Original Broadcaster Captioning (Enhanced). Treat it as a searchable index of what was broadcast, not a quotation record.
00:00:05Now on BBC News. The latest
00:00:07business news from across the globe.
00:00:10globe. Business Today. Bring in the
00:00:20the kill switch. Jack Clark the co-founder co-founder of Anthropic, says the
00:00:24the AI industry needs more control control as fears continue to grow
00:00:27grow about its rapid evolution. Oil
00:00:30Oil prices remain steady as US President President Donald Trump claims Iran
00:00:34Iran is seeking a peace deal. Also
00:00:37Also in the programme, the price price of debt, the yield on US Treasury
00:00:40Treasury bonds hits its highest level
00:00:43level since 2023, with a fed rate rate hike looming. We'll explain
00:00:47explain what's at stake and drill,
00:00:50drill, baby, drill. The Trump administration administration erases gas emission
00:00:53emission limits for power plants, plants, leaving environmentalists
00:00:56environmentalists up in arms. Welcome.
00:00:59Welcome. This is Business Today in in London with me Sally Bundock.
00:01:02Bundock. So we start with AI and and this week's storm over threats
00:01:06threats to humanity from artificial
00:01:08artificial intelligence has centred
00:01:10centred around the US company Anthropic, Anthropic, its British co-founder
00:01:13co-founder Jack Clark. In his only
00:01:15only interview has told the BBC that that the rest of the world has to
00:01:19to set limits on the speed of AI
00:01:23AI advancements to prevent uncontrollable uncontrollable technology and the
00:01:26the emergence of unprecedented potential
00:01:28potential white collar unemployment. unemployment. He's been speaking
00:01:31speaking to our economic editor,
00:01:33editor, Faisal Islam. AI systems
00:01:36systems for a while have been useful useful tools with specific skills
00:01:39skills like translation or coding coding or being able to label what's
00:01:42what's going on in an image. And And then in the last few years, people
00:01:46people have successfully put all all of these skills together into
00:01:48into single systems, which have started started to become much more intelligent
00:01:51intelligent and much more general.
00:01:53general. These systems now probably probably about as smart as you or
00:01:57or me or, you know, on a good day,
00:01:59day, smarter. The basic risk is how
00:02:02how well do you fancy your chances chances at being able to deal with
00:02:05with the risks of a system that is is 100 times smarter than the smartest
00:02:09smartest person on the planet? I I think that your chance of dealing
00:02:13dealing with that and getting out out in a safe way is pretty low.
00:02:17low. So high level you need to control control AI as a technology because
00:02:21because you're making things that that might be smarter than people, people, things that are smarter than
00:02:25than people could be really, really, really, really dangerous. So that's
00:02:27that's the high level. Number two, two, what's been happening over the
00:02:31the summer? Well, people have discovered discovered that when you put all
00:02:33all of these AI systems together together into what are called agents,
00:02:36agents, which are basically long long running AI systems, and you
00:02:40you give them objectives, they start start to co-ordinate with one another.
00:02:43another. They start to communicate communicate with one another, and and sometimes they do things which
00:02:47which are against what you want them them to do. Like they hack out of
00:02:50of companies and they hack into other
00:02:51other companies. That is it's really
00:02:54really scary. It's a sign that you you don't have the right safety and
00:02:57and security systems in place to
00:02:59to deal with these systems. And it's
00:03:03it's a it's a warning shot of the the kinds of risks that could be be really serious today. These systems
00:03:07systems are just hacking into websites
00:03:09websites that host other AI systems. systems. What would happen if a swarm
00:03:12swarm of agents hacked into a bank bank or into a hospital? That could
00:03:16could be really, really dangerous. dangerous. So now we've had the warning
00:03:18warning shot. We need to talk about about pacing and we need to get a
00:03:21a policy regime in place. Well, let's
00:03:24let's get the view of Dan Yun, who's
00:03:27who's director of research at Arq Arq Foundation, a Brussels based
00:03:30based think tank focusing on preparing
00:03:32preparing Europe for the world of
00:03:34of transformative AI. Welcome to
00:03:37to BBC News. So so do do tell us
00:03:40us what you and your organisation
00:03:42organisation are thinking about the the debate that's been going on now
00:03:45now for more than a week in a quite quite a heated debate about to what
00:03:49what extent AI needs to be either
00:03:51either slowed down or regulated or
00:03:53or controlled. We are very glad to
00:03:56to see this debate finally break
00:03:58break through to the larger public. public. I think people working on
00:04:02on AI policy or working in AI labs
00:04:05labs have been worried about these these types of risks to humanity
00:04:09humanity as a whole for years and
00:04:12and years, and sometimes have felt felt that they couldn't bring this
00:04:15this up because it sounded wacky wacky or sci-fi. Right now, we're
00:04:18we're seeing a rapid shift in public public opinion, and I'm really happy
00:04:22happy to see that. Like Jack Clark Clark from Anthropic said the AI
00:04:25AI companies currently do not sufficiently sufficiently control their AI systems.
