lizzy: what about the bank of england?public confidence in the institution out a record low. how much of a credibility deficit is too much? michael: i think public dissatisfaction with the bank of england which you see in the surveys is really a function of high inflation. if inflation comes down, as i expect it will do over the coming year, the bank of england would be able to regain its popularity. for central banks, it's not a popularity contest. the important thing is that they do what's necessary in order to get inflation back to the 2% target. the bank of england i think has done the appropriate amount of tightening. the policy is now restrictive. the question is just holding out a restrictive stance for sufficiently long in order to get back to the 2% target. over time, the popularity will sort itself out. lizzy: i was interested in your comments recently that the tightening of u.k. migration roles are going to weigh on growth so much that they will leave the chancellor so little headroom, we might not be able to ma

is the bank of england, the ecb, the bank of england priced correctly, the fed priced correctly?cult to make the argument. i would go further out of the 10 year part of the curve. maybe for the ecb, bonds are closer to fair value, i would say. say we get recession on cuts. i would pushback a little against bonds. i think u.s. and u.k. probably still look more attractive. if you walk towards the path of resection, recession i think we get more aggressive cuts. alix: for the u.s.? we are already pricing in four or five. ella: sequencing short-term we would probably get some stabilization and potentially reprice hire in yields. further down the curve thinking towards iran for next year i would argue there is a greater risk we get 200 cuts or so and enter a recession. guy: thank you for coming to cs ella hoxha. we are counting you down to the fed and the ecb and bank of england tomorrow. alex is back and brought her sunglasses. apparently she is very light sensitive. i am not sure it is aki ito, -- jackie o or audrey hepburn. it could be the granny in madagascar i'm not sure. everybo

that is the exterior of the bank of england live as we wait for that decision to come in. the back of the us federal reserve voting yesterday to hold interest rates at a 22—year high for the third straight meeting. what was interesting was that policymakers signaled they expect to make three rate cuts next year. here's the federal reserve chairman jerome powell. as we approach the end of the year, it's natural to look back on the progress that has been made toward our dual mandate objectives. inflation has eased from its highs, and this has come without a significant increase in unemployment. that's very good news, but inflation is still too high. 0ngoing progress in bringing it down is not assured and the path forward is uncertain. as we look ahead to next year, i want to assure the american people that we're fully committed to returning inflation to our 2% goal. restoring price stability is essential to achieve a sustained period of strong labour market conditions that benefit all. since early last year, the fomc has significantly tightened the stance of monetary policy.

the bank of england will look back _ expectations. england will look back closely _ expectations. the bank of england will look back closely when - expectations. the bank of england will look back closely when they i will look back closely when they meet throughout the year for the they will decide when to cut interest rates. what do you think? when might we see that first cut? mi; when might we see that first cut? ij�*i view when might we see that first cut? m1 view is when might we see that first cut? m1: view is that we will get the first interest rate cut next august. financial markets disagree i'm comfortable with that, it's not always great to be amongst consensus. they think it will come earlier. i think it's a 50—50 chance... earlier. i think it's a 50-50 chance- - -_ earlier. i think it's a 50-50 chance... ~ i, i, earlier. i think it's a 50-50 chance... i, i, i, chance... we are going to cross to bristol crown _ chance... we are going to cross to bristol crown court _ chance... we are going to cross to bristol crown court for

join me as we break the bank of england decision at 12:00 gmt.hat is followed by the ecb decision time. we will have christine lagarde's pressor at 14:45 cet. busy day for me. >>> eu leaders are arriving for the final meeting of the year. top of the agenda is additional aid for ukraine. silvia joins us from brussels where she is joinings a key player in the discussion. this man has been dominating the headlines. you and i have spoken about him at length. tell us what he said, zsilvia. >> reporter: it is a busy day here in brussels, joulianna. we know this is an important subject for kyiv when they are struggling with the counteroffensive and imminent threat that u.s. support will come to an end and further pressure on the eu to deliver for ukraine. we know and we have been speaking about this through the week. so far, hungary is blocking the 50 billion euro disbursement to ukraine. speaking with the prime minister of hungary, it seems there is no change in position from budapest. i want to show you the remarks from the prime minister of hungary w

but clearly, neither the european central bank nor the bank of england got the memo.ft their rates on hold and said it was too early to talk about cutting them. in fact, here in the uk, three members of the bank of england monetary policy committee actually voted to raise the interest rate above its current level of 5.25%. the bank is worried that inflation — the rate that prices are rising — is still not under control. our economics editor faisal islam reports # last christmas, i gave you my heart...# liverpool's christmas market — the festive spirit is here, but little sign of a marked upturn in the economy. people here continuing to have to cope with new surges in the cost of living, even as inflation slows. i sold my car last week. car insurance had gone up, then i had the bank loan. it's everything, isn't it? wage increases, they're not in line with everything. to be honest, i've just i had my flat repossessed. so it has really affected us. the bank of england confirmed that interest rates will remain at the current 5.25% level for an extended period. inflation,

