michelle fleury, bbc news in washington.er seat has started work on a $10 billion programme for electrified cars and infrastructure. the project got under way as the european union announced billions of dollars of subsidies for the green transition, going toe to toe with massive subsidies announced last year by president biden in the united states. on this week's talking business, ben thompson asked the boss of seat how big a part of their decision to invest more in spain was down to subsidies. i think it is playing a key role at the moment, and we have to make sure that europe, because basically a playing field, a battlefield in europe, that we maintain our competitiveness particularly against the us. so in our decision for the 10 billion in investment in spain, the spanish government played a key role. we had a unique moment in time, a unique opportunity with the european next generation funds that we could use to support us in making our decision, particularly for the new activity of the battery plant in valencia. that wa

let's get the latest from michelle fleury in new york. ow you are a veteran of the 2008 financial crisis. are there parallels with the collapse of this bank? michelle: people are drawing these parallels or referring to the global financial crisis, because that is the last time we saw a u.s. banking failure. this is america's 16th largest bank. in some ways, the situation is different. banks have become more diversified, so they aren't affected by the kinds we are seeing at this particular bank. that is where there is a difference between then and now, but it is a reminder that when you go from a period of rock-botm interest rates to a period when interest rates are climbing, it has unexpected consequences, or things can stress the financial system. it has changed the valuation of bonds, and this bank found itself in a situation where they had to sell them at a loss. when you are dealing with a niche bank like this one was, it specifically lends to those in the tech sector, you get this spread of panic much faster because you have one frien

michelle fleury, live at washington, dc, thanks very much.ome the latest major central bank to increase the cost of borrowing. it made the decision because inflation, the rate at which prices are going up, continues to be consistently high. the inflation problem is worse in the uk than other g7 countries. food and energy remain two of the biggest contributors. its main interest rate has gone up from 4% to a.25% which is the highest its been since the peak of the global finance crisis in late 2008. and it's a similar picture in other parts of the world withjordan, norway, the philippines, taiwan and switzerland also increasing the cost of borrowing today for similar reasons. and all of them are following the us federal reserve which increased rates by 0.25% on wednesday despite the turmoil in the banking sector there. more on our website and you can keep up more on our website and you can keep up with the latest business news live, seven days a week and 2a hours a day. more now on sri lanka as we were reporting earlier this week it secured a $

here's michelle fleury in washington. recently, silicon valley bank was a little—known lender in california, until it failed. credit suisse was one of the most well—known banks in europe until it was undone. both were brought down by panic running through the financial system. to ease fears, us treasury secretary told the banking conference the government was ready to help if needed. our intervention was necessary to protect the broader us banking system. and similar actions could be warranted if smaller institutions suffered deposit runs that posed the risk of contagion. now, all eyes are on how those inside here, america's central bank will react. their fight against inflation has become a lot more complicated. the majority of economists now expect the federal reserve to raise rates by a quarter point, to 4.75%. nobody is entirely sure what america's central bank will do next. that's because fighting inflation by raising interest rates and stabilising the financial sector are at odds, which makes what fed chairjerome po

michelle fleury is a new york for us.nce were needed and we still see that banking seller can tell you. there is a lot of nervousness.- is a lot of nervousness. timing of these comments... _ is a lot of nervousness. timing of these comments... president - is a lot of nervousness. timing of i these comments... president biden coming out speaking up before the start of financial trading day and also sold as actions taken by us regulators yesterday again before the start of the trading week in nature. all of this was designed to restore confidence and to sort of sure people, investors and show the us government is prepared to act as necessary. the problem you have is that while there isn't a sense that the bigger banks, the too big to fail banks that were sort of so prominent in the 2008 financial crisis in any danger at all because they are more diversified, a lot of concern still remains about small and medium—sized banks and you are saying that right now in the way that share prices of banks investors deem to be potential

let's go to our north america business correspdent michelle fleury, who joins us now. is the latest on the market full out? -- fallout? michelle: astonishing really to see the three major indexes pretty much flat. it has been a pretty choppy day, as you mentioned, first republic amongst the regionabank stocks that are getting hammered, despite the fact that we've seen the u.s. government move into try to shore up and restore confidence to the market. i think there are a couple of things going on here. one, you have to remember this not a bailout of the banks but a bailout of banking customers. when we are talking about the stock market, it is investors in some of these banks who are looking and going, well, how many of these banks are out there that we invest in that we could potentially lose money on, even if the governmdoes step into help customer accounts, we see this ron, if you like, on banking stocks. in terms of customers, they can the government over the weekend, that their deposits will be safe, although you are still seeing long lines outside some banks, i th

