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20260917 103000 UTC
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[00:00:02] Now on BBC News. The latest
[00:00:04] business news from across the globe.
[00:00:06] globe. Business Today. Stronger Together
[00:00:17] Together Canada's Mark Carney takes takes aim at US tariffs and big Tech
[00:00:21] Tech as he addresses the European
[00:00:23] European Parliament. Defying the the President, the Federal Reserve
[00:00:26] Reserve and America raises interest interest rates for the first time
[00:00:29] time in three years. But President President Trump continues to call
[00:00:32] call for lower borrowing costs. We
[00:00:35] We should be paying the lowest interest interest rate anywhere in the world
[00:00:39] world because we have the strongest strongest credit. And focus now turns
[00:00:41] turns to the Bank of England for for its latest interest rate decision.
[00:00:45] decision. Today, as energy prices
[00:00:47] prices continue to soar. Hello. Welcome
[00:00:51] Welcome along. This is Business Today. Today. I'm Ben Thompson. Now President
[00:00:54] President Trump has threatened to to cut trade with the European Union
[00:00:57] Union if it pursues a proposal to to make Canada an associate member.
[00:01:01] member. He said it could be viewed viewed as a hostile act that may
[00:01:05] may prompt further tariffs on the the EU. Well, in the last hour the
[00:01:09] the Canadian Prime Minister, Mark Mark Carney, has been addressing addressing the European Parliament.
[00:01:12] Parliament. He quoted a German poet poet and alternated between English
[00:01:15] English and French. He took aim at
[00:01:17] at US trade policies and US Big tech
[00:01:20] tech as a threat. He said to Canadian
[00:01:23] Canadian and European sovereignty.
[00:01:26] sovereignty. Together, Canada and and the European Union can anchor
[00:01:29] anchor our ground to hold our values
[00:01:32] values while forming a protective
[00:01:35] protective canopy under which our
[00:01:37] our citizens can thrive. This is
[00:01:42] is about sovereignty our ability
[00:01:45] ability to live as we wish. It's
[00:01:48] It's about the freedoms we must fight
[00:01:50] fight for every day because sovereignty
[00:01:55] sovereignty requires resilience,
[00:01:56] resilience, the ability to withstand
[00:01:59] withstand shocks, sovereignty today today goes beyond being able to feed,
[00:02:02] feed, fuel and defend ourselves.
[00:02:05] ourselves. It now requires secure
[00:02:07] secure access to AI, semiconductors, semiconductors, critical minerals,
[00:02:09] minerals, payment systems, clean clean energy technologies, vaccines,
[00:02:13] vaccines, space based communications
[00:02:16] communications and we all have important important gaps in these strategic
[00:02:20] strategic capabilities. And we each
[00:02:22] each must rely on individual nations
[00:02:24] nations or individual companies to
[00:02:26] to fill them. So that's Mark Carney Carney speaking a little earlier.
[00:02:29] earlier. Let's talk now to Allie Allie Renison, who is the senior senior counsel at the consultancy
[00:02:33] consultancy SEC Newgate former government government trade adviser. Allie,
[00:02:35] Allie, always good to have you here. here. What do you make of what you you heard there from Mark Carney?
[00:02:39] Carney? Because I mean, there's so so many elements where he's calling calling for closer co-operation,
[00:02:43] co-operation, but it will feel at at odds with, you know, the relationship relationship they currently have
[00:02:47] have with their biggest trading partner partner and their neighbour, the
[00:02:50] the United States. Yes, you might might say that actually what Mark
[00:02:54] Mark Carney is doing is sort of not not a million miles removed from from what the UK was trying to do
[00:02:58] do after it left the EU in terms terms of reorienting and pivoting
[00:03:02] pivoting itself towards a less geographically geographically proximate neighbours neighbours in terms of leveraging
[00:03:06] leveraging its influence. Now, I I think that Mark Carney is trying trying to show that he means business
[00:03:09] business when it comes to diversifying
[00:03:11] diversifying and becoming less reliant
[00:03:13] reliant on what he might see as sort sort of hostile actions from that
[00:03:16] that next door neighbour, and that that it's not just words that he's
[00:03:20] he's following it up with action. action. Now, I think the devil is
[00:03:22] is in the detail about what on earth earth this associate membership will
[00:03:25] will mean. You know, does it mean mean actually sort of closer trade
[00:03:29] trade and regulatory alignment? That's That's a bit of an issue for firms firms that might be trading across
[00:03:33] across the US Canadian border. But But for right now it's more of a a sort of statement of intent and
[00:03:37] and direction of travel. Yeah. And And if you look at where they're they're calling for closer co-operation,
[00:03:40] co-operation, it sort of tells us us all we need to know, doesn't it?
