and for most, a decent south—east and for most, a decent day with sunny spells and feeling warmer. goodbye. he says it plans to carry out a missile strikes on on guam. north korea best not make any more threats to the united states. they will be met with fire and fury like the world has never seen. they are looking at making enveloping fires around areas on guam. a car is driven at soldiers in paris. 500 new medical school places will be made available in england next year,

as the government attempts to boost the number of home—grown doctors in the nhs. ten yea rs ten years since the global economic system ten years since the global economic syste m we nt ten years since the global economic system went into meltdown. we will have a look at the repercussions. police in scotland have warned tourists not to visit the isle of skye without a reservation, after an influx of visitors left its services at breaking point. athletics chiefs have been criticised for denying a medal favourite entry to the london stadium amid concerns over an outbreak of norovirus. good morning. it's wednesday 9th august. welcome to bbc newsroom live. north korea has said it is considering carrying out missile strikes on the us pacific territory of guam.

the report in state media, quoting an earlier military statement, came hours after president donald trump threatened north korea with "fire and fury". guam is a small island in the pacific ocean — where us strategic bombers are based. north korea's official state news agency said it was considering a plan to fire medium—to—long—range rockets. the exchanges mark a sharp rise in rhetoric between the two countries. suzanne kianpour reports. north korea best not make any more threats to the united states. they will be met with fire and fury like the world has never seen. unprecedented language from an american president. donald trump officially escalated the us stand—off with north korea from his perch on a working vacation at his golf course in newjersey. the trigger? a report by us intelligence officials saying pyongyang has produced a nuclear warhead small enough to fit inside its missiles — that much closer to the capability of striking the united states.

the president's angry response could throw a wrench into hopes of a diplomatic resolution. after a rare unanimous vote in the un security council to slap strong sanctions on the regime — a move meant to bring north korea to the table. north korean state news says kim jong—un is already weighing a plan to strike the us pacific territory of guam which appears to have been in place before mr trump's remarks. president trump often criticised his predecessor, barack obama, for not sticking to his red lines in foreign policy when he was here in the white house, but now, mr trump has drawn a red line with harsh new rhetoric. the question is — what happens if north korea crosses it? we hope to have the latest from korea a little later in the hour. 500 new medical school places

will be made available in england next year, as the government attempts to boost the number of home—grown doctors in the nhs. the target is to increase the total number of training places by a quarter by 2020, to help ease staffing pressures. the british medical association says it won't address the immediate shortage of medics. jessica parker reports. more doctors, home—grown. the government has given more detail today on what it says will be the biggest ever expansion of the medical workforce in england. what we're doing is ensuring that we train enough home—grown doctors so the nhs becomes self—sufficient in doctors over the period of the next ten years or so and we think that that's the best way to ensure that we have the doctors we need for the future. next year, an extra 500 medical school places will be made available. by 2020, that number will grow to 1,500, representing a 25% increase in yearly intake overall.

and medical schools will have to win many of those extra places by showing that they can get graduates to work in rural or coastal areas, where recruitment os more of a struggle, and by bringing in trainees from diverse and disadvantaged backgrounds. we welcome the government's approach, looking at how they can get more people from poorer backgrounds to study medicine. it's something which the bma has been talking about for many years, but there are lots of questions about how these medical school places are going to be funded and how the government is going to tackle the immediate recruitment and retention crisis of doctors in the nhs. this is all part of wider plans to create thousands more training places for nurses, midwives and health professionals. the labour party says it doesn't add up to any significant new investment. but, ultimately, it will be patients who decide whether this extra dose of doctors proves to be an effective medicine. six french soldiers have been hurt, two of them seriously, after a car drove into them and then sped off. police say a hunt for the driver and the car is underway.

the incident happened in the parisian suburb of levallois—perret, west of the city. the local mayor says he has "no doubt" it was a deliberate act. 0ur correspondentjonny dymond is at the scene now. what can you tell us about what happened? we are starting to piece together the detail of what happened here two or three hours ago in this north—western suburb about 50 minutes drive from the arc de triomphe. the car and driver went against the flow of traffic on one of the streets behind me and crashed into a of the streets behind me and crashed intoa group of the streets behind me and crashed into a group of around a dozen soldiers who were on patrol, part of what is called operation sentinel, a counterterrorism operation that has beenin counterterrorism operation that has been in place ever since the attack on charlie had built. —— hebdo. to

have been injured seriously and that isa have been injured seriously and that is a third that one might have been injured. the driver and vehicle themselves and nowhere to be found. that is on boeing organisation —— and ongoing operation to try to find the driver and the vehicle and behind me there is a very heavy police and military presence, soldiers heavily armed keeping control of the area. at the moment the hunt is on for the perpetrator and a vehicle and that is little detail yet apart from the fact that the prosecutor ‘s office in paris has opened a counterterrorism operation and the mayor this neighbourhood has said it is undoubtedly a terror operation. do they have much detail on whether there was one person are more than one person inside the vehicle and on

the vehicle itself? not much detail on the person or people inside the vehicle. there is word it was a bmw but i have had no official confirmation from the authorities yet. as is always the case in these situations in the hours immediately after was that is off a lot of rumourand after was that is off a lot of rumour and gossip. we had a rumour subsequently confirmed that a vehicle had been stopped which is not the case as far as the authorities are concerned. bits and pieces of information are starting to come out about what happened here about three hours ago but at the moment we're pretty much in the realms of speculation. what we do know is that around three hours ago vehicle went against the slow traffic and crashed into a group of soldiers and injure them, two of them seriously and as far as the authorities were concerned this was authorities were concerned this was a planned terror attack against the military. this is not the first time

that people protecting people because of security threat in france have been attacked. farfrom because of security threat in france have been attacked. far from the first time. you have to realise that the military serve to roles in the rather high profile patrols. you go round big train stations and partners are really in every people gather and you will see the military out in force. they have two roles, to reassure visitors to the city there is a presence and they try to deter those who might wish to attack citizens are visitors. but that does mean these people, the military and police in these high profile areas become a target and they have been chosen as targets by those making these attacks. this looks very much as if it is the fifth or such attack on the police and military since operation sentinel was set up and i think there is a degree of

resignation. the is always shop in these attacks happened but that is a degree of resignation. it is impossible in an open society such as france to stop an attack like this. it is the nature of an open and democratic place a bid of resignation. it is impossible in an open society such as france to stop an attack like this. it is the nature of an open and democratic place people can by the large media presence here and the gathering of residents were looking and trying to find out what happened and no doubt amongst the french and visitors to the country and the city. athletics chiefs have been criticised for denying a medal favourite entry to the london stadium amid concerns over an outbreak of norovirus. around 30 athletes and support staff have been affected by sickness at the world championships, but only botswana's isaac makwala has been prevented from competing, as andy swiss reports. as wayde van niekerk charged to the 400 metres title, the first gold of a potential double at these championships, much of the focus was still on his absent challenger. isaac makwala was told he couldn't

compete after his sickness because organisers had to protect the welfare of the athletes, but his botswanan team were left frustrated. we respect the decision if it is based on public health issues, however, it is the manner in which this decision was arrived at which is quite disturbing and, as we have indicated, this matter has been approached in dribs and drabs. we feel very sorry for the athletes that have to be withdrawn from the competition, but we have a responsibility for all of the athletes and if we allowed them all to sit, it's a tight close community and we need to make sure that all of the athletes are protected as well. meanwhile, britain's medal near misses continue, despite the performance of kyle langford's life. bronze just eluding him in the 800 metres by an agonising