here's michelle fleury in washington.il recently, silicon valley bank was a little—known land in california, until it failed. credit suisse was one of the most well—known banks in europe until it was undone. both were brought down by panic running through the financial system. to ease fears, the us treasury secretary told a banking conference the government was ready to help if needed. fiur ready to help if needed. our intervention _ ready to help if needed. our intervention was _ ready to help if needed. oi" intervention was necessary to protect the broader us banking system. an similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion. runs that pose the risk of contagion-— runs that pose the risk of contauion. ., . , , ., ., contagion. now all eyes are on how those _ contagion. now all eyes are on how those inside _ contagion. now all eyes are on how those inside here, - how those inside here, america's central bank, will react. theirfight america's central bank, will

our correspondent, michelle fleury, has more.helle fleury, has more. the problems of us bar would hopes the problems of us banks would stay in the us haven't panned out, shares in switzerland is second largest bank credit suisse dropped 20% to record lows, should point out credit suisse is a bank which has been in turmoilfor years as one wall st analyst ported a slow—moving car crash will stop to new things have happened speaking investors, it has material we in its financial reporting and its top back ruled out lending it any more money, all of this is adding to concerns about the global banking system, in an attempt to stabilise the troubled lender the swiss central bank and swiss banking regulator said that credit suisse meet its capital and liquidity requirements, and crucially this was central—bank was ready to lend money necessary. us us authorities are also monitoring the situation, european central bank has called banks on its watch to exposure to the swiss lender, the ecb the first central—bank to face the interest rate

our north america business correspondent, michelle fleury, reports from new york.the hammock in the us banking sector means for the broader economy is to be seen but it's taking calculations about how america's fight against inflation maeve plouffe. economists at goldman sachs no longer expect the us federal reserve chair to raise interest rates at its meeting next week, saying policymakers won't want to undermine the efforts to restore financial stability by hiking rates just a few days later. the wall street investment bank had forecast a quarter point interest before this week. the argument for pausing, it is twofold. it would allow more time for financial stability to be restored, plus the event could very well exert downward pressure on prices if banks pull back on landing. we will get a clearer picture of inflation later this tuesday with the latest consumer price index reading. the federal hope the data is muted, otherwise theirjob of tackling inflation and ensuring financial stability while avoiding a recession will get that bit tougher. michelle fleury the

that�*s michelle fleury. again, more later on that story in our business coverage.d 10 miners who became trapped underground after a methane gas explosion. ii of their colleagues were killed in the blast. with oxygen running out, the sitaution�*s becoming increasingly desperate for loved ones waiting for news. italy�*s highest court�*s ordered the retrial of two americans who are serving time for the killing of an italian police officer in rome injuly 2019. the americans, who were travelling in italy, had been sentenced to life in prison for the killing, which followed a botched drug deal. a court in pakistan has ordered police to suspend an operation to arrest the opposition leader, imran khan, until thursday morning. it followed pitched battles between security forces and supporters of mr khan outside his residence in lahore. the confrontation began on tuesday when police tried to arrest the former prime minister for failing to appear in court over corruption charges. mr khan says the charges are politically motivated. early exit polls from elections to 12 provinc

michelle fleury at the federal reserve.in the uk the bank of england faces a similar dilemma — except inflation here is proving very sticky indeed — last month unexpectedly rising to 10.4%. market watchers are now assuming the uk central bank will raise rates again when it meets later today. let's discuss all of this with alex brazier — managing director, deputy head of the blackrock investment institute and formerly an executive director at the bank of england. good to have you on the programme. if we start with the fed to begin with, did they make the right move? i fed to begin with, did they make the right move? i think so, make the right move? i think so. yes- _ make the right move? i think so. yes- what _ make the right move? i think so, yes. what is _ make the right move? i think so, yes. what is striking - make the right move? i think. so, yes. what is striking about the move are two things. the first is the clear separation they are trying to establish here between the tools they are using to deal with the banking t

i'm michelle fleury in new york, and this is bbc world news america.a privacy, to the ukraine war and global diplomacy — we hearfrom the head of the house intel committee on the risks all around us. us presidentjoe biden heads north, to meet with canada's leader. the pair reached a deal on migration, and talked trade, the ukraine war, and hockey. a week of anger in france, over the president's plans to raise the retirement age. britain's king has cancelled a planned visit.

