the england governor. the bank will have to evaluate a capital increase. >> good morning, everybody. and welcome. welcome. it's a big day today again. >> it is. >> it's always a big day. >> quite exciting to hear all the appointments filter in. >> can you below it. >> boris johnson when we first saw the picture of boris johnson going to 10 downing street. everybody had a gasp. there you have it, secretary. >> you can say she's being smart. people who wanted to leave the eu, given she wasn't. it's going to be a mixed cabinet. >> you can say smart on the one hand and perhaps she is just answering to the voters as well if you want to go with a line of democratically, the vote was to leave so that is her way of saying i'm acknowledging it and

perhaps this will calm some of the storm. >> now, also of course mark carney right after the hearing where he said look, it's important for us to be able to talk to the chancellor. there shouldn't be a no private talking between the head of the bank of england and now they're meeting today. >> busy day for us as well. stock share up 600. by and large, equities seeing a bit of buying here this morning. when it comes to the european markets, everything is in green except for ireland, trading a bit lower. little more when it comes to the cac and ftse mib. another record when you look at

the douw and s&p. it was a modest increase, but a record nevertheless. we do have autos up. banks higher by 2%. i'm going to keep the focus on banks today. j.p. morgan will be kicking off banking earnings for the u.s. sector. that's later this mpb. we have basic resources higher by 2%. and gosh and oil higher despite the dip yesterday. we are seeing gains in wti and brent. with the bank of england, all eyes will be on the sterling trade. as you can see sterling higher by about.5%. calling for expect tagtss that the bank of england will in fact cut. it is the first meeting, keep in mind, since the referendum vote. we are seeing cutting rates to a new historic low. that comes according to a

reuters pull. it is a fairly slight majority when you look at that call. it would be the first rate cut in seven years as the central banks seeks so cushion a fallout from the brexit vote. let's go to jeff outside the bank. awaiting that decision. the consensus is calling for a cut, but when you look at the moves in sterling here, you have seen other voices saying mark carney maybe waiting for additional data. what's you take? >> reporter: it's a bit of a ka none drum, but fortunately it's not one i have to figure out the answer to. i have david page with me. they're just pointing out in the studio the challenge here. the market is expecting a 25 basis point cut, but sterling is strengthening through the session this morning. what does that tell us, that contradiction. >> i think it reflects the contradiction you see within the analysis.

effectively it's a 50/50 split. there's another 50 percent that doesn't think it happens until three weeks time. if they do it today or three weeks today is probably not that big. >> what is the market going to do if we actually get that announcement as your forecasting. ever since carney started taking after post-brexit, people are thinking it's going to change policy ralt. >> steve: the minutes that will be released today will probably dwight clearly sgag if he doesn't move there's a likely move coming in august. the august lets him reflect what's happening post referendum, but also to look at their own forecast and on top of

that get the opportunity to tell the pluublic through the press conference what they're trying to do. rates will probably fall back effectively to zero and we fully expect the bank to do more than that. i think one of the risks perhaps of moving today is those expectations get brought to the meeting. >> why are you so pessimistic about the outlook given that we have very little hard data so far as to what brexit has meant for the economy. >> well, it's not obvious you can see anything positive, especially in the sort term. we have seen a fall in housing markets. consumer confidence fall back. initial evidence is negative, but it's our expectation of

what's going to happen. the uncertainty of the uk economy is likely to weigh on investment, both domestic investment, but more importantly foreign investment. and ultimately we see the fall in sterling pushing inflation higher and squeezing household spending as well. that's why the economy falls back to near recession conditions as we move to next year. >> there's a new element in the equation right now. he's call fphillip. the new chancellor. what difference do you think he the going to make for the uk for economy herehere. >> i don't think they can afford to wait and see what he is going to do. he's ruled out emergency budget. even at that stage, it's unlikely he's going to have to

provide. that really narrows his space for fiscal maneuverability. although he himself has been a fiscal vote. theresa may seems to be showing a different manner. >> david, the markets are feverishly speculating as to what any further qe might look like at this stage or whether there might be a new funding for lending program. what's your best guess as to what else is being prepared. >> reporter: i think much of it just looks at how the market looks at other central banks and applied that to the bank of england. i'm not sure thals appropriate. certainly if we think about the concerns the bank might move to credit for example. the bank has plenty of scope to buy guilds and the last time it ventured into the corporate market it didn't have a successful time. we're not sure it wants to easy into a credit easing policy.