the bank of england workplace.ate at 5.25% for the third time in a row, amid signs of potential economic challenges . it comes as economic challenges. it comes as the monetary policy committee have previously raised the interest rate for 14 consecutive meetings until it reached a 15 year high of 5.25% at parliament's treasury committee last month, the bank's governor said the threat of uk inflation is being under estimated . two is being under estimated. two nurses from blackpool are facing prison sentences after they were found guilty of sedating patients . s 54 year found guilty of sedating patients. s 54 year old catherine hudson has been given seven years and two months for drugging patients during work shifts at blackpool, victoria hosphal shifts at blackpool, victoria hospital. the incidents occurred . between 2017 and 2018. her 48 year old colleague charlotte wilmot , was found guilty of wilmot, was found guilty of encouraging hudson to drug a patient and is sentenced to three years. a second probe into sout

the bank of england has _ happen with interest rates? england has been _ happen with interest rates? the bank of england has been trying _ happen with interest rates? the bank of england has been trying to - happen with interest rates? the bank of england has been trying to push i of england has been trying to push back on that narrative. as far as they're concerned, inflation is still too high in things like the service sector. coming into next year, inflation will continue to come down and maybe talking about a spring rate cut, maybe that is early. but by next summer inflation will be lower and the conditions will be lower and the conditions will be lower and the conditions will be there for the bank of england to start easing. well let's stay in the uk and talk about retail. this time of year is typically one of the busiest for retailers — november was a strong month, sales volumes were up 1.3% helped by those black friday promotions, however, it remains a very challenging time for the industry as we head into 2024, people grappling w

by this the bank of england.gnalling . i much lower than the bank of england is signalling. i think what's going on here is there's a credibility issue because the bank england and allowed in bank of england and allowed in inflation to go so high inflation to go so high inflation peaked at over 11% back in october last year. they have a bit of a credibility problem. they were slow to really get moving with raising interest rates to tackle inflation. so now maybe they're overdoing it looking like kind of hard nuts on inflation. and unbelievably, i didn't get to tell you last time because as you say, there were pneumatic drills surrounding me outside the bank england. emily, even the bank of england. emily, even with my big booming voice, i couldn't speak them, could couldn't speak over them, could i? but if you look at the minutes of the monetary policy committee, the nine economists at the bank of england who set interest rates eight times a year , the minutes are split six year, the minutes are split six three i

the european central bank and the bank of england have decided today to keep interest rates on hold. that follows a similar decision by the us federal reserve yesterday. the ecb says it has also cut its inflation outlook, forecasting that price rises would slow to 2.7% in 2024 and 2.1% in 2025. it has also projected that inflation will fall below the 2% target in 2026. here in the uk the governor of the bank of england put a bit of a dampener on any hopes they may be a uk rate cut anytime soon. it's coming... wait for it. it is to earl to it's coming... wait for it. it is to early to spectate _ it's coming... wait for it. it is to early to spectate by _ it's coming... wait for it. it is to early to spectate by cutting - early to spectate by cutting interest rates, we have to see more progress, i'm encouraged by the progress, i'm encouraged by the progress that we have seen but it is too early to start speculating that we will be cutting soon. weight it was worth waiting for. victoria scholar, head of investment, interactive investor we heard from the bank of england, let's talk about

to think it is fair to say that the bank of england has got a tough job?rding the boe, indeed we think it has a tricky task, especially because inflation is quite higher than the united states. even if the latest asia -- data has been encouraging. if we compare the latest inflation data from the eurozone and u.k., we are if i can say so closer to the 2% target with headline inflation at 2.4% in november. for the u.k. we are above to percent. the task of the boe will be much trickier than the one for the fed and ecb even if also for the u.k. we were quite worried by negative economic outlook and the u.k. economy is doing not that bad. lizzy: one last question on bank of japan because there is speculation it will move away from negative interest rates. this macro reality support that? helene: it is a tricky question because japan has lower inflation rates and the u.s., eurozone and u.k.. the inflation is not as much home-based as boj would like, so they are waiting for wages to be stronger to fuel have no inflation but it seems the direction is clear in the

following that bank of england decision.eople are wondering what is their level of conviction? is the level of inflation different in the u.s. versus the u.k., versus the euro area? is there something separate that makes some of them longer-lasting than the others? jonathan: let's compare. i think that is just the reality in the markets. if you believe the ecb was going to go first -- that was consensus for you yesterday. what are you looking for? what are the expectations a little bit later on? lisa: a lot of people, including some of our guests have said that they think they should probably just cut today because they are looking at a possible recession. tom: i would suggest one is the real economy. the other is the fiscal debt buildup in the u.s. and they really do not have that payoff that powell had just yesterday. jonathan: we will catch up with them in the next hour. rip roaring rally over the last month and it continues from new york city. morning. ♪ (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 3

an early christmas gift for the bank of england. uk inflation falls faster than expected in november. stormy waters — global shipping rates spike amid houthi attacks on ships in the red sea — we take a look at the impact on supply chains. and it's tiny and tasty — we talk to the boss of a caviar company — that says sales are booming despite the cost of living crisis... welcome to world business report, i'm ben thompson. we start here in the uk, because inflation is continuting to fall. annual consumer price inflation fell to 3.9% in november, that's down from 4.6% in october. it was a more substantial fall than economists had expected — thanks to a fall in the cost of items like bread and fuel. food is still 9% more expensive than a year ago. so, now all focus will shift to the bank of england and the debate over when it will start cutting interest rates. at the moment, they're at 5.25% and a quarter after successive rises to keep a lid on inflation. tell us what it means about the figures coming down and why. the market figures com

