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tv   World Business Report  BBC News  July 20, 2022 5:30am-6:01am BST

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this is bbc news with the latest business headlines for viewers in the uk and around the world. how to tame inflation — the bank of england says a half a percent increase in interest rates is likely — will it work? the latest inflation data is out today. 1 million subscribers lost — that's the news from netflix as it announces a crackdown on password sharing. and we have the story of the danish meatless company that decided to base itself in the north of england.
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so let's now get down to business and we begin with the bank of england and the warning that interest rates could go up by as much as half a percentage point at its next rates meeting. that's according to the bank's governor, andrew bailey. he was speaking to financial leaders in london last night and pledged to do whatever it takes to get inflation under control. we will have to act forcefully. in simple terms it means a 50 basis point increase will be among the choices on the table when we next meet. but it is not locked in. and anyone who predicts that we will do that is doing that based on their own view. we do not pronounce rate decisions for one very simple reason, and pc decisions
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are based on deliberation at the time on nine people focused on retaining inflation to the 2% target sustainability. well, injust over an hour's time we will get the latest inflation figures for the uk. prices have already been rising at the fastest rate in a0 years at 9.1%. joining me now is simon french, chief economist at panmure gordon. good morning. did you get any sleep? maybe not? let's talk about inflation which is hotting up. what will be here today when the numbers are released?— today when the numbers are released? inflation is already at a40 year _ released? inflation is already at a40 year high, _ released? inflation is already at a40 year high, 9.196 - released? inflation is already at a40 year high, 9.196 and l released? inflation is already at a40 year high, 9.196 and i | at a40 year high, 9.1% and i think we will get a number close, but really all eyes from the perspective of expecting double—digit inflation of io% double—digit inflation of 10% plus will have to wait until october more likely when we get the new energy price, expected to go up a further £1000 per
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year per household, passing through to the inflation number and move it considerably higher, i expect.- and move it considerably higher, i expect. and andrew bailey is well _ higher, i expect. and andrew bailey is well aware - higher, i expect. and andrew bailey is well aware of - higher, i expect. and andrew bailey is well aware of that i bailey is well aware of that and that was his warning at the last meeting that they were looking at double—digit inflation by the end of the year and now he is saying it is likely. they will go up half a percent at the next meeting. how effective is this in terms of what the economy is doing? interest rates have gone up month on month for quite a few nous. , , ,., ~ month on month for quite a few nous. , , ., _ nous. he is spoken previously about an _ nous. he is spoken previously about an uncomfortable - about an uncomfortable trade—off that he and his eight policymakers have to make. by increasing interest rates they are trying to deflate domestic demand and domestic consumption — — inflate and the use the word domestic because a lot of the inflation is coming through importers external through the uk, mainly through energy and also through food and it is a
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very uncomfortable have to do, to do, to have to lean into external inflation with internal interest rates. but thatis internal interest rates. but that is actually the scenario that is actually the scenario that the bank find themselves in and indeed many central banks around the world, an imperfect tool to deal with a very uncomfortable inflation. but would you argue that in the months ahead, domestic demand will fall? because we are feeling worse off. we haven't got as much money to spend, especially in the autumn when energy bills will go up again? i think they will. domestic demand is already softening but it probably needs to soften further for the it probably needs to soften furtherfor the bank it probably needs to soften further for the bank of england to retain if you like its credibility at being forthright in inflation. it would argue, perhaps not publicly back, but perhaps not publicly back, but perhaps privately that dealing
