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20260917 043000 UTC
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[00:00:02] Now on BBC News. The latest
[00:00:04] business news from across the globe.
[00:00:07] globe. Business Today. Rising borrowing
[00:00:17] borrowing costs the US raises interest interest rates for the first time
[00:00:20] time in three years. President Trump
[00:00:21] Trump calls for a change in direction.
[00:00:25] direction. We should be paying the the lowest interest rate anywhere
[00:00:28] anywhere in the world because we we have the strongest credit. And
[00:00:31] And the focus now turns to the Bank Bank of England for its decision
[00:00:35] decision on interest rates as energy
[00:00:37] energy prices soar. A unique alliance alliance President Trump threatens
[00:00:41] threatens to cut trade with the EU
[00:00:43] EU if it pursues, making Canada its
[00:00:46] its first ever associate member.
[00:00:49] member. And smart specs we try out
[00:00:51] out Snap Inc's latest eyewear, promising
[00:00:53] promising to augment your reality
[00:00:55] reality and talk AI with its big
[00:00:59] big boss. Welcome you with Business Business Today in London with me
[00:01:02] me Sally Bundock. So we start in in the US where the central bank
[00:01:05] bank raised interest rates for the the first time in three years as
[00:01:08] as inflation worries Trump pressure
[00:01:11] pressure from the President in a a unanimous decision, the Federal
[00:01:14] Federal Reserve raised the cost of
[00:01:16] of borrowing by a quarter of 1% to
[00:01:21] to between 3.75 and 4%. So that is is the current range. And the decision
[00:01:25] decision comes as rate setters attempt
[00:01:26] attempt to curb price rises driven
[00:01:29] driven by soaring energy costs from
[00:01:31] from the Middle East conflict. Commenting Commenting on the move, fed Chair
[00:01:35] Chair Kevin Warsh said that inflation inflation had been too high for too
[00:01:38] too long, but it's fair to say President
[00:01:41] President Trump doesn't agree with with the economic medicine. Talking
[00:01:44] Talking to social media, he posted posted that interest rates in the
[00:01:47] the United States should be 1% or
[00:01:50] or less because we are the best credit
[00:01:53] credit in the world by far. Well,
[00:01:56] Well, Samira Hussain in New York York has more details. Why raising
[00:01:59] raising interest rates a quarter quarter of a percentage point in
[00:02:02] in saying that inflation is the big big reason why the Federal Reserve
[00:02:06] Reserve did what it was expected expected to do. Now, The Fed also
[00:02:09] also said that, look, the US economy
[00:02:11] economy is growing at a pretty healthy
[00:02:14] healthy rate, despite geo developments developments presumably referring
[00:02:18] referring to the war with Iran, which
[00:02:21] which has really driven up inflation. inflation. In a press conference,
[00:02:25] conference, Fed Chair Kevin Warsh Warsh admitted look, this rate hike
[00:02:28] hike won't reopen the Strait of Hormuz. Hormuz. A quarter point rate hike
[00:02:32] hike does not reopen the Strait of of Hormuz. And so I wonder how you
[00:02:35] you think the smaller rate hikes
[00:02:37] hikes will be effective when it can't can't necessarily address the energy
[00:02:40] energy supply side of inflationary
[00:02:42] inflationary pressures? We cannot cannot affect any individual price,
[00:02:46] price, whether it be oil prices, prices, whether it be foodstuffs
[00:02:49] foodstuffs at the grocery store. store. But what we can do and will
[00:02:52] will do is ensure that any change
[00:02:54] change in relative prices don't broaden broaden out. So how will all of this
[00:02:58] this make a difference? Well, the the Federal Reserve really made it
[00:03:01] it clear that this is all about the
[00:03:04] the American consumer and specifically specifically those that are less
[00:03:07] less well off, that they really want want to try and get the cost of living
[00:03:11] living under control. And this is
[00:03:13] is one way that they can do that.
