A mountain kingdom sounds the alarm on jobs

Summary

Marketplace Morning Report: "A Mountain Kingdom Sounds the Alarm on Jobs"

Release Date: July 10, 2025
Host: Liana Byrne
Source: Marketplace, BBC World Service

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1. Lesotho Declares National State of Disaster

The episode opens with a focus on Lesotho, a small mountainous nation in southern Africa, which has declared a national state of disaster set to last two years. The Lesotho government attributes this crisis to soaring youth unemployment and significant job losses, exacerbated by impending U.S. tariffs and aid cuts announced by President Trump.

Key Points:

• Youth Unemployment Crisis: The country's youth unemployment rate has surpassed the national average, creating a vulnerable segment of the population.
• Government Measures: Emergency powers have been invoked to swiftly redirect funding, including measures like eliminating registration fees for small businesses to stimulate economic activity.

Notable Quote:

“We have had a lot of many years of neglect in terms of generating jobs, especially for the youth... this is the reason behind our national state of emergency.”
– Trade Minister Moketi Shalile [01:41]

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2. Escalating Maritime Attacks in the Red Sea

The report highlights a concerning escalation in maritime security threats within the Red Sea. A cargo ship, the Eternity Sea, was attacked twice within a week by Yemen's Houthi militia. This incident marks the second vessel targeted in a short span, underlining the instability in this crucial global trade route.

Key Points:

• Impact on Global Trade: The Red Sea is a vital artery for international commerce, linking Asia and Europe via the Suez Canal. Disruptions here have significant global economic repercussions.
• Houthi Militia Activities: The attacks are believed to be in solidarity with Hamas and the Palestinians, despite an earlier agreement with the U.S. to cease targeting American interests. The assumption is that these ships may have connections to Israeli interests.

Notable Quote:

“The Houthis... are absolutely crucial for the transport of oil... they are thinking that these two ships have some connection with Israel.”
– Sebastian Ussher, BBC World Service [03:19]

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3. Market Movements and Economic Indicators

The episode delves into significant market activities and economic indicators affecting both the U.S. and Europe.

Key Points:

• Kellogg's Stock Surge: Shares in Kellogg's have surged by over 50% following reports that Ferrero, the Italian confectionery giant, is considering a $3 billion acquisition of the cereal company.
• Dutch Pension Funds Shift: Dutch pension funds are planning to divest approximately $147 billion from long-term government bonds, a move that could destabilize European debt markets.

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4. Vulnerabilities in Modern Payment Systems

A comprehensive segment examines the fragility of modern payment infrastructures, especially highlighted by recent cyberattacks and power outages. The discussion underscores the persistent reliance on cash as a fallback option, even as societies trend towards cashless transactions.

Key Points:

• Spain and Portugal Power Crisis: In April, a massive power outage crippled Spain and Portugal, impacting millions and exposing the limitations of digital payment systems during emergencies.
• Cash vs. Digital Payments: While Spain maintains a higher circulation of cash (60% of in-store transactions) compared to the U.S. (16%), Scandinavian countries like Norway and Sweden are pushing towards nearly cashless societies but are now reconsidering to bolster resilience.
• Legislative Responses: New laws in Norway and Sweden mandate the acceptance of cash for essential transactions to ensure continuity during crises.

Notable Quotes:

“There were groups of people that were having meals with a nice bottle of wine and ordering a lot of stuff. And I thought... they're not going to be able to use the normal machines to make payments.”
– Juliana, Journalist in Malaga [04:23]

“Until Covid, we had cash, it was a hassle because the banks didn't want to take our cash... After Covid, it felt so nice not to have cash.”
– Carl Johanneson, Bergen Coffee Roastery [05:26]

“The reason why we have pushed for this is that it's very much a resilience issue... have a resilience system, so if one of them breaks, you can use the other one.”
– Trade Minister Moketi Shalile [06:23]

Expert Insight: Natasha de Terran, co-author of Payoff: How Changing the Way We Pay Changes Everything, expresses skepticism about whether new cash regulations can sufficiently safeguard societies heavily reliant on digital payments.

“Are there machines that will take cash? Are there enough staff to count the cash?... I don't think when the society has gone completely electronic, you can come back to cash and say, well, you know that we will be fine with cash.”
– Natasha de Terran [06:56]

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5. Highlight: Heathrow's Soothing Soundtrack Initiative

In a lighter note, Heathrow Airport in London has collaborated with Grammy-nominated artist Jordan Rakai to produce a unique soundtrack composed of airport sounds. This innovative project aims to create a more calming and pleasant environment for travelers.

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Conclusion

The episode effectively weaves together urgent economic challenges facing Lesotho, escalating geopolitical tensions in crucial trade routes, dynamic market shifts, and the pressing need to reassess the resilience of modern payment systems. Through expert interviews and on-the-ground reporting, Marketplace Morning Report offers listeners a comprehensive overview of the factors shaping the global economic landscape.

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This summary captures the essence of the "A Mountain Kingdom Sounds the Alarm on Jobs" episode from Marketplace's Morning Report, providing insights and key points for listeners and non-listeners alike.

Transcript

[Marketplace Host]

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[Liana Byrne]

Sounds the alarm on jobs hello, this is the Marketplace Morning Report, and we're live from the BBC World Service. I'm Liana Byrne. So we're starting in southern Africa this morning, where Lesotho has declared a national state of disaster that will last for two years. The government says soaring youth unemployment, job losses have pushed the small, mountainous country into crisis and it's bracing for things to get worse. With US Tariffs and aid cuts announced by President Trump expected to hit the economy hard, officials say emergency powers will help redirect funding quickly. It's making moves like scrapping registration fees for small businesses. Earlier, Lesotho's Trade Minister, Mokatti Shalile, spoke to the BBC.

