let's go onto the i, from andrew bailey. let's go onto the i. sonia. _ from andrew bailey. - from andrew bailey. let's go onto the i, sonia, today, and what you| the i, sonia, today, and what you were talking but a moment ago, and thatis were talking but a moment ago, and that is the cuts. taxes are going to have to rise, department or going to have to rise, department or going to have to rise, department or going to have to face cuts, it seems, as well. we understand german —— german hunt is having a 50—50 balance between the two things, but it is going to be painful, bearing in mind these departments do not have access at the moment. that's riuht. have access at the moment. that's right- there _ have access at the moment. that's right- there is— have access at the moment. that's right. there is a _ have access at the moment. that's right. there is a lot _ have access at the moment. that's right. there is a lot of _ have access at the moment. that's right. there is a lot of areas - right. there is a lot of areas of government spending that have been cut quite soon since 20

i wonder what you both think of andrew bailey's - both think of andrew bailey's decision to interveneng in washington at the institute of international finance. washington at the institute of internationalfinance. we washington at the institute of international finance. we will play a little bit of what he had to say. we have had to return back to further, including keeping us up for the whole of the night to do further intervention. it became clear that we as the event of england, has never bought index linked, operation so realise the financials ability purposes we had to do it. we've announced that we will be out by the end of this week we think of rebalancing must be done in a message to the funds and firms involved you've got three days left. you've got to get this done. because again, part of the essence of financial stability intervention is that it financial stability intervention is thatitis financial stability intervention is that it is clearly temporary. andrew bailey speaking _ that it is clearly temporary. andrew bailey speaking to _ that it is clearly temporary. andrew b

when andrew bailey said three days left, markets closed. cross asset correlation, it shows. has the potential to turn around u.s. bond market but the equity market as well. s&p 500 futures coming back a little bit this morning. hong kong tech stocks are getting smoked, down more than 3.2%. it comes with these tensions in the chipmaking sector. let's focus on the boe. the governor andrew bailey warning pension funds they have until the end of the week to wind up positions they cannot maintain before the central bank pulls support. temporary intervention will end on friday despite calls to extend the program. >> we have announced we will be out by the end of the week. the rebalancing must be done i all the funds. you have three days left. you've got to get this done. again, part of the essence of the financial stability intervention is that it is purely temporary. dani: those comments did rattle broad markets. triggering a cell in not only the pound but u.s. stocks as well. we get a report this morning that the boe properly told bankers there may be long bond purchases beyond

while andrew bailey is trying to manage — while andrew bailey is trying to manage market perceptions will have to intervene. its prices fall again the bank will have to intervene-— to intervene. as a telegraph says, the sterling _ to intervene. as a telegraph says, the sterling has _ to intervene. as a telegraph says, the sterling has fallen _ to intervene. as a telegraph says, the sterling has fallen as - to intervene. as a telegraph says, the sterling has fallen as bank- the sterling has fallen as bank poles plug on pension help. a very direct response to this repeat. a repeat of the statement he said before. it in any sense does wonder whether he needed to say it again, whether it was helpful to say it again. whether it was helpful to say it aoain. ., ,, , ., whether it was helpful to say it aoain. ., ~ ., , whether it was helpful to say it aoain. ., ~ , ., ., , ., again. the markets are generally a little jittery. _ again. the markets are generally a little jittery, some _ again. the markets are generally a littlejittery, some much _ again. the markets are generally a littlejitte

you look at pound volatility, it wasn't as bad as a few weeks ago but certainly the fact that andrew bailey was very clear that we are not going to continue to intervene, it was a shock to the system once again. here is more from governor bailey. >> we've announce that we think rebalancing must be done, you got three days left now, you've got to get this done. it is clearly temporary. rishaad: that's against the backdrop of the global economy as it tips toward recession. the imf looking at this year and next year. have a look at the green or turquoise line, the full-year growth estimate of 2.5 percent, according to economist we've been talking about -- talking to for 2023. china being downgraded again, and joe biden coming out this morning say he doesn't think there will be a recession but if there was, a very slight one. the cleveland fed president saying they will keep at it until the data shows something different. >> the real issue is, we need to do more. we have not seen inflation back down and we need to see that, because leaving inflation where it is, there is a higher chance that it

