with ceos, an address to a joint session of congress. the us has long viewed india as a counterbalance to china's growing influence in the region. live now to washington and tanvi madan, director of the india project at the brookings think—tank.
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the at the brookings think—tank. us is really rolling ou�* carpet the us is really rolling out the red carpet here pulling out all the stops. looking at this, you mostly did this at the same leader is denied a visa over human rights concerns and there is a change in tenor in this relationship. why has india become such a strategic partner for the india become such a strategic partnerfor the us? india become such a strategic partner for the us?— india become such a strategic partner for the us? you're right that the administration - partner for the us? you're right that the administration is - partner for the us? you're right| that the administration is rolling out the red carpet. and it is along the lines of the last few american administrations of done and strategically important as a rising power that will play an influential role, notjust on the world stage but specifically in the asian pacific and there's also this steep convergence strategically on the question of china. in the us and india have shared visions of the pacific where they would like to see
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a rules —based order prevail in there ecstasy arising of china's assertive behaviour as a challenge to that the administration here in previous administrations of scene it is important in their own right and they see it as a geopolitical counterbalancing economic alternative anti—democratic contrast to china and what they are trying to achieve at this visit is to deepen the convergence and to manage what does exist between the two countries, including on russia. find countries, including on russia. and on the strategic _ countries, including on russia. and on the strategic synergy in the indo—pacific, if you can talk about india's perspective on this relationship, what is there strategic interest in close sending ties of the us?— ties of the us? much like the us, india sees it _ ties of the us? much like the us, india sees it in _ ties of the us? much like the us, india sees it in two _ ties of the us? much like the us, india sees it in two ways - ties of the us? much like the us, india sees it in two ways and - ties of the us? much like the us, india sees it in two ways and this | india sees it in two ways and this
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is notjust the approach of the current government but the last two governments before modi, as prime minister modi put it in previously, he called the us and indispensable partner for india's transformation. the us is become crucial to india in achieving its security, prosperity and status objectives. they see the us is the one country that can affect each of these goals and help india towards them. and india today sees the china challenge from a country that has long been a rival but since the 2020 boundary clash between the two countries, india sees china as a challenge that is five and a half times its size in terms of economy, three and a half in terms of its defence budget and a challenge that it cannot deal with alone. whether it is at its border or the region. so, alone. whether it is at its border orthe region. so, india alone. whether it is at its border or the region. so, india sees the us
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is an important partner for it to build its own capabilities and the china challenge helping india deter china challenge helping india deter china in the region in a favourable balance of power as well as countries in the region that will remain on the land and some options and alternatives into that together with the us alone but as well as through the quad of the australian indian, japan and us grouping. quite a bit of alignment _ indian, japan and us grouping. quite a bit of alignment in _ indian, japan and us grouping. quite a bit of alignment in terms of geopolitical aims. a bit of alignment in terms of geopoliticalaims. but a bit of alignment in terms of geopolitical aims. but there is divergence as well, isn't there? you mentioned russia, they rely on russia for a 50% of its defence needs at that there is the on this of the us. the response to the war in ukraine and india certainly hasn't come out strongly to speak against russia, certainly not as much as the us would like. which are seeinu in much as the us would like. which are seeing in the — much as the us would like. which are seeing in the divergence _ much as the us would like. which are seeing in the divergence still - seeing in the divergence still exists between the us and india but
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they have agreed to disagree and you also see the gap between the narrow of last year in the divergence was much more stark we've now seen the us understand but because of the reasons that you mentioned, the dependence on russia and long—standing partner that india is not going to give up its relationship and even though the us might not like it, they will accept it. they also have an interest in being prepared for any contingency on the border. you have seen prime minister modi now be more vocal about not approving of countries that violate territorial integrity and sovereignty doesn't mean russia, makes very clear when india stands and unlike president xijinping of china, you see prime minister modi engage with president zelensky quite consistently speaking with him on the phone and also the hiroshima
