stubborn inflation dashes hopes of lower borrowing costs in the us this summer and rattles wall street. investors are having to grapple with the potential for many fewer cuts which is pushing interest rates up along with high inflation expectations. all eyes on frankfurt now as the european central bank makes its latest policy decision. will europe lead the way to cheaper borrowing or wait for the us to make a move? also coming up — not working. us employers want a shake—up of the immigration system as they struggle to fill vacancies despite record numbers arriving in search of a job. and the toughest level yet: after years of growth, the games industry faces job losses and even bankruptcies as the pandemic—era boom turns to bust.

welcome to our look at their business news. we start in the us, where hopes of cheaper borrowing costs this summer have been dashed by a bigger—than—expected rise in inflation. america's consumer price index for march showed price rises are actually accelerating instead of coming down. the price of goods and services was up 3.5% year—on—year in march — faster than the 3.2% rise seen in february. it's the third month in a row that inflation has come in higher than expected, and it's still way above the 2% targeted by america's central bank, the us federal reserve. markets had been betting the fed would start cutting interest rates from june. they now don't expect a cut

until september or even november. here's erin delmore in new york. when we saw hotter than expected inflation reports in the past, they were explained away as being seasonal or a one off. now we see three street reports that have come in hotter than expect it and after steve falls from its record high in mid—2022, the rate of inflation has remained stuck for the past three months. energy was the main driver of the increase and housing costs, which make up a big weighting of the cpi. the fed is trying to bring inflation down to its 2% target and to do so without sparing an economic downturn. the inflation reader on wednesday poured cold water on the expectation that was the a rico in june. the expectation that was the a rico injune. such a couple ringed a borrowing cost for customers and businesses and it would be welcome news for president biden as he runs a real action. president biden as he runs a realaction. during president biden as he runs a real action. during a press conference with the japanese prime minister.—

conference with the japanese prime minister. how concerned are ou prime minister. how concerned are you about _ prime minister. how concerned are you about the _ prime minister. how concerned are you about the fight - prime minister. how concerned are you about the fight against| are you about the fight against inflation — are you about the fight against inflation stalling and do you stand — inflation stalling and do you stand by your prediction for a redkite? _ stand by your prediction for a redkite? | stand by your prediction for a redkite? ., , ., _ redkite? i do stand by the prediction- _ redkite? i do stand by the prediction. this _ redkite? i do stand by the prediction. this may - redkite? i do stand by the prediction. this may delay| redkite? i do stand by the l prediction. this may delay a month— prediction. this may delay a month or— prediction. this may delay a month or so, _ prediction. this may delay a month or so, i— prediction. this may delay a month or so, i am - prediction. this may delay a month or so, i am not - prediction. this may delay a month or so, i am not sure. prediction. this may delay a - month or so, i am not sure. we do not _ month or so, i am not sure. we do not know— month or so, i am not sure. we do not know what _ month or so, i am not sure. we do not know what the _ month or so, i am not sure. we do not know what the fed - month or so, i am not sure. we do not know what the fed will. do not know what the fed will do not know what the fed will do for— do not know what the fed will do for certain. _ do not know what the fed will do for certain. we _ do not know what the fed will do for certain. we have - do for certain. we have dramatically— do for certain. we have dramatically reduced . do for certain. we have - dramatically reduced inflation from — dramatically reduced inflation from 9%_ dramatically reduced inflation from 9% down _ dramatically reduced inflation from 9% down too _ dramatically reduced inflation from 9% down too close - dramatically reduced inflation from 9% down too close to i dramatically reduced inflation. from 9% down too close to 3%. still. _ from 9% down too close to 3%. still. the — from 9% down too close to 3%. still, the data _ from 9% down too close to 3%. still, the data on— from 9% down too close to 3%. still, the data on the _ from 9% down too close to 3%. still, the data on the producerl still, the data on the producer price index could offer more clues about the path ahead. and we will be hearing more from erin later in the programme when she takes a look at labour shortages in the us — anotherfactor pushing up inflation. well, let's stay with the cost of borrowing but move to frankfurt, where the european central bank is holding its latest policy meeting. the ecb sets interest rates for the countries that share the euro currency. it is not expected to cut rates today, but inflation in europe has fallen sharply, and the region's biggest

