this is business live from bbc news, with maryam moshiri and victoria fritz. stopping the sell—off... asia steadies the ship after another turbulent day on wall street, but is there worse to come? live from london, that's our top story on friday the 12th of october. it's been the toughest week on global markets for months amid concerns about rising interest rates and slowing global growth. so, can the worries be shaken off? also in the programme... yet again, china sells the us more than it buys, but as the surplus hits a new record high, will it create more tensions between the world's two biggest economies? european markets have opened, and as you can see, the rebound is continuing. we're also talking about the abduction of africa's youngest billionaire,

and why it's so hard for africans to travel within the continent. our africa business editorjoins us soon. and the day after that infamous oval office meeting between president trump and ka nye west, the boss of adidas — for whom the rapper also designs clothes — says he doesn't mind his outspoken behaviour. do you agree that all publicity is good publicity? should adidas be embarrassed by ye‘s behaviour? let us know #bbcbizlive @bbcnews. yay or nay! hello and welcome to business live. plenty to fill you in on this friday. including... has the big sell off stopped? that's the question gripping investors and traders in europe, as a new day of stock market action gets under way. there will be relief for many that asia doesn't seem to have followed the overnight lead from the united states.

a lot of the concern, of course, is about rising interest rates, particularly in the united states, and also slowing growth for economies around the world. let's take a look at the latest numbers. this is what the ftse is doing in london right now. up upjust over zero up just over zero points 5%. the volatility we have seen over the last 2a hours has called down around the world and europe is taking its lead from places like tokyo, for example. tokyo recovered some of the losses of the last few days, although japan's benchmark losses of the last few days, althouthapan‘s benchmark nikkei is still down. the dow jones althouthapan‘s benchmark nikkei is still down. the dowjones closed down over 2%, more than 500 points on top of the 800 points we saw losing on wednesday. the s&p500 also reflected a week of worries and the two main us indicies have now wiped out all their gains since earlyjuly, amid concern that the us will raise interest rates again before the end of the year.

victoria. altaf ka—sum, is managing director at the investment firm state street global advisors. thank you forjoining us. markets are forward—looking beasts and we do have a lot of earnings coming out, particularly from america over the next few weeks. what should we be looking for in these statements from these big corporations which might signal what's going on ahead in markets and how they are feeling and how they are interpreting potentially a slowdown across the world ? potentially a slowdown across the world? we've had an incredibly long run up in the markets and investors have been worried about things that are not new news, like inflation and the trade was. what we need to look for is whether companies are factoring goes into their forward—looking statements. our company is getting more worried about international trade? is it changing the way they are behaving and their profit projections? are they getting more worried about inflation? have they had to put up

wages? is it putting a dent in their top line? what we need to look at in earnings is whether the things markets seem to be worrying about, if they are having an impact on company profits. that is good advice. i think the overall consensus from the last 2a hours or so consensus from the last 2a hours or so is this is a correction in markets are not crisis but these things are cyclical. at some point we will have a crisis. there is widespread concern that low interest rates has left us quite vulnerable to the next crisis and how we respond to it. what would you say?” think respond to it. what would you say?|j think that his a definite concern. if you look back over previous crises and recessions, the interest rates have had to drop in the us by about 5%, for example, to get us back to where we started, to help us recover. we don't have interest rates at 5% right now, nowhere near it, so we don't have that firepower we used to have, we don't have

believe we used to have two poles to get us back on our feet if there is a recession or a crisis. it is a definite worry. we have to hope markets will keep going upwards and that interest rates will rise gradually, so that when the next crisis does come, and as you say, these things are cyclical, that we have that dry powder left to actually make a difference. dry powdered in a very explosive atmosphere. we are seeing more toxic politics happening across the world. is this the perfect storm? the imf have been talking about this, if we have been talking about this, if we have another crisis on our hands, especially when it comes to things like emerging markets. what we feel like emerging markets. what we feel like this is a correction more in the developed markets but we wouldn't be stepping on right now to buy emerging markets. the combination of trade wards and strong dollar mean it's properly not somewhere we would be trading right now. “— somewhere we would be trading right now. —— combination of trade was and the strong dollar. politics has become more polarised, that can be explosive. so it is something to think about. what we have to think