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meeting with them and reiterating that india would offer humanitarian assistance and be helpful in any way in terms of bringing an end to this war that both sides see fit. we have seen the gap between the us and india narrow but you've bosses in the us and india make a judgment call to bear the strategic convergence between them on the china challenge but also in terms of wanting to build an economic technological innovation partnership thatis technological innovation partnership that is future oriented. so, do not disrupt their goal and they do not want to have russia's service subito on the relationship and essentially, the strategic convergence has incentivise them to match the differences they have on russia. i’m differences they have on russia. i'm auoin to differences they have on russia. i'm going to bring in chris morrison, i understand that she reported from india and it will be interesting to hear your perspective on just how
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much change we're seeing notjust india's on ascension but this relationship with the us because what we're seeing here is really the first time that there's been this sort of magnitude of state visit by an indian leader in the us. it is an interesting _ an indian leader in the us. it is an interesting shift _ an indian leader in the us. it is an interesting shift because - an indian leader in the us. it is an interesting shift because for- an indian leader in the us. it is an interesting shift because for most| interesting shift because for most of the _ interesting shift because for most of the century, the main american focus _ of the century, the main american focus and — of the century, the main american focus and subjugation was on afghanistan and pakistan. the war on terror. _ afghanistan and pakistan. the war on terror, where is osama bin laden, what _ terror, where is osama bin laden, what are _ terror, where is osama bin laden, what are we — terror, where is osama bin laden, what are we going to do about the taliban. _ what are we going to do about the taliban, american troops in afghanistan. that is all changed. indie _ afghanistan. that is all changed. india is— afghanistan. that is all changed. indie is not— afghanistan. that is all changed. india is not the main focus now and during _ india is not the main focus now and during the — india is not the main focus now and during the geopolitical terminology changing. talking by the asia—pacific region has been rebranded as the indo—pacific, the acknowledgement of the indian ocean is acknowledgement of the indian ocean must— acknowledgement of the indian ocean isjust as _ acknowledgement of the indian ocean isjust as crucial acknowledgement of the indian ocean is just as crucial in the area as the pacific— is just as crucial in the area as the pacific in which china is trying to do— the pacific in which china is trying to do in— the pacific in which china is trying to do in the — the pacific in which china is trying
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to do in the indian ocean region. it is based _ to do in the indian ocean region. it is based in — to do in the indian ocean region. it is based in miramar in sri lanka and surrounding — is based in miramar in sri lanka and surrounding india in some ways. there _ surrounding india in some ways. there is— surrounding india in some ways. there is no— surrounding india in some ways. there is no question that the united states— there is no question that the united states sees india as an important counterbalance towards china. very important _ counterbalance towards china. very important relationship and economically as well, we know that modi will_ economically as well, we know that modi will be meeting ceos and they have class— modi will be meeting ceos and they have class reaching half a billion people _ have class reaching half a billion people who want to buy things. there are many— people who want to buy things. there are many things that can cooperate on this— are many things that can cooperate on this other things happening in india _ on this other things happening in india where it is a bit more worrying _ india where it is a bit more worrying which may not get them as much _ worrying which may not get them as much attention, a crackdown on journalists — much attention, a crackdown on journalists have been critical of the government, what feels like a bit the government, what feels like a hit of a _ the government, what feels like a bit of a politically motivated case against _ bit of a politically motivated case against the opposition leader which could _ against the opposition leader which could lead to an being barred from politics _ could lead to an being barred from politics for — could lead to an being barred from politics for a while. but this is about— politics for a while. but this is about heart politics and in asia, the big — about heart politics and in asia, the big thread of the united states sees, _ the big thread of the united states sees, india is an important part of a response — sees, india is an important part of a response to that. if sees, india is an important part of a response to that.— sees, india is an important part of a response to that. if we pick up on what chris mentioned _ a response to that. if we pick up on
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what chris mentioned there - a response to that. if we pick up on what chris mentioned there about i a response to that. if we pick up on i what chris mentioned there about the economy. right now, globally, india is looking like the few bright spots when it comes to the economic trajectory and it's also this need to reduce the dependency on china. we heard elon musk with his meeting with modi saying that he's going to tesla into india as soon as possible. how feasible is this? can india replace china is the production capital of the world? the 'u is out production capital of the world? tie: jury is out on that production capital of the world? ti2 jury is out on that but production capital of the world? t'i2 jury is out on that but which production capital of the world? ti2 jury is out on that but which we are seeing is for the two reasons your mentioning, the economic growth outpacing that of me major powers and also this risking that india itself is undergoing another�*s undergoing through diversification and even though you can see american companies see, not necessarily as a replacement for china but they're thinking about china's plus one strategies and diversifying in their