economy germany is struggling, with businesses there crying out for cheaper borrowing costs. let's look at all of this in a bit more detail now. wei li is global chief investment strategist at blackrock. welcome to the programme. we are expecting to hear from the ecb and many people often compare the us and the uk as well, what can we see from them today? well, what can we see from them toda ? ~ �* ., , . well, what can we see from them toda? ., ,. ., today? we're not expecting a cut today. — today? we're not expecting a cut today, neither _ today? we're not expecting a cut today, neither is - today? we're not expecting a cut today, neither is the - cut today, neither is the market but the themes that are looking for today is that we are expect being a potential reiteration, even a double down, on the fact of the concerns for a junior cut to start, which was the signal

they sent recently. from there on, it will be very data dependent in terms of how deep the cuts will come, and our expectation is we are looking at a more shallow cut cycle in comparison with previous economic cycles because of more persistent inflationary pressure. comparing that with the us, we think it is possible that the ecb may well cut sooner than the fed because of betty behaving inflation, and weaker growth. as a result of the european government bonds, it has been a better position than the us equivalent. the same could _ than the us equivalent. the same could be _ than the us equivalent. the same could be said - than the us equivalent. the same could be said of the uk economy and what we are expecting from the bank of england. do you think it is fair, orthe england. do you think it is fair, or the comparison that we

have had and heard a lot of, in terms of the divergence between the eurozone, the uk and the us? . ., , . ., the eurozone, the uk and the us? ., ,. ., the eurozone, the uk and the us? . ,. ., us? what is clear, as you can see from _ us? what is clear, as you can see from the _ us? what is clear, as you can see from the currency - us? what is clear, as you can - see from the currency movement as well, the dave andrews may well be a bit more pronounced between europe and the us, so we think about the uk, the trade—off between growth and inflation still applies. talking about labour shortage, talking about muted growth to start cutting. from there onwards, similar to what is happening in eurozone, the depth of rate cuts will be likely, shallower compared to previous cycles because again given the lower productivity as well as labour shortage, where will see persistent inflationary pressure that

requires the central bank to lean against that, so high for longer in comparison with previous cycles is also what we expect in the uk.— expect in the uk. thank you very much- _ so how is all this being seen on the markets? anna macdonald is senior equity analyst at sustineri global investment based in edinburgh. lovely to have you with us. we have seen markets react to a lot of the news coming out of the us, haven't we? tote lot of the news coming out of the us, haven't we? we have seen the _ the us, haven't we? we have seen the equity _ the us, haven't we? we have seen the equity market - the us, haven't we? we have seen the equity market react| seen the equity market react any fixed income market. the s&p, a broad gauge of the biggest us companies, top 500, it fell nearly 1% in what was interesting was a broad—based ball, nine out of every ten stocks did mark a downward move yesterday. that has spread out into asia overnight so we could expect weakness here this

morning. the other thing to think about is the fixed income markets, so we saw yields rise, so prices fell on a lot of bonds and mostly in the us there was the biggest move for something like 16 or 17 months in the us. they also had a big $39 billion auction of us treasury yesterday, which did not go particularly well, it did not even meet the current rates that were available. that shows there was quite a lot to digest yesterday in terms of that higher than expected inflation number in the us. where are investors now putting their money and what will that mean for stirling?— mean for stirling? stirling in the ecb were _ mean for stirling? stirling in the ecb were saying - mean for stirling? stirling in the ecb were saying that - mean for stirling? stirling in j the ecb were saying that the bank of england and the ecb are probably likely to cut sooner than the us, a lot of that is down to our weak economy and our week inflation numbers. we could see a bit of weakness in

those currencies against the us dollar, if you think you can put your money into us dollars and get a slightly higher interest rates, that will be whether pressures are. remember that the reason we are seeing these higher than expected inflation numbers in the us is also that the economy is strong and it will attract investors. in terms of the general health of the economy in the eurozone, what are they doing right? what what are they doing right? what are they doing — what are they doing right? what are they doing right? _ what are they doing right? what are they doing right? i - what are they doing right? wiat are they doing right? i think they... i think it is easier to see what the us is doing right in terms of it has benefited from lower energy costs, now an energy importer and a lot of investment into infrastructure and things to be ia. the eu is trying to wean itself off the

energy crisis that we saw in 2020 two, so that is better, trying to stabilise other forms of energy is definitely a positive. a downward path to interest rates will help a lot. it cannot be denied that the eu in the uk have got much more sluggish economy than the us. thank you very much. to china now, where the struggling economy has been facing a different problem — not inflation but deflation. a weak recovery from the covid crisis had seen prices falling for six straight months before an uptick in demand in february, thanks to lunar new year celebrations. but it looks like that was a something of a blip. data out in the last few hours shows the price of goods at the factory gate — producer prices — continuing to fall. and consumer price inflation fell back to just 0.1% —