michelle fleury, for now, thank ou outcome. michelle fleury, for now, thank you very _ outcome. are going to go back to the committee and hear from what is happening from representative of california, whose questioning shou zi chew. i will get ou on the questioning shou zi chew. i will get you on the specific— questioning shou zi chew. i will get you on the specific records - questioning shou zi chew. i will get you on the specific records you're i you on the specific records you're talking about.— talking about. ok, i will wait for that. talking about. ok, i will wait for that- over— talking about. ok, i will wait for that. over the _ talking about. ok, i will wait for that. over the past _ talking about. ok, i will wait for that. over the past few - talking about. ok, i will wait for that. over the past few years, i that. over the past few years, alarming — that. over the past few years, alarming information brought to li-ht alarming information brought to light by— alarming information brought to light by whistle—blowers have shown that social _ light by whistle—blowers have

we're nowjoined from the big apple by our north america business correspondent, michelle fleury.ving his company in the big apple? what is driving his company in the bi a- -le? ., what is driving his company in the biaule? ., ., what is driving his company in the biuaule? ., ., , what is driving his company in the biaule? ., ., , ., , big apple? there are a couple faxes here. as big apple? there are a couple faxes here- as you — big apple? there are a couple faxes here- as you say. — big apple? there are a couple faxes here. as you say, the _ big apple? there are a couple faxes here. as you say, the brexit - big apple? there are a couple faxes here. as you say, the brexit factor l here. as you say, the brexit factor has put the fear into many investors at the time and you've seen that flow out of london as a result. but you have to look at what is making the big apple bigger. companies can get more listing here. in part, that has to do with the fact that you've got many deep pocketed americans who perhaps don't want to deal with currency fluctuations that they tend to focus on us

let's now cross to our business correspondent — michelle fleury — in new york.he hearing? what are we expecting from the hearin: ? ,, ., ., hearing? similar to the uk, we will hearing? similar to the uk, we will hear from some _ hearing? similar to the uk, we will hear from some of _ hearing? similar to the uk, we will hear from some of the _ hearing? similar to the uk, we will hear from some of the key - hearing? similar to the uk, we will. hear from some of the key regulators in the usa, so there will be representatives from the fdic, from the federal reserve, and also from the federal reserve, and also from the treasury department, the major agencies that have oversights of the bank. we have a preview of what you are likely to hear from the perspective of lawmakers and the chairman of the committee basically said, i understand why many americans are angry and even disgusted at how quickly the government mobilised when a bunch of elites in california were demanding it so that gives you a flavour of where some on the committee will be coming from. from the repu

let's speak now to our north america business correspondent michelle fleury who's in new york.ope, some doubted that the european central bank would raise its interest rate last week, but it did. any indication about whether or how these developments looking backwards as we said, the european central bank didn't flinch. they carried on with their planned and they demonstrated that they could still fight inflation and use other tools to try and address what we see in the banking system. looking at the federal reserve this week, there is increased pressure for it to do a bit less. if you raise interest rates until something breaks, giving the stress banking sector, i think that is going to be weighing heavily on the federal reserve. perhaps if we'd been speaking two weeks ago, we might have been saying that we will see a 50 basis point increase at its meeting on wednesday, now the expectation is maybe it will be a quarter percentage point hike or may be nothing at all, given what is going on and the fact that we've seen the federal reserve deploying some of its toolkit over the w

let's bring in our north america business correspondent michelle fleury.das have buckled under some sort of pressure. any idea why? this is a logo we are familiar with _ any idea why? this is a logo we are familiar with and _ any idea why? this is a logo we are familiar with and it _ any idea why? this is a logo we are familiar with and it has _ any idea why? this is a logo we are familiar with and it has enjoyed - any idea why? this is a logo we are familiar with and it has enjoyed a i familiar with and it has enjoyed a resurgence within trainers and now here we are a couple of days after they opposed a new trademark application from black lives matter, they have reversed course on their objection, the company did not give a reason, but apparently a source told reuters that adidas were worried there objection may be misconstrued. clearly management at the company may be perhaps feeling a bit concerned at how consumers might view the brand. we can show you the diagonal logo and the yellow horizontal lines, you can decide how closely they match each other f

