Transcript of Tech stocks tank over AI panic

This is the Global News Podcast from the BBC World Service. Hi, I'm Ankur Desai, and at 15 GMT on Friday, 6 November, these are our main stories. Global stock markets plummet over fears of a slowdown in the development of AI following the U.S. midterm election results. The leader of a doomsday cult in Kenya is sentenced to 200 years in prison after being found guilty of murdering more than 190 people. And another wave of bomb threats disrupts passenger flights in Europe.

As far as I'm concerned, the criminal case must continue, because a thief like this cannot go unpunished. He disappointed us. He robbed working people.

The president there faces an impeachment hearing, and three weeks after cancer surgery, the Pope heads for South America. Let's start with the news that tech shares around the world have tanked amid concerns of a slowdown in AI development. It comes after a sweeping Democrat victory in the U.S. midterm elections. The tech-heavy Nasdaq Index lost an estimated $2.5 trillion in one day. But how much of this is down to U.S.

This may well have been sparked off by the results in the midterms, and as we know, a number of Democratic candidates campaigned on more restrictions for data centers and that kind of thing. So there's a fear of more regulation. But I think this is a symptom of something wider that's been growing for weeks, if not months, which is that the exuberance over AI, which has been going on since 2022, the sort of gold rush that everybody's plowing money into AI, and more people are plowing money in because they've got fear of missing out, a bit of FOMO, that's been going on for years.

Markets in Asia have been particularly badly affected. Japan's Nikkei Index and South Korea's KOSPI both closed down 6% on Friday. Stocks in Taiwan had their worst week for 25 years. I asked our correspondent in Seoul, Jake Kwon, why these markets have been hit so hard.

It's partly because of all the successes that we've seen from the AI chip makers here in East Asia. One of the first and early beneficiaries of the AI boom are companies like SK Hynix, Samsung Electronics in South Korea, and Kioxia in Japan, and TSMC in Taiwan. These are the chip makers whose memory chips are the critical component in the AI data centers, and they've been really flying off the shelf. They could really ask their buyers any price.

What could the consequences be then for a country like South Korea, for example?

Look, South Korea, Taiwan have been having some really unprecedented growth thanks to this AI boom. It is hard to overstate just how important Samsung Electronics and SK Hynix has become to the South Korean economy. The two companies combined, their value comprises about half of the entire stock market here in South Korea. And that's why even the companies that have nothing to do with tech or AI, their value was dragged down today. And the question is, if these companies can no longer sell at the rate they have been, it's going to bring some kind of recession to the entire economy of South Korea.

Jake Kwon in Seoul. We go to Kenya now, where a court has sentenced the self-proclaimed pastor, Paul Mackenzie, to 200 years in prison for the murders of more than 190 people, all but one children. Mackenzie ordered members of his cult to starve their children to death so they could meet Jesus. He was found guilty last month by a Mombasa High Court alongside 27 accomplices. More than 400 people died in the Shakahola Forest Massacre. Lady Justice Diana Rachel Kavetze-Mochache announced the sentence.

Convict one, Paul Denge Mackenzie, 100 years imprisonment for each of the 193 counts of murder by starvation, one count involving an adult victim, and 182 counts involving child victims to run concurrently with one another. B, 100 years imprisonment for each of the eight counts of murder by direct homicide involving child victims to run concurrently with one another, making an aggregate sentence of 200 years imprisonment for convict Mackenzie.

Our Nairobi correspondent, Thomas Mukwana, has been following the story.

The families of the victims were asking for Pastor Paul Mackenzie to not be let out of prison, because he's been in prison since 2023 March. And that's because one father who lost six children said that Pastor Paul Mackenzie is a danger to the public. And from the judge and how the judge was speaking in court today, it seemed like she agreed, because she said that Pastor Paul Mackenzie has shown no remorse. That's because all those 191 people who died, 190 of them being children, despite all that, Pastor Paul Mackenzie still claimed no responsibility, even though he's the one who went into that forest and fast and led all those people in there.

And a lot of people are asking the question, why did he not receive the death penalty?

That's because the death penalty is unconstitutional in Kenya. The highest court of the land, the Supreme Court, said that it's unconstitutional because it restricts someone's right to life. And the last time someone was ever hanged in Kenya was in 1987 in a completely unrelated case. But this is a landmark ruling, because the man is in his early 50s. Paul Mackenzie is 52 years old. If he's convicted to stay in prison for 200 years, there's no way he's leaving prison before he's died. So this is effectively a death sentence.