because after raising the cost of borrowing to its highest in 15 years, the bank of england has beenessage that it will stay there for the foreseeable future. the rate of price rises or inflation is still more than double the bank's 2% target. but financial markets are increasingly betting the bank will have to start cutting the cost of borrowing early next year as the economy weakens. that view was boosted on wednesday after growth figures came in worse than expected. here's our economics correspondent andy verity. it was one of the wettest october is on record, as a storm battered the coast flies involved towns in yorkshire, one of the biggest reasons why the economy shrank faster than most thought it would. as a shoppers cow would indoors, and across the economy, a little less was spent. in october, the value of goods and services produced, gross domestic product, shrank by 0.3%, a smaller drop in some in the pandemic. the monthly figures came with a health warning, they wobble around. over three months, there was no growth at all. that matches the series of companies like this us

any time soon. . ~' cut by the bank of england any time soon. . ~ i. cut by the bank of england any england any time soon. . ~ i. �* 1, soon. thank you, ben boulos. the leader of hamas _ soon. thank you, ben boulos. the leader of hamas has _ soon. thank you, ben boulos. the leader of hamas has arrived - soon. thank you, ben boulos. the leader of hamas has arrived in - leader of hamas has arrived in cairo. hamas has said it will not negotiate an exchange of prisoners as long as the israeli military operation continues in gaza. israel has indicated it's willing to agree to another pause in fighting in exchange for more hostages. meanwhile, the un delays for the second time a vote on a resolution calling for a cessation in fighting in the gaza strip. language in the resolution still stands in the way, with the un having to compromise for a �*suspension�* of hostilities. that's watered down from the original, stronger call for a ceasefire in the original draft. the us has vetoed the previous resolutions. here's white house national security spokesmanjohn kirby. i don't have an update fo

let's not forget the bank of england. we heard from governor andrew bailey. >> the goal is to achieve the 2% inflation target, sustainably. inflation has come down from 11% to just over 4.5%. but it will come down further. we have to achieve it sustainably. i am encouraged by where we are, but we have more to do to get to that target. that's what we will do. lizzy: in reality, whatever andrew bailey says, do you think a fed pivot will give the bank of england the confidence to cut sooner than thought? >> it definitely gives the doves ammunition that they have been fighting for. there are policymakers within the community. for them, the fed ammunition provides them some quota. how much room does bailey and his policy committee have? you have headline inflation, services inflation running at 4%. the economy is losing momentum. he is caught between a rock and a hard place. on one hand, they cannot raise rates anymore. on the other hand, they can't run to the help of the economy, even if the economy weakens, it's persistently

the bank of england has decided to hold interest rates at 5.25%. that is the third time in a row that the bank has kept rates where they are. it is the highest level for 15 years. our economic correspondence reports on what people in liverpool think. christmas market in liverpool, some are trying their best not to think about the money. the price is a bit high but i think, yeah, christmas, still... can afford to treat myself and my family a little bit. oh, it's tough times, isn't it? but i think at christmas, you've just got to try and splash out and have a good time and enjoy the season. but others have hit a crunch point. i sold my car last week, - thinking the cost of travelling from southport to liverpool, it would be cheaper for me l to go on the train. ijust had my flat repossessed, so it has really affected us. and it is that to do with the interest rate payments just going up? yeah, yeah. if you're going into debt to get through an expensive time of year, it's the bank of england's official interest rate that sets a floor on the minimum int

the bank of england governor said there _ time, the bank of england governor said there are still someon, we will take the decisions necessary to get cpi all the way— decisions necessary to get cpi all the way back to 2%. it's well above 4% at— the way back to 2%. it's well above 4% at the _ the way back to 2%. it's well above 4% at the moment. in recent months it was— 4% at the moment. in recent months it was as _ 4% at the moment. in recent months it was as high as 11%. so it has fallen— it was as high as 11%. so it has fallen some way, is followed by more than half. _ fallen some way, is followed by more than half, but it needs to fall by more _ than half, but it needs to fall by more than — than half, but it needs to fall by more than half yet again to get under— more than half yet again to get under the — more than half yet again to get under the bank of england's target of 2%. _ under the bank of england's target of 2%, between zero and 2%. so that's— of 2%, between zero and 2%. so that'sjust — of 2%, between zero and 2%. so that's just a _ of 2%, between zero and 2%. so that'sju