[Moketi Shilile]

We have had a lot of many years of neglect in terms of generating jobs, especially for the youth. We we at the moment we have a youth unemployment that is higher than the national average. So they are a particular segment of society that needs to be to be supported. And this is the reason behind our national state of emergency.

[Liana Byrne]

That was Trade Minister Moketi Shilile. Meanwhile, a cargo ship attacked by Yemen's Houthi militia has sunk in the Red Sea. It's the second vessel they've taken down in just a week. Ten of the 25 crew on board have been rescued. At least three are confirmed dead, and several others who are still missing may have been taken hostage. The Red Sea is a vital global trade route. Route. It's the fastest sea route linking Asia and Europe via the suez Canal. The BBC's Sebastian Ussher has more.

[Palo Alto Networks Representative]

This ship, the Eternity Sea, was first attacked on Monday by militants in small boats in the Red Sea. It was attacked again on Tuesday and it sank this morning. There haven't been attacks like this since the End of last year, the Houthis had carried out more than 100 attacks in this area, the Red Sea, which is absolutely crucial for, for the transport of oil. And they'd done it in solidarity with Hamas and with the Palestinians. They reached an agreement with the US earlier this year that they would not carry out attacks on U.S. targets anymore. But they didn't say the same about Israeli targets. And I think the assumption is that they are thinking that these two ships have some connection with Israel.

[Liana Byrne]

Sebastian Usher there. Now let's do the numbers. Shares in the U.S. maker of Kellogg's, have soared by more than 50% on reports that Ferrero, the Italian chocolate giant, is eyeing a $3 billion buyout. And Dutch pension funds are set to dump $147 billion in long term government bonds as they change their system. Could rattle Europe's debt markets. Okay, so recent cyber attacks and power cuts have exposed just how vulnerable modern payment systems can be. Cash is one of the few reliable fallbacks. But it's getting hard now. A growing number of countries are stepping in with new laws to make sure it doesn't disappear altogether. The BBC's James Graham has more.

[Juliana]

In April, a massive power cut brought Spain and Portugal to a standstill, affecting millions of people.

[Moketi Shilile]

Right now, there is no power, no electricity, no water.

[Juliana]

This is Juliana from Malaga, a southern province.

[Moketi Shilile]

And of course, you can only pay things with cash.

[Juliana]

Journalist Ashish Sharma was in Madrid, where he noticed some restaurants still serving.

[Moketi Shilile]

There were groups of people that were having meals with a nice bottle of wine and, you know, ordering a lot of stuff. And I thought, well, I hope these people have got cash on them. They're not going to be able to use the normal machines to make payments.

[Juliana]

In fact, the payment system was working during the crisis, according to the bank of Spain, supported by servers with their own power supply. But many shops could not take card payments because their devices were out of power. Cash was an option as long as it was already in your wallet, because ATMs were affected. In Spain, there's more cash in circulation than in many other European countries. It's used in around 60% of in store transactions, compared to about 16% in the United States. In terms of cashless societies, Scandinavian countries lead the way. But there are now worries about how the system would function in an emergency. In Norway, nearly all transactions are now digital. But a new law means retailers can be fined if they refuse to accept cash. Carl Johanneson owns the Bergen Coffee Roastery in Norway's second city.

[Moketi Shilile]

Until Covid, we had cash, it was A hassle because the banks didn't want to take our cash. So we needed a company to come and pick up our cash and then deposit for us. Or you had like a safe, you can deposit it, but it a lot of work and it also created a lot of mistakes. After Covid, it felt so nice not to have cash.

[Juliana]

But the new law means cash has returned, although there's less of it, making up 3 to 5% of trade at the coffee shop. So it's easier to manage.

[Moketi Shilile]

It's not a big deal to implement, but it's more like now the baristas, when they close, they have to count the money, put it in a safe and now we deposit it once a month in the bank.

[Juliana]

In neighbouring Sweden, the Central bank has warned citizens to keep cash ready to use in case of emergencies. In fact, Sweden has been running an inquiry into the use of cash, proposing an obligation on shops to accept it for essential items. Central Bank Governor Eric Tudin thinks cash is crucial to national security.

[Moketi Shilile]

The reason why we have pushed for this is that it's very much a resilience issue. Then of course we have been in close contact with Ukraine and I think also the Spanish kind of experience now to have something together with, you know, credit cards. So basically have a resilience system, so if one of them breaks, you can use the other one.

[Juliana]

Natasha de Terran is co author of the Payoff How Changing the Way We Pay Changes Everything. She's not convinced new rules around cash will provide enough of a safety net in societies where digital systems are so entrenched.

[Moketi Shilile]

Are there machines that will take cash? Are there enough staff to count the cash? Are there places to keep the cash safe? Can the shop bank it? So I don't think when the society has gone completely electronic, you can come back to cash and say, well, you know, we'll be fine with cash, because I don't know that we will.

[Juliana]

So what about resilience for those countries that are almost cashless?

[Moketi Shilile]

I think we need a very good.

[Juliana]

Grid and it's not just about cash. Adds Natasha, when so much of our daily lives, from public transport to communication, relies on electricity. In the UK, I'm the BBC's James Graham for Marketplace.

[Liana Byrne]

And finally, have a listen to this. So London Heathrow has teamed up with Grammy nominated artist Jordan Rakai to create a soundtrack using airport sounds for the airport. I have to say it is very soothing. And that's it from the marketplace. Morning report from the BBC World Service, I'm Liana Byrne. Have a great day and thanks so much for listening.

[Marketplace Host]

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