[00:03:42] it? It's the buzzwords of the moment
[00:03:45] moment minerals, defence and AI. AI. And those really could be issues
[00:03:48] issues of national security. There There could be issues of sovereignty
[00:03:51] sovereignty because he laid aim at at some of those tech firms saying, saying, look, they have their own
[00:03:55] own interests at heart, particularly particularly American tech firms
[00:03:58] firms not really looking after the the rest of the world. Yeah, I think
[00:04:02] think it's a lot for Mark Carney. Carney. It's about sort of diversifying
[00:04:06] diversifying access and increasing increasing sort of stability and and security of supply, including,
[00:04:09] including, I suppose, on, on the the issues of the day, which are, are, as you mentioned, sort of digital
[00:04:13] digital and tech sovereignty. To To what extent if the US government
[00:04:16] government has a very close relationship relationship with and is able to,
[00:04:18] to, quote unquote, sort of turn off
[00:04:21] off certain technological platforms platforms in terms of other trading
[00:04:25] trading partners like Canada's access access to it, is that really sort
[00:04:28] sort of a good way to go about having, having, you know, sort of security
[00:04:31] security going forward in the 21st 21st century? Now, I think that the
[00:04:34] the way in which you do that is up up for debate. But certainly, as as you mentioned, this is all about
[00:04:38] about co-operation right now with with the EU and trying to diversify diversify who the Canadian government
[00:04:41] government is working with on some some of these issues. As we expected,
[00:04:45] expected, there was a response from from the White House, President Trump Trump saying that if they do that
[00:04:49] that when he's referring there to to that relationship, he said it
[00:04:52] it would be deemed as potentially potentially a hostile act. He says
[00:04:55] says if a good intention, that is is fine. If it's a bad intention, intention, we'll put heavy tariffs
[00:04:59] tariffs on Europe or even stop trading trading on some things. I mean, is
[00:05:03] is that all bluster and rhetoric rhetoric or, you know, should the
[00:05:05] the European Union be concerned by by that threat? I think that it really
[00:05:09] really depends on what exactly this this associate membership, if indeed
[00:05:12] indeed it is membership, we do have have EU association agreements that
[00:05:15] that are fairly sort of well defined defined trade agreements that are
[00:05:17] are pretty close when it comes to to economic integration. If it's
[00:05:21] it's really just about sort of doing doing the same kind of co-operation
[00:05:25] co-operation that the US and Canada Canada do in certain areas, that's
[00:05:27] that's probably fine by the US government. government. But if it's talking about
[00:05:30] about actually aligning with the the EU in a way that actually Trump
[00:05:34] Trump might say, the President might
[00:05:35] might say punishes or sort of discriminates
[00:05:38] discriminates against US firms in in favour of European ones, then
[00:05:41] then I think you can expect to see see some retaliatory measures. Ali,
[00:05:44] Ali, good to talk to you. Thanks Thanks so much. Allie Renison there
[00:05:47] there at Newgate. Really good to to talk to you. Thanks very much. much. Just a reminder, of course
[00:05:51] course we'll keep a close eye on on the press conference that's expected
[00:05:53] expected to get under way with Mark Mark Carney and Ursula von der Leyen.
[00:05:57] Leyen. So we will take you there there if that begins. Now, elsewhere
[00:06:01] elsewhere in the US, the central central bank has raised interest interest rates for the first time
[00:06:05] time in three years as inflation inflation worries superseded pressure pressure from the President to bring
[00:06:09] bring down the cost of borrowing. borrowing. In a unanimous decision,
[00:06:12] decision, the Federal Reserve raised raised rates by a quarter of 1% to
[00:06:16] to between 3 and 3 quarters and 4%.
[00:06:19] 4%. Now it's a bit too tame. It's It's a move to tame price rises that
[00:06:21] that have been driven by the soaring soaring cost of energy from the Middle
[00:06:24] Middle East. Well, it's fair to say, say, though, that President Trump
[00:06:27] Trump doesn't agree with the economic economic medicine they're taking
[00:06:30] taking to social media. He posted posted that interest rates in the
[00:06:33] the United States should be, quote,
[00:06:35] quote, 1% or less because he said
[00:06:38] said we are the best credit in the the world by far. That's in caps.
[00:06:42] caps. Samira Hussain has more from
[00:06:43] from New York. By raising interest
[00:06:46] interest rates a quarter of a percentage percentage point in saying that inflation
[00:06:49] inflation is the big reason why the
[00:06:51] the Federal Reserve did what it was was expected to do. Now, The Fed
[00:06:55] Fed also said that, look, the US
[00:06:57] US economy is growing at a pretty
[00:06:59] pretty healthy rate, despite geopolitical
[00:07:03] geopolitical developments, presumably presumably referring to the war with
[00:07:06] with Iran, which is really driven
[00:07:08] driven up inflation. In a press conference,
[00:07:11] conference, Fed Chair Kevin Warsh
[00:07:13] Warsh admitted look, this rate hike hike won't reopen the Strait of Hormuz.
