good to have this is business today. i'm sally bundock. we start in south korea, which seems to be stepping back from the brink after a period of martial law was imposed briefly and then lifted by president yoon suk yeol. analysts are watching closely for signs of how the political uncertainty will affect asia's fourth largest economy. some are concerned about whether this week's events could impact south korea's sovereign credit rating. that affects the cost of public borrowing on the international financial markets. some steps have been taken by the south korean authorities to help soften the economic blow. my colleague steve lai is in the south korean capital,

seoul. how have the markets responded to the latest developments? it has been quite a ato mulches days starting from plenty when that usually the market, withdrawn in fact.- that usually the market, withdrawn in fact. ~ ., ~ , withdrawn in fact. when markets the kosm. _ withdrawn in fact. when markets the kospi, currently down - withdrawn in fact. when markets the kospi, currently down they . the kospi, currently down they have vowed to prop the finance ministry said there would be no limit to how much they would support the economy if

what fiscal challenges now lie ahead for president yoon? we are in this moment of limbo. we don't know if he will stay in office. if he doesn't, what happens next? there are a lot of them behind me, rallying trying to gain more support and force him doesn't, there could be a motion place to impeach him. all these things will cause more uncertainty here into south korea as to who will be leading and notjust political pressure, trade unions are calling for a general strike unless or until the matter is resolved. if that be very damaging for asia's fourth—largest economy especially when industries such as chip makers and chip

manufacturing and this if he steps down, they have 60 days to call another election to have another president in place and all thatjostling and and all that jostling and campaigning and all thatjostling and campaigning and in the meantime everyone will be watching and waiting to see who will be taking up the reins but that is one scenario. the other is if they go through with an impeachment and that process takes a little we will find out more this afternoon. to impeach the president. if that happens, that takes longer but if that happens, there will be a 60 day period starting to hold another election to find out who will be the next certainly for the next couple of months as a result of the actions we have seen 0k. result of the actions we have seen 0k-_ seen 0k. for now,, we will seak seen 0k. for now,, we will speak to — seen 0k. for now,, we will speak to you _ seen 0k. for now,, we will speak to you again - seen 0k. for now,, we will speak to you again later. seen 0k. for now,, we will l speak to you again later here on more now on the political crisis in france,

where, once more, the country could be without a government later today. prime minister michel barnier, who was appointed by president macron afterjuly�*s inconclusive parliamentary election, faces a no—confidence motion over the budget — a vote he is expected to lose. on monday mr barnier used a presidential decree to force through his budget without a parliamentary vote. furious opposition parties said they would back a no—confidence motion to oust the former brexit negotiator in a vote expected today. in parliament, he pleaded with legislators about the gravity of the political threat. translation: the situation is difficult in terms of the budget, in terms of finance. i terms of the budget, in terms of finance-— of finance. i am also vigilant when it comes _ of finance. i am also vigilant when it comes to _ of finance. i am also vigilant when it comes to financial . when it comes to financial markets which i know well. it is difficult in economic and social terms. 0ne is difficult in economic and social terms. one thing i am sure of and keep what i say

today in mind, is the no—confidence folk tackle tomorrow when we see each other again will make everything more difficult and more serious. joining me now is tomasz michalski, associate professor of economics at the hec business school in paris. talk us through what you are expecting. the government probably will be over and will basically cease to function. there will probably be a new prime minister appointed by president macron. the fifth republic has a very strong power of the president and then the crucial sprint is to adopt a budget for 2025. if such a text is not adopted by the end of december, there may be a shutdown just like of december, there may be a shutdownjust like in, say, the us when there is no funding for public spending but that will

not likely happen because if it come to that president macron can ask for special powers that are granted under article 16 of the constitution and can even file a budget by decree, surpassing the government, the parliament. there may be also earlier a try by the new government to apply a continuation of the budget of 2024 to 2025 which would be a copy paste. we are in uncharted territory, but it seems that at the end of the day, when you work out the game from backward induction president macron will have the upper hand at least in deciding where the budget will be. , , ., , ., deciding where the budget will be. , ,., be. interesting you should say that because _ be. interesting you should say that because many _ be. interesting you should say that because many are - be. interesting you should say| that because many are arguing president macron may be forced to resign. who could be the new prime minister? who to resign. who could be the new prime minister?— prime minister? who is in the frame? they _ prime minister? who is in the frame? they different - prime minister? who is in the frame? they different name | frame? they different name circulating. some could say you

could even inaudible rename michel barnier. there is nothing that precludes them from doing so. inaudible some members like the minister of the army on the left side to enlarge the coalition because what is the problem? in fact, it is not that i term controls the parliament, it is the centrists cannot agree with the socialist not to topple the government, so if socialists could tacitly support the current group, perhaps we could have some functioning of the government, perhaps before new, fresh elections injuly government, perhaps before new, fresh elections in july 2024. thank you again for talking us again so early in paris. just

to say on bbc news we will be across the day's developments in france as the day unfolds. here in the uk, three english rail operators will be renationalised by labour next year after it passed a law allowing it to do so. south western railways will be the first to renationalise in may next year, followed by c2c injuly, and greater anglia towards the end of the year, the transport department has confirmed. let's discuss this with tom stevenson, investment director at fidelity. good morning. this step is part of the new government's wider plans to re—nationalise rail services. as they operator contracts come to an end and expire, but the question is will it improve the service? imagine all viewers tuning in right now use the services want to know. , , , ., to know. yes, this is an important _ to know. yes, this is an important moment - to know. yes, this is an important moment in l to know. yes, this is an i important moment in the to know. yes, this is an - important moment in the history

