european markets see stocks surging as the us warns record highs with defence stocks surging as the us warns it can't be counted it can't be counted on to defend the continent. on to defend the continent. also in the programme — taking to the skies in style — increasingly popular. increasingly popular. and fast fashion — as formula 1 welcomes more and more female fans, luxury brands are getting in pole position. in pole position. across europe put aside let's focus on top business let's focus on news. as we've been reporting, in just a few hours us on monday, at a summit in paris, european leaders the issue of how much countries

moscow increased defence spending by 42% last for defence spending? joining me now is rebecca christie, seniorfellow to talk to it is extremely controversial and complicated across with complicated across europe, with different leaders saying things at the moment. different things at the moment. what your different things at the moment. what i your — what are your thoughts?% what are your thoughts? j), has to what are your thoughts? true has to confront -ii funding shortfall 7 funding shortfall its 7 military capabilities and in the cost of managing the conflict in you conflict in ukraine. as you pointed out, the overall eu defence budget is broadly about 2% of gdp. there are calls to

raise to 4%. meanwhile the raise thatto 1.1%.meanwhile the has raise thatte 1.1%.mean.while the has been raise thatte 1.1%.mean.white the has been contributing about billion for ukraine 77 billion for ukraine and 60 billion for ukraine and have been estimates that be more like 200 eheeté lee reefs tihe e�*qq and that, eheele lee reere like e�*qq and that, you know, billion. andrthet', you know. even accounting billion. andrthot', you know. even accounting for isn't even accounting for another billion euros or so another 60 billion euros or so coming from but another 60 billion euros or so coming from _ coming from the us. but the trump _ and i coming from the us. but the | trump _ and the coming from the us. but the | trun president - and the coming from the us. but the | trun president. particular, e vance, n vance, speech vance, speech in vaznce, speech? in munich jd vance, his speech in munich but also the defence but also the defenoevseoretory, well, all but also the defenoevsearetary, well, all the as well, all the sentiments from us at the is vis europe 7 vis europe to step moment is europe has to step has to provide better up, has to provide better defence, more spending. sir defence, more spending. the sir keir starmer the saying mm mum will -ut boots on the round we will put boots on the ground ukraine if and when a is reached. and yet aggeement is reached. and yet likes of agreement is reached. and yet likes of the german scholz " ééhaléwill ,., " scholawillnot ”arm w said; will not ’ ”drawn sn' " said; will not ’ "argon onithischolzi will not drawn on this cholz wil is ot to be an intense time going to be an intense time of what did you make of the talks. what did you make of the paris , ,., . paris summitt? there is so much uncertainty _ paris summitt? there is so much uncertainty right _ paris summitt? there is so much uncertainty right now _ paris summitt? there is so much uncertainty right now because - uncertainty right now because it is not at all clear what the

us is actually going to do. = -:e: there were suggestions 7 us and russia n 7 us and russia might have 7 l on nd russia might have 7 l on theirissia might have 7 l on their own might have 7 l on their own without ave talks on their own without the eu or now sayin- we they are saying we might include more people. there is about involving troops in talk about involving troops in way not clear if some way but not clear if this willjust be providing support or if will be sending troops or if it will be sending troops onto the ground into ukraine. no discussion of air defences, air there are so many air support. there are so many questions. germany an coming 7 it election coming up, it makes sense would not want to sense they would not want to commit to do much right now. absolutely and it is the spending, the cost, which for all economies across is big issue, but for germany in a big issue, but for germany in where the economy particular. where the economy in dire straits, and particular, where the economy in dire straits, and that is key 7key7issu7e77 7 7 77 7 key issue in 7key7issu7e77 in this 77 7 key issue in7this election. a key issue in this election. germany really has to get used germany. reallybasetosgetused borrowing on the germany.reallybasetosgetused borrowing on the markets 7 it has chosen not to it has chosen not to do again; lt has. eheeen "ette ee flew—flew at the again; lt has. eheeen mite ee ~ . at the of its that, at the expense of its and its companies and economy and its companies and growth. there is an expectation that after the elections they

