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00:00:03Live from Singapore now on BBC
00:00:07News, Business Today. AI linked stocks
00:00:14stocks are plunging worldwide after after the heads of major AI companies
00:00:18companies warned the technology is is developing too quickly, raising
00:00:20raising fresh concerns about the the future of the industry. Retail
00:00:24Retail sales slow in the world's world's second largest economy as
00:00:27as efforts to boost domestic consumption consumption fall short in China and
00:00:31and Tesla gears up to unveil its its long delayed second generation
00:00:34generation Roadster nearly nine years years after the original prototype
00:00:37prototype was revealed. Hello and
00:00:45and welcome to Business Today with with me Steve Lai AI linked stocks
00:00:49stocks are under pressure globally globally after the bosses of some some of the biggest AI companies
00:00:52companies called for a slower pace pace of development, warning of potentially
00:00:55potentially serious risks from the the technology. Amongst the biggest
00:00:58biggest losers were Nvidia and Micron, Micron, which fell more than three
00:01:02three and 5%, respectively. The moves moves reflect concerns about what
00:01:05what a slowdown could mean for the
00:01:07the huge investment and spending spending boom behind artificial intelligence.
00:01:10intelligence. I spoke to Jason Oxman, Oxman, a president and CEO of the
00:01:14the Information Technology Industry Industry Council. He says the selloff
00:01:16selloff reflects uncertainty over over AI safety, but insists the technology
00:01:20technology remains a major driver
00:01:21driver of global growth. Markets Markets don't like uncertainty. I
00:01:25I think that's the message we got got today and there was a lot of
00:01:29of discussion over the weekend. As
00:01:30As you noted from a lot of AI leaders
00:01:33leaders about the need for policymakers policymakers to consider guardrails
00:01:36guardrails for safety, which is an an important discussion to have.
00:01:39have. We saw a lot of uncertainty uncertainty churning the market today,
00:01:41today, although I would note a lot lot of tech names were up today.
00:01:45today. And certainly as you look look ahead to futures in the US markets
00:01:48markets for tomorrow, they're already already pointing to recovery. But
00:01:50But I think the bottom line at a
00:01:53a macro level is that AI is an economic
00:01:55economic driver of growth around around the world. The AI powered
00:01:59powered innovations are important important to the global economy,
00:02:02economy, and what we've seen is sparking sparking a discussion about making
00:02:06making sure that the pace of AI innovation
00:02:08innovation and the pace of AI safety safety proceed in parallel with one
00:02:12one another. And I think that's an an important discussion for policymakers policymakers to have going forward.
00:02:16forward. Yeah. And speaking of those those discussions, what was the reaction
00:02:19reaction inside the industry then then to the weekend statements from
00:02:22from Altman Amodei and Musk? Yeah,
00:02:24Yeah, I think one of the most interesting interesting things about these weekend
00:02:28weekend statements is you very rarely
00:02:30rarely see all of those very prominent prominent innovators running companies
00:02:34companies that are competing against against each other in the marketplace
00:02:37marketplace agree with one another. another. And they did very quickly
00:02:40quickly and very clearly. And the the agreement that they had with
00:02:43with one another was that this discussion discussion of pacing AI innovation
00:02:47innovation is an important one. Not Not calling for a halt to AI innovation
00:02:50innovation because of course, that that that would be enormously detrimental
00:02:54detrimental to society as a whole. whole. AI tools are very important,
00:02:57important, but they all did agree agree that policymakers need to make
00:03:01make some decisions here in the United
00:03:04United States, where I sit. Very Very important for the US Congress
00:03:06Congress to move forward with establishing establishing a federal framework,
00:03:10framework, but equally important important to that is no one country
00:03:13country can do this alone. We need need to see the US government talking
00:03:16talking to other governments around around the world. We need to see
00:03:19see governments agreeing on common common standards to make sure that
00:03:23that we have a global approach to to AI safety. These are valuable valuable tools. We want them deployed.
00:03:26deployed. The innovation they bring bring is enormously important and
00:03:29and valuable. But those safety tools
00:03:31tools that we need to develop in
00:03:34in conjunction with those innovations innovations need to be done with
00:03:36with a Global Eye toward a common common approach. Retail sales in
00:03:40in China slowed more than expected expected in August, while investment
00:03:43investment also fell at its fastest fastest pace this year, adding more
00:03:46more pressure on Beijing to support support the economy. Retail sales
00:03:50sales rose just 0.4% from a year year earlier, while fixed asset investment
00:03:54investment fell 7.2% in the first first eight months. Policymakers
00:03:58Policymakers have so far resisted resisted more aggressive stimulus,
00:04:00stimulus, relying instead on incremental incremental measures to shore up
00:04:03up growth. But domestic demand is is clearly still not picking up.