bank of england.0 is down .30%. basic resources is the sector under pressure which is impacting the ftse 100. in terms of foreign chexchange, this is the picture. we are trading sideways. the euro is 107.60. the pound is firmer against the u.s. dollar. 125.60. a lot of focus on the yen. dollar/yen is .80% stronger. dollar is firmer over the yen. that is breaking the trend from last week. we got strong moves in the yen on expectations into the bank of japan meeting on december 19th. they may look away from negative interest rate policy. over the weekend, some of the he can pecexpectations were damped. that's why the yen is losing the gains it saw at the end of the week. >>> over in fixed income, we are seeing not a lot of movement today. yields are trading sideways or stronger. we have ten-year franc at 10.2. we rallied a bit. the theme is fixed income as we saw the u.s. yield market come off on friday after the nfp print. european yields did come up in sympathy. as we have been talking about the last

this chart shows you the bank of england's official interest rate. since december �*21. and on the red line here, it shows you what the city thinks is going to happen. they are predicting that rates have peaked already at 5.25% and are going to drop in the coming year by up to i%. people's lifestyle is adjusted around having a cheap mortgage and the problem is, mortgages are not cheap now. yes, next year, hopefully they will be a bit cheaper than what people are paying now but comparatively speaking, it's still going to be very expensive for people. the big decision people are going to be having to make is do they consider may be a two—year fixed rate or do they consider a five—year rate or maybe a two—year tracker. they are the three most popular types of rates out there. higher interest rates are likely to mean that savings accounts may grow faster than prices for the first time in years, but partly because of the squeeze on borrowers, the bank of england expects the economy as a whole to stay flat in the months to come, making 2020 for a year of s

the bank of england is feeling like an outlier. it does not have this dramatic inflation drop that other central banks are experiencing as a result of which it almost has to sound more hawkish. >> it is in a different position. as long as the central bank is focused, it is going to be -- it is going to have to be hawkish. you can see a shift if the bank of england talks more about the forecast. we have seen the fed make that transition, so they have said, if we wait until inflation is at 2% it will be too late. if the bank of england start doing that, that is what everybody likes. alix: what did you make of the fact that christine lagarde did not push back on market pricing for rate cuts next year? some say it is a missed opportunity. she did not take that bait. maria: she knew this would be a difficult press conference. this is coming 24 hours after the fed and you saw that priced in and the expectation for cuts at the start of the morning. she knew this was going to be the main topic and in the statement it was clear to some exte

to the uk now — where the bank of england has warned the full effect of rising interest rates has yet and businesses are coping so far. in its latest financial stability report — the bank says five million households have seen their mortgage payments jump already — and another 5 million will face a rise by 2026. some have fallen behind on payments but it doesn't expect the problem to reach the record levels seen in 2008. the fuller effect of interest rates being high is yet to come through, we remain vigilant of financial stability risk that might arise. so far uk households and businesses as a whole the to the impact of high and more volatile rate stop focusing specifically on households, finance has remained stretched by the high cost of, as part of this effect, mortgage debt servicing permits have risen and will continue to do so over the coming year. we have also seen an increase in arrears for borrowers, this applies to own by and buy to let mortgage arrears as well as unsecured consumer credit. some buy to let landlords have passed on the higher cost to renters, however, in spit

what do you make of all that? if bank of england is moving. what do you make of all that?ou look at things _ do you make of all that? if you look at things in _ do you make of all that? if you look at things in a _ do you make of all that? if you look at things in a global - look at things in a global rate, you can see exactly the same story playing out in the us as well as europe. what we are seeing globally is inflationary pressures have eased because some of the excess demand and like of inaudible that we had two or three years ago after the covid shutdown has been reversed on top of that, we've also had the effect of the increase in interest rates. so, it's no surprise that inflation rates are coming and in fact, if you dig into the numbers, what you see is that it's actually been more on the goods rather than the services side where you've seen that trains bought costs down, reflecting fuel prices and we've also had food inflation which is been a bit low. food prices not rising quite the same rate so if you look at that context, the question really is, what is inflati

and the bank of england. israel says it strongly criticized quote dangerous cooperation between russia and iran, as vladimir putin and benjamin netanyahu hold talks. the u.s. vetoed a un security council resolution calling for ceasefire in gaza. it's just gone 6:30 a.m. in london. it's a very big week for economic data and for central bank decisions. if we look at futures, pointing in opposite directions in the u.s. and europe, but not a lot of movement on either side. hard to beat the end of last week for the s&p 500, the highest close of the year to end its longest winning streak since november 2019. six weeks of gains. this is off the back of that strong u.s. jobs report friday boosting equities, because consumer resilience is good for corporate america. the flipside was for treasuries, it meant this unwinding of the massive dovish trade that had pointed to a fed pivot as soon as march. swap contracts now show a 40% chance of that, down from 50% before the report, therefore you saw a 13 basis point increas

what about the bank of encland, rates. what about the bank of england, there _ rates.england, there is _ rates. what about the bank of england, there is a _ rates. what about the bank of england, there is a decision i england, there is a decision coming up. uk inflation compared to the eurozone and the us is stubbornly high. it is higher, yes. us inflation around 3% and we have god the uk that make europe at 2% and the uk at 4% or 5% so yes, it is higher. we have more influence, our input costs are higher, our energy costs are higher, our energy costs are higher so it is more stubborn here and so we are seeing interest rates likely to remain higher for longer interest rates likely to remain higherfor longer in the uk. we higher for longer in the uk. we were 'ust higher for longer in the uk. we were just hearing quickly from stephen about the world watching as to what comes out of these figures from the us. just how key are they for for example the uk and the eurozone? i example the uk and the eurozone?— example the uk and the eurozone? ~' ,, ., , eurozone? i think the