lizzy: it looks like in the game of chicken between kwasi kwarteng and andrew bailey, andrew bailey hason and it is kwarteng who will have to do the u-turn. kwarteng said if market turmoil continued and bailey did not extend emergency bond buying, it would be a matter for the governor. bailey has staked his credibility on holding firm to this deadline. it looks like he is going to get away with that, however if the market turmoil does continue, perhaps we'll see a more creative solution on how to help pension funds. i was speaking to former policymaker martin weal, he said there could be targeted help for puncheon funds. bailey is going to be desperate not to continue with the blunt instrument of quantitative easing because it looks like there per ties in financial stability over inflation fighting, and being dominated by fiscal policy. it seems perhaps okay as an emergency measure but not something to be extended, that's what the imf's message seem to be yesterday. francine: lizzy burden reporting outside the bank of england for us. ts lombard's senior macro strategist and kristine aqu

i think andrew bailey is in a tough position.idence in him is actually quite low. how does this all end? if i knew that, i would probably be chancellor of the exchequer, but i would not want the job right now. i have seen economic catastrophe in other countries. the most dramatic one was in 2001, when argentina had what was at the time the biggest sovereign default in history, and money vanished. the banksjust shut up. they closed their doors, people went down with hammers at lunchtime and beat the doors, and nobody had money. at the beginning you were saying about the confidence in the money, all that disappeared overnight. people could not buy things, and it was quite extraordinary, because they were very inventive in how they responded to it, and the country essentially went over to barter. they created a currency within the barter system to create the exchange, and it being argentina, you could barter cooking oil for psychotherapy. you just had to regulate the medium of exchange. and because it was argentina, it was so succes

boe governor andrew bailey in washington vowing to end emergency guilt purchase as scheduled on friday, despite mounting market pressure to extend the program. that sent gilt yields rising with bailey adamant pension funds have just three days to sort out liquidity positions. this morning, the pound rebounding on a conflicting report that the central bank has indicated privately it could extend intervention beyond the deadline. here is what the governor said on tuesday. >> we've announced we will be out by the end of this week. my message to all the firms involved, you've got three days left and you've got to get this done. time is of the essence, it is clearly temporary. francine: we are joined by dan from our mliv markets team, what was the mistake? telling private banks he will do more, or telling the whole world they have three days to get their act together? >> with what he said in washington he has put his credibility on the line. since this report has come out, it is not looking good for bailey at the moment, the next three days you will see a lot of volatility and his commitmen

so absolutely, there is a trust issue now in andrew bailey's handling of the bank of england, of thedent of the government, and should remain so, despite what liz truss has been hinting at various points. she did during her leadership election, some possible suggestions of review of its mandate. of exactly how it would work. even mark carney, when he was the governor of the bank of england, also trod a fine line in terms of how much he felt he could actually criticise versus how much he needed to make sure that he was playing down the line. so, i think andrew bailey is in a tough position but we do see public confidence in him is actually quite low. how does this all end? chuckles. wel, if i knew that, i would probably be chancellor of the exchequer, but i would not want the job right now. i have seen economic catastrophe in other countries. in fact, the most dramatic one was in 2001, when argentina had what was at the time the biggest sovereign default in history, and money vanished. the banksjust shut up. so, they closed their doors, people went down with hammers at lunchtime and b

well the governor of the bank of england, andrew bailey, spoke to the new chancellor yesterday — andas a �*clear meeting of minds' on the importance of stability. this afternoon mr bailey also warned of the possibility of higher interest rates ahead — more than previously expected. our business correspondent, marc ashdown, has this analysis. allsmiles, launching the mini—budget at the end of september, and with it a new political phrase. trussonomics. describing liz truss's vision for a high growth, high wage, low tax economy. butjust three weeks later, her new chancellor has buried it. have you been given a clean slate? can you change elements of the mini—budget if you want to? yes. and the fundamental thing the prime minister wants me to do and i need to do is to be completely honest with the country. trussonomics reversed, then. tax cuts likely replaced with tax rises, huge investment replaced with a spending slowdown. this rethink has largely been driven by the turmoil in the financial markets since the mini—budget was announced. the pound has had a torrid time. the effective cos

