Latest / Best of Business / Vicky Price: Business Correspondent on rising oil prices, jet fuel stocks

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Vicky Price: Business Correspondent on rising oil prices, jet fuel stocks · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks. It'd be
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  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio.
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  Speaker 2: It is time for our business correspondent and joining us
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  Speaker 2: now as the Key Price, Chief Economic Advisor at the
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  Speaker 2: UK Center for Economics and Business Research and former UK
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  Speaker 2: Government advisor. Good morning, Vicky, Good morning. Okay, So oil
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  Speaker 2: prices are on the way up again giving the uncertainty
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  Speaker 2: that we're seeing in the Middle East, and this is
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  Speaker 2: having an impact on airline stocks.
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  Speaker 3: Well absolutely, I mean everyone was worried about this for
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  Speaker 3: quite some time. I know how airlines were going to do,
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  Speaker 3: particularly through the summer, which is the sort of top
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  Speaker 3: period at least the summer over here in Europe. And
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  Speaker 3: of course jet fuel had been one of the issues
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  Speaker 3: that everyone was worried about, particularly where there was going
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  Speaker 3: to be freely available. Prices is shot up, and now
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  Speaker 3: that's getting a little bit worse because Russia just announced
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  Speaker 3: that they were going to limit their own or ban
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  Speaker 3: their own experts of sort of jet fuel. They were
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  Speaker 3: still coming through somehow, and there is an issue about
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  Speaker 3: a lot of the jet fuel that we using. Even
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  Speaker 3: if it's refined somewhere else, it actually comes from Russia
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  Speaker 3: and gets refined in India, and we've all been quite
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  Speaker 3: for example, we've all been quite open to accepting that
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  Speaker 3: into the sort of whole airline operation system. So that's
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  Speaker 3: going to be a bit of a problem if some
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  Speaker 3: of that, even that type of route is restricted because
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  Speaker 3: we kept that open. In fact, we've extended that in
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  Speaker 3: the UK two in terms of how long we're going
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  Speaker 3: to be prepared to do that, So that's one of
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  Speaker 3: the big big issues. And airlines are beginning to also
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  Speaker 3: be affected in terms of this market value that they
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  Speaker 3: have in those stock.
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  Speaker 2: Marketsky, tell me what's happening with the EU. They are
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  Speaker 2: very concerned about the number of Chinese imports coming into
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  Speaker 2: the region and now that Beijing is sort of threatening
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  Speaker 2: to make a move on this, and Beijing has kind
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  Speaker 2: of retaliated.
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  Speaker 3: Well they haven't retaliated quite yet, but they're threatening to
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  Speaker 3: do so. And you're absolutely right. I mean, what is
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  Speaker 3: going on is that the EU has finally they realized
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  Speaker 3: how much they're dependent on Chinese imports in all sorts
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  Speaker 3: of areas, including of course, in their attempt to move
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  Speaker 3: fast towards net zero. Because a lot of things come
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  Speaker 3: from whether it's batteries, whether it's solar panels, all come
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  Speaker 3: from China, and a lot of goods of course come
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  Speaker 3: into Europe which have had already they think big subsidies
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  Speaker 3: given to them by the Chinese government. So they're under
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  Speaker 3: mining the production that exists in Europe, which is suffering.
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  Speaker 3: We've got some latest data coming out just now which
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  Speaker 3: suggests that May was a pretty bad month for manufacturing
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  Speaker 3: in Europe. Not so bad in the UK, which actually
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  Speaker 3: did certainly in Europe. So they are looking at how
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  Speaker 3: they can perhaps limit some of those imports and the
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  Speaker 3: dependence on China and that type of retaliation, if you like,
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  Speaker 3: which is the way that the Chinese see. This will
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  Speaker 3: lead a thing to China perhaps seeing what they can
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  Speaker 3: do in terms of imports from the EU. And that's
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  Speaker 3: going to be a problem for everyone. I mean, we
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  Speaker 3: all want free trade, but Europe thinks that is becoming
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  Speaker 3: very uncompetitive and needs to do something about it.
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  Speaker 2: Thank you Price, Thank you so much for your time
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  Speaker 2: this morning. Appreciate it.
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