make no mistake, 3.9% is still way above the bank of england's target.g cut by the bank of england any time soon. ben boulos. aus a usjudge has ordered the release of the names of more than 150 people linked to the american financier and sex offenderjeffrey epstein, including victims, associates and suspected accomplices. court documents containing the identities of part of a subtle civil lawsuit brought against epstein's former girlfriend ghislaine maxwell who were sentenced last year to 20 years in prison on a sex trafficking and other charges. those named have untiljanuary one to appeal. polls have opened in elections in the democratic republic of the congo, despite some calls for the elections to be postponed amid fears about security in some areas. president felix tshisekedi is seeking a second term in office with another 18 candidates vying to replace him. let's get the latest on the pollen with our correspondent in the drc emery makumeno. talk us through the security concerns. the security concern here is one of the biggest issues. the country has

bank of england should exist, or whether the bank of england sh least exist, or whether the bank ofpendent, or whether the bank of england sh l government.idependent , or whether the bank of england sh l government. wellindent , or whether the bank of england sh l government. well people or the government. well people are asking that question. the government. well people are askwell, at question. the government. well people are askwell, at qu> well, well, gordon brown made them independent of the government. he said, give them power kind of power and all that kind of stuff. and then it worked all right. for about then the first couple of um, couple of labour, um, administrations it got administrations and then it got completely out control. and completely out of control. and the last two bank england the last two bank of england governors have been hopeless. they seen the signs. they haven't seen the signs. >> i always shocked >> i always seem shocked when inflation goes up and when inflation goes up and when inflation down. inflation goes down. >> let's give pol

some of the market pricing is expecting a rate cut in the bank of england as early as february or marchext year istone deaf. the bank is taking a cautious approach and you want to see how the april print plays out. it will be too early for the may print. i'm sticking to august for the first rate cut. >> how much of the fall the or drop in inflation is down to base effects and what we are seeing in food and energy ? >> it is a big issue. the contrast with the u.s. and ecb with the energy route wasn't seen until the back end of 2022. we don't get peak disinflation -- the print we got yesterday, december and january as well, will start to decompose uk inflation. the food component is interesting rising at 10%. if you look at ppi, but the world soft commodity index shows disfl disinflation to come. to the question of can we get to 2%, food will help that. >> how much credit should the government get for getting inflation to where it is yesterday? >> very little. >> they have taken credit for it. >> surely. why not get some justified credit on the way down. >> fair new. let us talk about the

the bank of england has held interest rates at 5.25% — the third time in a row the bank has kept ratesion leaves borrowing costs at their highest level for 15 years. our economics editor, faisal islam, is here with me. what is the thinking behind this, and when will rates come down? yes. and when will rates come down? yes, well, we and when will rates come down? yes, well. we heard _ and when will rates come down? yes, well, we heard from _ and when will rates come down? yes, well, we heard from the _ and when will rates come down? ye: well, we heard from the bank of england governor today that he felt that it was too early to speculate even about when rates would come down. we have heard that before, we had a hold before too. what is difference now is that international counterparts, particularly in the usa, have started to talk about when rates could be cut, when the anti—infl? 7 medicine, rates could be cut, when the anti—infl?? medicine, there may be enoughin anti—infl?? medicine, there may be enough in the system, and international markets where they essentially bet on what will h

, calling the governor of the england my old the bank of england.anyway this is a story. my panel weren't so keen on. they about they wanted to talk about scottish taxation, but i wanted to about the last will and to talk about the last will and testament individual testament of every individual who has since 1858 is kept who has died since 1858 is kept by court . these are by the high court. these are documents that provide acres of information about people's lives, and desires. lives, possessions and desires. now government , lives, possessions and desires. now government, his now the government, his majesty's government, wants to destroy the originals merely destroy the originals and merely keep a digitised copy, unless it's the will of somebody famous . this act of vandalism is proposed because the storage cost amounts to £45 million per annum. surely it's important to keep the real record of what has gone before, rather than risk it decaying in the aethereal data world or losing that physical, tangible link with our forebears . now, tessa, you'

of course, the major week coming up with the central banks with the bank of univof england on t and the norges and then the fed meeting tomorrow. a lot to watch out for in the next couple days. let's go back to the uk wage data. held steady at 4.2% in october for the official figures. average earnings, including bonus, grew by 7.2% over the last quarter coming in lower than the market expectations. i'm happy to say we have our analyst from citi here at the desk. good to see you. >> good morning. >> let's start with the uk market. gilts are rallying ten basis points. it is quite pronounced and significant in the context of the wage numbers still being quite high. we are still sitting at north of 7%. i guess at this point, the market is trying to jump ahead of what the bank of england may do in response to the numbers. there are only 80 basis points baked in? >> with the most recent data, it is clear that the bank of england and other central banks are done with rate hikes. now investors are focused on the next step and how quickly can the central banks cut rates? for the bank of england,