[00:03:16] that. Samira Hussain there. Well, Well, let's get the view of Joseph Joseph Brucellose, who's principal
[00:03:20] principal and chief economist at at US firm RSM Joseph, lovely to
[00:03:24] to see you. When it comes to The The Fed, this is not one and done,
[00:03:27] done, is it? No it's not. It'll be
[00:03:29] be the first of at least three rate
[00:03:31] rate hikes. I think we're going to to get another one either in October
[00:03:35] October or December. And then I think think another one in March. Look
[00:03:39] Look it's going to take a much more
[00:03:41] more heavier lift than I think many many policymakers, especially those
[00:03:44] those at the White House recognise recognise to put the United States
[00:03:48] States economy back on a credible
[00:03:50] credible path to 2% inflation. You You know, the things President Trump
[00:03:54] Trump was talking about 1% interest
[00:03:56] interest rates and cutting off trade, trade, that's just noise. That's
[00:04:00] That's not the signal. The signal signal was put forward by Kevin Warsh
[00:04:02] Warsh today. And US interest rates
[00:04:05] rates are rising. But increasing increasing interest rates in the
[00:04:08] the United States will not bring bring down prices at the pump. Will
[00:04:12] Will it? No. As a matter of fact,
[00:04:15] fact, prices at the pump, both for for petrol and diesel, are expected
[00:04:18] expected to rise not because of what's what's going on in the United States
[00:04:21] States or policy at the Federal Reserve, Reserve, but because what's going going on in Saudi Arabia, the disruption
[00:04:25] disruption of the east west pipeline, pipeline, the disruption of shipments
[00:04:28] shipments via the Red Sea. All of of those things are going to combine
[00:04:31] combine to send interest rates higher. higher. And that's why The Fed had
[00:04:34] had to get out in front of the inflation inflation that's working its way way through the pipeline, no pun
[00:04:38] pun intended. I mean, if President President Trump really wants to bring bring down inflation in the US.,
[00:04:42] US., surely he needs to try and end end this war with Iran. That would
[00:04:45] would be one step. Another step would would be to pull back on the tariffs.
[00:04:49] tariffs. Another thing is we would would really want to emphasise here
[00:04:51] here is that those trade deficits deficits when the US buys something,
[00:04:54] something, they send dollars abroad, abroad, then they get recycled back
[00:04:58] back into guess what treasuries. treasuries. And that sends yields
[00:05:01] yields down not up. In terms of how
[00:05:05] how this impacts Americans. They've They've got a decision making process
[00:05:08] process coming along with the mid-terms. mid-terms. How is it going to affect
[00:05:12] affect average households and their their money and how they're feeling
[00:05:15] feeling in terms of this sort of of cost of living scenario. Putting
[00:05:19] Putting the economy back to on a a path to 2% inflation over the medium
[00:05:22] medium long-term is in the benefit benefit of all Americans, but especially
[00:05:25] especially those who are least well well off. However, I have to tell
[00:05:28] tell you, in the near term, those those less well-off Americans who
[00:05:32] who often rely on adjustable rate rate mortgages to purchase a home
[00:05:35] home or variable variable rate credit credit cards, all of that's going
[00:05:39] going to get more expensive. So those those same Americans are going to
[00:05:42] to bear a disproportionate burden burden of those adjustment costs
[00:05:46] costs with any interest rate hikes hikes and not just the one that was
[00:05:49] was put out yesterday, but the two two that I expect over the next several
[00:05:52] several months. OK, Joseph, as ever, ever, great to pick your brains.