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own supply chains they think for that reason, piercing and he is very much a part of the china plus one strategy and where does have some advantages compared to vietnam that might offer business environments betterfor might offer business environments better for manufacturing in some domains, what india offers is scale of market and you just do not have, if you are a large company in the us, you're not thinking above diversifying, what you get with india is the potential risking but the access to the large indian market. not as large as china's right now but it is also notjust an export led economy, it's been where you must spend unlike the chinese counterparts to a greater extent, both, there are questions of whether india is liberalising enough and
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enough pace, particularly in terms of liberalising in terms of not imposing import duties or reducing some of them so they can enable the companies trying to diversify to move some business supply parts to india and sometimes india, the instinct seems to give countries and companies to move the entire supply chains to india and that is not likely if we have seen some learning on india's part that he needs to find a medium somewhere or compromised by suspect you will see more from this visit in some pretty specific reports in the company and out in some investments in semi conducting industry as part of that. a big push towards diverse and that industry. very fascinating to think about how these geopolitical relationships are changing. stick
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around and stay with us, we will have more to discuss here in the context. around the world and across the uk, this is bbc news. these paintings by a ukrainian artist of a very special place in this art gallery. probably displayed by his daughter who finds a comforter showcase work by her dad as well as other ukrainians and local artists. i as well as other ukrainians and local artists.— local artists. i have two artists from ukraine, _ local artists. i have two artists from ukraine, one _ local artists. i have two artists from ukraine, one artist - local artists. i have two artists from ukraine, one artist is - local artists. i have two artists from ukraine, one artist is a l from ukraine, one artist is a professional artist and he flipped the war in his 70s and she was here for several months and he was just talking about being absolutely devastated and i couldn't say that i
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have a free minute where i am not thinking about my country. my parents were there at the moment. the current exhibitions include work by her dad which will be on display all summer. you're live with bbc news. the latest uk inflation figures have offered no respite for households struggling with the cost of living, with the rate that prices are rising remaining stable in may, at 8.7%. while rate of food inflation had eased, it was offset by rises in costs of goods such as computer games and plane tickets. economists have been trying to predict what happens next. here's our economics editor, faisal islam. a wave of high prices has washed up on britain's shores. at this neapolitan restaurant in brighton, every current of rapidly rising prices have combined to push up the price of their vegetable pizzas from about £8.50 to closer to £12.
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the flour that we use, it starts at £20, £21, and now it is £32.50. wow. the electricity bills as well, they have almost been trebled in a few months. another thing that is affecting this is the salaries as well. the minimum wage is growing year by year, and this year, i think it was 9% more. it is getting hard to keep our prices down. inflation in may remained stuck at 8.7% when it had been expected to fall, driven by still high food prices and airline tickets. underlying — or core — inflation, a measure of ongoing inflationary pressure, unexpectedly rose to its highest level in over three decades, and this is what the bank of england watches carefully when deciding interest rates. for pizza restaurants, flour was up 22% on the year. tinned tomatoes are up 30%. and cheddar cheese, up 38%. even in this small pizza kitchen,
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you can see all the inflationary pressures that have hit the economy, from the wheat price, to fresh veg, dairy, and of course, energy prices. the packaging, too. and whilst so much of that has been global in nature, pushing up the prices, from now on in, there are real questions about whether there's uk—specific domestic factors that will keep inflation higher than it is elsewhere. that british inflation surprise, all too visible in our restaurant bills, has been transferred into financial markets, pushing up the effective interest rate on two—year loans to government to a new 15—year high. and that, in turn, is having a direct impact on the mortgage market. absolutely fine. what's your name, please? this brighton mortgage broker says people are accepting extraordinary changes to the length of their terms to keep monthly costs down. lenders are coming out with different ways of helping clients. they are looking at extending mortgage terms out for a longer periods of time. how long is the longest?
