Transcripts For BBCNEWS Business Today - NYSE Opening Bell 20240920

I m ritika gupta. Welcome to business today, live from New York, us shares have made a strong start this thursday as investors wrap their heads around Thatjumbo Half Percent cut in Interest Rates from the Federal Reserve and later comments from chairjerome powell. Was it a Panic Measure in response to a sharp slowdown in the economy . Traders remember similar moves just before the Dotcom Crash the Global Financial Crisis and the pandemic. Well, in his Press Conference Mr powell was keen to dispel any such negative thoughts. The us economy is in a good place and our Decision Today is designed to keep it there. More specifically the economy is growing at a solid pace. Inflation is coming down closer to our 2 objective over time and the Labour Market is still in solid shape. Our intention is really to maintain the strength that we currently see in the us economy. Lets bring in steven schoenfeld, ceo of financial Data Provider marketvectors here in New York. We see equities rallying today. How is it setting the tone for markets and what did you make of it . , of it . The fed delivered a little more of it . The fed delivered a little more than of it . The fed delivered a little more than investors| little more than investors expected. At first the reaction was mixed, a little bit of volatility, but overnight In Asia, continuing into europe and with the New York open very positive reaction. Most indexes are at all time highs, certainly the headline indexes, and even the laggards of the last two months, tech and semiconductors, making a sharp break upwards. Perhaps the most encouraging is us small caps have had a very strong rally. They are opening over 2 up. So the market really likes the decision but also likes the narrative from the news conference. Narrative from the news conference. Just picking up from there, conference. Just picking up from there, the conference. Just picking up from there, the 50 conference. Just picking up from there, the 50 basis. Conference. Just picking up. From there, the 50 basis point cut, it didnt spook the market like some had suggested it might. What do you make of that . Do we have a soft landing, meaning we have averted a recession . We will know in about averted a recession . We will know in about six averted a recession . We will know in about six months i averted a recession . We will know in about six months if| averted a recession . We will. Know in about six months if we have achieved it but the narrative from the fed was essentially that this wasnt out of fear but it was a sort of a Catch Up, implying, but not saying, that maybe they could have even started with 25 Basis Points at the last meeting. Now we are going to give 50 Basis Points and the narrative, even the clip you just showed of chairman powell, is mission accomplished. They feel they are threading the needle. We will see. Obviously i would be happy to come back in a few months and let you know if indeed it is mission accomplished. But that is the message from the fed. At first it was doubted by the markets initial reaction yesterday afternoon, but now it is all in. �. ,. , afternoon, but now it is all in. ,. , in. And we would be happy to have your in. And we would be happy to have your back in. And we would be happy to have your back indeed. In. And we would be happy toj have your back indeed. Thank you so much. To the uk now, where in the last few hours the Bank Of England has left the cost of borrowing unchanged at 5 per cent after It Cut by a quarter of a percent last month. This time, Bank Policymakers overwhelmingly voted to keep rates where they are only one voted for a cut. The decision was widely expected by financial markets. Many thought the bank would opt to wait and see what the government does in its budget next month in terms of spending. Our Economics Editor Faisal Islam was at the Bank Of England for the decision he says there are also lingering worries about inflation but that rates are on the way down. I think the general impression that you get is of the Bank Of England ready to cut again this year butjust a little bit cautious right now. If you like the main Inflation Forest Fire is out but some of those inflationary embers are still there. They are a little bit worried they might catch fire again. We see it in the Service Sector, may be in some of the wage data, they are not entirely sure it is completely done, the after effect, if you like, of the massive inflationary shocks we have seen over the past two or three years. So they are taking it slowly. Well, in the last hour, faisal has been speaking to bank of England Governor Andew bailey. Heres what he had to say about their decision to keep rates on hold. Well, we have chosn to hold rates today, weve made a lot of progress, inflation has come down a long way. And of course we were able to cut rates in august. But ourjob is to make sure that inflation is sustainably at the 2 target. There are still some Pressures Service Inflation is still elevated. So i think we are now on a gradual Path Down that is the good news, i think Interest Rates are going to come down. Im optimistic on that front, but we do need to see some more evidence and of course we will be looking at this at every meeting. Lets speak tojennifer mckeown, Chief Global Economist At Capital Economics in london. The Boe Held Rates and that was widely expected. What was your initial reaction . figs widely expected. What was your initial reaction . Initial reaction . As you say this was initial reaction . As you say this was a initial reaction . As you say this was a completely this was a completely anticipated decision, so there was no major reaction really among economists or among financial markets. I guess the tone from the Bank Of England is a fairly encouraging one that they are not too concerned about inflation at the moment, that they do think there can still be this gradual loosening of Monetary Policyjust to take Interest Rates back to the kind of rate we are used to. But in the Banks Case that is going to need quite a gradual process just because inflation is proving to be quite elevated. Similar to the ecb they did downgrade their forecast of economic growth for the third quarter but they still didnt cut the Interest Rate. Why was that . ~. ,. , that . We did have that disappointing that . We did have that disappointing flat that . We did have that disappointing Flat Gdp | that . We did have that disappointing flat Gdp Outturn forjuly which will have contributed to that downward revision to the forecast and generally speaking most of the surveys around the advanced economies point to some softening. Maybe the impact of the previous Interest Rate hikes are starting to Catch Up with the economy is a bit. The reason not to cut despite that though is because of this high level of inflation. You heard Andrew Baileyjust Level of inflation. You heard Andrew Bailey just theyre talking about services inflation, inflation in the Service Sector in particular in the uk, which is still really elevated at rates of around 5 stop thats really quite different to the situation we are seeing in the us where Service Sector inflation is more like 3 . Service Sector Inflation is more like 396. Service