[00:07:16] Hormuz. A quarter point rate hike hike does not reopen the Strait of
[00:07:20] of Hormuz. And so I wonder how you you think the smaller rate hikes
[00:07:23] hikes will be effective when it can't can't necessarily address the energy
[00:07:27] energy supply side of inflationary inflationary pressures. We cannot
[00:07:30] cannot affect any individual price, price, whether it be oil prices,
[00:07:33] prices, whether it be foodstuffs foodstuffs at the grocery store.
[00:07:36] store. But what we can do and will
[00:07:38] will do is ensure that any change
[00:07:40] change in relative prices don't broaden
[00:07:42] broaden out. So how will all of this this make a difference? Well, the
[00:07:45] the Federal Reserve really made it it clear that this is all about the
[00:07:49] the American consumer and specifically specifically those that are less
[00:07:53] less well off, that they really want
[00:07:55] want to try and get the cost of living living under control. And this is
[00:07:59] is one way that they can do that.
[00:08:01] that. Samira there with the details
[00:08:03] details from the US. But in the UK UK today it is the turn of the Bank
[00:08:07] Bank of England to make its latest latest call on interest rates. That
[00:08:10] That decision is due in less than
[00:08:12] than half an hour at midday UK time.
[00:08:14] time. The central bank, widely expected expected to keep interest rates on
[00:08:18] on hold despite facing similar pressures pressures to those of the US when
[00:08:21] when it comes to energy costs. Well, Well, the latest figures out on Wednesday
[00:08:24] Wednesday showed that inflation hit
[00:08:27] hit 3.1% in August. That is the highest highest level in five months and
[00:08:30] and as we said, largely driven by
[00:08:33] by increases in fuel costs. Well, Well, Kathleen Brooks is research
[00:08:36] research director at the trading trading platform XTB. She's been been telling us why she believes
[00:08:40] believes the bank won't follow The The Fed and raise rates today. Yeah,
[00:08:44] Yeah, I would agree that the labour labour market is a really, really
[00:08:46] really weak point. We've seen private private sector wage growth is now
[00:08:50] now below the level of inflation. inflation. And we've also seen payroll
[00:08:54] payroll employment that's actually actually been falling. So yeah, you're
[00:08:56] you're completely right. The US economy
[00:08:58] economy is on track to increase by by 5.1% this quarter. And our growth
[00:09:02] growth rates are just a mere fraction fraction of that. And I think that
[00:09:05] that the Bank of England they'll they'll want to see more evidence
[00:09:09] evidence that this inflation spike spike caused by the energy spike
[00:09:12] spike caused by geopolitics is having having a bigger and a broader impact
[00:09:15] impact on the economy before they they hike. But I do think that there's
[00:09:18] there's a potential for a hike in in November. Well, we'll have that
[00:09:21] that decision for you at midday here
[00:09:24] here on BBC News Now. Wearable tech tech is a growing industry for the
[00:09:27] the big tech firms, but few have have really nailed it completely. completely. Today, though, it is
[00:09:31] is the turn once again of Snap. It's It's launching its new eyewear. The
[00:09:35] The latest model is called specs, specs, and the firm says it enables
[00:09:39] enables an augmented reality experience
[00:09:42] experience using artificial intelligence. intelligence. While our North America America technology correspondent
[00:09:45] correspondent Lily Jamali has been
[00:09:46] been trying them out. Snap Inc here
[00:09:50] here in Santa Monica, California, California, is rolling out what they're
[00:09:53] they're calling specs. These are
[00:09:55] are augmented reality glasses that
[00:09:57] that they say act as a fully standalone
[00:10:00] standalone computer, but you might might look a little different walking
[00:10:03] walking down the street. Now to use
[00:10:04] use these AR glasses, I begin by
[00:10:07] by pressing the home button on my my hand and in front of me. What
[00:10:11] What I see is a home screen. Hey
[00:10:13] Hey specs, play my morning playlist.
