we start with the uk economy because the uk's finance minister, chancellor of the exchequer rachel reeves, is in the swiss alps on a mission to talk up the uk to international investors. her trip to the world economic forum in davos comes amid concerns on financial markets about the weak state of the british economy and the government finances. they have sent uk borrowing costs soaring on bond markets. those concerns were underlined today as official figures showed a surge in uk public sector borrowing last month. the gap between revenues and spending, that had to be covered by borrowing, was a £17.8 billion in december. that is over £10 billion higher than the same month in 2023 and the highest send a figure for years. rachel reeves has been speaking to our economic set editor in davos and he has to watch tough decisions she was making

to create economic growth. reforming the planning system. we have — reforming the planning system. we have got rid of the monosodium on onshore wind, the cheapest— monosodium on onshore wind, the cheapest form of energy, so that — cheapest form of energy, so that investors can build that in britain. we have signed off expansion at stansted and city airports — expansion at stansted and city airports. the previous government could have done any of those — government could have done any of those things and they didn't because — of those things and they didn't because they didn't prioritise growth _ because they didn't prioritise growth. this government is and when _ growth. this government is and when there are decisions around infrastructure and investment the answer can't always be nulh — the answer can't always be null. ~ , ., null. with this government the answer is yes. _ null. with this government the answer is yes. it _ null. with this government the answer is yes. it seems - null. with this government the answer is yes. it seems like i answer is yes. it seems like you are re—evaluating heathrow and gatwick, key investors here in davos their own there was a pause. i in davos their own there was a ause. ., �* .., in davos their own there was a ause. ., �* _, ., pause. i won't comment on speculation — pause. i won't comment on speculation but _ pause. i won't comment on speculation but this - pause. i won't comment on - speculation but this government is determined to bring in trade and investment into britain and we will— and investment into britain and we will look at all plans to bring _ we will look at all plans to bring in _ we will look at all plans to bring in infrastructure to build _ bring in infrastructure to build investment in britain.

are — build investment in britain. are you _ build investment in britain. are you saying the growth argument now trumps the three tests on the environment at heathrow? i tests on the environment at heathrow?— tests on the environment at heathrow? i am not going to speculate — heathrow? i am not going to speculate on _ heathrow? i am not going to speculate on tests _ heathrow? i am not going to speculate on tests for - speculate on tests for something that we haven't set policy — something that we haven't set policy on _ something that we haven't set policy on. we need to be a magnet— policy on. we need to be a magnet for global talent and our businesses need to be trade in and _ our businesses need to be trade in and investing around the world _ in and investing around the world. �* ., ., , in and investing around the world. ., , , in and investing around the world. ., , world. borrowing is up and urowth world. borrowing is up and growth was _ world. borrowing is up and growth was flat, _ world. borrowing is up and growth was flat, there - world. borrowing is up and growth was flat, there was world. borrowing is up and i growth was flat, there was a spike in borrowing costs in the first weeks of january. isn't that the verdict of the markets on the uk economy right now? the international monetary fund revised — the international monetary fund revised up the projections that growth — revised up the projections that growth this year for the uk and forecesls— growth this year for the uk and forecasts we will be the fastest major european economy in terms — fastest major european economy in terms of growth this year. but have _ in terms of growth this year. but have we got to go further and faster?— but have we got to go further and faster? ~ ,,., , ~ i. and faster? absolutely. and you are ready to _ and faster? absolutely. and you are ready to make _ and faster? absolutely. and you are ready to make cuts - and faster? absolutely. and you are ready to make cuts if - are ready to make cuts if necessary? i are ready to make cuts if necessary?— are ready to make cuts if necessa ? ., , ., , necessary? i have been really clear that _ necessary? i have been really clear that our _ necessary? i have been really clear that our fiscal _ necessary? i have been really clear that our fiscal rules - necessary? i have been really clear that our fiscal rules are | clear that our fiscal rules are non—negotiable. they are the bedrock— non—negotiable. they are the bedrock of stability that families need after the liz

