we start in the us where the most powerful person in globalfinance — the chair of the federal reserve — has signalled the end of ultra—cheap money is around the corner. us interest rates — which affect the cost of borrowing around the world — have been kept near to zero since the pandemic hit in early 2020. and the fed has held off raising them at this week's meeting. butjerome powell says higher rates, quote: �*will soon be appropriate�* as the economy recovers and inflation surges. our north america business correspondent michelle fleury has more. the federal reserve is going to be raising interest rates for the first time in three years. the move could come as early as march as inflation cast a shadow over the world�*s largest economy. when interest rates are near zero that is typically because an economy needs help and business needs help and thatis and business needs help and that is what the fed did to shelter the us economy from the west effect of the pandemic backin west effect of the pandemic back in march 2020. fast forward to today and the job market strengthening officials are under pressure to act again, this time to rein in inflation with promises that make as prices in the us rise. he was to roam power to the drivers have a higher inflation have been predominantly connected to the dislocation caused by the pandemic price increase has now spread to a broader range of goods and services. broader range of goods and services-— broader range of goods and services. ~ . , ., ., , services. wages have also risen briskl . services. wages have also risen briskly. there _ services. wages have also risen briskly. there are _ services. wages have also risen briskly. there are those - services. wages have also risen briskly. there are those who . briskly. there are those who believe the _ briskly. there are those who believe the fed _ briskly. there are those who believe the fed is _ briskly. there are those who believe the fed is behind - briskly. there are those who | believe the fed is behind the curve that it should act faster to curb rising prices. others, however, like erica gresham who used to work at the federal reserve bank of new york say a more gradual approach is warranted.— more gradual approach is warranted. . , warranted. there are still some weaknesses _ warranted. there are still some weaknesses to _ warranted. there are still some weaknesses to the _ warranted. there are still some weaknesses to the labour - warranted. there are still some i weaknesses to the labour market and these are a concern and a pandemic may not be god. if a new variant comes along that is a real problem. find new variant comes along that is a real problem.— a real problem. and what does this mean _ a real problem. and what does this mean for— a real problem. and what does this mean for main _ a real problem. and what does this mean for main street? - this mean for main street? higher borrowing cost will make loans more expensive and if that slows inflation, however, the thinking is that that will help everyone. still, the central bank�*s focus on inflation does seem to have unnerved wall street with the us market falling sharply. and thatis us market falling sharply. and that is michelle. scott anderson is chief economist at bank of the west in san francisco. welcome to the programme, scott. first of all, your reaction to whatjerome powell had to say? act how do you think they may act how the by those at the press conference about whether they could raise rates at every meeting this year he did not really give a clear response to that either which spooked the market, didn�*t it? that either which spooked the market, didn't it?— that either which spooked the market, didn't it? they did not reall la market, didn't it? they did not really lay out _ market, didn't it? they did not really lay out what _ market, didn't it? they did not really lay out what they - market, didn't it? they did not really lay out what they would | really lay out what they would do past the march rate hike but he did not rule out the possibility of even a 50 basis point move or even... so the markets are panicked as a result of that. checking the markets a few minutes ago and the fed futures market is pricing in 4— five credit point hi. that is a little too far ahead of ourselves but i think possibility of three or four rate hikes and certainly a possibility this year. in terms of challenges _ possibility this year. in terms of challenges facing - possibility this year. in terms of challenges facing jerome l of challenges facing jerome powell and his team as they navigate the weeks and months ahead, talk us through them. there is an issue of inflation and you mentioned the jobs market, there is a lot of americans who have not returned to the workforce following the pandemic and also there is president biden �*s huge infrastructure spending which will impact the economy as well. , ., ., ~ , will impact the economy as well. ., ., ~ , ., well. jerome powell kept going back to the _ well. jerome powell kept going back to the statement - well. jerome powell kept going back to the statement that - well. jerome powell kept going back to the statement that this i back to the statement that this is not much different economic expansion than the one the us had last time in the last few recoveries. he thinks it is a lot stronger today in the labour market is we have seen in the us in a0 