where top of in budapest today, where top of the agenda is responding to the election of donald trump. as much of the political and media establishment, of course, goes into meltdown. >> donald trump has won the 2024 election, and he'll be president again for four more years, or 8 or 12 or whatever. ha ha ha ha! >> ha! and today, the bank of england announces it has voted for a second cut in interest rates from 5% to 4.75%. >> and we'll catch up with our royal reporter in south africa on the final day of prince william's visit. will the prince's brother lose his american green card under the new trump regime .7 new trump regime? well, it's a busy day today, of course, and news just in, as you

heard in those headlines, interest rates have been cut. it follows more market. good news that we've heard over the last 24 hours at least. good news in terms of stocks and shares in the united states of america. >> i'm surprised they've gone for a cut. i thought they might be a little hesitant to do so. you know, there are inflationary pressures. you know, new government, lots going on. i thought maybe they'd just hold. but good news for mortgage holders. >> they were hesitant. was it two times ago when they when they held and they could have cut? i think the pressure to cut had been so much. and again 2.75 still i'm sorry 4.75 still quite a nice it would be nice if it was two point remortgage, but no , was two point remortgage, but no, i mean it was, it was almost inevitable. i think the more the more questions now are what happens next? do we continue on this trajectory? but of course, it's not just the economic aftershocks of tuesday's doings, goings on. it's of course , those

goings on. it's of course, those political aftershocks. have you recovered? i've. my sleep schedule is completely out of whack. i you know, i slept right through this show yesterday. thanks. so much to miriam cates for standing in and then. and then i couldn't get to sleep in time last night because i'm basically running on american time at this point. basically running on american time at this point . oh, no. time at this point. oh, no. >> well, hopefully he'll stay awake for the rest of this show. we've got three hours to get through tomorrow, but some of the cup of tea, some of the reaction has been wild. i'm sure you've seen some british journalists, but also over in the states, the idea that donald trump is now going to be a dictator for life. >> yes, there was this meme . it >> yes, there was this meme. it just keeps going. i mean, for one thing, i mean, he is one of the oldest presidents in united states history. now only superseded by joe biden. >> so even if he wanted to be a dictator, he wouldn't be around for long. >> i don't i don't think he'd be able to. but also, of course, one of the things about this, one of the things about this, one of the things about this election is he has set up now this very clear maga succession. you've got jd vance there who is

clearly going to be one of the lead candidates in the republican primary in four years time. likeable guy. republican primary in four years time. likeable guy . and it's time. likeable guy. and it's easier to see how sort of the trump succession happens within the republican party. now than it was beforehand. >> yes. so how's keir starmer and david lammy going to deal with this all gbnews.com/yoursay please do get in touch, but let's get the headlines with tatiana sanchez . tatiana sanchez. >> tom. emily, thank you very much. well, as you've just been heanng much. well, as you've just been hearing that breaking news that interest rates have been cut by 0.25 percentage points, only the second reduction in almost four years. the bank of england cut rates from 5% to 4.75%, and the bank cut rates for the first time in august, when inflation fell to its 2% target. the rate was then held in september, as the bank wanted to see further

evidence that inflation would be sustainably lower. more on this breaking story. as we get it. sir keir starmer is set to sign a deal with balkan nations to target people smuggling gangs as he heads to hungary for the fifth eu summit. 46 european leaders will discuss issues including economic security as well as migration concerns. the prime minister will announce new uk plans to clamp down on organised immigration crime abroad by signing new agreements with serbia , north macedonia and with serbia, north macedonia and kosovo. meanwhile, the summit will also address donald trump's win as the bloc focuses on how to accommodate the country's 47th president. shadow chancellor mel stride praised the special relationship between the special relationship between the uk and the us, and he also told gb news the government needs to take defence spending more seriously . more seriously. >> definitely in an era now where the peace dividend that we had after the end of the cold war has sadly come to an end, and we're in much more dangerous territory. you can see that

around the world, not just with ukraine and russia, but where china is in response in respect of taiwan and north korea and iran and so on. and what we therefore need to do is to make sure we have that strong commitment to defence. now , as commitment to defence. now, as a party, of course, we set out a clear path to increasing our expenditure on defence to 2.5% of gdp by 2030. and what we really need to see from this government is a similar clarity of commitment. >> sir keir starmer has telephoned donald trump to offer what downing street described as hearty congratulations for his win. sir keir said he looked forward to working closely with the president elect across all areas of the special relationship. the prime minister also reflected on the crisis in the middle east, and underscored the middle east, and underscored the need for regional stability , the need for regional stability, and the uk has announced 56 new sanctions against russia, including against salisbury poisoning suspect denis sergeev. it's the biggest russia

sanctions package for 18 months in a signal of support for ukraine. the foreign office says the sanctions will directly target the supply of goods to russia's military and constrain vital resources crucial to conduct putin's illegal war in ukraine. and those are the latest gb news headlines for now. more from me in half an hour. houn >> good afternoon britain. it is six minutes past midday and as expected as expected, the bank of england has voted to reduce interest rates from 5% to 4.75%. >> so are they on the way down? whilst the decision will make the cost of borrowing money a little bit cheaper, it will likely reduce the returns available to savers. >> well, let's get the latest on this with gb news political correspondent olivia utley. because olivia markets were expecting this. but of course there is fear about the future

trajectory. but i do suppose, on the other hand, the election of trump, the budget, it hasn't changed those sort of expectations . expectations. >> well, as emily said in the introduction, there, in a way it's quite surprising that the bank of england has decided to lower rates, given what has happened over the last couple of weeks . weeks. >> rachel reeves budget doesn't show good indications of growth in the medium to long term future , and it is likely that future, and it is likely that inflationary pressures will stay. thanks to that budget, the election of donald trump too, although it might be very good for inflation in the us, could be very bad for inflation over here because as we know, donald trump is keen on protectionism . trump is keen on protectionism. he's keen on high tariffs. he's not likely to agree a free trade deal with the united kingdom, particularly under a labour government. there's quite a lot of animosity between him and keir starmer. so actually you could end up in a situation where goods from america end up being far more expensive, and that could lead to an

inflationary spiral. but none of that was factored into this interest rates decision, because the timing of it just didn't work. although it is likely that the bank of england monetary policy deciders knew what that new rachel reeves budget plans before they made their decision, they won't have 100% been able to factor all of that in before she actually made the budget decision. so the big question now really is, is what happens? there are a couple of members of the monetary committee. it's a nine strong committee. there are a couple of members who are really holding out firm for keeping interest rates pretty much as they are, but at the moment they are in the minority. andrew bailey, the governor of the bank of england, still wants to keep interest rates going down. so i think what we can expect to see over the next sort of year is interest rates slowly , of year is interest rates slowly, slowly going down much, much slower than they climbed just a few years ago. slower than