funding was designed to address the supply issue back if 2012 and at this time there is no evidence we see a deterioration in funding to the bank. we don't see it following that path either. carney is going to retain kpl reference tools. he doesn't look obvious the bank is going to lock and load on these tool, either today or in some time. >> assuming we get a breakdown of the banking crisis in europe or in the united states, where do you think we're going as far as serterling is concerned throh the rest of the year. >> reporter: i think there will be continued downward pressure. i think ultimately once we start to see the scale slow down in foreign investment, we do need to see an adjustment come see the scale of monetary easing put in

place, we could well see sterling drop to 1.20. there are other issues that could put more downward pressure. on a steady state basis we expect to see around 1.20, 1.25. >> thank you so much for that. i think it will be a stay occasion for me if we're going lower than 1.30. >> slou is nice, i hear. slou is what, 45 minutes west of london. >> doesn't look to keen on that one. >> thanks you. we have decision time which is our live programming we're taking, we're bringing you to cover the bank of england rate decision. that starts at 1300 cet to do tune in then.

>> theresa may tesays she inten to fulfill the weal of the people by taking them out of the eu. may explained that brexit negotiations would take time to prepare for. during her first speech as leader. may emphasized the changes in britain. >> following the referendum we are faced with a time of great change. i know because we are britain we will rise to the challenge. as we leave the european union, we will forge a bold new positive role for ourselves in the world and we will make britain a country that works not for a privileged few, but for every one of us. that will be the mission of the government i lead and together we will build a better britain. >> it really puts things into perspective. not your ordinary first day on

the job when you're talking calls with the german chancellor and president. we're always filling out hr forms. >> changes of plenty in theresa may's new cabinet. prominent brexiteers: boris johnson, lie yam fox. a widely expected move meanwhile phillip ham monowas appointed chancellor while amber rud takes on the role of home secretary. i know we're asking about boris johnson. what was your reaction to him being appointed. >> interesting one here is the global reaction to it.

especially when you lock at brussels and the european leaders, what they will have to say. >> i'm trying to envision foreign policies on a global level. stre hammond added there was no need for an emergency budgets. >> the task are handling britain's brexit negotiations. david davis the right wing politician said article 50 should be triggered before or by the beginning of next year. that could come to the dismay of many set sitting many brussels who wanted it as soon as possible. also confident in securing terror free access to the single market. meanwhile, one of the most surprising announcements of the night came with boris johnson's appointment of foreign secretary. the former leave campaigner was

widely tipped to run for prime minster before ruling himself out. speaking afterwards he expressed delight at his new role. >> very humbled. very proud to be offered this chance. made a wonderful speech this afternoon about her ambition of the country. i completely agree with her sentiments and about opportunity and about giving people better life chances. clearly now we have a massive opportunity this in country to make a great success with the relationship with europe and the world. i'm excited to play a part in that. >> as said, we are taking a break, but head to facebook because we are asking the following questions, what's your reaction to boris johnson's appointment as foreign minster. take part in our poll on facebook page. more to come for you. v if you're watching during the break on facebook life. for the rest of you, we'll see

you in a couple of minutes.

>> reporter: i'm joined now to discuss some of these appointments. >> ruthless times, well fred. >> i didn't even ask a question. >> i thought business was ruthful. this is incredible. >> how surprised are you to see boris johnson. >> you got us into this mess, boris now get us out of it. partially. his portfolio has been sort of cut into three parts, i guess.