the governor of the bank of england, andrew bailey, has spoken to the new chancellor, jeremy hunt, and says there was a clear meeting of minds on the importance of stability. now mr bailey has also warned of the possibility of higher interest rates ahead, more than previously expected. our business correspondent marc ashdown has this analysis. all smiles launching the mini—budget at the end of september. and with it a new political phrase — trussonomics, describing liz truss�*s vision for a high—growth, high—wage, low—tax economy. but just three weeks later, her new chancellor has buried it. have you been given a clean slate? can you change elements of the mini—budget if you want to? yes, and the fundamental thing the prime minister wants me to do and i need to do is to be completely honest with the country. trussonomics reversed, then, tax cuts likely replaced with tax rises, huge investment replaced with a spending slowdown. this rethink has largely been driven by the turmoil in the financial markets since the mini—budget was announced. the pound has had a torrid time. the effective

what do you think andrew bailey was saying or why, you think andrew bailey was saying orwhy, perhaps, why, perhaps, was he seeing it in new york when he announced the bank of england would end its support, buying up government debt, this friday? timing wrong for that was that a sign of frustration, perhaps, whom? i that a sign of frustration, perhaps, whom? ~ ., that a sign of frustration, perhaps, whom? ~ . , _, . whom? i think what he is concerned about is that — whom? i think what he is concerned about is that people _ whom? i think what he is concerned about is that people might - whom? i think what he is concerned about is that people might think - whom? i think what he is concerned about is that people might think the government, that the bank of england is essentially monetising government debt, turning long—term securities into money, which is a form of quantitative easing, and that is not the thing you want to be doing when you're trying to bring inflation down. �* , , , , down. and very user friendly terms, a receiver speaking _ down. and very user friendly terms, a receiver

i'm wondering what your thoughts are about that assessment from andrew bailey and how much they are tohe impact of the many budgets. to do with the impact of the many bud . ets. ., to do with the impact of the many buduets. . .. ., , ., budgets. there are factors here that are drivin: budgets. there are factors here that are driving up _ budgets. there are factors here that are driving up interest _ budgets. there are factors here that are driving up interest rates. - budgets. there are factors here that are driving up interest rates. even . are driving up interest rates. even if the government had not done anything over the last few weeks, interest rates would still be going up. the political problem for the government is, i suspect, people paying their mortgages and looking at the increases that they are going to be paying which are going to be very, very happy indeed for millions of households. the government is going to get the blame for pretty well all of and arguments about, well, they are internationalfactors and so on, i'm not sure are going to geta and so on, i'm not sure are

we are going to get qt at the end of this month from andrew bailey and the boe, how much of the giltexpansion was because of pension buying, and has that evaporated because of this latest turmoil? again, too many bonds, not enough buyers. manus: don't forget, of course, andrew bailey was being pilloried in the middle of the week in terms of his communication, and the chaos from the institution that he leads. but chaos theory that are because of him saying one thing, to say bailey has won, we all need to be careful with let's give an a star to bailey, and a z rating to quach hang -- kwarteng. where is the next leg for sterling, that is the debate? who is going to buy these gilts, what issues do you have and do you need to find the tax cuts or fiscal i suppose savings of 60 billion pounds. euro-sterling rallying, a little bit of a move of the last three days as well. we are going to talk about the china communist party congress. there is a big event in china on sunday, president xi jinping expected to secure a record-breaking third term. more on the story right here on bloomberg. ♪ dan

the governor of the bank of england, andrew bailey, has spoken to the new chancellor, jeremy hunt, and says there was a "clear meeting of minds" on the importance of stability. now mr bailey has also warned of the possibility of higher interest rates ahead, more than previously expected. our business correspondent, marc ashdown, has this analysis. all smiles launching the mini—budget at the end of september. and with it a new political phrase — trussonomics, describing liz truss�*s vision for a high growth, high wage, low tax economy. but just three weeks later, her new chancellor has buried it. have you been given a clean slate? can you change elements of the mini budget if you want to? yes. and the fundamental thing the prime minister wants me to do and i need to do is to be completely honest with the country. trussonomics reversed, then. tax cuts likely replaced with tax rises, huge investment replaced with a spending slowdown. this rethink has largely been driven by the turmoil in the financial markets since the mini—budget was announced. the pound has had a torrid time. the effect

