Cut of half a Percentage Point on wednesday has spurred investors sending us markets into record highs. Traders cheered the Central Banks big call cutting the main Interest Rate to between 4. 75 and 5 . Opening the door with a bang on the first rates Easing Cycle in more than four years. President biden hailed the move as good news for consumers but said there was more work to be done in taming inflation. Lets be clear. The fed lowering Interest Rate is not a declaration of victory, its a declaration of victory, its a declaration of victory, its a declaration of progress. Its a Signal Weve entered a new phase for a colony and are recovery. I believe its important for the country to recognise this process because we dont, the progress we made will remain locked in the fear of negative mindset dominating our economic outlook since the pandemic began. Fed officials have made it clear that this cut was only the beginning and investors seem to have liked what they heard. For more, lets get to New York with our North America Business correspondent, ritika gupta. Us stocks reached a fresh record high On Thursday a day after the Federal Reserve kicked off its Easing Cycle. The Snp 500 rose i7 extending this years gains to 20 , meanwhile the dow surged over 500 points topping 42,000 for the first time. The majority of Industry Groups closed out the session higher big tax has outperformed as the Basis Point RateCuts Bird investors to return to a risk on mood. Tesla and nvidia gained. Stocks that are traditionally tied to economic growth also jumped, financial giantjp morgan chase, Caterpillar And Home depot also organza. Better than expected obverse claims data added to the optimism suggesting the Labour Market remains healthy despite slow down in hiring. The message that a deep cut in a relatively strong economy will ultimately fend off the risk of recession. That is reigniting hopes of a soft landing for the economy. So whats driving all of this . For more im joined by gervais williams, head of equities at premier miton. Welcome to the programme. What is driving it . Its welcome to the programme. What is driving it . Is driving it . Its been interesting is driving it . Its been interesting how is driving it . Its been interesting how much| is driving it . Its been interesting how much Interest Rates have started picking up. At a time when Stock Markets are already at very elevated levels, what is during investors is that us Central Bank has been happy to hold Interest Rates at elevated levels to suppress inflation for well over a year and when the moment has come to cut Interest Rates, they notjust cutting rates, they are cutting them quite rapidly so investors think that they will have a narrow channel where there will be able to keep inflation under control but keep economic growth alongside it. Control but keep economic growth alongside it. What does this tell is overall growth alongside it. What does this tell is overall about growth alongside it. What does this tell is overall about the this tell is overall about the us economy . What does the Picture Look like . Picture look like . What is interesting Picture Look like . What is interesting is Picture Look like . What is interesting is how Picture Look like . What is interesting is how much l Picture Look like . What is| interesting is how much it Picture Look like . What is interesting is how much it has held up so well despite Interest Rates being so high for so long. If you ask most investors a couple of beers ago he raised Interest Rates over 5 would the us economy slow substantially, everyone would have thought of recession would come. It does not so the fact it is held up so well is surprising investors and they are still hoping now that the fed can narrow the Interest Rate reduction and keep it on a very narrow trail of keeping the us growth going. The us economy is growing better than expected and is continuing to grow better than expected. But continuing to grow betterthanexpected. Continuing to grow betterthanexected. � betterthanexpected. But if we brina it betterthanexpected. But if we bring it back betterthanexpected. But if we bring it back to betterthanexpected. But if we bring it back to the betterthanexpected. But if we bring it back to the uk, betterthanexpected. But if we bring it back to the uk, there i bring it back to the uk, there appears to be some worries for the economy. Following what is expected to be a Pencil Budget . Thats right. Painful budget. We had long Standing Labour disputes which meant that that inflationary pressures coming in. Although the economy slowed quite a bit some of the external features which are opening up to now be moving against us. In the middle East Energy prices moving up by about 7 in the last few days and that is going to add to inflationary pressures and budget coming up or that will be a Pencil Budget the government will need to spend and so unfortunately Bank Of England chose not to cut Interest Rates yesterday and they cut it earlier this year but they will have to be more careful about cutting Interest Rates if they want to suppress inflation whereas in the us inflationary pressures have been slightly better. We had the release been slightly better. We had the release of been slightly better. We had the release of the been slightly better. We had the release of the consumer| the release of the Consumer Confidence Index and they showed that since the end of August Confidence has fallen by seven points to 20 overall. Any idea in terms of what aspects consumers are worried about particularly . About particularly . They are particularly about particularly . They are particularly wide about particularly . They are particularly wide about about particularly . They are particularly wide about the i particularly wide about the budget. The government is a is that it will be a Pencil Budget, i think there will be sweeping changes almost inevitably there will be tax increases which will affect peoples decisions about spending in the Future and corporate investments are generally we are anxious about the nature of the budget. 