years so he thinks that may take a little more monetary medicine to rein in inflation. i think it is a little tricky right now. we�*re going to come out very strong in the fourth quarter, we think, be over 7% gdp growth and in the first quarter things will slow down a lot. we are in receipt seem a services spending, slowing down, things like restaurant biz visits and travel and tourism coming down so we could slow to 1.5% gdp growth the first quarter but we are confident that the consumer and economic growth will rebound in the second quarter as long as we get past this omicron variant search. thank ou omicron variant search. thank you scott _ omicron variant search. thank you scott for _ omicron variant search. thank you scott for your _ omicron variant search. thank you scott for your thoughts i omicron variant search. thankl you scott for your thoughts and analysis and predictions there as well. analysis and predictions there as well. it�*s been another volatile session on wall street — with an early bounce wiped out once fed chiefjerome powell started delivering his comments. let�*s get an investor�*s perspective on this — these markets in asia are at 15 month flows currently and you can see japan is down over 3% and hong kong nearly 3% lower. look at the price of brent, down nearly 1% but 8960 a barrel. —— 89.6 a barrel. and to show you all street, we do not have the numbers there, sadly, but they did end the day slightly lower but they were considerably higher prior to jerome powell�*s press conference, recovering from the falls in the previous days. it has been a choppy week for markets to let talk this through. looking at asia right now, we have a very strong dollar and share markets plunging. xyour share markets plunging. your thoughts? — share markets plunging. your thoughts? good _ share markets plunging. your thoughts? good morning. - share markets plunging. ymg- thoughts? good morning. it is not unusualfor equity thoughts? good morning. it is not unusual for equity markets and assets to fall ten or 15% at any given time before that amount, once year anyway. and given the fact that we are undergoing what is quite a dramatic shift in the liquidity paradigms it is not surprising and what i mean by that is if you think for a five months ago we were not expecting there to be one maybe two rate rises this year. and now as the previous guest alluded, the market expects four, five. and considering that so much of the last few years has seen an explosion in asset prices because of liquidity, the fact is that it causes markets to sit up and consider what the new world looks like without that liquidity.— that liquidity. investors are certainly — that liquidity. investors are certainly moving _ that liquidity. investors are certainly moving their - that liquidity. investors are i certainly moving their money, aren�*t they, now? you can see all those companies that did really well during the pandemic, the tech stocks, they have been sold off significantly this week. you have the ukraine, russia situation and that is really worrying investors with the price of oil above $90 yesterday for brent. there is a lot going on and covid is still there and still present. but that... the fact _ there and still present. but that... the fact that - there and still present. pm that... the fact that you mention that investors are shifting money, that is always the case regardless of what the fed has done last night. such moves are not unusual. but the oint moves are not unusual. but the point i'm _ moves are not unusual. but the point i'm making _ moves are not unusual. but the point i'm making is _ moves are not unusual. but the point i'm making is that - moves are not unusual. but the point i'm making is that there l point i�*m making is that there is a lot at play right now, isn�*t there in financial markets? there are several elements and still, yesterday, we had various organisations like the united states commerce department saying, you know, we have chip supply problem still. there are still supply chain problems globally. there is a lot going on, that is the point. lot going on, that is the oint. . , ,., , , lot going on, that is the oint. . , , ., point. absolutely there is a lot going — point. absolutely there is a lot going on _ point. absolutely there is a lot going on in _ point. absolutely there is a lot going on in some - point. absolutely there is a lot going on in some of- point. absolutely there is a lot going on in some of thei lot going on in some of the things that have been going on for some time. obviously con fears and supply chain issues and what really has changed in the last few days is the shifting sand and liquidity paradigms and pumping in a lot of money in every market last year and whether they are pumping in any money. i think the economy underlined is strong enough to withstand some rate rises and inflation will probably come down of its own accord as we progress through the year. but we will wait and see. i think, the year. but we will wait and see. ithink, if the year. but we will wait and see. i think, if anything, the year. but we will wait and see. ithink, if anything, this is a reasonably good opportunity to take a look at adding some risk. interesting. your glass is half full, certainly. great to have you on the programme. let�*s stay in the us — where tesla continues to charge ahead. the electric car maker made