about is over the last ten years, volatility has been abnormally low. what we are returning to now is more like a normal level of volatility, not something unusual. we have to bear that in not something unusual. we have to bearthat in mind. not something unusual. we have to bear that in mind. 0k, thank you very much. very interesting. the new normal. have a lovely weekend. let's take a look at some of the other stories making the news... the british billionaire sir richard branson says he's suspending investment talks with saudi arabia, following the disappearance of journalist jamal khashog—ji. saudi arabia's public investment fund has been in talks with branson‘s virgin group over a planned $1 billion investment in its space ventures. the recent sell—off in global technology shares has led to china's tencent music postponing its plans to go public, according to several reports. the music streaming firm which is a subsidary of tencent holdings, was expected to list on the 22nd of october. tencent music is expected to be valued at around $30 billion if it does

sell its shares on the stock market. the world's longest nonstop commercial flight is due to land in newark, newjersey in around two hours from now — 17 hours after it took off from singapore. the new 15,000 kilometre service by singapore airlines trumps qantas‘s 17 hour perth to london flight — and qatar's 17.5 hour service between auckland and doha. it seems like a lot to say, let alone live. investors in asia are hopeful that a meeting between presidents xi and trump, reportedly planned for november, could end the us china trade war. but a record chinese trade surplus with the us recorded in september could muddy the waters. maura fogarty joins us from our asia business hub in singapore. the tone appears to be improving in relations between these two. well, some factions in the us administration are definitely trying to get these talks back on track. we

have reports out in the last few days from various officials in the united states within the white house saying they are pushing and getting a little bit of traction moving forward a little bit on getting these talks on track. the talks they are referring to is a summit between the us president and chinese president at the g20 meeting in argentina at the end of november. if you remember, in august, there was a flurry of meetings between chinese officials and the united states officials. they were supposedly laying the foundation for the summit but then we had more trade tariffs getting kicked in on both sides and that was sort of put on hold. they are hoping if these two men can get in the same room, hopefully they can get a small win and ratchet down tensions a little bit. how they are going to do that, the latest trade numbers coming out of china, you have to ask us. the export numbers in september showed china is selling more to the world than it is buying. interestingly enough, china's trade surplus with the united states is also much higher than it was when

the trade warfare started. if you look at the monthly numbers, in september, the trade surplus was at 34.13 billion us dollars. that is china selling $34 billion more goods to the us than the other way around and that is, again, a record for the us trade surplus but also it happens after the tariffs kicked in. some of this signing this comes from companies frontloading their orders because they expected trade tariffs to kick in and they would want to get their goods out the door before it happened. thank you very much indeed. let's ta ke let's take a quick look at the markets. they have rebounded. japan's nikkei changed course and ended higher on friday, as investors took heart from gains in chinese shares on upbeat chinese export data. in europe... the volatility that swept global markets this week seemed to cool off a little. kim gittleson has the details of what's ahead

on wall street today. on friday, after a wild few days on wall street, fourth—quarter earnings season finally begins. wells fargo, jp morgan and citigroup are all expected to report their earnings before us markets open here. jp morgan, for one, is expected to show that profits at the bank increased by 20% compared to a year ago. it's been helped primarily by president donald trump's tax cuts, as well as rising interest rates. the question is whether or not this will allay investor concerns about corporate profitability going forward. investors have been selling shares in a range of american companies over concerns that inflation, rising rates and tariffs could drag on corporate profits. joining us is russ mould who's the investment director at aj bell. thank you forjoining us. we have been hearing from the imf and david lipton who is the number two. the bbc was talking to him about what is going on in emerging markets and if

we have another crisis. i'm wondering whether or not the rates coming down a little in the us and and corporate earnings might cause a boost. it is good to know they have finally woken up! you have brazil, india, indonesia, turkey and argentina, five of the well‘s biggest economies and their currency is at record lows against the us dollar and now they are saying, there might be a problem. it's good to know they have finally caught up with that at least. the fact the dollar has been strong, has accelerated, accentuated their problems. if the dollar weakened, it would take some of the pressure off some of those emerging markets which have built up too much overseas debt. how likely will that be? ifi was a betting man... which you should be! you don't bet, you invest and balance risk and reward. i wouldn't want to bet against the dollar right now, personally

