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20261012 033000 UTC
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[00:00:06] Live from Singapore now on BBC
[00:00:09] News, Business Today. Oil prices
[00:00:17] prices fall as global energy markets markets brace for more Russian supplies
[00:00:21] supplies after US President Donald Donald Trump said Kyiv and Moscow
[00:00:23] Moscow had agreed to an energy ceasefire.
[00:00:26] ceasefire. And as Microsoft's CEO CEO calls for emergency brakes on
[00:00:29] on advanced AI. BBC sits down with with the company's president, who
[00:00:33] who warns artificial intelligence intelligence is moving faster than
[00:00:35] than the speed of safety. Net and
[00:00:43] and welcome to Business Today. Oil Oil prices are dropping on the hope
[00:00:46] hope of some relief on the global global supply crunch after President
[00:00:49] President Trump claimed Russia and and Ukraine have agreed to an energy
[00:00:53] energy ceasefire. Both countries countries have been trading major major strikes on energy infrastructure
[00:00:56] infrastructure for weeks now. On On Friday, President Trump also said
[00:00:59] said that Russia had agreed to supply supply diesel to global markets in
[00:01:02] in an effort to lower fuel prices prices after the US temporarily lifted
[00:01:06] lifted sanctions on Russian fuel.
[00:01:07] fuel. Brent crude is trading just
[00:01:12] just below the $103 a barrel mark, mark, while WTI, the primary benchmark
[00:01:15] benchmark for US oil well. That's That's just under the $90 a barrel
[00:01:18] barrel mark. However, global energy energy markets remain on edge after
[00:01:22] after strikes from the Houthis on on Saudi Arabia. Mean Saudi Arabia's
[00:01:25] Arabia's main airport raised concerns concerns that the escalation could
[00:01:28] could exacerbate supply risks. Let's
[00:01:30] Let's get the latest from our Asia Asia business reporter Archana Shukla
[00:01:33] Shukla Arsenault. Tell us what you've you've been seeing. It looks like
[00:01:35] like the price of Brent and WTI crude crude seems to be dropping a little
[00:01:39] little bit over the last few hours. hours. Well it's dropping but then
[00:01:43] then it's highly volatile. If we we would look at it you know last
[00:01:46] last few days chart shows there have have been intraday swings as well
[00:01:49] well because traders are literally literally digesting competing forces.
[00:01:52] forces. There is some hope from you you know, president President Trump's
[00:01:55] Trump's claim that there could be be an energy ceasefire between Russia
[00:01:59] Russia and Ukraine and that Russia Russia would, you know, start supplying
[00:02:02] supplying diesel to the global markets markets that could bring down prices
[00:02:06] prices and increase supplies. But But at the same time, there is question
[00:02:09] question mark because there have have been some reports of, you know,
[00:02:12] know, more attacks on Ukraine. And
[00:02:16] And even after this was announced. announced. So there is a question
[00:02:18] question mark on the validity of of that ceasefire agreement, how
[00:02:22] how long that could last. And question question marks on how much capacity
[00:02:25] capacity does Russia really have have in terms of diesel refining refining that it could supply to
[00:02:29] to the world on a consistent basis basis going forward? So lots of questions
[00:02:33] questions there. Then there is obviously
[00:02:36] obviously the you know, the increased increased security situation in Saudi
[00:02:39] Saudi Arabia over the weekend that that has again, put a question mark
[00:02:42] mark on supply of Middle East oil oil to the world. There has been
[00:02:45] been increased oil supplies from from that region, with oil producers
[00:02:49] producers looking at alternate options, options, alternate channels. But
[00:02:52] But that obviously has added to the the freight cost for oil. But at
[00:02:55] at least some oil was still moving moving out. But then with the increased
[00:02:58] increased security situations, there there is a question mark there. So So there are competing forces. Oil
[00:03:02] Oil prices are expected to remain remain on the higher side as well.
