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00:00:06Live from Singapore now on BBC
00:00:09News, Business Today. Oil prices
00:00:17prices fall as global energy markets markets brace for more Russian supplies
00:00:21supplies after US President Donald Donald Trump said Kyiv and Moscow
00:00:23Moscow had agreed to an energy ceasefire.
00:00:26ceasefire. And as Microsoft's CEO CEO calls for emergency brakes on
00:00:29on advanced AI. BBC sits down with with the company's president, who
00:00:33who warns artificial intelligence intelligence is moving faster than
00:00:35than the speed of safety. Net and
00:00:43and welcome to Business Today. Oil Oil prices are dropping on the hope
00:00:46hope of some relief on the global global supply crunch after President
00:00:49President Trump claimed Russia and and Ukraine have agreed to an energy
00:00:53energy ceasefire. Both countries countries have been trading major major strikes on energy infrastructure
00:00:56infrastructure for weeks now. On On Friday, President Trump also said
00:00:59said that Russia had agreed to supply supply diesel to global markets in
00:01:02in an effort to lower fuel prices prices after the US temporarily lifted
00:01:06lifted sanctions on Russian fuel.
00:01:07fuel. Brent crude is trading just
00:01:12just below the $103 a barrel mark, mark, while WTI, the primary benchmark
00:01:15benchmark for US oil well. That's That's just under the $90 a barrel
00:01:18barrel mark. However, global energy energy markets remain on edge after
00:01:22after strikes from the Houthis on on Saudi Arabia. Mean Saudi Arabia's
00:01:25Arabia's main airport raised concerns concerns that the escalation could
00:01:28could exacerbate supply risks. Let's
00:01:30Let's get the latest from our Asia Asia business reporter Archana Shukla
00:01:33Shukla Arsenault. Tell us what you've you've been seeing. It looks like
00:01:35like the price of Brent and WTI crude crude seems to be dropping a little
00:01:39little bit over the last few hours. hours. Well it's dropping but then
00:01:43then it's highly volatile. If we we would look at it you know last
00:01:46last few days chart shows there have have been intraday swings as well
00:01:49well because traders are literally literally digesting competing forces.
00:01:52forces. There is some hope from you you know, president President Trump's
00:01:55Trump's claim that there could be be an energy ceasefire between Russia
00:01:59Russia and Ukraine and that Russia Russia would, you know, start supplying
00:02:02supplying diesel to the global markets markets that could bring down prices
00:02:06prices and increase supplies. But But at the same time, there is question
00:02:09question mark because there have have been some reports of, you know,
00:02:12know, more attacks on Ukraine. And
00:02:16And even after this was announced. announced. So there is a question
00:02:18question mark on the validity of of that ceasefire agreement, how
00:02:22how long that could last. And question question marks on how much capacity
00:02:25capacity does Russia really have have in terms of diesel refining refining that it could supply to
00:02:29to the world on a consistent basis basis going forward? So lots of questions
00:02:33questions there. Then there is obviously
00:02:36obviously the you know, the increased increased security situation in Saudi
00:02:39Saudi Arabia over the weekend that that has again, put a question mark
00:02:42mark on supply of Middle East oil oil to the world. There has been
00:02:45been increased oil supplies from from that region, with oil producers
00:02:49producers looking at alternate options, options, alternate channels. But
00:02:52But that obviously has added to the the freight cost for oil. But at
00:02:55at least some oil was still moving moving out. But then with the increased
00:02:58increased security situations, there there is a question mark there. So So there are competing forces. Oil
00:03:02Oil prices are expected to remain remain on the higher side as well.
00:03:05well. We are already seeing it above above $100 perched above $100 a barrel,
00:03:09barrel, and it is expected to stay stay there for some more time. Thanks
00:03:11Thanks very much for that Archana Archana Shukla there Microsoft Chairman
00:03:14Chairman and CEO Satya Nadella has has called for advanced artificial
00:03:17artificial intelligence systems to to be built with an emergency brake
00:03:20brake that lets people pause or shut
00:03:22shut a model down mid task. His comments
00:03:24comments come after top tech executives executives warned that the technology
00:03:27technology is moving too fast, with with limited guardrails. Conversely,
00:03:30Conversely, President Trump has dismissed dismissed AI risks. Speaking to the
00:03:34the BBC for the Big Boss interview, interview, Brad Smith, the President
00:03:37President of Microsoft, says AI is is moving faster than the speed of
00:03:40of safety. When you look at AI agents
00:03:44agents that have escaped human control, control, when you look at models
00:03:47models that are so powerful that that they're putting the world's
00:03:51world's cybersecurity at risk, I I would say, look, the moment has
00:03:54has arrived. Let's speak calmly,
00:03:57calmly, maybe even softly but firmly,
00:04:00firmly, and start to bring people people together. I hope that's the
00:04:03the role we can play as a company. company. I hope that's the role the
00:04:06the UK can play as a country. So So there was this accord that came
00:04:09came out of the White House, wasn't wasn't you were notably not one of
00:04:12of the signatories as a company of
00:04:14of that, but that was all about I'm I'm quoting the President again here, here, tremendous self-regulation.
