Expect global markets to fall, says Bank of England

The BBC's World Business Express explores growing concerns from the Bank of England's Deputy Governor, Sarah Breeden, who warns that global stock markets may be ignoring significant economic risks despite reaching record highs. She highlights multiple red flags—rising oil prices, instability in non-bank lending markets, and a potential AI-driven market bubble—while emphasizing that while a 2008-style crash is not imminent, a market correction is likely inevitable. Her direct language about asset prices being too high marks a rare departure from central bankers' usual caution. Investment strategist Susanna Streeter adds that while strong corporate earnings, especially in AI and semiconductors, support market gains, the concentration of returns in a few tech giants creates fragility. She warns of geopolitical risks to supply chains and inflationary pressures from energy volatility, urging investors to prioritize diversification. Meanwhile, the episode covers China’s rising dominance in electric vehicles, spotlighting innovations at the Beijing Motor Show, including fast-charging breakthroughs by BYD and the rapid rise of Chinese EV brands challenging global luxury automakers. The segment also touches on DeepSeek’s AI advancements and U.S. regulatory closure of an investigation into Federal Reserve building costs.