tv Business Today BBC News September 6, 2024 11:30am-11:46am BST
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there will be a complete financial audit. donald trump lays out his tone for the country's economy from local taxes to a top job for elon musk. also on the programme, the worlds biggest convenience to chain, 7—11, rejected a takeover deal. hello and welcome to rejected a takeover deal. hello and welcome to business rejected a takeover deal. hello and welcome to business today. we begin the programme in the united states where it has been a rather tumultuous week on the markets following the
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publication of a series of reports on the state of the labour market. on thursday, yesterday, one of the latest of those reports showed that private employers and dgs were posting their smallest monthly growth since january 2021 with just shy of 100,000 new positions. government data showed the job positions. government data showed thejob openings positions. government data showed the job openings had dropped to a 3.5 year low, 7.67 million vacancies through dropped to a 3.5 year low, 7.67 million vacancies throuthuly. million vacancies through july. later million vacancies throuthuly. later today, all eyes are going to be in the monthlyjob survey of employers and households. a reminder, last month the labour department reported the unemployment rate at hit 4.3% injuly. unemployment rate at hit 4.3% in july. that was unemployment rate at hit 4.3% injuly. that was up unemployment rate at hit 4.3% in july. that was up from unemployment rate at hit 4.3% injuly. that was up from 3.5% a year earlier. so this report is one of the most important gauges of the state of the world's largest economy and it is coming at a critical time
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because we have the presidential campaign well under way. what will be in store for? i put that question to carol handley, associate professor of economics at university of california, san diego. i think a big university of california, san diego. ithink a big part university of california, san diego. i think a big part of what is going on that if we knew for sure we were getting a 25 basis point cut there wouldn't be this volatility. if we knew for sure there wouldn't be a 50 basis point cut there wouldn't without insecurity. we are getting a lot of mixed segments —— mixed signals and markets don't like that. they're waiting to see what is going on. we have seen things drift on a patch. what happens tomorrow or today in the uk is going to depend a lot on whether or not thisjobs going to depend a lot on whether or not this jobs report is good but not too great. we are not suggesting that the fed is a little bit behind the curve. it is all about the data, isn't
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it? is speaking of recession just a little bit too early, or are there concerns there? i think it is a bit too early to start talking about that. the unemployment rate has stacked up unemployment rate has stacked up butjust barely. we don't have a super weakjob market, but i think the market as a whole is worried that things may be a little bit worse than we think given some of the numbers that have come out earlier this week. if this jobs report comes out and says that we added around 165,000 jobs as many expect, but i think we're probably looking at the 25 basis point cut than 50. i don't think the fed is too far behind the curvejust don't think the fed is too far behind the curve just yet. if they do find that things are worse than they think they have to make a 50 basis point cut, that may get people worried
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that may get people worried that they haven't engineered quite a softer landing as we had all hoped. in quite a softer landing as we had all hoped.— had all hoped. in spring, thins had all hoped. in spring, things were _ had all hoped. in spring, things were tight - had all hoped. in spring, things were tight and - had all hoped. in spring, l things were tight and very positive, cuts coming in, then there was this retraction on that. what is happening with the us economy? i that. what is happening with the us economy?— that. what is happening with the us economy? i think what has happens _ the us economy? i think what has happens is _ the us economy? i think what has happens is that _ the us economy? i think what has happens is that inflation l has happens is that inflation has happens is that inflation has decelerated, but much more slowly than people expected it would, certainly not compared to the beginning of this year. now that we are in a period where it looks like inflation is low, labour market is not as hot as it was. we just wonder if we have gone too far, in terms of keeping things tight for too long, and i think there is to big part of what is going on. the fair has probably had a lot of good luck as well and i think some of what is happening
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is maybe we are worried that the luck has run out and the monitoring policy tools that they have at their disposal won't quite be enough to pull us through this without a little bit of an economic downturn. i'm not predicting that it could happen. just downturn. i'm not predicting that it could happen.- that it could happen. just to remind you. _ that it could happen. just to remind you, that _ that it could happen. just to remind you, that report - that it could happen. just to remind you, that report is i remind you, that report is going to be coming out in the coming hours and we will bring you that right here on bbc news. we will stay in the us and donald trump has pledged to cut the corporate tax rate and ordered the federal government. an idea that was proposed by elon musk. mr trump edged his agenda to wall street and corporate leaders at a campaign stop in new york. the main highlight of donald trump as mac address was a push to cut the corporate tax rate to cut the corporate tax rate to 15% for companies that make
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their products here in the us. this would be a big reduction from the current rate of 21%, a key policy victory from trung putts macro 2017 tax law. while the 50% corporate rate would be a big win for large us companies, it would also contribute to rising deficits. it means big companies would end up far lower rates than small, privately held businesses were rates can be as high as 37%. his proposal is in stark contrast to kamala harris who has culture raised to corporation tax to 28%. trump is my proposal also include an idea from elon musk to create a government efficiency commission. this would be to eliminate wasteful federal spending. i eliminate wasteful federal spending-— spending. i will create a government _ spending. i will create a government efficiency l government efficiency commission tasked with conducting a complete financial and performance audit of the entire — and performance audit of the entire federal government and
