live from london, this is business today. i'm sally bundock. abc show. we have the bank of england meeting as well today. we start in the us where the central bank did what most analysts predicted and cut interest rates for the third time this year. but it was whatjerome powell had to say about next year — the chair of the federal reserve — that spooked markets. the rally on wall street came to a dramatic halt as investors digested the prospect of fewer rate cuts in 2025. so now in the worlds biggest economy the key lending rate is in a target range of 4.25 to 4.5%. that's despite us inflation hovering at around 2.7% which is some way above the fed's target rate of 2%.

jerome powell explained the decision, suggesting it was a tricky balance to strike. i would say today was a close call but we decided it was the right call because we thought it was the best decision to foster the achievement of both our goals and the maximum employment price stability, we see the risks is resided and moving too slowly and undermining economic activity in the labour market and remove to quickly. we are trying to steer between those risks, so what is really driving the slower rate cut path, is growth is stronger, the economy grew faster in the second half of the year, so far, than we expected, and as expected to be above our expectations in september next year as well. unemployment is lower and in

the sep you will see that participants think that the downside risks are less in uncertainty. inflation is higher, it is higher this year, and higher in the forecast next year, and also pointing out we're closer to the neutral rate which is another reason be cautious about further moves. following the press conference the market song. so let's take at the close on wall street. more than 3% loss on the day. this is the worst day for these markets in months after the rejection from the federal reserve. let's take a look at what is going on now in asia and the markets there. let's cross live now to singapore and sura njana tewari. we see a reaction where you are as well? , �* , . we see a reaction where you are aswell? , a. , we see a reaction where you are aswell? , , ., as well? yes, asian stocks are following _ as well? yes, asian stocks are following what _ as well? yes, asian stocks are following what happened -

as well? yes, asian stocks are following what happened on i as well? yes, asian stocks are i following what happened on wall street on the back of the us federal reserve cautioning it would ease the pace of rate cuts next year. not as big a drop, the nick cave currently down just drop, the nick cave currently downjust under 8%, 0.5%, drop, the nick cave currently downjust under8%, 0.5%, and down just under 8%, 0.5%, and in downjust under8%, 0.5%, and in hong kong down 0.6% but we have had another great decision in this part of the world which it did sway markets as well, the bank ofjapan deciding to keep rates steady. it caused the year a week into a one—month low of 155.43 per dollar, which is down more than 8% this year against the dollar and is set for a fourth straight year of decline. the strong dollar along with high interest rates has put pressure on the currency and that is despite the rate cuts, the big question here is what will the bank ofjapan do next year and will there be any more rate hikes? the policy decisions coming from both the central banks really underscore the

challenges facing the global economy as the biggest participant, the us, comes under president—elect donald trump's leadership in the new year. the fed share actually spoke about how officials actually contemplate the impact of the trump plans such as higher tariffs and lower taxes on their policies while the bank ofjapan a governor has highlighted in the past that the trump policies are a risk, another big concern in this part of the world the korean one which is voluntary the weakest level in 15 years, partly because of the fed or she stands on more interest rate cuts next year but also domestic political and uncertainty after the martial law crisis there a few weeks ago. law crisis there a few weeks a . o. . ~' law crisis there a few weeks auo. . ~ , ., law crisis there a few weeks auo. . ~ _, . craig erlam is an independent market analyst. it felt grim on wall street, a

significant decline for stocks but let's put it in perspective, these markets have been on a roll significantly since donald trump was elected, haven't they?— haven't they? they have, and we haven't they? they have, and we have to put _ haven't they? they have, and we have to put that _ haven't they? they have, and we have to put that interest - have to put that interest perspective. but we have seen previously and whether stock market has formed, the larger declines can happen but i think this is a story of the readjustment of interest rate expectations and we have seen this so many times before, people can get carried away with where we think interest rates will fall to based on the incoming data and then sometimes we see the expectations gradually halted themes is what we see now. not just talking about the us, talking about the uk as well, the idea that inflation is still above target and has been rising again, things like services inflation is still hot, the risks to inflation going forward maybe are tilted to the other side more so now, and central banks have the interest rates they will act