might relax this debt break might relaxthis debt break. have, will be 7 for defence, also. important for defence, also. good to get your take on all of geed te get yeur tehe en all ef ~ ~ rebecca christie this. rebecca christie from bruegel thank you bruegel institute, thank you forjoining us with terjeinina ue eith' eeur'te�*ee' ' all tefjeinina ue efith' eeuf’te�*ee' ' all of this. rising to record levels, driven mainly by defense and aerospace stocks. earnings in the industry to continue to increase. content provider prezco. good to you, james. i mean, are kind of very mean, markets are kind ofvery isn't it, when it this efutél; éht it; fiffiefi it efifiee this kind of thing. it eiutél; éfilt it; fifiefi it efifiei this kind of thing. it is to this kind of thing. it is like, where will the money be next? it will be in lindextlandit .' -~ '. zccgext?,andit .' -~ '. 777t7h707light of i77t7i'io7ught of ukraine it no thought of ukraine when it comes to the markets in this situation. it is about, we are situation. it is about. we are about defence spending hearing about defence spending has to go up that means has to go up so that means there will be investment, it means there be money in there will be investment, it me markete be money in there will be investment, it me market somewhere ney in there will be investment, it me market somewhere and in there will be investment, it me market somewhere and that the market somewhere and that is exactly what we saw

yesterday, and that is yesterday, and really that is exactly we have seen since knew donald trump was going we knew donald trumpwas'going be president the us. a to be president in the us. a �*situation, trump has similar situation, trump has been talking about he will been talking about what he will with the russia and ukraine do with the russia and ukraine conflict a long conflict for a long time now, and europe expected and europe has expected this of situation to happen. we sort of situation to happen. we know the likes of the uk have a record low defence almost a record low defence spending at the moment, so this spending—at—the—momeht, so this the markets has been quite a in the markets has been quite a big and a popular big one and quite a popular one over last few months, since over the last few months, since november, at least. it is over the last few months, since november, thateast. it is over the last few months, since november, that the. it is are rising, some of stocks are all rising, some of are listed in london and which are listed in london and in europe. and key which are listed in london and in in europe. and key which are listed in london and in european. and key which are listed in london and in european business, _iii! —um as well. but also, at the same time, money is going into safe 7still,7goliti7 7 7still7,7golid7doiing777 heeefle ettilfifildefithd set“? " and safe 7gold has at records for quite a now. it is one of long time now. it is one of those relentless moves higher whenever you get and whenever you **** end wheneveryou getth’re” ' ' "

to look at a fluei'fih es“: has; is leek at 7 7 7 a little “as“; es“: has; is leek at 7 7 7 a little bit as to how eutfiee a little lefties? tfi7hfii§7 i i 77 77 ”777 are e�*jtfiée ii little eitiéiei tfiihfiififi i i ii ii ”777 are behaving the markets are behaving not only do you have because not only do you have defence situation the this defence situation and the situation ukraine, we situation with ukraine. butwe. . . .. . . e . e .-, -. alsojust situation with ukraine. butwe. . . .. . . e . - .-. -. alsojust sitting here situation with ukraine. butwe. . . .. . . e . - .-. -. alsi for;t sitting here situation with ukraine. butwe. . . .. . . e . - .-. -. alsi for donald; here situation with ukraine. butwe. . . .. . . e . - .-. -. alsi for donald trump to 7 what tariffs announce what sort of tariffs he is going to on europe. he is going to put on europe. so europe very muchjust a so europe is very much just a little nervous because they little bit nervous because they have that issue, you have just been mentioning with your uest, guest,ithe 7 guest,ithe german previous guest, the german election, the fact that germany dominates the euro zone and dgminates the euro zone and dgmjnates the euro zone and �* economies dgmjnates the euro zone and �*economies on dgmjnates the euro zone and �* economies on the floor, their economies on the floor, they not willing to commit they are not willing to commit to defence because of that and they are not election and they are not willing to ggmmit too much it'll lting it}? tfirfirfi iftti itielfittiuieii either, fiillifigiiij tfirfirfi iftti itielfittiuieii either, because they wilting’to’commit’to’todmu’cn either, because they has else. either. because they has focus on that economy. to be a focus on that economy. so is very on the to be a focus on that economy. so the. very on the to be a focus on that economy. so the moment, on the to be a focus on that economy. so the moment, on t is edge at the moment, which is why the likes gold why the likes of gold and other safe havens do to get safe havens do tend to get quite a lot of and e-= has been 7 sagas" 77 7 7high 7 7fiag7iie7eii77 77 7 7high for has been highfora gold has been flying high for a time. cold has been lecc h for a time. . ., , ., ,, c9ld has been 7c7c h for a time. . ., , ., ,, i. c9ld has been l7c7c h for a time. . ., , ., ,, i. long time. james, thank you, we will speak— long time. james, thank you, we will speak to _ long time. james, thank you, we will speak to you _ long time. james, thank you, we will speak to you - soon. - hughes i hughes froni hughes from prezco. now to australia, where the central bank has cut

