' best day since the election as their best day since the election as bank profits soar and rate cut hopes are rekindled. the taiwanese chip giant tsmc�*s sees profits rise sharply. plus a diversity of opinion, us firms grow back all cancelled their equality programmes amidst pressure from conservative groups, could the debate be heading this way? hello and welcome. we start in the uk, we havejust had the latest growth figures that have landed to show that the ua k, the uk economy grew by 80.1% in the month of november. that is at united growth. , 0.1%. rachael reeves has reiterated her pledge to go further and faster to improve economic

growth and boost living standards, declaring it was that number one priority of the government. yesterday, government borrowing costs fell sharply on bond markets, and investors have been worried about the weak state of the uk economy as well as the chancellor's borrowing plans and the impact of the tax rises on business. here is mark ashdown. bruderer in telford has been manufacturing and refurbishing high precision presses for nearly 60 years. they provide parts for a range of sectors, from the automotive industry to electronics and food. with 15 employees, there's some concern about how the incoming budget policies will affect their costs, but they're more worried about slowing demand from customers. as soon as the budget hit, theyjust said, we're putting this on the back burner until we see how the marketplace pans out. equivalently, you know, this has then put a dampener on our business because we can't see a way forward when everybody�*s complaining about costs.

and it's notjust costs for the business, it's running costs of the vehicles, running costs for the engineers, for food and what have you. everything's gone up. those increased taxes are to fund public services like the nhs. but many businesses are worried about how they'll be squeezed by higher costs and the effects of that on prices, staffing levels and their own growth. the second half of last year, growth was basically snuffed out by a negative rhetoric from the government and then followed through by the negative reality of the policy choices which were made, which were even worse than we were we're expecting. so we've started this year with business confidence at rock bottom. so what do we need to see from government? well, we need a message shift. we need positivity. we need direction of travel. we need growth prioritisation. and we need delivery. there is a budget coming in october and it's going to be painful. the prime minister came in for criticism for playing down the economy after the election. that was part of a clear strategy

to convince voters that labour inherited a less than rosy economic picture after iii years of conservative rule. but today's monthly gdp figure for november is the first since the government's own budget. it says it will still take time to see results. but critics argue it's time now for the prime minister and chancellor to take responsibility for their own policies. economists do expect us to grow this year, but by not as much as the office for budget responsibility forecasts. companies like here in telford still need convincing they'll get the tools they need to thrive. mark ashdown, bbc news. let's discuss this with george buckley, economist. .1 other percent of growth in november, economists

were predicting more than that. it really is as smidgen. it is were predicting more than that. it really is as smidgen.— really is as smidgen. it is not a bi rise really is as smidgen. it is not a his rise at _ really is as smidgen. it is not a big rise at all _ really is as smidgen. it is not a big rise at all and _ really is as smidgen. it is not a big rise at all and there - really is as smidgen. it is not a big rise at all and there have . really is as smidgen. it is not a i big rise at all and there have been backward down revisions so it is not particularly great when you look at how far gdp has expanded since the pandemic, says the very start of 2020, it is only about 2.5%. and that makes the uk one of the world's weakest developed markets, in terms of how much of a recovery we have seen since then. but of how much of a recovery we have seen since then.— of how much of a recovery we have seen since then. but when you look at the detail, _ seen since then. but when you look at the detail, as _ seen since then. but when you look at the detail, as to _ seen since then. but when you look at the detail, as to what _ seen since then. but when you look at the detail, as to what was - at the detail, as to what was boosting the economy in november, the 0 n s is saying it was restaurants, it was pubs, hospitality is the sector that is very, very concerned about this year, especially after april. that is riuht. year, especially after april. that is right- if _ year, especially after april. that is right- if you — year, especially after april. that is right. if you look _ year, especially after april. that is right. if you look at _ year, especially after april. trust is right. if you look at some of the other detail, we have seen, for example, manufacturing and industrial production we care, services have only eked out and a