0n the nature of the budget. 0n the other hand the Uk Economy when it comes can cut Interest Rates just as much as the us hopefully Lead later busier or into next year we can also cut Interest Rates just like the us. Interest rates ust like the us. , Interest Rates ust like the us. ,. , us. Very quickly we are coming on to japan us. Very quickly we are coming on to japan and us. Very quickly we are coming on to Japan And Asia us. Very quickly we are coming on to Japan And Asia in us. Very quickly we are coming on to Japan And Asia in a on toJapan And Asia in a moment, crossing to our correspondence shortly. 0f Correspondence shortly. Of course so many Central Banks have been watching what the us did. Remind us why the us matters so much . Its did. Remind us why the us matters so much . Matters so much . Its the [arrest matters so much . Its the largest economy matters so much . Its the largest economy in matters so much . Its the largest economy in the i matters so much . Its the i largest economy in the world matters so much . Its the largest economy in the world as a starting point. What the us does sets the Exchange Rates and so if you dont techno of the us then of course the Exchange Rate can play out in the japan Resort Couple weeks ago that the Exchange Rate in japan lived around in a violent way in the markets and stability. The japanese Central Bank has chosen not to increase Interest Rates today, so in fact they are facing a different dilemma or stop their rates are being too low and they would have to increase them over the next few years. I understand they are also introduced measures to try and float or kickstart the Property Market as well . Market as well . Thats very much china. Market as well . Thats very much china. ChinA Market as well . Thats very much china. China has market as well . Thats very much china. China has A Market as well . Thats very | much china. China has a real problem with axis bills, prices have been falling pneumatically, people have real anxiety about local Property Market that is really china in a very difficult position. They want to cut Interest Rates but on the other hand you feel it has a problem with the currency and for that reason they have to be very careful. To be very careful. Gervais williams, to be very careful. Gervais williams, thank to be very careful. Gervais williams, thank you to be very careful. Gervais williams, thank you very i to be very careful. Gervais williams, thank you very much indeed. Staying with Central Banks and the cost of borrowing, we go to japan now as its Central Bankjust made its latest move keeping the main Interest Rate on hold at 0. 25 . It has been a tumultuous time for the japanese economy of late. Skirting recession, struggling with inflation and a fluctuating yen. You may remember the Bank Ofjapan made a Landmark Shift away from decades of economic stimulus, hiking the cost of short Term Borrowing to a quarter of a percent back injuly. Suranjana tewari is in our Asia Business Hub for us. So why is Japans Economy so different from places like the us . You mentioned some of the challenges, Policy Makers are having to contend with when it comes to Japans Economy. The Central Bank is known for being cautious and not wanting to shock the economy. So unlike the rest of the world, it has kept Interest Rates near a below zero near or below interest. To boost economic growth. Low or even negative Interest Rates come with their own set of problems. For example beaming exporters make less money from the goods they sell. Bus the Rate Hike that was mentioned injuly pushed began higher and build turmoil on world markets. It is what it intended to do in august, inflation did pick up injapan. The country suffers from low prices rather than rising prices. But the bank, Central Bank did say that because of that market turmoil, it will keep the rates steady this time until markets stabilise. Until markets stabilise. Lets Ust No until markets stabilise. Lets just go to until markets stabilise. Lets just go to the until markets stabilise. Lets just go to the wider until markets stabilise. Lets just go to the wider region. | just go to the wider region. Talk us through the sentiment . Markets today are up across asia, partly because of what happened on Wall Street overnight. They are also bathing in the glow of that Rate Cut by the Federal Reserve and now the yen is edging up as well. As a result of the doj decision. Because there is no change, investors will be looking closely at what was said by the Central Bank. Policymakers signalled improved consumption going forward, and confidence in a solid economic recovery that may allow another Rate Hike in the coming months. That is something that we are seeing across the region. 