record profits last year, and did much better than wall street was expecting in the final three months of the year. it did warn, though, that its factories have been running below capacity because of the supply chain crisis. but tesla boss elon musk is still forecasting it will �*comfortably�* sell 50% more cars this year — than it did in 2021. ben essen is global chief strategy officer at the marketing agency iris. good morning, ben. tesla is doing rather well this light the challenges we have just been discussing. good morning. yes. indeed. if you look at the uk specifically the model three was the second highest selling car last year and that is pretty astonishing given that they cost over £a0,000. even more so when you think that there is only i% of the cars on there is only i% of the cars on the road are currently fully electric cars. so if you see this switch to electric continue at the momentum it has done then the momentum for tesla will carry on as well. but i kind of feel like the supply chain crisis is going to carry on until next year. they became quite clear from the call but tesla are clearly more able to manage that crisis than others because you will remember, again, they are less of a car brand and more of a technology brand. one thing that was interesting listening to elon musk yesterday was the idea that because they are a tech brand it should not all be about manufacturing volumes and numbers of units. it is as much about the ecosystem around the car as the car itself and i think one interesting thing elon musk spoke about yesterday was the fact that once the fully self driving capability is ready they will start to make as much money out of services as they will out of selling cars. services as they will out of selling cars— services as they will out of selling cars. elon musk was certainly — selling cars. elon musk was certainly sounding - selling cars. elon musk was certainly sounding quite - certainly sounding quite maliciously spoke about 50% more sales this year than last. two new giger factories are coming on stream as well and that will really enable tesla and as you say it wants to be seen as a tech company rather than a car company and yet it will always be compared with the car giants around the world and it is positioning itself well from that perspective isn�*t it? it well from that perspective isn'tit? . ., , well from that perspective isn'tit? . ., _ ~ isn't it? it certainly is. we are seeing _ isn't it? it certainly is. we are seeing with _ isn't it? it certainly is. we are seeing with the - isn't it? it certainly is. we are seeing with the gigerl are seeing with the giger factories that they should be able to double their supply by the end of the year. it is interesting when you understand the way they have managed things like the chip shortage they change the number of chips in their cars in a matter of months in order to sell more cars with fewer chips and that is something that would take another automotive company month, probably years to make happen. so the fact that they are able to take that agile way of working out of the world have bring it into manufacturing is something that we have not really seen before from a and that is why people are so excited about tesla. indeed, we shall keep a close eye. thank you. let�*s stay with electric cars because shares of battery maker lg energy solution are up around 60% on their first day of trading in seoul — after south korea�*s biggest—ever initial public offering or ipo. the stock market debut has attracted a frenzy of interest from private investors all hoping to cash in on a boom in demand for electric vehicles. suranjani tewari has more tesla, ford, volkswagen, these are some of the global companies it counts as it customers but it once more and it is hoping to take on chinese rival to dominate a very promising market for electric vehicle batteries. a chinese company is its main competition and is valued at around 213 billion dollars. with this public listing, elegy solutions could pick up a market value of 55 billion dollars, making it third most valuable company in south korea. elegy energy solutions says it is in a good position to take on chinese rivals because it says it has more advanced technology and has customers not only in china but in the us and europe as well. it is said to announce an investment of more than $6 billion in the us and plans for a new battery plant in south korea, poland and china would triple its current capacity. experts are not completely convinced. elegy makes medical based batteries which are more expensive and considered less safe by those produced by its chinese rivals. elegy does — lg says it will do so in the future. but they have been security issues as well. and safety issues. but investors are willing to invest not only electric vehicle makers but their supplies as well. lg energy solutions is clearly a company with many ambitions both the stock market and outside of it. stay with us on bbc news, still to come: dancing forjoy — hospitality venues welcome a further easing of restrictions here in england. but will staff shortages spoil the party? the shuttle challenger exploded soon after lift—off. there were seven astronauts on board, one of them a woman schoolteacher. all of them are believed to have been killed. by the evening, tahrir square, the heart of official cairo, was in the hands of the demonstrators. they