only now does the bank of england think we can cope with rates returning gradually to normal levels. 's monetary policy committee which sets the direction for rates, had to weigh up the uncertainties of brexiter against fears that price rises might take off in an economy awash with cheap loa ns. off in an economy awash with cheap loans. today employment is at a record high. real wages are picking up record high. real wages are picking up and external price pressures are declining. this lincolnshire road surfacing company agrees, business is beginning to roll along nicely. so much so, wages are higher, the sort of signal which makes the bank of england reach for its interest rate lever. there is a lot of work about that the minute so people are getting significant contracts. they need the men and the manpower to carry out this work, so they offer more money. guys we are employing now are earning twice as much as they were three or four years ago. higher wages may be, but for some, higher costs. if they have variable rate mortgages, many of which will see an automatic increase. a rise i

mark carney, the governor of the bank of england. mark carney, the governor of the bank of england.g your questions on how the interest rates rise could affect you at half past two this afternoon with the personal finance journalist sarah pennells and the consumer expert jasmine bi rtles. send us your questions and we'll try and answer them. the national citizen service, a government—run youth scheme, is not value for money according to councils in england and northern ireland. the project allows 15—to—17 year olds to spend four weeks working in the community. the local government association says only 12% of eligible teenagers have taken part and it has cost £634 million. the government insists the scheme has improved the lives of 400,000 young people. the former conservative minister for civil society, rob wilson says the project has come a long way but more still needs to be done to increase the number of teenagers signing up to the scheme. it has built up over the years from a situation where a few thousand would go in each ear, to now where about 100,000 young people are going

our business editor, simonjack, is at the bank of england for us. hat after many years where wage growth was pretty stagnant, around one and three quarters percent, it has now picked up 22 and percent. they think it will go higher, it's all about your payslip. they think that wage growth is the wellspring of all other types of inflation. if we start getting paid for, for, more money chasing goods and services and overall inflation goes up which is already above target. the other signal they are sending here is we are for the first time in 30 years spending more than we are actually earning, we are supplementing our lifestyles either by savings or by borrowing more. the bank of england would like to see us giving a little bit of a nudge to encourage us to save a bit more and borrow a bit less. that is one of the by—products of this rate rise today. let me ask you a question i am sure is very much on everyone's minds. the start of more rises to come? lots of people will remember before the crisis, interests rates of five plus percent, older viewers wil

a warning from bank of england governor mark carney about the brexit talks. to be ready if britain crashes out of the eu. four men who died in a car crash during a police pursuit in bradford have been named. the car was followed by officers early on thursday morning, when it crashed into a tree. the leader of zimba bwe's into a tree. the leader of zimbabwe's main opposition party says he is ready to go to court to prove vote rigging led to his loss in the presidential

the pound is trading weaker ahead of the bank of england rate decision later. interview with francine lacqua with the government of the bank of or of the bankern of england at 4 p.m. u.k. time. this is bloomberg. ♪ g. ♪ guy: welcome back to the european open. 11 minutes left in the trading day. here are the stocks we are focused on this morning. rolls-royce is up 1.5%. estimates. beat earnings are at the upper end of the forecast after the ceo eliminated thousands of jobs in reorganized the business. jim w is down 1.9 tenths of a percent -- bmw is down 1.90%. still struggling even though it beat estimates. chinese buyers is what is this -- what this is about. china also put higher duties on suvs, the cars that are made in south carolina. barclays is up 3/10 of a percent. 11%.trading revenue was up i spoke to the ceo who said that -- who talked about the company. of the firste quarters where we are clear of legacy issues. there are no more restructuring or cost to achieve or legacy issues hanging over the bank. the bank is running free. point 4 billion pounds af

the actual benefit to the bank of england and markets? in: i think it is to give a form of forward guidance. boethere is the problem the has not had forward guidance work particularly well as we flip-flopped back and forth. so maybe another way of them trying to get a view of where rates and up -- end up. francine: do you agree? elsa: it signals another thing, that the neutral rate has come down. i think having a number gives credence to that. francine: given where inflation is and interest rates, the u.k. is affectively negative. elsa: writes, but we also have political uncertainty. the wage data is not picking up particularly fast. uncertainty, it will be in no hurry. francine: talk to me about the fed. iain: i do not think we learned a great deal. we changed some wording. it looks like they are on case to go in september and december. the data would point in that direction. trade and tariffs are the one thing that could not them off course. but they want to portray that it will be a slow, gradual hike. francine: and what is your call on

