Transcripts For BBCNEWS Business Today 20240919

We have continuing coverage of the story on bbc news. Countdown serve the fed, the us Central Bank is expected to cut Interest Rates in the next couple of hours. The question is by how much. Also ahead, Uk Inflation hold steady in august but as the Bank Of England finally slaying the dragon . And The Party is over for tupperware as the 78 year old firm filed for bankruptcy. We lift the lid on what went wrong. Welcome to business today. We start in the us where the federal reserve is poised to cut the cost of borrowing for the first time in four years. That decision comes in less that three hours. It will come at two oclock eastern time. Americas Central Bank cranked up Interest Rates for the highest in two decades to get soaring inflation under control. Lets take you live to New York and talk to our North America Business correspondent. Investors are betting on a cat but the Big Question is how deep that cut will be. Indeed. Thats the deep that cut will be. Indeed. Thats the interesting deep that cut will be. Indeed. | thats the interesting question because markets are so divided its all but confirmed we will get the Interest Rate Cut but its about the size, will be 25 Basis Point Cut of 50 . The risk will now be if we dont get a 50 Basis Point Cut will The Markets be disappointed . Will they think the fed is behind they think the fed is behind the curb. If we do get a 50 Basis Point Cut will it split The Markets because there is The Markets because there is the fed know something that we dont about the economy . That is the debate and i spoke to a formerfederal is the debate and i spoke to a former federal governor about this and he said 25 or 50 is not going to make or break the economy and what he thinks investors should be focused on the forward guidance. I investors should be focused on the forward guidance. The forward guidance. I think this is the the forward guidance. I think this is the first the forward guidance. I think this is the first time the forward guidance. I think this is the first time they the forward guidance. I think this is the first time they are i this is the first time they are coming this is the first time they are coming to this is the first time they are coming to the meeting and they dont coming to the meeting and they dont know in advance. Typically its pretty clear what typically its pretty clear what theyre going to do and the have what theyre going to do and the have also telegraphed that to the the have also telegraphed that to The Market but here it could io to The Market but here it could go either to The Market but here it could go either way. I think its likely go either way. I think its likely more likely that it will be likely more likely that it will he 25 likely more likely that it will be 25 Basis Points with a promise be 25 Basis Points with a promise for a lot more to come. But its promise for a lot more to come. But its a promise for a lot more to come. But its a close call. 0ne Quarter but its a close call. 0ne Quarter of a percentage. 1 way or another quarter of a percentage. 1 way or another is not going to make or another is not going to make or hreak or another is not going to make or break the us economy and if it is this or break the us economy and if it is this economy is more fragile it is this economy is more fragile than any of us believe that fragile than any of us believe that it fragile than any of us believe that it is fragile than any of us believe that it is. Its really where they that it is. Its really where they are that it is. Its really where they are headed for the rest of they are headed for the rest of the year they are headed for the rest of the year as well as in the intermediate and longer term, they intermediate and longer term, they have intermediate and longer term, they have been raising where their they have been raising where their end they have been raising where their End Point is going to be over their End Point is going to be over time their End Point is going to be over time and its not going to be overtime and its not going to he as over time and its not going to he as low over time and its not going to be as low as it has been over the last be as low as it has been over the last few years when Interest Rates were extraordinary low, its not going extraordinary low, its not going to extraordinary low, its not going to be as high as it was pre global financial crisis, but pre global financial crisis, but somewhere in between. Probably in around the 3 range probably in around the 3 range. That should be arranged where range. That should be arranged where the range. That should be arranged where the us economy can withstand that. Where the us economy can withstand that. �. , withstand that. And we get that decision in withstand that. And we get that decision in just withstand that. And we get that decision in just over withstand that. And we get that decision in just over two withstand that. And we get that decision in just over two hours i Decision Injust over two hours and we will bring you the news as we get it. And we will bring you the news as we get it as we get it. Thank you, keep us posted as we get it. Thank you, keep us posted. We as we get it. Thank you, keep us posted. We are as we get it. Thank you, keep us posted. We are going as we get it. Thank you, keep us posted. We are going to i as we get it. Thank you, keep l us posted. We are going to stay with the subject of Interest Rates but here in the uk because the Bank Of England will make its decision on Interest Rates tomorrow. It has been battling to bring soaring prices under control. Last month it cut the cost of borrowing after a steep fall in inflation over the past year but new figures suggest it may hold off from further cuts for now. Consumer prices in the uk came in a 2. 