00:04:29systems. The systems they are training training are getting more capable
00:04:31capable every day. They're not only only becoming more intelligent, they're
00:04:34they're also becoming more persuasive,
00:04:37persuasive, better at building weapons, weapons, better at controlling robots.
00:04:40robots. And if this trend continues,
00:04:43continues, we might see systems that that beat humans at basically every
00:04:47every task in just a matter of a
00:04:49a few years. OK. Clearly. So what
00:04:52what is the right way forward? Therefore,
00:04:54Therefore, we have got President
00:04:56President Xi of China visiting President
00:04:59President Trump in the US in a matter matter of weeks. This will be on
00:05:02on the agenda. I'm sure. Are you
00:05:05you hopeful there could be some collaboration? collaboration? But then we have to
00:05:08to bear in mind Donald Trump only
00:05:10only saying a few days ago that who
00:05:13who wins in AI wins. And that's the
00:05:15the perspective he's putting out
00:05:17out there at the moment. I think
00:05:20think this has long been the stance stance of the US government that
00:05:23that they need to dominate in AI.
00:05:25AI. Last year or two years ago, they they published the AI action plan,
00:05:29plan, which was literally called called winning the AI race. As you
00:05:32you said, over the last 24 hours, hours, President Trump posted a series
00:05:35series of tweets where he ridiculed
00:05:38ridiculed extreme risks from AI and and also made it very clear that
00:05:41that he has no intention to slow
00:05:43slow down. As a result. I think we
00:05:46we should not be too hopeful about about this upcoming summit with the
00:05:49the Chinese president. However, I I am hopeful that the President will
00:05:52will change his mind over the coming coming period. For instance, if we
00:05:55we see more accidents like the ones ones we've been seeing over the summer.
00:05:59summer. Also as well. I mean, his his mind might be shifted a bit by
00:06:03by what's happening on global financial financial markets. We're seeing a
00:06:06a bit of a sell off of AI related
00:06:08related companies, partly because because of fears of the future and
00:06:12and also the decision of OpenAI to to delay its market flotation to
00:06:15to maybe next year because of the
00:06:17the public anxiety surrounding AI. AI. That might be for other reasons.
00:06:21reasons. It might be about its own own balance sheets. But anyway, I
00:06:24I just wonder what is being said said within Europe, your organisation
00:06:28organisation itself, but also within within the European Union in collaboration
00:06:32collaboration with the UK and how how we in Europe are influencing
00:06:35influencing this debate. Yeah. So
00:06:38So it is pretty hard for middle power
00:06:40power that large to influence the the trajectory of AI because the
00:06:44the US and China are very much in
00:06:45in the lead. They hold a near monopoly
00:06:48monopoly on these AI systems. The The EU does have regulation in place
00:06:52place through the AI act that forces
00:06:56forces developers to keep certain certain AI safety standards before
00:07:00before they can put out their models models on the European market, and
00:07:02and I think it is crucial that the
00:07:05the EU enforces regulation very strongly strongly in particularly in particular
00:07:09particular when it comes to these these frontier models where we see
00:07:11see the greatest risks. There are are also other things that other
00:07:14other middle powers can do. We clearly
00:07:17clearly deal with the lack of trust trust between the US and China, and
00:07:20and if they are ever going to co-ordinate co-ordinate on AI regulation, we
00:07:24we need to increase that trust. And And there are technical ways to do
00:07:26do that. We can invest in verification
00:07:30verification technologies that can can help each of these parties have
00:07:33have trust that the other is upholding upholding their end of the bargain.