00:04:18self-regulation. It sounds like from from what you're saying to me, without without putting words in your mouth, mouth, you don't think self-regulation
00:04:22self-regulation actually goes far far enough. There should be one body
00:04:25body somewhere that people are compelled. compelled. Forced what is it legally
00:04:28legally forced to put their models models through to test? I would say
00:04:31say two things. First, I applaud, applaud, I applaud, we applaud as
00:04:34as a company that statement and we're
00:04:37we're happy to sign it. It's a good good step. It's a necessary step.
00:04:41step. And fundamentally what it does does is it says companies should
00:04:43should have internal controls. It It should have internal auditors
00:04:47auditors looking at things like AI AI safety. We've been doing that
00:04:49that since almost a decade ago, and and there ought to be some external
00:04:53external evaluators as well, all
00:04:55all to the good. It's necessary.
00:04:58necessary. I don't think it's sufficient
00:05:00sufficient any longer because the
00:05:03the challenge for any self-regulatory self-regulatory regime is if it's
00:05:06it's left to the industry alone, alone, frankly, the good companies
00:05:10companies will do what you want. want. It's the companies that are
00:05:13are not as responsible that you need need to worry about. We should always
00:05:17always worry that regulation can
00:05:18can become too heavy-handed. It can
00:05:21can slow innovation. And I think think President Trump is right to
00:05:25to remind us to think about even
00:05:27even worry about those concerns.
00:05:29concerns. But right now I'd argue
00:05:32argue that AI is moving forward faster
00:05:34faster than the speed of safety.
00:05:36safety. That's not good for the protection
00:05:39protection of the public. Australia's Australia's Firmus, a data centre
00:05:42centre operator backed by Nvidia, Nvidia, shelved its $5 billion IPO
00:05:45IPO on Friday. Its IPO would have have been the second largest new
00:05:48new share sale in Australia's history, history, but met lukewarm demand.
00:05:52demand. The cancellation is adding adding to growing investor scrutiny
00:05:54scrutiny over the AI funding boom, boom, questioning the sustainability
00:05:58sustainability of massive investments investments in build or to build build infrastructure well. For more,
00:06:02more, we can speak with Tim Waterer, Waterer, chief market analyst at
00:06:04at KCM trade. Tim, what do you put put this down to? Is this a firm
00:06:08firm is problem or a sign that enthusiasm enthusiasm for the AI trade is perhaps
00:06:11perhaps cooling. Good to be with with you, Steve. A little bit of
00:06:14of both. I think what it does do do is demonstrate there is a gap
00:06:18gap growing between private sector sector AI hype and public appetite,
00:06:21appetite, but there is also a firmness firmness issue there as well. And
00:06:25And that is the stark, I guess, increase
00:06:27increase in valuation between around
00:06:30around 10 billion in August versus versus 30 billion in October. So
00:06:34So that combined with the current current revenues of around $50 million
00:06:37million and only two data centres centres in operation, meant that that the maths really didn't add
00:06:41add up for investors to justify that that eye watering valuation level.
00:06:45level. Yeah. So how big a shock is
00:06:46is this then for the Australian market? It's a blow, no doubt. I
00:06:50I mean the a lot of hopes were pinned pinned on this IPO as you mentioned.
00:06:54mentioned. But I think, you know know the fact that they couldn't
00:06:57couldn't fill the listing at a $11 $11 price or whispers it could move
00:07:01move down to maybe $8, $9. So a lot
00:07:04lot of red flags there for investors. investors. And of course, there are
00:07:08are concerns about the, I guess the
00:07:10the how, how this trade will fare fare moving forward. Like you said,
00:07:14said, the sustainability of that that AI trade, a lot of execution
00:07:17execution risks there given that that they've only completed 2% of of their AI data centre build out.
00:07:21out. So that risk factor is what what really spooked investors away
00:07:24away and caused the IPO to fall flat. flat. Yeah. There are other big listings
00:07:27listings in the pipeline in Australia Australia that might perhaps pause
00:07:30pause as a result of this potentially.
00:07:33potentially. Yes. I mean, certainly certainly right now anyway, for the
00:07:36the short-term Firmus they still still need to raise capital because because that AI race is still ongoing.
00:07:40ongoing. They still want to move move ahead with their build out.