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basis is more the role of the chancellor and that will be their focus whereas the inflation would have to be the bank of england will have to be myopic on dealing with thank but now let's the earnings season is well underway and netflix is the latest to tell wall street how its doing. the streaming giant revealed its lost nearly a million subscribers from april to june. that's fewer than the 2 million customers the company had warned investors it would lose. netflix said the strong us. dollar hit revenue, which grew 9% to us$7.97 billion below analyst estimates of $8.04 billion. so how is netflix doing, especially as the competition in the streaming industry heats up? harry mccracken is global technology editor at fast company
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in san francisco. welcome. your take on the latest news _ welcome. your take on the latest news from _ welcome. your take on the latest news from netflix? l latest news from netflix? venues are not great but they did a decentjob of managing expectations — — to the news was not great so losing a million subscribers, did not look like a disaster. it looked like better news than expected. they handled it pretty well. what is key for netflix going forward? it is talked about the crackdown on password sharing, something very difficult to police, but what is critical for netflix now? it had first mover advantage but it is a very crowded market? incredibly crowded. now— very crowded market? incredibly crowded. now so _ very crowded market? incredibly crowded. now so many - very crowded market? incredibly crowded. now so many other - crowded. now so many other giants like hbo max and disney plus, some completely free streaming services these days and people will not keep adding
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more services and paying for four or five of the services and if they add something new it is likely they will cut something and because netflix is the largest, it has the highest chances of someone stopped paying at least for the given time. stopped paying at least for the given time-— given time. basically, is it down to — given time. basically, is it down to content? - given time. basically, is it down to content? is - given time. basically, is it down to content? is it - given time. basically, is it i down to content? is it about having the must watch series, the movies etc?— having the must watch series, the movies etc? that is a huge art of the movies etc? that is a huge part of it- _ the movies etc? that is a huge part of it- they _ the movies etc? that is a huge part of it. they are _ the movies etc? that is a huge part of it. they are spending i part of it. they are spending $17 billion this year on content and say they expect to spend that much on the ears to come. that seems fine. hollywood has shown for decades that throwing money only gets you so far and it is more about picking the right shows. they still have a pretty good record on that with things like bridget turn, squid game and stranger things and i do think they do need to go beyond traditional strategies and charging a fairly large amount for a monthly service and raising ourfee, particularly
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in these days when people have other things to spend money on. and inflation has people concerned. they do need to open up concerned. they do need to open up the tiered services where people pay less for services and netflix monetise is through advertising which they said for many years they would not do at all and now they acknowledge needs to be part of this strategy. 15 needs to be part of this strategy-— needs to be part of this strate: . , , ., strategy. is this the trend now for netflix? 1 million - for netflix? 1 million subscribers is less then the warning of a 2 million subscriber loss but will be seenin subscriber loss but will be seen in the next quarter and the next quarter?— seen in the next quarter and the next quarter? they expect next quarter— the next quarter? they expect next quarter to _ the next quarter? they expect next quarter to be _ the next quarter? they expect next quarter to be brighter. i next quarter to be brighter. they really have been challenged in the high market of the us but asia—pacific and latin america is still growing for them. 220 million viewers out there, no longer easy to find additional people to make up find additional people to make up for the find additional people to make upforthe group find additional people to make up for the group that will inevitably leave them each year. inevitably leave them each ear. ., ~' inevitably leave them each ear. ., ~ , ., inevitably leave them each ear. ., ~ ., year. thank you. good to get our year. thank you. good to get your analysis. _
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the battle between the world's richest man and social media firm twitter has reached new heights. a us court has set a date for twitter�*s lawsuit against elon musk, forcing the billionaire to follow through on his bid to buy the company. the decision is a blow to the tesla ceo who wanted the trial to start next year. our business correspondent in new york, samira hussain, has the details. in the hearing, lawyers the elon musk argued that the way twitter tracks fake accounts on the site is misleading. the social media company says roughly 5% of total monthly users are spam but elon musk believes the real number is actually much higher. in order to prove that in court, the billionaire and his lawyers said it would require many months to assemble the key witnesses and a tower, which is why they were requesting the trial begin in february of next year. but the lawyers for twitter said the uncertainty