including the european central bank and the bank of england. decided to keep interest rates on hold. this follows a similar decision from the us federal reserve wednesday. the ecb also cut it's inflation outlook for the next two years forecasting price rises would slow to 2.7% in 2024 and 2.1% in 2025. it's also projected inflation to fall below the bank's 2 percent target in 2026 at i.9%. here in the uk, the governor of the bank of england, andrew bailey, put a bit of a damper on any hope for a uk rate cut any time soon. at the moment, it is really to early to start speculating about cutting interest rates. we have to see more progress. i am encouraged by the progress we have seen, don't get me wrong, i am very encouraged by the progress we have seen. but it's too early to start speculating that we will be cutting soon. to early for speculation. earlier i put that to victoria scholar is head of investment at interactive investor. the uk money markets, they are anticipating rate cuts next year but not untiljune, that is when the first rate cut is pencilled in. that was actually pushe

are these central banks, bank of england, etc.oing to be pushing back harder, changing that chart significantly? christine lagarde up next week, she has recovered from covid. back already to talk to the market. what is she going to say? the market is priced in a great deal of cuts. it is quite likely we are going to see inflation spiking backup. that does create risk because they are withdrawing energy support measures. she has had recently they expect to keep rates where they are the next couple of quarters. i expect they are going to that messaging. >> i guess it becomes a question of whether or not the market buys that or it is going to keep doing what it thinks it is going to -- what it believes they are going to do versus what they say they are going to do. >> yeah, the key thing is getting the message across, isn't it? they are going to have to, both the ecb and bank are going to have to make pretty firm statements. they have a this already. guy: haven't they been doing this already? what are they going to change this week t

it is lower than what the bank of england was expecting.ore next year. on the other hand, we're are talking about the near-term, november, december, 4.3, 4.2. the bank of england target is 2% we need to see continued progress. near-term data may be different, let's say 3%. it is that final stretch from 3% to 2% that is harder to achieve. alix: service inflation has not rolled over. what is the stickiest bit? liz: it is across the board, really. there is bits of inflation that have come down. that is largely the events that are indirectly affected by energy, but this is affected by demand for services in the economy. it is been true post-pandemic that we have been buying -- stop buying things to hold and become more interested in going out. demand has held out. that is cap service inflation higher. wages drive two thirds of these costs on average. guy: how carefully are you keeping an eye on what is happening with global shipping? what the panama canal and the red sea of got problems. however risk are we of another shot? -- shock? liz: it is

, calling the governor of the england my old the bank of england.ng. anyway this is a story. my panel weren't so keen on. they about they wanted to talk about scottish taxation, but i wanted to about the last will and to talk about the last will and testament individual testament of every individual who has since 1858 is kept who has died since 1858 is kept by court . these are by the high court. these are documents that provide acres of information about people's lives, and desires. lives, possessions and desires. now government , lives, possessions and desires. now government, his now the government, his majesty's government, wants to destroy the originals merely destroy the originals and merely keep a digitised copy, unless it's the will of somebody famous . this act of vandalism is proposed because the storage cost amounts to £45 million per annum. surely it's important to keep the real record of what has gone before, rather than risk it decaying in the aethereal data world or losing that physical, tangible link with our forebears . now, tessa,

and part of that is down to 1a bank of england rate rises slowing the economy.onsider more rate cuts more quickly. the bank itself is waiting to see if wage rises calm in the new year. and faisal is here now. on that point about wages, the government's sent out a very clear message tonight? yes, tonight several government ministers have written to the pay review bodies, the bodies that advise on the pay rises next year for about 2.5 million public sector workers, nurses, teachers, doctors, police officers, the military, and used a form of words i haven't seen before. they said that those pay review bodies should take into account the historic highs in the wage deals done this year. that seems to be a clear indication that they shouldn't be repeated next year for the some unions think this is an indication that they might get 2% or below the union say that this has come so late in the day we are not going to be able to agree a deal before they are supposed to start in april and others say the whole process is no longer independent, and this was a key bone of cont

we've seen the bank of england warning about the risk for u.k.als as a lot of banking institutions are deploying ai for customer service, fraud detection, data analysis. these use ai but the more you give those tools to artificial intelligence, you need to have human oversight because you can pose serious risk if those things become out of people's hands and those decisions, who is culpable becomes unclear. that is part of it and something i look at a lot in berlin is cybersecurity. how cyber hacks have become more capable because of utilization of artificial intelligence to make targeted attacks on particular actors. that is something businesses are concerned about because as attacks become more advanced and accurate they are going to be easy for people to click on a false link or something else in their emails. kriti: something that is very scary when we talk about major parts of the world. on the one side where it is scary you should have the positive aspect of ai. larry fink says it could be the solution to labor problems. two sides of the co

