BBCNEWS — Business Today
20260917 153000 UTC
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[00:00:05] Now on BBC News, the latest
[00:00:06] business news from across the globe.
[00:00:09] globe. Business Today. On hold but
[00:00:19] but for how long? The Bank of England England leaves interest rates unchanged
[00:00:22] unchanged but warns they may rise rise if the Middle East war drags
[00:00:25] drags on. Stronger together Canada's
[00:00:28] Canada's Mark Carney takes aim at
[00:00:29] at US tariffs and big tech as he
[00:00:32] he addresses the European Parliament. Parliament. Throwing down a gauntlet
[00:00:35] gauntlet to President Trump and smart
[00:00:38] smart spec Snap says its new eyewear eyewear will augment your reality.
[00:00:42] reality. We will take a closer look.
[00:00:46] look. Hello. Welcome along. This This is Business Today. I'm Ben Thompson
[00:00:49] Thompson and we start here in the the UK where the Bank of England
[00:00:52] England has left interest rates unchanged
[00:00:55] unchanged at three and three quarters quarters of a percent. Deciding not
[00:00:57] not to follow the US Fed and European European Central Bank by raising
[00:01:01] raising them. The decision in the
[00:01:02] the last few hours was widely expected,
[00:01:06] expected, but it was not unanimous. unanimous. Three of the bank's nine nine member rate setting committee
[00:01:10] committee voted for an increase. increase. The bank, though, did unanimously
[00:01:13] unanimously decide to pause its sell sell off of government bonds. Now
[00:01:16] Now that has seen the UK's government government borrowing costs fall on
[00:01:19] on bond markets. Our economics editor editor Faisal Islam reports now from
[00:01:23] from the Bank of England. They have.
[00:01:26] have. Not followed other major central central banks which have raised rates.
[00:01:30] rates. They've held it at 3.75% on
[00:01:33] on the same split of the nine member member committee that we had before, before, 6 to 3. And the essential
[00:01:37] essential reason is that they recognise recognise rising pressures from energy.
[00:01:40] energy. But they say that for now, now, the rest of the economy hasn't
[00:01:44] hasn't sort of percolated out into into the rest of the economy and
[00:01:48] and effectively that they're going going to wait until they can see
[00:01:51] see that it might feed into wages wages before they act. Now, three
[00:01:55] three members of the committee thought thought actually we've seen enough enough rates should go up. This is
[00:01:59] is an inevitability that it will will percolate into the rest of the
[00:02:01] the economy. Six didn't. So we got
[00:02:04] got a similar decision to what we we got in July, despite the fact fact that energy prices have gone
[00:02:08] gone up considerably since then.
[00:02:12] then. Faisal Islam there with the the very latest from the Bank of of England. Well, financial markets
[00:02:15] markets are betting that the Bank Bank will have to raise rates in
[00:02:18] in the coming months, possibly three three times in the last couple of
[00:02:22] of hours, the governor of the Bank Bank of England has been speaking. speaking. He said a lot will depend
[00:02:25] depend on how long the war in the the Middle East goes on, but that
[00:02:28] that the markets have already done done a lot to push up people's borrowing
[00:02:32] borrowing costs. There are two things things that we focus on. One is the
[00:02:35] the direct impact of energy prices prices and obviously the impact of
[00:02:38] of what we've seen in the Gulf. And And that has obviously had a serious
[00:02:42] serious effect and it continues to to do so. And then we have to look
[00:02:45] look at how that is feeding through through into general inflation and
[00:02:48] and the economy. It's still early early days, so I'm not going to give
[00:02:52] give you any firm judgement as to to what's going to happen so far.
[00:02:55] far. That feed through has been quite
[00:02:58] quite subdued. But it is early days
[00:03:01] days now. Unfortunately the longer longer these high energy prices go
[00:03:05] go on, the more difficult this becomes. becomes. And we've flagged this though
[00:03:07] though clearly today. The final thing thing I'd say is that monetary conditions
[00:03:11] conditions in this country have tightened tightened quite a bit this year because
[00:03:15] because we were expected to cut rates rates and we haven't. And that's
[00:03:19] that's I think, obviously necessary. necessary. And I'll give you the
[00:03:21] the best example of this, which I
[00:03:23] I think many, many viewers will probably probably associate with mortgage
[00:03:27] mortgage rates in this country since since the end of February when the
[00:03:29] the conflict began, have gone up
[00:03:31] up by nearly 1%. So that's a substantial
[00:03:35] substantial tightening of monetary monetary conditions. And we take take that into account. But it's
[00:03:39] it's going to get more difficult difficult with these decisions. The
[00:03:42] The longer this problem and this this conflict goes on. It's the governor
[00:03:45] governor of the Bank of England there there speaking to the BBC. Well,
[00:03:49] Well, there has been some relief relief on energy prices with crude
[00:03:51] crude oil dipping to its lowest level level in a week. Saudi Arabia has
[00:03:55] has reassured traders that its east east west pipeline that was damaged
[00:03:59] damaged in and around backed attack
[00:04:01] attack will resume pumping oil within within days and that it will ramp
[00:04:04] ramp up shipments via Oman to keep keep output levels steady. Well,
[00:04:07] Well, a short while ago, the international international benchmark Brent crude
[00:04:10] crude had made back some of its ground. ground. It's still trading above
[00:04:13] above 100. It's currently around
[00:04:16] around $103 a barrel. Let's talk talk now to Ellen Fraser, who's an
[00:04:19] an energy expert at the consultancy consultancy Baringa that's based
[00:04:22] based here in the UK. Ellen, good good to get your thoughts on this.