[00:03:05] well. We are already seeing it above above $100 perched above $100 a barrel,
[00:03:09] barrel, and it is expected to stay stay there for some more time. Thanks
[00:03:11] Thanks very much for that Archana Archana Shukla there Microsoft Chairman
[00:03:14] Chairman and CEO Satya Nadella has has called for advanced artificial
[00:03:17] artificial intelligence systems to to be built with an emergency brake
[00:03:20] brake that lets people pause or shut
[00:03:22] shut a model down mid task. His comments
[00:03:24] comments come after top tech executives executives warned that the technology
[00:03:27] technology is moving too fast, with with limited guardrails. Conversely,
[00:03:30] Conversely, President Trump has dismissed dismissed AI risks. Speaking to the
[00:03:34] the BBC for the Big Boss interview, interview, Brad Smith, the President
[00:03:37] President of Microsoft, says AI is is moving faster than the speed of
[00:03:40] of safety. When you look at AI agents
[00:03:44] agents that have escaped human control, control, when you look at models
[00:03:47] models that are so powerful that that they're putting the world's
[00:03:51] world's cybersecurity at risk, I I would say, look, the moment has
[00:03:54] has arrived. Let's speak calmly,
[00:03:57] calmly, maybe even softly but firmly,
[00:04:00] firmly, and start to bring people people together. I hope that's the
[00:04:03] the role we can play as a company. company. I hope that's the role the
[00:04:06] the UK can play as a country. So So there was this accord that came
[00:04:09] came out of the White House, wasn't wasn't you were notably not one of
[00:04:12] of the signatories as a company of
[00:04:14] of that, but that was all about I'm I'm quoting the President again here, here, tremendous self-regulation.
[00:04:18] self-regulation. It sounds like from from what you're saying to me, without without putting words in your mouth, mouth, you don't think self-regulation
[00:04:22] self-regulation actually goes far far enough. There should be one body
[00:04:25] body somewhere that people are compelled. compelled. Forced what is it legally
[00:04:28] legally forced to put their models models through to test? I would say
[00:04:31] say two things. First, I applaud, applaud, I applaud, we applaud as
[00:04:34] as a company that statement and we're
[00:04:37] we're happy to sign it. It's a good good step. It's a necessary step.
[00:04:41] step. And fundamentally what it does does is it says companies should
[00:04:43] should have internal controls. It It should have internal auditors
[00:04:47] auditors looking at things like AI AI safety. We've been doing that
[00:04:49] that since almost a decade ago, and and there ought to be some external
[00:04:53] external evaluators as well, all
[00:04:55] all to the good. It's necessary.
[00:04:58] necessary. I don't think it's sufficient
[00:05:00] sufficient any longer because the
[00:05:03] the challenge for any self-regulatory self-regulatory regime is if it's
[00:05:06] it's left to the industry alone, alone, frankly, the good companies
[00:05:10] companies will do what you want. want. It's the companies that are
[00:05:13] are not as responsible that you need need to worry about. We should always
[00:05:17] always worry that regulation can
[00:05:18] can become too heavy-handed. It can
[00:05:21] can slow innovation. And I think think President Trump is right to
[00:05:25] to remind us to think about even
[00:05:27] even worry about those concerns.
[00:05:29] concerns. But right now I'd argue
[00:05:32] argue that AI is moving forward faster
[00:05:34] faster than the speed of safety.
[00:05:36] safety. That's not good for the protection
[00:05:39] protection of the public. Australia's Australia's Firmus, a data centre
[00:05:42] centre operator backed by Nvidia, Nvidia, shelved its $5 billion IPO
[00:05:45] IPO on Friday. Its IPO would have have been the second largest new
[00:05:48] new share sale in Australia's history, history, but met lukewarm demand.