truss— families need after the liz truss mini budget which said mortgage rate soaring and the stability— mortgage rate soaring and the stability businesses needs so they— stability businesses needs so they understand the cost of capital _ they understand the cost of capital to doing business in brilaih _ capital to doing business in britain. , ., , britain. the big factor here is what's happening _ britain. the big factor here is what's happening in - britain. the big factor here is what's happening in the - britain. the big factor here is| what's happening in the white house with the likelihood of tariffs being levied on g7 and western allies. if donald trump tries to levy them will the uk retaliate?— tries to levy them will the uk retaliate? �* , ., ., ., retaliate? let's not get ahead of ourselves. _ retaliate? let's not get ahead of ourselves. no _ retaliate? let's not get ahead of ourselves. no tariffs - retaliate? let's not get ahead of ourselves. no tariffs have i of ourselves. no tariffs have been — of ourselves. no tariffs have been levied on the uk and i look— been levied on the uk and i look forward to working with the donald trump administration. �* .. , administration. the americans are not just — administration. the americans are notjust using _ administration. the americans are notjust using trade - administration. the americans are notjust using trade and i are notjust using trade and tariffs economically they are using it at diplomatic leverage over greenland and things like that. this is a different thing and you need to respond strongly to it.— and you need to respond strongly to it. when donald trum - strongly to it. when donald trump was _ strongly to it. when donald trump was last _ strongly to it. when donald trump was last president . strongly to it. when donald - trump was last president trade between — trump was last president trade between the uk and the us increased and i have no doubt that— increased and i have no doubt that can — increased and i have no doubt that can happen again in the interests _ that can happen again in the interests of both of our

economies.— interests of both of our economies. ., ., economies. patrick thompson from jcb morgan _ economies. patrick thompson from jcb morgan told - economies. patrick thompson from jcb morgan told us - economies. patrick thompson | from jcb morgan told us earlier that he is really positive on the uk as a place to invest. i the uk as a place to invest. i think there are some headwinds for sure — think there are some headwinds for sure and _ think there are some headwinds for sure and the _ think there are some headwinds for sure and the fiscal _ for sure and the fiscal position— for sure and the fiscal position is— for sure and the fiscal| position is challenging for sure and the fiscal - position is challenging but i would — position is challenging but i would point _ position is challenging but i would point out _ position is challenging but i would point out that - position is challenging but i would point out that the - position is challenging but i i would point out that the yields are moving _ would point out that the yields are moving in— would point out that the yields are moving in line _ would point out that the yields are moving in line with - would point out that the yields are moving in line with other. are moving in line with other markets _ are moving in line with other markets particularly- are moving in line with other markets particularly the - are moving in line with other markets particularly the us i are moving in line with other. markets particularly the us so inflation — markets particularly the us so inflation is _ markets particularly the us so inflation is persistent. - markets particularly the us so inflation is persistent. the - inflation is persistent. the banking _ inflation is persistent. the banking and _ inflation is persistent. the banking and have - inflation is persistent. the banking and have made i inflation is persistent. the . banking and have made their position— banking and have made their position verv _ banking and have made their position very clear. - banking and have made their position very clear. some - banking and have made their position very clear. some ofl position very clear. some of the reforms _ position very clear. some of the reforms that _ position very clear. some of the reforms that we - position very clear. some of the reforms that we expectl position very clear. some of. the reforms that we expect to come — the reforms that we expect to come online _ the reforms that we expect to come online will— the reforms that we expect to come online will have - the reforms that we expect to come online will have an - the reforms that we expect to . come online will have an impact so we _ come online will have an impact so we are — come online will have an impact so we are constructive. - come online will have an impact so we are constructive. you - come online will have an impact so we are constructive. you do. so we are constructive. you do need _ so we are constructive. you do need to— so we are constructive. you do need to deliver— so we are constructive. you do need to deliver some - so we are constructive. you do need to deliver some time, . so we are constructive. you dol need to deliver some time, you need _ need to deliver some time, you need to— need to deliver some time, you need to take _ need to deliver some time, you need to take some _ need to deliver some time, you need to take some time - need to deliver some time, you need to take some time to - need to deliver some time, you need to take some time to seel need to take some time to see some — need to take some time to see some of— need to take some time to see some of the _ need to take some time to see some of the impact _ need to take some time to see some of the impact of- need to take some time to see some of the impact of those i some of the impact of those reforms _ some of the impact of those reforms coming _ some of the impact of those reforms coming through - some of the impact of those| reforms coming through into some of the impact of those - reforms coming through into the real economy _ reforms coming through into the real economy but _ reforms coming through into the real economy but as _ reforms coming through into the real economy but as i— reforms coming through into the real economy but as i said - reforms coming through into the real economy but as i said we i real economy but as i said we remain— real economy but as i said we remain constructive _ real economy but as i said we remain constructive on - real economy but as i said we remain constructive on the i real economy but as i said we | remain constructive on the uk both— remain constructive on the uk both as — remain constructive on the uk both as an— remain constructive on the uk both as an investment - both as an investment destination _ both as an investment destination and - both as an investment - destination and importantly as a place — destination and importantly as a place to— destination and importantly as a place to do— destination and importantly as

