tv Business Briefing BBC News September 26, 2018 5:30am-5:46am BST
this is your business briefing with me, sally bundock. onward and upwards. the fed gets ready to raise interest rates in the us. we look at what it means for consumers around the world. mixing up a storm. we visit a harry potter inspired cocktail bar in london, but can it lure the millenial generation into drinking out more often? and forfinancial and for financial markets, that was the clothes in the united states on the clothes in the united states on the dowjones. the clothes in the united states on the dow jones. you the clothes in the united states on the dowjones. you can see in asia, we are seeing markets pick up some speed, having had a very mixed start to the trading week. so the big focus for financial markets today is what is happening in washington later. the us federal reserve is expected to raise interest rates for a third time this year, as it attempts to cool
the rapid growth of the us economy. the markets are expecting the fed will raise interest rates by a 0.25% to 2-2.25%. that's because us inflation remains on an upward curve. in july, core inflation, which doesn't include volatile energy and food prices, hit 2.4% — its highest level in a decade. and the rise in prices is being fuelled by low unemployment and higher wages — they grew by 2.9% in august, which is their fastest pace in nine years. some are now asking will this expected rate rise be enough? not according to goldman sachs, who are predicting a further four rates rises in 2019, in addition to another one in december this year. eimear daly is with us, chef economist at global research group. good morning. we saw there the picture on the graphics ofjerome powell, the men in charge of the
federal reserve. he will be making comments in a press conference later, and every single word it will be analysed for what is coming next. absolutely, i think we all expecting are going to get a rate rise in september. i think the question is what comes next. consumer confidence is at record levels that we have ever seen is at record levels that we have ever seen for the us, wages are soaring, it is really a question of trying to calm down the us economy right now. so what impact will this have? and some of the other issues going on, the trade war between the us and china and the impact that may have the months ahead, particularly injanuary, have the months ahead, particularly in january, if president have the months ahead, particularly injanuary, if president trump does raise tariffs by 25%, and other things like the price of oil going up, some saying $100 a barrel in the new year? yeah, absolutely, so we
have seen tariffs being incremented. to us at the moment, it is not really that much in terms of what is coming into the us, so it actually does not increase prices, only by about two tenths of a percent. also, something had to consider is that the more the fed raises rate, the more impact it has on the dollar value. so that has the effect of dampening prices, so they have this mechanism forward using price growth and little, so it gives them a little more room for their economic policies. while the federal reserve does often increase its rates, and there is the expectation that there are many more to come, this does have a big impact around the world, we have seen emerging markets really struggling with their currencies falling quite significantly.” struggling with their currencies falling quite significantly. i think what is interesting is is that america first? this has implications not just for the american economy, but for the global economy. the
federal reserve is the credit and pace makerfor federal reserve is the credit and pace maker for most of the world. developing economies are really suffering from increasing prices, the question is are the federal reserve going to take action on that, are they going to take account of the effect and pain they are causing in developing countries? thank you forjoining us. our team in the us will be telling us what is going on later, as they make their announcements. shares in the chinese hotpot chain haidilao have surged more than 10% on their debut in hong kong — that's after the firm raised almost $1 billion in its initial public offering. rico hizon is in singapore. i don't know if i pronounce that company name right or wrong, you can correct me and tell me what is going on. haidilao. williams. is a beijing
—based restaurant chain, it has outlets from the us to japan and has a reputation for keeping patient customers waiting for more than two hours for table because of their famous hotpot. so have you ever heard of a hotpot? absolutely, we love hotpots in the uk. we love it, imean it love hotpots in the uk. we love it, i mean it is pretty common here in singapore, china, and other parts of asia. a very big part pot of hot pot which is usually situated in the middle of the table, to which meets, vegetables, tofu are added, it makes it so delicious. in fact, here in singapore, it has been known for entertaining customers while they wait to eat, you have manicurists being employed for a company during naval service, you have children's play areas, masseuses offering their clu bs, play areas, masseuses offering their clubs, and even some places offering
is selfie taking service while you wait. 0ne restaurant in singapore was shut down temporarily due to food safety issues, but so far investors do not seem to care, the stock price is rising by more than 10% on the hong kong stock exchange and a large chunk of that will be going to expansion plans in the uk, australia and new zealand. so far, a solid debut for haidilao in hong kong. what is not to love, a neck rub, your nails done, a hotpot, the kids entertained? rub, your nails done, a hotpot, the kids entertained ? honestly, rub, your nails done, a hotpot, the kids entertained? honestly, it sounds like a win—win. no wonder the shares are surging. i was bt very soon. thank you very much, good to see you. —— i will speak to you very soon. depending on where you are in the world, a hot pot can be a different thing. now let's brief you on some other business stories. facebook is investigating a glitch
in its moderation system, after a user was incorrectly told material she had flagged as hate speech would be removed. in fact, facebook‘s moderation team had decided the posts should stay online. a campaign group is saying the incident is a huge breach of trust. nike says its controversial ad campaign featuring colin kaepernick has sparked record engagement and is driving sales. mr kaepernick was a footballer for the san francisco 49ers. he is known for his refusal to stand during the national anthem in protest of police brutality and racism. president trump and japan's prime minister shinzo abe are due to meet later today on the sidelines of the un general assembly in new york to talk trade. it follows a meeting by officals from both sides on tuesday. mr trump has made it clear he's unhappy with japan's $69 billion trade surplus with the us. although some bars and pubs here in the uk have been struggling, many are reinventing themselves by offering customers new experiences.
