Hello and welcome to World Business Report from the BBC World Service.
I'm Roger Hearing and on this edition, Microsoft announces a major leap forward in the race towards quantum computing.
New York could lose its congestion charge after just a month of operation, after the Trump administration withdraws its backing.
Nigeria sues the crypto exchange Binance for over 80 billion dollars.
We'll have a look at how Germany's faltering economy is affecting voters' views ahead of this week's election and as authorities in the Philippines put a bounty on mosquitoes' heads to try to eradicate a lethal disease, we asked the experts whether money will do the trick.
Given the vast numbers of mosquitoes, I seriously doubt if bounty system is going to make a dent in the mosquito population.
But first, quantum is one of those words that seem to be applied to anything that's new and dramatic.
Think quantum leap.
But what's just been announced by Microsoft does genuinely seem to be a leap in the field of quantum computing.
It's a technology that promises vastly superior processing speeds compared to today's computers.
All the big names in tech have been pushing advances in this area, but Microsoft says its Majorana 1 chip could bring practical quantum computing within reach in years rather than decades.
Well, Dr. Chetan Nayak from the Microsoft quantum hardware team behind this new chip has been explaining it.
So we've really hit a Goldilocks scale where they're not too small, that you can't do anything with them, but they're not large, that you end up needing a warehouse to make a useful quantum computer.
Dr. Chetan Nayak, so what is quantum computing?
How would it change our lives?
And is this a genuine breakthrough?
Joining me now is Scott Aronson, professor of computer science, who heads the Quantum Information Center at the University of Texas at Austin.
Scott, thanks so much for being with us here on World Business Report.
I mean, a very basic question to start with.
What is quantum computing?
So quantum computing means harnessing the rules of quantum mechanics that we've actually known about for 100 years to try to solve certain specific problems much faster than we know how to solve them using current computers.
It's not easy to explain that in one sentence, but quantum mechanics gives us a different set of rules for calculating the probability that something will happen, And in particular, it allows an effect called interference, where the different contributions to the probability of seeing something can cancel
each other out. So with quantum computing, the goal is always to choreograph things so that for each wrong answer, the contributions to it are destructively interfering, canceling each other out, whereas the contributions to the right answer are adding up, interfering constructively.
Well, I won't pretend that I completely understand what you're saying, but I think I've got the sense of it.
But what in practical terms would it do if we were able to use quantum computing?
So the biggest applications that we know about for a quantum computer, number one, simulating quantum physics and chemistry themselves.
That was the original application that physicists like Richard Feynman and David Deutsch had in mind when they proposed the idea of a quantum computer more than 40 years ago.
And that's still the economically most important thing we know, because that could help anyone who is designing new materials, new drugs, you know, photovoltaics, batteries.
These all involve many body quantum mechanics problems, where the number of parameters that you need to keep track of scales exponentially with the number of particles that you're trying to model.
And so this is, in some sense, what a quantum computer is designed for.
It's a specialized class of applications.
You know, it's not, you know, what most people are using their computers for.
It's not checking your email or, you know, playing Candy Crush or, you know, whatever.
But it's, you know, these things can be important.
Now, the other big application of quantum computers, the one that put them on the map for most of the world, was that it was discovered in the 1990s that quantum computers could break most of the encryption that currently protects the Internet.
So that includes whenever you use your web browser to order things online, your credit card number is protected by these certain cryptographic codes that depend on the belief that certain problems are very hard, such as factoring large numbers, finding the prime factors of huge numbers, and some other
problems in number theory that turn out to be perfectly suited to a quantum computer.
We know how to arrange these interference patterns to solve those problems quickly.
Now, within the last 15 years, there's been a tremendous amount of hype about quantum computers and hundreds of startup companies being formed, often telling investors, telling the public that quantum computers are going to speed up everything.
You know, so machine learning and AI and optimization and finance and vehicle routing.
I think it's very important for your listeners to understand that, you know, I think like at least 90 % of that is hype.
