corruption bank of england staff. said to have condoned currency traders conduct bank of england officials told currency traders it wasn't improper to share impending customer orders with counterparts had other firms a practice at the heart of a widening probe into alleged market manipulation according to a person who has seen no it's turned over to regulators this is regarding an april two thousand and twelve meeting by some four ex traders and the bank of england and apparently the notes taken were suggesting that the bank of england said it was ok for them to basically manipulate and you know front line and legally trade on insider information but well this is what i'm saying about the central banks now they started off as quote lenders of last resort which means they have a somewhat arms like the relationship with the banks that they're service saying and if need they can come in and provide liquidity on an ad hoc basis but that's no longer the case now they as we pointed out here the bank of england because they a

the bank of japan keeps his policy untouched while expanding the loan programs. bank of england holocene maker speaks exclusively to bloomberg. he said britain's economic may see the central-bank forecast stop -- bank of england policy these exclusively to bloomberg. >> it may be beneath it. in theunt of slack economy will decline gradually. >> $25 billion deal for activists, it is said to be close to agreement to by novartis. welcome to "countdown." i am mark barton. it is 6:00 here in london on a tuesday morning. moberg reports are standing by ready to deliver the stories that will drive your day. -- bloomberg reporters are standing by ready to deliver the stories that will drive your day. why it is chilcote will talk about the possible data ryan chilcote will talk about the deal.le activis jonathan ferro has more. we are looking ahead to car sales figures next hour. another month of growth would keep the industry on track. since 2000expansion seven. news overnight from the bank of japan that boosted lending programs a while sticking to the plants unprecedented asset purchases

how is he going to manage expectations at the bank of england? of course, we have another big press conference from draghi. will we see a rate cut today? how on earth does this central bank deal with a situation where we have inflation significantly below target. enormously below target. it happened a few years ago. we'll talk about that. back to you. guy johnson will be here with "the pulse" in about 10 minutes. sony forecast an unexpected loss for the year and said it would cut another 5,000 jobs worldwide. the company confirmed that it is selling its japanese p.c. unit which includes the vio brand. mcdonald's is opening a new tore in vietnam. they have dairy queend carls jr. -- coca-cola is buying a 10% stake in green mountain coffee roasters for about $1.25 billion. green mountain is behind coffee brewers and will help introduce a system for making single serve cold drinks. let's get some time thoughts from the head of research. a very stark warning on emerging markets that the worst is yet to ome. a lot of structural reforms not in place. ta

of deutsche bank. he used to work at the bank of england before joining deutsche bank, and bank of england is also meetings interest rates. give us some insight into what we will hear or not hear from the bank of england and the governor. >> i don't think today we will get any big news from the bank of england. there is debate over what to do .or guidance, the threshold the threshold is we are closer and closer to meeting the threshold. our forecast is in q2 already we will be there. >> what do we think, what next? one option is that he ditches the threshold, moves it to 6.5%, or try something new. >> you have two options. forward guidance and you gave a numeric one. moving that after six months is not -- you risk losing credibility forward guidance because every six months you change it, then what is the point of giving a numeric number? >> the world can change a lot in six months, so if the reason for changing is, well, what happened to the u.k. economy as it took off faster than expected, does that not go some way to the defense of changing it? >> you can change it now. if the economy moves faster, it

the bank of england publishes its quarterly inflation report today. rk carney will present an updated version of his forward guidance policy. we will bring you the whole press conference live at 10:30 london time. >> the report follows janet yellen's testimony to keep rates near a record low. for more, joining us is the unicredit chief of -- janet yellen did a great job. and going to continue this reign by consensus. anything that lets you on easy or are you feeling more comfortable that this is a person that has the situation firmly in hand? >> it was a continuation of what they had. nobody thought that janet yellen was going to come out and change anything around really. she has a little bit more -- then ben that bernanke had because of the change. sam fisher coming in, a powerful man. a very got to drive careful road, but she is super competent. about isle ask me whether she is going to be as elegant and communication as we have had in the past. i think that is the big question. she has not said anything until now for about a year. we do not really

but the big news from the bank of england will be next week, ross. you. >> helia, thanks for that. plenty more to come from helia. we'll have that bank of england rate decision at 13 o'clock cet, 12:00 london time. >>> given what we've seen in the markets in the last few weeks, the outflows, in emerging markets in particular, you've seen them flowing into europe and to japan. >> yeah. i was very surprised. we wanted to see -- going back to your question, contamination, etcetera, obviously one of the usual suspect is japan. very high cyclical market. the japanese market went down a lot. we thought it would be flowing from japan. the second highest from europe is -- >> that's foreign inflows? >> that would be foreign, essentially. so, again, that is actually an encouraging signal because it tells you you don't have a broad based sell-off. it's very much an em story for the time being. >> given what we're seeing with the nikkei over the last -- what is it, two weeks? the correction that we've seen there. and it is talking about all these inflows, foreign