here's michelle fleury in new york. for a gift in the cpi figures that they could ease off raising rates, it has not really been delivered? ida. off raising rates, it has not really been delivered?— off raising rates, it has not really been delivered? no, and building on what our been delivered? no, and building on what your guest _ been delivered? no, and building on what your guest just _ been delivered? no, and building on what your guest just say, _ been delivered? no, and building on what your guest just say, this - been delivered? no, and building on what your guest just say, this is - been delivered? no, and building on what your guest just say, this is a i what your guestjust say, this is a complex picture for the federal reserve and it now has to factor in just how to tackle inflation without tipping the us into recession but it also has to take into account financial stability. these numbers show that inflation remains a bigger problem as ever, maybe not as bad as it was previously, but still substantially hig

michelle fleury is on fed watch for us in washington. the us federal reserve said the us banking system remains "sound and resilient", even as it warned that the sector's troubles could drag down economic growth. america's central bank raised its federal funds rate — which affects many consumer and business loans — to a range of 4.75% and 5%. fed chairjay powell said policymakers did consider a pause in their interest—rate hiking campaign, in light of the banking turmoil, but the consensus for an increase was strong. before the recent events, we were clearly on track to continue as of a couple of weeks ago, it looked like we'd need to raise rates over the course of the year more than we'd expected at the time of the scp in december, at the time of the december meeting. we are committed to restoring price stability, and all of the evidence says that the public has confidence that we will do so. his comments underscore the dilemma facing policymakers — how to fight inflation, while simultaneously restoring financial stability. still, the f

here's michelle fleury with a look at how investors in new york responded., there was guarded optimism on wall street following the shotgun marriage between ubs and credit grace that was hastily arranged by swiss authorities over the weekend. the dowjones industrial the dow jones industrial average jumped the dowjones industrial averagejumped more than the dowjones industrial average jumped more than 380 points, the snp 500 finished near nine tenths of a percentage point higher, while the tech heavy nasdaq index eked out a smaller game to finish up four tenths of a percent. bank stocks recoup some of their losses from last week's, the major exception was first republic bank who tumbled 47% on top of staggering falls last week. this is a report emerged that the ceo ofjp morgan chase was leading a new effort to try to stabilise the bank. the turmoil in the same —— banking over the last two weeks these are central bank in a pickle as it gets ready to make as late interest rate decision on wednesday. investors are wondering if it will prioritise stubbornly high

our correspondent, michelle fleury, has more.hat the problems of us banks would stay in the us have not panned out. shares in switzerland second—largest bank credit suisse dropped to record lows. we should point out that credit suisse is a bank that has been terminal for years. credit suisse is a bank that has been terminalfor years. as one analyst put it it has been a slow moving car crash. two new things have happened to spook investors. the bank said there was material weakness in its financial reporting and its top supporter ruled out lending it any more money. all this adds to concerns about the global banking system. in an attempt to stabilise the troubled lender, the swiss central bank and swiss banking regulator said that credit suisse met its capital and liquidity requirements and, crucially, that the swiss central bank was ready to lend it money if necessary. us authorities say they are also monitoring the situation. meanwhile the european central bank has quizzed banks on its wash about their exposure to these swiss le

well our correspondent michelle fleury has been watching the day's proceedings, and shejoins me now from steering, i made calls for tiktok to be banned, it was downhill all the way. he did not appear to have a friend in the house, did he? tt appear to have a friend in the house, did he?— appear to have a friend in the house, did he? it was certainly a very tough _ house, did he? it was certainly a very tough day — house, did he? it was certainly a very tough day for _ house, did he? it was certainly a very tough day for the _ house, did he? it was certainly a very tough day for the ceo - house, did he? it was certainly a very tough day for the ceo of. very tough day for the ceo of tiktok, shou zi chew. as you point out, he was bombarded from the moment he began speaking. at times he was unable to finish and give a full response will stop he was interrupted so frequently for lawmakers demanding he give a yes or no answers. at the heart of their concern is the chinese ownership of this app. there are also concerns about how data is handled and stored in the mental health of teenagers. all

well, our north america business correspondent michelle fleury has been following the story in washingtonand sent this report. it was never going to be easy but from _ it was never going to be easy but from the moment the committee chairman opened the hearing. — committee chairman opened the hearing, calling for tiktok to be banned in the united states, there _ be banned in the united states, there was— be banned in the united states, there was no let up. the tiktok ceo _ there was no let up. the tiktok ceo was — there was no let up. the tiktok ceo was bombarded by lawmakers worried _ ceo was bombarded by lawmakers worried that the chinese ownership of the app makes it unchosen— ownership of the app makes it unchosen with the and that it is harmful to american teenagers. —— makes it untrustworthy. politicians of all stripes stand —— slammed tiktok — all stripes stand -- slammed tiktok. , ., ., tiktok. they are engaged in psychological— tiktok. they are engaged in psychological warfare - tiktok. they are engaged in i psychological warfare through tiktok to deliberately influence us childre