a slump from the 0.7% recorded in february. prices began rising again in february after a months of deflation. rory green is chief china economist and head of asia research at globaldata ts lombard. welcome to the programme. china is struggling and deflation is persisting?— persisting? that is right. a nice problem _ persisting? that is right. a nice problem to _ persisting? that is right. a nice problem to have - persisting? that is right. a . nice problem to have compare persisting? that is right. a - nice problem to have compare to the rest of the bobber what it shows is very weak domestic demand, the production side of the economy has raced back since covid—i9 restrictions lifted, the consumption side and a lot of that type your property remains very weak. you have the supply, demand, the imbalance and that means prices are falling across the country. in terms of the trends in the country, obviously we had the

big issue of the property, it fell out the bottom of the property sector, is that silly key factor for china? absolutely. that is the dominant factor weighing on economic activity. outside of the property sector there are if you signs of stability within the economy, the property remains very weak. beijing is starting to gradually ramp up stimulus measures which is encouraging in the second half of the year, but for now property remains a huge drag on activity.— huge drag on activity. what 0 tions huge drag on activity. what options are _ huge drag on activity. what options are there _ huge drag on activity. what options are there when - huge drag on activity. what options are there when it . huge drag on activity. what - options are there when it comes to policy for china?— to policy for china? what bei'ina to policy for china? what beijing is _ to policy for china? what beijing is leaning - to policy for china? what beijing is leaning into - to policy for china? what beijing is leaning into at| to policy for china? what i beijing is leaning into at the moment is a focus on tech, xi jinping is all in, on what he views of the industries of the future, so a lot of the fiscal

stimulus now is going to semiconductors, clean energy, robotics, these very policy favoured sectors that are in theory driving productivity and short—term gains in activity. thank you very much. around the world and across the uk, this is bbc news.

let's return to the us now, because as you've been hearing, president biden has been hosting japanese prime minister fumio kishida on a state visit to washington. amazon founderjeff bezos and federal reserve chair jerome powell were among the top business leaders attending a state banquet on wednesday night suranjana tewari from our asia business team has been watching developments from the us—japan meeting. what's the latest?

what has been at the top of the schedule? jae what has been at the top of the schedule? ., �* ., schedule? joe biden and japanese _ schedule? joe biden and japanese prime - schedule? joe biden and japanese prime minister| schedule? joe biden and - japanese prime minister fumio kishida unveiled plans for military cooperation and projects ranging from missiles to move landings, and the visit has really been a show of strengthening the alliance between the us and japan, ending in a lavish state dinner with some of america's most prominent clinical, business and culturalfigures. early in the day there was a joint news conference, reflecting the growing importance of japan conference, reflecting the growing importance ofjapan on the world stage with president biden saying it is the most significant upgrade in the alliance since it was established. a lot of the announcements were around militarily and strategic decisions, the two countries working together for what they see as a growing threat from china in the indo pacific.

there were economic announcements as well, the two countries said four universities are part on artificial intelligence research funded by around $110 million investment by the likes of nvidia, amazon and microsoft. the leaders are also expected to discuss a bullet train a project in texas that would use japanese technology and investment but the elephant in the room was a dispute over the steel offer for a us steel. the leaders brushed it off, saying the issue was a major factor in their discussions. it is a $15 billion deal and there is a $15 billion deal and there is opposition to work within the us, concerns over national security for example, anna president biden is unable to get behind the deal because of election politics. fumio kishida is due to address congress later and this may not be the last we have heard of

japan and the us economic partnership. japan and the us economic partnership-— let's return to the us now, where business owners in new york have told the bbc that the immigration system is "not working" and is "broken" as they struggle to find staff. this is despite record numbers of new migrants arriving in search of a job. erin delmore has been taking a look at the political and bureaucratic issues adding to america's labour shortage. for colombia native alexandra gomez castro, overwhelming joy when she finally got a permit to work legally in new york city. translation: when i received the work permit, i became - filled with tears, great emotion. she, her husband and their three children are part of an unprecedented wave of migrants arriving in new york city totalling more than 180,000 since 2022. they come from all over the world, many from south