a place to do business. - let's to stay with the world economic forum in davos. all eyes there are of course on the us and the impact president trump's policies will have on the global economy. many fear global inflation could make a comeback if the cost of goods is pushed up by tariffs. among them is nicolai tangen, chief executive of the norwegian sovereign wealth fund, which controls assets of one and a quarter trillion dollars. he has been speaking to the bbc in davos. i think that is one of the big risks— i think that is one of the big risks in— i think that is one of the big risks in the marketjust now with— risks in the marketjust now with the _ risks in the marketjust now with the fact that these policies are inflationary. tariffs _ policies are inflationary. tariffs are inflationary even though _ tariffs are inflationary even though you could argue it's a one-off _ though you could argue it's a one—off. if you take away supply— one—off. if you take away supply in _ one—off. if you take away supply in the labour market by deporting people that will lead to everything else being equal higher— to everything else being equal higher salaries and that is inflationary. and you already have — inflationary. and you already have high deficits and high level— have high deficits and high level of— have high deficits and high level of government debt and there — level of government debt and there is— level of government debt and there is potentially a time where _ there is potentially a time where people will say the debts

are already high and we want to have _ are already high and we want to have a — are already high and we want to have a higher coupon to lend money— have a higher coupon to lend money to— have a higher coupon to lend money to governments around the world _ money to governments around the world so— money to governments around the world so you could see an uplift _ world so you could see an uplift in _ world so you could see an uplift in rates like you have partlv — uplift in rates like you have partly seen over the last six months _ us shares have opened higher, led by big tech, after president trump unveiled a plan to boost america's ai infrastructure that could be worth as much as $500 billion. adding to the bullish mood, a strong quarterfrom netflix, its shares have surged to an all—time high after it added a record number of new subscribers last quarter, more on that in a moment. all this optimism is for now outweighing concerns about the global trade war. that's despite a warning from the white house that a 10% tax on chinese imports could come in by the end of the month. donald trump has already threatened a 25% tariff on canada and mexico within the same timeframe. let's talk to our north america business correspondence. let's

start first of all the that big investment in al announced by the white house. it feels with these sorts of sums it's a game changer, togas is throwaway that money might get spent? the usa is that money might get spent? tue: usa is pushing that money might get spent? tte: usa is pushing higher that money might get spent? "tt9: usa is pushing higher and that money might get spent? tt9 usa is pushing higher and led by the technology in part because of those netflix results. but also in part because of this donald trump ai plan. a $500 billion private investment on infrastructure ai at this as a joint venture which is called stargate between open ai and oracle which will build data centres in the us and donald trump says it will create over 100,000 jobs in the us. i think the question really is whether this will actually increase the gap when it comes to us