>> let's just focus on that brexit negotiation because as a big business leader, how quickly do -- certainly bigger standing on this box. >> as a business leader dorks you want to see these negotiations happen quickly or are you of the view they can sort of back out of it. >> that's the ka none drum or die lem ma that what we want in business is certainty because uncertainty is the enemy of growth. we want clarity. from a government point of view, they never wanted me, if i was, i would want to postpone the vooefl day and try to negotiate. this is the deal that might spin out for four years, six years. whatever it was. it could certainly spin out for two years at least. so government i think wants probably to prolong it. business wants in. i know phillip hammond in an interview said he was going to

try to get it done as quickly as possible. i don't think that's feasible. if i was on the other side, i would be pushing hard to try and trigger article 50 and get the process on. there's basically a dilemma between what business wants and i think what government can do because i think in the negotiations are going to be very tough. if i was on the other side, i would make it as difficult as possible. >> markets have rebounded from their lows post-brexit and the pound -- >> yes, at an all-time high this morning. >> congratulations. >> i don't know about congratulations, but in dollar terms we're back to where we were. it's roughly where it was before we got into brexit. >> do you think markets and investors have recovered some confidence since the initial fallout. >> the appointment or theresa may or the succession of theresa may has made a difference. sterling has strengthened a bit.

i think what happened a couple of weeks ago had a serious impact on the uk economy. if you listen carefully to the bank of england and to mark carney and you listen carefully what phillip hammond said a few minutes ago, all the data that we've got over the last two weeks and much of it is bitty. it's random samples indicates that confidence, consumer confidence and corporate confidence was broken or battered by what happened a couple of weeks ago, for good or bad. certainly in the short time businesses are looking in the short times for excuses not to do things and the key issue is to restore long-term confidence so i would be looking for the government to put together a comprehensive plan that covers all the basic areas of education, science, technology,

tax policy everything we know about, but to do it on a chinese basis long-term. and to shift to short term. >> now, there's been some rhetoric from the prime minster and chancellor about clamping down on executive pay. >> my view has always been pay for performance. we've been at this for years. we built an economy. anything it will prime minster, the chancellor, the government does to focus people on the long-term. if worker representation on boards or consumer representation are on boards or changing the basis of pay, making it more performance oriented, if that encourages people to look at the long-term, amm amen to that. we would be very supportive. the problem we see is focus on

the short term. the ones that make the long-term decisions and lock into the future. companies like comcast, companies like rue rupert mur dock. zuckerberg, facebook, take the long-term view. they know if they take a risk, they're not going be pitched out if they make a mistake. >> i have to leave it there. >> i love my new elevated position. >> it's wonderful. >> thanks for that one. we are keeping an eye on the global market. >> extra points for getting on the box and participating there. >> wilfred is a tall man. >> i don't know about you louisa. >> i'm not 7'10". >> on that note, i'm pretty sure she is not on a box in

singapore, but let's see how the markets are fairing over there. central bank s remain the theme today. looking at the nikkei again with the winning streak. >> talking of tall people, you know who came into the studio not to long ago, kristen man who plays holden the jntle giant. really flat to slightly high. we continue to see the extension of the gains on the nikkei in japanese exties. we are front running the idea of fiscal stimulus and possibly also the bank of japan coming to the party at the end of this month. that is when they meet next. a lot of talk on doubling up j.p. purchases. equity linked purchases as well. a lot of chatter about helicopter money, direct cash payouts and the fact that a

certain mr. borrow nancy is visiting tokyo has really added fuel to that fire. we have a robust set of numbers in australia. that helped the aus si dollar at the close. elsewhere not a great deal of action. shanghai holding just above that critical handle of 3,000. we were down on the day just marginally by about.20 of a percent. our side so that's the next big test of the market confidence, how the chinese macro is holding up. ladies, back to you now.

