TRTWORLD — Africa Matters
20260920 063000 UTC
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[00:00:00] transformation that's happening now also offers us a glimpse of where it's
[00:00:04] heading. well
[00:00:05] of that's it for
[00:00:06] of this edition of nexttech from Shanchi province in China. I'm
[00:00:09] Adijana
[00:00:11] of and we'll see you next
[00:00:11] time.
[00:01:47] Joel Flynn has been reporting, correspondent Joel Flynn has been near the front
[00:01:51] lines at this report, correspondent Joel Flin continues TRT World
[00:01:54] special coverage our correspondent of report, what is the
[00:02:07] last few days you've witnessed some concerning acts of
[00:02:10] violence. tell us what you found, the pause before a
[00:02:14] screen, the look that can't be made into
[00:02:16] words.
[00:02:59] hi. You're watching money talks with me, Reagan TV, we're coming
[00:03:02] up on the program, global central banks take different paths to
[00:03:06] of address a fresh energy driven inflation shock with the US
[00:03:09] of Federal Reserve and Bank of Japan hiking rates, while the bank of England
[00:03:13] will steady and we'll explore the mountain fairs, pushing top
[00:03:17] AI industry executives to call for deliberate slowdown in the global
[00:03:21] artificial intelligence arms
[00:03:23] race.
[00:03:32] Well, you may have noticed it's been a busy week for central bankers around the
[00:03:35] world, policy makers are grappling with the new inf inflation
[00:03:38] shock as the one
[00:03:40] of Iran pushes energy prices higher and threatens to keep inflation
[00:03:43] elevated. Washington to Tokyo and London, three major
[00:03:47] central banks have taken different approaches, but all face the same question,
[00:03:51] how far should they go to contain inflation without putting too much
[00:03:55] pressure on their economies. In the US, the federal
[00:03:58] reserve raised. rates by 25 basis points, taking
[00:04:02] of its benchmark
[00:04:03] to range of 3.75 to 4%.
[00:04:07] was the Fed's first hike in more than three years as officials said,
[00:04:11] inflation is proving more persistent than expected. most
[00:04:15] fed policy makers now forecast at least one more quarter
[00:04:18] point hike this year with rates projected to remain
[00:04:22] elevated through 2027. the bank of Japan
[00:04:26] also raised rates by 25
[00:04:28] of basis of points taking its benchmark. to
[00:04:30] 1.25%, the highest level in
[00:04:34] of 31 years. the move marks another step away from decades of ultra
[00:04:38] low rates as policymakers face persistent inflation
[00:04:41] in a weak
[00:04:43] of yen. the currency
[00:04:44] of weakened further against the dollar after the decision as markets
[00:04:47] questioned, how quickly the bank will tighten
[00:04:50] further? and in the UK, the bank of england took
[00:04:54] a different route, keeping its key rate at 3.75%,
[00:04:57] but three policy makers called for a quarter point hike as
[00:05:01] inflation climbed to 3.1% in August to mid higher energy
[00:05:05] prices. The bank expects inflation to rise further in the coming months
[00:05:09] and has left the door open to further tightening.
[00:05:15] All right, from on this, we're joined by Guido Kutsi, he's a professor of
[00:05:19] macroeconomics at the University of St. Gallant in
[00:05:22] Switzerland, professor, it's good to see you, um,
[00:05:26] so good to see you, no one, as you know, likes the our word,
[00:05:29] but could the combination of higher rates
[00:05:32] and an energy shock push major
[00:05:35] economies towards
[00:05:37] recession? That's a possibility,
[00:05:41] even though it's not. necessity uh, because higher
[00:05:44] energy costs reduce the purchasing power of
[00:05:47] consumers, increase firm's costs and
[00:05:51] higher interest rates, we reduce the consumption demand
[00:05:55] and investment demand, so operating on both sides,
[00:05:59] supply and demand on the contraction, this
[00:06:03] may exert some recessionary forces,
[00:06:07] obviously it depends how long this will
[00:06:10] persist, we've seen markets rise
[00:06:14] after horkish messages from central banks, but shouldn't
[00:06:18] higher rates normally be negative for equities
[00:06:22] or is there something else supporting the markets right now?
[00:06:25] that's correct, actually higher interest rates should reduce the
[00:06:29] present discounted value of future corporate profits,
[00:06:33] so this should reduce equity evaluations.