exceptionalism on tech we have seen pretty much for the past year or so, this is something i spoke to ryan bending about, he is a wealth adviser. t spoke to ryan bending about, he is a wealth adviser.— is a wealth adviser. i think this plan _ is a wealth adviser. i think this plan re-invigorates i is a wealth adviser. i think| this plan re-invigorates the this plan re—invigorates the tech — this plan re—invigorates the tech story— this plan re—invigorates the tech story that _ this plan re—invigorates the tech story that the - this plan re—invigorates the . tech story that the innovation trend — tech story that the innovation trend in— tech story that the innovation trend in the _ tech story that the innovation trend in the trade _ tech story that the innovation trend in the trade is- tech story that the innovation trend in the trade is not- tech story that the innovationj trend in the trade is not over. if trend in the trade is not over. if you — trend in the trade is not over. if you look— trend in the trade is not over. if you look at _ trend in the trade is not over. if you look at performance i trend in the trade is not over. if you look at performance in i if you look at performance in the market— if you look at performance in the market over _ if you look at performance in the market over the - if you look at performance in the market over the last- if you look at performance in i the market over the last couple of years — the market over the last couple of years we _ the market over the last couple of years we know _ the market over the last couple of years we know the _ the market over the last couple of years we know the mag - the market over the last couplel of years we know the mag seven has been — of years we know the mag seven has been a — of years we know the mag seven has been a big _ of years we know the mag seven has been a big contributor. - has been a big contributor. last — has been a big contributor. last year— has been a big contributor. last year it— has been a big contributor. last year it contributed i has been a big contributor. last year it contributed to. last year it contributed to about _ last year it contributed to about 55% _ last year it contributed to about 55% of _ last year it contributed to about 55% of the - last year it contributed to about 55% of the overall. last year it contributed to - about 55% of the overall return of the — about 55% of the overall return of the 5&p _ about 55% of the overall return of the sap 500. _ about 55% of the overall return of the sap 500. so _ about 55% of the overall return of the sap 500. so i _ about 55% of the overall return of the s&p 500. so i think- about 55% of the overall return of the s&p 500. so i think this| of the s&p 500. so i think this morning — of the s&p 500. so i think this morning the _ of the s&p 500. so i think this morning the optimism - of the s&p 500. so i think this morning the optimism around i morning the optimism around investment— morning the optimism around investment and _ morning the optimism around investment and the _ morning the optimism around investment and the plan - morning the optimism around investment and the plan for. investment and the plan for growth _ investment and the plan for growth that— investment and the plan for growth that donald - investment and the plan for growth that donald trump i investment and the plan for| growth that donald trump is laying — growth that donald trump is laying out _ growth that donald trump is laying out but _ growth that donald trump is laying out but also - growth that donald trump is laying out but also the - growth that donald trump is laying out but also the fact i laying out but also the fact that — laying out but also the fact that we _ laying out but also the fact that we didn't _ laying out but also the fact that we didn't see - laying out but also the fact that we didn't see wide i that we didn't see wide sweeping _ that we didn't see wide sweeping tariffs - that we didn't see wide sweeping tariffs get i that we didn't see wide - sweeping tariffs get announced this week— sweeping tariffs get announced this week gave _ sweeping tariffs get announced this week gave the _ sweeping tariffs get announced this week gave the market i sweeping tariffs get announced this week gave the market a i sweeping tariffs get announced| this week gave the market a bit of a sign — this week gave the market a bit of a sign of— this week gave the market a bit of a sign of relief _ this week gave the market a bit of a sign of relief as _ this week gave the market a bit of a sign of relief as earnings i of a sign of relief as earnings had — of a sign of relief as earnings had been _ of a sign of relief as earnings had been coming _ of a sign of relief as earnings had been coming in - of a sign of relief as earnings had been coming in better. of a sign of relief as earnings . had been coming in better than expectations_ had been coming in better than expectations and _ had been coming in better than expectations and we _ had been coming in better than expectations and we have - had been coming in better than expectations and we have seenj expectations and we have seen that reflected _ expectations and we have seen that reflected both— expectations and we have seen that reflected both on - expectations and we have seen that reflected both on the -

that reflected both on the stock _ that reflected both on the stock market _ that reflected both on the stock market and - that reflected both on the stock market and the i that reflected both on thel stock market and the bond market _ stock market and the bond market so _ stock market and the bond market so far _ stock market and the bond market so far this - stock market and the bond market so far this week. . stock market and the bond l market so far this week. the stock market _ market so far this week. the stock market doing - market so far this week. stock market doing pretty market so far this week.- stock market doing pretty well stock market doing pretty well and getting close to those all—time highs. really shaking off any concerns they may have about what happens as a result of tariffs. potentially 10% on chinese imports. we know about a 25% tariff on canadian or mexican, the two biggest trade partners for the us. that could push up inflation and that could be a game changer in terms of how much it's costing americans to consume this stuff. so far stock markets are not that worried.— stuff. so far stock markets are not that worried. stock markets seem to be _ not that worried. stock markets seem to be pushing _ not that worried. stock markets seem to be pushing high - not that worried. stock markets| seem to be pushing high despite the announcement on tariffs, the announcement on tariffs, the 10% levy on imports from china could come by february the 1st and that's following the 1st and that's following the 25% threat for canada and mexico during that same timeframe. he is also threatened tariffs on euro but we don't know the details about that. there was a lot concern on tariffs and how it could be inflationary. markets pretty much taking it in its stride both in the us and in europe because if you remember donald