more cautiously and you can see that reflected in those expectations from the fed perspective around 0.5% next year but also in the markets looking a little less than that as well so it seems that from the market perspective in the fed perspective they think they are near the end of the easing cycle for now. are near the end of the easing cycle for "ow-— are near the end of the easing cycle for now. obviously jerome powell has _ cycle for now. obviously jerome powell has to _ cycle for now. obviously jerome powell has to tread _ cycle for now. obviously jerome powell has to tread carefully - powell has to tread carefully certainly for the next few months with donald trump being inaugurated on 20 january and the impression we get from a donald trump and his team is they will hit the ground running, because he tariffs put in place swiftly, other measures that will impact inflation going forward? it is alwa s inflation going forward? it is always important _ inflation going forward? it is always important to - inflation going forward? it 3 always important to remember that he is coming to a different environment than last time, the last time he was in office when he was imposing the tariffs and cutting taxes, inflation was a very low and the difficulty for the central bank was generating inflation to get it back toward the 2% target rather than keeping it at or below. it is —— it will

be interesting to see when we do see these tariffs and the tax cuts as well what inflation we will have this time compared to last time and ultimately what that will do because tax may be cut but if that is compensated for by higher interest than will people fill ultimately better off? super, thank you — ultimately better off? super, thank you so _ ultimately better off? super, thank you so much _ ultimately better off? super, thank you so much i - ultimately better off? super, thank you so much i have - ultimately better off? super, thank you so much i have a l ultimately better off? super, - thank you so much i have a good day. here in the uk we will be hearing from the bank of england later as it meets for the last time this year to decide whether to continue to cut interest rates. in november, the central bank cut rates from 5% to 4.75%, the second reduction in 2024. on wednesday official figures showed the uk inflation rate has gone up for the second month in a row. let's hear now from simon french, chief economist at panmure liberum. nice to see you. i assume you believe rates will stay unchanged today in the uk? yes,

there was no _ unchanged today in the uk? yes, there was no real _ unchanged today in the uk? yes there was no real expectation there was no real expectation the bank of england will follow the bank of england will follow the federal reserve and the other central banks because you mention some of the inflation data we have this week, obviously headline inflation quicker on what we saw in october, and similarly also wages data which is probably the key data point for those members of the bank of england committee are worried about core services let inflation, thatis core services let inflation, that is running north of 5% so they will still i expect when they will still i expect when they reveal their discussions talk in terms of gradual reductions going into next year. reductions going into next ear. ., ., , ., reductions going into next ear. ., ., ., year. for our viewers at home, make sense — year. for our viewers at home, make sense of _ year. for our viewers at home, make sense of the _ year. for our viewers at home, make sense of the markets - make sense of the markets because yesterday we saw the costs soaring, approaching levels not seen since the 2008 financial crisis. this makes government debt and other things are expensive. talk us through what is going on there and what that is telling us about what the bank of england might do next year?— about what the bank of england might do next year? there are a few things _ might do next year? there are a few things going _ might do next year? there are a few things going on, _ might do next year? there are a

few things going on, the - few things going on, the absolute question, first and foremost globally around the world just a discussion about the us federal reserve and the impact of the us economic policy—making, that is seen as quite inflationary for pushing up quite inflationary for pushing up government debt around the world, then there is a specific overly of the uk and what is going on regarding an expansionary budget revealed at the end of october which involves more borrowing, several more borrowing the price has got to be lower, the yield has to be high your on that debt to get investors interested in buying it. there is roughly a third aspect as well which is the competition for investments and, of course, if you get investing in that you have the option of other sovereign debt, you have the option of shares, also crypto assets and alternative assets, it is they have to competition out there for where investors put their money and not all of them are pushing it into government debt which is pushing the price down in the yield higher.