that is what the bank of england is targeting. fs nebulous the output gap we are trying to figure out a way of understanding so we can set policy. it is many moving parts. the bank of england, yes, rates are not going up anytime soon. lower than we anticipated. we still do not know which metrical we are going to use. the other agency thing he said was, he thinks it is probably more likely that if the spc will be the mechanism by which the bank will choose the housing market and the new rules and tools the market has at that will be the story moving forward. >> that is why he said the rates are lost. >> precisely. we have all the details. we'll get monetary policy. show, plentyof the more of this exclusive interview. it was a great interview. he has to cobble together. >> it is fascinated. is werst-case scenario end up with more of the same. the same old faces we have seen with the forefront. here is this guy under 40. the youngest prime minister coming into the country in for ever. you kind of wonder if he will shape thinks of as i

it is appropriate for congress to consider other measures. >> the bank of england governor mark carney the inflation report today. unemployment hovers just .1% from the bank's seven percent threshold of considering an interest rate rise. showing aal data 10.6% rise. most analysts predicted a rise of just one percent in the official data. >> welcome back to "countdown." the ceo spoke about the resilience of the trench consumer banking unit. in an interview in paris. >> last year, the general environment in france was week. specifically with a weak credit demand. that the global return of our french activities, we have maintained a cost-based flat. is a bitok for france better this year than last year. we do not expect significant growth before two years from now. the new policy of the french to bement, which has executed this year and next year has to be a positive outcome for france. >> there is a problem with the decision how you cope talks it is a problem for the industry. the problem on the banks. and the tax cost also is an issue that the governor is trying to address. >> coming up

been speaking to the bank of england policymaker. ary policy should not behind right now -- titans right now because of spare capacity in the u.k. economy. there are clear signs there is slack in the labor market. although unemployment has come down sharply, it almost remains above a level consistent on average with our hedging inflation target. there is a group -- a degree of slack there. this morning, we have had date out from the u.k. economy, indicating inflation is now sub target. we are at 1.9% on the inflation rate. great interview with david miles. he did not mind that there was change, but what do we look at now. >> it is hard to understand when output gap is. the bank of england does not have a good track record when it comes to forecasting key metrics. this is a tricky metric to forecast. can the bank of england consider a rate hike and now. we will have more from the interview later. >> let's focus on the bundesbank. rates -- there's a risk of a real estate bubble. let's stay with central banks. onthey're keeping their foo

ahead of the latest unemployment data and minutes from the bank of england. vefore all that, let's you a few more reasons to stay with bloomberg this morning. we have some big interviews coming to you. we will be speaking to the ceo of the fourth-largest brewer, joergen rasmussen. >> the peugeot executive joins bloomberg, his first interview of the day. --let's look servo into let's look further into the numbers from peugeot. they're beating analyst estimates manus cranny joins us now with more. >> this is quite a bit better. the loss, 177 million euro and the market estimate was for 247 million euros. it looks like they have beaten on the self-made target. target was to reduce the cash burn by 50%. crash,uld generate hallelujah. in the latest they said they would do that is by the end of 2016. they are in joint venturer talks. peugeot a big part of and this is where the state got involved in with 7 billion euros. they're putting a joint venture together which they say could intentionally generate more cash nearly 1.8erley-- billion euros. they have a new part

of daimler. >> coming up, it's a big day for central banks. we're going to look ahead to the e.c.b. and bank of englandand we'll tell you what else to watch for in the rest of the day. ♪ >> welcome back. four minutes to go until the bank of england releases its latest interest rate decision. . there you go, 1.6291. nevertheless, a pretty elevated level. this is euro dollar, 45 minutes until the e.c.b. delivers its decision. then, of course, we have the press conference. >> all-important press conference, which john will cover for us. international correspondent hans nichols is back with a look at what you need to know for the rest of the trading day, central banks and technology. >> yeah. well, no one can really guess what mario draghi is going to do. he's shown an ability to surprise the markets before, so no one expects there to be an interest rate change, but that probably means there's going to be an interest rate change. also watching shares of twitter. we've been talking about this all morning. last night they reported earnings. their growth simply isn't there. they don't have the growth going fo