0ptimism, good sentiment for the coming months after several years of uncertainty and poor sentiment. Years of uncertainty and poor sentiment years of uncertainty and poor sentiment. Suranana tewari, thankyouh sentiment. Suranana tewari, thankyouvery sentiment. Suranjana tewari, thank you very much sentiment. Suranjana tewari, thank you very much indeed. | the European Union is giving 11 Billion to help countries hit by severe flooding in central and Eastern Europe which has killed dozens of people and destroyed buildings, bridges and roads. The flooding was caused by record heavy rainfall generated by storm boris. With austria and the Czech Republic first affected. The floods then spread to poland, Romania And Slovakia and then onwards to germany, hungary and now italy. Causing widespread devastation. Here are some of the scenes from traversara in Northern ItalyOn Thursday. Destruction that of course comes at a huge Cost NotjustIn Human Lives and livelihoods, but when it comes to clearing up and rebuilding. Something that will come to the door of the Insurance Industry. With natural disasters now costing over 100 Billion a year. Joining me now is Matthias Truested head of global P C Insurance at allianz se. Welcome to the programme. The impact of severe weather on economies, on Countries Stop of course and it goes on to the Insurance Industry. What is it like at the moment . Like at the moment . First of all a very like at the moment . First of all a very good like at the moment . First of all a very good morning. All a very good morning. Extreme weather is not something new but the way it has been developing in the last years certainly seems to be the course. Things have to change. The weather is changing, that is a fact. We have more Extreme Weather and that its on the Insurance Industry and first of all it is the reason we are here, to protect our customers, to really protect their property and protect what is most valuable to them. At the same time we need to protect ourselves, as the world and an economy in a better way and we need to develop more resilience, we need to adapt to the changing weather because its a fact. For the Insurance Industry this means first of all good risk understanding, continuously upgrading developing our models around standing and it also means protecting our customers, you talked about record losses. There is a lot that can also be done once you are settling claims. We are not here to settle claims and we want to protect our customers and want to support our customers and really protecting themselves better for Future events. Haifa better for Future events. How does the better for Future events. How does the insurance better for Future events. How does the Insurance Sector does the Insurance Sector protect itself . Just talk me through some of the mitigation movements that can be done, particularly going back, let me take you back to Hurricane Katrina in 2005. That was the record insurance claim since 1900. Surely with Climate Change getting worse and worse as you have said, the Insurance Industry will be doing something to protect themselves as well, wont they . In a something to protect themselves as well, wont they . As well, wont they . In a way, es. As well, wont they . In a way, yes but as well, wont they . In a way, yes but the as well, wont they . In a way, yes. But the first as well, wont they . In a way, yes. But the first part as well, wont they . In a way, yes. But the first part is yes. But the first part is always good and proper risk understanding, that is the most important part and we are pretty sure we can deliver that. The second part is to make sure you have a properly diversified portfolio and you have Accumulation Control and last, obviously, is as it was a possibility of insurance to protect the balance sheets, to really be able to have the Capital Base to support your customers now and in the Future. We have to protect ourselves in order to be able to protect our customers now and in the Future. And in the Future. What is all that is doing and in the Future. What is all that is doing two and in the Future. What is allj that is doing two premiums . Well, in a way if the risk of loss is rising, than the premium must follow in a way. That doesnt apply to each and every risk, everywhere. But it is the same if you look at a Return Period if they are the higher risk of heavy rain affecting more buildings, affecting more buildings, affecting buildings in a different way than it did in the past, and there is higher loss than the premium must follow, the risk is rising. There are measures and that is why protection is so important, because it cant be insurance alone. For example if house has been hit by a severe flood, and you are rebuilding in the same way it has been built before, you are not doing anything for protection, has a high likelihood the next loss will be even higher, caused by inflation and economic growth. If you adapt, for example, by inserting Flood Proof windows and other things as well. There is a chance of doing things about this. So sorry, caettin things about this. So sorry, getting to things about this. So sorry, getting to what things about this. So sorry, getting to what can things about this. So sorry, getting to what can be things about this. So sorry, | getting to what can be done things about this. So sorry, getting to what can be done but we ran out of time. Matthias truested, thank you very much. Around the world and across the uk, you are watching bbc news. To corporate charitable giving now as the amount of money donated by the uks biggest 100 listed companies the ftse100 to charities is not keeping up pace with profits. Thats the warning from the Charities Aid Foundation. In a new report it found that the amount donated over the last decade fell some 30 compared to the growth in profits. Neil heslop is Chief Executive of the Charities Aid Foundation and hejoins me now. Welcome to the programme. Why this disparity, do you think . Good morning. I guess it is a somewhat complex programme. 0ver somewhat complex programme. Over the corporate profits across the ftse100 have gone up across the ftse100 have gone up some 49 and yet the deployment of those profits to Community Investment is down 13 and when you take into account inflation, that is 34 as a whole. We think that is a worrying trend that we need to take action to stem and reverse. There is some fantastic Case Studies where organisations do amazing Work And Commitment very significant amounts of support to their local communities and we want to inspire other businesses to follow that Lead. Im to inspire other businesses to follow that Lead. Follow that Lead. Im looking at the figures, follow that Lead. Im looking at the figures, 2024 Follow that Lead. Im looking at the figures, 2024 the at the figures, 2024 the donation from the ftse100 was 1. 