In terms of iran and the risk to exports directly out of iran, thats about 1. 7, 1. 8 million barrelS Per day. And obviously those, the Export Facilities in iran, are those probably at greatest risk in the aftermath of what happened on tuesday night. But i think, you know, weve had a muted reaction, partly because markets are still focussed on a comparatively weak chinese economy and expectations that the Oil Market more broadly next year is looking like it may head into surplus. So, you know, very much mixed messages at the moment coming out of the crude market. Lets go straight to New York and get the latest from our correspondent there, ritika gupta. We saw there prior to starting to rise once again, particularly off the back of those comments by president biden. Explain what he said. We are seeing biden. Explain what he said. Are seeing Oil Prices spiking after the back of president biden� s comments, saying they are considering the possibility of israel launching a counterattack on iran and targeting those oil facilities. We know iran is a major player in the oil industry, it accounts for about 4 of the worlds oil supply. Some analysts are saying price of oil could rise to 200 a barrel if irans facilities are attacked at the markets are complacent about this. Others are saying that there are large stockpiles of oil and backward step in if needed. And you mentioned chinese demand. But oil had a sleepy september but it seems to be waking up to those impending risks. We are seeing it surge this week. find seeing it surge this week. And it is fair to seeing it surge this week. And it is fair to say seeing it surge this week. And it is fair to say that it is fair to say that investors are conflicted right now and do not know whether to worry about what is happening in the Middle East as far as Oil Prices are concerned or looking at more fundamental issues around the us Economy And Today we had better than expected Service Sector figures. It was overshadowed by these concerns in the Middle East. find overshadowed by these concerns in the Middle East. In the Middle East. And we saw that la in the Middle East. And we saw that play out in the Middle East. And we saw that play out this in the Middle East. And we saw that play out this week, that play out this week, overshadowing some of the more positive economic data. We saw the us Service Sector expanding at the fastest pace since february 2023. It was above 50, that signals expansion. They were stronger business activities. It suggests the economy was it was on a stronger Footing Economy was it was on a strongerfooting in economy was it was on a stronger footing in the third quarter but this was in stark contrast to the manufacturing figures this week that saw six months of straight contraction. With all these mixed signals in the economy, we can expect a lot of volatility and i spoke to a consultant at Edward Jones and she said that investors should lead Lee Mcqueen into this volatility to find opportunities. Should lean into this volatility. We are moving quite nicely thus far this year in the S P 500. Were up nearly 20 . But as you noted, were headed straight into a seasonally choppier october period. And we are facing mounting walls of worry in the market, including that upcoming Election Day on November 5th and, of course, the ongoing Port Strike here on the eastern seaboard, as well as growing escalations and tensions in the Middle East. So what wed say is investors and markets can really prepare for bouts of volatility ahead. After a nice 20 rally or so in the S P 500, we would say thats a natural output and a natural next step in terms of what might happen in markets. Were probably due for a period of consolidation or a pull back. But we really do think investors can lean into any Market Volatility as an opportunity. And thats because the broader fundamental backdrop, one where the fed is cutting rates, where inflation is moderating, and by the way, the economy, the us economy in particular, looks headed towards a soft landing. Thats a pretty good backdrop for long term investors. So wed say lean into any volatility, use it as opportunities to diversify, rebalance, Add Quality Investments at better prices. An upcoming election, tensions in the Middle East, labour strikes, a lot of risks on the horizon so we can expect a lot of volatility. Horizon so we can expect a lot of volatility the pound has had its biggest one Day Fall against the dollar in a year, after comments by the governor of the Bank Of England. In an interview with the guardian newspaper, Andrew Bailey hinted the bank could cut Interest Rates more quickly if Price Rises remain under control. The bank of Englad Cut rates from 5. 25 to 5 in august, which was the first drop in more than four years. It has two more meetings left this year to decide on rates in november and december. Joining me is kallum pickering, Chief Economist at peel hunt. We are all focused on that cost of borrowing right now. Lots of people reading into any sort of rhetoric, any language from the Bank Of England about which weight rates are headed. This feels like a significant announcement, albeit in an interview. Announcement, albeit in an interview announcement, albeit in an interview. ,. ,. , interview. We look for a tone chan. E interview. We look for a Tone Change before interview. We look for a Tone Change before they interview. We look for a Tone Change before they change i change before they change behaviour. We were the markets are expecting Bank Of England to cut Interest Rates in november, in the context of that meeting, this is not a real surprise. That meeting, this is not a realsurprise. But that meeting, this is not a real surprise. But it is what happens in december had of this week the markets had not expected Bank Of England would cut rates in december but this sends a signal that if inflation comes down, that may be meeting on the table for a lowering of Interest Rates. Does this tell us the bank is calm about the direction of travel when it comes to inflation . It has been a problem for so long, Price Rises were outstripping their target. Does this tell us they are, about its now . It suggests are, about its now . It suggests a decree are, about its now . It suggests a Degree Of are, about its now . It suggests a Degree Of confidence are, about its now . It suggests a Degree Of confidence that a Degree Of confidence that inflation will sustainably fall towards the Bank Of Englands 3. 