Well, if that's hype, Scott, I mean, just on this point, Majorana One, this new Microsoft product, is it the breakthrough they say it is?
Well, I think it is a very, you know, a really, really nice scientific breakthrough in building hardware.
I mean, people have been trying for decades to build what we call a topological qubit, which is a quantum bit, you know, a basic building block of a quantum computer, a qubit whose quantum state would be sort of inherently protected for topological reasons.
So this is something people have wanted for a long time.
Microsoft appears to have finally demonstrated that.
And they've been pursuing it for a while.
They had a claim to build one of the building blocks called a Majorana Zero Mode in 2018 that had to be retracted.
That was wrong. okay but you know this seems like a more solid claim you know i hope that it holds up it's important to understand that even assuming they've succeeded we're talking about one topological qubit okay to really build a useful quantum computer you're going to want you know at least thousands
probably millions but it's a significant step on the way by the side of it's got thanks thanks so much for being with us and explaining that in in a comprehensible way so many thanks for doing that Scott Aronson there of the University of Texas at Austin now congestion charging in big cities making
you pay to drive into the busiest areas is not universally popular but it is widespread in the biggest urban centers in Europe and for about a month it has been in New York too but not anymore the federal government in the person of the U .S.
Transportation Secretary Sean Duffy is withdrawing support for the scheme ending it was a Donald Trump campaign pledge in fact.
And in the last few hours, he posted this on Truth Social.
Congestion pricing is dead.
Manhattan and all of New York is saved.
Long live the king.
Here's how the story broke on CBS News a short time ago.
I'm Jessica Moore with Breaking News.
We have just learned the Trump administration is pulling the approval for congestion pricing.
The Department of Transportation is sending a letter to Governor Hochul this afternoon saying it is, quote, backward and unfair.
We have a copy of that letter.
Well, I've been speaking about this to Tiffany Ann Taylor.
She's vice president for transportation at the Regional Plan Association and one of the architects of the New York congestion charge policy.
Well, it's been a shock to say the least.
Well, maybe it's a shock, but perhaps not a surprise if I can explain.
President Trump has stated before he came into office and since he's been into office that he was seeking to cancel or rescind the activation of the congestion advising program.
But to date, we've known that the program has been successful and we weren't really hearing anything through the political grapevine.
So we were pretty much confident that the program would continue.
So today it actually has been a shock to hear that the U .S.
DOT has rescinded the permission of the program.
Just for people who don't know, why does it matter what the federal government does?
Because presumably it comes under the administration of New York.
Yeah, this is where it gets confusing, perhaps, for some of your listeners.
So the program approval, because of the intensity of the program and the fact that it's affecting multiple counties that are even beyond the boundaries of New York City, required federal approval from our Federal Highway Administration, or FHWA, which is a part of the larger, obviously, U .S.
government under U .S.
DOT Department of Transportation.
So the piece of paper at the end of the day, which was called A Finding of No Significant Impact, was approved by FHWA, which essentially permitted the program to start.
So with today's announcement, Secretary Duffy from U .S.
DOT has said that the FHWA actually did not have the authority to approve that program for a number of reasons, as stated in his letter, and because of that has ordered that the program be halted.
So does that mean it'll stop right away?
That, I think, is unclear, to be honest.
I'm reacting to you in real time.
But I do understand that the MTA, which is the agency that is conducting congestion pricing, will be having a press event later today where we will learn more.
My understanding is that the MTA has filed a lawsuit or a suit, rather, in court to at least allow the program to continue.
So you and I and all of your other listeners will be learning this information in real time.
Well, I can bring you up to speed on that by saying the MTA have filed suit indeed.
And they're saying the withdrawal of approval from the program is for blatantly political reasons.
Do you read it the same way?
Yes, I do. We have early indication, even though it's only been a month, that the program is working.
There has been a reduction in congestion.
There has been improvements in local bus speeds and travel speeds.