[00:06:36] however, the the
[00:06:39] increase in the interest rate doesn't come as a surprise. it was
[00:06:43] factored in in by the markets, so what really
[00:06:47] matters for the markets at the moment the announcement is
[00:06:51] whether the increase, the race hike is higher than
[00:06:55] they had expected, and if this tightening is going to
[00:06:58] last, so if if central banks are really determined
[00:07:01] to to increase even further in the
[00:07:05] future, this will imply that if this doesn't
[00:07:08] happen um, if they see the bank uh
[00:07:12] central banks tighdening a little accommodating,
[00:07:16] then they will revise expectations more
[00:07:19] optimistically, and the stock valuations will
[00:07:23] not will not go down,
[00:07:27] and currencies can even appreciate. professor, how much the
[00:07:30] recent inflation pressure can um central banks
[00:07:34] actually control when it's been driven by higher energy
[00:07:38] prices? well, central banks
[00:07:42] cannot, cannot control the the source, the the
[00:07:45] reason for the inflation, they cannot produce more
[00:07:49] oil, okay, they can reduce the
[00:07:52] transmission channel from energy prices
[00:07:56] to wages, to prices of different goods,
[00:08:00] so it is the second order effects that they try to
[00:08:04] control, so they if they make sure that
[00:08:08] inflation doesn't become eentrenched in the
[00:08:11] economy uh but this implies that if they tighten too
[00:08:14] much, they may depress the economy too much without achieving the
[00:08:18] result on the supply side, and if they tighten to to
[00:08:22] little they may um facilitate the
[00:08:26] entrenchment of inflation expectations
[00:08:29] and fail to curb demand
[00:08:33] enough, so it is quite difficult actually, it is much easier for
[00:08:36] central banks to react to
[00:08:40] shocks that are or... demand originated, so
[00:08:43] demand shocks rather than supply shocks. before i let you go
[00:08:47] professor, let's just go to Asia for second, so the the yen
[00:08:51] weakened even after the bank of Japan raised its
[00:08:55] rates, what does that tell us about how current markets
[00:08:59] of viewing the boj's policy
[00:09:02] path? well, this is a paradox, of
[00:09:06] course, the yenn depreciating after rate hike
[00:09:09] seems strange, however, if you look at the data more care. we will see
[00:09:13] that in the at the beginning the months of September
[00:09:17] the yen actually appreciated because markets were
[00:09:21] expecting a commitment by the bank of
[00:09:24] Japan of tightening monetary policy,
[00:09:27] then when when the mild increase in interest rate
[00:09:31] seddled for this plus 1.25%
[00:09:35] they realized the tidy was not so high and also after
[00:09:39] weather speech and the the composition. the
[00:09:43] committee details were
[00:09:46] released, the markets realized that the bank of japan is not committed
[00:09:50] to tide and monetary policy, also we can see that at the moment the
[00:09:54] real interest rate with with an
[00:09:58] official rate of 1.5 25% and inflation
[00:10:02] expectations probably anchored around 2%, the real
[00:10:06] interest rate is effectively negative in Japan, so it's a minus
[00:10:08] 0.75%, meaning markets are real
[00:10:13] that the the bank is not seriously attacking
[00:10:16] inflations and and tiding monetary policy, this is why they
[00:10:20] for the future expected probably
[00:10:23] you know
[00:10:24] some some... accommodative stance leading to a
[00:10:28] higher differential with other countries, for example the
[00:10:32] United States and and the depreciation
[00:10:36] the yen, so markets react on on on surprises, on
[00:10:39] expectations, on commitments and and I think this totally
[00:10:43] explains what has happened in Japan. the professor appreciate your time,
[00:10:47] hope we find yourself an affordable weekend, thank you, so you might have heard
[00:10:51] all those die warnings about artificial intelligence, will some industry?
