India's commercial capital has been brought to a standstill.
After heavy monsoon rains a lot of people today.
They're talking about plastic rubbish clogging watcher ways and, that being one of the reasons until ma'am, I really act Sonnets habit from lecturing this flooding is not going to go away.
We'll get the latest from the city, and the boss of oil giant Royal Dutch shell will tell us what hurricane Harvey has done to oil producers in the U.S. also this half hour President trump will try to do what many of his predecessors failed, that he wants to reform the U.S. tax code, you'll talk to a business owner who perhaps unusually isn't all that bothered about paying less tax, I think there was a widespread belief, on the part of corporate America that if we would only adjust taxes downward, then all our problems would be solved, and, eh.
I don't agree with that.
And, later on, an unusual economic indicator in Serbia ice cream sales when I understood that there hear here in baggott is not so easy to find a really good ice cream, I decided to invest my time on these kind of, but first to India's financial capital, Mumbai, a bustling noisy mega city, but parts of it have been really quiet.
The coastal metropolis was brought to a standstill.
After flooding caused by heavy monsoon rain.
Many people spent Tuesday night stranded At their workplaces.
Schools and offices have been closed on Wednesday after the government declared an emergency public holiday.
At least five people have been killed across Mumbai, which many locals still called Bombay, b. b. c.
Those shanty towns are the worst affected into theirs, and five, there were really bad floods officials here, seeing that yesterday's rainfall was the worst since two thousand and five when so much of the city was entirely submerged, lots of people living in those shanty towns.
They've got what you're coming too, into their houses, many of them living near the railway tracks.
And that's one of the reasons that the transport network was so badly affected because railway tracks are in low lying areas, and so that means the rail network was down, and this city of more than twenty million people, hundreds of thousands of people rely on the trains to get to and from work every day.
So many people ended up spending the night in their offices were unable to get home.
Until today, the monsoon rains come every year.
Why do you think Mumbai authorities are not prepared enough for them.
That's a question that many people are asking authorities are saying that there was around three hundred millimetres of rain and some parts of Mumbai, the infrastructure.
Here is just not able to cope with their population numbers and the speed that construction is happening, and The speed that buildings are going up by, it's got a very old drainage system, and a lot of people today are talking about plastic rubbish clogging raisin and, that being one of the reasons why so much of the city were submerged until mum bye really acts on it habit from littering, people were saying that this flooding is not going to go away.
And there's been a building on flood plains as well.
Do you think the authorities will look at restricting that perhaps even demolishing some of the buildings that have been constructed already there are efforts to do that ever since.
Two thousand and five and those really bad floods, there have been a lot of calls for the authorities to act, and the first place.
People want them to start is this construction.
On the other hand, Mumbai, is growing very fast in the city does need to keep up with that.
The bomb Court has actually halted all construction in Mumbai.
At the moment, because of poor drainage facilities and a poor sewage network, so it is taking steps to try and help the situation, but on the other hand, a lot of news channels, especially today are asking why, in the last twelve years, things haven't improved.
So what does the impact been on businesses sharmilla badgie is the head of the Chamber of commerce for Western India, the rain could have been very ready heavy large still do you yesterday, it was Very bad.
So the officers had to be shut down.
The better Department only short in there.
Not a protector and Abbott Office just of fear that there would be a fake lawn and a high tide, and it is possible that Bombay would be getting flooded architect should be shut down at aren't door Turkey was at the Orbiter declared their staff to leave some of the officers had to, I would say, employed, because there was no one could get across to the end.
Most of the officers are not working quality, our shirts called down so dance better situation in Mumbai.
So the monsoon has been incredibly disruptive then to businesses.
What about damages are possible to assess the scale of that, yes, because the entire forgive us people flooded, I'm not the man all and the is, don't give up.
Ian bears have been casualties.
Some are very Institute have been bred people out just what will be their traps have been watched every one of the doctor nothing there, our tree or dead.
I don't think your poor, gets a bit, I have been certain his people like the abandoned their vehicles on the road, because, I mean, it was completely flooded.
It was normally very good cooked like your transport dancer transportation was quarried off the tracks are completely shattered.
How long do you think it will be Mumbai is back to its normal busy bustling sells bloody people already apprehensive.
What's up them Did not even French adults shops, decided to remain closed back tinker becoming better, and I think by now.
Rene not like yesterday, the flooding has subsided, the genius system, how much better.
There's no height state duty.
So my printing duck coming back to Ghana wreck tomorrow wintry a lot what buttoning Bobby the monsoon rains come every year in India.
Do you think that Mumbai, is a city and its businesses, just need to be better prepared, I, yes, they should have been better prepared after a while, I said, be a lot of research about fifty million dollars.