400ths of a second. and among today's highlights is the return of mo farah as he goes in the heats of the 5,000 metres. he's still the british team's only medallist here and it's now half—way through the championships. early results from kenya's presidential election indicate that the current president uhuru kenyatta has a strong lead over opposition leader raila 0dinga the country's election commission says that with nearly 90% of votes counted, mr kenyatta currently stands on 54%. however, the opposition coalition has rejected the figures, and has accused election officials of publishing fake results. mr 0dinga told a news conference in nairobi that the election authorities had not presented documents verifying the results from voting machines. the system has failed. it is the machine that is voting. we therefore reject all the results decreed so

farand reject all the results decreed so far and demand that the ibc produces information from all voting stations. the voting process has been quite calm and peaceful so to start speculating about violence is quite earlier. this election is happening ten years after the violence we were speaking about so a lot has changed since then. this election has been done with the new constitution and there has been a lot of key reforms being done in terms ofjudiciary lot of key reforms being done in terms of judiciary and lot of key reforms being done in terms ofjudiciary and electoral commission itself. that is a lot that has been done. it is a bit early to start speculating about violence but of course it all depends on how the losers will accept the final results. we will have the latest on the kenyan

elections a little later. five suspects of the hillsborough disaster are due to make their first court appearances this morning. norman bettison, peter metcalf, graham mackrell, alan foster and donald denton will all appear at warrington magistrates court. our news correspondent daniel whitworth is there. what is expected to happen in court today. five men due to appear at warrington magistrates‘ court at around two o‘clock. probably the most high profile of the five people here is some norman better soon. ——bettison. he faces four offences of misconduct in a public office including telling lies and his involvement in the aftermath of the

tragedy and the behaviour of fans. graeme mackrel was secretary at hillsborough and because he was in charge of safety and security he is accused of failing to carry out his duties. peter metcalf it was a liar who worked for a south yorkshire police and is accused of perverting their course of justice police and is accused of perverting their course ofjustice and changing witness statements. donald denton, a former superintendent and alan foster, a former police chief inspector face charges of perverting the course of justice inspector face charges of perverting the course ofjustice and changing witness statements. the crown prosecution service alleges alan foster was central to that process.

not in court is david dukinfield. he was the match day commander and was in charge of policing on the day of the tragedy. he is a former chief superintendent. he faces the most severe charges and faces manslaughter by gross their goodness of 95 victims. there were 96 in total but because of legal reasons he is not facing charges regarding the death of tony bland who died four years after the event. why are we here so long after those events? 28 years on and after the initial aftermath of the disaster in 1989 of that if the cup semifinal between liverpool and nottingham forest and the fatal injuries sustained by 96 men women and children, the media,

some sections of the press and the police falsely reported that the fa ns were police falsely reported that the fans were to blame. after many decades of campaigning by the families of the victims they were com pletely families of the victims they were completely exonerated and completely cleared of any blame whatsoever. that culminated in the conclusion of a final inquest last year that found those 96 men, women and children we re those 96 men, women and children were unlawfully killed and an inquest is not a criminal case. it did not seek to apportion any blame. an update on our headlines. north korea says it is considering a missile strike on the united states north pacific island of guam. six french soldiers have been hurt, two of them seriously, after a car drove into them and then sped off. 500 new medical school places will

be made available and england next year. wade van knee—kirk took gold in the 400 metres at the world athletics championships last night. the south african‘s win was overshadowed as you‘ve been hearing by the iaaf‘s decision not to let botswana‘s isaac makwala run, due to suspected norovirus. following his ten thousand metres win britain‘s only medal winner of the games so far — mo farah — is back on the track he seems to love so much. he begins his campaign for the 5000 metres later tonight. and the women‘s rugby world cup gets

underway this afternoon with england looking to defend the title they won back in 2014. england take on spain, wales are in action against new zealand, and ireland taking on australia across dublin. let‘s look at some of today‘s other developing stories: police have stepped up their presence in a village after an 83—year—old man was stabbed to death while out walking his two dogs. the victim‘s body was found on saturday, three miles south of east harling, norfolk. he died from multiple stab wounds to his neck and head, a post—mortem examination showed. the murder weapon has not yet been found. a 15—year—old boy has been stabbed to death near croydon in south london. the incident took place around 11 o‘clock last night. the victim was pronounced dead at the scene. it‘s the second fatal stabbing of a teenager in the city in 24 hours — and the 13th this year. children‘s services are being "pushed to breaking point" due to increased demand and cuts in council budgets according to the local government association. the lga says three—quarters of english councils overspent on child social care by a total of more £0.5 billion last year.

a government spokesman said councils would receive around £200 billion for local services up to 2020. the lga says it‘s not enough. councils are facing a double whammy. a big cut in government grants and a big increase in the number of children who need those services and so we are saying there will be a £2 billion gap by the end of this decade in the amount of money councils need compared to the amount of money councils have got. that will lead to big problems in making sure we can keep children safe in the way the members of the public would expect us to. mps in belgium will question ministers and regulators later today about the scare involving contaminated eggs from dutch farms. the belgian authorities have been accused of being too slow to reveal that traces of a banned pesticide had been found in eggs last month. retailers in several european countries have pulled millions of eggs from their shelves. the uk‘s food standards agency says the risk to the public is very low. the aa says seven out of ten drivers avoid parking spaces that require payment by phone.

it says motorists, especially the older ones, prefer to pay with cash, even if the meters don‘t give change. the aa says that many are put off by administration fees and voice controlled payment systems. for a full summary of the news you can go to our website where you‘ll be able to get more details and analysis. tributes have been paid to the american country music star, glen campbell, who‘s died after what his family called a long and courageous battle with alzheimer‘s. he was 81. dolly parton said he had "one of the greatest voices of all time". he was famous for hits including rhinestone cowboy and wichita lineman. 0ur arts correspondent david sillito looks back on his life. # i am a lineman for the county... wichita lineman, it‘s wide open spaces, yearning, loneliness, america turned into song. but what truly made it a masterpiece was the voice of glen campbell.

# i hear you singing in the wire...# he had been born in billstown, arkansas, a large, poor family of cotton pickers. his escape was his uncle boo, who taught him to play guitar. # little baby, how i love you...# he could play anything and ended up singing on tv shows and on hundreds of singles with the session musicians the wrecking crew, phil spector songs, the righteous brothers, the beach boys, frank sinatra, it was glenn campbell on guitar. and eventually, a breakthrough hit of his own. # rivers flowing gentle on my mind...# but it was the partnership with songwriterjimmy webb that gave him his career—defining songs by the time i get to phoenix... ..galveston, wichita lineman. clean cut, conservative, he was suddenly country

music‘s biggest star, with his own tv show. # i have someone who needs me # someone i‘ve needed so long... # but i‘m going to be where the lights # are shining on me...# rhinestone cowboy was a glorious return to form after a dip in his fortunes that had taken place in the ‘705. but his personal life was farfrom glorious. i think i probablyjust quit letting god run my life and i actually just got into the drugs and the booze pretty heavy. # i am a lineman for the county, and i...# what? drive. drive the main roads. that slight stumble over the words, it was the beginning of alzheimer‘s. # and the wichita lineman...# he‘d long put his wild days behind him, but memories were fading. # still on the line...# what stayed with him when so much else had gone was the music. the songs of glenn campbell. let‘s get the latest on the

situation with north korea. the war of words escalating between kim jong—un an donald trump. how are you feeling what is happening on guam? today was an interesting day with a lot of social media and concerns and most people on guam walk up to the news there was this what works which could turn into one of weapons which might encapsulate our island as well and so it was a very tense day with and so it was a very tense day with a lot of difficult conversations and

a lot of difficult conversations and a lot of debate about what lies ahead for our island in the pacific which is known to us as the land of the indigenous people but to the united states it is known as the tip of their spear. our people feeling vulnerable? yes. the rhetoric that has come out lately from north korea is common. guam is commonly mentioned as a forward american base of the united states uses to project force into asia. this time it is a little bit different. they were a little bit different. they were a little bit different. they were a little bit laid—back —— and they we re very little bit laid—back —— and they were very specific about guam and that the president was very specific. rather than the united states providing our measured response to korea it seems that

donald trump is trying to match the aggressive tone of north korea and for those of us on guam court between those two countries it is a very difficult place to be. we here on guam are in the territory of the united states and we do not vote for the president of the united states and don‘t have representation to congress so we wonder who is basically speaking on behalf of us in this warof basically speaking on behalf of us in this war of words. does that rhetoric make people feel protected that donald trump is obviously looking out and would protect all mauro vulnerable? —— or more vulnerable? it has been a very much a roller—coaster today. guam has a history of being a place in the

united states which was occupied by foreign power in world war ii. in 1941 we witness dissimilar place with talk of war between japan 1941 we witness dissimilar place with talk of war betweenjapan and the united states and the united states military on guam gave indigenous people assurances such as my grandparents that everything would be fine and they would be defended but in december 1941 a couple of hours after pearl harbor the japanese bombed guam and later invaded and then we find the united states never had any of defending guam. that has to be what these people because the one hand with the presence of bombers and aircraft carriers we can feel safe but on the other hand we have to wonder if these things are here to protect us to defend the interests of the united states and dab expendable that process? fox news may two states reported earlier that have

guam —— that if guam were attacked 3000 american lives would be last, on amount of american military personnel here. there was a conversation all over social media asking is this evidence that we do not matter? there is a population out of 160,000. people having conversations about potentially leaving what is going on? conversations about potentially leaving what is going 0mm conversations about potentially leaving what is going on? it is very true. nobody wants to live in something of what america calls the tip of its spear. you‘re bound to get bloody in any conflict. part of it is just not being a real partner in this process. guam if the territory. we get things from the united states but we do not get a seat at the table. if the united states wa nts seat at the table. if the united states wants to change its strategy

our conduct testing training year we do not get to say yes or no and we do not get to say yes or no and we do not get to say yes or no and we do not get to partner with them. we have two ensure that the choices they make. that is part of the anxiety, it is notjust that that is anxiety, it is notjust that that is a threat from north korea. but also we are bound to whatever choices donald trump of the us military make and just as my grandparents and our a ncestors and just as my grandparents and our ancestors were dragged into world war ii by the united states people here are very worried that if there is any conflict we would just be dragged into it whether we wanted to or not. thank you very much indeed for joining or not. thank you very much indeed forjoining us. early results from kenya‘s presidential election indicate that the current president uhuru kenyatta has a strong lead over opposition leader raila 0dinga. the country‘s election commission says that with nearly 90% of votes counted, mr kenyatta currently stands on 54%. however, the opposition coalition has rejected the figures, and has accused election officials of publishing fake results.