i guess the bank of england has a reasonable argument to say we condone certain practices. we should done that. we did not know the extent of what was going on. even if the bank of england should have escalated it, it is not mean the behavior of these in the was right with confines of the law. if what they are doing is no advised -- is now advised to be illegal, the fact that the bank of england did not do anything about it i do not think will help them in the courts. i am, for one, very interested to see how the bank of england response to allegations over this. thank you very much. a great story from london. when we come back, from the runway to the app store. a victoria's secret model talks about her other career. yes, computer coding. that is next. ♪ at homeshe is not writing computer code, she is stretching the catwalk for powerhousesshion like pronto. she is the very real lindsay scott, a model who was working on several different mobile apps. we talked about a few of them. >> i have two. one is an app for sponsoring ugandan news. there's also an app for models and act

they know the bank of england is committed to keeps rates low. d it seems like yesterday, just six months ago, mark carney came in with his flagship policy of forward guidance. but many say he made a mistake when he pegged that to unemployment. like we've seen in the u.s., unemployment has fallen fast and we are like whiskers away from that threshold, that 7% unemployment threshold. so what do you do? he's told us that today he's going to update guidance. does that mean he abandons it? does that mean we're going to have a -- does he said we'll look at wider economic indicators? or will he look at something like a time contingent? it's possible that he does say to the market, look, we are going to keep rates on hold until 2015 unless you get one of three knockouts, whether that's financial stability risk, whether that's going to be medium term inflation, although obviously we are hitting our inflation target for the first time in years or you get wage inflati inflation, which we haven't seen in the uk. because the question on unemployment is there

of the market, we have to look beyond that. janet does not see bubbles. >> for now. that makes everybody feel better. let's get to another central bank. the bank of englandovernor present his quarterly inflation report and everybody will be listening for an update on forward guidance. jonathan ferro will be listening and he joins us now. >> thank you. after six months, the bank of england's first attempt of forward guidance is at an early death. the unemployment rate is seven percent. back then, they did not see it happening until 2016. here we are and it is 0.1% from the threshold. the central bank will have to revise the forecast. this time, they will be pressed quite high. >> what are the options for any change of the forward guidance. >> so many options. at this point, everybody is guessing. she could do what she said she was going to do. put wages very low. there has been no growth in the last several years. you could use a broader range of data points. there is some flexibility. at the end of the day, the bank of england wants one thing, for rates to stay low. the problem has been how to best communicate the message. they could do something bold an

that are causing wealth and income inequality what why the wiser he's talking about you know bank of england should be the bank of inequality should be its official name he thinks that this whole idea of low rates to stimulate it doesn't stimulate the economy that's another doesn't stimulate employment no it takes it a little profit thing else in this country the economy is driven two thirds of it driven by consumer spending well so from the majority you've taken money away and you wonder why they're not spending anything there was a seawall so feeling at the bank of england that somehow if you cut interest rates people would spend because there'd be no point in saving but of course their mind theoretical column is they've never actually had to live in the real world they don't understand that if you all living on a fixed income and your income is going down you're going to husband your resources not simply splurge on a new car it's ridiculous can we say that garnett was officially now lying when he said that when employment got to six the happy. that he would possibly resign ok well it's go

of the day, this is how central banks work. what's people were complaining about the bank of england minutes. icated to rejit formal guidance -- forward guidance. but anybody who gets really bored has to read the bank of england minutes. it is the obvious surprise. there are a ranging discussions that we have had. the have not done that "couple of years. i'm not actually that surprised right there. they did not have the votes on the forward guidance. they had the discussion and it is clear that the fed side of things really interests me right now. data.o not care about the it does not feel it they do. we have a whole stream of that data. i have not heard from the fed officials say that they are concerned. is not ane that it outlier. what they want to see is a substantial change in direction and the economic data. but thank you a lot. 7:26 in london. look.take a big -- take a the transition into digital in the music industry. >> in london, these are the bloomberg top headlines. declared akovych has truce with opposition leaders. yanukovych says that the government and the opposition will contin

for the bank of england, this experience is six months old. ill be whether we should be doing it at all. it is not just about the next phase of guidance. later this week. it is a semiannual testimony. you want to get into what she thinks about policy and also an insight into what she is going to do on the other side of the atlantic. this rate has fallen way quicker than anticipated. the inflation is not there. your next guest is full of that. >> deary me. that is below the belt. >> thank you very much. that last lansing blow. little be back with a showdown. and an accommodation on where we are heading in the markets coming up this week. >> welcome back carried i am mark barton. >> week move ahead to equities markets and investors. let's talk about results. we talked about some of the central banks making the headlines this week. how has this earnings season then? -- been? >> i think the ftse still represents reasonable value against the s&p 500. we still have much of our business on an international basis. it does represent some good value. the