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some lenders will go up to the age of 80. 80?! yeah. it just depends. it is all lender—specific. in terms of the term lengths, sort of 30 years, a0 years? yes, we can go up to a 40—year term as well. a new ifs analysis by age and region shows people in their 20s and 30s most affected by rising mortgage costs, facing a £300—£360 a month hike. and those in london and the south—east, where house prices and mortgages are the highest, face a bigger hit. people such as ewan, a management consultant, having to find an extra £400 a month. if inflation remains sticky, as it is predicted to be, there will be a lot of home repossessions, a lot of people forced to sell. which will cause a bit of a housing crash, and our property is valued based on other people's demand. and so our property might depreciate below the value of our mortgage, so we will be in negative equity. who knows? price rises remain hot, so more interest rate rises
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are coming from tomorrow. enough to risk a renewed downturn or even a recession that some government advisers argue is the only way to extinguish the inflationary fire. faisal islam, bbc news, in brighton. it's not looking too good. let's discuss some of these numbers with chris morris, still with me on the context and certainly not good news for anyone who was borrowing money. the fiscal studies reckons that up to one and a half million people with mortgages are going to be looking at a 20% reduction in disposable income. that is a considerable, some people are not going to be able to afford it in a dispute with mortgages, because of the general situation. this, we are looking at what feels to become with
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the housing crisis and of course, for the government and for rishi sunak and the prime minister in particular, there is not a political peril in there. inflation halved by the end of the year and remain stubbornly high. higher than anywhere else in the g7 and i think for mr rishi sunak, he is not failed to bring inflation down and over the next 18 months, and the run—up to what will be the next general election, some many more people have hit this mortgage cliff were their productive remortgage and face much higher costs. difficult times the government, i think. higher costs. difficult times the government, ithink. but higher costs. difficult times the government, i think. but making difficult times and people coming out this with mortgages but some of the costs of food, sugar of 50%, exit 29%, milk up 20% from what it was last year. why is it worse in the uk than in other parts of
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europe? there's been a lot of public criticism now of the bank of england, dismissing the bank is lost control of inflation and because prices are rising in wages, people are going on strike and people are arguing that the bank is engaged in too much quantitative easing, buying government bonds and other financial assets to try and encourage economic activities and plenty of economists outside of the bank say this isn't working and a lot of issues being mentioned, people get bored of hearing about the sometime but the one thing that is different in the uk compared to the rest of europe is brexit. and for example, when it comes to food prices, getting the labour in this country now to pick fresh food in vegetables. people trying to bring in fresh food from
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elsewhere in europe, if there are hurdles of borders, people trying to bring that food and props are going to say look, we have less of it at the moment because of the energy crisis means that our greenhouses are not working as much because of that, if it's easier for them to sell it in germany or spain or france or somewhere else, they will do that. in france or somewhere else, they will do that. �* . ~ france or somewhere else, they will do that. ~ ., ., do that. in the bank of england tellin: do that. in the bank of england telling peeple _ do that. in the bank of england telling people not _ do that. in the bank of england telling people not to _ do that. in the bank of england telling people not to ask- do that. in the bank of england telling people not to ask for - do that. in the bank of england i telling people not to ask for raises and certainly not something that is gone down well either. a big challenge for government. to stay with us here on bbc news, we continue to bring you all the updates on all epic stories including the search for the titanic sub and do stay with us. much more to come here on bbc news. you've been watching the context.
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hello. sports and it's been a day of big moves in the football world. the store with the news that manchester city captain willjoin barcelona on a free transfer when its contract expires at the minimum. he was integral to the cloud morning scoring six goals —— club including the final win and manchester united and she was of the new contract by city but is believed to have negotiated a more lucrative three year deal with the spanish champions. chelsea have agreed to deal with an arsenal to sell german international for around £65 million. subject to the player passing a medical and the bring on personal terms. three years ago in a deal with about 71 million patents. and midfielder is close to joining manchester city after they agreed to a deal with £30 million. joining
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chelsea from real madrid in 2019. chelsea from real madrid in 2019. chelsea reducing the size of the squad and taking over. french midfielder is also leaving stamford french midfielder n'golo kante is also leaving stamford bridge — he's moving to the saudi arabian champions al—ittihad. it marks the end of a hugely successful run in english football for kante — he helped leicester win the premier league before moving to chelsea and winning the champions league, premier league, europa league and fa cup. on to tennis — and with the grass court season in full flow british number one cameron norrie came from behind to reach the queen club championship quarterfinals in london after edging world number 76, jordan thompson. the 5th seeded norrie recovered from his first—set errors wresting control of the match ultimately taking the deciding set 6—2. it means last years wimbledon semi finalist is into the last 8 of a tournament for the sixth time this year i think it was the perfect match.