is there evidence to back that up? at the moment always said is that they have received information from reliable sources and they say at midnight they hacked the election database midnight they hacked the election data base and so midnight they hacked the election database and so in favour of the opponent. that is about it. they have also written to explain what time and what happened and they believed whatever information they have. thank you very much. it is no

surprise that the isle of sky gets tourists. they are struggling to cope with the numbers. it does look beautiful, of course. what is the problem with tourists? tell us more. well, it is a beautiful and tranquil location a lot of the time but sometimes it is very busy. you might just be able to hear announcements in the background. the highland games are happening today, which makes it the busiest day. the town is packed and today you get a sense of how much pressure that is on the infrastructure of this island. skye has a unique and stunning combination of rivers,

mountains and sea lochs, but now it‘s under increasing pressure from drive—through tourism. some of skye‘s most stunning locations are victims of their own success, suffering increasing road and path erosion. but, still, visitors are drawn to them. what do you think of what you‘ve seen so far? it‘s beautiful. i mean, just the landscape is amazing. the colours are beautiful. something you don't see anywhere else. yeah, it's been lovely and everything is beautiful, you know, you have the vast landscape you can walk and have the space, so, yeah. not so much space on skye‘s single—track roads. incidents like this are surprisingly common. and more people are coming to skye because they‘ve seen it on film. the problem at the moment is the car parking,

disposal of waste, and, you know, people come to where the films were made, jump out of the car or the coach, take a quick picture and gone again. and, you know, it‘s nothing coming into the island economy from some of these big companies. who wouldn‘t want to come to skye to be so surrounded by natural beauty like this? it‘s clear that pressures are growing and some on the island believe that there need to be solutions sooner rather than later. well, the biggest challenge over single—track roads... shirley runs one of skye‘s most famous restaurants. she‘s also setting up an organisation which will pitch for government grants to improve the island‘s infrastructure. we need the scottish government to get right behind tourism, which is now recognised as being a major economic driver for the country of scotland. we need to get them onside and perhaps supporting us with extra funding for the development of tourism as an industry. other people suggest a tourism tax,

or even making all or part of the island a national park. but the consensus is that there should be action soon. well, who better to discuss these issues than the msp for the dairy. you have a huge constituency, don‘t you? yes, the best constituency in the uk. it's beautiful. what about the uk. it's beautiful. what about the challenges, how do you address the challenges, how do you address the fact that the infrastructure is not coping with the volume of two is? we do welcome visitors. we have visitors here and it is great, however, we have not been prepared for the influx of visitors and the

roads and amenities are struggling under the weight. what can be done? there are options like a tax, a special fund for communities like this or making part of it a national park. the first thing we need is a map. a map looking at all the pinch points and deciding how we‘re going to solve the. there are five key areas that people think they need to visit. areas that people think they need to visit. our parts of sky that by not being visited but are these areas. the need car parts and toilets. we need the cash to do that and that is about the highland council and scottish government working together to put the funding in. how quickly can that happen? there is damage being done now and needs to be addressed in a timely way. there are low cost solutions we should have had portable toilets in place. it is

not pleasant when people toilet all over the place. we need them in place for next summer. in terms of car parks, there is progress in terms of putting a car park in place. the numbers are still increasing. even if you put in a car park for 200 people, more are going to come. we need shuttle buses and that needs a plan that can only be delivered with highland councillors and the mp and myself working together. thank you very much indeed. a lot to think about for the future. it may be does face the prospect of things improving. thank you very much. all of us watching now really want to go because it is so beautiful. the problem will get worse. thank you. and in sport:

defending champion start the defence of theircampaign defending champion start the defence of their campaign against the underdogs spain. we have come out here along with the other teams in the competition for the start of the new competition. what has gone before has gone before but the slate is wiped clean and everyone is fighting for that trophy come the end of the competition. there is going to be pressure to perform as well. they have played five international tests this year. we have played three of the best teams to months ago. they are very prepared and so we have to get ready for them and have a big first 20 minutes. we will be ready. manchester united were beaten by european champions in last night‘s super cup. there was a 2— nil lead

early and although united pulled a goal back, they could not stop the spanish side lifting the cup for the fourth time. sometimes when i went, ido fourth time. sometimes when i went, i do not keep the medals. imagine when i lose. for me, the medal would go to some place in my house and for that child it is the moon. it is something that is going to keep and remember. and we will be live on the world athletics championships in the next hour. thank you very much. economists are marking the tenth anniversary of the start of what became known as the global financial crisis. it was on this day in 2007 that the french bank, bnp paribas, flagged up problems in the us mortgage markets — leading to a series of bank collapses, and a worldwide financial panic. the chancellor of exchequer at the time, alistair darling,

speaking to radio 4‘s today programme spoke about what lessons could be learnt to avoid another crisis. the next crisis will probably come from somewhere where it wasn‘t really expected from causes that haven‘t yet been identified. and of course in a few years‘ time when institutional memories start to fade, and the people who were around have all gone and retired, then that is when the risks reoccur. you always have to be vigilant. the lesson from ten years ago is something that can start as apparently a small ripple in the water can become mountainous seas very quickly. with me now is the former ubs chief economist george magnus and ann pettifor, director of policy research in macroeconomics. thank you forjoining us. we were hearing about a small ripple in the water which became something that we all have had to live with the consequences since. what for you was the first sign of where we might be headed? i think what i remember is

in april of that year there was an american sub—prime mortgage lender, so lending money to people who could not repay the loans, they were cold new not repay the loans, they were cold n ew ce ntu ry not repay the loans, they were cold new century and this brought the phenomena of poor quality mortgage lending. before that it was back page of the financial times and then it went to the front. that marked out the beginning of the credit crunch. i think at the time people thought this was all an american issue about mortgage lending in florida and nevada. i do not think there was any appreciation in the wider world, in the banks we knew, but in the wider world this wasn‘t the tip of an iceberg. there was

much else going on below that. we are to be. static yet joined for you? sometime before that because it was the water falls of credit and debt and the massive expansion of the debt, particularly in american economy is where it was out of balance. i knew that debt was never going to be repaid. the question was where would it start to not be repaid and it started in the sub—prime market. repaid and it started in the sub-prime market. good things have been done differently?” sub-prime market. good things have been done differently? i think so. i think the economists in charge and central bankers thought of markets in money and credit is being markets in commodities and believed that the market could sort itself out. that was never the market could sort itself out. that was never the case. market could sort itself out. that was never the case. markets in credit and money are very different

to other markets. the decision and the approach was to not manage it and to believe wrongly as it turned out that markets would discipline those issuing credit if they got it wrong. as we have seen since, markets have not disciplined those who have made mistakes. what do you think about the way things were handled? i think it is a representation of chronic regulatory failure. we cannot stop financial crisis if we believe that banks should have the role in our economy that they have had for a long, long time. and still do, to an extent. but you can curtail the extent to which these crises happen and i think what the 19805 and

which these cri5e5 happen and i think what the 19805 and the 19905 and lead to thousands were marked by wa5 and lead to thousands were marked by was this belief that if we deregulate systems... this cro55e5 the political spectrum. if we deregulated systems we could be more initiative and growth would be faster, and that proved to be just wrong. ina faster, and that proved to be just wrong. in a most devastating way. the lesson for me is about regulation and about what central bank5 know. they new things or should have known things in 2007 but they chose not to. how does that add up they chose not to. how does that add up when we look at the forecast that wa5 up when we look at the forecast that was out then and it did not tally with where things went. when you say they knew, who knew?|j with where things went. when you say they knew, who knew? i think it was hubri5. i think there was a belief that the good times were here.

