the bank of england refused. men deciding the bank's future deny it was ever a serious offer. i would have welcomed any approach that was going to work. the problem was lloyds showed an interest for a couple of days but nothing — they never made any offer or anything like that. lloyds never came to me and said, would you lend to enable us to buy northern rock? i think they did it because they knew that it was pretty silly for them to ask for money that was special subsidy to them. so a fire sale of northern rock to lloyds was never going to happen? it was never going to happen. it's a red herring. so, the lloyds takeoverfailed, but it's claimed the bank of england could have saved northern rock by giving the rock cash. but behind closed doors. in other words, a secret deal. the bank of england lends the money. it doesn't tell anyone. the rock gets through its cash shortage and back on its feet. the markets know nothing. the northern rock insider said they wanted to do just that — a secret deal. lending without le

. >>> the bank of england today marks 20 years of independence to celebrate the anniversary the bank is holding a two-day event with speeches by theresa may, stanley fischer and christine lagarde. andy haldane says he sees encouraging signs of pay growth. the central bank chief economist said he was part of the mpc majority who said winding down stimulus might be warranted in coming months. haldane said any normalization of rates would be a good news story. willem sat down with the founding member of the boe's monetary policy committee and asked if she thought rising cpi was a sign that britain's economy was strengthening. >> demand stayed more buoyant than some people expected after the referendum vote. the official view coming out of the bank of england is that this increasing inflation is a temporary pass through from the fall in sterling but i think that it's very hard to disentangle the effect of the fall in the currency from the other demand pressures unemployment is at very low levels in our country now, which is a good thing. but that is generally followed by an increase in w

george: bank of england. kathy: the fed. george: bank of england. or austria? none of the above. i will take has you stand through the end of the year. germann: is shorting the two-year the new widow maker on the yes or no? george: yes. matt: yes. kathy: yes. jonathan: thank you for joining us, george rusnak, kathy jones, and matt brill. we count down to that reserve decision with janet yellen next week, full programming here on bloomberg tv and bloomberg radio. that does it for us. we will see you next week. kong, watch hong the replays over the weekend. this is "bloomberg real yield." ♪ p.m. in new york, 5:30 p.m. in london and 12:30 a.m. in hong kong. >> welcome to bloomberg markets. >> from bloomberg world headquarters here of the top stories that we are following. investors are shrugging off the latest provocation from north korea as the rogue regime follows a second missile over japan. we break down the market moves. google's parent company is possibly setting its sights on a major stake, and reasons behind the move involves uber. giants, what they are sa

george: bank of england. kathy: the fed. matt: bank of england. jonathan: buy and hold to year and. 0-year or austrian bond? kathy: tajikistan. matt: none of the above. jonathan: you've got to pick one. matt: i am selling january 1. jonathan: is shorting the german two-year the new widow maker, yes or no? george: yes. kathy: yes. matt: yes. jonathan: thank you for joining us, george rusnak, kathy jones, and matt brill. we count down to that reserve decision with janet yellen next week, full coverage and special programming right here on bloomberg tv and bloomberg radio. from new york for our viewers worldwide, that does it for us. we will see you next week. at 12:00 new york time, 5:00 p.m. in london and if you're in hong kong, watch the replays over the weekend. do something else. this is "bloomberg real yield." ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and sp

is it fair to assume your eyes on the bank of england to a degree today? 96, yes. this is probably one of the most interesting non—super thursday meetings we have had actually, because as you said we have at the high inflation, the wea ker have at the high inflation, the weaker wage growth, so it is that conundrum that the bank of england really have to deal with today. because policy would suggest that when you have inflation going up, you would raise rates to take that, but then there are so many other things to content with and they are so things to content with and they are so scared of knocking any kind of fire jail economic recovery, given brexit. this thing about the consumer squeeze, brexit. this thing about the consumer squeeze, but hike interest rates because it will affect consumers, but there is no point in wages rising if inflation is rising at the same time because your wages are still being eroded. i think there is too much focus on the weird side and not enough on the inflation side. it is interesting, looking at oui’ side. it is interesting

