Transcripts For BBCNEWS Business Today - NYSE Opening Bell 20240921

New pressures are open and New Pressures are open and over. Us has made the decidedly low Energy Stud to the last Trading Day of the week after closing at new Record Highs on thursday. The dow settled against 40,000 points for the first time. They have overcome initial nerves about a big Interest Rate Cuts from the Federal Reserve after fed treasurer said the worlds biggest economy is in a good base despite slashing the cost of borrowing by a Jumbo Half a percentage point. So what is next . For more,. Lets bring in tim urbanowicz, head of Research And Investment strategy at Innovator Etfs in chicago. Welcome. Further, rest assured that rate cant, is reaching Record Highs but there are still high stock valuations, meaning that it is an extensive market. Click that limit further gains despite lower rates . , rates . This is probably their base rates . This is probably their Base Macbeth rates . This is probably their Base Macbeth case rates . This is probably their i Base Macbeth Case Scenario Base Macbeth Case Scenario for equity investors. Air place thatis for equity investors. Air place that is on the high end of the range. Which was expected. 0n range. Which was expected. On top of that, he would it hinted that the us economy is still in good shape, it is on firm footing. The other Labour Market which is re is better balance on one another so you really are limiting the risk of inflation and we also see very limited risks of a recession with that so i think that this was a very good outcome for a rest is something that they have clearly cheered over the last day. Have clearly cheered over the last da. �. Last day. But tim, the french treasurer last day. But tim, the french treasurer says last day. But tim, the french treasurer says that last day. But tim, the french treasurer says that he last day. But tim, the french | treasurer says that he doesnt expect this to see and hear of Teaching My at the fed treasurer said he doesnt expect to see an error. And the is expect to see an error. And they is something expect to see an error. And they is something easy expect to see an error. fific they is something easy thing about over the next year. We need to weather it can be is sitting and what there is that Animal Rates look like. We would argue is if its you look at the short or intermediate end of the yoke, it is not a cheap. Weve already seen a lot of easy money made in one. Right now, the market is anticipating as the rate in 2026 from the fed of 2. 75 . If we simply take on the Media Spread Beef between the federal funds rates that we have seen over the last 40 years, that would be go up by 10 which is high then it is today. One look at this relative to equity investment, that is ultimately what is going to be more important. We have also seen this last couple of years that investors have completely been overly optimistic on the fed. Theyve underestimated the amount of heights, theyve overestimated the Speed And Fricassee with which Cuts were going to become a. If there is any deviation make the frequency with which Cuts were going to be coming. If theres any deviation from that, there is a significant difference in where we expect rates to be and thatis where we expect rates to be and that is going to have a significant impact and equity valuations valuations over time. Valuations valuations over time. ~ valuations valuations over time. , ~ y. , valuations valuations over time. ,. Lets talk more about the us economy and the election that is less than eight weeks away, because President Biden has been hailing the progress made in tackling inflation after the Federal Reserve finally began to cut the cost of borrowing this week from its two decade high. He told the economic club of washington he was not there to take a � Victory Lap and there was more work to be done. But said that inflation has come down faster and further in america than in most other major economies. Let us be clear, lowering Interest Rates isnt a declaration of victory, its the declaration of progress. A signal we are entering a new phase of our Economy And Oui recovery. I believe it is important for the country to recognise this progress because if we do not, progress made will remain locked in the fear of negative mindsets that dominate our economic outlook since the pandemic began. Well, polling shows the soaring Cost Of Living is a key issue for americans as they prepare to choose their next president. It also suggests many blame the biden administration for high Inflation And Trust Donald Trump more than his election rival Kamala Harris on the issue. Heres what he had to say on the feds Rate Cut on a visit to a new York Bar on wednesday. The economy is very bad. It is notjust the economy is very bad. It is not just about politics, the economy is very bad. It is notjust about politics, the economy would be very bad oil their playing plates is one of their playing plates is one of the other it was a big kite. They are playing politics. Adam posen is president of the Peterson Institute for international economics an Non Partisan Thinktank in washington dc. Welcome, adam. Politics aside, the fed decided on a jumbo Rate Cuts but was that he right decision for the economy that is a narrative at least from the stock Markets Perspective that there is going to be a soft landing for the economy. I think it was good Risk Management by the fed, the fact is that the Inflation Outlook for the short term is down. There is very little reason to think that it is she to back up in the next few months whereas having unnecessary with recession is bad. I think it is right for that where i differ from the Stock Market and the previous guest, Cuts notjust a small but Cuts in rates and other spaces since 2025 and i dont think they should have committed to that, that it will be not going to happen and they have to be prepared to turn around. The next Fed Meeting comes a day around. The next Fed Meeting comes a day after around. The next Fed Meeting comes a day after the around. The next Fed Meeting comes a day after the election i briefly said that no matter who wins where likely to get more spreading i see that inflationary pressure build. I expect in the right honourable to have to hike that but expecting the fed to hike rates next year . I expecting the fed to hike rates next year . Next year . I think theyre auoin next year . I think theyre going to next year . I think theyre going to be next year . I think theyre going to be at next year . I think theyre going to be at least next year . I think theyre l going to be at least willing next year . I think theyre going to be at least willing at the cost if harris wins and if trump wins theres going to be hiking. Ithink trump wins theres going to be hiking. I think youll be a Cuts the day after