speaking. i know the fed has come under pressure from donald trump for being crazy, doing too much too fast, but they need to get interest rates somewhere fast, but they need to get interest rates somewhere near fast, but they need to get interest rates somewhere near 5% because when the next recession comes, that is what they will be looking... unless they do something in very unusual, start funding direct infrastructure programmes, helicopter money. what is helicopter money? it sounds like someone is helicopter money? it sounds like someone out of a helicopter doing this. it sounds like a good idea but if you want to debase it currency is the best way to do it. they would literally directly from major infrastructure projects, so they we re infrastructure projects, so they were directly inject money into the economy rather than letting the banks do it, they would do it themselves. if you want to, it might work in the short term but as stu d e nts of work in the short term but as students of literature remember, the holy roman emperor fell in love with the devil because the devil gave him a printing press and in print as much money as you want. you are a dark horse! if the german playwright

from the 15th or 16th century knew it was a bad idea, i'd like to think the central banks do now! is changed since then, surely. the root of all evil is the love of money. you can keep printing but all you do is create inflation. greed is good, gordon gecko. even that was a little... you know all the quotes, we need to get you one again! there isa we need to get you one again! there is a space for you. coming up... the trouble with travel — we'll find out why it's so hard for african‘s to travel within the continent and get the rest of the big stories with our friday editor. you're with business live from bbc news. there's been an angry reaction by motoring groups to the government's decision to cut subsidies on more environmentally friendly cars. the rac has called it a "big step backwards". grants for plug—in hybrids

are to be scrapped and discounts on fully electric cars are being reduced by £1,000. our business correspondent, theo leggettjoins us. really, really angry, angry response from all of industry across this. why on earth are they doing it? i thought we were on the road to zero, according to the government? the government is saying this is an extension of its programme for electric cars. until now, if you buy a pure electrical vehicle or a vehicle capable of going 70 miles or more you get a grant. if you buy a plug—in hybrid, a conventional car that also has an electric motor and is capable of going a shorter distance on pure electric power, you got £2500. that has been trimmed

back, so no more grants for plug—in hybrid vehicles on only £3500 for battery—powered cars. why is there so much anger about this? well, it seems relatively successful policy. sales of alternatively fuelled vehicles have been rising. they currently make about 6% of the market but only half of that is plug in vehicles. there is clearly a very long way to go. electric cars and plug—in hybrids still relatively expensive, because they form a fairly small part of the market. things get cheaper as you build more of them. what the industry is saying is hang on, the government is saying it wants to get rid of conventionally powered vehicles by 2040 but it isn't willing to pay what it will take. it is removing incentives just that the time that the market needs a boost. 0k, thank you very much indeed. philip hammond has said he believes the brexit deal is now in sight and that the writing agreement could

lead to a dividend for uk finances. he has been talking to the bbc and saying he is optimistic a deal would be reached but there had been a very important step change in the last ten days. stay with us because in a few minutes' time, we will be hearing pa rt minutes' time, we will be hearing part of that interview here. stay with us here on bbc news. your're watching business live — our top story: european stock markets have bounced back strongly at the open on friday. it comes after a week which has seen big sell offs across the world, with new york falling again on thursday. a quick look at how the markets are faring... the rebound continues. the london market up nearly 0.5%. markets in france up almost 1% also. volatility

cooling down to a large degree. now it's time to take a look at some of the big business and economics news in africa this week. over the past seven days, we've seen tanzania's richest man being abducted and south africa apppointing a new finance minister. there he is, the man who was abducted, not the finance minister. joining us now is our africa editor, larry madowo. thank you forjoining us. lovely to see un to have you in the studio. great to be back here. missing billionaire, it happens surprisingly frequently across the world. what do know? the tanzania billionaire, worth about 1.5 billion dollars, was walking to his gym yesterday and four men jumped out walking to his gym yesterday and four menjumped out of walking to his gym yesterday and four men jumped out of a walking to his gym yesterday and four menjumped out of a car and grabbed him. it has been 24 hours since he disappeared. there has been no news. what are the working theories? they are hard to come by,

