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00:00:00MUSIC
00:00:02Now on BBC News, the latest from
00:00:06from New York and around the world.
00:00:08world. Business Today.
00:00:24Live from New York at the Opening Bell. This is Business Today. Today. US shares jump on the Open
00:00:27Open as oil prices sink further and and The Fed reassures investors it's
00:00:31it's going to get inflation under
00:00:32under control. Stronger together
00:00:36together Canada's Mark Carney takes takes aim at US tariffs and big tech
00:00:40tech as he addresses the European European Parliament. Throwing down
00:00:43down the gauntlet to President Trump.
00:00:47Trump. Also coming up on hold. But
00:00:49But for how long? The Bank of England
00:00:51England leaves interest rates unchanged
00:00:54unchanged at three and a three quarters quarters of a percent. But it warns
00:00:57warns they may have to rise if the
00:00:59the Middle East war drags on. And
00:01:04And smart specs Snap says its new
00:01:07new eyewear will augment your reality.
00:01:09reality. We take a closer look. Welcome
00:01:16Welcome to Business Today. Live from from New York. I'm Samira Hussain
00:01:19Hussain a. US shares are surging
00:01:21surging ahead on the Open this Thursday
00:01:23Thursday as oil prices continue to
00:01:25to retreat with US crude back below below $100 a barrel. Saudi Arabia
00:01:29Arabia has reassured traders that that its east west pipeline damaged
00:01:32damaged in an Iran backed attack,
00:01:34attack, will resume pumping oil within
00:01:37within days after a wobble on Wednesday. Wednesday. Markets now seem happier
00:01:41happier about the first US interest interest rate rise in three years.
00:01:44years. And tough talk from the Federal Federal Reserve on tackling inflation
00:01:48inflation has fed Chair Kevin Warsh, Warsh, now established he's truly
00:01:52truly independent from President President Trump, who has continued
00:01:54continued to demand lower borrowing borrowing costs. Let's go to Palm
00:01:58Palm Desert, California and speak
00:02:00speak to Robert Shine, chief investment
00:02:03investment officer at Wealth Management. Management. Now the central bank bank did what it was expected to
00:02:08to do, but we saw that markets actually
00:02:10actually dropped 600 points. I'm I'm wondering what did war say that
00:02:13that had them just so spooked. Well
00:02:17Well good morning. Yeah chairman
00:02:20chairman Warsh basically toed the
00:02:23the line and essentially gave the the markets what was priced in even
00:02:27even two weeks prior to this interest
00:02:30interest rate rise yesterday. But But I think what he really said and
00:02:33and what spooked the market is the the modelling of what The Fed is
00:02:37is looking for moving forward and
00:02:40and how restrictive they still will
00:02:42will be towards the year end. So So there's a 90% chance right now
00:02:45now by fed Funds futures of another
00:02:48another hike by year end, let's say say December. So I think the market
00:02:51market was anticipating the 25 basis basis points. But they also were,
00:02:55were, were also kind of scratching
00:02:57scratching their head where the core
00:03:00core PCE by measure of the Fed's
00:03:03Fed's is coming in line. So while
00:03:05while inflation is coming down, they they are becoming more restrictive
00:03:08restrictive and taking the accommodations
00:03:10accommodations off the table. Well, Well, since then we're looking at
00:03:14at US financial markets. Now the the Dow is up some 400 points. So
00:03:17So there's clearly a rebound happening. happening. How much of that is a
00:03:21a sign of confidence in the Federal
00:03:23Federal Reserve? I think really what
00:03:25what it comes down to is investors
00:03:28investors and traders have the ability ability to digest and ultimately
00:03:31ultimately just get this monkey off off our back. Right. Was it a political
00:03:34political hike? Was it not? I mean, mean, there's been a lot of financial
00:03:37financial press leading up to this. this. So it was very well anticipated.