8 2 billion. Last year it was 1. 85 billion. What is that drop in funds . What is the impact having on charities . Charities are dealing having on charities . Charities are dealing with having on charities . Charities are dealing with a having on charities . Charities are dealing with a triple are dealing with a triple whammy. They are not like businesses in the sense that they can pass on their costs to customers. They have the challenge of falling income, increasing costs and increased demand on the services. Therefore, the diverse purgation of their sources have been incredibly important. For businesses who have a vested interest in notjust their own business success, with wider economic growth and the social cohesion that comes from that, it is really important that along with investments in dividends and technology and people and marketing proposition, component when we suggest the best practice is 1 of pre tax profits should also go into the communities from which those businesses are delivering their services. Share delivering their services. Are ou able delivering their services. Are you able to delivering their services. Are you able to give delivering their services. Are you able to give us a comparison of how the uk is doing compared to other developed countries . There has been a Trend Developed Countries . There has been a trend that developed countries . There has been a trend that in developed countries . There has been a trend that in a developed countries . There has been a trend that in a relative i been a trend that in a relative term the uk has been slipping. In some parallel research that we do on an annual basis with the world giving index, some ten years ago the uk would have beenin ten years ago the uk would have been in the top ten of countries around the world. We surveyed more than 140 countries over that recent years we have actually declined down to 22 and there are a whole load of complex reasons that sit behind that. But the Prime Minister has called for a decade of national reunion and one component is used to be a renewal in our country. Heii renewal in our country. Neil heslop. Renewal in our country. Neil heslop, thank renewal in our country. Neil heslop, thank you renewal in our country. Neil heslop, thank you very renewal in our country. Neil heslop, thank you very much indeed. To the Film Industry now and the evolving issue of ai generated content. As the hollywood Awards Season kicks off could an artificial Intelligence Programme ever win best film . And what would that mean for the Movie Industry including its actors, directors and other creative talent . My colleague, ben thompson, has been speaking to the Lead-negotiator'>Lead Negotiator for Sag AftraThe Union at the heart of last years hollywood actors strike. I would say it is not about whether ai will be used in the business. It is about how our i will be used in the business and what kind of wide rails and limits their rather can be put on it. Ai is not in limiting itself. Humans are decisions about al and how it is implement it, so we can decide to do it in a way that is more forward thinking, that cares about its impact on people. The idea that somehow we are going to block ai, stop it from happening as much as some people would like that to be the case, that is not possible. Past History Of Technology from the invention of electricity to the invention of electricity to the invention of the internet have proven that over and over again. Have proven that over and over a. Ain. Have proven that over and over aaain. , , again. The Movie Industry is Alwa S again. The Movie Industry is always evolving, again. The Movie Industry is always evolving, there again. The Movie Industry is always evolving, there have | always evolving, there have been developments at our game changing. Everything from the move from Silent Movies to the talkies from black and white to technicolor. How would you describe the significance of this revolution, ai, in the Movie Industry . This revolution, ai, in the Movie Industry . Each of those developments Movie Industry . Each of those developments did Movie Industry . Each of those developments did recovered l Movie Industry . Each of those l developments did recovered on the industry and it certainly changed who were the winners and losers in that technological advancement. Whats unique about this moment is as of the first time we have had the technology that can make it appear as though you have done something that you did not really do in a very intimate sort of way, in a Close Up and personal way. That has all kinds of implications, not only for people having to compete against themselves for jobs, which is itself horrifying, but also with people having things attributed to them that they did not agree to them that they did not agree to or do not want to be part of. That is not something we have to face before. And you can see the full interview in this weeks talking Business Weekly here on bbc news. From films to Books Last Night the Business Book awards took place at a big event in central london. Among the winners, a title by Amy Walters Cohen claiming the prize for book of the year. The title of that book ruthlessly caring and other paradoxical mindsets Leaders need to be Future fit. Quite a headline, isnt it . Im joined now by the author, Amy Walters Cohen. Huge congratulations. Thank you forjoining us. Lets start off