know demand for ransom, he has just disappeared. early reports say he has been found but the pelissie this has been found but the pelissie this has not happened. he is a two time mp. his business spreads across six african countries. he just basically, nobody knows where he is. is scary, no demand for ransom and he is ta nzania's is scary, no demand for ransom and he is tanzania's only billionaire? yes, said to be africa's youngest billionaire, 43. that's really young, practically a child! practically a child! laughter very distressing for his family. practically a child! laughter very distressing for his familylj imagine. very distressing for his family.” imagine. south africa now, we have seen imagine. south africa now, we have seen the fed finance minister in south africa in three years, what is going on? a new finance minister has been appointed because he last one was supposed to resign because of connections to this well—known family which has claimed a lot of

political careers in south africa. the very powerful union of metal workers, they are red—hot in anger. see what i did? they say he has, was a former bank governor and they are accusing him of pursuing neoliberal changes. you are talking about the markets, it has been a battle for the brand and also emerging markets are now very volatile because of everything that is happening with fears about the fed. south africa need stability, not another change in three years. let's move on and talk about travelling around africa. i know you have done a lot of it. with a great difficulty. why is it so with a great difficulty. why is it so difficult for africans to travel around africa ? so difficult for africans to travel around africa? because africans need visas to travel almost everywhere in africa. they had a target to

eliminate visas by doctor duddy want to get them? when? 2018. like when they were going to fix our lift! so we need visas to go almost everywhere, yet if you are on a european passport, you can go to more african countries than an african. that seems incredible. south africa, only 15 african countries can come in threes free but 28 european countries can. countries can come in threes free but 28 european countries canm there a demand for travel, do africans travel a lot within the continent? it is very expensive. it's cheaper to travel from nairobi to thailand and morocco.” it's cheaper to travel from nairobi to thailand and morocco. i wonder how much that is holding things like investment back. it is an amazing continent with so many opportunities and yet time and time again we see these barriers to investment. you are these barriers to investment. you a re exactly these barriers to investment. you are exactly right. inter—african

trade is very low. it is expensive. the ideal is for a european union style free movement of goods and capital but it doesn't happen because there are so many roadblocks and so expensive than that makes it difficult for people to do business across africa. so good to have you on the programme. i hope you have easy travelling back to nairobi, where you are based. thank you very much. as the deadline for reaching a deal on brexit moves ever closer, there is pressure on both sides to find a resolution. speaking to economics editor kamal ahmed at the imf meeting in bali, uk chancellor philip hammond says talks are progressing in the right direction. well, i've always been optimistic that we would get to a deal in the end, because it's clearly in the interests of both sides to do so. what has happened over the last week or ten days is that there's been a measurable change in pace. there's a real sense now of engagement from both sides, of shared enterprise in trying to solve a problem, rather than posturing towards each other. so, a really important step change.

but that shouldn't conceal the fact that we've still got some big differences left to resolve. so, process is a lot more positive this week, substance, still very challenging. earlier, we asked if adidas should be embarassed by the curious behaviour of kanye west, who designs clothes for the sportswear brand. he said he doesn't mind it because any publicity is good publicity. kanyeis any publicity is good publicity. kanye is a collaborator with adidas. yes, some trainers, sneakers. we have had loads of tweets about this, in particular ian, he says the boss of adidas doesn't have. they work with kanye because he can and does reach an audience they cannot through traditional advertising. what do you reckon, let's bring you m,

what do you reckon, let's bring you in, is all publicity good publicity? you are probably talking to the wrong bloke when it comes to sneakers. trainers. i'm sure adidas have been very careful with their research and i'm sure there are any working on principles. there's only one thing worse than not being talked about. the same applies with the nike kaeperneck adverts. started all the debate about taking the knee during the national anthem. but that's different to our erratic behaviour? you could guess where its lead in the future. kanye west's lunch in the white house yesterday and the press conference he held with donald trump. here it is. to be fairto him, how with donald trump. here it is. to be fair to him, how can we put it fairly? he behaved quite oddly. he was totally mad! he was swearing, he ranted, it was surreal. adidas