[00:10:55] Insiders say it could take control of much the internet within months, while
[00:10:58] others want it could pose a threat to humanity within a
[00:11:02] decade,
[00:11:03] and as the US and China race for AI dominance, there is a growing pushing Washington to
[00:11:07] put new safeguards in place, but with President Donald Trump
[00:11:11] resisting tighter regulation, how quickly can Congress
[00:11:14] act, and erosion
[00:11:16] reports. Steve Bannon is a
[00:11:20] former member of President Trump's inner circle who went to jail to
[00:11:24] protect him. Bernie Sanders is a U.S. senator who voted to
[00:11:28] convict President Trump, but this week they agree on
[00:11:31] one fear, that AI, left unchecked, will
[00:11:35] race past human intelligence. This
[00:11:38] technology will escape human
[00:11:41] control with potentially
[00:11:44] catastrophic consequences. To slow down the
[00:11:48] pace so that we can understand exactly what's
[00:11:52] going on, at this so-called. pro-human
[00:11:55] assembly on Tuesday, speakers talked about the need for Congress to step
[00:11:59] in. Among the bipartisan ideas being floated a
[00:12:03] so-called AI kill switch bill. The biggest AI
[00:12:07] companies would be required to have the ability to slow AI
[00:12:11] down, cut off user access or stop it all
[00:12:14] together. Another idea embedding independent
[00:12:17] third-party overseers inside AI
[00:12:21] companies. And so we need to be thinking about not just the kill switch right, but
[00:12:25] authority to push that kill switch, once we actually do investigate or
[00:12:28] what is the protocol for investigating once you kill the kill switch, then who has the authority to
[00:12:32] restart it? what does that look like? and we haven't been having those conversations. christina
[00:12:36] podnar advises companies on their AI capabilities. she's
[00:12:40] optimistic that America's closest AI competitor,
[00:12:43] China, is capable of working with the US on
[00:12:47] safety, just as they do aviation. we fly planes
[00:12:51] every day in and out of countries around the globe, and guess what, all the...
[00:12:55] governments to cooperate together, we have international standards around aviation, but it didn't
[00:12:59] happen by circumstance, it happened because lot these entities and governments and private
[00:13:03] sector organizations got together, work together on standards to ensure that safety
[00:13:07] could happen, but President Trump is calling AI fears a
[00:13:10] hoax, a conspiracy to help China win the AI
[00:13:14] race, and that AI safety protocols would stifle
[00:13:18] AI innovation, and there is some skepticism that the sudden
[00:13:21] warnings coming from AI leaders themselves might be a bit
[00:13:25] self-serving, this is where governance needs to come in, and this is why I would say like, hey,
[00:13:29] you're sounding the alarm today, but you didn't actually think about that possibility, six
[00:13:33] months ago,
[00:13:34] so where is all of this coming from? for years, congress was
[00:13:37] helpless trying to make changes to social media to make it less
[00:13:41] dangerous for kids. it took a lawsuit just last month to make
[00:13:45] that happen. so now, with AI, congress is inviting the top
[00:13:49] leaders of AI companies to testify trying to make those
[00:13:52] changes sooner rather than later. Andy
[00:13:56] Rosegen, TRT World. Huawei unveals a new chip
[00:14:00] technology, open AI rules out of public listing and king childs
[00:14:03] ages tech leaders to act before it's too late. as a weekly AI
[00:14:07] roundup, the
[00:14:08] Tulai Calion has nederolo.
[00:14:12] chips capital and cortion here is this week's AI news in free
[00:14:16] moves. herway has announced new chip
[00:14:19] technology to challenge Nvidia highlighting China's Zeroween AI
[00:14:23] gap with the US. "the news comes days before an expected
[00:14:27] meeting between presidents Donald Trump and GG Pink. The
[00:14:31] Chinese Technology company says it will launch two new AI chips
[00:14:35] in 2027 and it could eventually connect as
[00:14:39] many as 1 million processors. Open AI Sam Oltman
[00:14:42] says a public listing is off the table for this year. The
[00:14:46] company is sitting on 122 billion dollars in committed
[00:14:50] capital, but Oldman says with safety concerns mountain
[00:14:54] now. isn't the time to go public. Oltman also says AI
[00:14:58] companies may soon agree to slow down. I think you
[00:15:02] also see
[00:15:05] um a real fear that some these companies or some companies
[00:15:09] developing AI could get too much power and be able to
[00:15:13] sort of exert undo influence on the economy, push a world
[00:15:17] view out on people. And I think the world is right to be afraid of
[00:15:21] this. The AI slow down debate continues in the UK.
