world stocks which fell following comments made by donald trump. prices dipped on wall street and european markets were also down. in asia we have japanese shares falling. the guardian financial section carries a warning from the world economic forum that rising income inequality and the polarisation of societies are among the biggest risks to the global economy in 2017. the ft says turkish president recep tayyip erdogan‘s efforts to tackle terrorism and consolidate power have alarmed investors and seen the turkish lira fall 4% to a new low. and finally, the business section of the telegraph has this still from the hotly tipped film la la land. the paper says cinema chain cineworld sold a record number of tickets last year, filling more than 100 million seats. streaming, dvds, whatever, cinemas

is doing well. joining us is manji cheto who's vice president at political risk consultancy firm, teneo intelligence. good morning and nice to see you. you watched it all from start to finish, what did you make of it? a low i think one of the things that shocked me was let's not forget, the press c0 nfe re nce was shocked me was let's not forget, the press conference was the designed to talk about how donald trump would separate his business interests. the press c0 nfe re nce separate his business interests. the press conference ended up being a donald trump for lack of a better word rant. the market reactions are quite significant. we saw stocks rising, defence, pharmaceuticals, during his campaign reversed their movements. that shows markets are effectively saying they don't know what a president trump will look like when he comes into office and

that's an important thing to watch. another point is, what we effectively saw yesterday was donald trump acting as a businessman, thinking he can basically say things and get them to work. once he comes into office and the political institutions that underpinned the american democracy standing in his wake, i'm not sure that same behaviour will continue because they are effectively institutions that will constrain his ability to carry out some of the threats he mentioned yesterday. we will talk about market reaction in a minute but a lot of it is wrecking to tweets and comments, pharmaceutical stocks were down because he made a comment that he would sort out the pharmaceutical industry in the us, that kind of thing so immediately they fall, it's that knee—jerk reaction, isn't it? that's a reaction saying we don't know what we're going to get and at what point does someone said to donald trump, you can't do this or you can do this or is he going to be more measured? you can do this or is he going to be more measured 7 the you can do this or is he going to be more measured? the next few weeks

will tell us whether he will carry out the threats he has put out there. these allegations in this russian dossier are unsubstantiated at the moment. i suppose he can say while they are unsubstantiated that this is fake news. the reason we, the bbc, are reporting these allegations now is the intelligence agencies in the united states believe it is serious enough to go to president obama and president—elect trump and say this is what we have. if it's unsubstantiated and fake it means those intelligence agencies have been fooled, which doesn't happen very often. yeah. and for me it's a dangerous precedent for the president—elect of the united states to say i do not trust my own intelligence agencies. effectively you're saying that you do not trust everything that has underpinned american intervention in so many political events around the world and for me, i think that is treading

and for me, i think that is treading a dangerous path. the other thing is this press conference, as you say, was pretty fraught, many describing it as bizarre given the circumstances, i.e. the first press conference by a president—elect before he takes office in what is now a days. after he won in the summer now a days. after he won in the summer he said he would unify america, that's not the impression we got yesterday, is it? absolutely not. yesterday we saw a donald trump defending a donald trump as opposed to defending the rights of americans. it will be interesting to talk to a lot of donald trump supporters on the back of that press conference, asking is this the president that can unite your country on the back of a divisive election? saying this news conference was about donald trump, it wasn't setting out an agenda, he did talk generally about manufacturing and the car stories we have talked about but this was very much about him and we know how he is going to divest his business interests from the presidency. but

everytime he says anything and every time he does anything and every time he tweets something, the markets react. what have we got? stocks dragged down by trump comments. some are dragged down, some are still going up, there's a lot of optimism. the dowjones going up, there's a lot of optimism. the dow jones opened going up, there's a lot of optimism. the dowjones opened up 0.5%, let's not forget that, but certain sectors are feeling the pressure. u nfortu nately, are feeling the pressure. unfortunately, one of your guests earlier on mentioned the fact that every ceo and boardroom in the united states and across europe, if you're a huge multinational, you're now going to start having a trump contingency plan in the way you operate. also to have have huge pr agencies that basically defend you against effectively donald comments. what is extraordinary, eight years ago when barack obama ran his campaign, twitter didn't exist and now twitter is what stocks are reacting to win donald trump tweets,

thatis reacting to win donald trump tweets, that is incredible and it shows you how much politics has changed and how much politics has changed and how quickly markets react to that change in technology. something that isn't changing is inequality. the globalfigure is the isn't changing is inequality. the global figure is the top i% of the world's population, they own 89% of the wealth, that is the global figure but it differs by nation. do you agree? my initial reaction when i saw the headline, with inequality being the biggest threat to the global economy in 2017, i thought to myself, a little too late to make that call. effectively 2016, the elections, brexit, donald trump's election, that is basically a reaction to that. the philippines. we will also see that in latin america, we don't talk about that region, in africa, effectively this is been a trend we have missed and the world economic forum calling it 110w. . . the world economic forum calling it now... i must admit, they are

