Transcripts For ALJAZ Counting The Cost 20220816 : vimarsana

The bar on us who are thinking leadership in our country not to sell our ethnic cities, but to saddle our program. Our manifesto of our agenda and our plan. We do not have the luxury to point fingers. We do not have that luxury to apportion blame. We must close ranks and walk together for a functioning democratic prop beth. Okay. Now, while the announcement was delayed because of scuffles inside the vote, counting center for the 7 members of electro commissioner refusing to endorse the result. That fuel fears of further violence allegations of vote for the 1st United Nations charted ship carrying ukrainian grain for africa has set sail, had left my port on the black sea and is bound for djibouti as part of the World Food Program scheme to help countries facing vanity, the un says it can support a visit by the International Atomic Energy Agency to ukraines apparition Nuclear Power plant if both russia and ukraine agree, moscow and key the cues each other of shelling the plant which russia sees control of in march. The u. S. State Department Says iran must abandon demands it called unacceptable, and talks to revive them. Battle 2015 nuclear deal to iran says an agreement could be reached in the coming days if certain issues are resolved. China has announced more live fire military exercises are on taiwan, saying its ready to smash any foreign interference in its affairs. The warning coincided with a visit by a u. S. Congressional delegation to the territory, which china claims as its own. Those of the headlines, the news continues. He and al jazeera, after counting the cost, sent you and thanks for watching the 1960 s in the decade of change across the middle east and north africa. In the 2nd of a 3 part series, Al Jazeera World explores the explosion of arts and culture of intellectuals. Were building new dreams and ideas because the revolutions of the 960 s were no political. But all the mining from music to t. V. The poetry of protest and revolutionary food making the 60s in the arab world. Culture. Oh, now jazeera ah, i hello there, im to start the a t a and this is counting the cost on al jazeera. You are, look at the wild, a business and economics. This week, oil and gas majors are raking in their outings on the backs of the poorest. People says that the United Nations, its urging a windfall tax on their profits to support households and the most vulnerable will governments. Hed the call. Also this week the races on for semiconductors and the u. S. Is spending billions of dollars to boost domestic manufacturing. Well, keeping an eye on china can america rival asians knock us . Plus the sales of video game giants have dropped in the 2nd quarter of this year. All game is spending less time playing and is its game over for the pandemic. Boom. Ah, now a new study found the oil and gas industry has produced almost 3000000000. 00 a day and profits the last 50 years. Its now caching and even more money as the war and ukraine has driven up energy prices. Do, and secretary general has criticized these sky high earnings as grotesque, agreed at a time when millions of people around the world are feeling in a pinch of the rising cost of living. Antonio gutierrez is urged governments to tax the profits of fossil fuel giants. To help those in need. Its use immortal for oil and Gas Companies to be making records profits from these Energy Crises on the beck of the buddhist people in the communities. And that the massive cost to the climates, the combined profits of the Largest Energy companies in the 1st quarter that of these year are close to 100000000000. 00 us dollars. I urge all governments to tax these excessive profits and use the funds to support the most Vulnerable People through these difficult times. Well that has a call comes as energy giant recorded i was offering figures for the 2nd quarter of the m. B, p reported a profitable missed 9000000000. 00. Thats the biggest win for 14 years. American energy, exxon mobil, pocket, it around 18000000000. 00. The net income is the companys largest ever quarterly profit. Europes Largest Oil Company show has broken the record for a 2nd quarter in a row with profit of more than 11000000000. 00. Those 3 Major Companies put together with the us from chevron and francis total energy is made 55000000000. 00 this past quarter. And its not just oil and gas blend coal, the Worlds Largest coal ship are also made record profits and plans to pay an additional 4500000000. 00 and dividends and buybacks to shareholders out while companies are reaping the benefits households are struggling to pay high energy bills, food prices of also such theyve risen around 50 percent since 2019. The u. N says more than 50000000 people across 45 countries are now on the brink of famine. While joining us now from london as adi, im sure of it. Hes a Senior Research fellow, the Oxford Institute for Energy Studies and also author of the book, trading and price discovery for crude oils. Thanks so much for joining us on counting that cost audio. So by asking you what you make as good terrorist a suggestion, because i know many economists would argue that taxing profits at a time the short supply could backfire in the long term, it would definitely back fi. I think taxing process is a terrible idea on a number of levels. The 1st reason why its a bad idea is that it essentially, it basically penalizes the companies that are actually supposed to be investing into energy exactly at the time when we need it most. Secondly, also it, it sort of picks and chooses when, as why are we, why are we taxing Energy Companies . A lot of other companies had when, when for profits