remember the 19905 was the information revolution, communications, technology. then it wa5 boom time in the global economy. china was coming on stream like an express china was coming on stream like an expre55 train. things were really good then and there were concerns expressed, including by and, but also by the bank of international settlements, central bankers central bank. a lot of us were aware it was going to end in tears but the people who were in charge did not want to know. things have not changed that much. the central banks have built up much. the central banks have built upa much. the central banks have built up a capital held by banks but the financial architecture is pretty much what it was before. the thing that worries me is in britain, bank lending, 50% of bank lending or 60%

is speculative. it is lending to property or credit cards on the other. only 20% to the financial sector and firms. the firms in britain are getting £15 billion in bank lending, whereas before the crisis and were getting on average £40 billion per year. that means investment is falling and when that falls, productivity falls and incomes fall. when incomes fall, the capacity to re pay incomes fall. when incomes fall, the capacity to repay debt is diminished. that, for me, is the real anxiety, banks have not been restructured and managed in such a way to ensure they are lending into the real economy and not this speculative economy. that is something that has been looked at and banks have been encouraged to dip into their re5erve5 and banks have been encouraged to dip into their reserves and to increase that lending. how can you

make it happen? the regulators have looked at capital buffers but not for what they are lending and why. it is what lending is fought is really important. if it is for gambling and speculation, you can be sure it is going to inflate assets, as it does property, and it is all going to end interiors. if it was worth productive activity, it is a different outcome. they do not think they need to manage banks to make that happen. i am not sure about that. you have state directed lending, which the chinese have and they are making a hash of it in their way, too. if you have a market—based system, i think you have to allow or accept that banks will lend money to people that want it. i think part of the reason why small companies are at borrowing for investment has a lot to do with the

demand side and brexit i5 investment has a lot to do with the demand side and brexit is creating uncertainty. nobody wants to make commitments. i do think the architecture has changed sufficiently since 2007 to make us not complacent but comfortable, shall i say, that the systemic crisis that we had in 2007 is not imminent. these things do not happen very often. we have not had the dramatic growth that has preceded a crash. does another boom and bust cycle become inevitable? you have had lacklustre economic growth. i do not think that has to do with the wea kness not think that has to do with the weakness of bank lending. is itjust a new continuing picture? it is the aftermath of the mother of financial crises that we had in 2007 and 2008, the worst since the 19305.

hopefully, we will put blue water between ourselves and the next financial crisis but i think and is right that the lending to consumers for credit cards and the borrowers have a role to play here as well. these things will cause problems in the next recession which will happen in the next year or so. i am not in favour of state directed lending. i do not believe in the chinese model. we had forms of regulation before of the banking sector that insured investment went into productive activity and we had high levels of growth and high levels of economic activity and employment. we need to go back to that, in my view, and the banks that to happen because you can make more money with speculative lending and speculative activity. making profits from long—term

lending takes longer. we have got to encourage banks to do that and the authorities should be doing that because the market will not. the market encourages them to go in for costly speculative lending. we are out of time. it has been so interesting. picking up on what you said, george, you reckon another recession and the next year?” said, george, you reckon another recession and the next year? i think it is very likely. the expansion is old. although there are not any immediate causes of concern, it is very likely that brexit will tip us over at some point. thank you very much. on that cheerful note. not very cheerful at all. later on today at 3:30pm, we will put your questions about the financial crash. you can get in touch... in a moment a summary of the business news this hour, but first the headlines on

bbc newsroom live: north korea says it is considering launching a missile strike. it comes hours after president trump said it would be met with fire like the world has never seen. six soldiers have been injured, two seriously, after a car drove into them in a western suburb of paris. they were on patrol as part of an operation set up after the charlie hebdo shootings in 2015. and 500 new medical school places will be made available in england next year, as the government attempts to boost the number of home—grown doctors in the nhs. hello. these are the top business stories... today marks the tenth anniversary of the global credit crunch. the day when banks stopped lending, forcing the world‘s financial system to a halt. banks had racked up massive debts that customers couldn‘t afford to pay back. it sparked a crisis that was felt around the world. more on that in a moment.

the pound has steadied against the dollar since the us voted to keep the rates on hold. a ten month low came yesterday. the bank tsb says the number of people using the current account switching service has fallen by 14% in the past year. this has has happened as the competition regulator is trying to encourage more competition for current accounts. a very good morning to you. the 9th of august 2007 might not mean much to you — but it‘s the day the global financial system went into meltdown. and its repercussions are still being felt. ten years ago today banks suddenly found they had racked up billions of pounds of toxic debts that customers couldn‘t afford to pay back. overnight, they stopped offering lending — loans and mortgages dried up, businesses couldn‘t access credit. it sparked a crisis that spread around the world as the whole system seized up. so, ten years on,

what‘s changed — and did we really learn any lessons? ken 0deluga, market analyst, from city index. i suppose ten years on now, a lot has happened but some things haven‘t changed. record high in the market and personal debt levels soar and we are ina and personal debt levels soar and we are in a very familiar position. and personal debt levels soar and we are in a very familiar positionm does have a lot of characteristics about it compare to the last. i would say that if you look closer, things have changed. let‘s talk about that rallied to new record highs in the markets around the world. the new highs has been halting and hesitant and incremental than the action we saw around 2007. what you are seeing is the result of

reduction of volatility in the market. that relates to the central bank actions around the world which have swelled the sheets to record sizes. they are creating a huge attrition for markets around the world. a lot of volatility has come out and capacity for a shock, it does not mean we are beyond any capability of seeing a similar set of events. the risks are reduced. capability of seeing a similar set of events. the risks are reducedm is so interesting that ten years on many of the big banks are still trying to put things right. there has been big fines levied against them and lots of compensation paid out. they are struggling with the regulations in that they have two separate the investment section from the high street. i think it is going to continue. the problem on the regulatory front has been better, at least on the surface in the us than

it has been in europe and the uk. lloyds ba n k it has been in europe and the uk. lloyds bank is a very different bank computer rbs, further along in the cycle to clearing itself up. berkeley is still trying to reduce this risk assets and businesses because it doesn‘t fit into its current business model. —— barclays. we know that rbs is still in the throes of that. it is going to go on for a long time. you work in the city. has anything changed? do the people you talk to say we need to do things differently or is there still that match or culture that you guys knows what‘s happening and to eve ryo ne knows what‘s happening and to everyone else, to hell with them? my point of view is different because i was working in an observational role in the city working for a large financial news wire. nevertheless,

some of that match or culture did come across. i felt it. the some of that match or culture did come across. ifelt it. the impact of the regulators is more hawkish today and that seems to have changed the tone of the discourse. the regulator is everywhere. big businesses must accord for all activity at every step of the way. that does tend to reduce the culture. some of that tone, how should we see, bad culture has come out. you‘re all was going to find pockets of those slightly damaging risky and risk seeking culture are still around. it is really good to talk to you. let me show you what markets are doing now in the wake of the tenth anniversary. they are all down because the arrow worried about what we have heard from president

trump. you can see down three quarters of 1%. that is not a lot of move in the markets or corporate data. all that rhetoric we have heard from president trump is turning in to nervousness for everyone. more later. thank you. let‘s catch up with the weather. everyone is asking me we have some are everyone is asking me we have some are gone? i have found it. it is in glasgow. it is going couple of days here. you will also find some in northern ireland and west wales. elsewhere, lots of cloud around. beneath that cloud, very heavy rainfall at the moment. it

will continue to rain here into the afternoon. heavy and thundery showers developing and we will lose that sunshine in kent. further north across scotland, that sunshine continuing. pleasant this afternoon. maximum temperature of 21 celsius. sunny spells for a northern england and northern ireland as well. drying up and northern ireland as well. drying up quite nicely. the south west of england especially. southern england, east anglia and the south—east, brighter colours and intense rainfall. thunderstorms likely. that rain will ease out a little bit. it will turn chilly into thursday morning. temperatures down into single figures. 11 or 12 celsius. 0n

into single figures. 11 or 12 celsius. on thursday that weather front will clear away and that ridge of high pressure building in. it is going to extend to all of us, the nice weather. some early morning showers but for most of us thirsty is looking like a nice day with some dry weather and sunshine. maximum temperature is getting up in to the high teens or low 205. that ridge of high teens or low 205. that ridge of high pressure will move away to the south again. things are changing again for friday. outbreaks of rain sinking south word or east word. it will break up and giving sunshine in the north—west later on. how about the north—west later on. how about the weekend? fairly promising at the moment. dry weather. temperature is around 17 or 19 celsius. goodbye. this is bbc news —

and these are the top stories developing at midday. north korea says it is considering carrying out missile strikes on the us pacific territory of guam as tensions between the two countries reach new heights. they will be met with fire and fury like the world has never seen. the korean people's army strategic force is looking at the plan for making enveloping fire in the areas around guam. french police are hunting for an attacker who drove a car into six soldiers, injuring two of them seriously, in a suburb of paris. 500 new medical school places will be made available in england next year, as the government attempts to boost the number of home—grown doctors in the nhs. ten years since the day the global financial system went into meltdown — we examine how its repercussions are still being felt today. has the isle of skye has become a victim of its own beauty?