>> well, japan's answer to what's app is going to go public. the company lists in new york today and tokyo friday. >> reporter: it's a messaging platform with a uniquely japanese flair. when it comes to line, free texts and free calls aren't the main attraction, but digital stickers featuring cuddly characters. >> unique asian appeal reflected in the market so it's been winning both japan, thailand, indonesia and taiwan. profited from this local interface. >> began as a free chat app to improve communication after the 2011 tsunami in japan. five years later it's become a social platform dominating in

japan and three other markets with 218 million monthly active users. >>. >> reporter: the app isn't limited to messaging. you can play games, make payments and group calls and yes, you can even take selfies with more than a dozen different filters. ceo calls the one stop app a smart portal. >> translator: there is a major shift in usage to search engines to message apps. >> reporter: that's transformed into a lucrative business raking in more than a billion dollars last year, a 40% increase. games and advertising make up earning. on average, line users send 390390 million stickers each day.

the company has expanlded opening up five shops where the line app is still banned on the mainland. >> as a business, the company is in a fundamentally good position. >> reporter: but the company had struggled to expand beyond it's core markets. trailing competitors globally. the number of monthly active users grew just 1% last year. >> translator: embraces the challenge saying it's been 20 years since a japanese company stood up to battle with the big boys. may be far behind american tech giants, but they hope a listing in the u.s. and japan will be the first step in changing that. cnbc. >> coming up here on the show, a long time ago in a land far, far away, the bank of england lowered rates to .5%. so after seven years, will mark

carney dust off the old rate cut book? we'll have more on that in the show. plus boris on a relationship building mission. which country is top of the list for the new foreign secretary? we'll tell you after this short break. >> as i said, the united states of america will be in the front of the queue. thank you.

good morning and welcome back to "street signs." i'm louisa bojesen, your headlines this morning. >> decision time for mark carney. after seven years the bank of england could cut rates to a new low in a bid to ward off a brexit recession. sterling rallies ahead of ma market. boosted by banks and basic

resources. the new uk chancellor says there will be no emergency budget as he gets set to meet the governor. unicredit is close to the stock six hundr600. chairman says they will have to evaluate a capital increase. >> good morning and welcome back to "street signs." very busy day here in the uk. we have exciting appointments in theresa may. now counting down to that bank of england decision here. the first since the brexit vote so all eyes will be on mark carney. >> we have a guest coming up saying this is more important globally than the u.s. election, than possible fed hikes as well. >> and i think not just the decision, but what he says because a lot of people saying it's not really a question of if when it comes to easing additional qe, but when. that will be the big focus. i know you're doing a special

with jeff if a few hours, but let's give you a view of whether the european markets are trading now. the ftse 100 higher by .75%. the french cac higher by 1%. this is a continuation of gaining we've seen globally. asian markets having a solid day as well. >> some of the biggest movers today when looking at individual stocks, we've got hays ahead of expectations thanks to strength in europe. the uk recruitment company reported an increase. they're warning the domestic market is challenging. >> basf has declined to report that monsanto is looking into possible deals. including the agricultural

solutions division. they could get newly issued shares in the u.s. seeds giant. monsanto rejected a buyout offer in may. shares in monsanto are up 12% over the last three months and today just off about 1.2%. that was yesterday's price in the u.s. again the musical chairs turn in this sector. >> as always. early today, unicredit said the bank will have to evaluate a capital increase. he warned they are unlikely to be satisfied with the bank's asset sells. unicredit, again, i always caution in terms of the actual price per share of these companies, these italian banks and back in the uk, the new uk prime minster theresa may has told european leaders she intends to fulfill the will of the british people by taking them out of the eu.

in a series of phone calls, may explained that brexit negotiations would take time to prepare for. >> meanwhile, newly appointed chancellor phillip hammond has stressed the important of maintaining access to the single market. no decision had been taken on when to trigger article 50. well, let get back out to julia who is outside parliament in westminister. the timing here is going to be crucial. we also heard from brexit secretary, david davis saying this will take some time, you have to wonder what the european leaders are going to say about that. >> reporter: well, nancy, thanks very much. it's very interesting what david davis said who is the brexit minister, in fact the key negotiator. he said we're still going to get access to the single market, but hold firm on the borders. good luck with that my friend.