he did also talk about stress testing that the bank of england has carried out saying that really they the part of the bank of england which is responsible for financial stability isa responsible for financial stability is a part which is entirely glass half full all of the time. we ran the system a year ago through a stress test which had, and this is not the prediction for what would happen in a no deal scenario, but to give you an idea of what they can withstand, real estate prices going down by more than a third, house prices and commercial real estate. interest rates going up by almost four percentage points, we just raised them 0.25%. unemployment going to 9%, and the economy going into a 4% recession. now, we did that in order to create the kind of hits to their balance sheets and the calls on their capital and liquidity that meant they had to build these buffers to be in a position in case something bad... so you‘ve been sitting there planning for armageddon? uh, we have been planning for very difficult circumstances and the banks are ready. now, it is worth pointing out that

mark carney, the governor of the bank of england. was revealing. 50% said they‘d did not think they would be impacted by brexit, but the other half said they would be waiting for the direction of travel to become clear. that reflects the fact that a lot of businesses feel it is quite difficult to plan and understand what no deal means that this stage. the putting in place of contingency plans can be costly for businesses who are trying to run businesses on a day—to—day basis. not knowing what they have to plan for is difficult. it is feasible for the uk to trade under world trade organisation terms as well? one of the interesting things when you talk about wto terms is there are certain things you can produce, so we know if you are trading on wto terms we know what the tariff is, but that does not say what the potential customers related disruptions will be. also the length of time taken to get goods to pause is something that is not provided for in the wto rules and that is the aspect of planning that is difficult. briefly, prices,

the bank of england interest— rate, average. the bank of england interest—rate, even average. off in the next couple of months, there are some rules that you can tell your credit card provider to close your account, you can't continue using the card, but you can continue to pay off the debt at the current people will get you not percent balance transfer deal. but other people who are worried about their credit card debt and the interest— rate about their credit card debt and the interest—rate rising, they can see the outgoing to close the account and pay back the rate at the debt of the old interest—rate. and pay back the rate at the debt of the old interest-rate. there is usually a charge associated? the charge that you pay is typically between about 2.7% or 3.2%. not percent is the number that is the big one and the 3% charge is much smaller. but for some people who cannot clear a debt quickly it is a better idea as long as you don't then use that power to spend and think that you've got another source of spending money. if you are disciplined, it can really save you money c

and that is the real problem, and that is not really for the bank of england to deal with, the bank of wage side, unfortunately. one word answer. are you addicted to your smartphone? totally addicted to my. we will have more on the bank of england in our business reefing, but now, the governor of california, jerry brown, says climate change is behind a dangerous and accelerating increase in devastating wildfires. 93 large fires are now burning in the united states, along with more than a0 in canada. in california alone, eight people have died and four are still missing. our correspondent james cook sent this report. this is all that remains of keswick, a little mountain community in northern california. it was evacuated in time, but police say one man did not heed the order. he was found dead amid the ashes. the fires and the battle to stop them rage on. so far this year, nearly five million acres have been scorched in the us, one million acres above the recent average. the governor of california says climate change is a major factor. nature is very powerful, and we are not on the side

obviously, he is the governor of the bank of england and has access to the statistics. g block is not economic spot politics, and that is the politics of the northern ireland border, because what the eu is saying is, we need to have a backstop. what happens if the uk doesn't come up with some solution to the northern ireland border which leads to frictionless trade? we are seeing the uk saying, well, actually, if we can't come up with some sort of solution, we want a new car —— a uk asa solution, we want a new car —— a uk as a whole backstop will stop the eu is saying, if you don't come up with some sort of deal, it means only northern ireland stays in the single market for goods. that is why mark carney is saying it is getting uncomfortably carney is saying it is getting u nco mforta bly close carney is saying it is getting uncomfortably close and there might be no deal because we can't agree on this crucial issue. inevitably, you have many of the staunch brexit supporters saying that this is just more of project fear from mark carney. it depends on your perspective. if

and i'm afraid people like the manager of the bank of england has got to accept it. boss of rbs said today the uncertainty of how we leave is affecting the value and prospects of the bank still largely owned by the taxpayer. so we are preparing this bank for a very slow time in 2019. no matter what happens through brexit, we are able to look after our customer base. it does bear down on the share price. so there is a brexit discount on uk—focused stocks? there definitely is. i mean, any uncertainty brings some sort of discount. the bank of england may be sweating over the brexit outcome, but the governor also today offered this reassurance. the financial system will be ready for that undesirable and still unlikely possibility. the financial system will be ready. ready, but hardly winning. —— willing. tonight the french president, emmanuel macron, is entertaining a guest on a mission. not the holiday either would have hoped for. simon jack, bbc news. our europe correspondent adam fleming is in le lavandou, near to where the the two leaders have been meeting. we know ab

