harnessing the power of artificial intelligence — the uk government's to unveil a multi—billion pound investment plan to make britain an ai world leader. "in our national interest" — uk chancellor rachel reeves wraps up her trip to china with £600 millions worth of deals. french farmers are meeting the new prime minister as tensions mount over the eu's south america free trade deal. and, the new world order? we take a look at peru's new china—backed megaport, as the world awaits trump's us tariff threats.

hello and welcome. live from london this is business today, i'm sally bundock. we start here in the uk where the government is set to outline its plans today to use artificial intelligence to boost economic growth and increase efficiency. called the ai opportunities action plan, it's being billed as a gamechanger by the prime minister sir keir starmer. he says ai will "drive incredible change" and that the plan "will make britain the world leader". the plan will be backed by leading tech firms, which are said to have committed some £14 billion — thats around $17 billion — towards various projects. creating over 13000 jobs. it includes plans for growth zones where development will be focused and the technology will be used to help drive efficiencies in public services

such as the nhs a result of the government's first budget. keir starmer is hoping that if aa is fully adopted, it could transform lives and drive growth. how will it work in the real world? keir starmer is likely to say it could help cut teachers admin task time, assist doctors in treating patients and even and even in treating patients and even fixing potholes in the roads fixing potholes in the roads and the big one is increased and the big one is increased productivity. the government is productivity. the government is happy will increase happy will increase productivity by around 1.5% a productivity by around 1.5% a year and that would be the year and that would be the

equivalent of an extra £37 equivalent of an extra £37 billion. —— the government is billion. —— the government is hoping it will increase. as for hoping it will increase. as for why now? this kind of push is why now? this kind of push is something we have been hearing something we have been hearing an awful lot as countries an awful lot as countries around the world compete to around the world compete to become ai hubs, especially in become ai hubs, especially in asia, because china is the asia, because second largest ai market

and last week the price of that borrowing for the uk government hit 16—year highs also the pound slumped in value setting off alarm bells with concerns over how the government can balance its books going forward. and massively increasing the pressure on the chancellor rachel reeves. jane foley is head of fx strategy at rabobank.

it has been quite a start to the year for the likes of you and others within financial markets to follow the uk economy? it markets to follow the uk economy?— markets to follow the uk economy? markets to follow the uk econom ? . . , economy? it certainly has. it was... there _ economy? it certainly has. it was... there was _ economy? it certainly has. it was... there was a - economy? it certainly has. it was... there was a lot - economy? it certainly has. it was. .. there was a lot of- was... there was a lot of terminal last week and the uk government bond market, if you look at that, it ended the week off its was level so a little sign of stability but i think the market in the uk still quite nervous, still quite vulnerable if it were to get bad news. the market watching very closely. notjust bad news. the market watching very closely. not just the political developments but also the economic developments as well. the economic data that we have this week as well.- have this week as well. looking at the economics, _ have this week as well. looking at the economics, this - have this week as well. looking at the economics, this plan, - at the economics, this plan, the government will call this a game changerfor the uk economy which what everybody is desperately calling for, saying what is the plant to grow the uk economy? we need an industrial strategy that is countrywide etc etc, to what

extent will this ai 0pportunities action plan feel that? it opportunities action plan feel that? , . ., , opportunities action plan feel that? ,. ., , , that? it is certainly good news but is it a _ that? it is certainly good news but is it a big _ that? it is certainly good news but is it a big surprise? - that? it is certainly good news but is it a big surprise? not i but is it a big surprise? not really. many companies, many teachers for instance are already using ai and you can expect that to be the case going forward. if you like ai going forward. if you like al was already there and it is good if the government is going to give some support to that, certainly, and we must remember, about last spring, the imf said the uk was quite world positioned as an economy to benefit from al and that is because there is a reasonably well educated labour force and regulations read anything so hopefully this economy in the uk will benefit through ai and the reason, or how it would benefit, would be raising productivity which really is the key to unleashing wealth as well as a growth through the economy. well as a growth through the economy-—

economy. will it counter the im act economy. will it counter the impact of — economy. will it counter the impact of the _ economy. will it counter the impact of the budget - economy. will it counter the impact of the budget and . economy. will it counter the impact of the budget and if. economy. will it counter the i impact of the budget and if the changes that take place in april, where businesses across the country are going to have to stomach more costs? equity just back from china and we will talk about that in a moment, but the question is whether this sort of announcement and strategy is enough to counter the concern on the budget. —— rachel reeves back from china. it is on the budget. -- rachel reeves back from china.— back from china. it is a question _ back from china. it is a question of _ back from china. it is a question of timing. - back from china. it is a l question of timing. right back from china. it is a - question of timing. right now interest rates have gone up and that will have an immediate effect. it is already affecting how the market is expecting rachel reeves to manage the physical conditions. will she have to announce more austerity or tax hikes? these are offsetting factors for growth. because the spelling has gone down, will the bank of england not be able to cut interest rates as much as the market had been anticipated? and that is

another factor. been anticipated? and that is anotherfactor. where is the been anticipated? and that is another factor. where is the ai effect is likely to be a more subtle, a more gradual effect so the timing of the two issues are not necessarily a natural offset. yes, ai will hopefully generate productivity and growth over the medium and longer term but unfortunately hit to interest rates will have a more immediate impact. thank ou so a more immediate impact. thank you so much _ a more immediate impact. thank you so much and _ a more immediate impact. thank you so much and have _ a more immediate impact. thank you so much and have a - a more immediate impact. thank you so much and have a great - you so much and have a great week. staying with uk growth, to china now where the uk chancellor rachel reeves has wrapped up a much lambasted two day visit, heralded as a major economic relationship reset between london and beijng. the chancellor has faced a raft of criticism over the trip which came at the end of an extremely turbulent week on uk financial markets. this, the first meeting between a uk chancellor and her chinese counterpart in 7 years, reeves defended, saying the relationship is "squarely in our national interest". she comes away with agreements

