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[00:00:02] MUSIC
[00:00:03] Live from Singapore. Now on BBC News,
[00:00:09] News, Business Today. Google announces
[00:00:17] announces a major shake up at the the top of its artificial intelligence
[00:00:21] intelligence division, as the company company seeks to keep up with big
[00:00:23] big tech rivals in the AI race. The
[00:00:25] The Dow reaches an all-time high high thanks to strong earnings and
[00:00:28] and hopes for a deal to reopen shipping shipping in the Strait of Hormuz.
[00:00:32] Hormuz. And shares of Disney Jump Jump as the entertainment giant sees
[00:00:35] sees a major profit bump ahead of
[00:00:37] of a plan to relaunch a new streaming
[00:00:40] streaming product. Hello and welcome
[00:00:45] welcome to Business Today with me, me, Steve Live. We begin with a major
[00:00:48] major shake up at Google's artificial artificial intelligence business,
[00:00:51] business, which seems to have got got investors nervous sending shares
[00:00:53] shares of alphabet down 4%. Jeff
[00:00:55] Jeff Dean had long time Google employee employee central to the development
[00:00:58] development of the company's AI strategy strategy is departing to launch a
[00:01:02] a start up, taking several high profile profile colleagues with him. Demis
[00:01:05] Demis Hassabis, the head of Google Google DeepMind, will now assume
[00:01:08] assume the dual titles of chairman chairman of the lab and chief scientist
[00:01:12] scientist at alphabet. Our North North America business correspondent correspondent Samira Hussain has
[00:01:14] has more insight into what this means means for the company. Google is
[00:01:19] is under immense pressure as it competes
[00:01:21] competes with the likes of Anthropic
[00:01:23] Anthropic and OpenAI. It is why this
[00:01:25] this big shake up of their AI leadership
[00:01:28] leadership has investors just so so nervous. There are worries that
[00:01:31] that alphabet has actually fallen
[00:01:33] fallen behind in the AI race, even
[00:01:36] even though it created some of the
[00:01:38] the key technologies that are underpinning
[00:01:41] underpinning current AI models. Now Now also remember like other tech
[00:01:44] tech firms, Google continues to spend spend big on AI data centres and
[00:01:48] and such to the tune of somewhere
[00:01:52] somewhere between 100 and 90 5 to to $205 billion. That's an awful
[00:01:55] awful lot of money to spend on a a division of a company that is going
[00:01:59] going through such a massive shake shake up. The Dow climbed to new
[00:02:02] new all-time high on Wednesday thanks thanks to another day of strong earnings
[00:02:05] earnings and signs of progress towards towards peace in the Middle East.
[00:02:09] East. Nvidia was among the stocks stocks that rallied, jumping more
[00:02:11] more than 3% after Elon Musk announced announced an exclusive partnership
[00:02:14] partnership to use Nvidia chips for for its AI infrastructure. SpaceX,
[00:02:18] SpaceX, however, dropped 13% over over investor fears about its surge
[00:02:22] surge in spending. Meanwhile, an an agreement between Iran and Oman
[00:02:25] Oman is in its final stages to reopen reopen the route for shipping through
[00:02:29] through the Strait of Hormuz, sending sending oil prices lower. Brent crude,
[00:02:32] crude, the international benchmark, benchmark, is currently just under
[00:02:35] under $80 a barrel. The US benchmark
[00:02:37] benchmark is also down to around around $75 a barrel. Well, for more,
[00:02:40] more, let's speak with Vivek Dhar, Dhar, the head of commodities and
[00:02:44] and sustainability research at Commonwealth Commonwealth Bank of Australia. Vivek, Vivek, good to get your thoughts
[00:02:48] thoughts today while we wait to see see if a meaningful deal emerges. emerges. What's the current state
[00:02:51] state of play when it comes to oil oil shipments through the Strait?
[00:02:55] Strait? Sure. So look, in terms of
[00:02:58] of what we've seen just in the last
[00:03:00] last week, we've seen oil flows hit
[00:03:03] hit about 30 to 45% of pre-war levels.