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over elon musk�*s takeover bid has been and continues to be detrimental to its shareholders and the company's business. ultimately, thejudge and the company's business. ultimately, the judge was persuaded in the battle between twitter and the world's richest man is set to begin in october and scheduled to last five days. after being paralysed during the covid lockdowns around the world, the global aviation industry is flying again but the recovery has been a turbulent one. airports have been heavily congested, airlines have had to cancel flights and aircraft manufacturers have had to cope with seemingly endless disruption to parts supplies, as they try to meet a new wave of demand for planes. among them is the european giant airbus, which has been touting its wares this week at the farnborough airshow near london. our business correspondent theo leggett is there and met with the airbus
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chief executive. we have had issues across the board. it comes from small components and small electronics components as well like other industries, the car industry. there are aerospace specific issues we have to deal with. there is no specific commodity impacted more than others. it is an issue with the staff in the us, europe, an issue with logistics, finding raw materials is not easy at the moment. all suppliers are struggling to emerge from 15 months of flying idle, which is basically what we're seeing, coming out of covid—19 that is difficult and we think it will last for at least 12 months and thatis last for at least 12 months and that is the situation we are in. that is the situation we are in, , ., , that is the situation we are in, y., , ., that is the situation we are in. so you still have supply chain problems _ in. so you still have supply chain problems and - in. so you still have supply chain problems and we - in. so you still have supply| chain problems and we still have covid—19 problems so are you in a position to survive any futures shocks? indie you in a position to survive any futures shocks? we had one
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recentlv with _ any futures shocks? we had one recently with the _ any futures shocks? we had one recently with the war _ any futures shocks? we had one recently with the war in - recently with the war in ukraine, that came with even more complexity and difficulties. we have inflation and interest rates going up. we have many shocks. we have to get used to a situation where there will be crisis you're in there will be crisis you're in there and we are working very hard on our own resilience through difficulties of that kind. �* , , , through difficulties of that kind. �* , , through difficulties of that kind. ,, ,_ through difficulties of that kind. ,, kind. airbus is a company and ou kind. airbus is a company and you pinned — kind. airbus is a company and you pinned your _ kind. airbus is a company and you pinned your future - kind. airbus is a company and you pinned your future to - you pinned your future to hydrogen. what have you done that and what makes you convinced it is the right future?— convinced it is the right future? . , ., future? that is not the case. we are not _ future? that is not the case. we are not betting _ future? that is not the case. we are not betting on - future? that is not the case. we are not betting on one i we are not betting on one technology. we have a multifaceted way of dealing with the transition. hydrogen plays a role but we start with very fuel—efficient planes, thatis very fuel—efficient planes, that is the best way to reduce fuel consumption in the short term. the planes we are delivering now is certified for 50% fuel—efficient field today so we are working hard and accelerating innovation with
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partnerships with airports and energy manufacturers and others and carbon capture. we heavily believe that is one technology to contribute to but in the longer term we think it is important to fly planes with no carbon, zero, and the only way to do this in our perspective is hydrogen and therefore we are engaging in hydrogen technology seriously but not betting only on that technology. it is quite far away. we need to make a difference now.— away. we need to make a difference now. that was the chief executive _ difference now. that was the chief executive of _ difference now. that was the chief executive of airbus. - stay with us on bbc news, still to come: the story of the danish meatless company that decided to base itself in the north of england. radio: i see you coming down the ladder now. i that's one small step for man... ..one giant leap for mankind. a catastrophic engine fire is being blamed tonight.