he also said we'll look to trigger article 50 by next we're. he did put a time frame on it. he talked about the possibility of a formal departure by december 2018. compare that with what we got from phillip hammond suggesting it could take six years to organize brexit. we need to coordinate what the message is here because it's already flying in all sorts of directions. as you quite rightly said it's going to be very important. what david davis said as well is the trade talks that are going to come underway shortly. u.s., china, india are going to take 12-24 months. once again the time frame fits with his and not necessarily the chancellor's. this referendum result was a shock. we can't escape that, but what we do have to promote is the fact british firms are still open for business. we have to do what it takes to ensure confidence. that meeting he has with mark

carney going to be very important to suggest you've got an independent central bank, but you do have then this fresh government willing to do what it takes to sure up confidence and economy. when that means further fiscal stimulus somewhere down the line. the key thing here, the shock as we've been talking about this morning is boris johnson and what keeping boris johnson close, do you keep your friends close and your enemies closer for theresa may. what that ultimately means for the negotiations going forward. that's going to be a very interesting one going forward. not only for the broader relationship, but what that means if we end up a brexit likes. we have to give some kind of access to give up minor access to the single market. don't manage to rangle back border control. it's going to be an interesting one. >> we also heard phillip hammond

saying there will be no budget. does this subject it's not as bad adds they feerd or they really need time to get through data. >> it's a surprise. george osborne had already u-turned. there's not going to be an emergency budget. he alluded we'll wait until the autumn budget. i think waiting t ining some ti makes sense. mark carney has indicated he would add further stimulus or look to do something as far as rates are concerned this summer. tlets give us some time to address fiscal policy. i think that makes sound sense. >> guys. >> all right. thank you for that one. u-turn upon u-turn. it does happen more often these days, not just in the uk. >> if it's for good reason, it's all right. you have to be flexible enough to say okay. we're finding our way, more information coming to light or changes in the economy. what have you.

i'm a big fan of flexibility. >> absolutely and there's a lag factor there with the data. meanwhile, take another race for the white house over in the u.s. there's speculation over donald trump's running mates now taking on the feel of a tv reality show. now the candidate has announced the big reveal is coming tomorrow. let's get out to nbc tracey pods who joins us from washington before heading to cleveland next week. tracey, there was a not so secret visit by donald trump and his family yesterday. does that give us any indication where the vp nomination is heading. >> that was to mike pence. they had just campaigned together and as it turned out, trump had a problem with his plane so he ended up stuck in o indiana longer than expected: that sparked a flurry of activity. his kids who are his adviser s

flew in. jeff sessions flew in to indiana for part of that process. newt gingrich who is one of those on the short list flew into indiana because trump was stuck there. so yes, there's a lot of speculation about whether mike pence who brings credentials as a governor, but also a swing state governor or newt beggingr or chris christie. we now know he's going to make that announcement tomorrow morning. he said so hims big news conference planned in new york at the trump tower. meantime, hillary clinton is not expert testimonied to make her vice presidential pick or at least announce it until after next week's republican convention. she's here appearing with one of those possible running mates. tim cane. a couple others on her list.

elizabeth warren, a lot of people have been talking about, seems not to be in the top three at this point. >> thank you for that one. tracey pods joins us of nbc news. we're just getting some flashes through. the eu anti-trust chief is to make an announcement at 12:00 cet we're hearing. speculation is this could be about google and what's going on there. the eu has been accusing google of using android to skew the market. there's been a probe that's been going on and we might be learning more. >> she's also been involved in comments around the deutsche merger too. saying wait a minute we don't want this on competition grounds. >> they weren't happy at all about that. so speaking very soon.

>> the bank of england is seeing cutting rates to a new historic low of 2.5% according to a reuters poil of economists. it's not a done deal though. the first rate cut in over 7 years would come as the central banks seeks to cushion a fallout from the brexit vote. mark carney sought to both warn and reassure britains about what lies ahead. >> some market volatility can be expert testimo expected as this process up folds. we are ready for this. some economic easing will likely be required over the summer. >> this is an economy which is highly flexible. it's got tremendous strengths. it is -- they are reinforced by a financial system that can withstand huge shocks to it. so there will be adjustment and

there will be growth. >> well, jeffrey is an investment strategist. m we have a couple of options today from the bangk of england we have the potential for a shock and awe move. and we see dishlg stimulus being announced maybe just the cut rates or they do nothing and decide to wait until august when we have the inflation report. what are your thoughts? what will they do today. >> so mark carney has made it very clear the bank of england role is to facilitate a fiscal environment. the thing economic activity doesn't like is uncertain times. they've already been very proactive in trying to boost liquidity. for example removing the buffer for banks.