the government is touting as worth some £600 million to the uk economy over the next 5 years, with more to come. but with things like the upcoming trump presidency threatening escalating tensions with china — this may all be short lived. dr william matthews is senior research fellow for china and the world at the think tank, chatham house. what is your assessment of her trip? of course that has been a lot of criticism. the government is quick to talk about the benefits. what is your benefit?— about the benefits. what is your benefit? what this trip is done really — your benefit? what this trip is done really is _ your benefit? what this trip is done really is established - your benefit? what this trip is done really is established a i done really is established a new platform or a revised platform for consistent engagement with china. i think it is important to remember we are still in the early stages of this government's relationship with china and the ongoing revived uk relationship

with china, and going forward, the key issue though is going to be navigating the trade—offs that exist between economic opportunities for the uk on the one hand and arrange of risks that come with those engagements with china. security and economic and technological dependence. that said, my take on this personally is that the engagement is important because china's role in the world, the second largest economy, and increasingly influential technological power, is such that the uk cannot afford to not engage in some form. i5 not engage in some form. is this government getting it right? sir keir summer met with xijinping, the first in several years and now we have

the uk chancellor doing a similar thing the uk chancellor doing a similarthing and the uk chancellor doing a similar thing and yet they have to manage what they i was described as a special relationship with the us. we wonder what president—elect donald trump is thinking about all this? , ,., ~ all this? yes, so i think there are a few _ all this? yes, so i think there are a few ways _ all this? yes, so i think there are a few ways that _ all this? yes, so i think there are a few ways that could i all this? yes, so i think there are a few ways that could go. we do not know yet precisely what trump's policies are going to bed towards china or towards the uk and other allies but the indications we do have suggest there is going to be a return to a much more belligerent attitude towards china on the economic front but also much more transactional attitude towards us allies. that doesn't mean the uk could get caught in between. —— that doesn't mean. we have in the uk significant supply chain dependence on china. including four key areas like green technology going forward but the us also has an

enormous investment and trade footprint in the uk. underlying thatis footprint in the uk. underlying that is the trade—off between leverage on both sides. it is that is the trade-off between leverage on both sides. it is a trinket tight _ leverage on both sides. it is a trinket tight to _ leverage on both sides. it is a trinket tight to walk. - leverage on both sides. it is a trinket tight to walk. thank i trinket tight to walk. thank you very for your time. thank ou. let's get some of the day's other news now. china's trade surplus with the united states widened to almost 970 billion dollars last year, which is a record high, according to state media. this came as export growth quickened in december, expanding by 10.7 percent compared to last year. beating expectations and up from 6.7 percent in november. apple's board of directors have recommended that investors vote against a shareholder push to abolish the company's diversity, equity, and inclusion programmes. it comes after a conservative think tank proposed that the company drop it as it increases the risk of possible litigation. apple has since called the move "unnecessary" in a regulatory filing.

around the world and across the uk, this is bbc news.

to france now, where the new prime minister, francois bayrou is meeting with representatives from the 4 main farming unions today. as the biggest agricultural producer in the european union, french farmers have been protesting about the recent free trade deal with the mercosur group of south american countries. the french farmers fear it would lead to a raft of cheap imports — not made to eu standards — that they can't compete with. and are calling for it to be blocked. charlotte emlinger is an economist at cepii, the government funded french centre for research and expertise on the world economy. she specialises in agro—food trade.

hello to you. should this deal be blocked in your opinion? farmers unions are meeting today with the prime minister today with the prime minister to make sure that promises made ijy to make sure that promises made by the former government will be kept and the farmers are opposed to the agreement between the agreement and mercosur because it fails a competition of big exporters of argentina and brazil, other countries that are really competitive and i have less aggro standards. but overall the competition is expected to be really low, because the reduction in tariffs in the agreement is only for small quantities of beef so the quantities of beef so the quantities of beef so the quantities of imports that are expected in the agreement for the more sensitive sector

represent only 2% of the overall perception in the year so it is really low overall. it also protects european markets because they will have entry at the border and there is no addition in inaudible. can i conclude from _ addition in inaudible. can i conclude from that, - addition in inaudible. can i conclude from that, that i addition in inaudible. can || conclude from that, that you believe this is actually a good deal for france? believe this is actually a good dealfor france? the believe this is actually a good deal for france? the deal between the european union and mercosur? it between the european union and mercosur? , ., my mercosur? it is a tricky question _ mercosur? it is a tricky question because i mercosur? it is a tricky| question because there mercosur? it is a tricky i question because there is always a winner and a loser but the agreement is protecting these sensitive sectors with high standards for quarters of tariffs and on the other side, even sectors that will gain, such as sheep and beef and binder sectors, where we can

expect higher increase towards mercosur, it is a big market with high terrace.— mercosur, it is a big market with high terrace. this meeting is takin: with high terrace. this meeting is taking place _ with high terrace. this meeting is taking place today. _ with high terrace. this meeting is taking place today. what i with high terrace. this meeting is taking place today. what do | is taking place today. what do you then will happen and will fundamentally this deal finally go through between the eu and mercosur because the agreement todayis mercosur because the agreement today is already signed so what we expect is an increase in trade within a two parts. but to come back _ trade within a two parts. but to come back to _ trade within a two parts. pm to come back to the meeting with the farmers union and the prime minister today, in fact the opposition to the mercosur agreement for french farmers is more a unifying symbol for farmers it is not really that problem, the opposition to this agreement is more of now to have a bargaining power with the government. to negotiate something else the government. to negotiate someth