of the uk railways because it effectively marks the end of a 30 year period of privatisation since british railways was broken up and privatised in 1994 and as you say, southwest railways is the first to come back into public ownership in may, followed by two east anglian franchise operators later in the year and the next year also a big step, the creation of a new body called great british railways cups of which will effectively recombine the 0wnership which will effectively recombine the ownership of the tracks and the operating companies for the first time in 30 years since british railways. so it is a big moment, a big change, the endo —— the end of and experiment which some would say has been successful. many more people travel by train now than 30

years ago. 0ther travel by train now than 30 years ago. other people would say the privatisation 0f years ago. other people would say the privatisation of the railways has been at failure, though, because service quality remains poor, the cost is much higher in the uk than in many comparable countries in europe, for example, so you are right. the key question for passengers, they don't care who owns the railways, theyjust 0wns the railways, theyjust want the trains to run on time and for the service to be affordable and reliable and of course that remains uncertain. it is not clear that public 0wnership is necessarily a route to a better railway system. we will only find out 0ver system. we will only find out over time. system. we will only find out 0vertime. i system. we will only find out over time— over time. i was going to say that. it will _ over time. i was going to say that. it will take _ over time. i was going to say that. it will take some - over time. i was going to say that. it will take some time. | that. it will take some time. it was a complex system of private train 0perators that will be replaced eventually and it will take some huge investment, isn't it, into the railways, which were laid down many years ago. that is part of the problem, isn't it, and infrastructure that is creaking infrastructure that is creaking

in many areas?— infrastructure that is creaking in many areas? yes, that is a problem- _ in many areas? yes, that is a problem. that _ in many areas? yes, that is a problem. that is _ in many areas? yes, that is a problem. that is a _ in many areas? yes, that is a problem. that is a very - in many areas? yes, that is a problem. that is a very old . problem. that is a very 0ld system. we were the first country to put in place a nationwide railway system, and it shows. it is an old system. the current system, though, with the separation of the tracks and the train 0perating companies, i think there is probably broad acceptance that creates more problems than it solves. i think 0ne creates more problems than it solves. i think one of the most important part of this is not bringing back into public 0wnership the train 0perating companies, that putting everything together which will enable a more integrated, co—ordinated service and hopefully allow more well targeted investment in the railways to improve them. ok, tom. railways to improve them. ok, tom- thank _ railways to improve them. ok, tom. thank you _ railways to improve them. ok, tom. thank you again. - railways to improve them. 0k, tom. thank you again. see you soon. the car giant volkswagen has been hit by rounds of strike action this week

as tens of thousands of workers took part in 2—hour stoppages, bringing assembly lines to a halt across germany. this the latest clash between workers and management over the future of europe's biggest car maker ahead of a fourth round of negotiations set for next monday. tim urquhart is principal auto analyst at s&p global mobility. hello to you. obviously the strike action has been happening and that has brought vw to a halt in some circumstances but in terms of negotiations, do you know how they are progressing? 0bviously, they are progressing? obviously, very slowly at the moment. as sue said, we are about to go into the fourth round. ——as you said. negotiations are progressing extremely slowly, a force and movable option between what the demands of the company are and what the very powerful were council and union leaders of the ig metall union are, the biggest industrial union in

germany. it biggest industrial union in germany-— biggest industrial union in german. , , '. germany. it is very difficult to figure — germany. it is very difficult to figure out _ germany. it is very difficult to figure out where - germany. it is very difficult to figure out where the - germany. it is very difficult. to figure out where the middle ground is because vw is facing extreme competition and pressure is on its bottom line and yet thousands of workers want to save theirjobs. it is want to save their “obs. it is not really h want to save theirjobs. it is not really difficult. - want to save theirjobs. it is not really difficult. this - want to save theirjobs. it is not really difficult. this is i not really difficult. this is getting towards being as vw�*s management is saying an existential crisis, surgery needed for decades now. the infrastructure and efficiencies of the german operations are huge. it is a very sad fact of life that the german workers are paid pretty much twice on average i what the other european counterparts are within the vw group production network and it is simply not sustainable. it is not the basis for competitive business. especially as we are seeing such a huge ramp up in competition from chinese car manufacturers, who are importing very, very good

vehicles into europe and vw�*s own electric vehicles are not selling very well.— selling very well. sorry to interrupt _ selling very well. sorry to interrupt you. _ selling very well. sorry to interrupt you. what - selling very well. sorry to interrupt you. what i - selling very well. sorry to interrupt you. what i was| interrupt you. what i was trying to clarify as being difficult is difficult in this dispute with the different sides and the different challenges they all face. thank you for your time. around the world and across the uk, this is bbc news.

now let's talk about jaguar. the company's recent ad roll—out has raised a lot of questions and heated debate about just what the luxury car brand was thinking. and we got another insight when the company revealed its electric type 00 design in miami. branding controversies aside,

the car maker has been struggling over the past decade and things could get tougher under incoming president donald trump if he imposes tariffs on imports. 0ur north america business correspondent ritika gupta has been talking to jaguar�*s managing director. jaguar unveiled its electric car concept in miami the backbone of its new identity and coming hot on the heels of and coming hot on the heels of a video teaser of the brand's makeover which was lambasted for being an extreme divergence from the british carmaker�*s heritage. but according to 1540 00:16:28,886 --> 0