pushing the price down in the yield higher-— pushing the price down in the yield higher. what is your take on next year — yield higher. what is your take on next year for _ yield higher. what is your take on next year for both - yield higher. what is your take on next year for both the - yield higher. what is your take on next year for both the uk . yield higher. what is your take j on next year for both the uk in on next yearfor both the uk in the us because it feels like there is a tale of two economies, going a different direction from that we should go in the same direction necessarily but the us and the markets are booming, there was talk of investments and companies wanting to invest in various sectors are booming whereas in the uk the conversation is about how tough it will be next year especially given the changes they kick in in april? it given the changes they kick in in aril? , ., ., given the changes they kick in in aril? , . ., ., given the changes they kick in in aril? , ., ., ., ., in april? it is a tale of two economies _ in april? it is a tale of two economies and _ in april? it is a tale of two economies and the - in april? it is a tale of two l economies and the difficulty for people in the financial markets is typically though central banks move as they heard, they moved together, and the prescription of monetary policy of interest rates in the us looks like it will be pretty significantly different to not just the uk but the european area which is less slower growth trajectory. not as pessimistic as most people for the uk economy next year, yes, the uk economy next year, yes, the rhythmic adjustments to the first change of government in a

14 years, we see that in every election, the economy slows, but i expect to see in the middle of next year some of the public sector spending that they are will come on the stream and the private sector will start to assess what it is dealing with.— dealing with. thank you so much. good to _ dealing with. thank you so much. good to see - dealing with. thank you so much. good to see you. i the belfast—based shipbuilder harland & wolff is set to be saved in a deal to be confirmed later in parliament. alljobs are expected to be saved after the firm, famous for building the titanic, is sold to spain's state—owned shipbuilder navantia. here's our business reporter david waddell. belfast most famous exports, the rms titanic, she was at the time of her maiden voyage in 1912 the biggest, most luxurious ship in the world and built by one of the world's most important shipyards, harland & wolff was the engine room of the economy, launching

1600 ships between the middle of the 19th century and the present—day, despite the rich history of this company is sailing through choppy waters. until last year it had not built a new ship in over 20 years and he focus is settle maintenance and refits. the company collapsed into administration in september for the second time in five years. it has been struggling to pay the interest on debt burdens in relation to any contract, three ships were there exhilarating. the buyer navantia has been offered more favourable terms to complete the project to be carried out in devon, the spanish port city, and with final assembly in belfast. the deal is to be presented as early freeze so if the government post—brexit research, microwave has been a recipient of funding from the european commissioner defence fund wish the british government would like to sign up government would like to sign up to. we've been hearing a lot this

year about the trials facing thames water. this is the uk's largest water and waste water company serving a population of 15.5 million people, or over half of england's population. but it's been struggling financially with exceptionally high interest rates on a debt burden of some £16 billion. later today, the regulator 0fwat is to make a decision on whether the company may increase bills for customers by an average of 53% over the next five years — seen as crucial to its survival. but with the company accused of mismanagement of its finances and its network, there's every chance it could be forced into administration. this is also play for today. from king's college london, dr ewen mcgaughey has been researching public utilities and thames water in particular. good to have you with us. what

is your expectation today? will 0fwat allow water companies, not just 0fwat allow water companies, notjust hams but all the companies across the uk to increase their bills?- companies across the uk to increase their bills? yes, last niuht increase their bills? yes, last night the _ increase their bills? yes, last night the guardian _ increase their bills? yes, last night the guardian leaked - increase their bills? yes, last| night the guardian leaked the news that 0fwat will probably allow thames water to increase their bills by 33% or more, the water companies, that is less than the asking for, but about 6% more per year when thames water has 350 pollution since last year, and has been fined for paying out dividends legally to the shareholders are now racking up £90 billion worth of debt. water companies across england want a builder is a 40% and probably will get that if the trend of 0fwat continues and it will be less. the big question is why 0fwat