small gain, it is questionable how much growth we are likely to see. and one point that we have been making is that if you look at some of the business surveys that give you a head start on some of this data, they are suggesting that firms are not particularly confident, it is a big question on how much people will continue to consume, consumption is the biggest part of the uk economy, and i think there are big uncertainties as to how strongly we can grow over the course of the next couple of years. what of the next couple of years. what will the bank _ of the next couple of years. what will the bank of _ of the next couple of years. what will the bank of england - of the next couple of years. what will the bank of england do - of the next couple of years. what will the bank of england do next? many are saying they will cut rates in february, your thoughts? i think the will in february, your thoughts? i think they will and _ in february, your thoughts? i think they will and l— in february, your thoughts? i think they will and i think _ in february, your thoughts? i think they will and i think the _ in february, your thoughts? i think they will and i think the market - in february, your thoughts? i think| they will and i think the market has increased the likelihood of the expectation that they will cut in february. and i think they will. our view is they will continue to cut all the way through this year and possibly even into 2026, maybe not at every meeting, perhaps that every other meeting. the reason for that is that inflation is much less of a

concern than it was before, the biggest concern of angling and has now is the fact that economic growth is so weak. , the biggest concern for the bank of england. let’s is so weak. , the biggest concern for the bank of england. let's head to new york— for the bank of england. let's head to new york because _ for the bank of england. let's head to new york because after - for the bank of england. let's head to new york because after a - for the bank of england. let's head| to new york because after a wobbly start to the year the balls are very much back. as well as encouraging news on us inflation, bumper profits at some of wall street's biggest banks have set the scene for a strong earning season, as michelle fleury reports. bell rings. this was the best trading session for us docs since the day after the election. ——this was the best trading session for us stocks since the day after the election. the start of this year has been pretty ugly for investors. they had a big inflation and interest rate scare that wiped out most of the gains of the last two months. on wednesday, they breathed a sigh of relief.

even though prices edged up in december, new inflation data shows the core number which stretches out volatile food and energy prices rose less than expected, calming market fears that the us central bank may have to act more aggressively to stabilise prices. shares surged and bond yields fell. the latest earnings season also got a boost from strong bank results. jpmorgan and goldman sachs both reported a surge in profits. all of this data feeling that market optimism that perhaps that post—election rally was justified after all. so what is to come on the markets? the focus of late has been about a potential reflation, certainly as we see donald trump coming into office, there is potential for his tariffs to have a knock—on impact, and there is also the fact that the pound has been weakening so within the uk, certainly, there is a perception that we could be importing inflation from the us. of course, we are not necessarily out of the woods,

there are still question marks about what will happen when donald trump comes into power, there are also question marks about when we see the impact of the labour policy to raise national insurance contributions national insurance contributions by businesses by businesses and the minimum wage, and the minimum wage, so certainly there are still some so certainly there are still some question marks to be answered. question marks to be answered. but certainly this feels but certainly this feels like a relief rally, like a relief rally, it has been the best cpi day it has been the best cpi day since late 2023, and so really it since late 2023, and so really it feels like markets have somewhat got feels like markets have somewhat got a little bit carried away in one a little bit carried away in one direction and now it is kicking direction and now it is kicking in on the other direction, in on the other direction, it doesn't necessarily mean it doesn't necessarily mean we are out of the woods we are out of the woods but certainly coming on the same day but certainly coming on the same day that we are seeing a bumper start that we are seeing a bumper start for earning season with for earning season with the big banks reporting the big banks reporting and continuing today, and continuing today, really, it feels like we are now really, it feels like we are now able to move into this period able to move into this period as we head towards trump's as we head towards trump's inauguration with potentially inauguration with potentially more of an upbeat tone. more of an upbeat tone. let's talk about that because the let's talk about that because the outgoing us treasury secretary has outgoing us treasury secretary has warned the trump administration warned the trump administration

plans to tax inputs will raise plans to tax inputs will raise costs for consumers. trump has imposed, proposed a 10% tariff on canada and mexico until they clampdown on drugs and migrants coming into the us and