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for the first crash - in the 30—year history of concorde, the world's only supersonic airliner. _ it was one of the most vivid symbols of the violence and hatred that tore apart the state of yugoslavia but now, a decade later, it's been painstakingly rebuilt and opens again today. there's been a 50% decrease in sperm quantity and an increase in malfunctioning sperm unable to swim properly. seven, six, five... thousands of households across the country are suspiciously quiet this lunchtime as children bury their noses in the final instalment of harry potter. this is bbc world news, the latest headlines: europe wakes up
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to more wildfires. blazes rage right across the continent, forcing thousands of people to flee their homes. in the us, 17 members of congress from the democratic party are arrested at a rally for abortion rights. it's another dramatic day for italian prime minister mario draghi whose resignation last week was rejected by the president. mr draghi, who has led a unity government for 17 months, will tell the senate in the morning whether or not he is prepared to stay in office. hours later there will be a vote of confidence in the government. mario draghi's populist coalition partner five star withdrew its support in a confidence vote last week, which prompted the prime minister to tender his resignation, triggering a political crisis in italy. fahad kamal is chief investment officer at kleinwort hambros in london. good morning to you. this is
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very critical, this situation in italy. the european central bank keeping an eye on it one of the most indebted country in the eurozone, looking at all sorts of challenges, some of which we are familiar with, cost of living, rising inflation, your thoughts on what might happen today? obviously don't know, it is a dramatic day as often happens, you would have heard from many sources, this is the 71st government in the last 75 or so years, so this is not unusual. so far the market don't seem to be too disturbed, the italian equity market is down 20% so similar to, equity market is down 20% so
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similarto, the equity market is down 20% so similar to, the spread over considered very safe above the long—term average i would say the. if the rally should is the reason that we have become used to political crisis in italy. leaders, governments go and come fairly regularly, is it different this time, many saw mario draghi as a very safe pair of hands given his background and effectively the european central bank for so long. if he were to go today if there was a vote of no—confidence in the government, where would he be? i think we would see a spike in the italian government bond yield no question about that, the equity market would be
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affected as well, it would be very damaging. he is, as you said a symbol of such competent in a country that politically anyway is known for its fractious nurse, and lack of ability to do much. he was a breath of fresh air, he is massively competent, the reason why the market has responded as you may have thought it would so far as they back that he will stay on, he has survived this far, nobody wants another election, most parties have support for him, we would imagine he would somehow stay on. if that changes, the markets surely will react. bill markets surely will react. all ri . ht, markets surely will react. all right. we _ markets surely will react. all right, we shall watch closely, certainly today. thank you for your thoughts on that. if you are starting a business, where do
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you base it? it's a fundamental question you need to get right — it could have a huge bearing on your future success. we've been hearing from one successful food entrepreneur who thinks some people make a common mistake when it comes to location. when you are setting up your own business don't be obsessed and setting it up in the capital of your country. when i set up the business i set it up and leaves on the north of england, and i do so because i looked at the prices in london, and it was very expensive to improve and looking at leaves, there is a huge area around lead with a
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lot of food manufacturers and food businesses, and leeds university also has a very good food science laboratory which is a good place for us to recruit from. in capital cities the cost of space is much higher. and leads we sit in the centre, the old milling district, we have a whole building with four floors in london i would probably have gotten a corner of one floor for the same cost. don't forget how powerful a regional setup could be rather than focusing on only the capital, there are a lot of resources, regionally, in many countries and i believe they are fairly untapped. that is our ceo — they are fairly untapped. that is our ceo secret _ they are fairly untapped. that is our ceo secret series - they are fairly untapped. that is our ceo secret series of which there are many and they have all sorts of top tips, so do take a look. we have inflation numbers coming out in the uk this morning as mentioned, in the uk the price