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making — entire federal government and making recommendations for drastic— making recommendations for drastic reforms. we need to do it. drastic reforms. we need to do it we — drastic reforms. we need to do it we can— drastic reforms. we need to do it. we can go on the way we are now _ it. we can go on the way we are now and — it. we can go on the way we are now. and elon, because he is not very— now. and elon, because he is not very busy, has agreed to have — not very busy, has agreed to have that _ not very busy, has agreed to have that task force.- have that task force. this comes as _ have that task force. this comes as both _ have that task force. this comes as both trump - have that task force. this | comes as both trump and have that task force. in 3 comes as both trump and harris are wrapping up their efforts to court swing state voters, as well as business executives in an election with the economy is the dominant issue. opec plus has decided to delay its planned oil output increase for october and november. this comes after oil prices hit a nine—month low due to concerns about weakening global economy and slow demand from china. the group, which includes opec members and allies led by russia, says that they may further oppose or roll back the hike if needed. let's discuss this further. the independent
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energy analyst cornelia meier joins us now. so an initial analysis, what does this mean that they have implemented this delay? i that they have implemented this dela ? ., , that they have implemented this dela ? ~ , ., , delay? i think it is the only reasonable _ delay? i think it is the only reasonable thing. - delay? i think it is the only reasonable thing. you - delay? i think it is the only reasonable thing. you saw| delay? i think it is the only i reasonable thing. you saw oil prices today are lower that they were at the beginning of they were at the beginning of the year and it has really been a downward trajectory. you had very weak economic data out of china which didn't help, the us economy is spluttering a wee bit, so that didn't help. so they are, like everybody, they are looking at what will happen with interest rates because if there is an interest rate cuts that will help demand. for the time being they felt they couldn't afford to put more oil on the market, or the market that although we see throwing off inventories, it is a very nervous, anxious market. what has this done _
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nervous, anxious market. what has this done to _ nervous, anxious market. what has this done to oil _ nervous, anxious market. what has this done to oil futures? i has this done to oil futures? exactly what it is done to the spot price. they have been going down. what it has also done as you see a lot of the financial money in there, you see over the last two months a lot of the long position by hedge funds and other financial investors have been cut, they have gone into shorts. there is currently not that much appetite for oil also in the financial community. for us, eo - le financial community. for us, peeple at — financial community. for us, peeple at the _ financial community. for us, people at the pump, - financial community. for us, people at the pump, what i financial community. for us, i people at the pump, what does that mean?— that mean? well, for us, the --eole that mean? well, for us, the peeple at _ that mean? well, for us, the peeple at the _ that mean? well, for us, the people at the pump, - that mean? well, for us, the people at the pump, they i that mean? well, for us, the| people at the pump, they will be happy if the oil price is lower, but mind you, because what you don't want to have his too much volatility, and that is what opec has managed very well. if you are an airline due to what that will post tomorrow
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to what that will post tomorrow to be very low, then very high, then very low again. you can plan anything. opec has managed that very well over the last 20 years or so, bringing stability to the market. however it has come at a cost because obviously they are giving up market share to other people, the us, brazil and guyana coming in very aggressively with new barrels. so you have essentially... it is not good for your production or you're standing in various markets. the king of saudi arabia is today producing less oil than 20 years ago. today producing less oil than 20 years age-— today producing less oil than 20 years ago. thank you very much indeed. _ 20 years ago. thank you very much indeed. always - 20 years ago. thank you very much indeed. always a - 20 years ago. thank you very - much indeed. always a pleasure. let's update you about something of a mega takeover that we have been bringing to you. this was an offer that involve the world does not
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biggest convenience store chain, 711. its parent company received an offer from canada's act to start. it did send its response to that offer. we are talking about japan's retail giant, 7—11 today, it rejected the offer from act by saying it undervalued the company and said the offer was opportunistically timed. they say... i think that means they are taking advantage of the weakness in the end. we also know know how much the offer was. 14.86 us dollars per share, so about 20% premium when the offer was made. the shares have ratings —— have risen since, so it is trading higher than that offer value.
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the company said even if the offer was improved significantly, it does the takeover could progress because of competition regulations on the innate states. so while the company is following the guidelines by the gap —— by the japanese government, it is pointing out the hurdles that the deal may face. there were reports, that they were trying to defend themselves to the japanese government saying that it offers services that are vital to the japanese economy. if the deal was to succeed it would be the biggest ever buyout of a japanese company by an overseas firm. i don't feel that this would be the last time you and i will be talking about this deal. plenty more coming appear on bbc news. —— up here.
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welcome along to the bbc sport centre, i'm adam wild. we'll start in new york where its men's semifinals day at the us open. the womens final line up though is already settled, with world number two aryna sabalenka taking on home favouritejessica pegula. sabalenka saw off the challenge of the american emma navarro in straight sets to reach saturdays showpiece final. the belarusian is the first women's player since the great serena williams five years ago to reach back—to—back singles finals at flushing meadows. last year was very, very tough experience, very tough lesson and today in the match i was like no, no, no, it will not happen again, you have to control your emotions and focus on yourself. there were people supporting me and i was trying to focus on them. sabalenka, then, takes on the americanjessica pegula, who had lost her past six major quarterfinals before
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