we keep suggesting that the bank of england could use macro prudential tools in order to cool the housing market if it has to. interestingly, bank of america suggested this week that that is not going to be sfusht and rauf. >> yes, i'm sympathetic to that view. mark carney keeps talking about monetary policy being the last line of defense in dealing with financial stability issues, including housing, market and credit issues. i think at some point that will have to be supplemented by higher interest rates. if you raise the price of credit, you'll limit the demand for it. so, yeah, at in point, i agree monetary policy will have to be tightened. but i think it's still 12, 18 months down the line before we get there. and it's certainly too early to be talking about a problem in the housing market. either a price bubble or mortgage borrowing racing away. mortgage borrowing is still rising at let me tell less than 1% a year. the borrowing, the credit situation is still quite muted. in your note this week, you're talking about phase two of forward guidance for mark carney and for the bank of en

present this is a disaster in the making so then and of course you know mark carney over there bank of england says you know the economy's not recovering we need to keep interest rates low so there's a direct. contradiction to what cameron is saying is being repudiated by his own bank of england chairman so those two guys are not on the same page there you come to me as being whacked to death because interest rates are being kept artificially low that's the primary cause of the economic malaise is also the primary cause of this flooding because malinvestment over the last twenty years have taken money out of stuff that could be useful like preventing floods and put in the bank speculators you soon i'm going to miss all occasion let me read what engineer by the banking garrisons clear and simple as the nose on your face is the struggle ball going into the hole doing rather you owe world championship the guys on fire who's going to get the crucible who's going to win again you heard it here i'm calling it six start world champion only behind that other guy. and there was no other guy who was mor

as a ceo, you get the people from the bank of england telling us that there will be a gradual increase. you listen to the bank of england -- does that convince you yes, i am ready to take the next jump. are they doing a good job of communicating you as a ceo? >> i think they are, generally. for us, we are at a terrible downturn in the construction market after 2007 through 2008. volume came up about 25%. we have been in a holding pattern for four or five years. seere now starting to things starting to open up. we think the time is right to expand our network so we don't operate to grow the business. >> constantly at bloomberg and media, there is a property bubble, things are running away. your presence is throughout the united kingdom. you're not test -- not just based here. is there a bubble? how do you look at the landscape of the u.k.? >> a bubble would not be good for anyone in the u.k.. we are looking for long and low price movement. one of the interesting sort of features about travis perkins brand, which is a mixed merchant operation across the u.k., is we are seeing similar gro

bank of england officials are id to have condoned traders' practices of sharing information with other. this is part of the probe into market manipulation. thank you so much for being with us. what does this mean? this itch indicates the bank of england. they saw it and said go on and do it. what does this mean for the b.o.e. snpping >> i think the is this going to rag them into another scandal? >> libor was so huge and this an be big r. >> i think what we're going to see is parliament wanting no get more involved. asking why these concerns were not escalated. why the bank of england is not taking any notes about this discussion. why dependent they want it to go further? that in itself could have anfect on how quickly the organization moves with regulators. >> give a sense of where we are now ins of regulations. what are they exactly looking at and whats their latest position? >> we have about 12 authorities lobally. haveate thest week, we now a new york financial regulator getting involved asking banks to produce documents about their positions and at least 20 have now been suspends a

bank of england scaffold -- staff may have condoned practices and current team manipulation. s not improper to share customer orders. bloomberg reporter uncovered the story -- what does this mean for the bank of england? wille key question, is is, distract the banks into another scandal? they were criticized heavily for warnings.g will we see this happen all over again? >> how will this affect the probe which seems to be widening into alleged manipulation? >> we will see our limit asking outtions as to why these -- of concern that the -- why weren't they escalated? >> remind us about the conduct which they are said to have condoned. >> these traders are said to have been in chat rooms discussing trades ahead of the -- to make sure they were -- they profited from this as well. >> these instant messages are the center of inquiry. every day, we are hearing about more firings and suspensions. give us a sense of where this big probe is headed. >> we have 12 authorities, at least 12 authorities looking at this. this week has seen a nether ramp up in the investigation. the top new yo