boss this month, was called to appear before congress. 0ur north america business correspondent michelle fleurys senate hearing on wednesday. the billionaire came into sharp criticism from senator bernie sanders. over the ast senator bernie sanders. over the past 18 — senator bernie sanders. over the past 18 months, - senator bernie sanders. or the past 18 months, starbucks has waged most aggressive and illegal unionbusting campaign in the modern history of our country. in in the modern history of our count . , , ., ., country. in response, howard schulz affirmed _ country. in response, howard schulz affirmed the _ country. in response, howard schulz affirmed the right - country. in response, howard schulz affirmed the right of. schulz affirmed the right of workers to choose whether to unionise and defended the company's actions. mr chairman, let me say. _ company's actions. mr chairman, let me say, under _ company's actions. mr chairman, let me say, under oath, - company's actions. mr chairman, let me say, under oath, these i let me say, under oath, these are allegations and starbucks is not b

here's our north america business correspondent michelle fleury.a, all part of the ceo's year of efficiency. since the middle of 2022, the parent company has been struggling to cut costs. it spent too much too quickly on its meta— verse ambitions, all while the end of the pandemic combined with rising inflation and that revenue was actually falling. in november it said it was cutting its workforce by 13%. the first mass layoffs in its 18 year history. the move was to help it whether the downturn. this latest round of cuts will will begin wednesdays to prepare for the future. they memo to staff, the ceo warned new economic reality would continue for many years. he blamed higher interest rates, geopolitical instability and increased regulation for tougher times ahead. while that may be true, acro one and other tech companies have been hiring aggressively for at least two years, and in recent months they began to let some of those workers go. they are paying the price for having effectively growing too fast. in the case of meta, they are shifting thei

our business correspondent michelle fleury is in new york for us. fears are getting very real. we are talking about not just regional banks in america but a global player, credit suisse, switzerland's second largest lender which saw its share price plunged to a record low after its top back are ruled out lending it any more money. to try and calm nerves the swiss central bank, banking regulator, issued a joint statement saying they were ready to provide liquidity if needed. what we have seen is that rising interest rates are beginning to expose cracks in the financial system. we should remind viewers at home that in the uk if you have deposits of up to £85,000 those are protected by the financial services compensation fund. so despite all of these worries in the markets about banks, most people are safe. still, what this does is show that everyone's faith in the financial system has been jolted everyone's faith in the financial system has beenjolted by the everyone's faith in the financial system has been jolted by the events of the last few days.—

michelle fleury is in york. have president biden�*s comments reassure the markets?d spoke before us financial markets began their trading day, and the actions of regulators over the weekend again were timed before the start of the trading week in asia. all of this was to try and bring some stability to financial markets, to reassure them that the banking sector was safe. and we have seen, i'm just looking right now, the markets have been pretty mixed at the moment. so to some degree there has been a bit of confidence restored. certainly in the case of silicon valley bank, for example, they have guaranteed all deposits, even the uninsured deposits, even the uninsured deposits will be covered, another was most of the people who have money in excess of $250,000 in their account, will still be able to access it. but the broader problem you have right now is that many people are sort of scouring the banking sector wondering who else is vulnerable. it has affected a bank called first republic which has seen its share price tank more than 60% so there are still plenty ofji

well, joining me now is our new york business reporter michelle fleury. given switzerland's reputationck was it, the news that ubs is coming to the rescue of credit suisse? i think ou the rescue of credit suisse? i think you need to _ the rescue of credit suisse? i think you need to go _ the rescue of credit suisse? i think you need to go back— the rescue of credit suisse? i think you need to go back to _ the rescue of credit suisse? i think you need to go back to when - the rescue of credit suisse? i think you need to go back to when the i you need to go back to when the micro where this started, when silicon valley bank in america began to fail. that was considered a regional american bank, but it wasn't to fail — a term that really came to prominence in the 2008 financial crisis. that power changed with credit suisse, when it came under pressure, the calculations across the board, from regulators and central banks to investors, there was a sense that, no, this is a bank that is too important systemically, too important and vital — is considered one of the 30 most important instituti