Sector Inflation is more like 396. Now to the Trade Tensions between china and europe, because Chinas Commerce Minister Wang Wentao Is Holding Talks in Brussels Today with the Eu Trade Commissioner valdis dombrovskis. The European Union is considering tariffs or Import Taxes of more than 35 on electric vehicles made in china, on top of its standard 10 car import duty. Many are concerned that china is flooding europe with cheap evs, disadvantaging European Car makers. The 27 members states of the eu are due to vote on the move next week, but they are split as norway based Policy Analyst Varg Folkman explains. Germany has been the most vocal voice against this. Of course they have a large domestic Manufacturing Industry of their own and they fear the chinese will retaliate against them if they vote through these tariffs. And of course the spanish have been wavering. Their Prime Minister a short time ago seemed to turn face on the tariffs which he had previously supported. Then you have other member countries like france who are very much for these tariffs. Now to surfing, because australia is being urged to follow New Zealand and peru and give legal protection to surf areas, or breaks, to boost tourism. A new survey from the Australian National University says surfing injects around £2 Billion us into the australian economy each year, something governments need to start taking account of. From sydney, Phil Mercer reports. Surfing in australia has a proud history. A pioneer was the Hawaiian Legend who showcased his skills here more than 100 years ago. But researchers say australias will Class Surf breaks need more legal protection. Unfortunately because of a growing number of pressures, including climate change, coastal Erosion And Competition for coastal spaces, the elements that make those waves possible are on many occasions in danger. Surf breaks currently forming a Blind Spot for policymakers. Peru and New Zealand have come pensive measures to safeguard popular surfing spots. In australia the sport has great social and economic value. Sport has great social and economic value. , , economic value. From beginners to saltwater economic value. From beginners to saltwater veterans economic value. From beginners to saltwater veterans surfing to saltwater veterans surfing generates about 2 Billion each yearin generates about 2 Billion each year in australia. Its coastline is arguably its greatest national treasure. The oceanis greatest national treasure. The ocean is like a magnet for board riders. Board riders. This whole economy. Board riders. This whole economy, Cafe Board riders. This whole economy, cafe is, board riders. This whole economy, cafe is, restaurants, accommodation, its good. I love it. �. , accommodation, its good. I love it. �. , , love it. Ive had the business for 30 years. Love it. Ive had the business for 30 years, just love it. Ive had the business for 30 years, just looking for 30 years, just looking forward for 30 years, just looking forward. I pretty much see it just forward. I pretty much see it just be forward. I pretty much see it just be slow growth. We try not to grow just be slow growth. We try not to grow too fast with the Surf School to grow too fast with the Surf School because you dont want to Crowd School because you dont want to crowd out the actual ocean. Australia to crowd out the actual ocean. Australia is seen as the Country Australia is seen as the country to australia is seen as the country to serve. Australia is seen as the country to serve. I australia is seen as the country to serve. Ijust| country to serve. Ijust thought country to serve. Ijust thought i country to serve. Ijust thought i would country to serve. Ijust thought i would love. Country to serve. Ijust| thought i would love to country to serve. I just thought i would love to be able to teach thought i would love to be able to teach people thought i would love to be able to teach people and thought i would love to be able to teach people and share thought i would love to be able to teach people and share the. To teach people and share the Oy To Teach People and share the joy of to teach people and share the joy of surfing to teach people and share the joy of surfing and to teach people and share the joy of surfing and its to teach people and share the joy of surfing and its nicer joy of surfing and its nicer than joy of surfing and its nicer than working joy of surfing and its nicer than working in joy of surfing and its nicer than working in an joy of surfing and its nicer than working in an office. I joy of surfing and its nicerl than working in an office. It is nice than working in an office. It is nice to than working in an office. It is nice to be than working in an office. It is nice to be on than working in an office. It is nice to be on the than working in an office. It is nice to be On The Beach. Than working in an office. It. Is nice to be On The Beach and in the is nice to be On The Beach and in the water is nice to be On The Beach and in the water every is nice to be On The Beach and in the water every day. Is nice to be On The Beach and in the water every day. For. In the water every day. For those chasing in the water every day. For those chasing the in the water every day. Those chasing the perfect in the water every day. those chasing the perfect Wave Surfing is about embracing the power of nature. For them it is a gift that should be protected. In other news. Boeing is suspending the jobs of Tens Of Thousands of staff in the us in response to a strike that has shut down production of some of its airplanes. The Aerospace Giant said us based executives, managers and staff would be asked to take one week of furlough every four weeks as long as the Stand Off lasts. More than 30,000 Factory Workers went on strike on friday over Pay And Retirement packages. The social Media Platform X says the sudden reappearance of its app in brazil was caused by a change in network providers. X formerly twitter said the restoration of the app was due to a change in network providers. Many brazilian users welcomed the development, but x said it expected the platform to be inaccessible again soon. X was blocked in brazil last month for refusing to remove dozens of right wing accounts accused of spreading disinformation. Lets Ta Ke lets take a look at the markets will stop over in europe we are seeing stocks higher there. Europe we are seeing stocks higherthere. Markets europe we are seeing stocks higher there. Markets digesting the bank of Englands Decision and the fed decision yesterday. Over In Asia it is a similar story. Stocks higher across the board. That is all we have time for. Thanks for watching. Stay with us on bbc news. Hello from the Bbc Sport Centre six more games in the Champions League on thursday. Five time Winners Barcelona are in action they go to monaco. Start to the season. Five wins out of fivesees them sit top of la liga, the only team with a 100 winning record. The last time they won the Champions League, however, was back in the 2014 15 campaign. Monaco Beat Barcelona in pre season, but Barca Boss Hansi Flick says his side are ready to put on a permonance. We know it is a really good team. They won against us and this is maybe. But it is now a new situation. We have a new