[00:04:24] this. And I mean apart from what what Saudi said today, what's changed
[00:04:28] changed to give give us that glimmer glimmer of hope in terms of the oil
[00:04:31] oil price. Yeah. We've got to think think about the market fundamentals
[00:04:34] fundamentals here. So we're in a a position where we're entering winter
[00:04:37] winter in the northern hemisphere hemisphere and our energy consumption consumption particularly for heating,
[00:04:41] heating, is going to increase. Global Global stock levels are relatively
[00:04:44] relatively low. We're still not able able to move product through the
[00:04:48] the Strait of Hormuz. And anything anything like the volumes that we we had done historically and refining
[00:04:52] refining capacity is tight as well. well. So there's lots of stresses
[00:04:54] stresses in the market in the last last few hours, few days we've seen
[00:04:58] seen the news obviously from Saudi Saudi Arabia. The positive news around
[00:05:01] around the pipeline beginning to
[00:05:03] to move and some potential rebuild rebuild in terms of global stock
[00:05:07] stock levels as well. And you know, know, it's just a sign that the market
[00:05:10] market is so tight that any good good news will cause a bit of a blip
[00:05:13] blip and any bad news will cause cause a bit of a blip as well. It's It's just going to be really volatile
[00:05:17] volatile for the coming period until until we get back to some level of
[00:05:20] of market stability. Yeah. You mentioned mentioned stock levels as well. I
[00:05:23] I was reading an interesting report report earlier about how decimated
[00:05:26] decimated those stock levels have have been right around the world, world, and it will take some time
[00:05:29] time for energy firms to build up
[00:05:31] up those reserves once again, I mean, mean, this is the big question. How
[00:05:35] How long will it take? And also, also, is it a case that until those
[00:05:38] those stocks are back up, we'll see see these high prices. Fundamentally
[00:05:42] Fundamentally yes absolutely. While While stocks are tight the market
[00:05:45] market you know has lost quite a a lot of its resilience typically typically at this time of year certainly
[00:05:49] certainly within the European region, region, we're at a position where
[00:05:52] where we've got really high gas reserves
[00:05:55] reserves that then see us through through the winter and mean we're
[00:05:58] we're not quite as exposed in the the UK and in Europe more broadly
[00:06:01] broadly in terms of the spot price price for gas. We just don't have
[00:06:05] have that level of insurance policy policy now because we didn't manage
[00:06:08] manage to fill up those stock levels levels over winter. And we haven't
[00:06:12] haven't mentioned the gas price so so far, but actually the gas price price has really gone up quite materially
[00:06:16] materially recently. So it just means means that we're much more exposed
[00:06:19] exposed to that. And obviously, you you know, that feeds through into
[00:06:22] into electricity as well. Given that
[00:06:23] that we do still burn gas to generate
[00:06:26] generate electricity. Ellen, good good to talk to you. Thanks so much.
[00:06:29] much. Ellen Fraser there at Beringer. Beringer. Thank you. Well, elsewhere
[00:06:33] elsewhere today, the Canadian Prime Prime Minister, Mark Carney, has has told the European Parliament
[00:06:37] Parliament in Strasbourg that his his country and Europe would be stronger
[00:06:41] stronger together. Well, that comes comes after the EU proposed making
[00:06:44] making Canada its first ever associate associate member. Well, that sparked
[00:06:47] sparked a furious backlash from President President Trump, who says it could
[00:06:50] could be viewed as a hostile act
[00:06:52] act that might prompt further tariffs
[00:06:55] tariffs on the EU. In a wide ranging ranging speech quoting a German poet
[00:06:59] poet and alternating between English English and French, the Prime Minister,
[00:07:02] Minister, Mr Carney, took aim at
[00:07:04] at US trade policies and big tech.