and i'm afraid people like the manager of the bank of england have got to accept it. the boss of rbs said today the uncertainty over how we leave is affecting the value and prospects of a bank still largely owned by the taxpayer. so we are preparing this bank for a very slow time in 2019. no matter what happens through brexit, we are able to look after our customer base. it does bear down on the share price. so there is a brexit discount on uk—focused stocks? it definitely is. i mean, any uncertainty brings some sort of discount. the bank of england may be sweating over the brexit outcome, but the governor also today offered this reassurance. the financial system will be ready for that undesirable and still unlikely possibility. the financial system will be ready. ready, but hardly winning. tonight the french president, emmanuel macron, is entertaining a guest on a mission. not the holiday either would have hoped for. simon jack, bbc news. our europe correspondent adam fleming is in le lavandou, near to where the the two leaders are meeting. this is mrs may's latest st

its june statement suggesting the fed remains on course for a rate hike in september. >>> the bank of englandped to raise rates for only the second time since the financial crisis members are expected to vote in favor of hiking the bank rate to 0.7 0.75%, however uncertainty surrounding brexit and global trade could be a problem for governor mark carney jes staley discussed the rising interest rates this morning on cnbc >> rising interest rates are constructive for banks we also need to balance what we do for our consumers in terms of bassi in passing those rates on we think rising interest rates, to the extent they reflect a growing economy are positive for the uk and u.s we have a high net interest margin as a bank it's been coming down slightly mostly because we've been changing the mix of our consumer credit portfolio from unsecured from the credit card to secured through the mortgage business. we like the profitability of the bank in the uk we had double digit returns of 18%. profitable business. and if interest rates do move, that will be constructive for the financial industry >> jes s

but the boss of r35 today bank of england have got to accept it. w we leave is affecting the value and prospect the back of a bank still largely owned by the taxpayer. we are preparing this bank for a very, very slow time in 2019. no matter what happens through brexit, or we are able to look after our customer base, it brings down the share price and stocks. so there is a brexit discount on uk focused stock? 's is. any uncertainty brings a discount. the bank of england might be sweating about the brexit outcome of a governor also offer reassurance. buffer —— the financial system will be ready for that undesirable and still unlikely possibility. the financial system will be ready. ready, but hardly willing. tonight, french president emmanuel macron is entertaining guests on a mission. not the holiday either would have hoped for. adam fleming has been following theresa may's visit. we know absolutely nothing about how this meeting has gone tonight the odd what the two leaders had for their five course dinner. now that doesn't mean it was a trail for a

anna: bank of england is expected to raise its key rate by 25 basis points later today -- officials willer new growth and inflation outlook and may update their thinking on the neutral rate of interest. the decision will be announced midday u.k. time. back to you, simon. let's talk about what is going on in the u.k. with inflation. inflation has been above target, but the direction looks to be downward for inflation, doesn't it? explain all about it. simon: the question is, why would you hike rates right now? if you are is sending, you might argue that any central bank, if there's a possibility of trouble you can raised by 25 , if they fear they may need some ammunition again in the face of brexit uncertainty, now is as good a time as any. anna: some sensible people say to me, you don't hike rates just to cut them. others say you have to hike rates a you have some room to cut if you need to. that's exactly right. if you keep rates low all caps on, where you go if you need to start cutting again? fairness, given the uncertainty we have coming into how the brexit negotiations and the votin

the governor of the bank of england warns the possibility of britain crashing out of the eu without a deal is uncomfortably high. mark carney says that scenario is unlikely but that the uk and eu must do everything possible to avoid it. i think the possibility of a no deal is uncomfortably high at this point, yes. so you're saying quite clearly that a no—deal brexit would be a disaster? it is highly undesirable. supporters of brexit say his comments are part of project fear. we'll have all the reaction from westminster. also this lunchtime: zimba bwe's opposition vows to challenge the result of the presidential election after emmerson mnangagwa is declared the winner. deaths from sepsis in english hospitals rise by more than a third in two years. those who survive say the impact is life changing. within 2a hours from a normal, healthy man, i became disabled, lost my legs, most of the fingers on my right hand. the sister of a midwife missing for a week has made an emotional appealfor information. samantha eastwood was last seen leaving work last friday morning. and spain and portugal o