of england will bet is the bank of england will be able to cut five times next year to bring interestn to a% and should start from late spring onwards, we will see a lot of progress with inflation in early next year. 0k, inflation in early next year. ok, that's encouraging but in terms of the economic growth which is what the government wants, especially in a year when they're trying to win over potential voters, what do you think the outlook is for the uk economy next year? i think the outlook is for the uk economy next year?— think the outlook is for the uk economy next year? i think we will see, unfortunately, - economy next year? i think we will see, unfortunately, more. will see, unfortunately, more stagnation through the first autumn of next year and things should start to pick up from spring onwards in anticipation of those interest rate cuts, what people may already know is that the offered mortgage rates by banks have come down already, in anticipation of interest rate cuts next year, the market is now betting on for interest rate cuts next year and the mortgage market is eas

the ecb and bank of england are still pushing against an early cut.hink if all of the three were cut except norges bank, is to trend the two-year and seven-year sector. the market is pricing interest rates staying higher for longer. a lot of people are thinking the inflation would be harder. without any intellectual evidence, believe it. if inflation falls to 2% or lower, and the rate would go much lower. >> we had the eurozone pmi come through which is disappointing. muted activity. we had chris williamson on. he said the numbers suggest the eurozone economic back drop is contra contr contractionary. at what point will the ecb make some policy pivot? >> i think probably q2 next year. i said central bank policy is difficult. i say forward road is the best. if you look at the u.s., gdp is close to pre-pandemic trend. eurozone is far below. if the inflation falls to 2% next year and the growth is below potential, i just use the simple rule. i think it will be 2% or lower. >> let me round the discussion with the btp. we had the announcement that it will

moving the bank of england moving on. england are their interest rate are making their interest rate decision afternoon decision this afternoon at midday the last moments, midday in the last few moments, rishi speaking to rishi sunak has been speaking to reporters academy rishi sunak has been speaking to re|finchley. academy in finchley. >> and because i think >> and that's because i think education is the best way we have to transform people's lives. very lives. something i'm very passionate fact, the passionate about. in fact, the reason politics. the reason i got into politics. the great we're making real great news is we're making real progress now. almost 90% of schools are rated good or outstanding. got record outstanding. we've got record numbers and we saw numbers of teachers, and we saw just last week in the international tables, international league tables, the uk, marching those uk, england marching up those tables of reforms tables because of the reforms that we've made, which is very positive. building on tha

many households aren'tjust facing higher interest rates from the bank of england.arger chunk of their wages, leaving them less to spend on everything else. the corner the numbers showed that's been turned today is that instead of growing, the economy is actually shrinking and that has a real world impact because that means less money in the pockets of ordinary families, less investment opportunities for business. and the truth is that the conservatives are holding our economy back and as a result, people are worse off. for now, the economic headwinds remain fierce, with households buffeted by higher bills, higher taxes and 1a rises in interest rates in a row. few in the city now expect the bank of england to play scrooge before christmas with another one. andy verity, bbc news. as israel faces growing diplomatic pressure over its handling of conflict with hamas, its defence forces say they have carried out another 250 in gaza over the past day. last night the un general assembly voted overwhelmingly in favour of an immediate ceasefire in gaza. and us presidentjoe b

all of that coming from the bank of england at 10:30 a.m.. hear from the governor at 11:00 a.m., unlikely to tell us when he wants to cut interest rates i'm sure i colleagues will try to get him to tell us anyway. it's a busy day for lots of other things later. 7:00 a.m. we are going to hear from british american tobacco. they will bring us some results. investors keen to know what the lucky strike maker plans to do with its expected annual free cash flow. $3.9 billion they've got. bloomberg intelligence reckons that money could be put into share buybacks and smaller acquisitions in the smoke-free product space. the markets today team will take you through that i am sure next. later in the day you have ceos of the u.s. big banks heading to capitol hill for the annual oversight hearing. stay with us for a preview of what we might hear from them. i'm going to leave you in the safe and capable hands of mark and tom. this is bloomberg. ♪

even though rates have been kept on hold today, the bank of england have pointed out that about halfage points in total, are yet to filter out across the economy. and that might explain why, despite all those rate rises, the impact on the economy, on the housing market especially, has been softer than expected. despite the bank of england's words, mortgage brokers such as david are now seeing that fixed mortgage rates are starting to fall. santander, halifax, barclays. .. homeowners facing massive interest rate hikes have been lengthening the term of their mortgages, cushioning the blow short term. what they're doing is they're even borrowing slightly less than previous or looking at the term if they've got an existing mortgage. so when we come to remortgage it, they may take a longer term... how much longer? anywhere kind of 10, 15 years, depending on the age. inflation is falling, but the economy is not growing, and the turning point remains elusive. faisal islam, bbc news, in liverpool. a nurse who drugged patients on a stroke unit for an easy shift, and a health care worker who c

it's specifically up to the bank of england and also the bank of england's target is 2.we're still nearly double that . but still nearly double that. but the government are saying, i think with some justification, that decisions they have made have helped to bring it down. >> okay. well, as, as the spirit of christmas is in the air, let's give them a little benefit of the doubt. it was one of rishi's five pledges for the year. rishi's five pledges for the year . how rishi's five pledges for the year. how about we have an end of year round up? how is he getting on of tackling all five of them? >> let's mark his homework, shall that one we shall we? yes. so that one we can tick. he's got that. the next one is growing the economy . next one is growing the economy. well, about a year ago we were forecast to go into a long recession that hasn't happened, but the economy has been flat. this year went down slightly last month, but basically no growth forecast to grow by only nought point seven next year. so one point or half a point rate rise . i wouldn't give him a rise. i wou