2 target. The economy creates inflation from also to directions so it Bank Of England is always looking at various things. This year they have mainly been focused on wages and domestically orientated service prices. It is in those parts of the economy that they have found positive signals to now make this Tone Change. I would just say, we have at least two months of uncertainty ahead before we can get to growing real confidence that the Bank Of England could cut in december, as your previous guest mentioned, there are Port Strikes in the us, and escalation of tensions in the Middle East, so its not clear whether we wont get some spikes in inflation in the weeks to come, so december is a hopeful case but not yet a Base Case in my view. To tech now and openai has just become one of the most valuable Start Ups in the world. The maker of the Ai Chatbot chatgpt has been run as a not for profit since it was founded in 2015. According to reports, it is changing its corporate structure from a not for profit to a profit making firm, hence the surge of interest from investors. So, to the numbers. It has raised 6. 6 Billion in funding. Major Backer Microsoft is increasing its Stake And Chip making giant nvidia is coming on board. The deal values openai at 157 billion. Thats similar to the Investment Banking Giant goldman sachs and more than most of americas biggest companies. According to the financial times, investors have to agree not to put money into Rival Ai companies. Fiona cincotta from City Index told us there was a scramble to get in on the deal. This was very oversubscribed. There was a lot of demand. That is basically because openai is expected to lead the next wave of generative ai. The expectations are for revenue to almost triple next year to 11. 5 billion, from its roughly 3 Billion level at the moment. So this is the stuff that is really expected to be at the foundations of the next level of generative ai. Because of that, there was really strong demand and, as a result, there was also very particular arrangements to the deal for funding. For example, there were requirements for exclusivity, and this as you also mentioned, was done on a convertible notes basis. So basically, that conversion to equity is very much hinging on this successful structural change from that for profit, sorry, into a for Profit Organisation from the nonProfit Organisation that it is at the moment. To the worlds richest man now Elon Musk. The multi Billionaire Owner of Tesla And Spacex is due to testify today before the us financial watchdog, the sec, over his 44 Billion Dollar Buyout of twitter. Regulators are investigating whether he took too long to disclose he was building up a stake in twitter before acquiring the social Media Platform in 2022. Musk was due to testify back in september but failed to show up. Social Media Consultant Drew Benvie told us more about his fractious relationship with financial regulators. Hes had other things on at the time. He let the the lawyers that turned up to the hearing, which was due to be in los angeles, know that with three hours notice, he had a Rocket Launch to attend in cape canaveral. So he didnt turn up. And Elon Musk has had a history of accusing the sec of overzealous scrutiny of his affairs. But what were dealing with here iS Potential misreporting of how many shares he had in twitter before he acquired it, which could potentially have distorted the value of twitter when he bought it, which is whats really at stake here. Yeah, well, he has been subpoenaed in the past to turn up, and he should, we hope, turn up today. But twitter, or x as it is now known, is under scrutiny everywhere for misinformation, disinformation, the lack of safety of the Content And User numbers are plummeting. Currently here in the uk, where i am, just in the last month alone, 10 down and advertisers are less willing to put their money behind x now and advertiser numbers are plummeting. Twitter or X Or Musk or whoever this is behind it are now threatening to sue the advertisers for not putting money into it. So theres all sorts of chaos going on and the world is looking to see, will he turn up today and what will be thrown at him . Stay with us here on bbc news. You are watching bbc news. We will get the latest from the Middle East in a moment but we will turn to another important story. In his first foreign trip, the new Secretary General of nato, mark rutte, has visited ukraine. He met president zelensky and reiterated the western alliances support to ukrainians in the face of russian aggression. This is my first time here as nato Secretary General, and it was important to me that i come to ukraine at the start of my mandate to make crystal clear to you, to the people of ukraine and to everyone watching that
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