00:04:07up. Let's get more on this with Han Han Lin, managing director and China
00:04:10China country director at the Asia Asia Group. Really good to get your
00:04:13your thoughts. Which numbers are are most revealing about the state state of China's economy then? What's
00:04:17What's got your attention? Well,
00:04:19Well, I think what the clearest message
00:04:21message from the China's latest economic economic data is that China's economy
00:04:24economy is running on two very different different tracks. You've got the
00:04:28the factories and exports remaining remaining remarkably strong. But
00:04:31But the households, property developers developers and private businesses
00:04:34businesses remain cautious. So in in other words, China can still produce
00:04:38produce and sell to the world. But But the harder challenge is persuading
00:04:41persuading the Chinese consumers consumers and companies to borrow,
00:04:44borrow, invest and especially to to spend at home. Yeah. And why are
00:04:47are those concerns so prevalent? prevalent? This is something that's
00:04:50that's dogged sort of low consumers consumers in China for quite a while.
00:04:54while. I think in large part you've
00:04:57you've got a crisis of confidence. confidence. So as you take a look
00:05:01look at employment figures, incomes,
00:05:03incomes, the job opportunities, the
00:05:05the property decline, these are all all weighing on the consumer confidence.
00:05:08confidence. And if there's a sense
00:05:10sense that the future is less predictable, predictable, then instead of investing
00:05:14investing or spending, they're actually actually choosing to save more. Yeah.
00:05:17Yeah. So what will the government government be most concerned about
00:05:20about then? The fact that consumer
00:05:22consumer confidence is so low? Well, Well, it looks like what Beijing
00:05:26Beijing will likely do is they'll they'll try to accelerate some fiscal
00:05:29fiscal spending, maybe some infrastructure infrastructure financing, and maybe
00:05:33maybe a bit of consumer subsidies subsidies and targeted property support.
00:05:36support. But officials really remain remain reluctant to launch a Western
00:05:39Western style stimulus check because
00:05:42because the policy priority is stabilisation. stabilisation. Without re-inflating
00:05:45re-inflating debt. So that may prevent prevent a sharp downturn, but it's
00:05:48it's unlikely to produce a dramatic dramatic consumer led rebound. Yeah.
00:05:51Yeah. So what would move the needle needle then? I suppose it seems like like you're saying that they don't
00:05:55don't really want to push this too too hard. They're almost they're
00:05:58they're OK with how things are going.
00:06:01going. It looks like what might be
00:06:02be a key driver is the property sector.
00:06:05sector. So what we do see right now
00:06:07now is that the decline of property
00:06:10property sales and prices, the decline decline is slowing. But that's not not the same as a recovery itself.
00:06:14itself. So as we look at the new
00:06:16new home sales, prices fall by 0.1%
00:06:190.1% and then 3% from a year earlier. earlier. You can see that the buyers
00:06:23buyers remain cautious. Resale prices prices are under pressure and property
00:06:26property still weighs heavily on on household wealth. So it looks
00:06:29looks like Beijing has put a floor floor beneath the market, but that
00:06:33that has not yet restored the confidence. confidence. Hanlon always good to
00:06:36to get your thoughts there. Managing Managing director and China country
00:06:38country director at the Asia Group.
00:06:41Group. Tesla will unveil its long long delayed second generation Roadster.
00:06:45Roadster. It's a high performance performance electric sports car on
00:06:48on October the 1st. The new version version could feature SpaceX developed
00:06:51developed cold gas thrusters to boost boost acceleration, braking and cornering.
00:06:55cornering. Tesla first announced announced the car back in 2017, with
00:06:58with deliveries originally promised promised for 2020. Well, for more,
00:07:01more, we can speak with Karl Brauer,
00:07:04Brauer, executive analyst@iseecars.com. analyst@iseecars.com. Karl, this this will be quite a big step for
00:07:07for Tesla. Ten years in the making.
00:07:10making. Big and maybe a little overdue. overdue. But yeah, it's time to see
00:07:14see this Roadster we've been hearing hearing about for almost a decade.
00:07:17decade. And to me, it's interesting interesting because the original original figures that he was claiming
00:07:21claiming for 2020 would have been
00:07:22been very impressive for 2020. We're
00:07:25We're six years later than when the the car was supposed to hit the market. market. And I think he feels pressure
00:07:29pressure to have it be that much much more impressive given the delay.