as well, why not tax google and facebook . Why not taxed . Law law firms that a lot of companies that its time to time have windfall profits. Ready for whatever reasons and those profits are usually an incentive for them to actually invest into the. Ready resources that are badly needed. So if we tax them, were going going to get those resources in the long run. Well, we have a number of case studies here. The u. K. In india for instance, have impose these windfall taxes. What do you make of their success . You know, its too early to say, weve only just had them. In fact, from the energy point or industry point of view. I probably, that the one have a terribly big negative effect. It will have a negative effect, but not, not particularly big because it happens the time where, where we have univision, russian invasion on ukraine and a lot of Energy Companies basically managed to make quite a bit of money out of out of their resources that they have in the north fee or elsewhere in terms of oil and gas production. But we are really not passing the right message. The stager is, ill give you an example. Lets say century car is producing a lot of gas in the u. K. Having a wind full tax is just going to pot, send a message to everyone. Well, if you invest more into the u. K and u. K gas product gas production, which we need really, really badly. Well and you make money, were going to tax you. The same thing applies to e d, f, for example, e d f is making a lot of money out of their Nuclear Power plants because the, as we know how to change, the prices are quite high. Well, now producing clean electricity, green electricity, nuclear, christie, and why should they be taxed . I mean, basically the messages. Well dont invest into these Green Resources because were, youre, were going to tax you as soon as you make some money. Well, i notice that the u. S. S, are avoided attacks like this, but i believe the white house hasnt actually ruled it out. Now, given that biden has had such stern words, well, companies and refiners, what do you make of, of the state of pay there now . Well, the United States and obviously is a lot more market oriented. And i think also in mind of, of the consumers, if a lot easier to do these taxes in, in europe and the u. K. Where were used to having a 90 state in the United States. Its a lot less so. So, you know, i think its very important to go to the consumer and actually explain that gas prices are international prices. Oil prices are international prices, gas prices went up tenfold. So when something goes out, tenfold will surely is going to be at home as well. Just like the price of coffee. You know, theres not much you can, you can government can do about the prices. What that could you could government and all the governments can do and should be doing is helping those really ah, shit, badly who i need. And they should be given cash, not, not subsidies because what happens associate that, for example, when you subsidize gas prices, if they are right now in the u. K. And theres a lot of talk about price raises. Terrible, terrible idea. Come back to that in a 2nd. What happens . You actually subsidizing the rich more than anyone else. People in, in, in big mansions are people driving because and so on. So youre suggesting public cash transfers then to the most vulnerable absolutely. Give those in need, cash, giving subsidizing, or freezing even because there was some cause in some quarters with them at parties, suggested freezes, terrible idea. 970 lessons from 970. We havent learn. Nixon administration improves rise, freezes. And what happened there will shortages of, of energy. What happens is that if, if the Energy Companies have to pay this price and you give them that price, theyll say, well, were not going to invest anymore. Were not going to do this because we are losing money. You have a really good case in france, e d f. Now being being a nationalized. Why . Because the government basically enclosed very harsh price caps on, on, on energy. And companies in germany is the other one unit where basically went bankrupt. Then when the governments think they have a free lunch, then eventually in the long run, well they end up doing is actually, you know, nationalizing these companies and spending billions and billions of dollars already. You suggested the taxes, like the windfall tax. Weve been talking about discourage investment. So then is all of this then really just part of the pain that we need to go through in order to get to a green transition . Absolutely, well, you know, the, all of those who are calling for energy subsidies, for example, gas just have to remember, look, it outside. I mean, we, you know, we have Climate Change that happening now. Its not happening in the future, and you want to subsidize fossil fuels. Is that what we want to do now . We got no, we shouldnt be doing that. We, what we do need to do is help. And the reason growing fraction of the population that need help, that helps should be given in terms of cash to those in need. Everyone else should pay the full price or the fossil hills. And that would also be an incentive to move much quicker to on shore when, for example, or shall wind and other green sources of energy that we need really, really badly. And we need them now rather than pay, give money to put him very anxious gone id. Im sure that the Senior Research fellow at the Oxford Institute Energy Studies, thanks so much for sharing results from counting the cost. Youre welcome. Thank you. Now thailand, like many countries, is facing shop increases in the cost of food and fuel and central bank is following in the steps of many of the hiking rates to try to tame