lizzy: that is the message andrew bailey wanted to underscore at the imf over the weekend. uggested figure hikes are going to be needed, including at the november meeting. take a listen to bailey in washington. >> we will not hesitate to raise interest rates to meet the inflation targets, and as things stand today, my best guess is inflationary pressures will require a stronger response than we perhaps thought in august. lizzy: andrew bailey wants to get back to focusing on fighting inflation, but they will have to see how much pension funds have fortified themselves during this interim period of emergency boe support. the form the bank of england's help could be extended in could be an extension of delays of quantitative tightening or a new facility. we will have to see how the gilt market reacts. dani: thank you, lizzy burden, outside of fittingly raining downing street. now to our guest, who advises investors on how to navigate a volatile u.k. thank you for joining us. how much longer doesn't liz truss survive and doesn't even matter? -- does it even matter? andrew: it is

andrew bailey said this afternoon that pensioners should rebalance by friday. that central bank tries to stem the losses in the bond market. it's impacting us. we're seeing losses no you in bonds. and that is hurting stocks there is the nasdaq down 1.4%. this is the fifth down day in a row for the s&p 500 and the nasdaq only tuesday the nasdaq is down 2.5% so far for the week coming up, we're going to talk to a fund manager who is actually outperforming the market over the past year. we'll tell where you he is putting money to work now amid this global slowdown wells margo initiated a tech stock they are calling a unicorn in software. we'll reveal the name and talk to thenasthama tt aly tt dehakachlt i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones and i'm going to tell you about exciting medicare advantage plans that can provide broad coverage and still may save you money on m

andrew bailey — welcome to the programme. thank you. andrew bailey has _ welcome to the programme.e whole of last night to do a further intervention. and for us, that was because it became clear that we as the bank of england — i know not all central banks are like this — have never bought index—linked gilts in our monetary operations. but we realised for financial stability purposes, we have to do it. and we've announced that we will be out by the end of this week. we think rebalancing must be done, and my message to all the funds and all the firms involved in managing those funds — you got three days left, you've got to get this done. because again, part of the essence of the financial stability intervention is that it's clearly temporary. so why is it temporary was next summer saying today, if the painter stood behind it, that wouldn't be the panic. i stood behind it, that wouldn't be the anic. . ., ., the panic. i agree with that, and i saw someone _ the panic. i agree with that, and i saw someone to _ the panic. i agree with that, and i saw someone to eat _ the panic. i agree

this is the message andrew bailey tried to hammer home at the imf over the weekend.say he expects vigor rate rises in november than expected in august, as a result of liz truss's fiscal policy. but looking at boe market pricing this morning it is the lowest since the mini-budget. the key rate speak in may is expected at 5.63%, so a calling in markets has changed the course for the boe a little bit. francine: i can what you all day in front of downing street, you see people coming in and out and you wonder what they must be saying. if that chancellor is in charge, and it is jeremy hunt calling the shots now, what do we expect him to say? lizzy: we are expecting more reversals on trussonomics, as he turns it into sunakonomics. we have a good communicator item number 11 downing street, he hinted at his message and pre-announced that we will hear from him at 11:00 and 3:30 today, and as a result gilts rallying. no coincidence there. in terms of resource holes, we expect a confirmation that the cut in into -- income tax will be delayed. the cut untaxed duty and dividends,

the pound is up a| little hour against that fall, straight after andrew bailey's comments, so we should you for your comments. swetha ramachandran therefrom gam investments. let's get some of the day's other news. a senior white house official says the united states is re—evaluating its relationship with saudi arabia following opec�*s decision last week to cut oil production. the national security council spokesman, john kirby told reporters that president biden had been disappointed by the move. he said both democrats and republicans in congress had expressed concern and the president was considering whether the relationship with riyadh served the us national security interests. elon musk�*s starlink is now available injapan, making it the first asian country to deploy the satellite—based internet service system. spacex made the announcement on its official twitter page. according to a map on starlink�*s website, much of the country's north can now receive starlink�*s signal. the company's profile has grown of late especially after its technology was deployed in ukraine following russi