the election probably again in december, the next two meetings that seem to be written in stone. It probably does not matter that much. I think we have a looser Fiscal Policy for an eye either of them, much looser under trump. President biden and Vice President harrison said much looser under trump. There two factors are determined but potentially deportation of workers, Migrant Workers by trap which is also which should also be inflationary. I think by now months now, the fight would be falling at were out Cuts. Fight would be falling at were out Cuts. Were out Cuts. The fed is independent were out Cuts. The fed is independent of were out Cuts. The fed is independent of country i were out Cuts. The fed is independent of country politics but it is hard to think about what you have a joke without a sense of who might occupy the oval office. Does this across the mind of policymakers and how much is the upcoming Election Matter . It how much is the upcoming Election Matter . It matters a lot but more Election Matter . It matters a lot but more for Election Matter . It matters a lot but more for its Election Matter . It matters a lot but more for its direct lot but more for its direct effects on the economy. That said, present trump, he said were busy on the Campaign Trail and press it if he said he would like to have some say over fed policy, which is an attack on independence. Vice president the Campaign Trail and President Biden, his economic Speech Yesterday has said that this respect fed independence and it is part of the reason that innovation came down with that unemployment going up. I think thats fact, they are right. So, there is a threat if trump gets in to the fed but that is not going to affect what they choose to do right now or even in the next six months. Right now or even in the next six months right now or even in the next six months. 0k, thank you, i dont. Six months. 0k, thank you, i dont a six months. Ok, thank you, i dont. A real six months. 0k, thank you, i dont. A real pleasure six months. 0k, thank you, i dont. A real pleasure to six months. 0k, thank you, ll dont. A real pleasure to have you. 0k, thank you, adam. To the uk now and an economic milestone that the government will not be celebrating. The amount the uk owes is now equivalent to the size of the whole economy or 100 of gdp. Its the first time its been at that level since 1961. The figure puts further pressure on the governments finance chief, chancellor of the Exchequer Rachel reeves to cut Spending And Increase tax revenues. Although she has promised not to raise income tax, its thought she could target pensions and Capital Gains in next months budget. An ageing population is putting pressure on the finances of many developed countries. But Economist Rob Wood told us the uk also had some specific problems. An ageing population pressures on government finances, there are common across many countries. The uk is having a particularly tough time lately because of the unique fact in uk, which is increasing numbers of people leaving the workforce because they are too sick to work. That is adding to a lot of these pressures as is the uks decision to leave the ego some years ago, which has slowed Growth And Tax revenues meant to leave the eu some years ago. It is under pressure across the world. Now to the entertainment business, because performers in the video Games Industry have been striking in california over the use of their images and voices by artificial intelligence. Members of the Sag Aftra Performers Union picketed a disney offices in burbank on thursday after Contract Negotiations failed. It comes two days after California Governor Gavin Newsom signed two bills aimed at protecting actors and other performers from unauthorised use of their digital likenesses. Earlier this month, Sag Aftra announced over 80 Video Game companies have agreed to the unions proposed ai terms. Heres what they are concerned about. The trouble is that down everything, Record Everything and then use it forever. The this is in and then use it forever. The this is in perpetuity. And then use it forever. Tue this is in perpetuity. And and then use it forever. Tte this is in perpetuity. And that is absolutely unethical. Irate this is in perpetuity. And that is absolutely unethical. We are lookin is absolutely unethical. We are looking for is absolutely unethical. We are looking for the is absolutely unethical. We are looking for the very is absolutely unethical. We are looking for the very basic, looking for the very basic, very looking for the very basic, very easy protections. We are looking very easy protections. We are looking for notifications that our stuff is going to be recorded and used for al, we are looking for content so that i are looking for content so that i have are looking for content so that i have agency over what to my digital i have agency over what to my digital replica can give to the studios digital replica can give to the studios and we are looking to be compensated for. The head of the Performers Union has been speaking to the bbc for this weekends talking business programme. He said ai is the biggest challenge his profession has everfaced, more than the arrival of talking you are movies, technicolor or special effects. To shut those developments did wreak havoc in the industry but what. Wreak havoc in the industry but what. , wreak havoc in the industry but what. ,. , what. On a base of the all of this what. On a base of the all of this development what. On a base of the all of this development did i all of this development did wreak on the Havoc Industry but the difference is that it gives the difference is that it gives the appearance of that you have done something that you do not do it in a unique sort of way. They have all kind of implications. There is not only get people who have completed gets himself a Gas Sales for jobs but also, would people who have contributed to them that they did not agree to or did not want to be a part of. Thats nuts but that is something that we have not faced before. You great goal. Hello from the bbc sport centre. Pep guardiola says hes expecting a tough match when Manchester City welcome arsenal to the etihad this weekend. Its a clash between the top two teams from the past two Premier League seasons and in the last Campaign City were unable to beat the gunners in either the league or the community shield. We. We have an undergo before an unbelievable team. They defend really well, as they defend really well, as they defend really well, what their goals, they could show really good aspects. The biggest challenge for the last two seasons, they are there and theyll be there for many years because it created that squad, young team. So it was another good test but we are in september so i like to see, the team, many things we are better than the past