[00:05:52] demand. The cancellation is adding adding to growing investor scrutiny
[00:05:54] scrutiny over the AI funding boom, boom, questioning the sustainability
[00:05:58] sustainability of massive investments investments in build or to build build infrastructure well. For more,
[00:06:02] more, we can speak with Tim Waterer, Waterer, chief market analyst at
[00:06:04] at KCM trade. Tim, what do you put put this down to? Is this a firm
[00:06:08] firm is problem or a sign that enthusiasm enthusiasm for the AI trade is perhaps
[00:06:11] perhaps cooling. Good to be with with you, Steve. A little bit of
[00:06:14] of both. I think what it does do do is demonstrate there is a gap
[00:06:18] gap growing between private sector sector AI hype and public appetite,
[00:06:21] appetite, but there is also a firmness firmness issue there as well. And
[00:06:25] And that is the stark, I guess, increase
[00:06:27] increase in valuation between around
[00:06:30] around 10 billion in August versus versus 30 billion in October. So
[00:06:34] So that combined with the current current revenues of around $50 million
[00:06:37] million and only two data centres centres in operation, meant that that the maths really didn't add
[00:06:41] add up for investors to justify that that eye watering valuation level.
[00:06:45] level. Yeah. So how big a shock is
[00:06:46] is this then for the Australian market? It's a blow, no doubt. I
[00:06:50] I mean the a lot of hopes were pinned pinned on this IPO as you mentioned.
[00:06:54] mentioned. But I think, you know know the fact that they couldn't
[00:06:57] couldn't fill the listing at a $11 $11 price or whispers it could move
[00:07:01] move down to maybe $8, $9. So a lot
[00:07:04] lot of red flags there for investors. investors. And of course, there are
[00:07:08] are concerns about the, I guess the
[00:07:10] the how, how this trade will fare fare moving forward. Like you said,
[00:07:14] said, the sustainability of that that AI trade, a lot of execution
[00:07:17] execution risks there given that that they've only completed 2% of of their AI data centre build out.
[00:07:21] out. So that risk factor is what what really spooked investors away
[00:07:24] away and caused the IPO to fall flat. flat. Yeah. There are other big listings
[00:07:27] listings in the pipeline in Australia Australia that might perhaps pause
[00:07:30] pause as a result of this potentially.
[00:07:33] potentially. Yes. I mean, certainly certainly right now anyway, for the
[00:07:36] the short-term Firmus they still still need to raise capital because because that AI race is still ongoing.
[00:07:40] ongoing. They still want to move move ahead with their build out.
[00:07:42] out. They'll be focusing on raising raising capital from the private
[00:07:45] private sector. I think they'll probably probably still come back to the market
[00:07:48] market at some point. The public public market, whether that's in
[00:07:51] in Australia or in the US on the the Nasdaq, that remains to be seen,
[00:07:54] seen, but I think investors will will want to see more of a track track record before going in with
[00:07:58] with any confidence, certainly at at the valuation levels that we saw saw last week. And just very quickly,
[00:08:02] quickly, are you seeing sort of Australia Australia be a bit more sceptical sceptical about the continued AI
[00:08:05] AI build out than, say, the US is? is? I think so there is a school
[00:08:09] school of thought that if this offering offering had have occurred in the
[00:08:12] the US, maybe it would have got across across the line. There may have been
[00:08:16] been less of that scepticism happening. happening. Offsetting that is that
[00:08:19] that there was a lot of appetite appetite in Australia for an IPO
[00:08:22] IPO of sorts, because there's been been a bit thin on the ground in
[00:08:24] in recent times. So but I think on on balance, yeah, it might have had
[00:08:27] had a little bit more success in in the US. Maybe Australian investors
[00:08:30] investors casting a bit of a closer closer eye over the fundamentals
[00:08:33] fundamentals of the company and the the balance sheet. Tim, really good good to get your thoughts as always.