00:03:40anticipated. What was interesting interesting to find out is that if
00:03:43if you go back to 2024 in the Powell
00:03:48Powell administration's, you know, know, fed basically the core PCE
00:03:52PCE was 3.3%. Today it's 2.4. They
00:03:55They cut basis points by the interest
00:03:57interest rate by 50 basis points points going into the presidential
00:04:01presidential election. Here they're they're raising it by 25 basis points
00:04:04points going into the mid-term. So
00:04:06So I think the real question is how
00:04:10how political was The Fed. What's
00:04:12What's the reasoning and rationale.
00:04:14rationale. And I think media and and investors are still trying to
00:04:17to parse it out. But in the end of
00:04:19of the day, what you asked was it's
00:04:22it's a relief rally. And now investors
00:04:24investors can now refocus on lower
00:04:26lower hopefully energy prices moving moving forward as well as earnings,
00:04:30earnings, which is raising why markets markets are up this year. Well, interesting
00:04:34interesting stuff and we're surely surely going to be talking about about it some more given the Federal
00:04:38Federal Reserve has indicated there's there's going to be another rate
00:04:40rate hike coming before the end of of the year. Robert Shine, chief
00:04:44chief investment officer at Shine Shine Wealth Management, thanks very
00:04:47very much for joining us. Now, President President Trump has threatened to
00:04:50to cut trade with the European Union
00:04:52Union if it pursues a plan to make make Canada an associate member.
00:04:56member. He said it could be viewed viewed as a hostile act that might
00:04:59might prompt further tariffs on the
00:05:02the EU. In the last few hours, Canadian Canadian Prime Minister Mark Carney
00:05:05Carney has been addressing the European European Parliament, quoting the
00:05:08the German poet Goethe and alternating alternating between English and French.
00:05:12French. He took aim at US trade policies
00:05:15policies and US big tech as a threat
00:05:17threat to Canadian and European sovereignty.
00:05:21sovereignty. Together, Canada and and the European Union can anchor
00:05:25anchor our ground to hold our values
00:05:28values while forming a protective
00:05:30protective canopy under which our
00:05:32our citizens can thrive. This is
00:05:38is about sovereignty our ability
00:05:40ability to live as we wish. It's
00:05:44It's about the freedoms we must fight
00:05:46fight for every day because sovereignty
00:05:50sovereignty requires resilience,
00:05:51resilience, the ability to withstand
00:05:55withstand shocks, sovereignty today today goes beyond being able to feed,
00:05:58feed, fuel and defend ourselves.
00:06:00ourselves. It now requires secure secure access to AI, semiconductors,
00:06:04semiconductors, critical minerals, minerals, payment systems, clean
00:06:07clean energy technologies, vaccines,
00:06:09vaccines, space based communications
00:06:11communications and we all have important important gaps in these strategic
00:06:15strategic capabilities. And we each
00:06:17each must rely on individual nations
00:06:20nations or individual companies to
00:06:21to fill them. And that creates vulnerabilities.
00:06:26vulnerabilities. Lots to discuss. discuss. So let's bring in Constance Constance Hunter chief economist
00:06:30economist and head of research at at the business advisory firm Economist
00:06:34Economist Enterprise here in New New York. Now Prime Minister Carney
00:06:37Carney clearly was taking aim at at the United States given Trump's
00:06:41Trump's threats. Does this escalate escalate the trade war between the
00:06:44the US and Canada? Well. It could,
00:06:50could, but look, there's so much much trade that happens between the
00:06:53the US., Canada, it's 75% of Canadian
00:06:56Canadian exports. The auto industry industry is heavily entwined. The
00:07:00The US imports energy from Canada.
00:07:04Canada. And so the areas of difficulty
00:07:06difficulty between the US and Canada
00:07:08Canada are driven primarily by agricultural agricultural trade. And you notice
00:07:12notice that when he was speaking speaking to the EU, he specifically specifically said ex agriculture,
00:07:16agriculture, right. He listed he he specifically said, took agriculture
00:07:19agriculture off the table and listed listed a bunch of other areas where
00:07:22where the EU and Canada might co-operate.