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of food is one of the biggest inflation drivers, we have people facing an additional yearly spend of food than for £50 at british supermarkets, inflation has occurred could go buy up is more than 11% in the months ahead by winter. that smash. —— 450. with fuel costs this could become more intense. how are households managing this increase with the cost of living. we sent hannah miller to the town of derby to find out. ,, . at to the town of derby to find out.- at this - to the town of derby to find . out.- at this community out. switch. at this community centre peeple _ out. switch. at this community centre people are _ out. switch. at this community centre people are not - out. switch. at this community| centre people are not wrestling just with each other but the rising cost of living as well. we go to visit a food centre set up inside. and volunteers say they are seeing evermore people needing help. the? say they are seeing evermore people needing help. they will come in that _ people needing help. they will come in that they _ people needing help. they will come in that they will - people needing help. they will come in that they will say - come in that they will say they just can't afford to make ends meet. ., ., ,. ,., meet. how do you feel when you hear meet. how do you feel when you henr that? _
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meet. how do you feel when you hear that? i _ meet. how do you feel when you hear that? i think _ meet. how do you feel when you hear that? i think it _ meet. how do you feel when you hear that? i think it makes - meet. how do you feel when you hear that? i think it makes me i hear that? i think it makes me cuite hear that? i think it makes me quite angrv- — hear that? i think it makes me quite angry. today _ hear that? i think it makes me quite angry. today anna - hear that? i think it makes me quite angry. today anna is - quite angry. today anna is takin: quite angry. today anna is taking out _ quite angry. today anna is taking out the _ quite angry. today anna is taking out the delivery - quite angry. today anna is taking out the delivery to l taking out the delivery to pensioners christine and mal. they receive parcels when they need, gratefulfor this they receive parcels when they need, grateful for this and the government rebate they have already had on their energy bills. that already had on their energy bills. �* ., , �* , bills. at the moment is it's not too bad _ bills. at the moment is it's not too bad because - bills. at the moment is it's not too bad because i- bills. at the moment is it's not too bad because i can l bills. at the moment is it's i not too bad because i can still make something out of nothing. but eventually if it gets any worse we will start to... it depends on how the severe the with -- — depends on how the severe the with —— winter is going to be and — with —— winter is going to be and how— with —— winter is going to be and how severe inflation is going _ and how severe inflation is going to _ and how severe inflation is going to be balancing the two out is — going to be balancing the two out is unknown territory. back at the centre, _ out is unknown territory. back at the centre, wayne - out is unknown territory. back at the centre, wayne says - out is unknown territory. e:c«; at the centre, wayne says some of the customers he serves that the food hub are already desperate.— the food hub are already desperate. the food hub are already deserate. ., ., ., ., desperate. we have a lot of --eole desperate. we have a lot of peeple on _ desperate. we have a lot of peeple on the _ desperate. we have a lot of people on the former - desperate. we have a lot of people on the former says i desperate. we have a lot of. people on the former says no food in the house whatsoever. that has been on for days no food over certain amount of days, three or four days food over certain amount of days, three orfour days i've had no food. can't afford for
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food and gas and sometimes can't afford to heat. it’s can't afford to heat. it's affecting _ can't afford to heat. it's affecting what - can't afford to heat. it's affecting what you - can't afford to heat. it's affecting what you get people? a lot of people taking things you can use in a kettle or a microwave. you can use in a kettle or a microwave-— you can use in a kettle or a microwave. as the local vicar dro -s microwave. as the local vicar drugs into — microwave. as the local vicar drops into his _ microwave. as the local vicar drops into his he _ microwave. as the local vicar drops into his he says - microwave. as the local vicar drops into his he says pricing patient is an ever—growing consent. i patient is an ever-growing consent-— consent. i think it's catastrophe - consent. ithink it's catastrophe of - consent. i think it's - catastrophe of monumental proportions, overthe catastrophe of monumental proportions, over the next few weeks and especially into the wind i can't simply begin to protect our people are going to live in any shape or form. it's palpable level of fear for�*s lives at the moment stop as people here strive to make ends meet this summer. the people here strive to make ends meet this summer.— meet this summer. the cost of livin: is meet this summer. the cost of living is only — meet this summer. the cost of living is only expected - meet this summer. the cost of living is only expected to - meet this summer. the cost of living is only expected to rise l living is only expected to rise further, and organisations like this are already working flat out. it's tough, isn't it, it's really tough, a lot of concern
