Latest / Early Edition with Ryan Bridge / 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 · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: It is time for our business correspondent and joining us
• 0:02
  Speaker 1: now as Vicky Price, chief Economic Advisor at the UK
• 0:05
  Speaker 1: Center the Economics and Business Research and former UK Government advisor.
• 0:08
  Speaker 1: Good morning, Vicky, Good morning. Okay, so oil prices are
• 0:12
  Speaker 1: on the way up again giving the uncertainty that we're
• 0:15
  Speaker 1: seeing in the Middle East, and this is having an
• 0:17
  Speaker 1: impact on airline stocks.
• 0:20
  Speaker 2: Well absolutely, I mean everyone was worried about this for
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  Speaker 2: quite some time. I know how airlines were going to do,
• 0:25
  Speaker 2: particularly through the summer, which is the sort of top
• 0:28
  Speaker 2: period at least the summer over here in Europe. And
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  Speaker 2: of course jet fuel had been one of the issues
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  Speaker 2: that everyone was worried about, particularly whether it was going
• 0:36
  Speaker 2: to be freely available. Prices has shot up, and now
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  Speaker 2: that's getting a little bit worse because Russia just announced
• 0:42
  Speaker 2: that they were going to limit their own or ban
• 0:45
  Speaker 2: their own exports of st jet fuel. They were still
• 0:48
  Speaker 2: coming through somehow, and there is an issue about a
• 0:50
  Speaker 2: lot of the jet fuel that we're using, even if
• 0:52
  Speaker 2: it's refined somewhere else, it actually comes from Russia and
• 0:56
  Speaker 2: gets refined in India. And we've all been quite for example,
• 1:00
  Speaker 2: we've all been quite open to accepting that into the
• 1:04
  Speaker 2: sort of whole airline operation system. So that's going to
• 1:07
  Speaker 2: be a bit of a problem if some of that,
• 1:09
  Speaker 2: even that type of route is restricted because we kept
• 1:14
  Speaker 2: that open and in fact we've extended that in the UK
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  Speaker 2: too in terms of how long we're going to be
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  Speaker 2: prepared to do that, So that's one of the big,
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  Speaker 2: big issues. And airlines are beginning to also be affected
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  Speaker 2: in terms of this market value that they have in
• 1:28
  Speaker 2: those stock.
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  Speaker 1: Marketsky, tell me what's happening with the EU. They are
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  Speaker 1: very concerned about the number of Chinese imports coming into
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  Speaker 1: the region and now that Beijing is sort of threatening
• 1:39
  Speaker 1: to make a move on this, and Beijing has kind
• 1:41
  Speaker 1: of retaliated.
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  Speaker 2: Well they haven't retaliated quite yet, but they're threatening to
• 1:46
  Speaker 2: do so. And you're absolutely right. I mean, what is
• 1:48
  Speaker 2: going on is that the EU has finally realized how
• 1:52
  Speaker 2: much they're dependent on Chinese imports in all sorts of areas,
• 1:55
  Speaker 2: including of course in their attempt to move fast towards
• 1:59
  Speaker 2: net zero, because a lot of things come from whether
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  Speaker 2: it's batteries, whether it's solar panels, all come from China,
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  Speaker 2: and a lot of goods of course coming to Europe
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  Speaker 2: which have had already they think big subsidies given to
• 2:13
  Speaker 2: them by the Chinese government, So they're under mining the
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  Speaker 2: production that exists in Europe, which is suffering. We've got
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  Speaker 2: some latest data coming out just now which suggests that
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  Speaker 2: May was a pretty bad month for manufacturing in Europe.
• 2:27
  Speaker 2: Not so bad in the UK which actually did OK,
• 2:30
  Speaker 2: certainly in Europe. So they are looking at how they
• 2:33
  Speaker 2: can perhaps limit some of those imports and the dependence
• 2:36
  Speaker 2: on China and that type of retaliation, if you like,
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  Speaker 2: if which is the way that the Chinese see this
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  Speaker 2: will lead a thing to China perhaps seeing what they
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  Speaker 2: can do in terms of imports from the U. And
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  Speaker 2: that's going to be a problem for everyone. I mean,
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  Speaker 2: we all want free trade, but Europe thinks that is
• 2:55
  Speaker 2: becoming very uncompetitive and needs to do something about it.
• 2:58
  Speaker 1: The key price. Thank you so much for your time
• 3:00
  Speaker 1: this morning. Appreciate it. For more from Early Edition with
• 3:04
  Speaker 1: Ryan Bridge, listen live to News Talks it be from
• 3:07
  Speaker 1: five am weekdays, or follow the podcast on iHeartRadio.