of england.rs crossed, in the meantime, however, it is going to feel a bit of a hard slog for some.- of a hard slog for some. many thanks, of a hard slog for some. many thanks. our— of a hard slog for some. many thanks, our chief _ of a hard slog for some. many thanks, our chief economics i thanks, our chief economics correspondent dharshini david there. patients are being warned to expect major disruption in england afterjunior doctors began further strike action in their ongoing dispute over pay. nhs strike action has already seen more than a million appointments and treatments cancelled this year. the stoppage started at 7am this morning and will last for three days until 7am on saturday, with senior doctors drafted in to provide emergency cover. this latest walk—out will be followed by a six—day strike injanuary, the longest in nhs history. it comes after talks between the british medical association and government broke down, earlier this month. our health correspondent sharon barbour report

well, the bank of england has been trying to push back on that narrative.y're concerned, inflation is still way too high, particularly if you look at some of the bits really closely like the service sector. but i think as we come into next year, inflation is going to continue to come down quite quickly. you know, maybe talking about a spring rate cut, maybe that's a little bit early. but i think by next summer, inflation will be a lot lower and the conditions are there for the bank of england to start easing. well, let's stay in the uk and talk about retail. this time of year is typically one of the busiest for retailers — november was a strong month, sales volumes were up 1.3% helped by those black friday promotions. however, it remains a very challenging time for the industry as we head into 2024, people grappling with higher costs else where and perhaps not spending it on the shops as much. paul martin is the uk head of retail at advisory firm kpmg and a board member of the retail think tank. the novemberfigures were better than expected. but let's not f

the european central bank and the bank of england have both decided to keep interest rates on hold.rest rates have been kept at 5.25% for the third time in a row. the bank of england governor suggested it was too early to say when rates could be cut. you're live with bbc news. let's head to australia now, where a state memorial for barry humphries is going to be held at the sydney opera house in less than an hour's time. the australian entertainer passed away in sydney back in april, at the age of 89, following a celebrated seven—decade global career. he was known for his iconic characters including dame edna everage and sir les patterson, as well as being a renowned actor, poet, musician and artist. live now to our correspondent phil mercer, who is outside sydney's opera house where the memorial is being held. great to see you. what can we expect from this memorial service?— from this memorial service? family members, dignitaries _ from this memorial service? family members, dignitaries and - from this memorial service? familyi members, dignitaries and hundreds from this memorial s

bank of been too slow to cut the bank of england's always behind .nd. >> and yesterday's news will be revised. whatever happens, that will that will not be the figure that we've had a terrible track record of revisions to gdp . so record of revisions to gdp. so you really know where you you don't really know where you stand with one. >> no, but it's not great >> no, but it's not a great trend, last three trend, is it? the last three months is zero. the last month is —0.3. i mean it's heading south, not north. jacob but we've revisions. >> we keep on told >> so we keep on being told we're bottom of the list of g7 nations. two years nations. and then two years later find out actually, we later you find out actually, we were near the top. so i wouldn't worry too much about those. >> i'm anxious, you're >> i'm anxious, but you're obviously coming up obviously not. what's coming up on what i'm going to be talking >> what i'm going to be talking aboutis >> what i'm going to be talking about is extraordinary performance by the chief executive of aviva. some

and part of that is down to 14 bank of england rate rises slowing the economy.r the bank to put that into reverse and consider more rate cuts more quickly in the new year. faisal islam, bbc news. food still remains a lot more expensive than it was two years ago, about 25% up. so what impact will that have on the cost of christmas dinner, with the big day next week? our cost of living correspondent coletta smith has been finding out. two packs of ten, please, yeah. and then change the turkey breast to two kilos. joe's making a last—minute adjustment to his christmas dinner shopping list, with a few extra guests coming over. six adults, two kids. so i'm hoping three meats is enough, and we'll feed them all, yeah. i guess everyone�*s conscious of the price of everything, aren't they? yeah, i've tried to put it to the side and not think about it, it's one time of the year, isn't it? let's start with the good news, shall we? stuffing and sprouts have actually fallen in price this year, but everything else has gone up. i'll see you soon, bye. the biggest price increas

in the next few minutes the bank of england will announce its latest decision over whether to hold interest rates for the third time in a row. could local hubs provide a real alternative to the daily commute? we're going to look closer at what this means for the economy and for you. markets will look for any hint and find they may start. policymakers inside the american federal reserve say interest rates are at a peak and going so far as to signal three possible rate cuts next year. fed chairjerome powell suggested as much. as we approach the end of the year, it's natural to look back on the progress that has been made toward our dual mandate objectives. inflation has eased from its highs, and this has come without a significant increase in unemployment. these are things we want to see. why might the rate hiking cycle has included 11 increases. government data showed inflation dropped from 9.1% in mid-2022 to 3.1% in november. that is above the target of 2% and jerome powell cautioned the committee had not ruled out raising rates again in the future. for wall street the dowjones internation