[00:05:55] brains. Thanks for your time again again on the programme. Joseph Ellis
[00:05:58] Ellis there from RSM. Well, let's let's look at the UK where it's the
[00:06:02] the turn of the Bank of England to to make its decision on interest
[00:06:05] interest rates today, the central central bank is widely expected to
[00:06:08] to hold the cost of borrowing in
[00:06:10] in this week's meeting, despite facing
[00:06:13] facing an increasing rate of price price rises. The latest figures,
[00:06:16] figures, out on Wednesday showing
[00:06:18] showing inflation hitting 3.1% in in August. And that's the highest
[00:06:22] highest level for five months, driven
[00:06:24] driven largely by increases in fuel fuel costs. Let's talk to Kathleen
[00:06:28] Kathleen Brooks, research director director at the trading platform
[00:06:30] platform XTB. Morning, Kathleen. Kathleen. Good morning Sally. I presume
[00:06:33] presume I presume you're with the the majority in thinking rates are
[00:06:36] are on hold today. I think so, yeah. yeah. I think there's individual
[00:06:40] individual reasons why the Bank of of England doesn't need to follow follow the ECB and The Fed for now.
[00:06:44] now. The first thing of course is is that our interest rates have been been higher certainly than the ECB
[00:06:48] ECB anyway. And the dilemma here
[00:06:51] here is different isn't it. I mean mean when you look at the US and and you hear they're raising rates
[00:06:55] rates you're kind of thinking oh, oh, well maybe we need to do the the same thing. But the American
[00:06:58] American economy is much more robust robust than the UK economy. And our
[00:07:02] our growth is absolutely minimal minimal at the moment, isn't it?
[00:07:04] it? And our labour market is not not looking that healthy either.
[00:07:07] either. Yeah. I would agree that that the labour market is a really,
[00:07:10] really, really weak point. We've We've seen private sector wage growth
[00:07:13] growth is now below the level of
[00:07:15] of inflation. And we've also seen seen payroll employment that's actually
[00:07:18] actually been falling. So yeah, you're you're completely right. The US economy
[00:07:22] economy is on track to increase by
[00:07:24] by 5.1% this quarter. And our growth growth rates are just a mere fraction
[00:07:27] fraction of that. And I think that that the Bank of England they'll
[00:07:31] they'll want to see more evidence evidence that this inflation spike
[00:07:34] spike caused by the energy spike spike caused by geopolitics is having
[00:07:37] having a bigger and a broader impact impact on the economy before they
[00:07:40] they hike. But I do think that there's there's a potential for a hike in
[00:07:43] in November. Are you how worried worried are you, Kathleen, about
[00:07:47] about inflation going forward? Because Because of course, you know, Andrew
[00:07:49] Andrew Bailey was talking about it it himself in front of a you know,
[00:07:53] know, in front of a Commons select select committee recently. And he
[00:07:55] he was saying, you know, he is quite quite concerned and they're obviously
[00:07:59] obviously watching everything incredibly incredibly closely in the months months ahead. It's not just energy.
[00:08:02] energy. It's going to be food prices
[00:08:04] prices rising soon as well. Yeah.
[00:08:07] Yeah. Those headline prices are for
[00:08:09] for the longer the longer that energy
[00:08:11] energy prices remain high. It is
[00:08:14] is more worrying for sure. And it it gets harder for the Bank of England
[00:08:17] England to maintain that they can can keep a lid on price pressures
[00:08:21] pressures by keeping interest rates rates on hold, which is essentially
[00:08:24] essentially what they've done for for this year. Inflation is already
[00:08:28] already sorry. Energy prices are are already above the Bank of England's
[00:08:31] England's adverse scenario, which which they only set out in July.
[00:08:34] July. So something does have to change.
[00:08:36] change. You know, food prices, energy energy prices they're the real key.