were using the word 'revolution'. the earthquake - singled out buildings and brought them down in seconds. _ tonight, the search for any survivors. has an increasing desperation about it as the hours pass. i the new government is firmly in control of the entire republic of uganda. survivors of the auschwitz concentration camp have been commemorating the 40th anniversary of their liberation. they toured the huts, gas chambers and crematoria and relived their horrifying experiences. this is bbc world news, the latest headlines: prince andrew demands a trial byjury — in an 11 page official response to sexual abuse allegations. the wait goes on in westminster for the report into lockdown parties at number 10 that could determine boris johnson�*s future. let�*s return to the subject of inflation because global food prices have risen sharply since the pandemic began. according to the un�*s food and agriculture organisation, they�*re now at their highest level in a decade. asia has escaped some of the sharpest rises but even there, more people are being forced to seek help. our asia business correspondent mariko oi reports. a plate of chicken and fragrant rice. a staple dish and one of the most affordable food available usually but this chain has had to raise prices for the first time.— for the first time. when the pandemic — for the first time. when the pandemic hit, _ for the first time. when the pandemic hit, chicken, - pandemic hit, chicken, vegetables, rice everything has been increasing. we have absorbed it as much as we can because we are hoping for the whole thing to be over. but what got us at the end, 250% rise in electrical prices. it is really not sustainable. singapore imports most of it food supply and feels the impact of global price changes a lot more. the price of chicken here has risen at least 50% since the start of the pandemic but compared to the inflation we see in the us and europe, food price increases in asia have been somewhat muted with businesses and governments absorbing higher cost but for how much longer?— how much longer? what governments _ how much longer? what governments have - how much longer? what governments have been| how much longer? what - governments have been doing rather than controlling prices is trying to ensure supply is stable. in the philippines for example, liberalisation of rice imports has allowed the supply of rice to improve.— of rice to improve. even so, these increases _ of rice to improve. even so, these increases are - of rice to improve. even so, these increases are still- of rice to improve. even so, l these increases are still some in the most dramatic this woman has seen in 20 years. the foodbank she runs, she is seeing a new kind of customer. young families, when all the part—time work dried up, these were the families got impacted as well. so not lowers the lowest 10% or the people we think really need help but it has slowly crept to maybe 20% of the population, maybe middle income that might not even know where to get help in the first place. where to get help in the first lace. ~ ., , where to get help in the first lacer ., ,. ., where to get help in the first lace. ~ . ,. ., , place. what is certain is the number of _ place. what is certain is the number of families - place. what is certain is the number of families seeking | place. what is certain is the - number of families seeking help across asia has risen sharply. most of seen living costs rise, notjust most of seen living costs rise, not just for food and most of seen living costs rise, notjust for food and many most of seen living costs rise, not just for food and many are wondering will this be temporary or will the situation linger as the pandemic passes. finally let�*s return to the uk where from today a range of covid restrictions are being eased. people will no longer be advised to work from home or wearface coverings in indoor venues. and hospitality venues will be able to decide whether to require nhs covid passes for entry. it is being welcomed by businesses, particularity those involved in the night—time economy. joining me now is michael kill, ceo of the night time industries association — the trade body of uk nightclubs, bars, music and entertainment venues representing 1200 venues good morning to you. you are welcoming the end of the plan b restrictions?— restrictions? without a doubt. many businesses _ restrictions? without a doubt. many businesses across - restrictions? without a doubt. many businesses across the l many businesses across the country are almost celebrating the withdrawal of plan b restrictions. as you can appreciate, there is a long road ahead in terms of recovery. road ahead in terms of recovery-_ road ahead in terms of recove .