has talked about a universal tariff from day one and has talked tough on china, mexico, canada, and we have seen his administration will take a gradual report. seen his administration will take a gradual report-— gradual report. they are going to implement _ gradual report. they are going to implement tariffs _ gradual report. they are going to implement tariffs and _ gradual report. they are going to implement tariffs and there - gradual report. they are going to implement tariffs and there are l gradual report. they are going to l implement tariffs and there are so many ideas floating among his senior team about how they are going to do it makes me believe the universal tariff is more and more likely. you are not hearing deliberation about how, are we going to do it, more about how. that is a pretty big indicator that the universal tariff is probable in the next term. hagar is probable in the next term. how should foreign _ is probable in the next term. how should foreign governments, businesses, prepare? foreign governments _ businesses, prepare? foreign governments should - businesses, prepare? foreign governments should first - businesses, prepare? foreign| governments should first know businesses, prepare? foreign- governments should first know their priorities, have an agenda, have a plan, understand the stakeholder relationships in the united states. not like litigation per se but if there is an excluding process, how

can you advise your company to take advantage of it.— advantage of it. around the world and across _ advantage of it. around the world and across the _ advantage of it. around the world and across the uk, _ advantage of it. around the world and across the uk, this _ advantage of it. around the world and across the uk, this is - advantage of it. around the world and across the uk, this is bbc - advantage of it. around the world . and across the uk, this is bbc news.

you are with business today. the taiwanese chip maker tsmc has seen its pre—tax profits leap to $11.1; billion. it is an indicator of sustained ai investment by the likes of microsoft and amazon, both companies are expanding their data centre endeavours so fast they are actually building nuclear reactors to power them. but geopolitical ructions may hamper the chip makers continued growth this year. let's explore this with the chief executive of future horizons, a consultancy in the semiconductor and electronics industry. good morning

to you. wasn't surprised at all to hear that in the last quarter of last year, tsmc saw huge profits, when you take into account the race for al among the world's biggest companies. for al among the world's biggest companies-— for al among the world's biggest comanies. ~ , ., companies. well, exactly. to some extent, companies. well, exactly. to some extent. the — companies. well, exactly. to some extent, the results _ companies. well, exactly. to some extent, the results were _ companies. well, exactly. to some extent, the results were quite - extent, the results were quite unsurprising because they do have a dominant position, not only in al but in the whole manufacturing sector, said they are companies they serve range from video but also apple, all of the chips or the main brains of the chip in their iphone 16 which is currently ramping production, is also part of them. in the fourth quarter, they had two huge market drivers and i couldn't make enough chips, and they are in the monopoly in that sector so they have no real competition. it is not surprising these results were that good. surprising these results were that aood. ., , ., , surprising these results were that ood. ., , ., , ., ., good. there are questions about what

the future holds. _ good. there are questions about what the future holds. interestingly, - the future holds. interestingly, marco rubio, the present elect tramp nomination for secretary of state, the us top diplomat, has been speaking in the last few hours saying china is the biggest threat going forward to the us and its ambitions, when it comes to taiwan in particular, what are your thoughts on that elephant in the room when it is about tsmc�*s outlet? longer term, these are the issues and they are political rather than business orientated. there are two sides to that, one is china's political ambitions for taiwan but there is also the fact that tsmc is a huge importer of america, so on the one hand you've got this political threat, what will china due to taiwan? will it nationalise it, will it bring it back into the chinese national industry? and what about the tariffs that president trump is thinking of bringing in?

that would directly affect tsmc as well. it that would directly affect tsmc as well. , , ., ,, ~ ., , well. it is interesting how tsmc has develo ed well. it is interesting how tsmc has developed in _ well. it is interesting how tsmc has developed in the _ well. it is interesting how tsmc has developed in the last _ well. it is interesting how tsmc has developed in the last year, - well. it is interesting how tsmc has developed in the last year, and - well. it is interesting how tsmc has developed in the last year, and i. well. it is interesting how tsmc has| developed in the last year, and i am sure that their geopolitics and the risk is very much a part of that development, its big investment in its plant in dresden in europe which was a huge boost to the uk, surrey, the european chip sector and its own security in that area. also in the us as well as an investment is in bits on the ground in the us. that is absolutely _ bits on the ground in the us. that is absolutely right _ bits on the ground in the us. trust is absolutely right but in reality, these are just a drop in the ocean, it is a very tiny part of total manufacturing monolith that tsmc has developed. and also, at the manufacturing monolith that tsmc ha