Yesterday, we didn't see much of a change from what he's trying to concentrate, so I think there's a have to seriously, pink and green party battle management plan.
Do you think that experiences like you had over the past couple of days could pose a threat to Mumbai, India's financial capital, particularly when it comes to foreign companies, choice of location in India, it is, that's right on by being the commercial capital, what a restaurant, who have been district rugby accompanied here.
Meanwhile, in the United States, the centre of tropical storm Harvey has moved over part of the state of Louisiana, bringing heavy rain and threatening widespread flooding, oil refineries have been temporarily shut down because of Floodwaters in Texas, hitting the global energy market, one of those refineries is owned by the Anglo Dutch giant Royal Dutch shell, a business editor Simon Jack has been talking to shell's Chief Executive, then ban bearden about the impact of Harvey on its operations.
She was, of course, is a regional headquarters, and also a global headquarters for a number of businesses that we have, so we have quite a few people in Houston, but of course, we have a large refining petrol chemical operations in the Gulf of Mexico, we have a very large, deep water operation, and we are constructing new assets as well.
In the area, as a matter of fact, wetter.
Again, assess the impact of this, how material hasn't been on people production when, how long do you think it will last.
It's early days, Simon, but first of all, I think it's fair enough to say that there's major impact in the eruption on our employees should get imagine many, many of our people, as many as that artists as well have been displayed of a major damage or issues with the home, they've had to put people up in temporary accommodation et-cetera.
I think the disruption for our staff is very substantial difficulties also for people to go round to get to work.
It's a matter of fact, we had to shut down refining a Petro chemicals complex in anticipation of all of this, we have some significant flooding.
Doesn't look like.
We have a lot of wind damage, but still the tide of Commission, and it will take some time to restore that, and we had to evacuate.
One of deep water facilities in the golf, because it was in the path of the hurricane.
But also, it doesn't look as if there was major damage.
And even read her again made landfall there, we are constructing one of our next big deep water project, it looks as if it damaged also limited, so Edward disruption for weeks still to come, but unfortunately, it's not the first time that we had to deal with major disruption of golf.
This is it just gives a sense of where this ranks as in terms of disruption, and I'm not, it is right at the top of things in, but it's the worst of the second, it's kind of hard to say a lot of it still has to play a lot, but of course, if you have to shut down a very large refining petrol chemicals complex, we had to shut down the entire pipeline system around it at the whole network of facilities in the ship channel has been disrupted the ship channel itself is congested with debris.
If you see how much disruption.
There is two people and output of capacity to restore.
I think this is a, this is a major thing where ranks kind of hard to say, but it is, it is a major event for the industry.
And, of course, for the people of Houston.
And what about the impact on production is that a material impact on your production capacity.
I would say that is actually quite limited in the bigger scheme of things.
So of course we have but one of our facilities, we had to evacuate.
But let's see when it comes back, that can be a matter of a few days or weeks or a bit longer, depending on whether it's damaged, but in the bigger scheme of things.
That is not that material.
So I don't expect to see some disruption on world markets.
As a result of this, then van bearden, let's discuss that, and some of the day's other markets news with Chris Beacham, an analyst at I.G. market.
Hi, Chris, what do you make, then, of what the shell boss was saying, yeah, I think it's these big oil giants that they know the areas in which they operate.
I think it reflects that caution the precautions they've taken to make sure that they're operations aren't too disrupted by these kind of weather events.
The interesting, I think broader implications for the markets are terms, this is hurricane is the fact that your prices not risen, as you might expect, with this kind of a major disruption in terms of supply, you seen petrol prices rise in the States, but actually, the price, the whole is down, which sort of shows you think how much there is over supply In the global very big feet for the last couple of years.
It is a an area growing at a rapid rate, of course, but, so much so marks and Spencer a stalwart of the British high street could lose its Crown as the U.K. fashion industry's big beast to its younger Internet rival a sauce sausage, as the latest sign of traditional companies being overtaken by newer tech firms are, here's the B.B.C.'s near she Sunda was more has over two hundred million visitors a year, more than three hundred shops and five hundred million square feet of retail space.
I'm standing in Oxford street in London, it's Europe's busiest and favourites.
Or is it.
I can see giant global brands like marks and Spencer's Topshop Selfridges anger, but one retailer, who is set to be crowned for having the largest market value is not even press Athos the Internet only fashion retailer is worth four point nine three billion compared with marks and Spencer's five point zero five, they're saying it's just a matter of time before their hundred thirty three year old high street giant loses its could this be the end of shopping in store.
We're online shopping habits, continue to rise.
Let's ask people here.
What they Nike town marks and Spencer's, I prefer to shop in a physical shock so Brian ever cos I'm on holiday, so my smokes Liza Somewhere else.