is allowing build rises when bill payers are getting worse and worse, so we have worse outcomes than albanian hour, fit both in europe, and so does not make sense. the alternatives is for 0fwat to see that water companies that pollute too much lose their licenses and get put into special administration and the banks holding water companies and bill payers ransom can be made to take a cut because all these debt interferes with proper investment in water infrastructure to make our rivers, beaches clean. you talk about the _ rivers, beaches clean. you talk about the alternative _ rivers, beaches clean. you talk about the alternative and - rivers, beaches clean. you talk about the alternative and i - about the alternative and i imagine people watching this programme in the uk who pay the bills every month and they have gone up enough and will go up again next year, despite the fact that service has an improved. they will be with you in a saying hang on a second these companies have failed in

their management and therefore should they be allowed to increase the bills and carry on with the way the manage these businesses? if with the way the manage these businesses?— businesses? if you get a plumber _ businesses? if you get a plumber to _ businesses? if you get a plumber to fix _ businesses? if you get a plumber to fix your - businesses? if you get a - plumber to fix your bathroom and you come back when the job is meant to be done and there was water everywhere and sewage on the floor you are not higher than plumberagain, on the floor you are not higher than plumber again, you would cancel the contract, and that is precisely what the water industry act allows the sector or 0fwat mac with the minister consent to do. i will point do we say stop? the water companies lose their licences? we are almost out of time but it has to come from the government, they have to step in, and has this government — is it likely to do that? the debate has been going on for years about the fact that water needs to go back into a public hands, really.—

hands, really. one of the thins hands, really. one of the things that _ hands, really. one of the things that the _ hands, really. one of the things that the treasury l hands, really. one of the | things that the treasury is worried about is adding to the amount of money that the 22 billion pounds black hole water companies around england in the late 2023 have combined £60 billion worth of debt but the thing the government really needs to grasp is they can force the company into special administration to have the assets transferred you a new entity and not pay off even the secured debt to banks which have consciously and deliberately loaded companies up deliberately loaded companies up with debt to get massive interest payments instead of paying out dividends to shareholders. that debt can be given a haircut and that is precisely what should be done because banks are the risks they are taking, they have gambled badly, and the whole bill payers in england to ransom so the existing law should be used, the treasury

should be used, the treasury should be used, the treasury should be confident that it does not have to take on all the reckless debt that water companies have assumed and that is the way that we can get more infrastructure investment and clean rivers and beaches and lakes. ., ~ clean rivers and beaches and lakes. . ,, , ., clean rivers and beaches and lakes. . ,, i. ., clean rivers and beaches and lakes. . ,, ., lakes. thank you for your time. that was the — lakes. thank you for your time. that was the decision _ lakes. thank you for your time. that was the decision coming i that was the decision coming later today, thejudgement looms, water bills etc go up, will be across that today on bbc news. around the world and across the uk, this is bbc news.

the chief executive of the online investing platform robinhood has accused the biden administration of mounting a relentless assault on the crypto industry. vlad tenev started robinhood as an online stock trading we woke to diversify the

business to make sure we are a strong growing company across all environments regardless of whether a democratic administration or republican, regardless of the high interest rates although. sometimes there are things that help the business and i think having a clear regulatory framework behind crypto where we wanted one of the leaders in the us is going to be very helpful, not just for us as a business before the industry which has been under relentless assault from the current administration. it from the current administration. , administration. it has been said you — administration. it has been said you one _ administration. it has been said you one of— administration. it has been said you one of the - administration. it has been said you one of the biggest winners from the trump election when and just thinking about who donald trump is bringing into his administration, the likes of the department of government efficiency libre elon musk, how do you see that for your business? it is strong. _ for your business? it is strong, generally - foryour business? it 3 strong, generally speaking efficiency and making the government run more smoothly, i am a huge believer in that and i think that it could not only

