and has the humble wallet had its day? is it past its sell by date as more and more people pay for things with smartphones? welcome to business today, i'm mark lobel. the crisis at boeing rumbles on. the union representing thousands of striking boeing workers posted on social media to say they were not interested in the aviation giant's latest pay offer. the company proposed a 30% pay rise over four years and the reinstatement of a performance bonus and improved retirement benefits. the international association of machinists and aerospace workers said that a survey of its members called the offer "inadequate". so how damaging is this to boeing — i asked tourism and aviation leadership expert anita mendiratta. i think we need to put this in context, there is significant difficulty as a result of the

entire airline as ultimately bowing has four out of every ten aircraft we see in the sky. this is hitting across the entire industry ecosystem and is putting more pressure on aircraft delays that are causing airlines to push out expectation of delivery well in 22025, which damages their ability to expand belts and offer us as travellers more competitive fares. workers asked for a _ competitive fares. workers asked for a 4096 _ competitive fares. workers asked for a 40% pay - competitive fares. workers asked for a 4096 pay rise i competitive fares. workers i asked for a 4096 pay rise over asked for a 40% pay rise over four years, they rejected 25% and 30% now. why is the union in such a strong position? it is an interesting point. importantly, the workforce that is represented by the union is only 20% of the entire workforce, they are in a very strong position because this is a very emotionally charged issue. the workforce of the boeing is feeling enormous frustration and disappointment

as a whole, but they still love the airline and the company and the airline and the company and the brand. boeing is a sign of enormous pride, it is a national icon, it is a source of great prestige for people who are working on the lines, so they are not wanted this to happen. the union as a result is putting enormous pressure on the new ceo, who is facing it. he is owning these challenges and this is where credit needs to go to him. he is coming with a great reputation in the industry, he knows aviation technically, he has great financial acumen. the uk is predicted to have the joint—second highest economic growth this year amongst wealthy nations. that's according to the oecd think tank, the organisation for economic co—operation and development. the uk economy is now expected to grow by 1.1%, the same rate as canada and france. with only the us higher. uk annual growth was predicted at 0.4% back in may so has risen substantially. chancellor rachel reeves

has welcomed the news, which may help reinforce the more upbeat tone she sought to strike at the labour conference this week. however one of the challenges she will face is shortages in the labour market in the uk. let's pick up on that point with the ceo of recruiters reed, james reed. good to have you on the show. when we talk about shortages in the labour market, what do we actually mean, because unemployment is quite low but business confidence is suggesting a slightly different picture becausejob suggesting a slightly different picture because job vacancies are shrinking? i picture because “ob vacancies are shrinking?_ are shrinking? i hopefully achieve that _ are shrinking? i hopefully achieve that growth - are shrinking? i hopefully achieve that growth data | are shrinking? i hopefully - achieve that growth data that has been predicted but ourjob to stay readers is concerning me because of the last 90 days we have seen a 25% decline year—on—year in vacancies, so this time last year we had 200,000 livejobs, now we have

hundred 50,000, so i think employer confidence has taken a knock and there are fewer jobs. the other challenge at the same time is the policy to build more homes is a good one, we want to build many more homes in the uk, but there is a real shortage of construction workers and people with the skills required to do that. it is a difficult situation, a rock and a hard place. did you hear enough _ rock and a hard place. did you hear enough from _ rock and a hard place. did you hear enough from the - rock and a hard place. did you i hear enough from the chancellor this week for her stated aim of boosting investment? i this week for her stated aim of boosting investment?- this week for her stated aim of boosting investment? i heard a more positive _ boosting investment? i heard a more positive mood _ boosting investment? i heard a more positive mood music- boosting investment? i heard a i more positive mood music coming out of the labour party conference, which i think is helpful and welcome. the concern is what is going to be in the budget obviously and i think a lot of employers are waiting to see. the tax burden in the uk is the highest it has beenin in the uk is the highest it has been in 70 years and the obr are saying it is going to go to the highest in 80 years, before any additional taxes that might be imposed in the budget.

business is waiting and watching, and frankly concerned.— watching, and frankly concerned. �* ., ., concerned. and what about the bu ers concerned. and what about the buyers everywhere _ concerned. and what about the buyers everywhere from - concerned. and what about the buyers everywhere from the i concerned. and what about the i buyers everywhere from the uae to jersey about having a buyers everywhere from the uae tojersey about having a four day week? it is argued it can reducejob burnout and increase talent. our employers likely to give the option? i talent. our employers likely to give the option?— give the option? i think many -la ers give the option? i think many players are — give the option? i think many players are already _ give the option? i think many players are already giving - players are already giving people the option and everyone has the right request flexible working. it is available on an individual basis. the big question is if you want to make it across the board and institutionalise it for a business. that is challenging because a lot of services, both in the public and private sector, people are complaining they are not getting what they want. to only work for four daysis want. to only work for four days is less likely to fulfil those customer needs than if we were working for five or more. thank you.