So, yeah, I just, I know this is the best buys to get all toxic, I don't like shopping online, because I find it hard to get the right size as Wetherby for shoes or five say motorcycle helmets or things like that, it's better to go in a drawer.
We mostly Sharman's sharmin twice before of us now, I wouldn't buy shoes online, and it trade Mont first Bob Jacko t. shirts online, but only from a contrast obviously recount bundled smell or texture.
I can see in the fridge, from twenty years, time.
Virtual close, I will Oxford street to high streets tighter than two or three years' time, will be around in twenty or thirty years' time.
I am originally from Cornwall years name, you're lying and defend roadside boy, like the Club up, it is extremely busy, so that's gone of some shoppers in London, they're talking to initially some will Chris Beacham is still with us, Chris, what do you think this tells us about the health of good old fashioned bricks and mortar shopping.
I think it does show.
This is quite a seminal shift going on in terms of online.
Becoming a former important retail marketplace.
Investors this, we will talk about becoming far bigger than war might, I think we should, I think, read their rights over on bricks and mortar retail to seen.
If you look at the actual your sales, a sort of animal four billion Pounds.
Last Year, whereas Emma nest sell ten point six billion, so that the scale, in actual activity is far larger sister think a sign that we are seeing a slow shift away, and I think that's what we seen with consumer saying that they're slowly moving towards on my shopping, but it's a slow process.
Oh, k. one another news today, economic confidence in the countries that use the euro currency, raised to the highest level in a decade is the area's economic Malays, well and truly behind it, there has been a remark recovery.
I think it's business confidence, the figure figures, they reflect what we've been seeing of the last few months with surveys of businesses across Europe.
Now partially is the function of the E.C. peas, quantitative easing this bond buying programme that was sort of, and laid the fears of many people across Europe, but there was a major issue.
Chris Beacham there from I.G. markets in London, where the one hundred share index was up half a percentage point at seventy three seventy three in new York the Dow is little moved at twenty one thousand eight hundred and sixty four Donald trump, says the U.S. tax code is too long rates are too high, and so it needs to be reformed.
It is certainly long had seventy thousand pages.
It has considerably more words than the Christian Bible, and the Corporation tax rate At thirty five per cent is higher than in many other rich Nations, the regulations. haven't been overhauled since nineteen eighty six, despite repeated presidential attempts at wholesale change.
So the Donald faces a big challenge persuading Congress to back an overhaul my economic team is developing historic tax reform that will reduce the tax rate on our companies, so they can come and thrive, anywhere, and with anyone.
President trump will be setting out his stall for change later in the mid Western state of Missouri Geoff months singer runs a sales, business, there with his wife and three others, I asked him for his views on the trumps tax plans.
I think there was a widespread belief, on the part of corporate America that if we would only adjust taxes downward, then all our problems would be solved, and I don't agree with that, as a business owner, surely you were welcome paying less tax day.
Well, we might all, but it's part of the, it's just part of the cost of doing business.
It's just one of the many expenses that we have the tax code is six times longer now than it was in nineteen fifty five so doing your annual tax return must be a bit of a nightmare.
Well, I hire a certified public accountant to Dubai taxes than Anna course, I suppose, a lot of small businesses do as well, what do you make of the argument that, if taxes are lower, that If the tax system is simpler, that would mean that businesses would be able to create jobs.
Would that be true.
In your case, I don't think so.
One of the problems that I know faces smaller manufacturing companies is lack of qualified employees.
I mean, we are almost at full employment and the number of people who can work and want to work his dwindling that perhaps is made worse by the fact that President trump once to restrict immigration and those, you know, it's always been proven that recent immigrants are the ones who would some of the lower paying jobs if tax reform, then, is not to get the economy growing to achieve the three per cent annual economic growth rate that President trump has promised, what is the answer.
Why, I don't know that anybody would would argue that we shouldn't always be observing and water tax situation is, but I do think right now that, you know, we do have a problem with the number of available people to work and interest rates have been solo for such a long time, and they will continue to be business as, I think, by and large, are doing very well, the economy, isn't growing as fast as it could, though, it's certainly below its growth trend rate before the financial crisis should businesses like you be taking advantage of those low interest rates, borrowing money, investing in new technology, investing in training your workforce, you could be More productive.
We are a sales Agency, working with different manufacturers.
And so when our case investment in technology may make our jobs easier and allow us to work faster about, I don't know that in our particular case, we would be looking at hiring just doesn't seem to fit for us right now business owner, Jeff mums another in misery.
Here's a pub quiz question for you.
How many countries, he's the C.F. a. currency, the answer is fourteen, don't worry, I won't miss them all, but they're largely former French colonies in central and West Africa.
There's been a storm of controversy lately after a man in Senegal, burned, or c. f. a. banknote in protest at Frances' continuing role in the region's monetary system.