we do think the bank of england will cut rates this summer, potentially today and we also think that in the coming months they may well also announce additional tools, perhaps such as quantitative easing. >> maybe a cuttish maybe today. >> we do think they will cut rates. today probably and, certainly, this summer we think they will cut rates as well. >> jeffrey. >> we're looking more into an august move when we have more data and information from the inflation report. and will going back to data i think the key thing to realize is it shown things that bad and the skies falling? not really. so if we go by the feds book, we need to billion data dependent. then just not really, but then again youp want to be preemptive and deliver that kind of certainty. important thing is what's the outlook, what are the options ahead.

that's what were methamphetammo know. >> when they will trigger article 50 because that has repercussions. in the meeting today with the bank of england governor mark carney and phillip hammond. >> i don't think we're going hear much about it. many conversations are going to be behind the scenes. so that's first thing to bear in mind. secondly, i think an economy wants some assurances with the future and specifically how it will impact the economy. ultimate hi he's concerned how it will hurt data. we have to mark down potential uk growth and gdp growth. >> we've heard from several policymakers saying markets really handled the decision as they were meant to. there was an orderly reaction, yes the shock at first, but now

looking where we are. it's interesting, i know you note, marilyn, some surprises when it comes to the peripheral yields. >> we didn't see as large moves as we expected to see immediately following the outcome of the referendum. we certainly are seeing -- we've seen a lot of repricing. guilding and bonds and selling separately. we've seen gb rates changing and fed rates. we do see strong fundamental signs of improvement. the ecb is in easing mode. we could see an extension of the program and we may actually see changes as well to the purchase program itself, but we do think overall there is an underlying support and solution for the european peripherals.

>> but in this hunt for yield, it's becoming really difficult and a lot of pensioners rely on their savings in this type of stuff as well. where do you go? i was looking at comments about how now it's becoming increasingly popular to buy into compliant accounts, savings products linked also becoming more and more popular. what do you do as an alternative. >> we are seeing investors looking for yield, looking for income are being pushed down into potentially riskier assets and to spread the assets down the capsule structure. we are seeing extending on purchases and it is difficult. i think in this environment you need to be flexible and the ability to be pretty nimble is important. we're even seeing it if you look at the etf flows. huge flows into bond etfs. >> i was going to say on the equity side it's the move in bond markets that's continues to

drive this global rally if you will. so does that suggest to you that investors should be cautious. >> with respect to the bond market and parking lt of the hi yield we have been encouraging, but on top of that in terms of yield capture, diversificatiodi that's the key message as well. if you are going down the capsule structure, you risk. if there's one thing brexit has taught us, there is no certainty coming through these risks. so stay diversified. go into private markets and things like that. increasing interests. and other conversations we're having, gold. you talk about etf. >> jeffrey, people writing in on facebook, you can find us there. find us on twitter. the cable targets that you have, looking at, you say we're at the

midpoint. you have a midpoint with an exceptionally wide range. huge range. >> if you look at, you know, were implied volatility was heading into brexit vote. 1.35, 2.10. normally it's like 8 or nine. that's telling you, and, of course, that's been removed if you look at the term structure for example. expect volatility. it's only natural and reasonable we expect wide range, but right now cable is at the midpoint. >> if they meet today, then what. >> if they cut again, that should be in the price. if i actually want to decompose what's driving cable price right now, i don't think its policy per se. sterling is a risk asset right now. sterling should be higher. >> and marilyn, you talked about