[00:07:07] tech. Together, Canada and the European
[00:07:10] European Union can anchor our ground
[00:07:12] ground to hold our values while forming
[00:07:15] forming a protective canopy under
[00:07:18] under which our citizens can thrive.
[00:07:21] thrive. This is about sovereignty
[00:07:25] sovereignty our ability to live as
[00:07:28] as we wish. It's about the freedoms
[00:07:30] freedoms we must fight for every
[00:07:34] every day because sovereignty requires
[00:07:37] requires resilience, the ability
[00:07:39] ability to withstand shocks. Sovereignty
[00:07:41] Sovereignty today goes beyond being being able to feed, fuel and defend
[00:07:44] defend ourselves. It now requires
[00:07:47] requires secure access to AI, semiconductors, semiconductors, critical minerals,
[00:07:51] minerals, payment systems, clean clean energy technologies, vaccines,
[00:07:55] vaccines, space based communications
[00:07:57] communications and we all have important important gaps in these strategic
[00:08:01] strategic capabilities. And we each
[00:08:03] each must rely on individual nations
[00:08:05] nations or individual companies to
[00:08:07] to fill them. And that. Does Mark
[00:08:10] Mark Carney, speaking a little earlier. earlier. Well, Ryan Majerus is a a partner at the international law
[00:08:14] law firm King and Spalding and a a former legal adviser on trade in
[00:08:18] in the last Trump administration. administration. Ryan, good to have
[00:08:21] have you here. And I mean, let's let's start first of all with that that that response from the White
[00:08:25] White House. What do you make of
[00:08:26] of it? So. You know, at this stage stage with the relationship with
[00:08:30] with Canada and the European Union, Union, I'm not surprised by the reaction. reaction. Obviously things are quite
[00:08:34] quite hostile between the US and and Canada. We're expecting pretty
[00:08:37] pretty significant tariffs to be be applied to the EU soon. Under
[00:08:40] Under a new section 301 investigation. investigation. So you know I don't
[00:08:43] don't think the I think the threats threats are very real. But I also
[00:08:46] also see why this is happening on on the Canadian and European side. side. The soft power dynamics have
[00:08:50] have changed quite a bit. And given given that Canada's free trade agreement
[00:08:53] agreement with the EU has not yet yet been ratified, this associate associate membership could provide
[00:08:57] provide a lot of avenues to collaborate. collaborate. Why is it being viewed
[00:09:01] viewed as a hostile deal though? though? I mean, you might say and
[00:09:04] and this is certainly the wording wording that's coming from the European European Union around Better Together,
[00:09:08] Together, the idea that Canada and and the EU could create something,
[00:09:11] something, be it trade, be it security,
[00:09:12] security, be it defence that currently
[00:09:15] currently Canada isn't able to do
[00:09:17] do with the US. So I think it's hard
[00:09:19] hard for this administration to separate separate everything happening with
[00:09:23] with Canada with this recent development. development. And I think that leads
[00:09:25] leads to some of the antagonism here. here. I think it's also important
[00:09:29] important to bear in mind the US US has a lot of trade concerns with with the European Union, not that
[00:09:32] that different than Canada. So there's there's always risk of the relationship
[00:09:36] relationship with the EU shifting shifting in a bad direction as well. well. Yeah. It's interesting. I spoke
[00:09:40] spoke on this programme yesterday yesterday to a politician in Canada Canada talking about actually they
[00:09:43] they feel like they're a bit of a a sandwich. They're caught between
[00:09:45] between the US in the south and then then to the north. A lot of this
[00:09:49] this contested territory that President President Trump has his eye on. They They say this is a security issue
[00:09:52] issue as much as it is a trade issue.
[00:09:55] issue. She has a point, doesn't she? she? So, you know, more and more
[00:09:59] more broadly, the US has had long long standing concerns with our trading trading partners. And again, no different
[00:10:03] different with Canada and the European European Union on, on non-tariff
[00:10:06] non-tariff barriers and other restrictions. restrictions. So I do think the underlying underlying goals of what they're
[00:10:09] they're trying to do on the trade
[00:10:11] trade side are there the strain currently currently between the US and Canada
[00:10:15] Canada obviously dovetails into a a lot of other issues beyond trade, trade, a lot of political issues
[00:10:18] issues now. And I think a lot of of those issues are also present present with the European Union.