and central america, fleeing threats of violence by foot and seeking asylum at the us border. translation: you know, we arrived with nothing i because they took absolutely everything away during the journey. she and her children were separated. translation: how would| i explain to a ten-year-old girl the motive for which we came? it was hard for her to learn about the attempted murder of her mother and father. reunited, the family travelled further north to new york city, which uniquely provides shelter to anyone without housing. a nonprofit project handled her asylum application and secured her work permit. but not everyone finds their way through the complex forms and bureaucracy. they wait in old hotels and schools. now makeshift shelters teeming with new arrivals. city services are buckling. calls to shut the border or send them back are at

a fever pitch. yet business owners in the city say these new arrivals could be the answer to their labour shortages. so i'm on a whatsapp group with 300 restaurateurs and everyone is asking all the time, "do you have a line cook?" "do you know of a manager?" "do you have a waiter?" migrants come by barbara sibley�*s mexican restaurant la palapa, looking for work, but their path to legal work is slow and complicated. the system is broken. these folks are here without the tools that they need to help me. it's that basic, right? i know for sure in new york city, in the restaurant business, if the workers could work, we would have jobs. native—born workers don't make up as much of the us workforce as they used to. the baby boomers are retiring and birth rates have been falling for a while. so if the us wants to keep up the size of its workforce or grow it, immigrants and migrants are a readily

available solution. we need the federal government to make it easier to fill these jobs. it's not like they are displacing americans from working in theirjobs. for centuries, immigrants have travelled to the us looking for work and attempting to create a better life for theirfamilies. their work is imprinted on new york's restaurant scene and some the other businesses. translation: i'm a woman that will learn to work in whatever, i even if it's complicated. many in america may not welcome her, but alexandra and herfamily are living out a very american story. erin delmore, bbc news, new york. finally, to the world of games, because the uk entertainment sector holds its �*oscars' for the games industry later this evening — the bafta games awards. leading the nominations,

baldur�*s gate 3 from the belgian developer larian studios, which won best game at the us awards last month. the bafta games awards turn 20 this year. in the last 2 decades, the global games market has grown to an estimated quarter of a trillion dollars. but after years of growth, the industry is facing an unprecedented crisis as the pandemic boom in gaming turns to bust, with thousands ofjob losses in the past couple of years and predictions of company failures this year because of overexpansion and the cost—of—living crisis. let's speak to marc winther, head of game ecosystems at esl faceit group, which holds gaming and esports tournaments. welcome to the programme. he sports, what are we talking

about? ., . , sports, what are we talking about? ., ., , , , sports, what are we talking about? ., ., , , about? for many people it is an odd one. _ about? for many people it is an odd one, something _ about? for many people it is an odd one, something i— about? for many people it is an odd one, something i have - about? for many people it is an i odd one, something i have grown up odd one, something i have grown up with but in general, professional games played in stadiums full of fans competing for millions of dollars, so thatis for millions of dollars, so that is the best way to describe it. it is not new in any capacity but a lot of people are just discovering out. people are 'ust discovering out. ., . , out. how excited is the industry _ out. how excited is the industry and _ out. how excited is the industry and how- out. how excited is the - industry and how important our rewards like this for the wider industry? rewards like this for the wider indust ? ,, , , rewards like this for the wider indust ? ,, _ , industry? simply put, you mentioned _ industry? simply put, you mentioned as _ industry? simply put, you mentioned as well, - industry? simply put, you mentioned as well, the i industry? simply put, you i mentioned as well, the bafta games awards the oscars of our gaming industry, so definitely important. definitely good to see we get the same recognition as the bigger industries of present and previous times, the movies and so on. definitely an honor. this you will be exciting, it is the 20th year, so definitely expecting a special show and ceremony. i special show and ceremony. i understand some of the retro games are coming back. is that

the likes of super mario? why are they making urea periods? retro may not be the right descriptor because retro games like tetris and pacman and a super mario and other games, they stay true to the times, there might�*ve been around for decades but they are continuing to stay by following trends, following the industry and following the industry and following the industry and following the generations to stay relevant. me as an older generation, i plead a game boy and now i show my son to play it on the pc. and now i show my son to play it on the pc— it on the pc. obviously people send it on the pc. obviously people spend less — it on the pc. obviously people spend less on _ it on the pc. obviously people spend less on these _ it on the pc. obviously people spend less on these games i spend less on these games because we have job losses within the sector. how much of a hit has it been?— a hit has it been? definitely the games _ a hit has it been? definitely the games industry - a hit has it been? definitely the games industry is i a hit has it been? definitely the games industry is a i the games industry is a recalibration stage following the covid—19 induced highs.