[00:10:16] playlist. The idea is to be able able to play music. Take me the long
[00:10:20] long way. For real time navigation,
[00:10:22] navigation, watch TV and movies and and enable working, shopping and
[00:10:26] and real time translation in dozens
[00:10:28] dozens of languages. So if I press
[00:10:31] press this button, I can capture
[00:10:33] capture a video. You should be able
[00:10:35] able to see a white flashing light
[00:10:38] light right here in between my eyes eyes on the glasses. That's there
[00:10:42] there to indicate that filming is is taking place. One criticism that's
[00:10:45] that's come up with this form factor factor in general is privacy. Many
[00:10:49] Many people don't like being filmed filmed in public without their knowledge. knowledge. I've seen instructions
[00:10:52] instructions online about how to to hide the LED. Metre, for example,
[00:10:56] example, says it's remotely disabled. disabled. The camera on its devices. devices. When the firm is detected,
[00:11:00] detected, users tampering with the the indicator light. These aren't
[00:11:03] aren't available to consumers just just yet. They are available for
[00:11:07] for pre-order, but consumers can can actually get their hands on these
[00:11:10] these in the UK., in the US as well well as France in the fall. So in
[00:11:14] in just a couple of months and the
[00:11:15] the retail price is 2195 US dollars.
[00:11:20] dollars. Make of them what you will will answers on a postcard after
[00:11:23] after trying out the new tech, though, though, Lily sat down with Snap's
[00:11:25] Snap's chief executive. That's Evan Evan Spiegel. And amid growing concern
[00:11:29] concern over the pace of AI development, development, she asked if he thinks
[00:11:32] thinks AI is happening too quickly.
[00:11:36] quickly. I think there's. You know,
[00:11:38] know, a real difference between doing
[00:11:42] doing cutting edge research and then then how that's actually implemented
[00:11:45] implemented in the world. And so so I think it's a really important important moment to be thoughtful
[00:11:48] thoughtful in terms of the way that that we're actually using this new
[00:11:51] new technology to make sure it's it's furthering what's best for humanity,
[00:11:54] humanity, what's best for our society. society. And I'm glad that there's
[00:11:58] there's a really thoughtful conversation conversation happening right now
[00:12:00] now about the best way to do that.
[00:12:02] that. Do you have any position on on what all of these policy makers
[00:12:06] makers here in the US and around around the world are clamouring,
[00:12:09] clamouring, clamouring for which which is more regulation or some
[00:12:12] some form of guardrails on this development? development? I think it's really
[00:12:16] really important that we focus on
[00:12:19] on the most tangible risks rather rather than imagined risks. It's
[00:12:22] It's really, really hard to build
[00:12:24] build thoughtful and effective regulation regulation around imagined risk.
[00:12:27] risk. And so what I would really really encourage, you policymakers,
[00:12:30] policymakers, regulators around the the world to do is to really think
[00:12:33] think deeply about what the tangible tangible risks to AI development
[00:12:36] development are, and then work to to figure out what the best guardrails
[00:12:40] guardrails are for those real risks.
[00:12:42] risks. The boss of Snap there, speaking speaking to the BBC, a reminder that
[00:12:46] that interest rate decision here here in the UK happening at midday.
[00:12:49] midday. There'll be full coverage coverage here on BBC News television
[00:12:51] television but also on the website
[00:12:54] website bbc.com/business. MUSIC
[00:13:05] MUSIC
[00:14:17] coverage join me James Landale here
[00:14:20] here on BBC News. Here at BBC Verify,
[00:14:27] Verify, we use forensic investigative investigative techniques and tools
[00:14:29] tools to fact check stories, verify
[00:14:32] verify information and counter disinformation disinformation using data analysis analysis and the latest technology,
[00:14:36] technology, our journalists examine examine the evidence and get to the
[00:14:39] the facts. Watch our BBC Verify reports reports on the BBC News channel or
[00:14:41] or go online to find out more.
[00:15:07] King Charles has called on AI
[00:15:09] giants to keep tech in service of of humanity ahead of him chairing
[00:15:13] chairing a summit with industry leaders.
[00:15:16] leaders. Concerns about the existential existential threat of AI have intensified
[00:15:19] intensified in recent weeks, with with several instances of bad actors
[00:15:23] actors using artificial intelligence intelligence models for weapons development
[00:15:26] development and fraud. Yang Li co-founder
[00:15:29] co-founder and chief operating officer officer of AI Lab Co-Sign, who are
[00:15:33] are developing what they describe describe as the first fully AI model
[00:15:36] model to rival the likes of Anthropic
[00:15:38] Anthropic and OpenAI, has been telling
[00:15:40] telling me why sovereignty is so so important. I think a sovereign
[00:15:43] sovereign model is beyond just a a Union Jack sticker. I think as
[00:15:46] as we are depending on building on
[00:15:48] on top of AI, the UK needs to know know what is exactly inside the AI,
[00:15:52] AI, what data is inside it, does does it have a kill switch that is
[00:15:56] is beholden to another foreign government? government? And will we lose access access to it when we