Thomas, what was Paul Mackenzie's reaction to the verdict and the sentencing today? What was his demeanor like?

He has, throughout this sentencing, I remember when the verdict was given, he was very angry, and he even said to journalists that he would appeal this decision. It still strikes me like he's a very defiant man. It's very difficult to think of him as a man who's sympathetic or remorseful. Well, he at least acknowledged that his doctrine led to so many deaths, but he still claimed absolutely no responsibility. And his son, Dan Mackenzie, we spoke to him when we went down to Malindi.

And just very briefly, finally, Thomas, do we know much about the 27 accomplices?

All those men and women were people who held different roles in Mackenzie's hierarchy. They're men who dug those graves, concealed them, some by planting plants on top of graves. And some of those people ran kitchens, which strictly only fed men who were carrying out these killings and burials. So they're all men who lived with Paul Mackenzie and were around him 24/7 as he ran this murderer's cult.

Thomas Mukwana reporting from Nairobi. Next to Paraguay, where protests have been raging through the night. It's a country of just 6.5 million people, and nearly half of them now cannot access their savings after one of the country's main banks collapsed. Paraguay's president, Santiago Beña, has business links to the Bueno Bank. He attempted to resign over the scandal, but has now been facing an impeachment hearing. One protester said he must face justice.

I believe his resignation should never be accepted. It's a complete act of cowardice. As far as I'm concerned, the criminal case must continue. The impeachment process must go ahead, because a thief like this cannot go unpunished. He disappointed us. He robbed working people.

I spoke to our Global Affairs reporter, Mimi Swaby, about the extraordinary developments over the past week.

It all centers around Bueno Bank and Santiago Beña's ties to it. The bank essentially collapsed earlier this week after a severe capital shortage. It's gone into solvency proceedings and essentially left 3 million people unable to access their accounts. People are extremely angry, and this is because they are blaming or largely blaming the president. This has led Congress to try and impeach him. Lawmakers voted unanimously on Thursday to launch an impeachment proceedings, moving it to the Senate.

Yes, I guess a big question then, what about people's moneys, their savings? How were they able to access them or regain them?

As part of Mr. Beña's attempted resignation video, which he posted on social media, he said, firstly, he apologized to all Paraguayans, saying, if I've caused any issues, I'm sorry if that was never my intention. But then he said his priority now was the peace of mind of individuals who'd put their money in the financial system, the very financial system, the Bueno Bank, which has caused his downfall. He has said that it's his main priority to get their money back, essentially. In an attempt to try and ease people's minds, he requested the resignation of the central bank president and set a five-day limit for return of funds.

Our Global Affairs reporter, Mimi Swaby. Still to come in this podcast.

Executing 737 people in California, we will have executed roughly 30 people that are innocent. I don't know about you. I can't sign my name to that.

The governor of California has said he will commute all death sentences, sparing the lives of over 500 inmates.

This is the Global News Podcast. Now to the news that another wave of bomb threats has disrupted passenger flights in Europe. In addition, several newsrooms in Ireland, including the national broadcaster, were evacuated, also following bomb threats. Spain's foreign minister has said the continent appears to be facing hybrid aggression and a form of psychological warfare. In all of the threats, no explosives have been found. Our security correspondent, Frank Gardner, told me more.

There are now getting close to three dozen of these planes that have had to be diverted and escorted because of these hoax bomb threats. It's immensely disruptive. Couple that with the threats to media organizations in Ireland and elsewhere, which the Irish government say are connected to the bomb threats. So clearly, this is a coordinated program of disruption. Who is behind it? That's the big question. So there were two emails sent, one to the authorities in Rome's Fiumicino Airport, another to the authorities at Sofia Airport in Bulgaria, claiming to be from fighters of the male state.

And finally, Frank, this is, I guess, showing how easy it is to cause disruption and how widespread it is.

This is whoever's doing it, it's asymmetric activity at its most effective, because you're right, it's a very low risk to the perpetrator. They probably can't be traced. Even if they can, there will be different sort of layers that have got to be got through. And if it is Russia, then probably they're perfectly safe in Russia or in Belarus. It could be a non-state criminal group for some bizarre reason. Very hard to find them. And yet, as you say, maximum effect, maximum disruption.