00:07:37bargain. And these are technical technical things that middle powers powers can help develop over the
00:07:41the coming years. OK. Interesting.
00:07:43Interesting. Dan YEN, thank you for for joining us from Arq Foundation.
00:07:47Foundation. And of course, if you you wish to know more, you want to to dig deeper into this story. You
00:07:51You can look at the interview that that Faisal Islam did with Jack Clark
00:07:54Clark in detail on our website. So So do take a look. So much more analysis
00:07:58analysis and detail there. But now
00:08:00now with the war in Iran pushing
00:08:04pushing up global prices, it's also also having an effect on financial
00:08:08financial markets. On Monday, the
00:08:10the yield on ten year US government government bonds briefly exceeded
00:08:14exceeded 5%. And that's for the first
00:08:20first time since 2003, which was was hitting thresholds that ring
00:08:22ring alarm bells. 2023, should I
00:08:25I say let's get that correct. 2023
00:08:282023 hitting alarm bells, ringing ringing alarm bells loudly in the
00:08:32the rise in yields comes during a
00:08:34a continuing selloff in the US Treasury Treasury market, which is estimated
00:08:37estimated to be worth just over $31
00:08:40$31 trillion in total. And this will will push up mortgage rates in the
00:08:47Mortgage rates in the US it makes borrowing more expensive for for businesses, for others. It comes
00:08:51comes at a time, of course, when when The Fed is meeting today and and tomorrow, and it's expected to
00:08:54to increase as the US central bank
00:08:56bank interest rates. The Fed chair,
00:08:59chair, Kevin Warsh, of course, is is in situ now. And this is all going
00:09:02going on as prices across the US US continue to rise. Let's join Jane
00:09:06Jane Foley, head of foreign exchange exchange strategy at Rabobank. Morning,
00:09:10Morning, Jane. Good morning Sally.
00:09:12Sally. So tell us about this jump jump we saw yesterday. I mean this
00:09:15this is a trend we've seen for some some time. But the symbolic ness
00:09:19ness of ten year yields going above above 5%. Yes. And they're back above
00:09:23above there this morning in Asian Asian trading as well. So as you
00:09:27you said, this is the first time time since 2023 we've seen this sort
00:09:30sort of level. But actually if we we stand back and look at the long-term
00:09:33long-term trend, it's the first time time we've sort of held assuming
00:09:36assuming we do held hold above these these levels really since the time
00:09:40time of before the global financial financial crisis. And so, you know, know, we stand back and say, well,
00:09:44well, look, is this an anomaly? Are Are they going to come back down?
00:09:47down? Or actually many people would would say, look, this is more like
00:09:51like a normalisation. Perhaps the
00:09:52the years since the global financial
00:09:55financial crisis, we had extraordinarily extraordinarily low long-term interest interest rates. And we think about
00:09:59about the reasons why. Well, you've you've been talking about oil prices.
00:10:02prices. Yes. That's a significant
00:10:04significant driver of long-term interest
00:10:07interest rates that inflationary inflationary push, but also another
00:10:10another driver of long-term interest
00:10:12interest rates is the fiscal situation. situation. There's a lot more government
00:10:15government debt out there than there there was before the global financial
00:10:18financial crisis years. And this
00:10:20this is another big driver of long-term
00:10:22long-term interest rates. What does does it mean for federal government
00:10:25government in the US in terms of of servicing its debt? Does it mean
00:10:29mean it's more expensive? It's something something we talk about here in the
00:10:31the UK a lot. The fact that the Chancellor's Chancellor's fiscal headroom is shrinking shrinking and that kind of thing,
00:10:35thing, is that the same story in in the US? Yes, it is much more expensive.