save costs and the costs have been increasing tremendously but notjust been increasing tremendously but not just the been increasing tremendously but notjust the costs, it is reducing the friction to the us being the market leader in new innovative industries, crypto we mentioned but also ai innovative industries, crypto we mentioned but also aland ultimately it will be the combination of cutting costs but also putting in place policy that make america the best place to do business which ultimately will drive gdp growth and i think we can do both in this country, i do not think we have to pick one or the other. now, before we go, lets talk about smellies. the uk fragrances market has reached an estimated £1.7 billion this year and is on track to surpass £2 billion by 2029. fragrance is one of the most popular choices for christmas gifting, and the six weeks from black friday to christmas eve is the busiest time of the year for retailers. rachel goalby is chief marketing officer of the fragrance shop, the uk's biggest independent fragrance retailer. how was it going? christmas is

not of the _ how was it going? christmas is not of the most _ how was it going? christmas is not of the most important - how was it going? christmas is | not of the most important times for our business and the fragrance industry, uk consumers buy fragrances as a number one gift that we expect to take about 37% of our total business at this time of year in those six weeks between november black friday through to christmas eve.— to christmas eve. what drives the sales? — to christmas eve. what drives the sales? is _ to christmas eve. what drives the sales? is it _ to christmas eve. what drives the sales? is it you _ to christmas eve. what drives the sales? is it you do - to christmas eve. what drives the sales? is it you do with i the sales? is it you do with what is happening on social media? ~ ., , what is happening on social media? ~ . , ., , ., media? we have seen a surge of interest in _ media? we have seen a surge of interest in fragrance _ media? we have seen a surge of interest in fragrance this - media? we have seen a surge of interest in fragrance this year . interest in fragrance this year especially on tiktok so what we really see is jan z speaking our fragrances on tiktok are coming to the store to purchase so valentino, we have seen a huge drain on tiktok and that has resulted in a 94% increase in sales today. i5 has resulted in a 94% increase in sales today.— in sales today. is our particular— in sales today. is our particular influences | in sales today. is our - particular influences have who have been talking at whatever fragrance they are really into thatis fragrance they are really into that is dripping the surge in demand?—

that is dripping the surge in demand? ~ . ., , , that is dripping the surge in demand? ~ . . , , ., demand? what we have seen is a urowth of demand? what we have seen is a growth of the _ demand? what we have seen is a growth of the experts, _ demand? what we have seen is a growth of the experts, tiktok - growth of the experts, tiktok experts, where you have an influencer or a creator, the experts are now talking about the longevity of fragrance, how long they last and yours in and there was lots of communities engaging right down to young teenage boys as well. for fragrances _ teenage boys as well. for fragrances they _ teenage boys as well. for fragrances they are - teenage boys as well. for fragrances they are not achieved, it is quite an expensive thing to purchase especially for young teenage boys. admits this cost—of—living crisis it is interesting that you have not seen a drop—off in sales? the seen a drop-off in sales? the consumer— seen a drop-off in sales? the consumer has _ seen a drop—off in sales? tue: consumer has evolved seen a drop—off in sales? tte: consumer has evolved and seen a drop—off in sales? "tte: consumer has evolved and a shift is over your focus on price and value so one way we have approach that is our membership programme where we have for that power of christ back into the consumer hands, so they can pick when they get the discount and that has given us 1.3 members and 50% of our sales mix for the business. the other area the focus on is value, so the elixirs, they are