[00:08:39] key. But we don't have any evidence
[00:08:43] evidence that they are feeding into. into. They're having second round round effects. Essentially our economy
[00:08:47] economy is quite weak. So even if if there is an interest rate hike
[00:08:50] hike in November, I don't think we're we're going to be on a longer rate
[00:08:53] rate hiking cycle. It could be quite quite a shallow hiking cycle. And
[00:08:56] And I think that will be different different from the US. OK Kathleen,
[00:09:00] Kathleen, as ever, it's great to to get your take on things as well. well. We'll see you soon. Thanks
[00:09:03] Thanks for talking to us this morning morning early. Kathleen Brooks there
[00:09:06] there from XTB just to say, of course course we'll have live coverage of
[00:09:09] of that decision by the Bank of England England today here on BBC News for
[00:09:12] for you with analysis. So be sure
[00:09:14] sure to tune in for that. Now President President Trump has threatened to
[00:09:17] to cut trade with the European Union
[00:09:20] Union if it pursues a proposal to
[00:09:22] to make Canada the bloc's first ever ever associate member. Describing
[00:09:26] Describing the plan as laughable, laughable, Mr Trump said he would
[00:09:28] would view it as a hostile act that that could prompt further tariffs
[00:09:32] tariffs on the EU. The European Commission Commission president, Ursula von
[00:09:35] von der Leyen, had earlier told the the European Parliament that she
[00:09:39] she wanted to work on opening the
[00:09:42] the door for Canada. Well, Christophe Christophe Bondy is independent arbitrator
[00:09:45] arbitrator and principal at dispute dispute resolution firm Doha de Bondy
[00:09:49] Bondy and a former senior Canadian Canadian government trade negotiator,
[00:09:52] negotiator, Christophe. Good to see
[00:09:54] see you. So good to see you. I mean, mean, I must admit I wasn't surprised
[00:09:58] surprised at all to hear about President
[00:10:00] President Trump's reaction to Mark Mark Carney's manoeuvres. Of course,
[00:10:04] course, the Canadian Prime Minister
[00:10:05] Minister is trying to get new and
[00:10:08] and better trade relationships with with other countries, and the EU
[00:10:12] EU bloc is massive on that front.
[00:10:14] front. Yes, of course, I think this this is a huge opportunity for Canada
[00:10:18] Canada and the EU. And I think it
[00:10:21] it aligns with comments that Prime Prime Minister Carney made at Davos
[00:10:24] Davos at the beginning of the year year about like-minded countries
[00:10:27] countries aligning. There are huge huge strategic advantages between
[00:10:30] between Canada and the EU. Canada Canada is an energy superpower. The
[00:10:33] The EU is an enormous 400 million
[00:10:36] million plus market. And so this this doesn't mean that Canada is
[00:10:40] is ditching its deep and strong and and broad relationship with the United
[00:10:43] United States. It means it's building building other bridges or improving
[00:10:46] improving the ones that are there there because of course, Canada already
[00:10:50] already has the CETA, the Canada-eu Canada-eu Free Trade Agreement, which
[00:10:53] which I worked on myself and it's
[00:10:56] it's been in force about 90% of it
[00:10:57] it for the last ten years. And trade's
[00:11:01] trade's increased by 75%. So it's it's a question. Ratified though
[00:11:04] though has it yet? CETA hasn't been
[00:11:06] been ratified by ten EU member states.
[00:11:08] states. That includes France, Italy Italy and Poland, despite the fact
[00:11:12] fact that it was signed nine years
[00:11:13] years ago as you say. So yeah, but
[00:11:17] but there are provisions in the agreement. agreement. There are provisions in
[00:11:20] in the agreement that allow it provisionally
[00:11:22] provisionally to enter into force force as soon as certain percentage
[00:11:26] percentage of member states ratify ratify it, which happened ten years
[00:11:29] years ago. So yes, that is an issue.
[00:11:31] issue. But in practice, for example, example, sort of 99% of trade between
[00:11:35] between Canada and the EU has been been tariff free for the last ten
[00:11:39] ten years. So the benefits of that
[00:11:41] that are there, of course, finalising
[00:11:46] finalising ratification, which is is a bureaucratic and political issue, issue, will be part of this. But
[00:11:49] But I think it goes well beyond that. that. They're talking about already.
[00:11:53] already. We're in entering into security
[00:11:55] security co-operation with the EU, EU, talking about trade in energy,
[00:11:59] energy, increasing substantially. substantially. We're talking about
[00:12:03] about co-operation on scientific scientific fronts, co-operation on
[00:12:06] on education, limited free movement movement of peoples. They're talking
[00:12:09] talking at least the Canadian side side had mentioned in targeted sectors.