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about the months ahead, autumn and winter, but someone in the uk, you have one 195 million, the euro millions jackpot. so that ticketholder you need to check because maybe you can help out. we have tony duffy i did ask earlier in the programme on twitter what would you do at —— with the money? he has been in touch, he said i would probably give most of it away. please get in touch we need it. paul prompt and said he would take me out to dinner. come on folks, you must be more thoughts out there in terms of what you might do with 195 million. i want to hear, i met sally bund, c, on twitter. financial markets are uppity, strong gains in asia, wall street with the earnings season
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under way, street with the earnings season underway, investors street with the earnings season under way, investors are pleased so far with what they are hearing from most companies reporting. you are up to date, i'll see you soon, have a good day. hello. our historic and unprecedented heatwave is now coming to an end, but on tuesday, we recorded a new provisional uk record of 40.3 celsius. normally when we break records, it's by a fraction of a degree, but that's the old record. we've exceeded it by more than 1.5 degrees. this is very significant. eastern parts of the uk start wednesday, still in the grip of some relatively warm air, but out towards the west, something cooler and fresher flowing in from the atlantic. so, waking up to another warm start across eastern parts of england, but with some spells of sunshine. out towards the west, wales, the southwest seeing some cloud and some showers, the odd heavy one. those showers drifting eastwards through the day. quite a lot of cloud for eastern scotland, more brightness
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further north and west. sunny spells and just the odd shower there for northern ireland. temperatures lower than they have been. still 29 in the east of england — normally we consider that hot, but obviously not as hot as it has been — more like 18—20 for a good part of scotland and northern ireland. now, through the late afternoon and evening, we will see some quite intense thunderstorms across parts of northeast england, the midlands, east anglia, maybe the southeast — quite hit and miss, but some places could get quite a lot of rain in a short time. a lot of cloud holding on across eastern areas, more clear spells out towards the west, but it will be cooler and fresher for all of us as we start thursday morning. now, the next thing i think many of us would really like is some rain, but with high pressure building in for thursday, we're not going to see very much of that. yes, there mayjust be the odd shower here and there, a lot of cloud across central and eastern parts of england. that could produce the odd spot of rain, but for most, it is looking like a dry day. some spells of sunshine, particularly out towards the west. temperatures, though, much lower than they have been
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at 17—25 celsius north to south. friday, we stick with that cooler feel. a greater chance of seeing showers on friday, but they certainly won't crop up everywhere. they will be quite hit and miss. some will be heavy, some will be thundery. best chance of brightness, i think, across southern and southwestern parts, but temperatures much closer to where they should be, actually, for the time of year, 15—23 celsius. as we head into the weekend, the best chance of seeing some rain will be up towards the north and the west of the uk. further south and east, it should stay dry with some spells of sunshine and it will actually start to turn a bit warmer once again.
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good morning, and welcome to breakfast withjon kay and nina warhurst. our headlines today: dozens of wildfires and major incidents declared across the uk. firefighters describe it as absolute hell. emergency services are assessing the damage _ emergency services are assessing the damage in_ emergency services are assessing the damage in wennington after a number of houses _ damage in wennington after a number of houses and other buildings were destroyed — of houses and other buildings were destroyed by fire. we have the latest — destroyed by fire. we have the latest. ,., ., destroyed by fire. we have the latest. ., ., , _ latest. good morning from derby, where i latest. good morning from derby, where i will _ latest. good morning from derby, where i will be _ latest. good morning from derby, where i will be finding _ latest. good morning from derby, where i will be finding out - latest. good morning from derby, where i will be finding out exactly| where i will be finding out exactly how much — where i will be finding out exactly how much prices _ where i will be finding out exactly how much prices have _ where i will be finding out exactly how much prices have gone - where i will be finding out exactly how much prices have gone up i where i will be finding out exactly. how much prices have gone up when the latest _ how much prices have gone up when the latest figures _ how much prices have gone up when the latest figures come _ how much prices have gone up when the latest figures come out - how much prices have gone up when the latest figures come out in - how much prices have gone up when the latest figures come out injust- the latest figures come out injust over an _ the latest figures come out injust overan hour~ _
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the final countdown. conservative mps vote on which two candidates will go through to fight

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