when we voted to leave the european union to me here in the uk, we saw collaboration between the bank of englando lots of provision for banks in the wake of that decision to leave the wake of that decision to leave the european union, and the concern about the run on banks and what effect they could have on markets. we are seeing pre—emptive action, we? we saw a great reaction from the bank when the brexit vote took place. that had significant consequences for many companies. bringing interest rates down souls problems, but it does not solve all problems. —— solves problems. banks have significantly more capital for things that go wrong. however, if a payment system did not work, is the customer going to say, well, that is all right, the bank are well capitalised, but i can't actually get paid? it is interesting. chris, thank you for your time. this is something that will be discussed at length elsewhere. we have a lot on the anniversary on our website. a lot of comment about where we have come and where we have come from. do ta ke come and where we have come from. do take a look when you have t

stay the handle on the bank of england. has forewarned the market of a potential monetary policy tightening only for that not to happen. perhaps the bank has cried wolf on a number of occasions and investors will be mindful that the bank could be enough kind of scenario once again. jon: we've heard this so many times. we don't depend on analysis -- we want economic analysis. when on up women dropped below 3.7% -- unemployment dropped below 3.7% -- we are at 4% or something. they are still talking about wage growth coming in at naught. they have cried wolf many times before. the data comes out and it's off the table again. why do they keep putting it on the table? what is the objective here? just to bring in some two-way risk? jeremy: i think they don't like having the market with any directional bias. they want to have some installation of two-way risk. mr. carney did make that reference to 7%. -- theeen downgrades bank assuming it's around 4.5%. we are below that could the labor market is advancing. we could see closer to 4

we will have extensive coverage of the bank of england when it comes out. er. the ftse is flat. this is bloomberg. ♪ francine: how will the bank of england process inflation was sluggish wage growth? we get the rate decision in a few hours. a different dilemma for the fed. 1:30 p.m. u.k. time. savvy setback for the kingdoms ipo. we have the latest on what could be the world's biggest share sale. good morning. this is bloomberg "surveillance ." first'

bank of england, 20 years of independence. row without a difficult debate. the idea at the time was we had had chronic inflation for the best part of 30 years and to keep the money printing authority away from the temptation, was a good thing. but moving on from the decision 20 years ago we have gone to the other extreme and that no it is the first body everybody goes to. mark carney said independence wasn't omnipotent but he and his peers have gradually assumed that idea that they will be omnipotent and they interfere in all areas of life far beyond what a central bank should do. what sort of areas do you interfere in that you think they shouldn't and what are you talking about? there is an argument there shouldn't be a central bank at all and bank should be institutions that rise and fall just as insurance companies do. banking for 300 years has been privileged and the central bank has grown up privileged and the central bank has grown up to backstop the vulnerabilities but that is all they should do, the last line of defence

is the bank of england's mark of 20 years of independence from the united kingdom. om britain, from central banking and the world beyond. the latest round of brexit talks wrapped up in brussels. >> we get the policy announcements from the central banks of egypt and mexico. >> let us go to the bloomberg business flash. telecom is set to name genish as its ceo. it was approved unanimously yesterday. the move cements the telecom management lineup after being led by three ceos in the past 18 months. novartis is considering a deal for radio pharmaceutical companies advanced accelerator applications. this drugmaker has approached aaa about a deal. that comes at it is seeking acquisitions to boost growth. the civil aviation authority is launching enforcement action ryanair forna -- failing to give customers accurate information about their flights. this consultation will last seven days. that is your bloomberg businessflash. >> thank you. the bank of england was granted operational independence over monetary policy. >> the central bank is holding a 320-yeare to mark its his

let's talk about the bank of england. it is front and center in america. nd meeting in one hour? francine: it is big because we had inflation figures. i am really looking for to speaking with jamie. we have to see if the and intion of the votes favor of a hike. francine: richard clarida will join us on interesting conundrums of our major central banks. right now in new york city with her first word news is taylor riggs. islor: north korea ratcheting up the tensions after you hit with new united sanctions. kim jong un's threatening a military regime. japan called the statement extremely provocative. the first time in the last quarter century, u.s. president has stopped a foreign takeover on national security grounds. president trump has blocked the chinese-backed investor for semi conductors. china said national security reasons should not be used as a protectionist tool. democratic leaders in congress if they have a tentative deal with trump on the so-called dreamers. childrenprotect brought to the states by deportation. investigation into russia influence