andrew bailey adamant that the measure is meant to be temporary it's definitely ending today.ll see if there's going to be another u-turn in terms of u.k. policy makers coming through to next week especially if the markets continue. >> it's not moving in the right direction right now. we will see what happens on monday. thank you very much indeed. coming up, more on what is happening in the u.k. and the ripple effects of the u.k. crisis. the imf head of europe will join us next. we will get his assessment of what's happening here and the big picture in the eurozone as well. this is bloomberg. ♪ this... is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity. >> the bank of portugal speaking with us a little earlier. we talked about the prospect of a

further warning of economic problems in the last hour from the governor of the bank of england andrew baileyn, he said the bank might have to raise its interest rates even higher than first thought in order to tackle inflation. let's hear what he had to say: recently the uk government has made a number of fiscal announcements. and has set october the 31st as the date for a further fiscal statement. the mpc will respond to all this news at its next meeting injust under three weeks from now, just after the 31st of october. this is the correct sequence in my view. we will know the full scope of fiscal policy by then but i repeat what i have said already, we will not hesitate to raise interest rates to meet the inflation target. and as things stand today, my best guess is inflationary pressures will require a stronger response than we perhaps thought in august. the governor of the bank of england. let's get more on this from david gauke — a former conservative mp who was lord chancellor and secretary of state forjustice in 2018 and 2019. welcome to you, good to have you on the programme. your th

yesterday at the imf meetings, andrew bailey, l nurtured over decades.y, the governor of the bank of england, came underfocus. the bank has had to intervene in the bond market to help ensure the viability of many pension funds. he insisted that the current bond buying programme would come to an end this week, a move not welcomed by the markets. sterling has fallen in _ welcomed by the markets. sterling has fallen in response _ welcomed by the markets. sterling has fallen in response to _ welcomed by the markets. sterling has fallen in response to what i welcomed by the markets. sterling has fallen in response to what you | has fallen in response to what you said, that they have three days. does that complicate matters? no. i'm does that complicate matters? no. i'm afraid _ does that complicate matters? no. i'm afraid this has to be done for the sake — i'm afraid this has to be done for the sake of— i'm afraid this has to be done for the sake of financial stability. since — the sake of financial stability. since the _ the sake of financial stability. sinc

andrew bailey has been reassuring markets because this is what investors are looking to at the moment despite the political turmoil in terms of the new prime minister. they want to see that the institutions of government and policymaking are still intact. it will be key what we hear from andrew bailey following if we do get a delay to the fiscal statement. francine: thank you both for joining us. stuart wallace and kristine aquino looking at the markets. we will have plenty more from westminster and london. coming up, we discussed the u.k.'s political turmoil and what it means for growth prospects with the former chancellor of the exchequer, philip hammond. this is bloomberg. ♪ tom: welcome back to the open. 12 minutes into european trading day. you're seeing losses across the benchmark but of course the focus is on the u.k. assets. the pound under pressure, currently down 0.4% after the selloff in gilt markets. francine. francine: after 44 days, liz truss has resigned, making her the shortest irving prime minister in british history -- serving prime minister in british history. this

it gave the pound boost, but andrew bailey endorsing it, that was another factor. haidi: this idea that perhaps investors are feeling like more of those unfunded tax cuts might see a u-turn from liz truss. the u.k. prime minister facing market judgment. now without emergency support measures from the bank of england leaving the u.k. evermore exposed. it is interesting how we continue to start to see the crack's between going from all hands on deck central banks and governments on the same page as we got through the pandemic and now those paths are diverging and we are starting to see the cracked relationship. u.k. financial markets, whether you talk about the fx markets or gilt markets, will be key this week after we saw yields spiking. the pound advancing so far in the early session, after the selloff on friday. we continue to watch for volatility. kathleen: sure. the rally in the pound started over the weekend. it was interesting at the imf meeting on friday, at the g 30 section, something done every year on the sidelines, we saw andrew bailey, a very interesting

rishaad: how did andrew bailey, who was criticized rally at the start of the deadline for those bondy -- but he has emerged reasonably well -- what do you think? >> i think that's right. the reality is the bank of englund is doing its job. it has to keep hiking rates. you could argue that the bank of england, like many central banks, were caught behind the curve with inflation pushing rapidly higher, and as i said, there's still a way to go, and there's not much else they can do. tightening is a policy the markets will want to see the bank of england continue to do because it tightens financial conditions and raises overall policy rates with higher interest rates. i think it is in the right direction in terms of getting to grips with inflation. yvonne: it is interesting, too, bank of america came out with an interesting line saying that the u.s. treasury market may be just one shock away from trouble. do you see signs or cracks that are forming of a possible treasury meltdown, and how likely is that scenario, do you think? >> i think clearly it is more likely than it has been for som