00:07:42out. They'll be focusing on raising raising capital from the private
00:07:45private sector. I think they'll probably probably still come back to the market
00:07:48market at some point. The public public market, whether that's in
00:07:51in Australia or in the US on the the Nasdaq, that remains to be seen,
00:07:54seen, but I think investors will will want to see more of a track track record before going in with
00:07:58with any confidence, certainly at at the valuation levels that we saw saw last week. And just very quickly,
00:08:02quickly, are you seeing sort of Australia Australia be a bit more sceptical sceptical about the continued AI
00:08:05AI build out than, say, the US is? is? I think so there is a school
00:08:09school of thought that if this offering offering had have occurred in the
00:08:12the US, maybe it would have got across across the line. There may have been
00:08:16been less of that scepticism happening. happening. Offsetting that is that
00:08:19that there was a lot of appetite appetite in Australia for an IPO
00:08:22IPO of sorts, because there's been been a bit thin on the ground in
00:08:24in recent times. So but I think on on balance, yeah, it might have had
00:08:27had a little bit more success in in the US. Maybe Australian investors
00:08:30investors casting a bit of a closer closer eye over the fundamentals
00:08:33fundamentals of the company and the the balance sheet. Tim, really good good to get your thoughts as always.
00:08:37always. Tim Water, chief market analyst
00:08:38analyst at KCM trade. Dozens of states
00:08:41states have in the last week backed
00:08:43backed New Jersey's legal fight against against a prediction. Markets at
00:08:46at the Supreme Court after an earlier earlier court ruling found federal
00:08:50federal laws for trading override override local state gambling. The The petition sets the stage for a
00:08:54a courtroom battle that will determine determine whether states can regulate
00:08:56regulate prediction markets like like Kalshi and Polymarket, which which Americans have increasingly
00:09:00increasingly used to bet on everything everything from sports to politics politics to cultural events. I've
00:09:04I've been speaking with Gary Gensler,
00:09:06Gensler, who chaired the CFTC as
00:09:09as well as the SEC. When the law law at the centre of this case was was written, he explained why the
00:09:13the case could determine whether whether sports betting remains under
00:09:15under state control or falls under under federal regulation. Well, they're
00:09:19they're being asked to decide whether
00:09:22whether sports betting is still regulated
00:09:25regulated at the state level or somehow
00:09:28somehow it was through a snippet
00:09:31snippet of legal words back in 2010
00:09:342010 moved to a small federal agency agency called the Commodity Futures
00:09:38Futures Trading Commission. It didn't
00:09:41didn't happen. That law was passed
00:09:43passed in 2010 because of a great
00:09:45great housing finance bubble that
00:09:48that burst and Congress didn't move move it to the federal level. That's
00:09:51That's what they're being asked to to decide. And what would the what
00:09:55what would these companies like Kalshi, Kalshi, for example, where do they
00:09:58they see what benefits them the most?
00:10:01most? Well, Kalshi sees the benefit benefit of keeping it the federal
00:10:04federal level. And they filed suit
00:10:06suit and they are working hand in
00:10:09in glove with the Trump administration,
00:10:12administration, CFTC and here's why. why. 39 states in the United States
00:10:15States actually allow sports betting, betting, but 11 don't, including
00:10:19including California. Kalshi wants wants to be in all of those states.
00:10:22states. Most states ban sports betting
00:10:24betting for people under 21 Kalshi
00:10:27Kalshi they allow it down to 18.
00:10:2918. They don't want to pay the same
00:10:33same taxes as sports betting shops shops like FanDuel and DraftKings
00:10:37DraftKings do. So there's a lot of
00:10:39of economics and they're trying to
00:10:42to I'll say sneak a curveball by
00:10:45by the player. As Gary Gensler, former former chair of the Commodity Futures
00:10:49Futures Trading Commission as well well as the SEC. Thanks for joining
00:10:52joining me here on Business Today. Today. Our sport is coming your way
00:10:55way next with more on that Manchester
00:10:58Manchester City win.
00:11:10MUSIC
00:14:35I was here at the very first protest. The Cockroach Janta Party
00:14:38Party had organised about a month
00:14:40month ago. And this is so much bigger.
00:14:43bigger. I've been driving. Towards Towards the site of this wildfire, wildfire, but we've just stopped
00:14:46stopped at the side of the road here here because of what we saw out the
00:14:49the window. This man has been pulled pulled out successfully. It's taken
00:14:53taken a mammoth mammoth rescue effort. effort. This morning. You get very
00:14:56very little sense of the terrible terrible scenes that were witnessed
00:14:59witnessed here last night. There
00:15:01There when the story breaks, BBC
00:15:04BBC News. Now on BBC News. A round
00:15:08round up of the day's sporting action action plus talking points analysis
00:15:11analysis and original journalism.
00:15:14journalism. BBC Sport.
00:15:23Hello, I'm Tanya Arnold with your latest sports news. Manchester
00:15:26Manchester City's first game since since being found guilty of breaching
00:15:30breaching Premier League financial financial regulations ends in victory
00:15:32victory as they outclass Liverpool. Liverpool. Red Bull's Max Verstappen
00:15:36Verstappen secures his first win win at the Singapore Grand Prix to
00:15:39to take his second victory within
00:15:42within a week and Alexander Zverev Zverev hits another milestone in
00:15:45in his standout season to notch his
00:15:47his 60th tour level victory of 2026.