We've also seen a reduction in traffic crashes and incidences with pedestrians.
We've seen increases in pedestrian activity and increases in activity in certain business districts like Times Square.
So we already were seeing benefits.
The MTA's board actually was about to give a presentation next week on more progress on the system.
We would have learned for the first time what the revenue generation has been.
And so my hope is that it had been positive.
But we're going to have to wait and see what information is released about that.
Well, Donald Trump has in the past criticized, as you say, as has the U .S.
Transportation Secretary, Sean Duffy, saying it left drivers without any free highway alternative and instead took more money from working people to pay for the transit system, not highways.
I mean, he has a point about where the money is going, doesn't he?
um not exactly because the money is dedicated to capital investments the capital program and investment investing in the mts capital system is actually a benefit both for drivers and non -drivers it's a direct benefit for those who are absolutely using the system or switching to the system after they've
driven in and for drivers it's still supporting the economic livelihood of our region which is the MTA.
So New Yorkers are better off with it than without it?
Absolutely. And, you know, the facts are shown that there are countries that definitely have their version of congestion pricing, and we've seen the benefits over time.
And just in the short 30 days since the beginning of this program in the United States, we've seen the benefits as well.
So I believe it's short -sighted to cancel the program so soon, if at all.
Tiffany Ann Taylor there speaking to me earlier.
Let's talk about what's been going on in the international economical markets.
Susan Schmidt, Portfolio Manager, Exchange Capital Resources Chicago, joins me now.
Susan, thanks for being with us.
One interesting thing, the minutes from the Fed, the Federal Reserve's last meeting, have been published.
Now, this is interesting because we get our insight into their thinking in terms of what they're going to do as far as interest rates are concerned.
What have we learned?
Well, we saw more nuances on Chairman Powell's statements about how the Fed is looking at things and echoing what we've heard from others.
There's a lot of uncertainty as to how changes from the President Trump administration will impact the economy.
It does seem to be from the minutes that the Fed is very strong in their stance that they want to make sure that inflation is coming under control.
they have quote a high degree of uncertainty right now in the economic backdrop and that relates to President Trump's tariffs and how that might impact the economy prices and supply chains and so investors expect that the Fed will not increase interest rates anytime soon and that they'll be in a holding
pattern for the next several months.
Yeah it's interesting and at the same time of course we have the UK inflation figures up a bit three percent I mean a sign that in the Western world, inflation isn't beaten yet?
Definitely not, and something that the central banks are aware of.
The challenge now is to balance the desire for economic growth against those higher interest rates, trying to keep inflation in check.
We'll see how it all pans out.
Thanks so much for being with us, Susan.
Susan Schmidt there, Portfolio Manager at Exchange Capital Resources in Chicago.
You're with World Business Report from the BBC World Service.
Now, the cryptocurrency exchange Binance has been served with a writ by the government of Nigeria for $81 .5 billion in damages, accusing the platform of causing economic harm and evading taxes.
The lawsuit filed by Nigeria's Federal Inland Revenue Service at the Federal High Court in Abuja on Tuesday includes a $79 .5 billion claim for alleged economic losses linked to Binance's operations in the country.
It also demands $2 billion back in back taxes.
I've been speaking about this to our Africa business correspondent, Giamaka Anendu.
The Nigerian government insists that Binance cause troubles, especially for the Nigerian currency, the Naira, where we did see the Naira do very poorly in the international markets and in the exchange rates market.
The Nigerian government insists that this did have very huge impact on the Naira, with the Naira trading very poorly against other international currencies.
So the Nigerian government is insisting that Binance is expected to pay $81 .5 billion in damages and also is expecting for Binance to pay $2 billion in back taxes.
OK, well, the taxes, I suppose, is one thing.
But this economic harm, how is it that a cryptocurrency exchange could cause harm to the Nigerian currency?
What's the mechanism?