[00:15:25] as king charles warns tech
[00:15:27] bosses about the existential dangers of AI, the king meets leaders from
[00:15:31] nvidia, google deep mind, open ai and untrophic in
[00:15:35] Scotland, although the meeting
[00:15:37] is a... expected to produce any binding agreements, the peller
[00:15:41] says the discussions could help shape the future of AI.
[00:15:44] those who have created these technologies are now
[00:15:48] increasingly warning that AI risks developing
[00:15:52] darker capacities, perhaps even to take
[00:15:56] life. surely then we need sufficient
[00:16:00] means of control before it is all too late. and that's all
[00:16:03] from London. thanks for watching, see you next time.
[00:16:09] from this, we are joined by Abdul Wahab, AUP. Abdul Wahab, it's good to see you,
[00:16:13] my friend, how are you doing? Yeah, thanks, how about you? Not
[00:16:16] good, particularly with this AI that's been the top of
[00:16:20] everyone's tongue for the past month, two months
[00:16:23] also, why is this debate over slowing
[00:16:27] AI development, because that's a lot in the news recently, suddenly
[00:16:31] becomes so serious, yeah, Rigan, it's suddenly
[00:16:35] become a really serious as you say, because coming from within
[00:16:38] the AI companies that are creating this
[00:16:42] AI, so recently we have dozens of resignation top
[00:16:45] tier scientist and researchers from both from all actually
[00:16:49] from entropic, open
[00:16:50] ai and google's deep mind, which
[00:16:53] are warning that the because they are
[00:16:57] from within they can see the pace, they can see the trajectory
[00:17:01] of uh development of AI in four or five years and
[00:17:05] they come out say that if we continue with this level, with
[00:17:09] this pace of development, in five years,
[00:17:12] AI is really going to take over um,
[00:17:16] most the things that we have today, probably
[00:17:20] it comes because as we moving from uh generative
[00:17:23] AI chatbots into agentic AI where
[00:17:27] agents are able to uh autonomously to act
[00:17:30] in first in the realm of of internet of
[00:17:34] digital world, but soon why is this a bad thing?
[00:17:38] is it a bad thing? it is, because that's why everybody of
[00:17:42] us has a digital identity with our accounts online,
[00:17:46] and all our electricity, water systems,
[00:17:49] financial system, business, whatever, everything is online,
[00:17:53] so with the development of this agentic AI and
[00:17:57] autonomously function these agents, actually
[00:18:00] they might soon rather than later take over all
[00:18:04] this system, so this is why they have resigned.
[00:18:08] and they want to pay this level of AI, so the
[00:18:12] rules, independent auditors,
[00:18:15] governments and overview from the rivals
[00:18:19] at the same time, so before releasing any new system, any
[00:18:22] new model, they have to go through rigorous and
[00:18:26] restricted control before
[00:18:30] opening
[00:18:31] to to public, so these concerns about specifically about the autonomous AI,
[00:18:35] the ones that can govern itself, we've had open
[00:18:38] AI executive founders, ceos coming on and saying, yes we need
[00:18:42] to slow down the pace of AI development, but these are at
[00:18:46] the top the AI food chain, why can't they just slow down the AI
[00:18:49] themselves? uh, it's difficult, because more than
[00:18:53] two trillion dollars have already been commissioned in AI buildout,
[00:18:57] and about 3 trillion others are already projected to be
[00:19:01] invested by not only these companies, but but by a
[00:19:04] broader like max7 and even ments across the
[00:19:08] world, so this is on one hand, on the other, most
[00:19:12] probably these CEOs, like
[00:19:16] amonde of antropic or sam altman of
[00:19:20] of open AI, so they see this agentic AI
[00:19:23] taking over really fast and it it moving faster than the
[00:19:27] regulations can uh basically follow them, and the
[00:19:30] responsibility that anything could go wrong very
[00:19:34] soon, probably they feel that and they see and they
[00:19:38] want probably to share this responsibility now by calling to pay
[00:19:42] for pacing of AI. do see that the the whole thing is
[00:19:45] leading towards this uh this aspect. presumably
[00:19:49] these AI executives have kill switch, an off button, turn
[00:19:53] the AI off. might be being my naive, but are they calling
[00:19:57] for more global rules around AI, because the us
[00:20:01] can control the US, other countries that are invested in AI are
[00:20:05] completely different story, yeah, they can't control. for those countries, yeah, here
[00:20:09] are three elements are very crucial, first one
[00:20:11] is i just mentioned before, the the huge amount of money spent
[00:20:15] on build out and commissioned already, the second one
[00:20:18] is competition between the the
[00:20:22] rivals, let's say anthropic, open ai, x
[00:20:25] ai, google's deep mind and the rest,
[00:20:29] and the third layer is the china aspect, and just yesterday
[00:20:33] huawei and just said that we are not going to pay down because we
[00:20:37] have strong regulations uh that uh make
[00:20:40] sure that we follow and the we we continue
[00:20:44] to with full speed developing the AI, so this is
[00:20:48] the huge, the biggest challenge of... all how we can make it
[00:20:52] uh come together stays the next week as we know is united nations general assembly will be one
[00:20:56] the key sessions will be on AI
[00:20:58] so but just in the brick of
[00:21:01] that UN general assembly like session
[00:21:05] having all these discrepances and different stances between US and
[00:21:09] China on AI it shows that we are far
[00:21:13] from coming up together in the past we have
[00:21:16] successful actually stories of coming together for example with the
[00:21:20] nuclear proliferation act, so we managed the Soviet
[00:21:24] Union with the U.S.