trump had previously promised up trump had previously promised up to 60% tariffs on imports from china so there is this one idea that perhaps those tariffs won't be as bad as feared and then also they were not announced on the day one of the executive orders. the only actual action that has been confirmed as a review on trade policies and that gives china and some of the other partners time to respond or try to avert those levies as well. respond or try to avert those levies as well. thank you. shares of netflix have soared to an all—time high after it revealed a record jump in subscribers over the holiday season. the streaming giant signed up almost 19 million new customers between october and december, way more than wall street was expecting. 0ne analyst told reuters that when he saw the number he thought it was a typo! that means more than 300 million of us around the world subscribing to netflix. that continued growth has

pushed its stock market value to over $370 billion, more than all its rivals like disney, comcast paramount and warner brothers combined. growth has been boosted by new content including the return of hit south korean series squid game as well as to back nfl games and the jake paul versus mike tyson boxing match. the firm is also upping prices for many of the users. analyst ross benes told us it can do this as netflix is seen by many as a �*must have'. fewer people cancel netflix than — fewer people cancel netflix than they do the other streaming services. it's like a streaming services. it's like a utility— streaming services. it's like a utility bill _ streaming services. it's like a utility bill that most people keep— utility bill that most people keep re—subscribing and netflix knows — keep re—subscribing and netflix knows that so they are raising prices — knows that so they are raising prices knowing that most people keep— prices knowing that most people keep re—subscribing and netflix knows — keep re—subscribing and netflix knows that so they are raising prices — knows that so they are raising prices knowing that most people keep— prices knowing that most people keep re—subscribing and netflix knows — keep re—subscribing and netflix knows that so they are raising prices — knows that so they are raising prices knowing that most people change _ prices knowing that most people change its investors to focus less — change its investors to focus less on — change its investors to focus less on subscriptions and more on revenue and profit and it was — on revenue and profit and it was the _ on revenue and profit and it was the last quarter they have done — was the last quarter they have done so — was the last quarter they have done so and so raising prices

when — done so and so raising prices when you _ done so and so raising prices when you are telling people to look _ when you are telling people to look at — when you are telling people to look at profit is a good way of boosting _ look at profit is a good way of boosting your bottom line. that is our boosting your bottom line. that is your business _ boosting your bottom line. that is your business today. - boosting your bottom line. tngt is your business today. see you soon.

hello. the british defence secretary says a russian spy ship has been caught operating off the coast of the uk — just weeks after it was seen loitering over critical undersea infrastructure in uk waters. speaking in the house of commons, defence secretary john healey said that britain is prepared to take robust action to protect its national security. and i also want president putin to hear this message. the british defence secretary says a russian spy we see you, we know what you are doing and we will not shy away from robust action to protect this country. with our nato allies we are strengthening our response to ensure that russian ships and aircraft cannot operate in secrecy near the uk

or near nato territory. i discussed this story earlier with our security correspondent, frank gardner. britain as an island nation is very dependent on undersea cables, primarily for telecoms, for communications. and we're not alone in this. so there are also, in the baltic sea, a number of undersea cables, some of which have recently been cut. now, this particular vessel, the yantar, which is a russian surveillance vessel, was seen in november. loitering is the word that was used over britain's very sensitive undersea cables and it was effectively chased off. it departed southwards to the mediterranean, and it has now come backjust a few weeks later, and the royal navy surfaced a submarine quite close to it to basically give the russians the clear understanding that it was being monitored. and you saw therejohn healey, the defence secretary, saying that, you know, and he's also said this is a clear message to president putin that we're watching you.