[00:12:13] sectors. I think there's much to to be done and it's exciting. OK.
[00:12:16] OK. So clearly you're all for it. it. You're very gung-ho about this,
[00:12:20] this, but there are European leaders leaders within the EU heads of state
[00:12:23] state who are not who were saying
[00:12:27] saying prior to yesterday's state state of the Union address by Ursula
[00:12:30] Ursula von der Leyen, they were sort sort of saying to the press they
[00:12:33] they weren't happy about this associate associate membership idea, and they they were very concerned about what
[00:12:37] what it would mean for the EU's relationship relationship with the US. And it
[00:12:40] it would seem President Trump has has has responded in exactly the
[00:12:43] the way that they warned. Well, I
[00:12:45] I think we're very far away from,
[00:12:49] from, you know, seeing exactly you
[00:12:52] you know, what happens what how the the US responded. Who knows what
[00:12:55] what the US is going to look like like a few months from now? You know,
[00:12:59] know, the fact that the President President threw another tantrum shows
[00:13:02] shows basically lack of respect for for Canadian sovereignty and lack
[00:13:05] lack of respect for European Union
[00:13:07] Union sovereignty, for that matter. matter. And I think that Canada and
[00:13:11] and the EU are going to engage in in a very positive discussion. We'll
[00:13:13] We'll hear it in Prime Minister Carney's Carney's speech today. To be clear,
[00:13:17] clear, this isn't about Canada becoming becoming a member of the European
[00:13:20] European Union. I mean, we're this this is not what the discussion is
[00:13:23] is about. We know that certainly certainly here in the UK, we certainly
[00:13:27] certainly know that. Well yeah. And
[00:13:29] And it's. You know and I think that
[00:13:32] that in the discussions this is a
[00:13:34] a sui generis situation where two
[00:13:36] two very like-minded kind of economic
[00:13:39] economic entities see that there there is also a room for further
[00:13:42] further collaboration. And I think think they're going to be pursuing
[00:13:45] pursuing that at pace and seeking seeking to deliver on it. But I think
[00:13:48] think this delivers on many promises promises that have been made on both both sides. Christophe, thank you
[00:13:52] you so much. Good to talk to you. you. Christophe Bondy there about
[00:13:56] about that situation with Canada, Canada, Canada and Europe. And as
[00:13:58] as you can see Mark Carney is on on a bit of a whistle stop tour of
[00:14:02] of Europe at the moment. He was here here watching a football match with with Andy Burnham, our Prime Minister,
[00:14:05] Minister, yesterday. But he's speaking
[00:14:08] speaking in the in Strasbourg today today addressing European leaders leaders today. We'll have more on
[00:14:12] on that later. Still to come. Smart Smart specs. We try out the latest
[00:14:15] latest wearable tech offering to
[00:14:18] to augment your reality around the
[00:14:20] the world and across the UK. This
[00:14:24] This is BBC News.