00:07:26co-operate. Now, will this be something
00:07:29something that this administration administration uses as a negotiating
00:07:33negotiating tactic? Possibly. But But at the end of the day, when you
00:07:37you speak to the Commerce Secretary
00:07:39Secretary or people within the USTR USTR office, there is progress being
00:07:43being made on the US Canada
00:07:47Agreement. Well, look, becoming an an associate of the EU, it's going going to take a long time and presumably
00:07:51presumably by then there's going going to be a different administration
00:07:54administration in the White House. House. And I'm wondering what may
00:07:58may happen if US trade tensions with
00:08:01with Canada ease. Can Canadians have
00:08:03have close ties with the United States
00:08:05States and the EU at the same time? time? Well, sure, there's no reason
00:08:09reason that they can't. I mean, Canada
00:08:12Canada has a lot of what the world world needs now. So, you know, Mark
00:08:15Mark Carney spoke about critical critical minerals being the you know,
00:08:19know, having a being a key resource resource of 34 key critical minerals
00:08:22minerals and the top ten that are
00:08:24are used in the energy transition.
00:08:28transition. And so China has geographic
00:08:31geographic proximity to the Arctic, Arctic, which is becoming ever more
00:08:33more important. And what's interesting
00:08:35interesting is that he spoke about
00:08:38about the fact that this wasn't intended
00:08:40intended to be a third great power
00:08:42power rivalry. So that gives you you an idea that he believes that
00:08:46that there's a great power rivalry rivalry between the US and China.
00:08:49China. And he's saying the EU and
00:08:52and Canada can trade together, expand
00:08:54expand their trade, expand their
00:08:56their shared prosperity without trying
00:08:59trying to have a rivalry with the
00:09:01the US and Canada. Well, and one
00:09:04one of the areas that he really talked talked about was technology, a place
00:09:08place where Canada and the EU can can align themselves. What is he
00:09:11he referring to right there? Well,
00:09:15Well, look, he spoke about space.
00:09:16space. He spoke about quantum. He
00:09:19He spoke about digital payments networks. networks. So this spans both goods
00:09:23goods and services trade all of which
00:09:26which can expand between the EU and
00:09:29and Canada. Constance Hunter of Economist
00:09:34Economist to Enterprise. Thank you you very much for joining us. Now
00:09:37Now the Bank of England has left left interest rates unchanged at
00:09:41at three and three quarters percent. percent. Deciding not to follow The
00:09:44The Fed and the European Central Central Bank in raising the cost
00:09:47cost of borrowing. Now the decision decision in the last few hours was
00:09:50was widely expected but not unanimous.
00:09:53unanimous. The three of the bank's bank's nine member rate setting committee
00:09:57committee voted for an increase. increase. Now the bank, though, did
00:10:00did unanimously decide to pause its its sell off of government bonds
00:10:04bonds that has seen the UK government's government's borrowing costs fall
00:10:08fall on bond markets. Our economics
00:10:11economics editor, Faisal Islam, reports reports from the Bank of England.
00:10:14England. They have not followed other other major central banks which have
00:10:18have raised rates. They've held it
00:10:21it at 3.75% on the same split of of the nine member committee that
00:10:24that we had before 6 to 3. And the the essential reason is that they
00:10:26they recognise rising pressures from from energy. But they say that for
00:10:30for now, the rest of the economy economy hasn't sort of percolated
00:10:33percolated out into the rest of the
00:10:36the economy and effectively that that they're going to wait until
00:10:39until they can see that it might might feed into wages before they
00:10:42they act. Now, three members of the the committee thought actually we we have seen enough rates should
00:10:46should go up. This is an inevitability inevitability that it will percolate percolate into the rest of the economy.