only now does the bank of england think we can cope with rates returning gradually to normal levels. 's monetary policy committee which sets the direction for rates, had to weigh up the uncertainties of brexit against fears that price rises might take off in an economy awash with cheap loans. that strategy has worked. today employment is at a record high. real wages are picking up and external price pressures are declining. this lincolnshire road surfacing company agrees, business is beginning to roll along nicely. so much so that wages are higher, the sort of signal which makes the bank of england reach for its interest rate lever. there is a lot of work about at the minute so people are getting significant contracts. they need the men and the manpower to carry out this work, so they offer more money. guys we are employing now are earning twice as much as they were three oi’ four years ago. higher wages may be, but for some, higher costs, too. if they have variable rate mortgages, many of which will see an automatic increase now. a rise in interest rates are always worrying. it takes

no, we are coming out of the european union" and i am afraid people like the manager at of the bank of englandrbs today said the uncertainty over how we leave is affecting the value and prospects of a bank still largely owned by the taxpayer. so we are preparing this bank for a very, very slow time in 2019. no matter what happens through brexit, we are able to look after our customer base, it brings down the share price and stocks. so there is a brexit discount on uk focused stocks? there definitely is. any uncertainty brings a discount. the bank of england might be sweating about the brexit outcome, but the governor also offered reassurance. the financial system will be ready for that undesirable and still unlikely possibility. the financial system will be ready. ready, but hardly willing. tonight, french president emmanuel macron is entertaining a guest on a mission. not the holiday either would have hoped for. simon jack, bbc news. there might be a lot going on in the world right now, but most of us haven't got to the stage of building a nuclear bunker to escape from it all. but canadian br

theresa may's visit comes as the governor of the bank of england mark carney, warns the chances of a his comments have been criticised by some of the prime minister's own conservative mps who are in favour of brexit, and say he's scaremongering. here's our business editor simonjack. wish you were here. this is no holiday. government ministers are touring the scorching capitals of europe, hoping to persuade leaders to get behind its proposed deal with the eu. the prime minister even cut short her own holiday to join the french president on his. meanwhile, the governor of the bank of england cranked up the temperature at home with this strongly worded warning. the possibility of a no deal is uncomfortably high at this point. it does mean potential disruption, it does mean disruption to trade as we know it, and as a consequence of that, a disruption to the level of economic activity changes, higher prices, for a period of time. the governor of the bank of england doesn't say anything by mistake, he knows his every utterance is carefully scrutinised, so this was a deliberate intervention

uk where have the political risk of brexit and if we go through with it next year, i think the bank of englandovernor is thinking about it. he is not a risky kind of guy, what is behind this move? why this quarter point rise? i think he is acting consistently with the other central banks around the world. there is always the flexibility that if the uk decouples, and has to have its own policy and package, the bank of england will act accordingly. its own policy and package, the bank of england will act accordinglym will be a blow for homeowners with mortgages. a little bit of good news for savers. they have not had much in the past decade. this story tells us in the past decade. this story tells us about pope francis updating catholic teachings. now catholicism will call the death penalty inadmissible. what has changed and why is it significant? significant because this is a unilateral move from the pope. he has updated the catechism which is our doctor and existing since 1982 of leap teachings. in no circumstances is there a need for the death elke because it says there are other ways. —— dea

, the chairman of the bank of england, the governor of it... as not all negative. he thought we would all ride this out. it was above the short term. 0ne ride this out. it was above the short term. one thing he said is this fanaticism is prepared by the european side has a bit to do, which is interesting as well, and that applies about a lot of other things i suspect in reality. i personally would not criticise him for having said this. the actual device that used on the story is flawed slightly. it is becoming very clinical because brexit is political, advocacy it is very problematic. 0ne political, advocacy it is very problematic. one thing as far as far as we know that currently will not change is march 20 2019. it will, on that that day at 11pm. —— march 29. that clock is firmly taking. the issue is clearly that i think he will be foolish to deny that if there is no deal, there will not be some difficulty and indeed if there is evena some difficulty and indeed if there is even a deal, some sort of affect. you can argue again about the extent

bank of england governor said, ithink don't they? chances of leading through a hard brexit was uncomfortably high and he then was accused of being the high priest of project fear. here is a fear here, that is doom mongering. i think it is the award and a to deploy because we have seenjeremy hunt, the foreign secretary, travelled through europe and talk about a hard brexit and no deal would play into russian hands and would play into russian hands and would have a serious effect on european countries and theresa may have been playing ftse with the french president. this has divided the tory party. both countries are riven. interesting to see at the back of the sunday telegraph, former labour home secretary saying that he thinks that if there were to be another referendum, britain would vote to leave again. but also, strongly criticising people who suggest that there is some element of racism in those who have been supporting brexit. i'm sorry, this is the other thing. some of us know that not all brexiteers were racists, we know that.