all sorts of arbitrary delays so people are suddenly losing access to food yes mark carney the bank of england chair speaks of the u.k. economy achieving escape velocity the idea being that if we keep the housing bubble pumped at some point it will trickle down to the masses this is the same theory that was used in america when the us army rolled the claws of the plains and displaced the indigenous population thinking that someday when the american economy grows the american indian as they're called would somehow find a benefit that two hundred years later has not happened. here cameron is rolling across britain displacing millions of british people leaving them consigning them to a life of poverty and flooding with no insurance house prices and norma's bubble because he thinks he's going to achieve escape velocity according to his theory what so far throughout history has never ever happened you've never been able to cure a debt problem by increasing more debt what cameron fails to mention and this is part of his cruel sadistic propaganda is that the debt in britain has never been higher he's

by the end of this year that will come through. >> the bank of england taken a lot of shtick over theirdance policy. the crucial question are they in the right place or managed to get ahead of the curve as far as policy is concerned? >> they've done the right thing, bidding guidance and returning to inflation target. they use a lot of words in this new inflation report but i don't think it amounts to anything. just we're going to target inflation. i think that's the right thing to do. the economy clearly outperformed expectations and most people's expectations over the past six months. so a rate hike is needed sooner than they previously thought and think they've moved quickly to admit that. of course there's a credibility loss from chopping and changing policies quickly but the worse credibility loss would have been twng a guidance policy in longer needed. >> robert, good to see you. thanks. robert wood joining us from berenberg. the ftse is down 0.4. there it is, look. >> yes. >> very different, very little difference from spain right now, italians loving that, very little though in t

what are the implications for the bank of england? >> the key thing here is the bank of england is yet again in controversy of rate rating two years after it was criticized by lawmakers are not heeding warnings. here we are with another benchmark taking place. that hasm one of those been accused of various manipulations of the fx markets, i am saying the bank of england condoned it. what does this mean for the legal cases? pre-k's obviously, it could undermine the investigation. we have not gotten the date of the probe and the u.k. yet. line betweenin market practice and what could be manipulative. could potentially undermine the investigation and put pressure on regulators to come to conclusions more quickly. >> what do we know about the investigation so far? saying -- wes are had martin wheatley, the chief executive of the fca, saying he does not expect anything until 2015. in light of this investigation, they will pressure the government to come to conclusions more quickly. >> we will leave it there. ongoing. there has been another

data coming out, bank of england minutes, we will get some insight and see you in a moment. ♪ >> welcome we getting breaking data out of u.k.. 7.2%, 9-0 on the bank of england for both votes. fairly mixed up numbers, let's get some analysis. >> just looking at the on implement rate, we have a tick higher at 7.2%. this is a three-month rolling average. in the month of november, it was 7.4%. 7.1%.ed you see sterling trading lower on this one. thing i am looking at is the quality of the data, the underlying data below the headline data. if you're looking at weekly earnings, you see a tick higher to 1.1%. it is slightly better than anticipated. encouraging but still below the rate of inflation. this is a key metric. we are talking about capacity, weak productivity. inflation might be coming lower but wage growth isn't matching it just yet. that is a concern. those two metrics are not mutually exclusive. if you see rates push much higher it will feed into a higher number as well. if you are worried about guidance, look at the minutes. they agree, no change to current policy. no knockout was b

argue the zero interest rate policies and in this country have got the monetary policy committee bank of england mark carney over there it's bank of england and they are they the vortex of the cheap money would it make sense for the green party to say look we want representation on the mount terry policy committee we want our say because in order to weed out the parasites you've got to make the environment it hospitable to parasites and that means raising interest rates even though the home owners are going to block if you want to get rid of the parasites in the criminals in the city you've got to raise interest rates where were you on this idea well first of all this is way out of my depth take a because and this is this is something the green party does have policy on but of you i think generally is that you don't have to have a green that necessarily you have to or are you talking to green party necessarily but you need somebody there who understands west a about climate change and secondly about how society can sort of work when it's a movie qusai heap is clearly the more unequal society the

and the bank of england could be left playing catch of up. >> isn't the important thing getting some inflation? just because we have growth doesn't mean we'll have inflation, particularly on wages, is it? >> i think that's what they could use to change the forward guidance in the inflationary report. the rates have barely risen 1%. as we start to see that change, employment is expected to rise and the pool of continued labor will continue to shrink. so you expect wages to start to be up this year. and if we start to see a slight uptick in wages with the strong growth figure, the bank of england looking two years ahead of course for inflation could be seeing an uptick toward the end of this year. >> yeah, i think we are already seeing some of the wage pressures, that's going to be seen in the official data, certainly by midyear and the mpc is a committee, it is not just mark carney, and i think you're going to see increased pressure on wages beating through with the sentiment coming through with the rate hike by the end of the year. >> chris, thank you for that. chris williams, james