prices are rising by an average of nearly 3% a year and that is way above what the bank of england is. and traditionally the way it deals with inflation is to raise interest rates, to increase the cost of money, discourage people from spending so much. so in a couple of months‘ time, just as christmas shopping gets underway, we may have higher rates so more costly mortgages to contend with. so we think interest rates will rise by 0.25% in november. that will take the base rate back up to 0.5% where it has been for the past seven years or so. the crucial thing now is what the bank of england does around communication, indicating to businesses and consumers whether this is one and done, just a reversal of the emergency cut post the eu referendum, or whether this is the beginning of a series. this was mr carney‘s firmest indication yet that he would vote for a rate rise in november, although it is the whole of the bank of england's monetary policy committee, nine people including independent economists, who will be taking that decision. simonjoins us now. how big a rise could we expect?

after the bank of england's warning, the pound jumped to more than $1.34, the highest it's been for a that it could be raising interest rates in the autumn of this year, thatjust makes the pound a more attractive currency for investors to invest in. it raises its value relative to other currencies. the higher pound won't help exporters, because foreign customers may have to pay more for their goods, but it should also mean imports are a little cheaper, slowing down price rises in the shops. executives at the security firm gas say they are ashamed by footage showing staff abusing detainees at one of their immigration detention centres. they were giving evidence to mps — following an undercover investigation by the bbc‘s panorama programme — at a centre near gatwick airport. 0ur social affairs correspondent alison holt reports. it took an undercover panorama investigation to expose the realities of life at brook house immigration removal centre, near gatwick airport. run by gas, it's plagued by drugs and self—harm. with some officers reacting to detainees with bullying, abuse, even viol

the bank of england brings out a new banknote with a famous writer on it. gets a wash — not this month, butjuly 2007, the last time interest rates rose a prime minister had just left office and no—one had heard of the credit crunch. more than a decade later, we're hearing hints rates may at last rise this year. in order to keep inflation, or return inflation to that 2% target, in a sustainabable manner there may need to be some adjustment of interest rates in the coming months. now, we'll take that decision based on the data but, yes, that possibility has definitely increased. after the banking crisis struck the bank of england slashed the official interest rate to 0.5%, the lowest it had got in 300 years, an emergency measure. since then, interest rate setters have met 97 times each time the question — when will rates rise? but each time they've done nothing, until last august, when they decided, in the wake of the brexit vote, to cut interest rates to a 0.25%. now the city thinks they'll go back up to 0.50% by december. a rise in the interest rate would he

policy makers at the bank of england voted not to increase interest rates today but inflation is risingeaded towards inventory. here is mark carney, the bank of england governor. >> in order to keep death return inflation to the 2% target and a sustainable manner, there may need to be some adjustment in interest rates in the coming months. we will make that decision based on the data but the possibility is increased. mark: the bank of england has not raised interest rates in more than a decade. the latest bloomberg business flash. vonnie: president trump is arriving now in naples, florida. marine one landed at naples. earlier today, he was in fort myers, visiting families affected by hurricane irma. getting a briefing from officials on relief efforts. later today, we will hear from the naples mayor at about 1:40 eastern about recovery efforts underway. the president is in naples right now, having made comments at ft. myers earlier. i want to bring in our congressional reporter. a lot to digest. tax tour, and a huge amount of news about daca. the president now in some hard-hit areas. wha

theresa may speaking at the bank of england. t economy includes your life, effectively. she said it is unquestionably the best and only sustainable means of increasing the living standards of everyone in this country, in any country she said, and raising living standards of ordinary people is the central aim of all economic policy. she said her government will continue with its balanced approach, and that's dealing with our debts. she pointed out that our country's debt interest per year costs us more than we spend on schools. she said that the free—market economy in her opinion means that poverty falls, access to education widens, and we live longer. there will be more reaction to her speech throughout the day on bbc news. good morning and welcome to the programme. ryanair could be prosecuted for misleading passengers as thousands more passengers face disruption after the airline cancelled more flights over the winter. the airline is being threatened with legal action by the civil aviation authority because last week ryanair‘s b