[00:15:25] MUSIC
[00:15:33] You're with Business Today on
[00:15:35] BBC News. One company looking to
[00:15:38] to step into the controversial eyewear eyewear market is Snap. It has just
[00:15:41] just launched its latest model called called specs, which it says enables
[00:15:45] enables an augmented reality experience experience using artificial intelligence
[00:15:49] intelligence for its users. Our North North America technology correspondent correspondent Lily Jamali has been
[00:15:53] been trying them out. Snap Inc. Here
[00:15:57] Here in Santa Monica, California, California, is rolling out what they're
[00:15:59] they're calling specs. These are
[00:16:01] are augmented reality glasses that
[00:16:03] that they say act as a fully standalone
[00:16:06] standalone computer, but you might might look a little different walking
[00:16:09] walking down the street. Now to use use these
[00:16:15] Now to use these AR glasses, I begin by pressing the home button button on my hand and in front of
[00:16:19] of me. What I see is a home screen. screen. Hey specs play my morning morning playlist. The idea is to
[00:16:23] to be able to play music. Take me
[00:16:26] me the long way. For real time navigation,
[00:16:29] navigation, watch TV and movies and and enable working, shopping and
[00:16:32] and real time translation in dozens
[00:16:35] dozens of languages. So if I press
[00:16:37] press this button, I can capture
[00:16:40] capture a video. You should be able
[00:16:42] able to see a white flashing light
[00:16:45] light right here in between my eyes eyes on the glasses. That's there
[00:16:48] there to indicate that filming is is taking place. One criticism that's
[00:16:51] that's come up with this form factor factor in general is privacy. Many
[00:16:55] Many people don't like being filmed filmed in public without their knowledge. knowledge. I've seen instructions
[00:16:59] instructions online about how to to hide the LED. Metre, for example,
[00:17:02] example, says it's remotely disabled. disabled. The camera on its devices. devices. When the firm is detected,
[00:17:06] detected, users tampering with the the indicator light. These aren't
[00:17:10] aren't available to consumers just just yet. They are available for
[00:17:13] for pre-order, but consumers can can actually get their hands on these
[00:17:16] these in the UK, in the US as well well as France in the fall. So in
[00:17:20] in just a couple of months and the
[00:17:22] the retail price is 2,195 USD. Well,
[00:17:26] Well, Lily also sat down for an interview
[00:17:28] interview with Snap's chief executive,
[00:17:30] executive, Evan Spiegel, at a time time where there are increasing warnings
[00:17:33] warnings about the pace of AI development, development, particularly the recent
[00:17:37] recent warning from a former researcher researcher at Anthropic over the
[00:17:40] the future of humanity. She asked asked him if he thinks AI development
[00:17:42] development is happening too quickly. quickly. What's most important for
[00:17:46] for us is that we keep humanity at
[00:17:48] at the centre, and I think technology technology has great opportunity
[00:17:51] opportunity to enhance our lives, lives, enhance humanity and that's
[00:17:54] that's how we've thought about developing developing specs and specs intelligence
[00:17:58] intelligence because specs are all all about improving your capabilities, capabilities, right? So when you're
[00:18:01] you're using specs and you're practising practising basketball, you're the
[00:18:04] the one who's getting better at dribbling. dribbling. You're the one who's working
[00:18:08] working on your basketball skills. skills. If specs are helping you you learn how to draw, it's not the
[00:18:12] the computer drawing for you. Specs Specs are helping assist you learn learn that new, you know, assist
[00:18:16] assist you in learning that that that new skill. And so I think for
[00:18:19] for us specs and AI are really about
[00:18:22] about enhancing what we can do as as humans rather than replacing us. us. And I think that's something
[00:18:26] something that's really important important to us. But do you think
[00:18:28] think that those other companies
[00:18:30] companies are moving too quickly?
[00:18:36] quickly? I think there's, you know,
[00:18:38] know, a real difference between doing
[00:18:41] doing cutting edge research and then then how that's actually implemented
[00:18:45] implemented in the world. And so so I think it's a really important important moment to be thoughtful
[00:18:48] thoughtful in terms of the way that that we're actually using this new
[00:18:51] new technology to make sure it's it's furthering what's best for humanity,
[00:18:54] humanity, what's best for our society. society. And I'm glad that there's
[00:18:57] there's a really thoughtful conversation conversation happening right now
[00:19:00] now about the best way to do that. that. Do you have any position on
[00:19:04] on what all of these policy makers
[00:19:05] makers here in the US and around around the world are clamouring,
[00:19:09] clamouring, clamouring for which which is more regulation or some
[00:19:12] some form of guardrails on this development?