Looking back, I recall during the period where Binance was quite operational here in Nigeria, people would rather go with the exchange rate that was stated on Binance, which the Nigerian government had insisted that this was due to speculations and had caused even more increased speculation across the market.
We have seen the market being largely impacted.
Binance has said that this was due to the economic policies that have been put in place at the time.
But the Nigerian government, for some reason, has consistently said that Binance was a major contributor to the freefall of the Naira.
So Binance isn't even registered in Nigeria.
So it's going to be a hard ask for the tax authorities to claim the tax from them.
Binance has never been registered in Nigeria.
And we still haven't heard from Binance regarding the lawsuit.
But Binance had previously stated that it was working with the Federal Inland Revenue Service to address concerns around tax.
But the tax authorities have argued that Binance has significant economic presence in Nigeria and should therefore pay corporate income tax.
Yeah, because I think since March last year, Binance hasn't actually dealt in Naira, hasn't traded in Nigeria at all.
So, I mean, it's all historical, isn't it?
It is historical, like you have called it.
The journey that Binance underwent in Nigeria unfortunately hasn't been a palatable one.
We saw, you know, the arrest of officials, Binance officials in Nigeria and the eventual release of these officials and the eventual closure of, you know, Binance operations in Nigeria.
So Binance hasn't had a presence in Nigeria for the past one year.
Our Africa business correspondent, Chiamaka Anin, do there.
Now, Germans are heading to the ballot box on Sunday to cast their votes in a snap federal election.
One of the main issues in this vote is the economy, which is struggling.
Germany's economy is the Europe's largest, but contracted by 0 .2 % in 2024, and its forecast to grow only 0 .3 % in 2025.
Kevin Kanes is a reporter in Berlin, and he's been talking to people in the city's Treptauer Park about how the economy is shaping their vote in this election.
I regularly watch the daily news, so I know that the economic situation is bad.
Margaret Rader is a retired doctor.
She watches the news every day, which here is full of stories about the struggling economy.
I spoke to her on a brisk, cloudy day here in Treptour Park, a large grassy area lined with trees in the south of Berlin, which is a popular place for locals to take a walk and chat with friends on a winter's day.
Many of the conversations I heard were about politics, with the election and the cost of living on people's minds.
So it doesn't look good, and it seems that people are trying to explain it by saying that energy has become too expensive, and that this has made the economy too expensive compared to other countries.
A few meters away, I met a retired teacher.
He was relaxing on a bench as he waited for his wife.
The economic situation is difficult.
He also pints some of the blame for the poor economic situation on high energy prices.
But all sorts of expenses have gone up for him.
He notices it every time he goes to shop for groceries.
Just as an example, I like to bake cakes.
And if you buy yeast before corona, it costs 9 cents a pack, then went up to 15 cents, and now it's 19 cents.
That's more than 100 % increase.
And that's just one example.
There are other examples too.
Broadly speaking, the food sector, including fruit and everything else.
According to one recent poll by the public service TV station ZDF, 44 % of German voters said the economy was the most important factor influencing their choice.
That certainly seemed to be the case back in the park.
My name is Tania and I'm a teacher here in Berlin.
Tania says she feels safe in her job.
but says many other people are dealing with growing uncertainty.
For individuals, I think it's harder because there are a lot of mini jobs that are temporary jobs or that you're asked to come in to work for a couple of hours and then you're released again.
So it's very unstable, the situation for non -academics, so to say.
Ricardo is 30. I'm a veterinarian.
He moved to Germany as a teen and got his citizenship five years ago.
He says because so many people bought pets during the pandemic, Like, his job is going well.
But he says that people around him are having a much harder time.
Many people are struggling to find jobs after being cut from their companies.
Do you have friends like that?
Yeah, some friends, yeah, in the artistic field, more of like visual arts.
I also have a very close friend which is a photographer.
He's fine, but sometimes there's also periods where he doesn't get any work at all.
So for some people it's very unpredictable, I guess.