preparing for their big annual jamboree in davos, switzerland, and they always come out with their "will outlook prior to that, something they and oxfam has been saying for a couple of years, it seems they are upping the ante and it seems it is the most urgent issue 110w. it seems it is the most urgent issue now. loads of people will be quite cynical about this because the argument has been won at davos has been the one place the 1% gather, so can the 1% solve the problem for the 196 can the 1% solve the problem for the 1% listening anyway after 2016? there's been an effort to be inclusive in the world economic forum. but again people remain very cynical, credit to them for raising it, but i think it will be a huge problem not just it, but i think it will be a huge problem notjust for 2017 but it, but i think it will be a huge problem not just for 2017 but for 2018 and 2019, it isn't something you reverse quickly. what about the political, economic and the risks

you assess in turkey. gam—gam has a huge task on his hands to get everything right in terms of terrorism and the economy and the bigger issue oceans with the eu, is in syria, there's also something is happening —— big issues —— negotiations with the eu. the huge concern negotiations with the eu. the huge concern that i think a lot of people are saying is not so much naturally, when you have a country facing huge security crises, having a centralised government is kind of a positive thing. but in this case it is people saying they aren't sure what president erdogan is going to do with his concentrated power in the executive, and that is why the turkish lira is reacting to that. also turkey seems to be stretching itself out a little bit too much and i think people are expecting that expansion of turkey will have a negative impact on the security outlook rather than a positive one.

that is effectively what the reactions are. when were you last at the movies? i'm not a big cinema person. never been or is that a recent thing? the last couple of yea rs i recent thing? the last couple of years i haven't been to the cinema. do you watch films at all or do you just not go to the cinemas?” do you watch films at all or do you just not go to the cinemas? i don't go to the cinema, i don't watch films particularly but if i did i would watch them at home so i'm surprised to see the cinema industry is doing quite well. better than it has done of late, a surge in people going back, when was the last film you saw? i can't remember, i only go to watch kids' films. me too. it could be better films to watch kids' films. me too. it could be betterfilms rather than people just loving the cinema. thank you very much indeed. hello. i know already some of you have seen some fairly wintry conditions. i think, over the next couple of days, that prospect becomes a good deal more widespread across the british isles. thursday dawns with still

a lot of wind to be had across the northern half of the british isles, maybe not just as windy as wednesday was, and it is a cold start to the day. cold and dry to start in the south—east. don't be fooled by that, because relatively mild air is moving in from the atlantic. we have real concerns through the day again about the strength of the wind and the snow, initially in northern parts, but there is a change on the way for southern areas. because your mild air, bringing the rain, will eventually run into that cold air, which is already in situ across wales, the midlands, and the northern parts of the british isles. and, as that moisture runs into the cold air, so i think we'll see quite a significant conversion, slowly but surely through the day, of some of that rain into snow. initially across the high ground of wales, but eventually, as we get on into the afternoon, so more widely snow will become an issue, and notjust at higher levels, either. some doubt about the exact wheres

and whens, but that is the general principle. all the while across the northern half of the british isles it is another bitterly cold day, with a lot of wind driving a whole peppering of showers into central and western parts of scotland, across northern ireland, into the north—west of england, and into northern parts of wales, on what is going to feel like a bitterly cold day, given the strength of the wind and the fact that your thermometers are never going to read better than two, three or four degrees. not quite out of the woods with regards to this problem in the south, because increasingly through the evening, so that snow will fall to lower levels. as it quits the scene, so those wetted surfaces will turn into icy surfaces underneath clear skies. at least clear for a time because we have another weather feature dragging the prospect of more snow ever further south across scotland, into the north of england, such that friday morning could be a real fest of frost and ice, and some snowfall, we think, too, coming down across central and eastern parts of the british isles, before it eventually quits the scene, unfortunately just after the main rush hour, to leave behind another chilly, chilly day right across the piece, with further wintry showers

across northern and western parts. but at least there will be some sunshine, and there will be a prospect of somewhat drier conditions following all the snow. the weekend starts chilly again, and then it turns milderfor many as we get to sunday. hello, this is breakfast, with steph mcgovern and charlie stayt. a stand—off between donald trump and the intelligence services of his private life. i think it was disgraceful that the intelligence agencies allowed any information that turned out to be so full of fa ke that turned out to be so full of fake out. now the head of intelligence services in america hits back, saying they weren't involved in any leaks about the president—elect. good morning, it's thursday, 12th january.

also this morning: ben's in london on an important day for some of our biggest shops.