young people today drink less than previous generations, and when they do drink, they tend to drink at home. a new harry potter—inspired bar is opening in london, could concept bars change millennials' drinking habits? i was studying computer programming and design that comment i realise that a lot of the concepts i was reading about in fantasy books were actually real and i thought if we just combine the right elements, then we can make the fantasy world come to life. —— designed the right
elements. the model of the business is one of the lotto, where it assumes a certain amount of natural risk but it is not like we have taken at least 20 years without knowing if the concept is good. everybody that works in cahoots is a scoundrel or a vagabond, someone that's being to the war, so we will try to speak in a 1940s way, cockney rhyming slang, that kind of thing. experiences are something that people are looking for now, because cocktail bars are so many, you need something to differentiate yourself
from everything else that is out there. many of you have been in touch today about this issue of what the young are doing when it comes to their drinking habits, so we will carry on that conversation in a moment. the duchess of sussex has carried out her first solo royal engagement. she attended the opening of an art exhibition at the royal academy of arts in london. the show is the first major survey of pacific island art to be held
in britain, and also marks the 250th anniversary of captain cook's first voyage. 0ur arts editor will gompertz reports. we're used to a bit of a song and dance being made about an exhibition opening, but not quite on this scale. this is the pacific islanders‘ way to mark the first—ever show of their art and culture at the royal academy in london. a special event that was made even more memorable with the arrival of the duchess of sussex, for her first solo official engagement. she appeared particularly taken with this 18th—century costume of the chief mourner from the islands of tahiti. the exhibition covers around 600 years of 0ceanic artworks, from this centuries—old maori carving to these photographic portraits of life—casts taken in 2010. the show of such wealth
of pacific island treasures, or taonga, as they are known, held by european institutions, raises the question of ownership, and whether they should be returned to the countries from which they came. for indigenous peoples all around the world, if they came back and were shared, they would actually accrue more knowledge, research from on the ground, and that these gifts would probably come back again too. sometimes we don't necessarily want to repatriate these taonga. for the duchess of sussex, the exhibition serves as a useful introduction to the cultures of the pacific region, where she is going on an official visit with prince harry next month. will gompertz, bbc news. this is the briefing on bbc news.
the latest headlines: there's been a war of words at the united nations general assemb as the presidents of america and iran threw accusations at each other. jeremy corbyn will make his conference speech later, as the labour party votes to back another brexit referendum. and the kenyan tv presenter waihiga mwaurahas been named the winner of this year's bbc world news komla dumor award. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the independent and the british opposition leader, jeremy corbyn, at the labour pa rty‘s conference, where he is set to pledge billions of pounds to green industries. next we have the daily telegraph which reports on theresa may's pledge to slash taxes and make post—brexit britain an economic powerhouse and the envy of europe. she will deliver that promise today in the us.
and then we have the financial times which leads with a story on argentina's central bank chief, who has resigned after only three months in the job, triggering a five per cent slide in the peso. let's have a look at the denver post, which has a picture of bill cosby leaving court in handcuffs, after being sentenced to three to ten years behind bars in what is seen by his accusers as richly deserved and long overdue. and on the front page of the times teenage drinking has declined dramatically in europe. british teenagers were once among the biggest drinkers in europe but are now among the most abstinent. we haven't been talking about that
this morning without twitter question. and finally the bbc 0nline and an article outlining the health benefits of eating a mediterranean diet which may help prevent depression, research suggests. mood food. with me is fiona cincotta, senior market analyst at city index. the labour party confidence has dominated the news in the uk for most of the week and todayjeremy corbyn will deliver his big speech. he is moving towards these