Business update - US interest rates staying put

0:00It's time to talk business now, thanks to our partners, Forsyth Bar. Overnight, US Federal Reserve Chair Jerome Powell has quelled any speculation of moves to lift interest rates in the US. He's got a Garth Bray host of Hewarden, our business Garth, good morning. Good morning, all right. Good to see you too. So what's he had to say about inflation? Well, it looked basically said it's well anchored at the moment. The expectations are more importantly than the stats that they're getting. And that suggests that they are still able to look through those oil shocks. And that's had an important impact on our his bond markets, which we're getting a little skittish and pricing in some increases, I think now they're only pricing about three basis points with the lift this year. So broadly, US markets stabilise in there a little bit. Seeing a bit of positivity, we saw that reflected in the price of gold lifting slightly, as you know, the risk came off a wee bit. And I think just probably that'll come across as one of the more impactful presentations anyone's made from chatting to a bunch of students at Harvard, because the thing was televised to the whole world. What's this BD report this morning on businesses?

1:00And is this kind of how we deal with future shocks? Well, this is interesting, right? So this is, you know, obviously, you want to sort of look at where the energy's coming from. This is a big deal, right? So this is the driving sustainable growth, which, you know, the climate leaders coalesce and you think, oh, who are they? Well, actually about 45% of our GDP, 150 businesses. Chair is Malcolm Johns from Genesis, so I know you've heard in here talking. They're basically saying, look, if we can fix the ETS, actually get governments to hold to their climate targets rather than changing and what she was she all over the place. They want to go after a couple of big things like process heat, this sort of the heat that's required to manufacture stuff. They want to shift as much of that to renewables or biofuels. And they're saying things like the last government did where they were giving fun terror and steel plant and so on. Quite large subsidies to sort of set more ambitious targets for decarbonising. Actually, could pay off there, saying it could be worth, it could lift our GDP by 22 billion by 2035. And it could be 33 billion a year by 2050.

2:03So there are real, tangible economic benefits from actually pushing. And they're saying, I guess now is a great time to be thinking about this because we're seeing how, what sort of wreckage was Shane Jones saying, how the market's been molested by all prices basically and by what's going on in the strait of all moves. And just basically saying, get together, try and work out to electrify more of the rail and transport system. But take some big bets and stick to it for 10 to 25 years rather than just kind of chilly shower, wash backwards and forwards every couple of years. So I mean, let's see how it lands. It feels like it's a timely kind of thing to be saying. True. Garth, thank you very much for the update. Always appreciate it. Garth Bray, host of Heald Down Business. We talk business every day, thanks to our partners for Cypher.