volkswagen is thinking about closing plants. volkswagen and labour unions made no progress on wednesday in crunch talks over pay, with mass lay—offs and plant closures still on the cards. earlier this month vw warned it urgently needs to cut costs — and is considering what was long seen as unthinkable — closing plants in germany for the first time in its 87—year history. we'll discuss what could happen next live in a moment our business reporter david waddell. these are tough times for jeremy's car giants. they have warned they could be hit by a slowdown in china where they have invested heavily. they have invested heavily. they have also faced growing competition from chinese rivals. the transition to electric cars is a huge challenge, it has brought an influx of cheap chinese electric vehicles into the market. the european commission supported by france has recently imposed a steep import tariffs to protect european manufacturer's, but germany as a major exporter is concerned about retaliation from china, a

key market for its car—makers. the disagreement has forced brussels to shelve a european vote on the tariffs which had been planned for this week. labour costs in germany are among the highest in europe, and this week vw�*s chief executive want if manufacturing is to continue in germany costs must fall. is to continue in germany costs must fall-— must fall. manufacturing in germany — must fall. manufacturing in germany is _ must fall. manufacturing in germany is important - must fall. manufacturing in germany is important to i must fall. manufacturing in germany is important to us must fall. manufacturing in i germany is important to us and we will fight every single job in germany, but to do this we have to reduce costs significantly in all areas to allow us to be more flexible on price so we can stand up to international competition. {lin international competition. on monday germany's economy minister and vice chancellor chaired crisis talks behind closed doors between top car—makers, suppliers and labour unions. among the suggestions put forward, bringing back consumer subsidies for electric vehicles which were phased out last year, leading to large falls in dvd sales. that is something the main union wants to see. ——

electric vehicle sales. so will we see the return of consumer subsidies for electric vehicles? that's what i asked the director of the center for automotive research, professor dr. ferdinand dudenh ffer. i don't think that we can go to subsidies in germany because the public budget is very true, they need all the money for social security —— poor. and also beat ukrainian war. there is no point to go to subsidising the industry or itby customers buying cars, therefore this was a discussion which will be not very interesting, not very helpful for the future, and the ministry of economic affairs have got a poor person in the whole business.— have got a poor person in the whole business. how close are we to w _ whole business. how close are we to vw closing _ whole business. how close are we to vw closing plants - whole business. how close are we to vw closing plants in i we to vw closing plants in germany? i we to vw closing plants in germany?— we to vw closing plants in germany? we to vw closing plants in german ? . , , , , germany? i am pretty sure they have to act — germany? i am pretty sure they have to act very _ germany? i am pretty sure they have to act very strongly - germany? i am pretty sure they have to act very strongly and i l have to act very strongly and i

don't exclude that the close plants in germany, see ifjimmy is a big problem and lower saxony because they have a lot of capacities and highest costs due to the fact the government has a stake in vw and the advisory board, so there is a political situation and they have to solve the problem the next time, also going back to reduce capacity in lower saxony. reduce capacity in lower saxony-— reduce capacity in lower saxon . ., ., ., saxony. you mention to the german economy _ saxony. you mention to the german economy minister, | saxony. you mention to the i german economy minister, he has appealed to the auto industry to plan long term. what does he mean? i to plan long term. what does he mean? ., to plan long term. what does he mean? ~' ., mean? i think long term it becomes _ mean? i think long term it becomes more _ mean? i think long term it becomes more and - mean? i think long term it becomes more and more | mean? i think long term it i becomes more and more difficult for it germany because we do not see any changes in cost structures and on one hand, energy and logistics. it is

very uncompetitive, what we do in germany. the second thing is if we look the car of tomorrow, it is born in china, they do the automatic driving and entertainment, and they have the better reason, big capacities and cost advantages due to scale economies. i think the german and european car industry will go more direct investments in china and less investments in china and less in germany. investments in china and less in germany-— investments in china and less in german . �* ., ., in germany. another fact on the horizon for _ in germany. another fact on the horizon for the _ in germany. another fact on the horizon for the industry - in germany. another fact on the horizon for the industry to i horizon for the industry to consider is the co2 regulations in europe, asking for a remission of eu standards. i think it is a better choice not to do change the regulation

because if there are payments to be done, they can defer the payments into the future. you can find solutions, however you should not change regulation because there are some companies like bmw who fulfilled the regulations, and there are other companies which are not any position to fulfil the regulation. however, is the problem and not of the car industry of the whole. lets take a look at the markets. market slightly down in europe. all of the markets responded that similar —— stimulus in china. let's have a look at the

american market. nasdaq touching up. that is it, you're up to date, you have been watching today.

the indian election commission says more than half of voters have cast their ballots in the second phase of elections in indian—administered kashmir. polling for 26 seats in the local assembly has now ended. the phased vote, which is being held amid tight security, is the first since narendra modi's government scrapped kashmir�*s semi—autonomous status in 2019. the bbc�*s arunoday mukharji is in srinagar. a couple of hours ago, in the second of the three face elections in indian

administered kashmir in one of the main issues resonating with voters is the issue of autonomy being taken in 2019 by the central government. in 2018 the last state government collapsed, since then people have not had an elected assembly representatives which is why whoever we speak to, they say it is finally a chance for them to register their voice and be heard by using the ballot to send a message. with me this evening as a member of parliament from the national conference, a very prominent regional party in indian administered kashmir. thank you for your time. these are very significant elections and there are lots of expectations, the first one in ten years, people have been feeling voiceless for a long time. immense expectations, how are you planning to address them and what kind of emotive issues are people voting on? the what kind of emotive issues are people voting on?— people voting on? the first thing for — people voting on? the first thing for us _

people voting on? the first thing for us is _ people voting on? the first thing for us is to _