our business correspondent michelle fleury has been explaining how it happened.at is people are referring to the global crisis because that is actually people are referring to the global crisis because that is actually the last time we actually saw a us banking failure, at least anywhere in this kind of scale. that was washington neutral. this is america 16 largest bank. so in some ways, the situation is somewhat different. regulations have changed and banks have become more diversified and so they aren't affected by the kind of problems that we are seeing at this specific bank. so that's where there is a difference between then and now. but it is a reminder that when you go from a period of rock—bottom interest rates to a period when rates are climbing, and has these sort of unexpected consequences, or things can kind of stress the financial system and that's exactly what happened. it has changed the valuation of some of their bonds, which this bank found itself in a situation where they had to sell them at a loss. they then tried to raise money, and that trigge

our correspondent michelle fleury, has more.products that can kind of protect them against that. and what has happened is that as customers rushed to these banks to pull out their money, in some cases they are forced to raise more capital, so they sell some of these assets at a loss. now, in the case of the silicon valley bank, they were not very good at protecting themselves against such a scenario and that is why they ran into trouble, and investors subsequently have been looking around, casting their eye over the banking sector and going, "ok, well, who else has these problems with unrealised losses?" as they call it in the business. and attention has started to focus on credit suisse. what is interesting is, as you say, we have heard comments from the chair today coming out saying, "we have a strong capital base, we have strong regulations, we are in a good position," but the fact that you have these comments from its biggest backer saying that it won't be able to lend any more money, should it run into trouble, i think that

correspondent michelle fleury.eek or so is very alarming and investors are very easily spooked. if you go back to what your previous guess was saying about the market, it just guess was saying about the market, itjust depends on who you are. so if you are first a shareholder in first republic bank which is a regional american bank you might not be feeling the same way. there are still lingering concerns about the health and the future of that bank will stop there are reports that j. p. will stop there are reports that j.p. morgan is leading the way amongst sort of ache and torture of banks to try and come up with a solution to help first republic bank. so it underscores the fact we are not out of the woods yet. there is still fears about stability within the financial system. investors are still very skittish, and part because of what is happened at credit suites and that takeover ljy at credit suites and that takeover by ubs has played out. so we are not out of the woods, and i think people are going to be looking

let's talk to our correspondence in the united states, michelle fleury and other correspondence alsoany faced such an existential threat and that was always going to make this hearing so challenging for the company's ceo. he is going into it with the fact that legislators are actually united, for once, on the fact that they both want to see this company banned in the united states or at least severely curtailed. a lot of the in society ownership, which we heard the chair of the committee talking about, but also, as you heard from the ranking member on the democrat side, he was more concerned more generally about big technology. so they are united and he is going to face some tough questions today, notably in his prepared remarks, although he addressed many of the concerns that are out there, he did not talk about the spying of us journalists and i suspect that is something he is going to get hammered about again and again during the course of this hearing. 1 and again during the course of this hearinu. . ., and again during the course of this hearinu. _, . ,, ., and again during the

i'm michelle fleury in new york, and this is bbc world news america. zeroing in on security issues, in all theirforms. from tiktok and data privacy, to the ukraine war and global diplomacy — we hearfrom the head of the house intel committee on the risks all around us. us presidentjoe biden heads north, to meet with canada's leader. the pair reached a deal on migration, and talked trade, the ukraine war, and hockey. a week of anger in france, over the president's plans to raise the retirement age. britain's king has cancelled a planned visit. welcome to world news america in the uk, on pbs, and around the globe. we begin the programme with a bird's—eye view of security issues, both here in the us and around the world, and it's been a busy week. the presidents of russia and china put up a united front against the west. questions swirled over the origins of covid. the pentgaon says the us took "proportionate" action when carrying out air strikes on thursday against iran backed forces in syria. that's after a us contractor was killed when a drone hit a coa

let's go live to capitol hill in washington, with our business correspondent michelle fleury.t of scepticism from republicans and democrats. how hard a time did they give him? {line republicans and democrats. how hard a time did they give him?— a time did they give him? one thing that is in scarcity _ a time did they give him? one thing that is in scarcity here _ a time did they give him? one thing that is in scarcity here in _ that is in scarcity here in washington is unity but that was on display this evening to stop lawmakers from the republican party and democrat side both pummeling mr chiu throughout this hearing. so combative that she was unable to give a full response to some questions he was asked. you heard the points he was making during his prepared remarks. he often try to repeat that in response to some of the questions he was asked. perhaps not as strongly or given as much details as they lawmakers wanted to hear. they came with some pretty pointed questions and use it as an opportunity to try and promote legislation to address data privacy concerns. i think the