in the game of chicken between the chancellor and the boe governor, andrew bailey, it seems to be wholinks first. bailey looks like he can uphold his promise to end the bond buying program today, but we are expecting this press conference from liz truss later on and they will hope it will con the markets -- calm the markets. lisa: i was reading this and the financial times, people are petrified of the markets. how much is this a market-driven response where they are trying to call me market would enter bailey is backing away and give the government three days? yes he was also giving perhaps pension fund managers three days but really it was the trust administration. -- truss administration. lizzy: absolutely. mark carney said bad policy would be punished by the markets and yet again they are having to learn that lesson. this may just be the second of many more u-turns because of course the government needs to plug a 60 billion pound whole and the finances according to the institute of fiscal studies estimate. she has already said this week she is not prepared to cut public spending, t

after winning the game of chicken with kwasi kwarteng, andrew bailey seems to be putting a confident foot forward. dani: thank you very much, lizzy burden outside of where the action is happening. manus, we're talking about asml to start the show, we have a quick line on new u.s. roles and their impact. manus: this comes down to the regulations from the biden administration, the impact will be limited on 2023 shipments for asml from the u.s. rules, this is about their lithography products. but you've got u.s. suppliers, they are withdrawing staff from one of china's leading chip companies in the wake of regulations. the biden administration wants to restrict the export of some types of chips that help in ai, and they have an unverified list of companies. this is the first instance, asml 2023 shipments will be limited. netflix and chill. dani: shares have jumped after the streaming giant stemmed subscriber loss in the third quarter, there are hit shows, "stranger things" help add to .4 million members beating expectations, let's get more from our bloomberg tech reporter, is the worst

vonnie: bank of england governor andrew bailey is warning fund managers that they have the end of the position they can't maintain. he says temporary intervention is ending on friday despite calls from a lobbying group to extend graham. the comments rattled world markets, triggering a selloff in the pound and in u.s. stocks. >> we think rebalancing is a must. my message to the funds is coming you have got to get this done. financial stability intervention is clearly temporary. vonnie: china ramps up infrastructure investment. financing came in at 490 billion dollars. financial institutions also up 300 billion dollars in new loan. both were higher than expected as beijing pushes local governments to support the faltering economy. leaders of g-7 nations have vowed to support ukraine for as long as it takes despite russian steps to escalate the war. in a video call with ukrainian president volodymyr zelenskyy, g-7 leaders clenched -- pledged financial and military support while condemning russian attacks and sabotage. the u.s. is sending new air defense systems to ukraine. global news, 2

which is what andrew bailey _ is in the state is.heard the cost of doing business crisis our members are talking _ of doing business crisis our members are talking to us about every day, all across — are talking to us about every day, all across the north—east. our brilliant — all across the north—east. our brilliant businesses in the north—east have come through the crust _ north—east have come through the crust and — north—east have come through the crust and the complexity and uncertainty of brexit, they have come _ uncertainty of brexit, they have come through the pandemic and now they are _ come through the pandemic and now they are dealing with this terrible cost of— they are dealing with this terrible cost of doing business crisis was that there — cost of doing business crisis was that there are no easy solutions to this but— that there are no easy solutions to this but there are things government can do— this but there are things government can do pretty quickly that don't necessarily cast a huge amount but a hu-e necessarily

how much will this be a political issue for andrew bailey to do the least damage at this next meetinglar to bash central banks and am happy to participate. just a little dose of sympathy for the bank of england and i think they were concerned about contributing to perceived physical dominance. that they had done so, we would have had a much bigger problem in the united kingdom. having said that, they have responsibility to make sure the financial instability does not make things worse and there was clearly a financial stability concern in the u.k. lisa: it's getting less and less clear how bankers remove themselves from the political discussion. at this moment, there policies are directly moving in tandem with what's going on fiscally. jonathan: if you try to avoid the politics, you become a part of the politics anyway. lisa: that's what we are seeing and -- and at what point does andrew bailey try to stay out of these politics? jonathan: we've talked about operational independence but look at what is happening in the united states. we've got the senate banking committee chair writing