the island is struggling to cope, as tourism reaches record numbers. athletics chiefs have been criticised for denying a medal favourite entry to the london stadium amid concerns over an outbreak of norovirus. north korea has said it is considering carrying out missile strikes on the us pacific territory of guam. meanwhile president donald trump has threatened north korea with "fire and fury". guam is a small island in the pacific ocean —

where us strategic bombers are based. north korea‘s official state news agency said it was considering a plan to fire medium—to—long—range rockets. the exchanges mark a sharp rise in rhetoric between the two countries. suzanne kianpour reports. north korea best not make any more threats to the united states. they will be met with fire and fury like the world has never seen. unprecedented language from an american president. donald trump officially escalated the us stand—off with north korea from his perch on a working vacation at his golf course in newjersey. the trigger? a report citing us intelligence officials saying pyongyang has produced a nuclear warhead small enough to fit inside its missiles — that much closer to the capability of striking the united states. the president‘s angry response could throw a wrench into hopes

of a diplomatic resolution. after a rare unanimous vote in the un security council to slap strong sanctions on the regime — a move meant to bring north korea to the table. north korean state news says kim jong—un is already weighing a plan to strike the us pacific territory of guam which appears to have been in place before mr trump‘s remarks. president trump often criticised his predecessor, barack obama, for not sticking to his red lines in foreign policy when he was here in the white house, but now, mr trump has drawn a red line with harsh new rhetoric. the question is — what happens if north korea crosses it? i spoke to a professor at the university of guam who told me people there are afraid of being caught in the middle of escalating tensions between the united states and north korea. we have a history

of being a place for the united states and this territory is occupied by a foreign power in world war ii. in 1941 we were in similar place with talk of war betweenjapan and the united states and the united states military promise people such as my parents are my grandparents that everything would be fine and they would be defended. in december of 1941 a couple of hours after pearl harbor the japanese bombed guam, invaded soon after and we learned later that the united states never had any intention of defending guam so that history really want is people here. because the one hand with the presence of missile systems and fighters and bombers and aircraft carriers we can feel safe that on the other hand we have to wonder, how these things here to protect us to defend the interests of the united i we expendable in that process. the fox news in the

united states said that if guam was attacked 3000 american lives would be lost, only counting the number of american military personnel here so there was a lot of people and social media asking if this is evidence we don‘t really matter in their calculation is? there is a population of around 160,000. people having conversations about leaving with all this going on? it is very true because no one really wants to live and what something america calls the tip of its spear because the tip of a spear, you are bound to get bloody in any conflict. part of it is not truly being a real partner in this process, so guam it territory. we get things from united states if they allow us to get it

but we don‘t get a seat at the table. if the united states was to change strategy our conduct testing or training here we don‘t get to say and no and we don‘t get to partner with them. we just have two insure the choices they make. that is part of the anxiety, it is notjust that there is a threat from north korea but that we are bound to whatever choices donald trump of the us military make. just as my grandparents and our ancestors were dragged into world war ii but the united states, people here are very worried that if that is any conflict we would just be dragged into it whether we wanted to not. six french soldiers have been hurt, two of them seriously, after a car drove into them and then sped off. police say a hunt for the driver and the car is underway. the incident happened in the parisian suburb of levallois—perret, west of the city.

the local mayor says he has "no doubt" it was a deliberate act. 0ur correspondentjonny dymond is at the scene now. they are starting to piece together what happened this morning somewhere between eight and nine paris time. a change of shift between soldiers, one change of shift between soldiers, u change of shift between soldiers, one group leaving a temporary barracks, a small headquarters here, and another group going back to it. at some point a car drove against the flow of traffic at high speed and crashed into the soldiers, of whom six were injured and two seriously. the island two separate hospitals. the mayor office is prosperous and pretty quiet suburb about 50 minutes away from the arc de triomphe said this was definitely a deliberate attack. a counterterrorism operation has been opened. a heightened police and

military response but they have not found the vehicle and not find the driver. there is a fairly intense hunt for both the driver and the vehicle as you can imagine. the concern is that this may not be the only attack. why here? this is not a particularly significant area and a somewhat away from the major attractions of paris, where we have seen attacks before. what are probably suggest is that whatever that our military and security forces there are some who see them asa forces there are some who see them as a target and there are some who will carry out these kind of attacks. it is not the first time that those who were there on the streets of paris to protect people asa streets of paris to protect people as a result of the security issues have been attacked themselves. that is right. the high security presence has been in operation since 2015 and is called operation sentinel and to

seem fairly large numbers of military and high—profile places, whether it be to list venues of the great museums are especially transport and notes, places like railway stations. you see soldiers on the streets heavily armed. they serve two purposes. what is to reassure with citizens and visitors that paris and the great cities of france are safe. the other is to deter attacks like this. by showing there will be a swift response. but they are a high profile and have led to attacks themselves and this will affect a sex attack since 2015 on the military or security forces. it is something that is becoming respected and you get any of despondency and slighted a resignation alongside the natural shocks of these attack happen. an attack that happened when many britons have left the city as they often do for the first two weeks of august but when they have been replaced by thousands upon thousands of visitors. the authorities are

searching for who carried out this attack and the car and will seek to reassure those in paris that there will be a swift response. 500 new medical school places will be made available in england next year, as the government attempts to boost the number of home—grown doctors in the nhs. the target is to increase the total number of training places by a quarter by 2020, to help ease staffing pressures. the british medical association says it won‘t address the immediate shortage of medics. jessica parker reports more doctors, home—grown. the government has given more detail today on what it says will be the biggest ever expansion of the medical workforce in england. what we‘re doing is ensuring that we train enough home—grown doctors so the nhs becomes self—sufficient in doctors over the period of the next ten years or so and we think that that‘s the best way to ensure that we have the doctors

we need for the future. next year, an extra 500 medical school places will be made available. by 2020, that number will grow to 1,500, representing a 25% increase in yearly intake overall. and medical schools will have to win many of those extra places by showing that they can get graduates to work in rural or coastal areas, where recruitment os more of a struggle, and by bringing in trainees from diverse and disadvantaged backgrounds. we welcome the government‘s approach, looking at how they can get more people from poorer backgrounds to study medicine. it‘s something which the bma has been talking about for many years, but there are lots of questions about how these medical school places are going to be funded and how the government is going to tackle the immediate recruitment and retention crisis of doctors in the nhs. this is all part of wider plans to create thousands more training places for nurses, midwives and health professionals. the labour party says it doesn‘t add up to any significant new investment. but, ultimately, it will be patients who decide whether this extra dose of doctors proves to be an effective medicine. five suspects of the hillsborough

disaster are due to make their first court appearances this morning. norman bettison, peter metcalf, graham mackrell, alan foster and donald denton will all appear at warrington magistrates court. our news correspondent daniel whitworth is there. what is expected to happen in court today? five men due to appear at warrington magistrates‘ court at around two o‘clock. the most high profile is sir norman bettison. he faces four offences

of misconduct in a public office including telling lies and his involvement in the aftermath of the tragedy and the culpability of fans. graham mackrell was secretary at hillsborough and because he was in charge of safety and security he is accused of failing to carry out his duties. peter metcalf who worked for a south yorkshire police and is accused of perverting their course of justice and changing witness statements. donald denton, a former superintendent and alan foster, a former police chief inspector face charges of perverting the course of justice

and changing witness statements. not in court is david dukenfield. he is not appealing for legal reasons. he faces the most serious charges and manslaughter by gross negligence and 95 pounds. there were 96 victims but regarding the crown prosecution service. he cannot be charged in relation to the 96th victim, tony bland, who died within four years of the disaster. —— gross negligence on 95 victims. athletics chiefs have been criticised for denying a medal favourite entry to the london stadium amid concerns over an outbreak of norovirus.