She told me why the C.F. they Frank has become controversial, with some in early twenty years.
Sixteen, there were some demonstration that happen throughout many countries in Francophone Africa these demonstration were quite successful.
And this currency is controversial, as it's considered as assemble the vest of the French colonial time because C.F. ere Frank used to mean French colonies of Africa.
The currency is guaranteed by the French Treasury.
That is one of the main points that are denounced by the anti Frank see F.A. movement, so it's an argument, then about identity, not About economic stability.
Absolutely yes, protesters are mainly denouncing the fact that this Corinne see depends on the French Treasury, and they cannot take many decisions in their own central Bank, as you know, there is the central Bank of West Africa and the central Bank of century African country, and these two governors of the stew.
Central Bank cannot take any decisions without letting no, the French Treasury.
So, would the protesters then like to see the Frank broken up in some way or replaced by national currencies.
I want to see the Frank broken up, but the most radical of them wanted to stop, they want a new current is for each country's, but some more moderated economist, say that it's a really difficult, it might be too insecure.
For all the countries to have their own money.
The currency is tied to the value of the year zero, which is very strong.
At the moment, which means that many people in Western central Africa have more buying power.
When it comes to imported goods than they had previously is that not something which is acting in the currencies favour, actually, that is part of the main advantages.
The main problem is the fact that there are two dependant of the French Treasury, as you may know them their money be Earls are printed in two cities in French in France.
So that is also the like of independency.
So who are the winners.
Then, and Who are the losers from the current situation, the fact that French guarantees the stability of the money makes it really secure.
For instance, if there is a coup in French African country, the money and the value of this money.
Stay the same, but the main inconvenient side is dad people who works in a countryside does, and see how they can take advantages on this money.
It's summer, in the northern hemisphere, and temperatures are pushing past forty degrees Celsius in parts of Europe, so it's no wonder people and Serbia's capital Belgrade have become fond of ice cream.
They've got an enviable selection to choose from.
Following a mini boom of entrepreneurial Jill are to make a setting up shop in the city.
It's a treat for the palate.
And also, perhaps an indication of the improving health of Serbia's economy.
Well, it's a tough job, but a Balkans correspondent guider loidhne bravely agreed to sample some Serbian artist ice cream for us, and this is ground zero when it comes to Belgrade to boot Moritz ice open this achingly stylish shop in the city years ago.
Since then, it's become a Balkan ice cream Empire, with shops around the city at the airport in name but in Montenegro.
Its founder is Moritz freed is an Austrian, he used to work at Lehman brothers Bank are traded high finance for ice fantastic, but then sued for agricultural Goods, if you have great fruits and vegetables in the great ice cream.
Getting the business off the ground in Belgrade made perfect sense, because it is, if you could there les around doing what you wanted to, if you have to is standing, and you have to a setup and their concentration and the right people toward but Morris, isn't alone on the market.
Any more on the cobbled old town slopes of clavier Petra early evening triple parking has become a regular event that's thanks to the popularity of Saturn.
The Officer or black sheep, it's actually surprised that's, yes, I'm guilty it, but though nothing for any, you know, the parking sticker resort on, you have to bitch is one of the young Serbian team behind sudden Officer, they admit they were inspired by Mauritz ice exhort one's colleague of anus Scout up like a cheap, so she's optimistic about the economic prospects for their country's entrepreneurs, we're still growing.
As the country, and then also for a lot of years.
They were really close, so we were not exposed and the original things.
So now, as we are opening up there, several years, the space opened up for her dad to in the Syrian people generally, I really curious and wife to try the queues at so not Officer and worldwide expansion of Moritz ice indicate that it's possible for start ups to thrive here.
Serbia has been leaping up the World Bank's giving business index, as the government has made it easier for entrepreneurs to get up and running, but rank of the veg is a partner at Auditors K.P.M.G. entrepreneurs are going out, I think, at their conference, take the risk.
Do you try new products and new services in a more traditional rigid country you didn't have, in the past, I think the really breaking to ring that's actually a big breakthrough for Dublin for the appetite for ice cream shows no signs of Association, the latest arrival is support a genuine Italian gelato made by Paolo broom Amarna a chef and restaurateur from battir gar Moore, he says, ice cream and Belgrade are made for each other.
When I understood that there to hear here in baggott is not so easy to find a really good ice cream, I decided to do is estimate on these kind of all that's left for me to do is recommend the flavours lemon and basil from Moritz ice green tea and candied strawberries from sudden Officer and classic pistachio from support, yes, it was a tough assignment, but someone had to do it.
It's lovely daily, that was the B.B.C.'s guider lordy there reporting from the Serbian capital Belgrade.
That's about it.
From this edition of the programme.
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