[00:21:26] or with biological weaponry or chemical
[00:21:29] weapons, the the usage them has been constrained somehow, we have
[00:21:33] good records the countries coming together to solve this
[00:21:37] solution. I do think, if truly sincere, the
[00:21:41] countries can still come up again and at least
[00:21:45] create a framework where safety, security and
[00:21:49] human dignity... is going to be at the forefront, they're going to have to, right? the UN
[00:21:53] is going to have to take control of this. um, we obviously going to need more than five minutes
[00:21:56] to talk about this, but thank you so much. all right, from AI
[00:22:00] to chips. yes, belgium is the world's biggest export
[00:22:04] of frozen french fries, but extreme heat and drought are leaving
[00:22:08] farmers with potatoes that are too small. this
[00:22:11] reports, weather extremes could soon make your fries much harder to come
[00:22:15] by. the damage becomes
[00:22:18] clear the moment. you dig into the soil. potatoes that
[00:22:22] should easily fill a farmer's hand are coming out
[00:22:26] barely the size of ping-pong balls and with the main
[00:22:29] harvest just weeks away, time is running out for
[00:22:33] these crops to catch up. you can
[00:22:37] see the soil is extremely dry, it dries in solid blocks and that's
[00:22:41] how dry it is, and we can barely get the potatoes out the ground, and
[00:22:45] you can see they're really small for this time the year. normally this should be at least
[00:22:49] four times this side. At the moment we can't make fries with these potatoes
[00:22:52] and with the conditions that are being forecast, the way that they're
[00:22:56] predicting, it's not looking good. In eastern Belgium,
[00:23:00] the Komen family farms around 5 square kilometers of
[00:23:03] potatoes every year, but this season has
[00:23:07] brought a difficult combination of weather. Heavy rain and
[00:23:11] storms earlier in the season weakened the soil. Then came
[00:23:15] weeks of extreme heat and drought, leaving the ground
[00:23:19] compacted. and making it harder for potatoes to
[00:23:22] develop, the timing is particularly difficult
[00:23:26] because growers and processors agree volumes and prices
[00:23:30] before the harvest, those contracts still need to be
[00:23:34] honored. normally you always have potatoes like
[00:23:37] this, like this, like this too, that as
[00:23:41] well. this you always have, it depends on how the potatoes
[00:23:45] turborize. when you plant, there are years when there's
[00:23:49] a lot of turbo. ization, which means you have lot of
[00:23:52] potatoes, so they're small, but you have kilos
[00:23:56] them, and when they tuberize less, you get
[00:23:59] more of this size. To cushion the
[00:24:03] blow, farmers are turning to refrigerated stocks saved from
[00:24:07] last year's bumper harvest, but emergency stocks
[00:24:11] will only go so far, and the pressure is
[00:24:15] already being felt further down the
[00:24:17] chain. What's best is a long
[00:24:20] potato and above all a big potato, that's what's best,
[00:24:24] but right now with the seasons varying so widely, it's hard to find
[00:24:28] the perfect potato for fries. The
[00:24:32] flavor may not be lost, but efficiency certainly
[00:24:36] is. Smaller potatoes mean shorter fries
[00:24:39] and higher processing costs across the
[00:24:42] industry, and if the weather keeps working
[00:24:46] against farmers, those iconic long belgian.