guy: mark, bank of england, all bark and no bite? ll, i think there is more to be priced in from the bank of england. i was surprised it wasn't more of a reaction. i think the fact they said coming months for a rate rise was a really big change. the market still has an priced in a hike until early next year. i think there is more to be priced in for the bank of england. it was more in the pound and i don't think they are all bark and no bite. many central banks, the u.s. bank and canada are leading the way, but other banks have signaled they want to normalize policy. this is not about tightening policy, but normalizing it. i think there might be more to be priced in. but in the short term, we have a known super dove speaking this morning and that might raise hopes in the short term. matt: we have a great chart on 583 formberg, g #btv customers who want to ask -- access it. cpi goingine, u.k. back to the mid-2000s. the white line is the bank of england's official bank rate. you can see that when cpi spikes andngland in 2009, 2010 2011,

the governor of the bank of england, mark carney, has given another strong hint that interest rates willise this autumn for the first time in a decade. the base rate was cut to the current record low — of a quarter of i% — after the eu referendum. the bank has since been under mounting pressure to raise rates to help curb inflation. mr carney told the bbc that they are likely to rise in the "relatively near term." our correspondent simon gompertz reports. it looks like the cost of money, the interest rate on the cash we borrow, is about to go up, because this man, the canadian mark carney who runs the bank of england, has wasted no opportunity to ram home, like he did again this moring, that the bank's base interest rate is on the rise. what we have said is that if the economy continues on the track it has been on, and all indications are that it is, in the relatively near term we can expect that interest rates would increase somewhat. the history is that the bank base rate last went up in 2007. then, after the financial crisis in 2009, it was cut to 0.5%. and in the wake of the eu refer

after the bank of england's warning, the pound jumped to more than $1.34, the highest it's been for ahat it could be raising interest rates in the autumn of this year, thatjust makes the pound a more attractive currency for investors to invest in. the higher pound won't help exporters, because foreign customers may have to pay more for their goods, but it should also mean imports are a little cheaper, slowing down price rises in the shops. andy verity, bbc news. that is it from me and the team for now. i will be back at the top of a now. i will be back at the top of a now with all the day's news, including the crisis in north korea. well, if you're on twitter, i am as well, and if you want to get in touch i'm @tomdonkinbbc. time now for all the sports news in sport today. hello, i'm sarah mulkerrins and this is sport today, live from the bbc sport centre. coming up: after 37 fights, in 22 different cities, will the undefeated gennady golovkin topple canelo alvarez in his first las vegas fight? chaotic scenes in london as fan disorder delay's —— delays arsenal's europa league match wit

interest rates are at their lowest level since the bank of england was founded over 300 years ago. today, the governor of the bank macro sent the strongest signal yet that that might be about to change. what we have said is that if the economy continues on the track that it has been on, and all indications are that it is, in the relatively near term we can expect that interest rates would increase somewhat. the last time rates went up somewhat. the last time rates went up was somewhat. the last time rates went up was more somewhat. the last time rates went up was more than ten years ago, in 2007. many younger borrowers have never experienced one, but if it happens, what impact will it have? the most obvious one will be on the 11 million homeowners who have variable rate or tracker mortgages. those borrowers have an average outstanding mortgage of £116,000. a quarter point rise would mean an increase of £15 in monthly mortgage payments. i'm not very happy about it because of my mortgage. i'm not ona it because of my mortgage. i'm not on a fixed mortgage. it would be great to get more

i suspect the bank of england will not be raising rates for a while. e us on to the i, we have been talking about the i, we have been talking about the opening day of the inquiry interbrand file, and the i is saying the anger of the families. sir martin moore—bick thought that by saying he understood and felt the pain of the survivors they would be satisfied, he's got another think coming. he needs to understand the optics of it. it's not enough to be a tall retired judge, an elderly partition, giving an indicator that i will not be swayed one way or the other, i'm going to go after the facts. people already feel that this inquiry is running away from them. they already feel that he doesn't understand them, there is a disconnect between him, the panel, and the people. they feel there is a disconnect even between where he had it, a swish place in holburn, and where they think he should have had the opening day of the inquiry, somewhere closer to notting hill. they feel also that the terms of reference of the inquiry, how the incident happened... i mean,