around 30 athletes and support staff have been affected by sickness at the world championships, but only botswana‘s isaac makwala has been prevented from competing, as andy swiss reports. as wayde van niekerk charged to the 400 metres title, the first gold of a potential double at these championships, much of the focus was still on his absent challenger. isaac makwala was told he couldn‘t compete after his sickness because organisers had to protect the welfare of the athletes, but his botswanan team were left frustrated. we respect the decision if it is based on public health issues, however, it is the manner in which this decision was arrived at which is quite disturbing and, as we have indicated, this matter has been approached in dribs and drabs. we feel very sorry for the athletes that have to be withdrawn from the competition, but we have a responsibility for all of the athletes and if we allowed them all to sit, it's a tight close community and we need to make sure that all of the athletes are protected as well. meanwhile, britain‘s medal near misses continue, despite the performance of kyle langford‘s life.

bronze just eluding him in the 800 metres by an agonising 400ths of a second. and among today‘s highlights is the return of mo farah as he goes in the heats of the 5,000 metres. he‘s still the british team‘s only medallist here and it‘s now half—way through the championships. north korea says its considering launching a missile strike around the us pacific island of guam — it comes hours after president trump warns further threats would be met with ‘fire and fury‘ like the world had never seen. six soldiers have been injured, two seriously, after a car drove into them in a western suburb of paris. they were on patrol as part of an operation set up after the charlie hebdo shootings in 2015. and 500 new medical school places will be made available in england next year, as the government attempts to boost the number of home—grown doctors in the nhs. at the world athletics

championships this sickness bug has overshadowed things. no morning training. a typical british summer and the rain has been coming down most of the morning. not the best of competition areas for their athletes and the wind has picked up. the temperatures certainlyjob. and the wind has picked up. the temperatures certainly job. luckily the athletes will not have to compete in that this morning because it is no morning session. we‘re still reflecting on what was an intriguing day yesterday. thousands of fa ns intriguing day yesterday. thousands of fans packed into the stadium to see one of the most eagerly anticipated races in these championships, the men‘s 400 metres

final but it was very much overshadowed by the fact that ma kwa la overshadowed by the fact that makwala was not allowed to compete because he was said to be affected by the virus. in terms of the race it was wayde van niekerk took gold in the 400 metres at the world athletics championships last night. he said he felt simply for his rival. it is quite disappointing and would like to have had his opportunity. he was in great shape andi opportunity. he was in great shape and i believe he would have done very well in these championships at andi very well in these championships at and i have so much sympathy for him and i have so much sympathy for him andi and i have so much sympathy for him and i wish it could even give him my medal to be honest with you. perhaps it could be handled a lot better. exactly. many people today wondering

why the iaaf word not clear. mixed m essa g es why the iaaf word not clear. mixed messages from the botswana team and the governing body. i spoke to allison curbishley who said the iaaf had their hands tied. when he presented himself the iaaf had to go to the protocol when he was showing symptoms of the norovirus. it had already been an issue because of sunday. they were clearly on edge and they did not want this to set. kyle langford did it give the crowd

something to cheer about. for him to come in the top four was a fantastic achievement and i did speak to him earlier when i bumped achievement and i did speak to him earlierwhen i bumped into him achievement and i did speak to him earlier when i bumped into him and he said he was disappointed but not winning a bronze medal. he missed out byjust four hundredths of a second. such slimmer margins in winning medals and losing out. that should hopefully be more for british fans to cheer about tonight. in the long jump fans to cheer about tonight. in the longjump and in fans to cheer about tonight. in the long jump and in the semifinals of the 200 metres and sir mo farah after that glorious win in the 10,000 metres —— in the 5000 metres, he goes back trying to win the double in the 10,000 metres. and the women‘s rugby world cup gets

underway this afternoon with england looking to defend the title they won back in 2014. england take on spain, wales are in action against new zealand, and ireland taking on australia across dublin. sue d says it will be tough for some of the other nations. what has gone before has gone before and everyone is part of it but the slate is wiped clea n is part of it but the slate is wiped clean as of tomorrow. there will be pressure on the australians to perform as well. they have played five international tests this year and have played through the best teams only two months ago severe very well prepared side and we need to be ready for the man get a very big first 20 minutes and get resources together. we will be ready. we are getting some comments

from the us secretary of state rex tillotson. north korea has said it is considering carrying a missile strikes on guam. donald trump said any further threats would be met with fire and fury like the world is never seen. the secretary of state has said that the north korean leader does not understand diplomatic language and trump wanted to deliver a message to north korea to deliver a message to north korea to avoid any miscalculation. he does not believe there is any imminent threat from north korea. these comments come through on the reuters

news agency. early results from kenya‘s presidential election indicate that the current president uhuru kenyatta has a strong lead over opposition leader raila 0dinga. the country‘s election commission says that with nearly 90% of votes counted, mr kenyatta currently stands on 54%. however, the opposition coalition has rejected the figures, and has accused election officials of publishing fake results. mr 0dinga told a news conference in nairobi that the election authorities had not presented documents verifying the results from voting machines. the system has failed. it is the machine that is voting. we therefore reject all the results decreed so far and demand that the ibc produces information from all polling

stations. earlier our reporter sammy awami — sent us this report from the kenyan capital nairobi. he says the opposition is claiming a computer hacker has manipulative and information. they say they have received information from reliable sources with an electoral commission and say around midnight at hacker had the electoral commission database had the electoral commission data base and manipulated had the electoral commission database and manipulated the data in favour of his opponent mr kenyatta. that is about it that i have seen. they have supported an it expert who went into details to explain what time it happened and so they believed whatever information they haveis believed whatever information they have is credible. a 15—year—old boy has been stabbed to death near croydon in south london.

the incident took place around 11 o‘clock last night. the victim was pronounced dead at the scene. it‘s the second fatal stabbing of a teenager in the city in 24 hours — and the 13th this year. children‘s services are being "pushed to breaking point" due to increased demand and cuts in council budgets according to the local government association. the lga says three—quarters of english councils overspent on child social care by a total of more £0.5 billion last year. a government spokesman said councils would receive around £200 billion for local services up to 2020. the lga says it‘s not enough. the aa says seven out of ten drivers avoid parking spaces that require payment by phone. it says motorists, especially the older ones, prefer to pay with cash, even if the meters don‘t give change. the aa says that many are put off by administration fees and voice controlled payment systems. with its rugged mountains and pristine lochs it‘s no surprise

that the isle of skye attracts large numbers of tourists. but the island has become so popular its services are struggling to cope with the numbers. james shaw is there for us this morning. it is one of the busiest days for the year. probably the busiest day on skye the cars behind that wooden hill the skye highland games are taking place. everyone on the islands and i within the island are coming to see competitors. it does start to give you a sense that is an enormous pressure from all those visitors on the infrastructure of this island which is creaking in terms of roads and parkways and all the vital infrastructure which really does start to suffer because of this huge volume of visitors. skye has a unique and stunning combination of rivers,

mountains and sea lochs, but now it‘s under increasing pressure from drive—through tourism. some of skye‘s most stunning locations are victims of their own success, suffering increasing road and path erosion. but, still, visitors are drawn to them. what do you think of what you‘ve seen so far? it's beautiful. i mean, just the landscape is amazing. the colours are beautiful. something you don't see anywhere else. i didn‘t imagine so many people, but, yeah, we were quite surprised by that. you know, you have the vast landscape you can walk and have the space, so, yeah. not so much space on skye‘s single—track roads. incidents like this are surprisingly common. and more people are coming to skye because they‘ve seen it on film. the problem at the moment

is the car parking, disposal of waste, and, you know, people come to where the films were made, jump out of the car or the coach, take a quick picture and gone again. and, you know, it's nothing coming into the island economy from some of these big companies. who wouldn‘t want to come to skye to be so surrounded by natural beauty like this? it‘s clear that pressures are growing and some on the island believe that there need to be solutions sooner rather than later. well, the biggest challenge over single—track roads... shirley spear runs one of skye‘s most famous restaurants. she‘s also setting up an organisation which will pitch for government grants to improve the island‘s infrastructure. we need the scottish government to get right behind tourism,