maybe a different picture from the bank of england. his tomorrow, but investors are looking at this a lot? looks like the bank of england will raise interest rates above 0.5%, for the first time since the beginning of 2009, which underlines the length and the period where we have been labouring under difficulties in the post—global financial crisis world. there are still some debate as to whether the market is correct, a degree of certainty as there currently is, about a 90% probability. i think it is far less than that. i think there are reasons for the bank to say, actually, even if they hiked rates they will probably argue in the subsequent press conference that they will begin a position to lower rates again of the conditions warrant it. conditions were warranted in relation the brexit related certainty is that continue to impact consumers and businesses alike. we are enjoying a summer recess from the political toing and froing in the uk. in the meantime, the prime minister is going to meet with emmanuel macron on friday and is tryi

it's interesting because normally, if the bank of england was raising rates to strengthen the economyterling to be appreciating against world currencies. what the bank of england is doing is giving itself a flexibility that were we to have a hard brexit, they now have the ability to cut probably twice and they would probably do a 0.5% cut on the day if needed. picking up on results out from samples, the estate agent in the uk, they have reported an 18% fall in the first half pre—tax profit, they are saying it is down to investing more in the business. it is the third largest real estate broker in the world but the commentary in there is retesti ng, the commentary in there is retesting, link to what we're talking about. they are saying that the uncertainty in the london office market, the most lucrative part of their business, it is causing a bit ofa their business, it is causing a bit of a slowdown but also, actually you can see from the numbers, 70% of the buyers in the london office overseas investors which is what weaker sterling is doing, allowing people to snap up prime london as

today at five — the governor of the bank of england issues a warning about the possibility of a no—dealxit. mark carney tells the bbc: the risk of the uk leaving the eu without a deal is now "uncomfortably high". i think the possibility of a no deal is uncomfortably high at this point, yes. you say quite clearly a no deal brexit would be a disaster? it is highly undesirable. his warning comes as theresa may interrupts her summer holiday to meet the french president to discuss her brexit plans. the other main stories on bbc news at five: 18—year—old safaa boular is jailed for life, with a minimum term of 13 years — she's the youngest woman convicted of plotting a terrorist attack on british soil. the leader of zimbabwe's main opposition party says he's ready to go to court to prove vote—rigging led to his loss in the presidential election. the sister of a midwife missing for a week makes an emotional appeal for information — samantha eastwood was last seen at the end of a hospital night shift last friday morning. spain and portugal swelter in a heatwave — locals and holiday—makers are ur

the bank of england's monetary policy committee voted unanimously for the rise, from 0.5 to 0.75%. crease had been expected, despite concerns over household debt and a slowing of the property market. it means more than 3.5 million mortgages subject to variable or tracker rates will become more expensive. but it's good news for some savers. here's our business editor simonjack. the road to rising interest rates has been a very slow one, like the tarmac on this road near lincoln, rates have been flattened for nearly ten years. that changed today for one main reason, wages are on the move. after years in the doldrums they are rising at 2.7% per year, faster than prices going up in the shops, as employers struggle to recruit and retain staff. that prompted the bank to raise rates by just a quarter to 0.75%. although the economy does not look like it is moving very fast, according to the governor upward pressure on prices is growing. the overall level of pay is now finally outstripping the rate of growth and inflation. pay packets are growing faster than prices online and in the shops. w

certainly the bank of england, u.k. are committed to having an open system with the united states, and ideally -- and this is an important part of the brexit negotiations -- continuing with europe appropriate to the new relationship. david: that was bank of england governor mark carney speaking with our very own francine lacqua in london a short time ago. i was actually on the air this morning at 7:00, and it was a mild surprise because there was no indication that there was any hesitancy, so the pound shot up. then as he had his news conference a while later, he sort of tempered it back down. shery: and take a look, still falling 7/10 of 1%. investors really not buying the hawkish rhetoric from the boe that there's a brighter outlook. of course, there's brexit talks coming, so that will be big for the boe. we are seeing a bit of a mixed picture. tech stocks are rising. the s&p 500 also gaining. the dow falling 1/10 of 1%. exporters are down. apple hit the $1 trillion mark in market cap earlier this morning. live from ne