mark: let's talk about the bank of england. we have had many false storms before. s why mark carney has the stor nickname of unreliable boyfriend. an imminentreempt hike by the bank of england? dan: they talked about coming months. really what i would have preferred they said was coming month, singular. typically with central banks, it is the signal that at least is important as the act i would argue because of exactly what you just said with the bank of england. it is the act that is more important than the signal. there is a feeling we have been here before. vonnie: yes. to your point, let's take a look at a chart in our bloomberg chart library, 583, the boe's history of ignoring inflation. is not fair mark carney is about to do the same thing. is it? never the same, right? as we learn from right heart and rogoff. dan: they have sent in the last couple of statements they have used the word exceptional. that is fair. we have inflation, which in their words, is supposed to exceed 3%. ordinarily, it would be fantastic. a central bank with inflation above target. it i

and the way the bank of england in white has ignored all that. ave a history of looking through inflation. does the bank of england continue to do so this time? michele: i think so, because they have very little option. the economy will be weaker in ledgedture and they acknow that in their last speech. they will have to accept the rates are lower than they would want. but it is necessary and already priced in. matt: thank you, chief investment officer at kairos. he stays with us on the program. we will bring you breaking news on the bank -- bank of england policy decision. coming up, asset investment in china rises at its slowest pace since 1999. we bring you the numbers from the world's second-largest economy. this is bloomberg. ♪ matt: welcome back to "bloomberg daybreak: europe." it is 6:15 in the morning in it is 6:15 in the morning in london. in singapore, 1:16 in the afternoon. you can see the weather gathered over the skyscrapers. get out to juliette saly for your bloomberg business flash. juliette: storms led by hurricanes harvey and irma

bank of england the joys a hawkish chorus. y, the hedge fund manager know for his contrary views closes his fund after 15 years. some of these goods of injury -- exclusive interview with him coming up. i am jonathan ferro with david westin and alix steel. we start with futures a little bit softer, down a 10th of 1% and the s&p still storming towards a big week of gains, potentially the biggest since july and euro-dollar from her. the dollar a little bit weaker. treasuries, yields have gone higher, 2.20. alix: you have sterling of over 1%. the highest level since brexit. 1.35 is how we trade. ten-year yields -- dollar-yen with no help -- no hurting actually from the safe haven trade. it traded lower after the news from north korea. gold -- a change from the market. david: coming up at a: 30 eastern time is -- a: 30 eastern time is august u.s. retail sales .. that is all coming up . londoncted terrorist in set off an explosive device in a rush-hour subway train injuring at least 18 people. police searching for photos and informat

i have been long sterling for some time and saying the bank of england shouldn't have cut rates in augusttake some of that back over the past weeks months. -- six months. i believe the bank of england has gotten to a more sensible outlook of policy, managing what they can understand as opposed to the ghost in the closet him if you like. --, -- closet, if you like. but you have rightly described that chart as the unreliable boyfriend and we have seen carney specifically, his viewpoint -- he seems to want to be like a tennis player, jumping from one to the other. but that means he has been throwing froth signals for years. remember, he guided us that when ,nemployment was 7% unemployment is 4.3% as we sit here today. that is huge economic improvement that he previously had expected would lead to some sort of tightening and hasn't. since 2008, since the crisis, the biggest drop in output in 100 years, inflation has averaged around 2.35%. missed their target consistently over a long period of time on the high side and have eased policy throughout that. forbes has demonstrated conclusively in

prices are rising by an average of nearly 3% a year and that is way above what the bank of england isaditionally, the way it deals with inflation is to raise interest rates, to increase the cost of money, discourage people from spending so much. so, in a couple of months‘ time, just as christmas shopping gets under way, we may have higher rates so more costly mortgages to contend with. so we think interest rates will rise by 0.25% in november. that will take the base rate back up to 0.5% where it has been for the past seven years or so. the crucial thing now is what the bank of england does around communication, communicating to businesses and consumers whether this is one and done, just a reversal of the emergency cut post the eu referendum, or whether this is the beginning of a series. this was mr carney‘s firmest indication yet that he would vote for a rate rise in november, though it is the whole of the bank of england's monetary policy committee — nine people including independent economists — who will be taking that decision. i want to bring you some news just in about ryanair,