nevertheless, if you look at what the bank of england is concerned about. sures stock really by the labor market still. even though it's using a broader range of labor market indicators. we think by the beginnings of next year, the monetary policy committee is going to be concerned that over the medium term, inflation pressures will start to build. so that's not to say that inflation will be rising at that point. we think inflation is going to stay around the 2% level over the next couple of years. but the mpc we feel they'll have to withdraw some of that stimulus by early next year. >> sarah, thank you. nice to see you. sarah hewin joining us. and the final thoughts from guy. are you more interested in ftse 250 than ftse 100? to play that or not? >> well, a lot is made of the very international focus of the ftse 100 and supposedly more domestic focus of the 250. but it's still only about 50/50 domestic and overseas. that kind of trend is probably quite a positive one or negative on utilities which form a reasonable part of the domestically focused ftse 100.

we get minutes from the bank of england and the fed later on.you on and up-to-date with bloomberg's top headlines. new standards approved by the federal reserve will require the biggest foreign banks to hold more capital in the united states. dollar in the0 billion u.s. will have to comply with the standards. china reduced holdings of u.s. treasury debt in december by the most in two years. the federal reserve announced plans to slow its asset purchases. china cut its position in u.s. u.s. government bonds by more than $47 billion. china is the largest foreign u.s. creditor. clashes in ukraine between police and antigovernment protesters killed at least 25 people according to the country's health ministry. hundreds were injured in the bloodiest day of the three-month standoff. fires burned through the night in kiev as demonstrators maintained a shield against security forces. the u.s. and european governments condemned the violence. let's bring you up-to-date with the latest from ukraine. ryan chilcote has been monitoring the situation. >> those

morning, new details emerging that indicate the bank of england actually condone the practice, echoingccusations that the central bank was behind the libor fixing scheme as well. we are here with richard farley, partner in the leveraged finance practice of all hastings. why don't you break this down. .t is such an amazing game british bankers and bankers all over the world were playing this for years and making millions. it was almost legal. >> the accusation is that the exchange rates that are in london in the afternoon based on traits a minute before and a minute after, a certain timeframe. >> 4:00 p.m. in london. >> what is alleged is that these indexs, to move that one way or the other, they would stuff the channels with trades lower or higher than they would actually be. parts, theye best had online chat rooms that had nicknames like "the cartel. " "the bandits club." you know you are doing something wrong if your chat room is called "the cartel." almost -- i have a seven year-old. you can have one cookie, then you walk back and 11 cookies are gone. you told me it was ok. >> you d

these are things the bank of england understands.e inflation rates -- given the wage inflation rates, they have been falling and there is no need to be aggressive. the big picture argument that applies to the u.s. and the u.k., qe has created a distortion in interest rates and bond yields that is artificial. they may have impeded saving investment decisions on the part of corporate and households. what we need to do if we can is to return to a more normal structure of interest rates. he healthy. i think i can happen in the u.k. we are not in a depression. thesure we are not at pre-levels of gdp, that was all inflated by credit and consumer spending, all artificial. the new normal is things are ok, we do not need to dramatic increases in interest rates. the ball can start rolling later in the summer. >> thank you so much, neil mackinnon, strategist at the tv capital. isery for commuters as the tube strike begins. we look at the policy changes at the heart of the industrial action. >> michael kors makes a fortune, we find out how the o

of the bank's policy. dollar-yen is right around 101.50. the british pound is staying in a tight range against the u.s. dollar. many economists forecasts the bank of england will decide not to change course at today's meeting. the peso rose after the key rate stayed at 3.5%. they say the scope for keeping interest rates unchanged is narrowing given the pickup in inflation. >>> the consortium in charge of a panama canal expansion project has ordered its workers off the job. the group is involved in a dispute with the canal's operator. the workers are building a wider shipping lane next to the original canal. construction began in 2007 and is expected to be completed next year. >>> a spanish-led consortium is in charge of the project. officials with the group say they've suffered $1.6 billion in cost overruns. they say a faulty topographical survey conducted by the panama canal authority is to blame. the two sides had been engaged in negotiations over the issue. the talks broke down after the authority refused to make up the money. >>> that is going to do it for biz tonight. let's get a check of the markets now. >>> the african country of burr keen nah fast