the ecb as well saying they're clearly in stimulus mode, but we have heard from some saying we don't need to put out anymore stimulus as a result of brexit. enough is enough in so many words. >> i think even if you take brexit aside, we still expect that we will see some extension potentially of the program is due to end many march 2017. will it be a tapering or will it be extended. also when you look at the amount of bonds available, then we would expect it could potentially be some tweaks around that or maybe around the amounts of each new issue, maybe around the capsule key. if you look at the euro zone as a whole, brexit will have an impact. it remains to be seen how much. there so many unknowns, but we do think the ecb remains definitely in stimulus mode. >> what's you take on uk assets. europe is not a pretty picture

there considering political instability and the banking sector. >> with respect to europe, we went to european equities a couple of months ago. that was still a european view. look at their inflation forecast. that's too low. just 1% point slippage from that. you have tro do more. >> viewers always leave hearing what your favorite trade is, jeffrey. >> if we're looking at yen right now, that's very interesting. it's starting to overshoot some short-term targets: if you actually think yen should strengthen. sterling against the yen looks pretty good right now. >> excellent. thank you very much to you both. now, we're still asking you what's your reaction towards

johnson's appointment as foreign minister. loads of you writing in on facebook live. you can find us there throughout the week and post your comments there. you can also find us on twitter. >> one viewer said it should have been larry the cat. i don't know about that one. >> everybody likes cats, right?

good morning and welcome back to "street signs." the california resources board has rejected volkswagon's proposal to recall a fleet of three liter vehicles. the regulator said it was not satisfied the proposal would solve the issue of emissions cheating. vw said they will continue to work with the california regulator and reach a solution. important to keep in mind that was the higher end models we're

talking about and not all the vehicles affected. gm's twine bankruptcy does not shield from lawsuits over faults. the lead lawyer for customers affected said the filing was a calculated move in an effort to coverup actions. gm took charges of 1.6 billion in 2015 and 4.2 billion in 2014 related to those recalls. the bank of england seen cutting rates to a new historic low of a quarter of a percentage point. reuters poll of economists, jeff is outside the bank of england. it's not a done deal and many also say they're not going be doing anything today. >> reporter: i've had two economists join me this morning and both of them have encouraged the bank to hold and wait until we get to the fourth of august meeting where we'll have a bit more information about the real

impact on the economy from the brexit announcement, but to a certain extent, carney has backed himself into a corner with his comments about negative the growth affect could be for the uk and various statements he's given about the need to take action to be assertive when necessary to make sure that there is sufficient credit within the economy for lending conditions to be easy. the moment on balance even though it's only 60% probability currently that we do get that rate cut, there are plenty of people who could quite comfortably see things go the other way. markets, though, i think would be unhappy if the rate cut didn't come. it does seem to be priced in a at this point. alongside the rate cut, keep your eyes focused on the minutes because the minutes will help us get a better understanding of the shape of future monetary

policy to come once some of this uncertainty surrounding the politics in this country beginnings to wash out. back to you. >> thank you very much. we'll be back out with jeff, and, of course, we'll have that rate decision live. >> i think it will be fascinating to hear the press conference too because as jeff is hitting on there, several economists saying they should wait and if they don't, what will that do i in august, if august is the next date. >> they're kind of stuck. they're dammed if they do and dammed if that don't in terms of reactions. the market is placing in. if they don't deliver, why didn't you deliver. if they do deliver, it will be, well keep your powder dry and that argument. >> keeping the powder die is crucial given the uncertainty. >> yes. >> and it's interesting because

david davis, brexit secretary, i suppose we should say, was saying, you know what, they need us. they need to come to the bargain table and once they realize we aren't going to move on free movement of people, they will negotiate on single market. others are not so sure. especially if you listen to voigss in brussels. >> no, and especially where they're going to have to give up some initial desires. loads of you finding us on facebook and giving your comments so fantastic to see your comments throughout the show. we do look at them. >> keep them coming. >> find us on twitter. we're everywhere. bank of england rate decision coming on cnbc at 1300 cet. that's it for our show. weal s we'll see you very soon.

j.p. morgan set to role out quarterly results. will it be a game changer. political drama, new prime minster theresa may is handing out cabinet jobs, include a key post for boris johnson. it's thursday, july 14, 2016 and worldwide exchange begins right now.