All of this economic uncertainty is having a knock -on effect on politics.
People are finding costs going up across the board, including on rent.
And as our retired teacher says, that's affecting how people might vote.
Fortunately, we're not so tight that we can't pay for it.
But there are a lot of people who are living on the edge and I don't know how they're managing now.
So I can well imagine that they are dissatisfied and maybe won't vote the way the mainstream would like them to.
And that way, well, the far right Alternativa für Deutschland, or AFD, is expected to do well in this election, which is even more of a concern for most people I spoke to than the economy.
The party has been consistently polling second in Germany for more than a year and a half.
The economy, I'm more influenced by the danger from the right.
The economy, I don't really know how to improve it either.
German speaking to Kevin Caners in Berlin about that election, which is coming up on Sunday.
Now, a local government in the Philippines has come up with an unusual way to combat dengue fever.
Carlitos Sanal, village chief of Barangay Adishan Hills in central Manila, announced that he'd pay one peso, that's less than two US cents, for every five mosquitoes that were brought in.
Dengue fever is transmitted by certain species of mosquito and there's been a spike in dengue cases recently.
The programme, which will run for at least a month, was started after two students in Mr Kernal's neighbourhood died from the disease.
It drew swift ridicule, however, after it was announced late on Tuesday, mosquito farming is coming.
One social media comment read, will a mosquito get rejected if it's only got one wing?
Read another. Well, I asked the Professor Vikas Mehrotra from the School of Business at the University of Alberta if it was a good and effective way of controlling mosquitoes.
it. The answer to would it be effective, I'm doubtful.
I'm really doubtful, given the vast numbers of mosquitoes that would be prevalent.
I seriously doubt if bounty system is going to make a dent in the mosquito population.
But your first question was different.
Would it be a right way to go about it?
There, it could be, it could have positives.
For example, it definitely raises awareness, awareness about how mosquitoes breed.
You need to understand all of these things before you start catching mosquitoes.
If you raise awareness, that's obviously important.
But in terms of actually getting rid of the mosquitoes, I guess it's not going to be that effective because they must be quite hard to catch.
Absolutely. If you want to catch mosquitoes, the best thing to do would be to go near stagnant water and collect the larvae before start flying away.
That would be the best way to do this.
However, I doubt if that's very effective given the numbers involved.
And it will not work if other things are also not done in parallel.
For example, I'm pretty sure the health authorities in Manila are also working in parallel with other more tried and trusted means of eradicating mosquito populations.
I was going to say, what are the more effective means then?
Because I understand the government in Manila has talked about maintaining the cleanliness of surroundings, destroying potential mosquito breeding sites and tyres, things like that, and wearing long -sleeve shirts and trousers, using mosquito repellent.
I mean, we're familiar with all those, but are they effective either?
Well, they're certainly more effective than catching 10 mosquitoes in two hours.
The way I would look at it is in Manila, if the imperative here is to look at dengue fever, at the increasing incidence of dengue fever, then spraying mosquito sites would be a good thing to do.
Just to interrupt you, in the end, it's mosquito eradication more than anything that will deal with this.
Is that the right way to look at it?
Not all mosquito species need be eradicated.
There are many that could well be useful, for example, for pollination purposes.
Mosquitoes are excellent pollinators for plants and so on.
And is there also perhaps a more high -tech way of doing it to do with introducing different genes into the population of mosquitoes and this kind of thing?
Would that overall be a better way to try and tackle this rather than what seemed like fairly haphazard methods like this?
You could go high tech, populate the mosquitoes with a new terryl subbreed.
I doubt if the Manila health authorities have the inclination or the time to do that.
Also, keep in mind, there is this whole thing is kind of a reflection of the cobra effect where the British authorities back in India were put a bounty on cobras.
and the legend is that the Indians started farming cobra so where a solution makes the problem worse rather than alleviating the problem.
Professor Mbika Samirotra and that's it from World Business Report.