bank of england policymakers said their first interest rate rise in more than a decade was likely to s continue to build. members of the monetary policy committee voted 7—2 to keep rates on hold at a record—low 0.25% as expected, but said they were becoming less tolerant with how inflation was rising. they said that inflation was likely to rise further above its 2% target to exceed 3% in october — slightly more than previous forecasts — after reaching 2.9% last month. lucy o'carroll, chief economist, aberdeen standard investments joins me now from edinburgh. good afternoon. is this them wanting to have their cake and eat it, too? they are warning that interest rates have to rise but aren't taking concrete action now. if you like the other flirting with us, i have to say. we have a tricky situation here, it is true that inflation is rising, probably going to rise a bit further but on the other hand there are so many uncertain things in the economy around brexit and brecht sees settlements that will hugger. it makes the bank's job board sees settlements that will hugger. it makes the ba

prices are rising by an average of nearly 3% a year and that is way above what the bank of england isow. and traditionally the way it deals with inflation is to raise interest rates, to increase the cost of money, discourage people from spending so much. so in a couple of months' time, just as christmas shopping gets underway, we may have higher rates so more costly mortgages to contend with. so we think interest rates will rise by 0.25% in november. that will take the base rate back up to 0.5% where it has been for the past seven years or so. the crucial thing now is what the bank of england does around communication, communicating to businesses and consumers whether this is one and done, just a reversal of the emergency cut post the eu referendum, or whether this is the beginning of a series. this was mr carney‘s firmest indication yet that he would vote for a rate rise in november, although it is the whole of the bank of england's monetary policy committee, nine people including independent economists, who will be taking that decision. simon gompertz, bbc news. ukip have announced

let's look at currencies ahead of that bank of england meeting announcement, we already heard from thess national bank they kept rates unchanged. will the bank of england do the same that's what analysts expect. the pound at 1.31, slightly lower against the u.s. dollar. the dollar and japanese yen have ban focus with geo ppolitics on the radar. >>> we are following developing story out of north korea the nation threatening to use nuclear weapons to sink japan and reduce the united states to ashes and darkness the sharp rhetoric comes days after the u.n. security council approved tougher sanctions on pyongyang. north korea also called for the break up of the u.n. security council saying it's a tool of evil that moves at the order of the united states. we'll bring you any news as we get it that threatening rhetoric has not really significantly derailed markets the nikkei down 0.3% >> we are keeping a close eye on russia as that nation kicks off a week of war games. some 1200 troops, 250 tanks and ten warships are taking part in the military drills. nato expressed concern over the exercis

bank of were more hawkish. we are adding a percent of gains today. a bank of englandember talking in the last 20 minutes or so for a long time i have been saying the news yesterday was not a surprise, but the extent of the move off the back of those minutes has been pronounced if we do get a hike, it's likely to be a one-off to reverse the loosening cut we got after brexit and to test the waters if we need to go further. so the move of 2.5%, still the vote was 7/2 >> mixed opinion on whether the uk consumer can handle that. we saw very weak wage data on top of that, adding on a rate increase that could put them in a tough situation. let's look at how european equities are responding. appreciation in the uk pound that has put pressure on the ftse 100 it is down 0.7%. similar story to yesterday when that bank of england announcement came out. the italian mib flat, and the spanish ibex down 0.2% let's look at oil. crude oil yesterday topping $50 a barrett, the first time in a month. today reversing some of those gains. today at $49.88. ice brent at 55.43 nat gas lower by

after the bank of england's warning, the pound jumped to more than $1.34, the highest it's been for at could be raising interest rates in the autumn of this year, thatjust makes the pound a more attractive currency for investors to invest in. it raises its value relative to other currencies. the higher pound won't help exporters because foreign customers may have to pay more for their goods, but it should also mean imports are a little cheaper, slowing down price rises in the shops. andy verity, bbc news. executives at the security firm gas say they are "ashamed" by footage showing staff abusing detainees at one of their immigration detention centres. they were giving evidence to mps following an undercover investigation by the bbc‘s panorama programme at a centre near gatwick airport. 0ur social affairs correspondent, alison holt, reports. it took an undercover panorama investigation to expose the realities of life at brook house immigration removal centre, near gatwick airport. run by gas, it's plagued by drugs and self—harm. with some officers reacting to detainees with bullying, a