[00:03:06] levels. And that's without a US-Iran US-Iran deal written. And so it really
[00:03:09] really tells you that we are still still getting flows through the Strait
[00:03:13] Strait of Hormuz, even despite the the rising tensions and the situation
[00:03:16] situation we're currently in. The The reason why that's so relevant
[00:03:19] relevant in terms of oil prices and
[00:03:20] and why we are now in the 70s, is
[00:03:24] is we only need about 50 to 60% of
[00:03:27] of pre-war flows through the Strait
[00:03:29] Strait of Hormuz to actually get get back to the oversupply fears
[00:03:32] fears the market had at the start start of this year. And that is simply
[00:03:35] simply a calculation based on The
[00:03:37] The Pipeline bypasses the structurally
[00:03:39] structurally lower Chinese imports imports as well as the supply growth
[00:03:43] growth outside the Middle East. We've We've seen so far this year. So that that is why the market is so prone
[00:03:47] prone to price in oversupply risks risks right now is we do not need
[00:03:51] need to return to pre-war levels levels through the strait, given given all the bypasses that we're
[00:03:55] we're seeing. That will be welcome welcome news for customers, particularly
[00:03:58] particularly here in Asia. Absolutely.
[00:04:01] Absolutely. In terms of what we're
[00:04:04] we're seeing, the fallen in Brent Brent prices and how that's translating
[00:04:07] translating across to inflation expectations expectations coming down, I think
[00:04:10] think that's providing a lot of relief. relief. But when we talk about what
[00:04:13] what hits the real economy, we have have to talk about refined products.
[00:04:16] products. And when we look at say say diesel or Singapore gas oil for
[00:04:19] for the Asian region, that is actually actually still quite elevated and
[00:04:23] and it has reduced. But when we talk talk about the last time Brent dropped
[00:04:26] dropped below 80 and we compare it
[00:04:28] it to right now where about 20 to
[00:04:30] to 30% higher on diesel prices alone. alone. And so it tells you that we
[00:04:34] we are seeing a structural premium premium increase for diesel. And
[00:04:36] And that's really a function of one
[00:04:39] one the Strait of Hormuz being closed closed and refineries not being able
[00:04:42] able to restart yet. But second, second, the attacks by Ukraine on
[00:04:46] on Russian refineries. So that diesel diesel aspect, which is for us key
[00:04:49] key in terms of that inflation picture picture that is still quite elevated.
[00:04:53] elevated. But at least the good news news is that has come down in the
[00:04:56] the last couple of weeks. Yeah. I I remember at the start of this conflict
[00:04:58] conflict there was talk that oil
[00:05:00] oil could hit $150 a barrel. That That seems very unwell. We're very
[00:05:03] very far away from that as we are are at the moment. Do you think that
[00:05:06] that fear was unfounded and despite despite the ongoing conflict and and lack of a deal, we're unlikely
[00:05:10] unlikely to get anywhere close to
[00:05:12] to that. Look, I think getting to
[00:05:15] to 150 would need the market to have have inventory depletion reached.
[00:05:18] reached. I think that was the major major unknown for the market was
[00:05:21] was can inventories run out at the the Strait of Hormuz remains closed.