which is now recognised as being a major economic driver for the country of scotland. we need to get them onside and perhaps supporting us with extra funding for the development of tourism as an industry. other people suggest a tourism tax, or even making all or part of the island a national park. but the consensus is that there should be action soon. the suggestion is done is to be some change quickly and and the ideas include a national park for parts of skye which provide some protection perhaps from natural camping and a fund for infrastructure such as a tourist tax between all the scottish government is not in favour of that proposal. lots of things to think about but perhaps in a sense time is short. this is a beautiful island but probably part of it are being

damaged at the moment as we speak during this summer season. i will step out of the shot so i cameraman canjust give step out of the shot so i cameraman can just give you a sense of the views of the silent and the town of portree and the hills and mountains behind it. rex tillis and has arrived in guam. it is the tensions between the united states and north korea after the threat to send a missile to guam. he has been speaking to the media. let's listen to him. what the president is doing is standing to the max sending a strong message in the max sending a strong message in the language he will understand. he does not understand diplomatic language. he wanted to be clear to

the north korean regime that the us will defend itself and its allies andi will defend itself and its allies and i think it‘s important he delivers that message with no miscalculation on their part. one of north korea‘s responses was the outgoing to... the north korean missile capability can point in many directions. guam is not the only place that can be under threat. no, i never considered re—routing the trip back. i do not believe that there is an imminent threat. do you think there is a longer term threat? about guam or the region in general? i hope not. we are hoping the pressure campaign that the whole world has joined us

pressure campaign that the whole world hasjoined us in and with pressure campaign that the whole world has joined us in and with the engagement of china and russia, two of north korea‘s closest neighbours, they can persuade the regime that they can persuade the regime that they need to reconsider the pathway they need to reconsider the pathway they are on and think about engaging ina they are on and think about engaging in a dialogue about a different future. have china and russia been helpful in the last 24 hours? having helped in any way? i have not spoken to them since we left manila, one day and a half ago. we had discussions in manila about the situation. i note they were having talks as well with the representative from north korea. i think that as evidence that they have opened channels up to communication and we hope that they will be encouraging them to stand down their programme, to abide by the un resolutions, that both china

and russia have voted for in the past. i hope they will use their influence and i do believe we have an influence with the regime to bring them to a point of dialogue, but with the right expectation of what that dialogue will entail. has anything happened in the last 24 hours to make you believe we are going towards military action? nothing that i have seen are anything i know of would indicate the situation has dramatically changed in the last 24 hours. do you have any immediate diplomatic plans to de—escalates the situation? have any immediate diplomatic plans to de-escalates the situation? well, we have a very active on going effort, most of which is fine to be seen to because that is where diplomacy is more effective. we have very open conversations and our minds remain open to china and russia as well as our allies.

publicly, we have been clear in our statements. as to what we would like to see happen and to make clear to them that we do not seek to be a threat. we have to respond with the serious threat they make towards us. they have been calls for you to launch a diplomatic effort. do you think in new strategy may be warranted? i do not. the strategy we are currently on is working. again, we have now gathered widespread international support. notjust we have now gathered widespread international support. not just with the un security council resolution but globally countries are speaking out as to what north korea should do, not to be a threat to the stability of the region. i think the pressure is starting to show. i think that is why the rhetoric is becoming louder and more threatening from north korea. whether we have

backed them into a corner or not is difficult to say. diplomatically, you never like to have someone in the corner without a way to get out. what is his way out? talks. talks with the right expectation of what those talks will be about. do you have any advice for americans? should be be worried?” have any advice for americans? should be be worried? i think americans should sleep well at night. i have no concerns about this rhetoric of the last days. i think the president again, as commander and chief, i think he felt it necessary to issue a strong statement to north korea directly. i think what he was reaffirming is united states have the capability to defend itself and our allies, and we will do so. the american people should sleep well at night. thank you, sir. thank you. the us secretary of state seeing the

american people should sleep well at night at the united states has wa nted night at the united states has wanted to underline to north korea that it has the capability to defend itself and its allies. he is an guam responding to the latest escalation between the united states and north korea with north korea saying it could launch an attack against guam. i think we‘re getting some pictures in... we might be able to bring you some pictures of the secretary off the plane on?. donald trump‘s comments that any threat from north korea would be met with fire and fury have led to the secretary making the comments that the north korean leader does not understand

diplomatic language and donald trump is sending a strong message to man mark in language that he would understand. he wants north korea to avoid miscalculation and that is not an imminent threat, he believes, and he hopes for dialogue to the escalate the situation. we might have the pictures. —— de—escalates the situation. that is the secretary on? . he says he does not believe there is an immediate threat to guam. the rhetoric has stepped up after more sanctions were unanimously agreed against north korea and the rhetoric has stepped up korea and the rhetoric has stepped up with those strong comments from donald trump saying north korea better not make any more threats,

they will be met with fire and fury. we will keep you up with the latest. now for the weather. good afternoon. split fortunes across the country. for some, a very soggy day. parts of east anglia seeing rain all day long. quite heavy at times. the risk of some flash flooding. further north and west, a different story. best of the sunny spells for scotla nd best of the sunny spells for scotland and northern ireland. 20 celsius and glasgow. you might get 15 or 16 if you are under the rain. that rain will continue over the south—east. it should peel away by most areas by the end of the night. clear skies over night. fairly cool in towns and cities. for — seven celsius in the countryside. a brighter day and bright skies for tomorrow. sunny spells bubbling up

into the afternoon. the vast majority will be dry and temperatures are not too bad, up to 22 celsius. this is bbc newsroom live. the headlines: north korea says it‘s considering launching missile strikes at the us pacific territory of guam — but us secretary of state says north korean would understand the rhetoric. we have the right to defend ourselves and our allies. i think it is important we deliver that message. police in france are hunting for the driver of a car that hit a group of soldiers on patrol in a western suburb of paris — six of the soldiers were injured, two are seriously injured. the target is to train more doctors

by 2020. economists are marking the tenth anniversary of the start of what became known as the global financial crisis. it was on this day in 2007 that the french bank, bnp paribas, flagged up problems in the us mortgage markets — leading to a series of bank collapses, and a worldwide financial panic. the chancellor of exchequer at the time, alistair darling, spoke to radio 4‘s today programme and spoke about what lessons could be learnt to avoid another crisis. the next crisis will probably come from somewhere where it wasn‘t really expected and from causes that haven‘t yet been identified. and of course in a few years‘ time when institutional memories start to fade, and the people around have

all gone and retired, then that is when the risks reoccur. you always have to be vigilant. the lesson from ten years ago is something that can start as apparently a small ripple in the water can become mountainous seas very quickly. a little earlier i spoke to ann pettifor, director of policy research in macroeconomics and the former ubs chief economist george magnus who began by describing when he first realised the direction the economy was heading in. what i remember was in april of that year 2007 there was an american sub—prime mortgage lender, is lending money to people who did not have the wherewithal to repay the loa ns have the wherewithal to repay the loans and so on, cold new century, the filed for bankruptcy. this brought the phenomenon 0n 0f the filed for bankruptcy. this brought the phenomenon 0n of poor quality lending. before that it was back page of the wall streetjournal

and financial times is catapulted it to the front. and that marked for me the beginning of the credit crunch. i think at the time people thought this was all and american issue about mortgage lending in nevada and florida. there was never any appreciation in the wider world, in the banks they knew, but in the wider world people did not understand this was the tip of an iceberg. there was much else going 0n below that level. iceberg. there was much else going on below that level. when did the dots getjoined for you? on below that level. when did the dots get joined for you? sometime before that. i wrote this book in 2006. it was the water falls of credit and debt and the massive expansion of credit debt relative to global income, particularly in the american economy is where income versus debt was out of balance and i knew that was never going to be repaid. the question was where would it start and not be repaid? it

started in the sub—prime mortgage. could things have been done differently? i think so. could things have been done differently? ithink so. ithink could things have been done differently? i think so. i think the economist in charge and particularly central bankers thought of market in money and credit to be like markets and oddities and treated the belief that the markets could sort itself out. that was never the case. market and credit are different and have to be managed. the decision and approach was not to manage but to leave them. to believe that markets would discipline those issuing credit. . george, what do you think about the way things were handled? i think it is a representation of chronic failure. we cannot stop it

if we think financial institutions should have a role in our economy that they have had for a long, long time and still do, to some extent. you can curtail the extent to which these crises happen and i think what these crises happen and i think what the 19805 and the 19905 and the 2000 we re the 19805 and the 19905 and the 2000 were marked by was the belief that if we deregulate financial systems, this crosses the critical spectrum from right to left and back again, if we just deregulated financial systems we could be more innovative and growth would be faster. i think that proved to be just wrong. wrong in the most devastating way. the lesson for me is about regulation and about what central banks know.