2 for the year to august. Unchanged from the month before. That is still slightly above the bank of England Target of 2 . Core inflation that takes up the impact of volatile items like food and energy, that did go up and grew to 3. 6 in the 12 months to august. That is up slightly from 3. 3 injuly. Slightly from 3. 3 in july. Inflation slightly from 3. 3 injuly. Inflation in the uk is huge Service Sector is a problem, things like hotels and restaurants, that rose to 5. 6 up restaurants, that rose to 5. 6 up from 5. 2 injuly. Fiona Sam Carter explained those numbers. The Headline Figure remained unchanged but they were some changes unchanged but they were some changes when we looked at the subcomponents. Service Sector Inflation subcomponents. Service Sector Inflation which is an area of the inflation which is an area of the Bank Inflation which is an area of the Bank Of England is watching very closely as it considers and very closely as it considers and weighs up way to cut interest and weighs up way to cut Interest Rates actually ticked higher Interest Rates actually ticked higher. This was expected and it does higher. This was expected and it does suggest Service Sector inflation it does suggest Service Sector inflation is probably a bit more inflation is probably a bit more sticky than what the Bank Of England would like. We also saw core of england would like. We also saw core inflation, so this is the saw core inflation, so this is the Inflation Base which strips out more the Inflation Base which strips out more volatile items such as food out more volatile items such as food and out more volatile items such as food and fuel, also rose. But we Saw Food and fuel, also rose. But we saw ppi inflation, versus what we saw ppi inflation, versus what is we saw ppi inflation, versus what is called wholesale inflation and its considered a Lead Inflation and its considered a Lead Indicator for Consumer Price Lead Indicator for Consumer Price inflation, that actually felt price inflation, that actually feit 50 price inflation, that actually fell. So that is a good sign, that fell. So that is a good sign, that suggests we may see a further that suggests we may see a further cooling in cpi, the consumer headline inflation, going consumer headline inflation, going forward. But that would be, we going forward. But that would be, we would need to see service be, we would need to see Service Sector inflation cool further Service Sector inflation cool further before the Bank Of England feels comfortable with cutting england feels comfortable with cutting rates again. Cutting rates again. Household name that cutting rates again. Household name that has cutting rates again. Household name that has seen cutting rates again. Household name that has seen better cutting rates again. Household| name that has seen better days and it seems The Party is over for pip way. The 78 year old Food Container Firm for pip way. The 78 year old Food Containerfirm has filed for bankruptcy. Bosses have asked for permission to start to try to sell off the business. 0ver to try to sell off the business. Over the years to a boy has become synonymous with food storage, so synonymous that many people use its name and referring to any old plastic container. Theyve been struggling with falling sales and Wall Street is confirmed about its future. So what went wrong . What went wrong, The Party really is over for tupperware . Party really is over for tuerware . ~ , tupperware . Absolutely. Very sad day for tupperware . Absolutely. Very sad day for Tupperware Tupperware . Absolutely. Very sad day for tupperware today. What essentially has gone wrong is that there is a failure to keep up with a changing way in which we buy products and consume things. They famously were used in parties with housewives and the world has changed since the 1950s and unfortunately they have not been able to embrace the digital nature of shopping across the world and in doing so their brand has lost relevance with consumers. Its relevance with consumers. Its a far cry. Relevance with consumers. Its a far cry. We relevance with consumers. Its a far cry. We are relevance with consumers. Its a far cry, we are looking at some pictures of a Tupperware Party in the 60s and 70s, it had a revival in the pandemic and people with buying it because they were storing more at home, but that is over and i suppose the problem is cheaper copies from elsewhere. Copies from elsewhere. There are loads copies from elsewhere. There are loads of copies from elsewhere. There are loads of cheaper copies from elsewhere. There are loads of cheaper copies i copies from elsewhere. There i are loads of cheaper copies and tupperware has become a word for boxes you put your food into keep it fresh. People have not been looking for a brand as such. Any Plastic Box will do. I think also since the pandemic that has been rising cost of labour and raw materials and the increased costs of freight have really impacted the business. All these things together have led them to the place they are today. Its a sad day. Vintage tupperware is actually worth quite a lot of money so if you find that in your cupboards get selling it because they wont be any more of it. , because they wont be any more of it. ,. ,. ,. , because they wont be any more of it. ,. ,. , because they wont be any more ofit. ,. ,. ,. , of it. Really good to talk to ou. Of it. Really good to talk to Yon Thank of it. Really good to talk to you. Thank you. Of it. Really good to talk to you. Thank you. You of it. Really good