seeing your tories who said the bank of england governor_ who said the bank of england governor andrew bailey'scross politics— comments stupid. it's chaos across politics and — comments stupid. it's chaos across politics and the markets. we know the chancellor is due to return from the chancellor is due to return from the imf_ the chancellor is due to return from the imf meeting on saturday and i'm sure we _ the imf meeting on saturday and i'm sure we will— the imf meeting on saturday and i'm sure we will talk more about the chances — sure we will talk more about the chances future. many tory mps at this point— chances future. many tory mps at this pointjust don't think chances future. many tory mps at this point just don't think that kwasi — this point just don't think that kwasi kwarteng or indeed liz truss can survive — kwasi kwarteng or indeed liz truss can survive these repeated u—turns. absolute _ can survive these repeated u—turns. absolute humiliation, their credibility in tatters effectively. this whole debacle over the last feet 285 — this whole debacle over the last feet 285 weeks, s

the bank of england of andrew bailey said he spoke to the chansley yesterday and had an immediate meetingh in washington had this morning on interest rates. we washington had this morning on interest rates.— interest rates. we will not hesitate — interest rates. we will not hesitate to _ interest rates. we will not hesitate to raise _ interest rates. we will not hesitate to raise interest i hesitate to raise interest rates to meet inflation targets and as things stand today my best guess is inflation pressures will require a stronger response than we perhaps thought in august. the current base _ perhaps thought in august. the current base rate is to investors expecting a rise of up investors expecting a rise of up to one percentage point in november to three point to 5%. most mortgage offers are currently already around 6% but a bigger rise in the base rate will affect the economy elsewhere. even with the change of approach the government's problems are the same. how to find tens of billions of pounds to help people with energy bills and make the sums add up. we're looking at a really tou

facing the markets directly, the bank of englangd governoer andrew bailey meeting with the world's topshington, dc on a day of a further emergency intervention for the financial market. the source of the issue remains the market for uk government debt since the mini budget. and so the bank of england has once again had to intervene to protect financial stability from a fire sale by some types of pension fund. the new intervention did temper short—term borrowing rates, but the effective cost of borrowing over 30 years carried on rising. these rates remain higher than at the time of the mini budget. while two—year rates were down a little, the existing rise is still filtering into mortgages. today, the rate for a typical two—year mortgage fix shot up again. it only reached 6% nearly a week ago and is already now nearly 6.5%. but the governor was making it clear to these pension industry funds that there were clear limits of this weekend to its help. a message to the firms involved, you've got three days left now. you've got to get this done, because, again, part of the essence of a finan

it comes as the governor of the bank of england, andrew bailey, warns that interest rates may need to previously expected. the manchester united forward mason greenwood is charged with attempted rape, controlling and coercive behaviour, and assault. the dream start for england at the rugby league world cup. they open the tournament with a thumping win over samoa at st james�*s park in newcastle.

a confident foot forward from andrew bailey.a: is it safe to say the boe is reclaiming credibility? >> i think andrew bailey is getting more credit for his handling of this rather than how much he earned. he was making contravention comments about pay rises. kailey: where are we right now as far as where they will go? do they have to raise as much and if they don't, can they curb inflation that came in at the hottest paste going back decades? >> i think it depends partly on how the labor market reacts. that's one of the reasons why qc this rise past the double digit mark. there will be members of the committee who want to go for the hundred pieces went hike to front load and clamp down on inflation expectations. given that jeremy hunt is taking away the sugar rush, the recession risks are high. we are back to the difficult struggle of not wanting to add to this by hiking to aggressively. tom: we greatly appreciate it. i want to go back to earnings. it's earnings season and procter & gamble today with a dividend growth of 5% in a

jonathan: what have they gotten common, president lagarde and andrew bailey? the same feel from governor bailey, you have three days? lisa: i saw that on twitter that you put that and i figured you were highly skeptical. basically, england is not going to be able to hold firm to something and will have to eat their words rather than threaten to undermine credibility. this is a different scenario for one reason. that is inflation. as you get inflation creeping up, it becomes difficult. with the u.k. post for its second monthly contraction in months, and will wait are they forced to accept higher inflation longer? jonathan: they are worried about the perspective of a flip-flop that they back away too early and then have to go high again. lisa: it is incredibly messy. frontloading is being called, do you frontload or go gradual? jonathan: i am a cynic. from new york city, this is bloomberg. ♪ >> had you explained to markets in the public that you have to resolve inflation if you are slowing down rate hikes? >> they got out of control in know we need to get it und