[00:10:22] Union. The major difference between between the two is that the US and
[00:10:25] and the EU have a trade deal in response response to their reciprocal tariffs
[00:10:28] tariffs from last year. And I think think the ultimate question is going going to be does that agreement hold
[00:10:32] hold up? And what we heard from President President Trump, of course, was that
[00:10:35] that he may slap more tariffs on on the European Union, may decide
[00:10:37] decide not to trade with the EU at
[00:10:39] at all. Is that feasible? I don't
[00:10:42] don't see a scenario where we don't don't trade with the European Union
[00:10:45] Union going forward. I think the the risk is that currently we have
[00:10:47] have global tariffs in place against against the European Union. Under
[00:10:50] Under a section 301 investigation investigation on forced labour, there's
[00:10:53] there's going to be another 301 tariff tariff announcement likely in the
[00:10:56] the next couple of months on excess excess capacity. And the expectation
[00:10:59] expectation is those rates will stack stack on top of the existing rates.
[00:11:03] rates. So it's possible that you you see tariff rates substantially substantially rise. And the question
[00:11:07] question is going to be there's a a cap on tariffs with the European European Union under their trade
[00:11:11] trade agreement. Does that hold up up after this announcement is made. made. Ryan good to talk to you as
[00:11:14] as always. Thank you. Ryan Medeiros Medeiros there. Thank you. Now wearable
[00:11:18] wearable tech is a growing industry industry for tech firms but few have
[00:11:22] have nailed it completely. But today today it is the turn of Snap as it
[00:11:25] it launches its new eyewear. The The latest model is called specs,
[00:11:28] specs, and the firm says it enables
[00:11:30] enables an augmented reality experience
[00:11:33] experience using artificial intelligence.
[00:11:35] intelligence. Our North America technology technology correspondent Lily Jamali
[00:11:38] Jamali has been trying them
[00:11:42] out. Snap Inc here in Santa Monica, Monica, California is rolling out out what they're calling specs. These
[00:11:46] These are augmented reality glasses
[00:11:48] glasses that they say act as a fully fully standalone computer. But you
[00:11:52] you might look a little different different walking down the street.
[00:11:55] street. Now to use these AR glasses, glasses, I begin by pressing the
[00:11:59] the home button on my hand and in
[00:12:01] in front of me. What I see is a home
[00:12:04] home screen. Hey specs, play my morning
[00:12:06] morning playlist. The idea is to
[00:12:08] to be able to play music. Take me
[00:12:11] me the long way. For real time navigation,
[00:12:14] navigation, watch TV and movies and and enable working, shopping and
[00:12:17] and real time translation in dozens
[00:12:20] dozens of languages. So if I press
[00:12:22] press this button, I can capture
[00:12:25] capture a video. You should be able
[00:12:27] able to see a white flashing light
[00:12:29] light right here in between my eyes eyes on the glasses. That's there
[00:12:33] there to indicate that filming is is taking place. One criticism that's
[00:12:36] that's come up with this form factor factor in general is privacy. Many
[00:12:40] Many people don't like being filmed filmed in public without their knowledge. knowledge. I've seen instructions
[00:12:44] instructions online about how to to hide the LED. Metre, for example,
[00:12:47] example, says it's remotely disabled. disabled. The camera on its devices. devices. When the firm is detected,
[00:12:51] detected, users tampering with the the indicator light. These aren't
[00:12:55] aren't available to consumers just just yet. They are available for
[00:12:58] for pre-order, but consumers can can actually get their hands on these
[00:13:01] these in the UK., in the US as well
[00:13:04] well as France in the fall. So in in just a couple of months and the
[00:13:07] the retail price is 2195 US dollars.
[00:13:11] dollars. And that is your business.
[00:13:12] business. We'll see you soon. Bye-bye.
[00:14:27] high for Republicans and Democrats Democrats and for the American people. people. For the latest, follow us
[00:14:30] us on The President's Path here on
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[00:14:40] Verify. We use forensic investigative investigative techniques and tools
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[00:15:20] Welcome back and let's get more
[00:15:22] on artificial intelligence with King
[00:15:24] King Charles urging tech bosses to
[00:15:26] to develop a sufficient means of of controlling the technology before,
[00:15:30] before, in his words, it all becomes becomes too late. Well, addressing
[00:15:34] addressing figures from Nvidia, Google, Google, DeepMind, OpenAI, Anthropic
[00:15:37] Anthropic and others, the King warned warned of the existential dangers
[00:15:40] dangers of AI falling into the wrong
[00:15:42] wrong hands. Well, Suresh Venkatasubramanian
[00:15:46] Venkatasubramanian is the director director of centre for Technological Technological Responsibility at Brown
[00:15:49] Brown University. I asked him a little little earlier what he thought of
[00:15:52] of the wealth of warnings that have have come from AI bosses. I have
[00:15:56] have very mixed feelings about this. this. On the one hand, I'm very glad