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jordan, really likes the grass and a really solid first set and he played a couple good points and i played a couple of loose points smells the difference in the first. i thought i played great and do not have to change too much and he dropped his level slightly and i came up with a few points and it was classic press court tennis and i was able to come up court tennis and i was able to come up with a lot more energy and that said, it wasn't much it is definitely a really good match to get through and a perfect match on the grass heading into wimbledon and to start the grass summer. but ryan peniston is out. he was beaten in straight sets by holger rune. the number 2 seed from denmark — who reached two masters series finals earlier this year — won 6—3, 6—4, and will now face the italian lorenzo musetti. elsewhere, harriet dart is through to the last eight of the birmingham classic after a suoperb three—set victory over the number 5 seed anhelina kalinina. dart raced through the decider 6—1 to reach her second successive
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quarterfinal on the wta tour, after getting to the last eight in nottingham last week. in cricket, the battle for the ashes has already started, with australia beating england in the 1st test at edgbaston in birmingham on tuesday — and on thursday, the women's equivalent gets under way. it's a multi—format series — with 3 t20's and 3 0ne—dayers following a one—off test match in nottingham — where england will begin their bid to regain the ashes for the first time in a decade. we feel like we're going to have to do things a little bit differently and may be try to maximise a few things but a slightly strange and try to disrupt them a little bit and try to disrupt them a little bit and try to disrupt them a little bit and try to get the crowd on our side as well. we are going to try to maximise some advantages as much as we can and if he can play entertaining and exciting cricket when we start, i think i'll get the country in the crowd on board with us. it is certainly going to be exciting and be a tough job. staying with cricket and scotland
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have won their opening match of the world cup qualifying competition which is taking place in zimbabwe. they beat ireland by1 wicket in a thrilling match in bulawayo which came down to the final ball. a fabulous start to the competition from the scots but that's two defeats for the irish who now face a battle to qualify for the world cup in india later this year. ireland batted first after scotland won the toss — and recovered from being 17 for 3 at one stage, thanks to a brilliant century from curtis campher. he top—scored with 120 as ireland made 286 for 8 from their 50 overs. an unbeaten 91 from michael leask underpinned scotland's reply. but it went right down to the wire. scotland were 9 down and needing 2 off the final ball — but a boundary from leask saw the scots home by the narrowest of margins. they play the uae next, ireland face sri lanka. and that's all the sport for now. hello there. for most of us, it has been another
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warm, sunnyjune day. take a look at godalming earlier on, you can see a beautiful summer solstice story. but there have been some showers around, and some of them fairly persistent. some running through glastonbury. some through wales up into lincolnshire. and others across eastern scotland. just take a look at aberdeen, just a few hours ago. threatening looking skies. you knew what was heading in your direction. but most of those showers will tend to fade away as we go through the evening and overnight. a bit of fair weather cloud, and still the risk of an isolated shower from that cloud. maybe a bit misty and murky towards dawn. it'll be a mild start with those temperatures holding up. perhaps just dipping into single
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figures in eastern scotland. so, starting off tomorrow morning, lots of sunshine from the word go, but as we go through the afternoon, there is yet again the risk of showers. some of those showers heavy, possibly with some hail and thunder, and the distribution of those showers across eastern england down into east anglia. top temperatures, though, in the sunshine around 28 degrees. a little bit fresher further north, looking at 18 to 22. but it bodes well for glastonbury. take a look at this. yes, almost a dry weekend. a little bit more humidity, potentially sparking off the risk of a shower as we go into sunday. actually, as we move out of thursday's weather, this high presure will dominate the story across england and wales, but weather fronts pushing into the far north—west will gradually bring some wetter and windier weather, and it will turn more unsettled, with some heavier rain, much needed rain pushing its way through scotland and northern england for a time. central and southern parts of england and wales will stay dry, settled and relatively sunny, with a high of 25 degrees by friday. we still keep that high. we still keep the warmth across central and southern england and wales. but low pressure sitting out into the northwest will continue to throw these weather fronts in,
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and at times, bring outbreaks of rain, and some of it quite heavy as well. drifting its way steadily eastwards. so, we have got some subtle changes, as we move into the weekend, slightly wetter conditions further north and west, warm and humid to the south.
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tonight at 10:00, no change in the rate of inflation — it's still high, and another rise in interest rates is expected tomorrow.

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