[00:24:50] could soon be in much shorter supply around the
[00:24:54] world. Elias
[00:24:57] avju, trt
[00:24:59] world. we take a look at these figs. they may look small, but turkish
[00:25:03] figs have a big footprint in global trade. the warm climate and
[00:25:06] fertile soil of en province provide ideal conditions
[00:25:10] for growing the fruit are helping the country maintain its position as the world's
[00:25:14] leading supply of dried fakes and reports from the heart the
[00:25:18] harvest. On the sun-drenched slopes
[00:25:22] of Eiden, Tukia is growing one the world's most in-demand
[00:25:26] fruits, figs. They are prised for their exceptional
[00:25:30] sweetness, then skin and rich honey-like flavor.
[00:25:33] Much the crop is dried, creating a major industry around the
[00:25:37] fruit that also goes into products like Turkish Delights, jam and
[00:25:41] even oil. We've harvested the figs and
[00:25:45] laid them out for suntring. We brought them under a covered area here and now we
[00:25:49] are sorting them.
[00:26:02] exports quality between. figs, why? the climate, the
[00:26:06] mountain, the region offers some the best conditions
[00:26:09] combined to provide the best quality dried
[00:26:13] figs. tokia exports to more than 100 countries, that
[00:26:17] includes Germany, America and France, and demand is on
[00:26:21] the rise, this is adding to Tukia's local investments and local
[00:26:25] employment opportunities. Turkia currently
[00:26:28] supplies up to 75% of global dried
[00:26:32] January fig and mid May, the country shipped $134
[00:26:36] million worth of dried figs. The new season for exports begins
[00:26:40] in late September. Last year, Tudke exported
[00:26:42] 55,000 tons of dried figs. This year, the number is
[00:26:46] expected to be above $60,000. Idan's
[00:26:50] weather and geographical conditions are different from other
[00:26:54] regions. That's why the Sary Lops Pig, the highest quality
[00:26:58] fig in Turkey and the world is grown right here in
[00:27:01] Eiden. whole families depend on figs, since the
[00:27:05] harvest is once year, everyone relies on this income. people cover all
[00:27:08] their expenses with these figs, for their children, weddings,
[00:27:12] every need. that's why they're so beneficial for our
[00:27:16] region. farmers in iden are
[00:27:19] working hard to pick these figs one a time, hoping to
[00:27:23] fill every rack. with the summer season almost over, these
[00:27:27] next batches will help keep farms like these running through the winter
[00:27:31] months.
[00:27:37] well that's all from money talks for now from me and the whole team here
[00:27:40] and
[00:29:22] This is a drill. I repeat, this is a
[00:29:25] drill.
[00:29:30] So sometimes hiding might be the best choice. "Sometimes running might be the best
[00:29:34] choice, sometimes you're going to have no choice but to defend yourself. I don't
[00:29:38] feel safe at school, nobody feel safe. I
[00:29:41] think that some the teachers should have pistol or something hidden
[00:29:45] in the classroom to protect the students.
[00:29:48] I don't want to have to carry a gun, I don't want to have to have a
[00:29:52] bulletproof vest, but the times in which we live are
[00:29:56] dictating that. Storyteller, the bad guy
[00:30:00] on TRT World."
[00:30:16] Iran security chief says the US has been given seven
[00:30:20] conditions for restarting talks, as Donald Trump
[00:30:23] considers his next move in the standoff. Well,
[00:30:27] he's due to meet golf leaders in New York on the sidelines the UN
[00:30:31] General Assembly. shipping disruption goes on in the street of
[00:30:34] Hamos. Hello and welcome to TRT World Life from
[00:30:38] Istanbul. You're with me Katie Pilby. Also ahead on the program for you.
[00:30:42] A refinery near Moscow ablazed after hundreds of
[00:30:46] Ukrainian drones lotched at the Russian capital on the
[00:30:50] final day of parliamentary elections. And weeks after a
[00:30:54] far right party scored its first regional election victory since World
[00:30:57] War Two. German voters are going to the polls in
[00:31:00] Berlin.