Our security correspondent, Frank Gardner. A 90-year-old woman who was shot during Australia's Bondi Beach attack last December has died in a Sydney hospital. Eva Geller was one of dozens who were seriously injured when two gunmen opened fire at a Jewish event. 15 people were killed. A gun buyback scheme began this week, launched in response to the Bondi attack. Licensed gun owners in the state of New South Wales can surrender firearms in exchange for money. Our Australia correspondent, Katie Watson, reports from Sydney.

Australia's Prime Minister, Anthony Albanese, said he was saddened by Eva Geller's death. Almost a year on, he said, the devastation of that awful day continues to cause pain for families. Rabbi Aaron Moss said the 90-year-old who escaped the Holocaust as a child had been in and out of hospital since the shooting due to significant leg injuries. The attack last December was Australia's worst mass shooting in almost three decades. It led to sweeping gun law reforms and a crackdown on hate speech. One of the gunmen was killed by police at the scene. His son, Naveed Akram, was arrested and charged with 15 counts of murder, 40 charges of attempted murder, and one count of committing a terrorist act.

Katie Watson in Sydney. To the United States now, where the governor of California, Gavin Newsom, has commuted death sentences for all those facing execution by the state, allowing them to serve life in prison without the possibility of parole.

I moved forward just moments ago with an executive order advancing a moratorium on the death penalty in California. Executing 737 people in California, we will have executed roughly 30 people that are innocent. I don't know about you. I can't sign my name to that. I can't be party to that. I wouldn't be able to sleep at night.

The move will impact the lives of more than 500 inmates in the state, which has the largest number of people on death row in the US. The American Civil Liberties Union praised Mr. Newsom's decision, calling it a historic step towards ending the death penalty in California and across the country. However, others oppose the move, including Anne-Marie Schubert. She was a leading prosecutor for more than three decades and is now the CEO of the Criminal Justice Legal Foundation.

We're talking about the worst of the worst killers here in California. We're talking about serial killers, child killers, mass shooters, people that kill police officers, people with horrific records. And so for victims, I run a victims' rights organization which is designed to stand up for crime victims. This was a devastating blow to them. In California, we have a very robust process. Juries make decisions, judges impose sentences. And ultimately, California voters have decided time and time again that this is an appropriate sentence in the most unique set of circumstances.

Anne-Marie Schubert. It's quite a big week for the Pope. On Wednesday, he hosted musician Bob Dylan at the Vatican. Now he embarks on a tour of Latin America just three weeks after having lung cancer surgery. He's heading to Uruguay and Argentina, as well as Peru, where he was a priest for many years. Sarah Rainsford told us more from Vatican City.

It's just over three weeks since we were here on the square here at St. Peter's, talking about the fact that the Pope had made this pretty shocking announcement that doctors had discovered a tumor on his lung and that he was going to have surgery. And so less than a month later, he's heading off on what is a pretty grueling trip. It's 12 days almost in total. It's going to see him covering thousands of miles, taking very long-haul flights. He's just taken off heading for Uruguay first and foremost. And it is going to take him from the Amazon to the Andes.

Sarah Rainsford reporting from Vatican City. Now, in yesterday's episode, we reported on an Italian chef who was fired for refusing to add pineapple to pizzas at the restaurant where he worked. We've always loved hearing from our listeners. And I mentioned that if you have any thoughts on pineapples on pizza, do get in touch. And you did. We received this email from Laura in Canada. Voiced by a producer, it gave the team a nice little chuckle.

I was amused and confused at why a person was fired over pineapple on pizza. I'll admit, I don't understand the hate and I'm baffled it has reached such heights as to be newsworthy. If you don't like a food, you don't have to eat it. Pineapple on pizza might not be Italian, but at one point, neither were tomatoes, both from South America. Don't yuck someone else's yum. But if you insist on yucking pineapple on pizza, may I introduce you to a Swedish take?

So who would have thought pineapple on pizza could cause such a stir? Do you have any other offbeat topics that grind your gears? Well, we'd love to hear about them. We just love hearing from you in general. So do get in touch and we'll read them out. Or if it's a voice note, we'll play that out too. Email us at globalpodcast@bbc.co.uk. And that's all from us for now. If you want to get in touch, you can email us at globalpodcast@bbc.co.uk. You can also now watch our episodes in full.