we will be hearing from the bank of england governor mark carney on the brexit risks, ray tight, and ch more. vonnie: with a good quarter behind it, is barclays now running free? jes staley will announce his bank's earnings beat coming up on bloomberg. ♪ wakefield isan and trading out at $18,02. , theidpoint -- $18.02 midpoint of the price range. it is the largest ipo by a u.s. company since towards the end of may, this is cushman and wakefield, the commercial real estate company. caroline: a little bit of a pop-up that pricing range, thank you. it was a good culture for barclays, growing faster than average from u.s. banks. the ceo spoke with uber. jes: one of the best quarters we have had in many years to on equity2.3% return is a great result. ofr 1.4 billion pounds after-tax earnings but it was across the board. barclays u.k. is nested quite well. our international car business did quite well. the investment banking side and the markets business. >> you know there is always a lot of attention on the fixed income side of things. toent to ask about -- i want ask about thick revenue

that whatl, i think the market is underpricing is the possibility that the bank of england could go withe next hike as soon as february of next year. i think what would give the bank , moreland more ability intent to move rates of quickly would be as long as they didn't risk.y clear brexit i think that's something that movingeave the curve toward a flattening. that is the big thing that we like care. really surprised at how little is priced into the sterling rates curve, the money market strength in u.k. rates because the bank of england has made their reaction really quite clear. , you so if you see a deal think the bank of england could move as early as february. deal, what kind of demand is that the 24 gilt? one person's haven may not be another persons haven. i got it chart that shows low volatility at the moment versus pre-brexit highs. what about the gilt market? peter: i think you've touched on the dynamics that are really important. if you think the front end of the curve is the most clear expression of demand for sterling and the currency, while the long end of the currency is w

anna: that was the bank of england governor speaking with bloomberg. t's continue the conversation about the u.k.. theresa may is meeting emmanuel macron today. the unusual meeting is said to be part of a diplomatic drive to win european leaders over to may's brexit vision. british leader has 11 weeks until the accord is meant to be signed. a few lines just crossing the bloomberg. i u.k. cabinet minister sees no alternative to brexit deal. the uk'secretary says future is still take -- is to stay economically close to the eu. let's do brexit and also bank of england. was there evidence enough for you for the interest rate rise? >> the interest rate rise was fully discounted in the markets. that's why you saw very little reaction in the gilt market and why you did not see a bounce in sterling. -- 1.2g testing 1:30 eight against u.s. dollar. they reaction was totally logical. what's the rationale for the bank of england? certain indicators, if we look at the manufacturing pmi, the service sector pmi, they have recovered. secondly, we are seeing some upward

the bank of england set to raise rates in moments. investors expecting a cautious hike. defends the yield curve. and barclays is back. the u.k. bank said trading revenue grew 11% last quarter. in china ready to retaliate. persistent trade battles. global bond yields and a stronger dollar equals triple whammy for emerging markets. we have the central bank decision from the boe out. they increased rates by 25 basis points. they deliver that 25 basis point increase hike that we had been expecting. it was unanimous and they agreed that more rate hikes will be needed. very interesting statement considering the fact that they wind up having growth overall g10 markets and there's a brexit debate. they expected two dissents. this was more bullish than people had expected. they are now starting to forecast what's coming up. they see the key rate at 1.1% in three years. projecting what they think it's going to be in three years at 1.1%. they also say the slack in the economy is very limited. the labor market is tightening. rising 1.75% to and they say the long-term neutral , bloomb

the governor of the bank of england mark carney has warned of the possibility of britain leaving theopean union without a deal, saying the uk and eu must do everything possible to avoid it. i think the possibility of a no deal is uncomfortably high at this point, yes. so you're saying quite clearly that a no—deal brexit would be a disaster? it is highly undesirable. that's all from the bbc news at one, so it's goodbye from me, and, on bbc one, we nowjoin the bbc‘s news teams where you are. good afternoon i'm here with the latest from bbc sport centre. england have a lot to do if they wa nt to england have a lot to do if they want to keep their hopes alive of winning against india. there was a devastating spell of bowling. there are 86—6. that is the lead of 99. patrick is live at edgbaston for us now. it appears that england are crumbling. indeed, if i tell you just now, they celebrated the greatest england test 11. 1000 test match. some are in the 11. and england could really do with all of them in their prime because they are banged up against it. ifeel like i am repeating myself,