00:10:50economy. Six didn't. So we got a a essentially a similar decision
00:10:53decision to what we got in July, July, despite the fact that energy
00:10:56energy prices have gone up considerably considerably since then. Finally,
00:11:00Finally, to the tech world because because shares of Snap, owner of
00:11:03of Snapchat, have been on the rise rise after it launched a new line
00:11:07line of smart eyewear. They are called
00:11:10called specs, and the firm says they
00:11:12they give an augmented reality experience
00:11:14experience using artificial intelligence. intelligence. Our North America technology
00:11:18technology correspondent Lily Jamali Jamali has been trying them out.
00:11:21out. Snap Inc here in Santa Monica, Monica, California is rolling out
00:11:25out what they're calling specs. These
00:11:27These are augmented reality glasses
00:11:29glasses that they say act as a fully fully standalone computer, but you
00:11:33you might look a little different different walking down the street.
00:11:36street. Now to use these AR glasses, glasses, I begin by pressing the
00:11:40the home button on my hand and in
00:11:43in front of me. What I see is a home
00:11:45home screen. Hey specs, play my morning
00:11:48morning playlist. The idea is to to be able to play music. Take me
00:11:52me the long way. For real time navigation,
00:11:55navigation, watch TV and movies and and enable working, shopping and
00:11:59and real time translation in dozens
00:12:01dozens of languages. So if I press
00:12:03press this button, I can capture
00:12:06capture a video. You should be able
00:12:08able to see a white flashing light
00:12:11light right here in between my eyes eyes on the glasses. That's there
00:12:14there to indicate that filming is is taking place. One criticism that's
00:12:17that's come up with this form factor factor in general is privacy. Many
00:12:21Many people don't like being filmed filmed in public without their knowledge. knowledge. I've seen instructions
00:12:25instructions online about how to to hide the LED. Metre, for example,
00:12:28example, says it's remotely disabled. disabled. The camera on its devices devices when the firm is detected,
00:12:32detected, users tampering with the the indicator light. These aren't
00:12:36aren't available to consumers just just yet. They are available for
00:12:39for pre-order, but consumers can can actually get their hands on these
00:12:42these in the UK., in the US as well
00:12:45well as France in the fall. So in in just a couple of months and the
00:12:48the retail price is 2195 US dollars.
00:12:53dollars. Whew. That's a pretty hefty hefty price tag for some pretty nifty
00:12:57nifty looking glasses, although I
00:12:59I do worry about it giving me motion
00:13:01motion sickness. That's it for me me on business. Stay tuned for more
00:13:05more with you here on BBC News. MUSIC
00:14:24to take the threat as a national national security priority? That's
00:14:26That's this week on Talking Business
00:14:28Business here on BBC News. Here at
00:14:36at BBC Verify, we use forensic investigative investigative techniques and tools
00:14:39tools to fact check stories, verify verify information and counter disinformation
00:14:43disinformation using data analysis analysis and the latest technology. technology. Our journalists examine
00:14:46examine the evidence and get to the the facts. Watch our BBC Verify reports
00:14:50reports on the BBC News channel or
00:14:51or go online to find out more.
00:15:17Welcome back. The UN has warned
00:15:19that hundreds of war damaged buildings
00:15:22buildings in Gaza are at imminent imminent risk of collapse after an
00:15:25an apartment block fell down yesterday. yesterday. At least 21 people have
00:15:29have been killed, including eight eight children. Witnesses say families
00:15:32families with no other shelter were were living there, despite it leaning
00:15:35leaning dangerously to one side after after an Israeli air strike last
00:15:38last year. The humanitarian co-ordinator
00:15:40co-ordinator for the occupied Palestinian Palestinian territory estimates 100
00:15:43100 people, including 50 children, children, were living in the building
00:15:46building when it collapsed. We have have been speaking to Shuroaq. She
00:15:50She is a media manager for Save the the Children in Gaza. She lives right
00:15:53right there, right next to that building building that collapsed and shared
00:15:56shared with us her experience of of the moment. It came down.