[00:05:24] closed. What we found is we have have been seeing dark transits. So
[00:05:28] So transponders off on ships and and oil flows happening. And that
[00:05:31] that is really mitigated the risk risk of inventory depletion. But
[00:05:34] But as we currently sit we estimate estimate we have probably 9 to 10
[00:05:37] 10 weeks before we get to inventory inventory depletion. But that's 9
[00:05:40] 9 to 10 weeks of zero flows through through the strait. And right now
[00:05:44] now that doesn't look likely. So So we would need to see violence
[00:05:47] violence increase quite substantially substantially to justify 9 to 10
[00:05:50] 10 week countdown starting. But you're you're right in terms of getting
[00:05:54] getting to that 150, it's looking looking like a tail risk as opposed
[00:05:57] opposed to something to really worry worry about. But it's a lot to do
[00:06:00] do with the flows that we're seeing seeing through the Strait of Hormuz. Hormuz. Yeah, really good to get get that perspective. Vivek, thanks
[00:06:04] thanks very much. Vivek Dhar Head Head of commodities and sustainability sustainability research at the Commonwealth
[00:06:08] Commonwealth Bank of Australia. Now, Now, shares of Disney have jumped
[00:06:12] jumped nearly 4% up after beating beating profit expectations. Income
[00:06:16] Income for its experiences division, division, which includes theme parks parks and cruises, jumped 20% from
[00:06:20] from a year ago, easing investors investors concerns about travel disruption
[00:06:22] disruption from the war in Iran. Iran. But advertising was a major
[00:06:26] major topic of discussion during during Wednesday's earnings call
[00:06:28] call with investors, CEO Josh D'amaro
[00:06:31] D'amaro said the company is now exploring
[00:06:33] exploring a free ad supported streaming streaming product for consumers.
[00:06:36] consumers. He also said Disney sold sold out ad spots for the Super Bowl
[00:06:39] Bowl in February, which will air air on the company's ABC and ESPN
[00:06:42] ESPN networks. Well, for more, let's let's speak with Mike Prue, a Vice Vice President and research director
[00:06:46] director at the tech firm Forrester. Forrester. Mike, good to get your your thoughts. Good numbers overall,
[00:06:50] overall, I suppose you could say say for Disney. What stood out to
[00:06:53] to you most? Yeah. What stood out out is we now have two quarters under
[00:06:57] under the new CEO's belt and he is
[00:07:00] is showing strong profitability because because he's aggressively managing
[00:07:03] managing costs but also seeing new
[00:07:06] new revenue streams. And if we look
[00:07:08] look at Disney Plus, which is of
[00:07:10] of course one of the company's big
[00:07:12] big North stars, it is not only seeing seeing increased subscriptions and
[00:07:16] and ad revenue, but growth overall
[00:07:19] overall and so much so that the company
[00:07:21] company sees Disney Plus as the hub
[00:07:26] hub of the member member ecosystem ecosystem for Disney overall, really
[00:07:30] really becoming a digital centrepiece centrepiece much more than just a
[00:07:32] a streaming service. And what should should we understand about Disney
[00:07:35] Disney agreeing this deal with TikTok TikTok to use its film and TV shows
[00:07:39] shows and videos? That's a quite quite a big change in its IP strategy,
[00:07:43] strategy, which it has always been been very protective over. That's
[00:07:46] That's exactly right. It is a huge
[00:07:47] huge departure. And so we're seeing
[00:07:50] seeing a modernisation in Disney's Disney's thinking and tapping into
[00:07:54] into the world of feeds, which is is where so much of entertainment
[00:07:57] entertainment is being consumed now now is not only being consumed, but but it's being generated by creators.
