Global stocks are in the red as investors worry about overvaluations.
It's World Business Express from the BBC World Service.
I'm Leanna Byrne.
We tell you three important things you need to know from the Google boss interview.
And the UK could be banning ticket reselling for profit.
Yes, Wall Street opened lower and global stocks have been in the red all day, as worries over AI valuations, the US economy and central bank rates has hit sentiment.
Fiona Sincotta is Senior Market Analyst at Citi Index.
Fiona, who are the biggest losers today?
Yes, so as you point out, S&P 500, it's down around 1%.
Its fourth day of declines at its lowest level since October the 17th.
Tech stocks, particularly those chip stocks related to AI are, are falling for the likes of AMD, Micron Technology.
And this is happening on sort of bubble worries and ahead of Nvidia's earnings tomorrow.
Yeah, we're all waiting for that tomorrow, aren't we really?
Yes, completely.
I mean, this is sort of like the litmus test, if you like, for the AI trade.
And it could either confirm that things are actually looking good, supporting potentially a recovery.
But the markets are going to be scrutinizing every number and any weakness there could set chip stocks and AI trade lower.
It's not just stocks, though.
It's also Bitcoin down at a seven-month low.
Yes, Bitcoin's dropped sharply.
It's trading at around 90,000.
Sorry, 90,000.
You're down around 25% from its record high just over a month ago.
Now it's falling as sort of risk.
Sentiment deteriorates on falling expectations of a December rate cut.
And hawkish Fed comments have meant that the market's only pricing in a 40 chance of a rate cut next month.
And Bitcoin tends to perform better in a lower rate environment.
We'll be following that.
Fiona Sincotta, Senior Markets Analyst at Citi Index.
Thank you so much for joining us.
And let's talk about electric cars because, despite trade wars, affordability and availability, global sales are on track to surpass 20 million in 2025.
That accounts for over a quarter of cars sold worldwide.
This is according to a report by the International Energy Agency, the IEA.
Timur Gul, Chief Energy Technology Officer for the IEA and one of the authors of the report, spoke to me earlier.
I think the numbers tell a very clear story.
Last year, in 2024, Pure electric cars and plug-in hybrids taken together accounted for more than one in five cars sold at a global level.
And this year the expectation is roughly for one in four cars being sold being pure electric or a plug-in hybrid.
So there is important growth happening, but obviously there are differences throughout the year.
There are differences in different countries.
There are differences in technology observations.
Another interesting point in your report was China now accounts for 40 of global car manufacturing, 70 of all EVs sold worldwide.
But when you think of world-class carmakers you usually think of Europe and maybe the US.
Yeah, so you're seeing three important shifts happening all at the same time.
One is in the geography of production of cars, where car production in China more than doubled over the last one and a half decades.
And China overtook the European Union as the largest exporter of cars just last year.
The second shift is in the geography of sales.
China and other emerging and developing economies had share of 20 of total car sales at the beginning of the century, in the year 2000 and now this is more than 50.
And then there's this change in technology, with electric cars now making up for one in five cars being sold worldwide.
Emma Seymour-Gould, Chief Energy Technology Officer for the IEA.
Problems that have hit the internet infrastructure firm Cloudflare have resulted in a number of websites around the world being affected, including the social media platform X.
A number of other websites were also impacted.
Cloudflare says it was aware of the problem and was investigating.
Now, there's been a lot of chat about AI bubbles lately.
It's certainly been rattling global markets.
Well, in an exclusive interview, the boss of Google, Sundar Pichai, says if the bubble were to burst, every company would be hit.
Our news editor, Justin Bones, is here to look at three things we've learned from the interview.
Hello, Justin.
Hi, Leanna.
Right, let's start off with this AI bubble.
What he said about the valuation of tech companies right now.
I look at the actual progress we are making in terms of the model capabilities.
And the progress is palpably exciting.
And people are using this.
And we are deploying it in our products.
Consumers are excited about using it.
We are giving it to companies.
They are using it to make their companies better.
So you see real demand.
And we are constrained in our ability to serve that demand.
Given the potential of this technology, the excitement is very rational.
When we go through these investment cycles, there are moments we overshoot collectively as an industry.
We can look back at the internet right now.
There was clearly a lot of excess investment, but none of us would question whether the internet was profound or did it drive a lot of impact.
It's fundamentally changed how we work digitally.
I expect AI to be the same.
Now, Justin, he's not the first to warn of this recently, is he?
He's not, Liana.
We heard from Jamie Dimon, the boss of JP Morgan, the world's biggest bank, tell the BBC a few weeks ago that perhaps the market is overvalued and there could be a correction.
Now Sundar Pichai is comparing there to the dot-com boom, when there was a rush to invest in internet companies, which then blew up almost overnight and a lot of those companies suddenly became worth a lot less.
But what he's saying is there is a lot of value to AI that perhaps we hadn't realised its value yet.
But Mr Pichai said the industry can't overshoot an investment cycles like this, so that That's lesson one.
But lesson two here is that AI is still nowhere near reaching its potential, and we're yet to really see what it can do.
And finally, he spoke about AI taking jobs.
I would encourage the next generation to embrace the technology.
Learn to use it in the context of what you do.
And I think people will learn to adopt and adapt to AI will do better.
It doesn't matter whether you want to be a teacher or a doctor.
All those professions will be around, but the people who will do well in each of those professions are people who learn how to use these tools.
So, Justin, essentially he's saying AI isn't going anywhere and it's going to replace jobs.
Oh, he has absolutely no doubt about it.
He even said it could do his job.
But what he's saying is we need to incorporate it into our roles and make use of it.
How can it improve productivity?
Now, technology isn't a new thing.
Forever we've been creating things which make it easier to do our jobs or replace them.
But lesson three, unless you learn about them, then you could get left behind.
Well, Justin, what about my job?
Is my job safe?
Oh, hopefully for a little while.
What about your job?
Anyone can do that.
You know that.
Our news editor and my boss, Justin Bones.
Thank you very much.
For more on Sundar Pichai's interview.
You can download BBC World Service Business Daily for wherever you get your podcasts.
Now, have you ever been in a situation where you're desperately trying to get tickets to a gig?
It sells out.
And then, seconds later, they start popping up on resale sites for hundreds of dollars more than they first cost.
It is so annoying.
The UK could be joining a handful of other countries in banning reselling tickets for a profit.
Countries including France Norway, Australia and Ireland, have either a total ban or a maximum percentage.
So what do UK music fans think?
I booked my tickets about two months ago and you have to log into an app and the app produces the ticket, but you can only get in with a QR code and the QR code doesn't get released until the day before.
Literally, you don't have time to resell the ticket.
It's a shocker, to be honest.
I mean your ticket might start off at say, £50 and, as interest generates, you're talking earlier about the Oasis tickets going up to about £4000.
Radiohead tried to make sure that the tickets didn't end up on secondary sites and tried to put a lot of security protocols in place.
But
As a result, it's just made the whole process really hard work.
Listen.
When we have more time I'll tell you the story about when I tried to get the heiress tour tickets nightmare.
However, I do have radio head tickets.
All right, that's me.
With World Business Report, I'm Eliana Byrne.
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Thanks so much for listening.