our north america business correspondent michelle fleury was watching the proceedings.eo was in the hot seat at a us senate hearing on wednesday. the billionaire came in for sharp criticism from bernie sanders. over the past 18 months starbucks has waged the most aggressive and illegal union—busting campaign in the modern history of our country. in response, howard schultz affirmed the rights of workers to unionise and defended the company's actions. mr chairman, let me say under oath, these are allegations that starbucks has not broken the law. mr schultz said starbucks had negotiated in good faith with employees seeking to unionise and obtain collected benefits. maggie carter testified otherwise. my partners, along with thousands of partners across the country- still do not have access to these - benefits are no do we have a company that is willing to sit - across the table with us and bargain forthem. officials of the federal agency that oversees unionisation efforts in america say the coffee chain did violate us labour law on more than a dozen occasions in response

our north america business correspondent michelle fleury was watching the proceedings starbucks�* former, for sharp criticism from bernie sanders. ,.,, [k for sharp criticism from bernie sanders. , [k ., , sanders. over the past 18 months starbucks has _ sanders. over the past 18 months starbucks has waged _ sanders. over the past 18 months starbucks has waged the - sanders. over the past 18 months starbucks has waged the most - starbucks has waged the most aggressive and illegal union—busting campaign in the modern history of our country. in campaign in the modern history of our country-— our country. in response, howard schultz affirmed _ our country. in response, howard schultz affirmed the _ our country. in response, howard schultz affirmed the rights - our country. in response, howard schultz affirmed the rights of - schultz affirmed the rights of workers to unionise and defended the company�*s actions. mr workers to unionise and defended the company's actions.— company's actions. mr chairman, let me say under— company's actions. mr chairman, let me say under oath, _ company's actio

. _ the bbc�*s michelle fleury is on capitol hill. app. all of this coalescing at a time where us—china relations are deteriorating and there are serious concerns about espionage, national security concerns that we keep hearing again and again. the point that shou zi chew was trying to make is that 150 million americans use the app, so if there is a ban, which would be hard to implement, that would presumably would be noticed by a lot of people. and tiktok is trying to make the point that people would not be too happy. caitlin chin is from the centre for strategic and international studies, a bipartisan think tank. i think, first of all the hearings provide opportunities to get ceos on the record talking about how their companies operate. members of congress should have given the tiktok chief and opportunities of the answer and we heard over and over them yelling for him to answer the question. many answers surrounded complicated data privacy practices aren't yes or no questions. they require thoughtful responses from ceo and lawmaker

here's michelle fleury in washington.ere brought down by panic running through the financial system. to ease fears, us treasury secretary told a banking conference the government was ready to help if needed. our intervention was necessary to protect the broader us banking system. and similar actions could be warranted if smaller institutions suffered deposit runs that pose the risk of contagion. now all eyes are on how those inside here, america's central bank, will react. their fight against inflation has become a lot more complicated. the majority of economists now expect the federal reserve to raise rates by a quarter point to 4.75%. nobody is entirely sure what america's central bank will do next. that's because fighting inflation by raising interest rates and stabilising the financial sector are at odds, which makes what fed chairjerome powell says after the decision even more important than usual. the fed announced that changed today, don't know what they will announce packages today. the uk position is announced to

first, to the us and our business correspondent in washington, michelle fleury.ral reserve said the us banking system remains sound and resilient, even as it warned that the sector's troubles could drag down economic growth. america's central bank raised its federal funds rate, which affects many consumer and business loans, to a range 4.5 and 5%. jay powell said policymakers did consider a pause in the interest rate hiking campaign, in light of the banking turmoil, but the consensus for an increase was stronger. before the recent events, we were clearly _ before the recent events, we were clearly on — before the recent events, we were clearly on track to continue with ongoing — clearly on track to continue with ongoing rate hikes. in fact, as of a couple _ ongoing rate hikes. in fact, as of a couple of— ongoing rate hikes. in fact, as of a couple of weeks ago, it looks like we would — couple of weeks ago, it looks like we would need to raise rates over the course — we would need to raise rates over the course of the year more than we had expected at the time in