definitely companies are reevaluating how to best serve their users and engage with their users and engage with their audience and do still continue to grow the phantom. that also includes the right size of companies, is headcount, business models to be around for the next decade. obviously there are big names involved within the gaming world. what about the independents? are they able to enter, to survive?— enter, to survive? absolutely, we see them _ enter, to survive? absolutely, we see them pop _ enter, to survive? absolutely, we see them pop every - enter, to survive? absolutely, we see them pop every now. enter, to survive? absolutely, i we see them pop every now and then and not to say they cannot play with the big boys, absolutely every now and then we see these independent publishers come around and do a smash hit. it is about finding the right trend and something the right trend and something the community gets behind because at the end of the day if it is a good game in the community likes it, it will do well. ~ . community likes it, it will do well. ., ., , well. what does the future look like? what _ well. what does the future look like? what friends _ well. what does the future look like? what friends do _ well. what does the future look like? what friends do you i well. what does the future look like? what friends do you keep| like? what friends do you keep your ion? like? what friends do you keep our ion? , , ., , , your ion? definitely on my side

ofthe your ion? definitely on my side of the business, _ your ion? definitely on my side of the business, and _ your ion? definitely on my side of the business, and the i your ion? definitely on my side. of the business, and the gaming industry, it will continue to play a vital part in the overall industry for the future. right now in china for our re—entry into the chinese market after covid—19, and we see — we are blown away. the landscape continues to grow with over 5 million fans worldwide, we continue to see a number of off an interest in new markets, predominantly gaming is of course european, asian, north american but we see american markets such as india, the middle east and other regions starting to become more and more relevant. we're going anywhere.— we're going anywhere. thank you very much- _ we're going anywhere. thank you very much- all— we're going anywhere. thank you very much. all the _ we're going anywhere. thank you very much. all the top _ we're going anywhere. thank you very much. all the top stories i very much. all the top stories are coming up at the top of the elbow. for now, that is all.

hello. well, some of us are in for a fine day. thursday's expected to bring warm, sunny spells to many northern and eastern parts of the country. certainly won't be like it everywhere — in fact, farfrom it in the morning across many western and southern areas of the uk. right now, a lot of cloud shrouding the uk. a weatherfront is crossing us, bearing rain and dribs and drabs possible anywhere through the night and in some areas even quite heavy for a time. but this weather front is caught in a current of very mild air streaming in from the southern climes, quite a breezy end to the night is expected as well. but i think by the time we get to around 6:00 in the morning, you can see the skies are clearing across many eastern and some western areas of the uk as well. temperatures will be in double figures in most major towns and cities. so, here's the morning then, the forecast. you can see still a fair amount of cloud across some southern and western areas, dribs and drabs of rain,

but already sunshine across, say, many northern and northeastern parts of the uk. the temperatures are very pleasant indeed — widely, i think, into the high teens or 20 degrees across england, eastern scotland, around 18 and out towards the west, around 1a to 17 degrees celsius. but the west will always be more cloudy. now into friday, the south of the country is closer to an area of high pressure, so i think brighter skies here. but i say brighter, not necessarily all that sunny, because we still have that relatively mild and murky current southwesterly wind, in fact, bringing some outbreaks of rain to northwestern areas. so the sunny, brighter skies will always be further towards the east and south and every bit as mild or warm, 20 degrees widely, in some areas, mid or high teens. now, that warmth isn't going to stick around. in fact, saturday night into sunday, we're expecting this slightly cooler air mass or much cooler air mass drifting in out of the west and the north atlantic and brought also by this area of low pressure, which is expected to sweep in some rain to many northwestern

areas of the uk. so, yes, we've got three days of relatively mild, if not warm weather given some sunny spells, but by the time we get to sunday and certainly into monday, it's all change — colder and outbreaks of rain from time to time.

good morning.

welcome to breakfast with charlie stayt and naga munchetty. our headlines today... a man is charged with the murder of kulsuma akter, who was stabbed in bradford whilst pushing her baby in a pram. habibur masum will appear before magistrates today. calls for royal mail to investigate claims that china is behind a rise in counterfeit stamps. as waiting lists for dentists grow ever longer, a national charity drives its dental bus to newcastle for its biggest project yet. higher costs to renew your passport. we'll be taking a look at all the price changes in effect from today. the 176th grand national takes place

on saturday, the three—day festival begins today here at