to talk to you. Thank you. You are i you. Thank you. You are up to date with all your business. See you very soon. Lets Return Straightaway to our top story, that Breaking News from lebanon. Fresh explosions have been heard in southern beirut. A hezbollah stronghold. During the funerals of four of yesterdays victims of four of yesterdays victims of the pagers blasts. Three people have been reported to have been killed by exploding walkie talkies. Lets bring our Security Correspondent Frank Gardner in straightaway. A second day of this . Yesterday it was pagers second day of this . Yesterday it was pagers and second day of this . Yesterday it was pagers and today second day of this . Yesterday it was pagers and today its i it was pagers and today its walkie talkies. So hezbollahs means of communicating between themselves and from Central Command to its fighters are seriously compromised. We dont know yet how the walkie talkies were sabotaged but what we do know is that thousands have gone off, hundreds have been injured and at least three have been killed in eastern lebanon. Its a second wave of this. Clearly they were tampered with in advance in the same way presumably as the pagers were tampered with. Intelligence wise, extraordinary, but there is going to be a cost for his role. Already there is mounting criticism that international law may have been broken. Civilians are being harmed. Hezbollah is a proscribed Terrorist Organisation by many governments but civilians were nothing to do with hezbollah have been injured and the injury horrific. When these pagers go off, even though its quite a small amount of explosive, if you are relatively short sighted you have got to raise the thing to your face to look and then it goes off, there are people of lost eyes, facial disfigurement is, its horrific. I lost eyes, facial disfigurement is, its horrific. Is, its horrific. I am ust reaching i is, its horrific. I am ust reaching for i is, its horrific. I am ust reaching for a i is, its horrific. I am ust reaching for a page i is, its horrific. I amjust reaching for a page with | reaching for a page with exactly a reference to that with a doctor in beirut telling the bbc that at least 60 of those of the patients he had seen had lost at least one i with most losing a hand as well. That coincides with what you were just describing. The other reports we had of Hand Injuries and stomach injuries, Eye Injuries as a result of these explosions. 0ne Eye injuries as a result of these explosions. One of the obvious asked is why now . I think the most plausible explanation i can think of, its one that has been circulating all day but it hasnt been confirmed, is that hezbollah had discovered that one or two or some of these devices were compromised and there was the risk for israel that, assuming israel did it, their entire operation was about to be blown. So they had to use it or lose it. Its possible there is a massive own goal here for israel because if you have managed to sabotage your enemys entire communication system, they dont use Mobile Phones because they are hacked and tracked by israeli intelligence so they are using walkie talkies and pages, both of which are compromised. The most effective time to use that is right at the beginning of the Military Campaign where you are essentially blind and mute your enemy and there is no sign of a Military Campaign even though lots of people in israel are pushing for it. There is no sign of troops or columns of tanks moving up to the border, there is no sign of a big Idf Israel Defense forces push against hezbollah. So i think its quite possible that israel has shot its bolt to early and that this could be an own goal because its going to cost them. There is going to be a lot of criticism. They tend to shrug it off internationally. But militarily they might have lost the element of surprise because hezbollah is not going to make the same mistake twice. In terms of basic question about how much closer this might bring us to an all out war, what is your analysis . I dont think its that likely but famous last words. Hezbollah will retaliate definitely but they will almost certainly calibrated so it inflicts and therefore the blow they can say we have had back at the enemy and we have avenged the blood of our martyrs, but not to such an extent that israel feels compelled to mount a massive Air Campaign that decimates southern lebanon. There are plenty of voices in lebanon, they have no love for israel, but they are calling on hezbollah for a strength. Against the Back End of all of this you have got Antony Blinken who has been in cairo trying to push for a ceasefire in gaza. If they can only get and i understand they are 90 of the way there in the ceasefire deal, they have just got to do the last 10 and that is the hardest bit, getting it over the line. A lot of people are saying the biggest block is Benjamin Netanyahu who keeps finding reasons not to sign up to it. But plenty of israelis say why should we withdraw from the Rafah Border between Gaza And Egypt because hezbollah will smuggle weapons through there. That is the difficult thing, to break that impasse and if they can do that it lowers the temperature in the whole region. When you put the last two days events in lebanon into context with Work Benjamin Netanyahu said was a new war aim, how do those pieces fit together . I dont think these explosions that have happened, this wont be welcome in washington. This is the last thing the State Department or the White House want when they are trying to calm the region down. We have an election coming up they want to focus on things like that. What President Biden would love is to get a ceasefire deal