our north america business correspondent, michelle fleury, has the latest on the market fallout.his is not a bailout of the banks but of a bailouts of banking customers. when we talk about the stock market, it is investors in some of these banks who were looking and going, well, how many of these banks are out there that we invest in that we could potentially lose money on? even if the government steps into guarantee customers' accounts it won't guarantee we won't lose money. that's why you see this continue to run on banking stocks. in terms of customers, they can take heart even the actions of the government over the weekend that there deposits will be safe, although you are still seeing long lines outside some banks because that nervousness that has rippled through takes a bit of time to die down. that's what's happening right now. let's take a look at why silicon valley bank collapsed. until last friday it was the 16th largest bank in the us, worth more than 200 billion dollars. the bank was heavily invested in us government bonds, which lost significant value due to rising i

let's speak now to our north america business correspondent michelle fleury who's in new york.have been talk that the federal reserve may raise interest rates. now the question is whether they will hit the pause button altogether and that's because america's central bank currently has two challenges on its hands. it's time to fight inflation but now it's got the other issue of stability in the financial sector, restoring some degree of calm. we have seen the actions it's taken over the last few days, whether it is increasing the availability of us dollars to other central banks across the world or last week, when it set up this emergency lending funds to banks. all of these actions have been set “p all of these actions have been set up now the question is why monetary policy also reflect some of this more measures it has been taken or will it stick to their guns and focus on fighting inflation? sri lanka's foreign minister has told the bbc expects the island nation to return to economic growth by next year. the international monetary fund decides today on a $2.9 billion dollar

for more on what's brewing here, let's bring in our north america business correspondent, michelle fleury out in support of the starbucks ceo, former ceo, i should say, howard schultz, and he is under fire, the allegations made against his former company is that starbucks was engaged in anti—union behaviour and that it fired pro union barristers unfairly and it spied on workers and these are all allegations that howard schultz categorically denied. he said starbucks unequivocally has not broken the law, something he repeated again and again, but that did not stop the likes of bernie sanders saying that starbucks had wades the most aggressive and illegal union—busting campaign. —— had waged. howard schultz said he had waged. howard schultz said he had billions of dollars which he earned and no one gave it to him so it became a strained balancing act between these conversations about unions and inequality and capitalism in america today. {line unions and inequality and capitalism in america today.— let's turn to another potentially high—profile showdown that's been called off. two days ago,

here's michelle fleury in new york that year of efficiency is an overarching theme we have heard fromruiting department and then the tech staff in april and then in may it will be more management roles. as for international staff, they are operating on a different timeline, and all of this is a reflection of the collapse in the revenue of the company last year which mark zuckerberg in a letter to employees described as a humbling experience and he went on to say that potentially the new economic reality could continue for many years. what we saw was that they expanded rapidly during the pandemic and having grown too fast, they are trying to right size to business. what many people will find astonishing is that 11,000 announced earlier and a 10,000 hour, 5000 roles will be not filled, so astonishing a firm can lay off 26000 and still operate, and it shows you how big meta has become and also how many people they recruited during the boom years of the pandemic when people were using these websites or and now reality has hit? —— websites more. and now reality has hit? -- websites more. .

let's speak to michelle fleury selling by new york and we had present biden they're saying this is abouto signature bank and this is significant because up until now previously the saic would only guarantee of the $50,000 despite $250,000. in the case of the silicon valley bank 90% were uninsured and another was recovered by that so by extending this they are really helping people and in fact ijust came back from talking to one company executive who discovered that most of his cash was tied up in the bank. they try to transfer it out on thursday but discovered on friday that the wire transfer had not gone through and so were facing salter is a real threat to the existence of their business. take a listen. this man runs the police start here in new york and he said his business to customers for help to get out of the situation. we looked at _ to get out of the situation. we looked at what we have we knew we have a _ looked at what we have we knew we have a lot _ looked at what we have we knew we have a lot of people who love the company, — have a lot of people who love the company, who lo

michelle fleury is in new york for us.iss central bank to issue some sort of statement reassuring investors about the health of this bank. it gives you a sense of how rapidly things can move. the stocks rebound in yesterday and today, yet again, we are talking about the bank stocks under pressure. irate again, we are talking about the bank stocks under pressure.— again, we are talking about the bank stocks under pressure. we have done this for far too _ stocks under pressure. we have done this for far too long _ stocks under pressure. we have done this for far too long and _ stocks under pressure. we have done this for far too long and we _ this for far too long and we remember the 2008 financial crisis which was brought about by similar reasons but this time it is different because this is about interest rates going up which means the banks are finding it hard to make the numbers add up. explain the correlation. ids, make the numbers add up. explain the correlation. : 9, make the numbers add up. explain the correlation. :