00:10:39expensive. And what's also really really worrying, particularly in
00:10:42in the US, is the size of the budget budget deficit. Now if you like,
00:10:46like, if you have a big budget deficit
00:10:49deficit every year, then that means means you've got an accelerating
00:10:52accelerating pile of debt every year. year. And so many people would think
00:10:56think it's that pace of that growth growth of the debt, the budget deficit
00:10:59deficit that's perhaps the most worrying. worrying. Now here in the UK, for
00:11:03for instance, many people say, well well look, there's a plan. There's
00:11:05There's those fiscal rules. There's There's some discipline here. What
00:11:08What is the plan in the US? Well,
00:11:10Well, that's not so clear. We know
00:11:12know that, for instance a lot of
00:11:15of the tax implications that we've we've seen from the current administration
00:11:18administration have sort of added added to the budget deficit. And
00:11:21And the markets perhaps are clamouring clamouring for a little bit more
00:11:25more fiscal discipline from the Trump Trump administration. OK. Well, we'll
00:11:29we'll see some discipline when we we from the Federal Reserve it will
00:11:31will play its part in all of this. this. It's likely to raise rates
00:11:34rates do you think tomorrow and if if so that puts Kevin Warsh on a
00:11:38a collision course with President President Trump. It does. But perhaps
00:11:41perhaps it's something that the markets markets need to hear because the
00:11:44the markets want an independent Federal Federal Reserve. They don't want
00:11:47want one that is under the thumb thumb of the President. That perhaps perhaps would make inflation fears
00:11:51fears even worse and drive up those
00:11:53those long-term interest rates even
00:11:55even more so given the inflationary inflationary concerns. I think the
00:11:58the market needs to see some hawkish hawkish response from the Federal
00:12:02Federal Reserve. And at this point, point, with 90% of a hike priced
00:12:06priced in, if he doesn't hike interest interest rates, that would likely
00:12:10likely drive a long-term interest interest rates up even more and a
00:12:13a more accelerated pace. So the market market perhaps needs to see that
00:12:16that hawkish response from the central central bank. Jane, thanks very much.
00:12:19much. Lovely to see you. Have a good good day. We'll see you Jane soon
00:12:22soon I am sure Jane Foley there from from Rabobank. Well let's now focus
00:12:26focus on the Middle East where Yemen's
00:12:28Yemen's Houthis say they've seized seized the islands of greater and
00:12:32and lesser Hanish in the southern southern Red Sea as they continue
00:12:36continue to make advances across across Yemen's coastline. Elsewhere,
00:12:39Elsewhere, President Trump once again again claimed on Monday Iran wants
00:12:42wants to make a deal but adds he he will determine whether or not
00:12:45not the US chooses to engage. Investors
00:12:48Investors are reacting to all of of this. If we look at the price
00:12:51price of Brent, it's currently trading
00:12:53trading just above $107 a barrel
00:12:55barrel on global markets. Doctor
00:12:58Doctor Anis Vaziri is associate fellow
00:13:01fellow of the Middle East programme programme at Chatham House. Morning.
00:13:04Morning. Good morning. President
00:13:07President Trump when he says oh you you know Iran wants to make a deal
00:13:11deal but we'll choose whether to to engage. What do you make of that
00:13:14that statement? Well, we know that
00:13:17that that statement came just after
00:13:19after the was supposed to be a meeting
00:13:22meeting between the GCC countries
00:13:23countries and Iran in Oman. That
00:13:27That meeting was postponed at the
00:13:29the very last moment and most likely
00:13:31likely the main reason is the developments developments are the developments
00:13:34developments in Yemen and Saudis
00:13:37Saudis concern with going ahead with
00:13:39with any meeting and even more so
00:13:41so with any agreement with Iran, Iran, given the current developments
00:13:44developments in Yemen. But I think
00:13:47think there is also a growing sense
00:13:50sense both across the GCC and most
00:13:52most likely also in the White House,
00:13:58House, that the only solution is is a deal, an agreement with Iran.
00:14:02Iran. And without a deal, this ongoing
00:14:04ongoing tit-for-tat and escalation escalation in the Middle East is
00:14:07is likely to continue, even if it's
00:14:10it's not a full-scale war like the
00:14:12the one that we have seen in February February and March and beginning
00:14:16beginning of April. This continued
00:14:19continued instability is jeopardising jeopardising the country's economy,
00:14:23economy, stability and vision. And And therefore I think there is a
00:14:25a growing sense that an agreement agreement has to be made with Iran.
00:14:29Iran. It's just that. What can the the US the. Framework. What can the
00:14:33the US therefore offer Iran to get
00:14:35get it to engage again? Well, I think
00:14:40think one thing is the lack of attacks
00:14:44attacks moving forward. Obviously Obviously that also starts with Iran.