~ . , ., recovery. what shape our nightclubs _ recovery. what shape our nightclubs in _ recovery. what shape our nightclubs in currently? l recovery. what shape our i nightclubs in currently? we have almost _ nightclubs in currently? - have almost lost a third of nightclubs during the pandemic and with the festive period almost being decimated, with loss in trade of up to a0%, we are ina loss in trade of up to a0%, we are in a fragile state and a lot of rebuilding that needs to happen in terms of customer confidence but also workforce and investor confidence. i think that will take some time. we are set back somewhat six months in terms of recovery period but we are looking to several years to get back to pre— covid trading levels which is usually concerning given the fact when talking to businesses in a somewhat difficult position financially. for the night-time _ position financially. for the night-time industry - position financially. for the night-time industry in - night—time industry in particular, you�*re struggling with a shortage of staff? this has been _ with a shortage of staff? this has been a — with a shortage of staff? t�*t 3 has been a long—standing issue since the 19th ofjuly when we open initially. we had a nice yield of momentum. we saw staff shortages there, in particular in their security sector which has been huge factor. and there are concerns as we ramp up to the end ofjanuary, moving are concerns as we ramp up to the end of january, moving to the end of january, moving to the busier bank holiday and summer season, festival season starting, we�*re going to see a stretch in terms of staffing because more i going to be required. there is a lot of work for apprenticeships, middle management but the big challenge at the moment is security and supply chain resources which are systemic products getting through but also some requirements for security staff in licensing. a lot of work going on with the home office and the sia as we move forward.— move forward. good to talk to ou move forward. good to talk to you again _ move forward. good to talk to you again and _ move forward. good to talk to you again and good _ move forward. good to talk to you again and good luck- move forward. good to talk to you again and good luck with l you again and good luck with the weeks and months ahead and we hope you see a better recovery than you hope for. let�*s see how the asian markets are faring today. more than 3% decline in tokyo with the price of oil still hovering at highs. when it was above $90 a barrel, that was not seen for some seven years so not seen for some seven years so we are not seen for some seven years so we are in new territory. thank you for your time and i will see you soon. hello there. we�*ve certainly seen some windy weather across more northern parts of the uk into the night. the winds will continue to ease down during the day on thursday. it�*ll still be breezy, mind you, and there should be more sunshine more widely. the strongest winds have been near that area of low pressure that�*s moving away from the northern isles. this weather front is continuing southwards. it�*s continuing to weaken, and that means the rain and drizzle on it is becoming very light and patchy. this is the picture towards the end of the night. further north across the uk, clearer skies are continuing to follow with some more of those showers, mainly in the north of scotland, but it should be a frost—free start to thursday. but we start quite cloudy across much of wales, the midlands and southern england. some light and patchy rain and drizzle mainly in the west. that�*ll move southwards, soon cheering up in wales in the midlands. the cloud takes all morning to move away from southern england, heading out into the channel. then sunshine follows widely, a few more of these showers continuing mainly across northern and western scotland. but not a cold day despite the north—westerly wind, temperatures double figures for most. it will feel quite a bit cooler than of late, though, in northern parts of scotland. the winds ease down during the evening. some clearer skies will turn it chilly for a while overnight. and then, if we look out to the west, a stream of weather fronts there will bring some wet weather mainly towards scotland on friday. but at the same time, we�*re drawing in some very mild south—westerly winds. ahead of it, though, across england and wales, a chilly start. some sunshine, one or two early mist and fog patches. does tend to cloud over more and more from the west during the day, hanging onto some sunshine towards south—eastern parts of england, most of the rain coming eastwards across scotland. and for many, those temperatures will be reaching 10 or 11 degrees. it is turning milder and turning windier throughout the day, and most of the rain will continue to affect scotland overnight, that weather front pepping up the rain over western parts of scotland. then that weather front moves southwards on saturday. so, again, it�*s going to weaken and the rain becomes light and patchy. moving away from scotland and northern ireland, there won�*t be much rain heading down across england and wales. then we get a north—westerly wind once again, a few showers across northern parts of scotland. double—figure temperatures for most of the day. very mild in the south—east of england at 1a degrees. a windy day on saturday. the winds are not going to be as strong, though, on sunday. it will be a bit cooler. northern areas turn wet and windy later on. good morning, welcome to breakfast with charlie stayt and naga munchetty. our headlines today. prince andrew demands a trial byjury in new york, as he denies he was a close friend of convicted sex trafficker, ghislaine maxwell. face coverings are no longer mandatory in england from today, but some big retailers ask customers to continue wearing them. on holocaust memorial day, we�*ll meet one of the survivors of nazi concentration camps, and the artist who was commissioned by prince charles to paint him. today the advertising watchdog will tell mps about their