on inflation though it was still cautious at canstar in sydney. hello to this was really this rate cut hello to this was really was this rate cut ’——’ hello to this was really was ti' anticipated ——’ hello to this was really was ti' anticipated thatf it was highlyranticipated that iba cut the cash rate core inflation has because core inflation has made pretty good progress particular in last three months. the in the last three months. the end of the �* last year, the end of the yearlast'year, the stood up and said they governor stood up and said they know whether they may didn�*t’knowwh’ether'they may or not the rate in may not cut the cash rate in and core inflation was february and core inflation was sitting at it is now sitting at 3.6%. it is now 3.2%. it is in striking of our target distance of our target band which is 2% to 3% and that was enough for the rba to pull the trigger on a rate what is zi= ii on theirmind in weighing on their mind in particular is out of it

particular is just out of it has been for variable borrowers across the country. they have really had to feel the weight of 4.25 percentage points of of 4.25 percentage pointeef ~ ~ ~ . and unlike many tightening, and unlike many other countries around the e werld. the maietf ef with a mortgage are ’——=— 72; a rate so theiyi a rate so they feel = -: impact of these 7 rate the impact of these cash rate now they will get the hikes:n.owthey will get the of cash rate cuts. benefit of the cash rate cuts. i was going to ask you that. what impact will this for what impact will this have for people across australia? what is going to happen next? that is goinglto happen next? that the question. as ever the is the question. as ever the central bank is hedging its bets and not giving too much -— 7 away. .. .. . fact, we away... .. . fact, we really should keep in fact, we really should keep the cork on the champagne bottle, i think was the message battle. i think was the message. rba today. we are from rba today. we are not out of woods absolutely notoutrofthecwoods i don't think we will and i don't think we will go back to cash rate hikes, 7 i don't know that we i asnikriifihstlc}; will777 e flurry of cash rate cuts "quid? 77777 7 quick succession. have really iii dultfieuiteeeifi” gel??? 77 really differing iii dultfieuiteieififi7gehe§e7 really differing on we7 7 we have 7 we have the 7 national australia bank predicting many as five cash predicting as many as five cash

rate cuts the way through rate cuts all the way through the first quarter of next to the first quarter of next year, anz economists e7xp7e7cting just two and i are expecting just two and i think when look at it on balance and when you look at what the rba had to say today, 77thinkit7 think it might be thinkitmightbe 7to than five because have been australians have been incredibly in the incredibly resilient in the face of cash rate hikes. we have in the for have money in the bank. for at a record high, in home loan offset money in home loan offset account also at record —: = -: it is incredibly low, 7 and it is incredibly low, the cash rate and it is incredibly low, we e cash rate and it is incredibly low, we haveh rate and it is incredibly low, we have been through. 0k. sallylind... ou, through. 0k. sallyl’indallr - you. 900i through. 0k. sallyl’indallr - you. ww through. 0k. sallyl’indallr - you, good get your i the7 7 7 7 the cut 7 the cut in7the econom toda . the latest employment data. the uk's unemployment rate has been ticking up over the past

hello you, michael. good morning. hello you, michael. good morninc. , ., ., good morning. first of all, toda 's good morning. first of all, today's - what - good morning. first of all, - today's - what - they today's numbers, what will they tell us? i today's numbers, what will they tell us? ~ ., ., tell us? i think we are going to continue _ tell us? i think we are going to continue to _ tell us? i think we are going to continue to see _ tell us? i think we are going to continue to see that - tell us? i think we are going to continue to see that tickl tell us? i think we are going i to continue to see that tick up in the unemployment rate, we are see wages start to are going to see wages start to drop down. market has been z.— this downward for the nine quarters. you can see last nine quarters. you can see that pace pick—up thatrpac—e pick—up since the came out in october. budget came out in october. manpowergroup uk will you -ee.e.es.%””7 you that so this year yl is that so this year yl is down > this year yl is down) �*also, ar yl is are in) �*also, ar yl is are not �*also, ar yl is are not moving ,ar workers are not moving jobs, either. and so we a 31% in the attrition rates. we drop in the attrition rates. we see in the job drop in the attrition rates. we see in thejob postings drop in the attrition rates. we see in the job postings the can see in the job postings the the pressure pressure, the downward pressure wages. unprecedented in wages. very unprecedented market for hiring is acting