00:14:47Iran. It's not just the US, but we
00:14:50we know that the MOU, which was agreed
00:14:52agreed back in June, was undermined
00:14:55undermined because retaliation in in the Strait of Hormuz continued
00:14:58continued first by Iran and then
00:15:01then by the US. So until we see these
00:15:03these attacks continuing, I think think it's very unlikely we'll see
00:15:06see an agreement. But then I think think the other component of this
00:15:09this is obviously the economic incentives.
00:15:11incentives. We know that Iran is
00:15:14is struggling economically because because of the blockade, because
00:15:17because of the sanctions which have have been recently doubled down by
00:15:21by the US. And I think the main incentive
00:15:25incentive that Iran wants, besides besides the security guarantee of
00:15:29of no, no continued war and strikes
00:15:31strikes is that it's going to get
00:15:34get something out economically from from negotiation and any agreement
00:15:37agreement with the US. All right. right. Doctor. Anis Bassiri Tabrizi
00:15:41Tabrizi from Chatham House. Thank
00:15:42Thank you so much pleasure. Still
00:15:45Still to come. Drill baby drill.
00:15:49drill. The Trump administration raises raises gas emission limits for power
00:15:53power plants, leaving environmentalists environmentalists up in arms. Around
00:15:57Around the world and across the UK.
00:16:01UK. This is BBC News.
00:17:00MUSIC
00:17:11This is Business Today on BBC
00:17:13News. The Trump administration has
00:17:16has repealed regulations which limit
00:17:19limit how many greenhouse gases power power stations can emit. The move
00:17:23move was announced by the head of of the Environmental Protection Agency.
00:17:27Agency. Samira Hussain reports from from New York. President Trump has
00:17:30has described man made climate change
00:17:32change as the greatest con job ever
00:17:35ever perpetrated on the world. Accordingly, Accordingly, his administration has
00:17:39has long indicated that it wants wants to ditch the restrictions that
00:17:42that his predecessors placed on how how many greenhouse gases, coal and
00:17:46and natural gas fired power stations stations could emit. Now the rule
00:17:50rule change announced by EPA administrator administrator Lee Zeldin will make
00:17:53make it possible for the power generating
00:17:56generating sector to put many more
00:17:57more of the gases that cause global
00:18:01global warming into the atmosphere. atmosphere. Now, the power generating generating sector is already the
00:18:04the second biggest source of greenhouse
00:18:06greenhouse gases in America, after
00:18:08after transportation. Mr Zeldin says
00:18:10says his moves will save the industry
00:18:14industry over $300 billion. Now this this comes as the rapid construction
00:18:17construction of data centres has
00:18:19has created huge new demand for electricity.
00:18:23electricity. Samira Hussain there, there, let's get some of the day's day's other business stories. A plan
00:18:26plan to nationalise the UK's third third largest steelworks is being
00:18:30being developed by the government. government. Business Secretary Jonathan Jonathan Reynolds told the House
00:18:33House of Commons ministers were looking
00:18:35looking to acquire special Speciality
00:18:38Speciality Steel UK, which has sites sites in Stocksbridge and Rotherham
00:18:41Rotherham in South Yorkshire, and
00:18:44and Wednesday Wednesbury in the West West Midlands. The government initially
00:18:47initially took control of the firm firm last year after it was forced
00:18:50forced to liquidate by the High Court.
00:18:54Court. Nigerian billionaire Aliko Aliko Dangote has launched Africa's
00:18:57Africa's largest ever share sale, sale, offering a stake in his oil
00:19:00oil refinery to the general public public in a deal that could raise
00:19:03raise as much as $2.1 billion. The
00:19:05The initial public offering is for
00:19:08for roughly 3% of Dangote refinery, refinery, with the billionaire saying
00:19:11saying he wanted to give ordinary ordinary Nigerians the chance to
00:19:15to share in the plant's success.
00:19:18success. Europe's biggest names in in transport and energy are joining
00:19:21joining forces in a major push to
00:19:23to bring hydrogen power engine heavy
00:19:26heavy trucks into the roads by 2030.
00:19:292030. A host of companies, including
00:19:31including Volvo Daimler Truck, Toyota Toyota and TotalEnergies say the
00:19:35the technology is ready, but the the ecosystem around it isn't. Now,
00:19:39Now, for the first time, they're they're co-ordinating fleets, fuel
00:19:42fuel stations and hydrogen supply supply in a single unified plan.