let's focus on the ukip bank of england. the central bank you -- the u.k. and the bank of england. nk unanimously voted to raise rates for only the second time in a decade. i spoke with governor mark carney. carney: i think the important thing is that this is the right decision for the economy even the track that it's on. obviously there's a wide range of brexit outcomes that are possible, and we all hope that by the end of the year we will all be much better informed on which path the u.k. and the eu are taking. a variety of his potential outcomes, they would be consistent with rates at their current level, if not higher. certainly there could be circumstances where it would make sense to adjust policy. but i think we will all know what those circumstances are and at that point will take them into account and make a decision. it doesn't automatically follow. certainly a set of circumstances like what happened post-referendum where the balance of what happened to the future supply of the economy demand, which was more of a business hit than a consumer sense tothe rate made support t

the bank of england's monetary policy committee voted unanimously for the rise, from 0.5 to 0.75%. crease had been expected, despite concerns over household debt, and a slowing of the property market. it means more than three and a half million mortgages subject to variable or tracker rates, will become more expensive. but it's good news for some savers. here's our business editor simonjack. the road to rising interest rates has been a very slow one, like the tarmac on this road near lincoln, rates have been flattened for nearly ten years. that changed today for one main reason, wages are on the move. after years in the doldrums they are rising at 2.7% per year, faster than prices going up in the shops, as employers struggle to recruit and retain staff. that prompted the bank to raise rates byjust a quarter to 0.75%. although the economy does not look like it is moving very fast, according to the governor upward pressure on prices is growing. the overall level of pay is now finally outstripping the rate of growth and inflation. pay packets are growing faster than prices online and i

the bank of england got what they were looking for, that bounce back in growth. .4% in this quarter. in line with the bank of england's estimate of the economies speed. they do not think the economy can grow much more than that without smoking in place. the economy is operating pretty close to full capacity. they're been a few signs of weakness in the underlying data, but i think broadly speaking they will be happy. mark: one was the june figure, which was weaker since march. that highlights services is coming off. is that one of the weaknesses you are worried about? dan: a little bit. with that figure, the april and may figures were bolstered by hot weather, the world cup run, and teams when out and spent. those figures are a little bigger than you might expect, so the point, one, as a little marvin normalization rather than a slowing. i am not really concerned. .1-isuld probably expect or .2 a month. mark: the first quarter, the weak performance was blamed on the cold weather. some are putting down this strong performance on a relative basis to good weather. is that transient? dan:

the headlines on bbc news: the bank of england raises interest rates, for only the second time since mbabwe, as the nation awaits the announcement of their new president, following the disputed election. a review finds chances were missed to save 18 month old elsie skully—hicks, who was murdered by her adoptive father in 2016. a report has found that there were missed opportunities to protect an 18 month old baby girl, who was murdered by her adoptive father. cardiff and vale's safeguarding children board has apologised, following the death of elsie scully—hicks, who died in may 2016. she was subjected to a series of injuries by matthew scully—hicks, who's been jailed for life. sian lloyd reports. elsie was 18 months old when she was murdered by her adoptive father. matthew scully—hicks was sentenced to 18 years in prison. his violent attacks had left her with a fractured skull, broken ribs and a fractured leg. today a report was published into whether lessons could be learned from her death. there were missed opportunities to raise safeguarding concerns. for this, all agencies involv

meanwhile, bank of england governor mark carney issues a stark warning. point. the leader of zimbabwe's main opposition party says he's "ready to go to court" to prove vote rigging led to his loss in the presidential elections to emmerson mnangagwa. but the re—elected president insists the process is "free and fair". the four men who died in a car crash during a police pursuit in bradford have been named. the car was followed by officers early thursday morning when it crashed into a tree. labour's leaderjeremy corbyn has restated his commitment to root out anti—semitism in the party. writing in the guardian, he says rebuilding trust with thejewish community was his priority. the sister of a woman who has been missing for more than a week has made an emotional appeal for help to find her. gemma eastwood broke down in tears as she described her older sister, samantha, as her best friend. the 28—year—old midwife was last seen at the end of her shift at the royal stoke hospital last friday morning. a 32—year—old man arrested in connection with her disappearan