[00:08:37] always. Tim Water, chief market analyst
[00:08:38] analyst at KCM trade. Dozens of states
[00:08:41] states have in the last week backed
[00:08:43] backed New Jersey's legal fight against against a prediction. Markets at
[00:08:46] at the Supreme Court after an earlier earlier court ruling found federal
[00:08:50] federal laws for trading override override local state gambling. The The petition sets the stage for a
[00:08:54] a courtroom battle that will determine determine whether states can regulate
[00:08:56] regulate prediction markets like like Kalshi and Polymarket, which which Americans have increasingly
[00:09:00] increasingly used to bet on everything everything from sports to politics politics to cultural events. I've
[00:09:04] I've been speaking with Gary Gensler,
[00:09:06] Gensler, who chaired the CFTC as
[00:09:09] as well as the SEC. When the law law at the centre of this case was was written, he explained why the
[00:09:13] the case could determine whether whether sports betting remains under
[00:09:15] under state control or falls under under federal regulation. Well, they're
[00:09:19] they're being asked to decide whether
[00:09:22] whether sports betting is still regulated
[00:09:25] regulated at the state level or somehow
[00:09:28] somehow it was through a snippet
[00:09:31] snippet of legal words back in 2010
[00:09:34] 2010 moved to a small federal agency agency called the Commodity Futures
[00:09:38] Futures Trading Commission. It didn't
[00:09:41] didn't happen. That law was passed
[00:09:43] passed in 2010 because of a great
[00:09:45] great housing finance bubble that
[00:09:48] that burst and Congress didn't move move it to the federal level. That's
[00:09:51] That's what they're being asked to to decide. And what would the what
[00:09:55] what would these companies like Kalshi, Kalshi, for example, where do they
[00:09:58] they see what benefits them the most?
[00:10:01] most? Well, Kalshi sees the benefit benefit of keeping it the federal
[00:10:04] federal level. And they filed suit
[00:10:06] suit and they are working hand in
[00:10:09] in glove with the Trump administration,
[00:10:12] administration, CFTC and here's why. why. 39 states in the United States
[00:10:15] States actually allow sports betting, betting, but 11 don't, including
[00:10:19] including California. Kalshi wants wants to be in all of those states.
[00:10:22] states. Most states ban sports betting
[00:10:24] betting for people under 21 Kalshi
[00:10:27] Kalshi they allow it down to 18.
[00:10:29] 18. They don't want to pay the same
[00:10:33] same taxes as sports betting shops shops like FanDuel and DraftKings
[00:10:37] DraftKings do. So there's a lot of
[00:10:39] of economics and they're trying to
[00:10:42] to I'll say sneak a curveball by
[00:10:45] by the player. As Gary Gensler, former former chair of the Commodity Futures
[00:10:49] Futures Trading Commission as well well as the SEC. Thanks for joining
[00:10:52] joining me here on Business Today. Today. Our sport is coming your way
[00:10:55] way next with more on that Manchester
[00:10:58] Manchester City win.
[00:11:10] MUSIC
[00:14:35] I was here at the very first protest. The Cockroach Janta Party
[00:14:38] Party had organised about a month
[00:14:40] month ago. And this is so much bigger.
[00:14:43] bigger. I've been driving. Towards Towards the site of this wildfire, wildfire, but we've just stopped
[00:14:46] stopped at the side of the road here here because of what we saw out the
[00:14:49] the window. This man has been pulled pulled out successfully. It's taken
[00:14:53] taken a mammoth mammoth rescue effort. effort. This morning. You get very
[00:14:56] very little sense of the terrible terrible scenes that were witnessed
[00:14:59] witnessed here last night. There
[00:15:01] There when the story breaks, BBC
[00:15:04] BBC News. Now on BBC News. A round
[00:15:08] round up of the day's sporting action action plus talking points analysis
[00:15:11] analysis and original journalism.
[00:15:14] journalism. BBC Sport.
[00:15:23] Hello, I'm Tanya Arnold with your latest sports news. Manchester
[00:15:26] Manchester City's first game since since being found guilty of breaching
[00:15:30] breaching Premier League financial financial regulations ends in victory
[00:15:32] victory as they outclass Liverpool. Liverpool. Red Bull's Max Verstappen
[00:15:36] Verstappen secures his first win win at the Singapore Grand Prix to
[00:15:39] to take his second victory within
[00:15:42] within a week and Alexander Zverev Zverev hits another milestone in
[00:15:45] in his standout season to notch his
[00:15:47] his 60th tour level victory of 2026.