the new things or should have known things in 2007 at the jewels not to. how does that add up? we‘ll look at the forecast that was being put out then and it did not tally with where things went. when you say they knew, who knew and why wasn‘t it talks about his bag i think it was hubris. the belief that good times were here. the 19905 was the information revolution, communications, technology. the 2000 were boom time in the global economy will stop china was coming on stream like an express train. everything in 2000 looked really good. there were concerns expressed by ann and her book but also by others, the central bankers and the central bank. lots of us were aware that it was going

to end in two years but the people who were in charge in government and financial institutions did not want to know. things have not changed much in my view. they have done things to create the capital. the architecture is what it was before. the thing that worries me is in britain, bank lending, 50% of bank lending or 60% is speculative. it is lending or 60% is speculative. it is lending to property on the one hand or credit card loans on the other. another 20% as to the financial sector and only 20% of firms. the firms in britain were getting about £15 billion in bank lending where as before the crisis in 2008, they were getting on average £40 billion per year. that means investment is falling and that means productivity falls, wages and incomes fall. when

incomes fall, the capacity to repay debts is diminished. that, for me, is the real anxiety that banks have not been restructured and managed in such a way to ensure the own lending into the real economy and not this speculative economy. that is something that has been looked at and banks have been encouraged to dip into their reserves to increase that lending. how can you make it happen? the regulators have looked at capital buffers but not why and for what they are lending. that... that is what lending is for is important. if it is for gambling and speculation, you can be sure it is going to inflate assets as it does property and it is going to end in tears. if it was for productive activity that generates employment and income, it is a different outcome. they do not think they have to manage banks. i do not maybe

agree with that. china are making a hash of it in their way, too. if you have a market—based system i think you have to allow for or accept that banks will lend money to people who wa nt banks will lend money to people who want it. part of the reason small companies are not borrowing for investment has a lot to do with them not wanting the money and brexit is creating uncertainty. the issue... i do think the architecture has changed sufficiently to two from 2007 to make us at least not complacent but comfortable, shall i say, that the systemic crisis we had in 2007... we did not —— these things do not happen that often. the growth has been slow but once growth

picks up, is a boost and bum cycle inevitable? we have had a lacklustre growth. that is not to do with bank lending. —— boom and boost. hopefully, there is blue water before the financial crisis. i think and is right that the lending to consumers for credit cards and the borrowers have a role to play here as well. i think these will cause problems in the next recession which will happen in one year or two.” problems in the next recession which will happen in one year or two. i am not in favour of state lending. i am not in favour of state lending. i am not in favour of state lending. i am not in favour of the chinese model. we used to have forms of regulation

of the banking sector that insured banking went into income generating activity and we had high levels of growth and high level of employment. we need to go back to that, in my view. the banks don't want that to happen because you can make more money as a financier with speculative lending and activity. you can make capital gains. making profits from patient long—term lending takes longer. we have to encourage banks to do that and the authorities should be doing that because the market will not. the market encourages them to go in for what is costly speculative lending. it has been so interesting to speak to you both. george, you reckon a recession in the next year?” to you both. george, you reckon a recession in the next year? i think it is very likely. the expansion is quite old and although there are not immediate causes of concern, it is very likely the whole process of

brexit wilton is over at some point. today at 3.30pm on bbc news we will be putting your questions —— will took us over at one point. today at 3.30pm on bbc news we will be putting your questions about the financial crash to our business editor simonjack. if you have a question you can get in touch via twitter using the hashtag #bbc ask this or text your questions to 61124 and you can email us as well at askthis@bbc.co.uk the headlines on bbc newsroom live: north korea says its considering launching a missile strike around the us pacific island of guam — it comes hours after president trump warns further threats would be met with ‘fire and fury‘ like the world had never seen. six soldiers have been injured, two seriously, after a car drove into them in a western suburb of paris. they were on patrol as part of an operation set up after the charlie hebdo shootings in 2015. and 500 new medical school places will be made available in england next year, as the government attempts to boost the number of home—grown doctors in the nhs.

tonight a special production of les miserables has its premiere in batley, west yorkshire. it was the favourite musical of the murdered mpjo cox and is being performed in her honour by school children from her old constituency. with a six figure budget and a team of experienced west end professionals behind the scenes, this is no ordinary piece of youth theatre. 0ur entertainment correspondent colin paterson was at one of the final rehearsals. music # and the sun in the morning set to rise... it‘s the west end in west yorkshire, all to honour the late mpjo cox. what you can do for me, guys, is give me that energy... the west end director nick evans came up with the idea of putting on a show using children from jo cox‘s constituency. i wanted to show the people

of batley and spen, and the wider communities around there, that people right across the uk, and in particular the west end community, cared about what happened. so i dreamed up a project to do les miserables in a warehouse in batley and spen, in the townjo cox grew up in, in the town she represented, and using the young people of west yorkshire to tell that story, and provide a narrative of hope. and the idea is that although it‘s youth theatre, everything is to be of a west end standard. the set is amazing — obviously we've got west end directors and musical directors working on it, so you're working with these really professional, experienced people. even the costumes were worn by the west end actors. so trying on my cosette dress was insane, because i was like, this has been worn on a professional stage. on the night i'll be cueing every department in the show, like, sound, light, props. and as soon as i say it, they can do it, they can't do it until i say. that‘s quite a lot of responsibility for a 15—year—old.

yeah. but i'm with the west end professionals, so if i do get nervous or mess up, they can take over, which is good. singing jo cox was a big fan of musicals. the late mp‘s seat was taken over by coronation street actress tracy brabin, who says les mis was the perfect choice. i spoke to brendan, jo‘s husband, and he said that they used to play the musical in the car, so the kids knew all the words, it was herfavourite musical. it‘s about passion, it‘s about being a comrade, it‘s about politics, and working together, having a vision. i think she‘d find it very powerful. singing # my days with endless wonder... and many of the cast had met her. how much did you know aboutjo cox? i knewjo quite a lot.

she would come and visit our school quite frequently. i met jo about five or six times myself, and she was a lovely lady, she was really passionate. this is such a great inspiration to do for her, in honour of her as well. singing this les mis is on until saturday, but it is hoped the new youth theatre will continue, and provide a lasting legacy for a much—loved mp. colin paterson, bbc news, batley. coming up on the one o‘clock news, all the very latest on the situation with north korea and the situation in paris after the attack on soldiers. the secretary of state has

been an guam and speaking about the escalation between donald trump and kim jong—un. he says there is no imminent threat. diplomatic tensions have got ever higher. we will have the latest on that and the reaction to it injust the latest on that and the reaction to it in just the few moments. right now let‘s catch up with the weather. one day on the calendar and two very different days of weather. the best of the sunshine to be found in the north and west. that was the scene earlier on today. more cloud ahead from this weather watcher. the reader picture shows we have had heavy rain across parts of england. this band of rain moving slowly. the wet weather will be consistent

across east anglia. the odd flash of lightning and rumble of thunder and the potential for travel disruption with the potential for flash flooding. 15 celsius. for wales, northern england, cloud around but the prospects are driving around the rest of the day. sunny spells across scotland. temperatures for glasgow and belfast may be 20 celsius. tonight, those dry conditions will spread further south. rain coming on across kent. as the skies clear, it will turn chilly particularly out in countryside. for celsius in some northern and western areas. a cold start to thursday morning but a bright start for many. this high—pressure taking charge of the scene, some fine weather to come. so

ta ke scene, some fine weather to come. so take back some spells of sunshine. most of the sunshine around coastal areas. rain eventually clearing from the far south—east of england. 22 celsius. nothing to write home about but it will not feel that bad. it stays fine into the evening, including across the south—west of england. it should be dry in plymouth with clear spells into the evening. a change for friday. rain will come in from the west. strong winds and gales for a time in the north—west. that does not bode well for the weekend, you think? but they should be an improvement. largely dry with some spells of sunshine. the united states and north korea are urged to show restraint, as tension increases around the threat to hit a us airbase in the western pacific. the trump administration

has defended its strong message to north korea. it says the president had to use language the regime would understand. they will be met with fire and fury the likes of which the world has never seen. us secretary of state has now arrived in guam. we‘ll have the latest from washington and seoul. also this lunchtime: six french soldiers have been hurt after a car drove into them near paris. the local mayor said it was a deliberate act. athletics‘ governing body defends its decision to stop a medal favourite competing at the world championships after the norovirus outbreak. the runner tells us he‘s heartbroken.