00:07:32delay. And it's kind of a race. You You know, the longer we wait, the
00:07:35the better the cars got to be. So So when are we going to finally cross cross over and see it? Yeah, it's
00:07:39it's adding to the anticipation I I guess, and also adding to the expectation, expectation, as you rightly said,
00:07:43said, is there a big market for EV EV sports cars that this vehicle
00:07:46vehicle is coming into? You know,
00:07:49know, like all sports cars, it's it's always a relatively limited limited market, but that's kind of
00:07:53of the whole point. I think if you've you've got that kind of technology,
00:07:57technology, whether it's really fast fast acceleration or, you know, jets
00:08:00jets that that are never been seen seen before on a production vehicle
00:08:03vehicle and you make the cost really really high and the production pretty
00:08:06pretty low. That's kind of the whole whole point. The halo effect, small
00:08:10small volume, but very impressive impressive vehicle that turns a lot
00:08:13lot of heads and gets a lot of news news and, you know, headlines wherever
00:08:16wherever it goes. So I think Tesla Tesla would benefit if they could
00:08:19could come out with something like like we're hearing rumblings. Yeah. Yeah. And just to tell us a bit about
00:08:23about what we could expect then October October 1st isn't too far away. How
00:08:26How soon before people can get behind behind the wheel? Well, that's the
00:08:29the interesting thing is, is I don't don't think there's still a production
00:08:32production display. It's a kind of of a technology tease. So I'm assuming
00:08:36assuming if he's showing us the car, car, it's got to be relatively close close because you don't want to change
00:08:40change it a bunch from the time you you show it like this to when it
00:08:42it goes on sale. But if this is just just a display of that jet technology,
00:08:46technology, it could still be a ways ways out before we see and feel like
00:08:50like a production version is around around the corner. I don't feel like like we're there yet even now. Yeah,
00:08:53Yeah, it seems like that would be be the logical assumption, but that that was probably what was thought
00:08:57thought in 2017 as well. And we're we're still haven't seen it. So I
00:09:00I guess we might have to just sort sort of play this one by ear and
00:09:03and see how we go. What else should should we know about this launch launch then, or about Tesla in particular
00:09:07particular when it comes to its vehicles? vehicles? The Cybertruck sort of
00:09:10of is it mixed reflection, mixed mixed reactions? Is that how you you describe it after it's been released
00:09:14released for so long now? Yeah, I I mean, and I think that's the other
00:09:17other thing is that Tesla could really really use a hit because as you say, say, Steve, the Cybertruck has been
00:09:21been out for a while. It really hasn't hasn't been very well received on
00:09:24on any metric that you would use use to measure success. We've got
00:09:28got the Cybercab, of course, flirting flirting with, you know, widespread
00:09:31widespread use, but still not there there either. I think if we could
00:09:35could see a roadster that's not supposed supposed to pay any bills because because they just won't sell enough.
00:09:39enough. But is this kind of proof proof that when it comes to crazy
00:09:42crazy expectations and technology, technology, Elon can still execute, execute, it'd be a good boost for
00:09:46for the company. All right, Carl, Carl, we'll leave it there. Thanks Thanks as always for talking to me
00:09:49me about all things automobiles. automobiles. Karl Brauer, Executive
00:09:53Executive analyst@iseecars.com. Let's Let's take a look at some other stories
00:09:55stories making the news. Waymo is is expanding its robotaxi service
00:09:58service in Las Vegas, its 15th commercial commercial market, and the Alphabet-owned
00:10:02Alphabet-owned company is starting starting with dozens of vehicles vehicles and plans to scale over
00:10:05over time. The move comes as autonomous autonomous ride hailing competition
00:10:08competition intensifies, with Tesla Tesla and Zoox also seeking to expand
00:10:11expand their services in the city
00:10:13city and across the United States.
00:10:15States. Apple has released its redesigned redesigned Siri AI assistant ahead
00:10:19ahead of the latest iPhones hitting hitting stores this week. The new
00:10:22new Siri is launching in beta, with with users able to search personal
00:10:26personal data like messages and calendars, calendars, ask questions and have
00:10:30have more conversational exchanges. exchanges. Apple says some advanced
00:10:33advanced AI features will eventually
00:10:34eventually require a fee. The ten
00:10:37ten year US Treasury yield has hit
00:10:39hit 5% for the first time since 2023,
00:10:432023, as surging oil prices, fuel fuel inflation fears and driver global
00:10:46global bond sell off. The closely closely watched yield is a benchmark
00:10:49benchmark for borrowing costs worldwide, worldwide, meaning higher rates could
00:10:52could put further pressure on businesses, businesses, households and financial
00:10:55financial markets. Thanks for joining joining me on this edition of Business
00:10:58Business Today. See you soon. MUSIC
00:11:09MUSIC
00:14:30There is nothing like driving into a moving story and not knowing
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00:15:03a round up of the day's sporting sporting action plus talking points
00:15:06points analysis and original journalism.
00:15:10journalism. BBC Sport. Hello, I'm
00:15:19I'm Tanya Arnold. Here are the top top sports stories. Leeds United
00:15:22United are up to third in the Premier Premier League after hammering Newcastle.
00:15:26Newcastle. Brendon McCullum wants wants Kevin Pietersen to challenge challenge him as the former England
00:15:30England batter joins the coaching
00:15:32coaching set up. And Madrid's Madring
00:15:34Madring circuit will be changed after after criticism from Formula One
00:15:38One drivers and fans.
00:15:54Leeds United moved up to third in the Premier League with a thumping
00:15:58thumping 4-1 win over Newcastle