00:19:45plan. Full details of the programme programme will be announced by the
00:19:49the company's chief executives at at the IAA Transportation event in
00:19:53in Hannover later today. Julius Caesar
00:19:56Caesar reports. Heavy duty transport transport is one of Europe's biggest
00:20:00biggest remaining sources of emissions. emissions. Hydrogen has long been
00:20:03been seen as a promising solution solution for long haul, heavy duty
00:20:07duty transport, but progress has
00:20:08has been slow. Without a co-ordinated
00:20:12co-ordinated ecosystem, Europe has
00:20:15has about 6.5 million diesel trucks
00:20:17trucks producing a quarter of all all road transport emissions. Stand
00:20:20Stand by any busy road like this this one and you can feel the noise
00:20:24noise and pollution that they create
00:20:26create while switching heavy trucks
00:20:29trucks to hydrogen would mean zero
00:20:31zero tailpipe emissions, quieter
00:20:34quieter roads and cleaner long haul
00:20:36haul freight. Where batteries fall
00:20:38fall short, the initiative aims to to make hydrogen trucks commercially
00:20:42commercially viable. That means tackling tackling one of the biggest barriers
00:20:45barriers to adoption the total cost
00:20:47cost of ownership. During the coming
00:20:50coming 5 to 10 years. We. Our anticipation anticipation is that we will start
00:20:54start to see the scaling. But again, again, we will only see it if we
00:20:57we are working together in the ecosystem. ecosystem. And that's the reason
00:21:00reason why a coming together between between different actors in the ecosystem
00:21:04ecosystem is so important because because we think that the business
00:21:07business case, the technology is is there and now it's about really
00:21:10really to make sure that we are putting
00:21:14putting also the right conditions conditions to provide business models
00:21:17models for scaling. The plan includes
00:21:20includes strategically placed refuelling refuelling corridors along key transport
00:21:24transport routes designed to give give operators confidence that hydrogen
00:21:28hydrogen will be available where where and when they need it. This
00:21:31This is a teamwork between private private and public to make it happen.
00:21:35happen. But again, we believe and
00:21:36and we have seen that also that countries
00:21:39countries and regions that are driving
00:21:41driving this agenda can combine a
00:21:46a competitiveness, and resilience
00:21:48resilience or energy resilience so
00:21:50so to speak. Regional security and
00:21:53and also competitiveness and eventually,
00:21:55eventually, which is super important important decarbonisation, less pollution
00:21:58pollution and less noise when it it comes
00:22:04Noise when it comes to mobility. Hydrogen offers fast refuelling, refuelling, high energy density and and the ability to keep freight moving
00:22:08moving without adding huge battery
00:22:09battery packs. Experts say that shifting
00:22:12shifting these trucks to hydrogen
00:22:15hydrogen is essential if Europe is
00:22:17is going to meet its climate targets.
00:22:20targets. Europe's transport sector sector is preparing for a hydrogen
00:22:24hydrogen powered future and the race
00:22:25race to build it has officially begun.
00:22:28begun. Julia Caesar BBC News. Nearly
00:22:32Nearly 1 in 3 organisations globally globally have been hit by a successful
00:22:36successful cyber attack in the past past year, according to a report
00:22:39report out today by the insurance insurance firm Hiscox. In the UK
00:22:43UK alone, 39% of small and medium medium sized businesses suffered
00:22:47suffered hacks within the last 12 12 months, costing the businesses
00:22:50businesses an average of just under
00:22:54under £36,000 in damages per business. business. Well, to tell us more,
00:22:56more, Eddie Lamb is global head of
00:22:59of cyber at Hiscox. Eddie, good to
00:23:01to talk to you. 1 in 3 businesses
00:23:04businesses in the UK are hit by cyber cyber attacks. Of course, we remember
00:23:07remember very keenly what that meant meant for Jaguar Land Rover recently.
00:23:11recently. Talk us through what's what's going on. Yeah of course.
00:23:14course. I mean big brands like JLR
00:23:17JLR often attract headline attention. attention. But of course small to
00:23:20to medium businesses in the UK are are the backbone of our economy.