[00:19:15] development? I think it's really really important that we focus on
[00:19:19] on the most tangible risks rather rather than imagined risks. It's
[00:19:22] It's really, really hard to build build thoughtful and effective regulation
[00:19:26] regulation around imagined risk. risk. And so what I would really
[00:19:30] really encourage, policymakers, regulators regulators around the world to do
[00:19:32] do is to really think deeply about about what the tangible risks to
[00:19:35] to AI development are, and then work work to figure out what the best
[00:19:39] best guardrails are for those real
[00:19:42] real risks. Interesting there, the the chief executive of Snap. Well,
[00:19:45] Well, if we stay with artificial
[00:19:47] artificial intelligence, OpenAI has
[00:19:49] has reported six new safety instances
[00:19:53] instances as the debate continues continues over the need for enhanced
[00:19:55] enhanced regulation. And these include
[00:19:58] include models concealing mistakes,
[00:20:00] mistakes, generating their own instructions
[00:20:02] instructions and sharing files without
[00:20:04] without authorisation. All of which
[00:20:06] which is feeding into a public anxiety
[00:20:10] anxiety but also market concerns concerns over the AI trade. With
[00:20:14] With some memory and chip stocks stocks taking a hit this week. Well,
[00:20:17] Well, let's talk to Susannah Streeter
[00:20:20] Streeter chief investment strategist strategist at Wealth Club. Morning,
[00:20:24] Morning, Susanna. Good morning Sally.
[00:20:27] Sally. So it's really interesting, interesting, Susanna, because I've
[00:20:29] I've been thinking about the US economy, economy, how it's doing, how our
[00:20:32] our economy is doing because we've we've got the two central banks making
[00:20:35] making decisions on rates. And in
[00:20:37] in the US they've got this incredibly incredibly healthy sort of growth
[00:20:41] growth figure for the economy. A
[00:20:42] A lot of that is to do with this
[00:20:45] this AI industry that is just ballooning
[00:20:47] ballooning there. And in the UK, UK, our last set of growth figures
[00:20:51] figures were slightly better than than we thought. And one of the reasons
[00:20:54] reasons was because of AI investment
[00:20:57] investment and yet here we are talking talking about the risks and regulation
[00:21:01] regulation and slowing it down. It's
[00:21:03] It's a tricky one, isn't it, for for markets because they're riding
[00:21:06] riding the wave and they're making making a lot of money on all of this
[00:21:10] this at the moment. Certainly are.
[00:21:12] are. So we've got this real tug of
[00:21:14] of war haven't we right now between between AI acceleration and safety,
[00:21:18] safety, as you say, there have been been huge sums poured into building
[00:21:22] building out the AI infrastructure infrastructure needed to support
[00:21:26] support this juggernaut. And that's
[00:21:27] that's why you've seen this knock-on
[00:21:30] knock-on effect for growth in the the United States. But also, as you
[00:21:33] you say in the UK as well to some
[00:21:35] some smaller extent. And actually
[00:21:38] actually the huge spend in the US
[00:21:40] US is accounting for some something
[00:21:42] something like 0.4% in terms of inflation. inflation. And we know that it's
[00:21:46] it's been rising. And that's partly partly why the Federal Reserve opted
[00:21:49] opted to hike rates yesterday because because of this huge AI spend. Is
[00:21:53] Is having such an impact on the economy.
[00:21:56] economy. So what you are seeing since
[00:21:58] since these calls have come out for
[00:22:01] for AI development to be slowed down down from the likes of Anthropic
[00:22:05] Anthropic and OpenAI is actually actually it's affecting chip stocks
[00:22:08] stocks in particular because there's there's such voracious demand for
[00:22:11] for chip stocks to really push the
[00:22:14] the frontier of AI and create ever ever more intelligence models. Well,
[00:22:18] Well, the feeling right now is perhaps
[00:22:20] perhaps we might have gone far enough enough for now. And actually what
[00:22:24] what you're seeing is the hyperscalers, hyperscalers, those who've built
[00:22:27] built out the data centres and the the infrastructure, their stocks
[00:22:31] stocks are rising because the feeling feeling is they won't have to keep
[00:22:33] keep spending so much on these very very expensive chips to keep building
[00:22:37] building out. They can use the current current capacity for the demand that
[00:22:40] that there currently is, and there there will be in the near future.