[00:08:01] creators. So this partnership will will allow Disney to work with creators
[00:08:05] creators on TikTok to not only leverage
[00:08:08] leverage Disney IP in TikTok content,
[00:08:11] content, but it will take the best
[00:08:13] best of creator made content and
[00:08:16] and feature it on Disney's new verse
[00:08:19] verse feature on Disney Plus mobile
[00:08:21] mobile app. And so this is really
[00:08:25] really driving more value into the
[00:08:27] the mobile version of Disney Plus
[00:08:29] Plus and bringing new viewing occasions
[00:08:32] occasions and engagement to the streaming streaming app. Yeah. So do you think
[00:08:35] think we'll see more of these kinds kinds of deals? I mean, the CEO, CEO, he's not been there for too
[00:08:39] too long, but he seems like he's he's quite progressive and quite quite aggressive, as you said, into
[00:08:42] into moving into new areas. He's He's doing what he has to do based
[00:08:46] based on modern consumer behaviour. behaviour. And right now, Forrester
[00:08:49] Forrester data shows that the streaming streaming industry really across
[00:08:53] across all of our other industries, industries, has a customer relationship
[00:08:56] relationship problem. And so Disney Disney seems to be understanding
[00:08:59] understanding the assignment to really really double down on trying to create
[00:09:03] create more always on engagement
[00:09:06] engagement moments with their subscribers. subscribers. And this idea of launching
[00:09:08] launching a free ad supported streaming
[00:09:12] streaming service also would allow
[00:09:15] allow much more upper funnel reach
[00:09:17] reach to price sensitive consumers. Yeah, and just quickly, quickly, I suppose this puts Disney
[00:09:21] Disney on the front foot when it it comes to the very competitive
[00:09:23] competitive streaming industry. It's It's pretty remarkable that they're
[00:09:26] they're doing so well amid all of of the competition and greater scale
[00:09:30] scale and consolidation that's happening happening in the marketplace. Yeah. Yeah. Mike, really good to get your
[00:09:34] your thoughts. Thanks very much as as always. Mike Prugh, a Vice President President and research director at
[00:09:37] at the tech firm Forrester. Let's Let's take a quick look at some other
[00:09:40] other stories making the news. The
[00:09:42] The Trump administration has paid
[00:09:45] paid back $100 in tariff refunds refunds to businesses. The refunds
[00:09:49] refunds represent roughly 60% of of all tariff revenue collected by
[00:09:52] by the government under the policy. policy. But a good amount still remains
[00:09:55] remains unpaid. The repayments follow follow a major Supreme Court decision
[00:09:58] decision where judges ruled this
[00:10:00] this round of tariffs were unlawful.
[00:10:03] unlawful. Meta is rolling out its its first coding agent to help developers
[00:10:06] developers write software as it tries tries to challenge firms like Anthropic
[00:10:10] Anthropic and OpenAI. Titled Muse Muse Code, the tool makes it easier
[00:10:14] easier to build apps while utilising utilising AI powered agents to support
[00:10:17] support the software development development process. The new coding
[00:10:20] coding agent is viewed as a way for for Meta to generate revenue from
[00:10:24] from AI. The American gaming giant
[00:10:26] giant Electronic Arts has been sold
[00:10:29] sold for $55 billion in what is believed believed to be the largest leveraged
[00:10:33] leveraged buyout in history. The The company has been bought by a
[00:10:36] a consortium including Saudi Arabia's Arabia's Public Investment Fund and
[00:10:39] and Affinity Partners, led by President President Trump's son-in-law, Jared
[00:10:43] Jared Kushner. EA, which is known known for blockbuster games like
[00:10:46] like The Sims and Fifa, will now
[00:10:48] now be taken private, removing it it from the Stock Exchange. That's
[00:10:52] That's it for this edition of Business Business Today. Thanks for joining joining me. I'll see you again at
[00:10:56] at the top of the hour. In the meantime, meantime, sport is coming your way
[00:10:59] way next.
[00:14:28] MUSIC
[00:14:33] AI is dramatically increasing demand
[00:14:38] demand for energy in a way that the the current systems can't fully cope
[00:14:40] cope up. I want to listen to people
[00:14:44] people without it being transactional, transactional, without asking people people for their vote, but listening
[00:14:48] listening to them. Everything you
[00:14:50] you go through, you can surmount, surmount, you can endure and find
[00:14:54] find a good place for it. When the
[00:14:57] the big names talk, they talk to
[00:15:00] to us. Now on BBC News, a round up
[00:15:06] up of. The day's sporting action action plus talking points analysis
[00:15:09] analysis and original journalism.
[00:15:12] journalism. BBC Sport. Hello, I'm
[00:15:21] I'm Mark Benstead and here are your
[00:15:23] your latest sports headlines. Infantino's
[00:15:27] Infantino's carries on the Fifa president
[00:15:29] president remains in position. Salah
[00:15:32] Salah on the move. Mo gets set to
[00:15:35] to sign for Trabzonspor. And Joseph
[00:15:38] Joseph Parker can return to the ring. ring. The former heavyweight champion
[00:15:42] champion has seen his ban lifted.
[00:15:58] MUSIC Come Come along Gianni Infantino