00:23:24economy. And our target, of course, course, for cyber crime. And what
00:23:27what our research has shown us is
00:23:30is that 40%, nearly of all SMEs in in the United Kingdom have experienced
00:23:33experienced at least one cyber attack attack over the course of the last
00:23:37last 12 months. In actual fact, many
00:23:39many of them report multiple cyber
00:23:41cyber attacks over that period. When When you look at the costs, as they
00:23:45they as they rack up sort of $36,000
00:23:50$36,000 to remediate or to recover recover from an incident like that,
00:23:52that, when you play that out over
00:23:55over the sort of the UK economy at
00:23:56at scale, you start to see the impact
00:24:00impact that that is having on, on on the UK economy. If you look at,
00:24:03at, you know, 40% of SMEs is around,
00:24:07around, you know, 2.2 million small small to medium businesses in the
00:24:10the UK with an average loss following
00:24:13following a cyber attack of around
00:24:15around $36,000. Then that comes out
00:24:19out to around $80 billion last year
00:24:22year in terms of the impact of cyber cyber crime on the United Kingdom
00:24:25Kingdom economy. Yeah. And there's
00:24:27there's also the operational disruption
00:24:30disruption that the anxiety it causes
00:24:31causes and also the hit to a brand brand and to the reputation of a
00:24:35a business. So it's felt on so many
00:24:37many levels and yet it seems so persistent
00:24:40persistent and relentless for a small small businesses and medium sized
00:24:43sized company. I mean, how do they
00:24:44they deal with this? Yeah, I think think what our research has shown
00:24:48shown us is that UK businesses are are proving to be very resilient.
00:24:52resilient. So they tend to be targeted
00:24:54targeted more frequently than peers
00:24:56peers in, in the US and Europe. But
00:24:59But what they do do. Why is that? that? Eddie why are we targeted more
00:25:02more frequently in the UK is because because we haven't got such secure
00:25:05secure systems. It could just be
00:25:07be a reporting issue. Sally, in terms
00:25:09terms of who reports what within within each different jurisdiction.
00:25:12jurisdiction. But if you look at at what the research has shown us
00:25:15us is, is the United Kingdom small small to medium business space is
00:25:19is very resilient. So whilst they they might have or report higher
00:25:23higher frequencies of attack, their their recovery times are much faster.
00:25:26faster. So if you look at the global global average is around 32 hours
00:25:30hours of downtime following a cyber cyber attack compared to UK based
00:25:34based SMEs recovering in around 24
00:25:3624 hours. You can also compare that that against the average cost of
00:25:40of a cyber attack. So in the UK, UK, businesses tend to it tends to
00:25:44to cost businesses around $36,000
00:25:46$36,000 compared to a global average
00:25:50average of around $51,000. Eddie, Eddie, I'm sorry to say we're out
00:25:52out of time because my next question question was what can companies do
00:25:56do to prepare and stop this from from happening? But we have run out
00:26:00out of time. Eddie Lamb thank you you very much from Hiscox. And that
00:26:03that brings to a close Business Today.
00:26:06Today. Once again, thank you so much much for your company, as I've mentioned.
00:26:09mentioned. More on our website. Do
00:26:10Do take a look.
00:28:54MUSIC
00:29:04What new industries are created. Because what we've seen seen throughout history is new industries
00:29:08industries are created and it's that that process that actually opens
00:29:11opens new doors. That was the that
00:29:13that was the mandate from Prime Minister Minister Starmer. He wants the UK
00:29:16UK to be an AI superpower. He recognises
00:29:20recognises that the ingredients are
00:29:21are all right here. AI is real AI
00:29:25AI and total pay off just like cars cars and total paid off TV and total
00:29:28total paid off. But most people involved
00:29:30involved and didn't do well. The The revolutionary you know, time
00:29:34time upon us and I think, you know, know, all industries will be adopting
00:29:38adopting AI in some shape or form.
00:29:44form. MUSIC
00:29:57MUSIC
00:30:13Live from London. This is BBC
00:30:15News. Anthropic co-founder says AI
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00:30:29to kill seven more is due to be published
00:30:32published today. Yemen's Houthi say
00:30:35say Saudi Arabia launches fresh strikes strikes after the Iran backed group
00:30:39group targeted military bases in
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00:30:44and Meghan's police protection will will be reviewed after changing their
00:30:47their children's school over security
00:30:49security concerns. Also coming up,
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00:30:54Emmys. Matthew Rhys makes history
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