the bank of england people are saying they cannot do anything ofause of the -- because brexit.ook at other wages and other factors, people are saying it is about time you do a rate hike. the meeting could be one of the most interesting we have had all year and if you get a decent number today it could be off to the races. matt: i have been hearing a lot of talk about how north korea, the situation is affecting markets. i see it but i wonder why. isn't this a binary situation, either nuclear war and we all die or it is not? is being be the excuse wheeled out a bit too often. they did respond to the latest sanctions and they sounded a bit upset about it as they do. although there are reports coming from south korea that they see movement again on the north korean side and it looks as though they could be getting ready for another missile test. there is some concern about that. it might be that people are a little bit tired after a couple of days of ignoring north korea and not sure what to go for. there are a number of moving parts as we can see in the markets. we have central ba

that's the dilemma of the bank of england. e in interest rates expect it today for short and maybe for many months to come. there is a lot of analysis in the papers throughout this week, actually. we have had inflation data this week, employment dato yesterday, a lot of economic news which shows clearly, starkly how difficult things are for the average uk earner. their income is worth less now than it has been for many months. the squeeze as it is called getting more and more acute. it is going to be something, i don't know how the bank of england is going to come up with the solution in the short term at least. unemployment is very low, yet wages are not rising and so now they need to fall even further, which is hard to fall even further, which is hard to see how that really happens. and only then will wages rise. we'll know the pound has collapsed to some extent and you can see it in a supermarket, food prices are rising. if that part of the problem? the colla pse if that part of the problem? the collapse of the pound, the fa

i am not sure which elements of the bank of england. going to improve its wine cellar, the bank ofbe up to england's, which are very high? i think you are talking about the kind of decision-making and forward messages about policy intentions. fed theiculty is in the structure is rather different. in the u k, you cannot have vacancies on the monetary policy committee. there was a vacancy recently because of an unfortunate resignation. have to have your nine because that is the way the balance is -- you have to have your nine because that is the way the balance is played out. for the fed, you are not sure who they are at any given moment. -- i wish the fed has a more why liable way of had way ofd a more reliable making appointments. tom: macroeconomics, the information we can see and less transparent. this is bloomberg. ♪ ♪ is "bloomberg surveillance." francine lacqua in london with tom keene in new york. let's talk about brexit. david davis has warned you can lawmakers blocking the brexit bill could lead to a disruptive departure from th

in the financial times, the bank of england wrestles with a rate dilemma. england is meeting to decide on thursday whether or not to raise interest rates. yes. we've had record low interest rates for many years now. one or two members of the monetary policy committee have perhaps been in favour of raising them slightly. on the whole, that's been considered to bea on the whole, that's been considered to be a dangerous thing to do, particularly after the brexit vote, because it was perceived as something that could slow down the economy. now we have quite a different balancing act for the committee. on the one hand, good news on unemployment figures, but that's not passing through into wages and the way people may feel about their standard of living. this balance has to be struck. it seems to be the case that it's only a minority of members who are in favour of an interest rate rise. in the times, britain races towards top after record job levels revealed. the highest employment rate since 75. yet we have the previous story of the bank of england unsure whethe

let's stick with the bank of england. f minutes. -- one of the most dovish members of the mbc says he wouldn't be against raising a hike. let's get to mark of gadfly. majority people were in favor of the hike. there is a big danger of policy over here. if you look at the wage figures this week there is no way that the british worker is getting any better off. brexit negotiations are fractious. you can see why the bank wants to take back the emergency rate it introduced after brexit, but i think the timing is terrible. the next point the bank could raise rates we will have another bout of wage figures. if they show a decline from this week than i don't see how the bank can raise rates. and there is a credibility issue. itncine: not even by arguing is just the reversal of this rate cut? worse off whenle their economic future has never been less -- it's not so much that they raise interest rates is that they find themselves unable to carry through on the threat they made yesterday. taxedreliable boyfriend up to mark carney is