i think of england governor andrew bailey is warned investors they have just 3 days before the emergency intervention and message to the funds involved in all the firms and bolted bunch those funds. you've got 3 days left. now you've got to get this done. because again, part of the essence, so i think it will financial stability. intervention is that it is clearly temporary. the united states as its reevaluating its relationship with re add after the saudi led opec plus group decided to steeply count oil production. the organization of petroleum exporting countries announced that decision last week, despite us opposition. the white house, as president joe biden is willing to work with congress office, sent us a call for a freeze on corporation. sounds like from the beginning of the administration since taking office. the president has been very clear that united states need to need a different sort of relationship with saudi arabia. he has said that from very early on. and i have said this last week when opec made the decision to align their energy policy with russia's war and war aims a

but these 2 men now governor andrew bailey, of the bank of england and jeremy hunt, the chancellor said to c, i to i were previously the bank and the government were seen to be working in opposite directions until this all has a political effect to join a would greatest ability save the prime minister list trust his job. sweat. well, frankly that that is a different question. yes. inexplicably linked to what has happened in the last few weeks, but in a sense, she innocent. she is fighting now a very personal battle for her job. the newspapers, one of headlines like the premier, fighting for her survival at her job, hanging by a thread, westminster talk full of plots among m fees. once again to oust at the 3rd prime industry, it would be in a row for this party. of course, that is easier said, unless she's willing to go of her own account than done this trust is going to set about trying to shore a possible by calling her cabinet together by continuing meetings with small groups of n piece to who are trying to reassure them one on one, but remember, this is a prime minister now who centr

and the governor of the bank having the andrew bailey who has said that they will be further interest rate rises next month is set. now to see i to i with chancellor jeremy hunt in terms of a much more orthodox sort of fiscal and monetary set of policies. whereas previously the government at the back of that were essentially seems to be working against each other. yeah, a highly anticipated statement from a chance by john hall outside the bank of england. thank you very much for that. let's cross over to westminster now. and andrew simmons is there for is the political fallout continues. of course. can the prime minister fav her job? well, every one is sir, placing different sorts of bats on that one. will it be a long time? will it be a short time? the majority think she's definitely going to be going. the question is, when an hour what's happening here in westminster is a flurry of rumors of unprecedented proportions. it has to be said, this place when it comes to backstabbing and plotting some people in there, make it an art form. and what's happening now is it is an array of attem

facing the markets directly, andrew bailey meeting with the world's top bankers in washington, dc onintervention for the financial market. the source of the issue remains the market for uk government debt since the mini budget. the bank of england has once again had to intervene to protect financial stability from a fire sale by some types of pension fund. the new intervention did temper short—term borrowing rates, but the effective cost of borrowing over 30 years carried on rising. these rates remain higher than at the time of the mini budget. while two—year rates were down a little, the existing rise is still filtering into mortgages. today the rate for a typical two—year mortgage fix shot up again. it only reached 6% nearly a week ago and is already now nearly 6.5%. the governor was making it clear to these pension industry funds that there were clear limits to its help. a message to the firms involved, you have three days left now. you've got to get this done. because again part of the essence of a financial stability intervention is that it is temporary. stability intervention i

following in particular, i think the intervention by the bank of england governor andrew bailey on wednesday saying that supports the bank of england to be given in to the u. k. bond markets, the guilt markets would come to a screeching halt round about now on friday, cause a huge panic over the middle of this week in financial markets and ready applied a great deal of pressure. i think, to the government to change course. it had been on the causes sometime, the reaction to the mini budget barely 2 weeks ago. we did funded tax cuts with a huge borrowing with the implications that these borrowing would be sorted out at some point in the future. but not now the panic that this started in financial markets. all that is already been effectively price did. and this you turn was all already looking quite likely. it's just a question of how long was it going to take before they come? not that the problem today, i think is the least trust as you turned on parts of the big extra borrowing. she was planning $18000000000.00 parents out, the remaining $43000000000.00 pounds of tax cuts and other things.