like that. i'm sure they would rather have someone unseen is i'm sure they would rather have someone unseen is edgy than staged. he was wearing a make america a great again cap and that it made him feel like superman. they clearly think the upside is whether the downside risks. for once i feel sorry for kim kardashian. for once? and now, patisserie valerie. explain to a world audience for this company does. a coffee and ca ke for this company does. a coffee and cake chain. very posh cake maker, very profitable on paper, has cash in the bank on paper. on tuesday in the uk it is actually, we would like a shares suspended because we think we have found some accounting problems. on wednesday admits it can't pay its tax bill. on those that says if they can't get hold of money very quickly, they might have to cease trading. 2500 people waiting to find out if they keep theirjobs? yes, a very stressful time for them and a strange

situation at a very invincible profitable company in trouble. publicly traded company. yes, with auditors and an audit committee and incredibly experienced and well—respected chairman, who owns 39% up to and still happened in plain sight. lets readouts are more tweets before we go. one says, check if donald trump's hotels are suffering from his presidency. antony wilding @antwilding23: should they be embarrassed to be linked to him? yes. do they care? not as long as they sell more products as a direct result of being linked. money is all that matters...to both parties. money makes the world go round. thank you for joining us. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. hgppy happy friday! hello, there.

storm callum has arrived at our shores and it's going to give us some very windy, very wet weather over the next couple of days or so. it's in south wales that the met office are particularly concerned with the risk of some flooding with that heavy rain, and there's an amber warning in force. now, this is storm callum. you can see it's to the west of ireland, but this weather front‘s having a massive influence on our weather today and over the next few days, and a strong south—westerly wind associated with that. heavy rain and pulses of heavy rain moving their way northwards through the course of today into scotland. potentially drier in the west of northern ireland and drier down towards the south—east of england during this afternoon. but it's in south—west england and across wales where you can see here by the wind gusts, we're looking at gusts of wind 60—70 miles an houraround exposed western areas. even further east where you've got some sunshine, those gusts will be 40—50 miles an hour. still some very strong winds to come and some heavy rain moving its way up through much of scotland.

strongest winds, perhaps, around western areas of scotland. temperatures typically about 16—18 degrees, but down towards the south—east of england, with some sunshine, highs of about 20 or 21. through tonight, you can see pulses of heavy rain continuing to move northward across these western areas, but it's going to be a remarkably mild night. temperatures for england and wales near record—breaking for the overnight temperatures, 17—18 degrees celsius, for scotland and northern ireland, it will be chillier here, at about 10—11 degrees. let's go into saturday, and you can see again these weather fronts are still with you across northern and western areas of the united kingdom, and again, because it's a waving weather front, it means that we'll see heavy rain moving its way north from time to time. you can see these blobs of green and darker blue heading northward into scotland. by this stage, across south wales as well, we could see as much as 60—80 millimetres, perhaps up to 160 millimetres over some exposed higher ground, that could lead to some problems.

but for central and eastern areas, well, summer returns — temperatures 24—25 degrees on saturday, with some sunshine. sunday, that rain clears away. a bit of snow over the grampians during sunday, but that will clear. lots of sunshine, a much drier day, lighter winds, but a chillier day, as temperatures dropping down to about 14—15 degrees in the south—east, compared to that 25 degrees on saturday. so, lots going on, a bit of everything over the next few days. stay tuned to the forecast. bye— bye. hello, it's friday october 12th, it's 9 o'clock. i'mjoanna i'm joanna gosling, welcome to the programme. this programme can reveal that an immigration enforcement hotline received 68 calls from mps and their staff last year — and now a group of charities is calling on all mps to pledge not to inform on their constituents. us media reports say the turkish government has audio and video recordings that they say prove that the missing saudi journalist jamal khashoggi was killed inside the saudi consulate in istanbul last week. we'll speak to a close friend

ofjamal's who had dinner with him just two days before he went missing. saudi arabia has denied any involvement in the disappearance. "unimaginable destruction." florida residents return to find out what's left of their community after hurricane michael. so many lives have been changed forever.