inflation. But in a society where the gap between rich and poor is one of the was in the wild type, say the governments efforts will bring little relief. Tony chang reports nestled between embassies and gleaming high rises in the center of thank cox, a community on the other side of the wealth again and the shadow of a new apartment complex. When he said lives with her 3 children, he says her income barely covers the family cost full repayments of loans. Shes been forced to take the money. I want to have a better life, but i cant. I just have to accept my fate because i was born in this condition and i have to take what is available. I just spend my life day to day trying to get enough to eat and thats not. So. During the pandemic, many people lost jobs and incomes dropped. And now the cost of living is rising sharply. Theyre not getting any help that a man, man from nailer hole, we barely get any help from the government. We dont get anything. They only get help from foundations and cherish, so we recharged them. Thailands often size, it is a Success Story when it comes to reducing poverty. But the wealth hair has not been evenly distributed. And in this Credit Suisse Global Wealth reported 2018 tyler was listed as one of the most unequal places in the world. In the years since then, life has been even harder for lower income communities. By the side of a busy expressway, some of the most vulnerable struggling to survive. This is a community for the deaf and hard of hearing, often cast out by their families. Form takes us under the bridge where she, a husband and several other families have made homes from refuse and scrap. She explains their disability allowance of 20. 00 a month. Barely lasts a few days. The strain is enormous. They trying to salvage what they can from the waist. Others throw away with the roar of the traffic overhead. Life goes on while their complaints go on, answered tony channing al jazeera. Thank god i. Well, while fossil fuels power, the globe, Semi Conductors drive the digital economy, the tiny computer chips so seen as the oil of the 21st century, they run everything from smartphones to Missile Defense systems. After a global shortage hit hard, many countries are racing to secure uninterrupted supply. Now, among them is the United States, which is just approved a multi 1000000000. 00 bill to boost domestic production. The bipartisan bill includes more than 52000000000. 00 and subsidies. The u. S. Companies producing computer chips, as well as billions more tax credits to encourage investment and research in the industry. The u. S. Fall is behind asia and ship manufacturing with a global share of at least 10 percent compared to almost 40 percent just a few decades ago. But it does lead in cutting edge chip design. Well, thats what President Joe Biden had to say when he signed that bill and law. Its crystal clear. We need the Semi Conductors, not only for those javelle missiles, but also for weapons. This is the future that are going to be even more reliant on advanced chips. Unfortunately, we produce 0 present. These advanced chips now in china is trying to move away ahead of us, the manufacturer, the sophisticated ships as well. Its no wonder the Chinese Communist party actively lobbied us business against this bill. The United States must lead the world the production of these advanced ships. This law will do exactly that on china has criticize that bill as a threat to trade and an attack on chinese businesses. The nation in ports more than 300000000000. 00 worth of semiconductors annually, but ends to produce 70 percent of its own ships by 2025 around 90 percent of the world. Most advanced chips, though are made in taiwan. The rest come from south korea. European legislators also pan multibillion dollar investments in the industry over the coming years. While joining us now from singapore, as alex cap rate, hes a Research Fellow at the Hendrick Foundation and also electra at the national university, a Singapore Business school. Alex, we seeing the emergence of a new semi conduct, a cold war here. What were seeing is a re shuffling a restructuring, a paradigm shift if you will, around global value, change Global Supply chains when it comes to strategic goods. And at the top of that list are semiconductors. How much then do you think this bill will actually help the u. S. In particular, try to regain its leading role and in Semi Conductor production, its important to, to step back and take a look at the state of the Semiconductor Industry as a whole. So u. S. Companies still dominate the technology, they still dominate the i p, the manufacturing equipment, the tooling. But what has happened over the last 30 years is us, chip makers have offshored manufacturing. So we have these pure play types scenarios where a company like p s m c, and taiwan. As a contract manufacturer is manufacturing on behalf of its its making the chips for Big Companies like qualcomm, for example. And so what the us wants to do now, given this strategic rivalry with china, given the sensitivity of Global Supply chains, because of the pandemic and so forth, is it wants to bring that manufacturing back to the United States. And thats what the chips act is all about. I see that the companies that would benefit from this bill there then actually not allowed to increase their production, particularly advanced chips in china. Just how attractive is that for the big cases . Well, this has been the game that the Semiconductor Companies have been playing in china a so called in china for china strategy. And that is, continue to sell mature older Generation Technology in china, in the chinese market, make a lot of money, use that money. A