[00:22:44] future. So that's kind of how the
[00:22:46] the market is reacting to all of
[00:22:48] of this. And once again, there's
[00:22:51] there's always opportunities as well
[00:22:55] well as those companies that experience experience a decline in their share share price. Susannah, thank you
[00:22:58] you so much. We'll see you again again soon. Susannah Streeter there
[00:23:02] there from Wealth Club now an Lord
[00:23:08] Lord Leitch is joining me now because because we're asking the question
[00:23:11] question what makes a good business business book? Well, according to
[00:23:15] to this year's Business Book Awards
[00:23:17] Awards being experimental is top
[00:23:20] top of the list. This year's winner
[00:23:23] winner was the book called Tiny Experiments
[00:23:25] Experiments How to Live Freely in
[00:23:28] in a Goal Obsessed World, written
[00:23:31] written by a neuroscientist and entrepreneur entrepreneur who I've just mentioned.
[00:23:35] mentioned. Anne-Laure Le Cunff, who who is apparently packed full of
[00:23:37] of tools to help you break free from
[00:23:40] from limiting beliefs to create a a meaningful, productive life. Morning
[00:23:44] Morning to you, Anne Law, and congratulations. congratulations. Thanks so much,
[00:23:47] much, Sally. Good morning. So I have
[00:23:51] have to say tiny experiments how
[00:23:52] how to live freely in a goal obsessed
[00:23:55] obsessed world. Everybody wants to to do that, do they not? We want
[00:23:58] want to live free of all the stuff
[00:24:01] stuff that's out there telling us
[00:24:02] us how to do life. What do you suggest?
[00:24:05] suggest? Well. One of the problems problems is that we're often told
[00:24:08] told that to be successful, you need need to have a big goal and then
[00:24:11] then you have you need to have the the perfect plan and then just stick
[00:24:14] stick to it. But we all know, I think
[00:24:17] think that life and work really unfold
[00:24:19] unfold in a straight line, and especially especially today with the world changing
[00:24:22] changing so quickly, trying to predict predict exactly where we will end
[00:24:25] end up tends to create just more
[00:24:28] more pressure. So the book instead
[00:24:31] instead asks if instead of trying trying the future, what if you treated
[00:24:34] treated the things that you want
[00:24:35] want to explore as tiny experiments?
[00:24:39] experiments? So you try something, something, you see what happens.
[00:24:42] happens. And then from this you keep keep on iterating and adapting. So
[00:24:46] So it's really ultimately about replacing
[00:24:48] replacing the pressure of control
[00:24:50] control with curiosity and using using experimentation to build a
[00:24:54] a life and a career that feels like
[00:24:56] like your own. In order to do that,
[00:24:59] that, you've got to be prepared to to fail, haven't you? Are you asking
[00:25:02] asking people to be more risk takers?
[00:25:06] takers? Well, I mean, there's always always a possibility for failure.
[00:25:09] failure. The idea here is to change
[00:25:11] change your relationship to failure failure and to see this as a source
[00:25:15] source of data, as a way to learn
[00:25:17] learn more about yourself, about about your studies, your work, or
[00:25:20] or even what you might want to do do in retirement. So failure all
[00:25:24] all of a sudden becomes a partner, partner, something you can learn
[00:25:27] learn from. And how many experiments experiments do you suggest? Is there
[00:25:31] there a list of experiments you should should try? Or do you suggest people
[00:25:34] people come up with their own. Thanks
[00:25:37] Thanks for asking. Because the kind kind of people who tend to enjoy
[00:25:39] enjoy the book are very curious and and they get excited and they want
[00:25:43] want to run a thousand experiments
[00:25:44] experiments and I tell them I'm sorry,
[00:25:47] sorry, but one experiment at a time. time. And the reason why is because
[00:25:51] because if you're changing every every single variable in your life, life, it's going to be really hard
[00:25:55] hard to know what exactly is working working and not working. All right?
[00:25:58] right? And Lord, I'm so sorry we're we're out of time, which is a real
[00:26:01] real shame, but well done. Congratulations. Congratulations. And that brings
[00:26:04] brings to a close Business Today.
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