if we are in but know 7 7 know7histor7ica7ll7y7 77 know7histor7ica7ll7y7that the rate is 7 777rate is still and we note that wages strong and we note that wages are somewhat elevated, as well. so what is your outlook? there are many happen 7 happen in 7 happen in the run—up to which is not far away, april, which is not far away, but post—april in of but also post—april in terms of the effect of the budget changes. the effect of the budget changes— the effect of the budget chanes. . ., , , , changes. we have seen employers act re changes. we have seen employers act pretty quickly _ changes. we have seen employers act pretty quickly after— changes. we have seen employers act pretty quickly after the - iiliisllll'lece -=e is really what 2 is really what puts 7 this is issltsfihstfiufs his on tisis is issiisfihstfiuts tiss on hiring at tisis is issiissslss�*ee�*s tiss on hiring at the end of brarkes on hiring at the end of �* and brarkes on hiring at the end of �*and into this year so last year and into this year so we will continue to see that we will continue to see pressure as we see some of wage pressure as we see some of the other changes take hold, and employers are also faced which is with pay legislation which is employment risk, increasing employment risk, reducing flexibility, all those

up reducing flexibility, all those up in the base, and end up in the cost base, and onceit end up in the cost base, and once it cost base, from it hits the testis-ex reducing hiring 7 777l7et7tin7g777 7 7 777l7e7t7tin7g p77e7o7ple 77 7letting people go. and letting people go. so you are saying — and letting people go. so you are saying the _ are saying the unemployment rate go up and up, that is yo7u7777777 a: if a: ”is ’ you are you7a7re7th7inking7? 7 7 in the uk. and on absolutely. in the uk. and on earnings. _ absolutely. in the uk. and on earnings. you _ earnings, you mention the wage pressure will increase, as as it would if the well, as it would if the unemployment rate is going up. is right. wages 7 7 is right. wages typically that is right. wages typically ——~—~~~e——~~~s~— a that is right. wages typically ~ ~ ~—~ a several month like, be several quarters, so could be several quarters, so we are starting to see that go down. we expect that to accelerate over the next couple of quarters. hiring, our expectation is hiring will moving again on the back gtart moving again on the back of the year. etartmovinc7c' .. .~ -.. ofthe ear. �* 7777 7 stull, 7 stull,thank 77777 7 stull,thankyou right. michael stull, thank you for �* predictions, we don't for your predictions, we don't have long to wait to get the numbers on unemployment and numbers on uk unemployment and get them we will update when we get them we will update you. meta, facebook�*s parent company, says it plans to build the world's longest undersea

cable, to bring and other regions with a 50,000km cable. meta, which also owns instagram and whatsapp, demand as it warned that as a result of lower prices for commodities. to criticism of his apparent endorsement of an obscure mr milei shared a link to the libra coin on social acted in good faith.

it could be a hoax. still to come...

according to xai, it represents a major step forward, our business reporter nick marsh is here.