really growing in popularity so we have seen about 35% sales increase in the mix, consumers are looking for something that lasts so they spend a little bit more a fragrance that will really larceny long—time stop you are on the high street, the fragrance shop, what is the next year looking like on the high street? aha, next year looking like on the high street?— next year looking like on the high street? a lot of new cost cominu high street? a lot of new cost coming in _ high street? a lot of new cost coming in in _ high street? a lot of new cost coming in in the _ high street? a lot of new cost coming in in the new- high street? a lot of new cost coming in in the new year? i high street? a lot of new cost | coming in in the new year? we have our— coming in in the new year? - have our membership programme where she is more than 50% of our business so we are looking to engage those loyal customers that come in and shop with us regularly and, of course, engaging more and more new young customers like the young demographic thatjoin the demographic that join the industry demographic thatjoin the industry that are really excited so it is about engaging with the customer and make sure we have new brands and new intense fragrances to offer them so that we can meet our customers at every price point we are looking for.— we are looking for. thank you

very much- — we are looking for. thank you very much- is _ we are looking for. thank you very much. is a _ we are looking for. thank you very much. is a really - we are looking for. thank you very much. is a really busy i we are looking for. thank you | very much. is a really busy for business news, so here news we will keep you up—to—date on what the bank of england decision is at noon local time. hello. after the overnight rain across england and wales, thursday promises to bring lengthy spells of sunshine. it'll be a little on the chilly side, particularly across the north of the uk with a noticeable breeze, but overall, not a bad day. now, here's the satellite picture of that weather system earlier on, spreading across the uk. the rain has been mostly across the southern half of the country — in the north, we've had showers and clear spells. by the middle of thursday, that weather front is way towards the east of us — and in its wake, we're in that north westerly airstream. so, this is what it looks like early in the morning — still the remnants of the rain there across east anglia,

but 1—2 showers also further towards the west. frost—free for england and wales, typically five celsius, closer to freezing in northern ireland and scotland. so here's that weather, then, on thursday — sunshine, particularly across eastern and central england, but notice a few showers in scotland, and 1—2 elsewhere. but on the whole, a fine day. the temperatures — around eight for cardiff and for london, about that for liverpool. in edinburgh and belfast, it'll be a shade cooler than that. and then, friday, we're expecting more rain to sweep in. this next weather front crosses the country — middle of the day, it'll be in central areas of england. gusty winds for a time, too, before it clears away and the skies turn clear, as well. now, let's have a look at the forecast for the weekend, because it will be very blustery. a nasty area of low pressure is expected to sweep just to the north of us — it'll introduce really strong winds to northern and western scotland, and really blustery elsewhere. 60—70mph gusts there in the north of scotland, 50mph across many

central parts of the uk. the temperatures may reach 12—13 in some spots — but, because it'll be windy and there'll be showers, some of them wintry over the hills, it won't feel particularly warm. and it's notjust saturday that'll be windy, another very blustery day on sunday to come — look at that, gusts approaching 50mph further south, too. but it will be colder on sunday, you really will feel that wind chill. those temperatures will dip to six celsius — add on those 40—50mph gusts, and you'll need your thick coats. now, here's christmas week — it turns out that christmas day will be about the mildest day, but it is going to be generally settled. bye— bye.

good morning, welcome to breakfast with naga munchetty and charlie stayt. 0ur headlines today. water bills set to rise by an average of at least 20% in england and wales, to fix problems with pollution and shortages. the regulator says it wants to deliver a better service for customers. it comes as nearly 60,000 homes and businesses in southampton are without water in the run up to christmas. a supply fault could last until the weekend. behind the scenes with the gps tackling winter pressures as seasonal viruses take their toll.

the bank of england is expected to hold off cutting interest rates when it announces it latest decision on the cost of borrowing today. i'll look at what it'll mean for your loans and mortgages. from one goal all season to three in half an hour. gabrieljesus comes to arsenal's rescue as they make it through to the semi—finals of the league cup. what if i told you that in our room there's a hidden door that leads to a secret passage from which you can spy into people's rooms? a wartime mystery for the famous five. bringing enid blyton's classic stories to a new generation this christmas. good morning. it is a sunny day to day that we have had of late, still some showers in the north and west, some showers in the north and west, some wintry in the hills, blustery winds and feeling cold. all of the details shortly. it's thursday, the 19th of december. our main story.

households in england and wales are expected to see their water