interest rates are at their lowest level since the bank of england was founded over 300 years ago. y, the governor of the bank sent the strongest signal yet that that might be about to change. what we have said is that if the economy continues on the track that it has been on, and all indications are that it is, in the relatively near term we can expect that interest rates would increase somewhat. the last time rates went up was more than ten years ago, in 2007. many younger borrowers have never experienced one, but if it happens, what impact will it have? the most obvious one will be on the 11 million homeowners who have variable rate or tracker mortgages. those borrowers have an average outstanding mortgage of £116,000. a quarter point rise would mean an increase of £15 in monthly mortgage payments. i'm not very happy about it because of my mortgage. i'm not on a fixed mortgage. it would be great to get more interest on my savings. why, after a decade of downward moves, is now the right time to reverse direction? this is a time when the economy is pretty strong, especially as unem

the ft reports that the bank of england has issued their strongest guidance in a decade that they arearch that staying a healthy weight slashes the risk of high blood pressure by almost half. the daily telegraph say the royal navy can only send a quarter of its warships to see due to spending cuts. the mirror claims1 million nhs workers demand a 3.9% wage rise to end the effects of the pay cap. the ayew covers the first day of hearings into the groenefeld disaster, with survivors accusing the enquiries —— inquiry chairman, sirmartin the enquiries —— inquiry chairman, sir martin moore—bick, of turning his back on them. the times reports on new guidelines that gps must refer almost 2 million people for nhs cooking and exercise classes. the daily mail says that well—off parts of the country are facing the construction of tens of thousands of new homes under a government plan to tackle the housing crisis. so, let's delve into some of those stories in a bit more detail. kate, kick us off with the ft. this is about a little hint that has come today that the flat—lining interest rates that w

the bank of england brings out a new banknote with a famous writer on it. wash — not this month, butjuly 2007, the last time interest rates rose a prime minister had just left office and no—one had heard of the credit crunch. more than a decade later, we're hearing hints rates may at last rise this year. in order to keep inflation, or return inflation to that 2% target, in a sustainabable manner there may need to be some adjustment of interest rates in the coming months. now, we'll take that decision based on the data but, yes, that possibility has definitely increased. after the banking crisis struck the bank of england slashed the official interest rate to 0.5%, the lowest it had got in 300 years, an emergency measure. since then, interest rate setters have met 97 times each time the question — when will rates rise? but each time they've done nothing, until last august, when they decided, in the wake of the brexit vote, to cut interest rates to a 0.25%. now the city thinks they'll go back up to 0.50% by december. a rise in the interest rate would help us

ten years ago tomorrow, the bbc revealed the bank of england had stepped in to bail out northern rockancial meltdown. this week, newsnight is looking back at what happened a decade ago and trying to work out where it leaves us now. we sent our business editor, helen thomas, to ask whether current regulation would protect the economy from similar shocks in future. and sirjohn vickers, who led the government's inquiry in the wake of the crash, told her thinks he thinks we're only halfway there. here's helen's report. should we have seen it coming? debt piling up, loans repackaged into an alphabet soup of investments, sold widely to... well, game investors, who bet that a aaa badge meant a sure thing. then, a tremor in the us housing market. and the slow realisation that one knock in one place could set off a series of calamities around the world. most people, most intelligent, thoughtful people in positions of power in the financial authorities believed that they had things under control. that the world had become a safe place, that, through a number of policy initiatives, the problems

are you confused at where the bank of england is going to go at the moment? to take on the dollar, not the pound. we saw a surge in the pound that as resulted in inflation data. some saying the bank of england -- it is going to have effects, affecting clothing sales. >> i think the bank of england's monetary policy committee will be split and i think that is exactly what you see reflected in the chart. i think that b.n.p. paribas, we're quite clear where we are which is that the bank of england will not raise rates until late next year. there is in our view no real reason to raise rates any sooner than that. they will look through current inflation data. they are not rising. the fact that current inflation is going up is not making people feel inflation will continue to go up. a lot of people understand it is currency related. wage grolte is no accelerating de-- growth is not accelerating despite the rate of unemployment we have in the u.k. i don't know if i'll be working once brexit is done. anna: announcer 2: a concern. >> don't get me started. anna: won't