tell nick marsh is here. us more about grok elon tell us more about grok three. elon musk hasjust tell us more about grok three. elon musk has just finished a elon musk has just “shed a stream on elon musk has just “shed a stream on x with a few of live stream on x with a few of his unveiling the his engineers unveiling the latest version of this chat they have been developing over the 7 over the last 7 over the last year 7 over the last year or 7 over the last year or so, 7 over the last year or so, it 7 it over the last year or so, it is powered by a supercomputer that took just is powered by a supercomputer that tookjust eight is powered by a supercomputer that took just eight to that tookjust eight months to build and is that it 7 that it ten times 7 77 777po7w7erfu7l7 77 77 77 ”scion in. 7 77 777powerfu7ltha7n7its7777 more powerful than its predecessor in terms of getting, we a more gettingg'shsll we ss'yi s more gauge on gettingg'shsll we sstr s more gauge onjust how objective gauge on just how ... e . . . . e ..e. . .-.. objective gauge onjust how .- ----- .. --. .... is. it is quite good it is. it is quite early to say. we do know that versions of grok have previous versions of grok have really set the not really set the world alight and it is obviously facing and it is obviously fating' " ' ' " " stiff competition and it is obviously fating' " ' ' " " the stiff competition and it is obviously fating' " ' ' " " the likes competition and it is obviously fating' " ' ' " " the likes cl chatgpt, even from the likes of chatgpt, even deep the new chinese from the likes of chatgpt, even deep that the new chinese from the likes of chatgpt, even deep that was new chinese from the likes of chatgpt, even deep that was getting lese from the likes of chatgpt, even deep that was getting lots of re7ce ntly7.7 re7cently7.7 let's people excited recently. let's not forget that elon has people excited recently. let's not f in et that elon has people excited recently. let's not f in the 1at elon has people excited recently. let's not f in the ai elon has people excited recently. let's not f in the ai game has people excited recently. let's not f in the ai game for has -iill time. in 2015 he was

77 77of7the77co—7founders77 7 77 77 77of7the7co—founders77of77 77 of the co—founders of open one of the co—founders of open ai, of he ai, the makers of chatgpt. he left that company a few years we re were some kind of out. elon says it falling out. elon musk says it is because the company was moving from moving away from its professed not—for—profit ideals. since then elon has filed lots then elon musk has filed lots of lawsuits against he of lawsuits against 0penai. he has tried to actually buy 0penai recently for nearly $100 with a few other 0penai recently for nearly $100 so, ith a few other 0penai recently for nearly $100 so, yeah, tw other 0penai recently for nearly $100 so, yeah, the ther investors. so, yeah, the is real, the sums competition is realrthe sums are and this of money are huge, and this latest version of grok i suppose is the latest in l in this in this race 7] gathering speed. we7will keep a close 77777t7he p7lot 7 7 7 7777t7he p7lot thickens. 7 7 7777t7he p7lot thickens. another the 7 the market. nick player in the market. nick marsh there. to luxury air travel now, where "younger, larger

ritika gupta. this next generation of 40—something men and women up over time. and lastly, they're going faraway places. so very, very capable. so it's nine passengers, a very big baggage compartment. and if we do get a slowdown, what effect do you think this

then i think people might rearrange maybe the frequency so over the years, the engines have become lighter and more fuel—efficient, and more powerful. which is the largest event that drives private jet flying? i would probably say i would probably say the masters, just because it's the masters, just because it's essentially almost a week, essentially almost a week, as opposed to just one day. as opposed to just one day. so the traffic in augusta during masters week is really unprecedented. we're hearing a lot about pilot and aircraft maintenance technicians shortage. technicians shortage. how are you navigating that, and what steps are you taking to ensure that you have enough staffing? we hired almost 400 we'll do almost pilots last year. we'll do almost the same this year. the same this year. we're committed to having the highest—paid pilots in private aviation.

what we wanted to do is attract not only competent pilots, but also, ones that wanted a career and really would embrace the culture at flexjet. and since we've deployed these strategies, we've skyrocketed. your thoughts on the tariffs that president donald trump wants to impose, and the impact that could have

wants to impose, and the impact that could hav ceo of. —— confident, the ceo of. —— ceo flexjet. from jets to racing cars and the new formula one season last year, women made up 40% of f1 fanatics. it's perhaps no surprise that luxury brands want a piece of the action. louis vuitton for instance has signed a ten—year partnership with the sport. i'm joined now by natasha bird, founder of the consultancy tough crowd, which focuses on how the automotive sector can better cater to female audiences. this reallyinteresting. this really interesting. do you think they are a little bit actually, the luxury slow, actually, the luxury brands, to get on here? ithink7 i think one of the no. i think one of the things we �*about these giant no. i think one of the things we �*about is ese giant no. i think one of the things we �*about is thatjiant no. i think one of the things we �* about is that they conglomerates is that they, . do anything unless they

don't do anything unless they know can a know they can guarantee a return on investment and return oninvestm’ent and they until that perfect waited until that perfect some of 1674 00:23:06,43