with that title. What does that mean, break it down for us . Thank you, yes. Good morning and very exciting Evening And Pleasure to be here talking about the book. Basically the title is all about how difficult it is to be a senior Leader in a modern age, how you need to embrace a paradoxical both Hand Approach notjust your Tactical Business Problems but to your core and identity. As you been hearing on the programme is political volatility in generative ai, climate crisis causing floods and a whole range of other issues. Theres a lot to be dealing with with the challenges out there. Basically enough to do what always been done. �. ,. , done. Im not sure how the chapters done. Im not sure how the chapters have done. Im not sure how the chapters have been done. Im not sure how the chapters have been divided done. Im not sure how the i chapters have been divided in the book but give me an example of a paradoxical mindset . I5 of a paradoxical mindset . Is five of a paradoxical mindset . I3 five mindsets covered in the book. To give an example a one is about being responsibly daring, so being that careful reader of the Big Business is able to steer the ship and take responsible decisions and think about long Term Value Creation and the daring risk taking, bold entrepreneur who is not afraid to fail and move things forward and take all decisions. There are five mindsets covered in the book and that is an example of one of them. I wonder if you can share your number one Business Book that you will go to, time and time again, sitting there on your bookshelf . Bookshelf . Yes, is a Booki Think is a bookshelf . Yes, is a Booki Think is a very bookshelf . Yes, is a Booki Think is a very good bookshelf . Yes, is a Booki Think is a very good best i think is a very good best secret call that beautiful constraint, all about how you can expand your thinking by looking up challenges and framing them in different ways and its a book i return to time and time again and people dont seem to have heard that much about what i think it is a fantastic way to help Leaders look at difficult situations and expand their thinking by looking at challenges. Aha, and expand their thinking by looking at challenges. A huge congratulations looking at challenges. A huge congratulations to looking at challenges. A huge congratulations to you, looking at challenges. A huge congratulations to you, thankj congratulations to you, thank you for showing those nuggets with us. Thank you. Stay with us, theres plenty more coming up us, theres plenty more coming up on bbc news. Hello, there. For some parts of the uk, there is a big change on the way, weather wise, particularly in the south where, On Thursday, we saw a lot of sunshine. Temperatures in london got above 26 celsius. But were watching this area of low pressure swirling up from the south, increasingly bringing some showers and thunderstorms over the next few days, snd the rainfall is really going to accumulate. Some spots could be looking at around a Months Worth of rain from these intense downpours and thunderstorms. However, only really in the south further north, it remains largely dry. The best of the sunshine across north west england, northern ireland, western scotland. Eastern scotland, North East England likely to be plagued by a lot of cloud, which will make it feel rather cool. And actually, that cloud has been rolling its way a long way inland, taking its time to burn back towards the East Coast through the day on friday, but it should do. Staying quite murky, though, for parts of eastern scotland, northeast england. And then, down towards the south of england, perhaps into the midlands, wales, we will see some of these showers and thunderstorms popping up, some of which will give a lot of rain in a short space of time. 23 degrees in london. Just 15 if The Cloud lingers there in aberdeen. And as we go through friday night, that cloud again rolls a little bit further inland. Still the chance for some showers and thunderstorms rumbling around across the channel islands, getting back into southern counties of england. A mild Night Forjust about all of us, a mild start to the weekend. And again on saturday, down towards the south, well see these showers and thunderstorms across southern counties of england into east anglia, the midlands, parts of wales. But for northern england, northern ireland, western scotland, well see some sunshine. Eastern scotland, North East England still plagued by that cloud, perhaps the Odd Spot of drizzle. Could be quite misty and murky around some of the coasts. And temperatures, if anything, coming down a little bit from where they have been. And then into sunday, it looks like well see some slightly more persistent, heavy, thundery rain, again affecting southern parts of the uk, east anglia, the midlands, wales. Further north from there, largely dry. Best of the sunshine in the northwest, more cloud into the northeast, so the pattern continues. But a change in the Weather Pattern next week it does turn really quite unsettled. Showers or longer spells of rain, could be quite windy, and it turns quite a lot colder as well. Good morning. Welcome to breakfast with Naga Munchetty and charlie stayt. 0ur headlines today. The bbc is contacted by more women who say they were assaulted by the former boss of harrods, mohamed al fayed, when they worked for him. Rising tensions in the middle east. Israel carries out dozens of strikes on Southern Lebanon as hezbollahs Leaders warn that red lines have been crossed. Domestic abuse specialists will be embedded in 999 Control Rooms as part of a plan to halve violence against women. Good morning. A Gravy Train for government lawyers. That is how a furious Alan Bates has described a scheme to redress victims of the post office