a lot of central-bank action out of the bank of england. terms of what is happening, the central bank is trying to figure out the drivers that are trying to come out from wall street as well. this was surprising. maybe we will get another rate move out of mark carney. you spoke about the pain trade. if you look in -- listen to wilbur ross, he said putting beijing in that position of pain hopefully from his point of view, the trump administration's , they will get them closer to economic reforms. that is a long-term game. they the question is if could relate debt there. let's get you caught up with what has happened in the u.s. close. truean see if it was a tech trade. the s&p 500, the tech sector, helping to push that up. that was the biggest gain in the sector. the dow getting the most pain out of the trade issue of being flat. looking at the board, taking a look at the bonds, the u.s. 10 year fluctuating. we have been talking about how that could end up 3.1%, the last threshold we saw earlier this year. this was the highest in the past fe

the bank of england presenting a united front today. policymakers voted unanimously to raise rates and mark carney could point brexit to the other direction. could point to the other direction. it has been interpreted as a dovish hike. >> i think that is correct and there is a fundamental change in policy. i think fiscal policy will also shift. we saw a major statement from the chancellor, but in terms of the bank, they are preparing the ground for another way tries. i would not worn out november as being in play. they are more confident the economy will be growing in terms, and it shows wages accelerating in manufacturing and services. they are starting the slow process of normalizing rates. moreover, the are focusing on the balance sheet. what is the optional size of the balance sheet in the new normal and how do they saw of the process? -- how do they solve the process?it is a fundamental change from a few months ago. caroline: it feels as though you are against the market because the market seems to be diving back expectations of a

theresa may holds talks with emmanuel macron, as the bank of england governor mark carney issues a starkt brexit, saying the possibility of a uk no—deal is "uncomfortably high." zimba bwe's newly re—elected president emmerson mnangagwa calls for peace, as riot police try to break up an opposition news conference. it comes after the leader of the opposition party claims to have video evidence proving election results were fraudulent. jeremy corbyn says anti—semitism is a "real problem" within the labour party, but one it is working to overcome. in an article tonight for the guardian, he says he does not accept claims that a labour government would represent a threat to jewish life. the sister of a young midwife who's been missing for nearly a week has made a hearfelt plea for her safe return, as staffordshire police treat her case as a "high—risk missing person" inquiry. she is my best friend and partner in crime. without her, half of me is gone. forecasters say the all—time temperature record could be broken in europe in the coming days. the current european record is 48 degrees celcius,

the bank of england is expected to raise interest rates today. what will that mean? 2) before the financial crash in 2008, rates — that determine how much we pay for credit cards, mortgages and loans, and what we earn on any savings — were around 5%. but the credit crunch meant more people couldn't pay back their mortgages, house prices fell and a lot of banks came close to collapse. so the bank of england slashed rates to keep the economy afloat and those low rates have been in place ever since. but last november, we got the first rise in a decade. the mpc, which sets rates, said the economy was in a better shape with record—low unemployment and rising inflation. so why should rates go up again today? well, the economy is in better shape, and when interest rates go up we save more and spend less, so that keeps prices, or inflation, in check. and that's important to stop the economy overheating. the majority of economists and financial experts agree with that and that today is the day to raise rates. the economy has recovered from the wea k the economy has recovered f

a warning from the bank of england governor about the brexit talks. ark carney tells the bbc the financial system has to be ready if britain crashes out of the eu. the possibility of a no deal is uncomfortably high at this point. brexiteers say the comments are "project fear" all over again, as theresa may travels to france to sell her brexit plans. also on the programme. the sister of a young midwife who's been missing for a week, makes a heartfelt plea. she's my best friend and partner in crime. without her, half of me is gone. zimbabwe's new president emmerson mnangagwa calls for unity. the opposition maintains, his election was rigged.

the bank of england issued a warning. >> he said the possibility of britain leaving the european union without a deal was high. it was likely unlikely. x of the strtress tested for a collapse of the property market. the british financial system would be well p prepare the bank of england raised interest rates on thursday. that has not been able to stop the pound's this -- decline. it is at an 11 day low. anchor: how will the rest of the markets doing? >> in europe, shares of trading are in the green. it's up by .75%. the bonds are being sold off as the antiestablishment government will discuss the next budget. in asia, chinese stocks fell onin as trade tension rained investor summit. the shanghai composite is heading toward a 17% decline. china has been overtaken by japan as the second-biggest stock market. turning to corporate news, shares of the british airways though from disappointing quarterly results. was 835 million year but 6% from last below analyst forecasts. strikes by air traffic controllers are partly to blame. toyota has reported a rise in its quarter we profits. the reco

if you look at how the economy is going in the uk, the one thing the bank of england and the governmentuld be wages. if wage growth continues to outstrip inflation, which it is doing for the first time in a long time, it makes life easier for the bank of england to raise interest rates and put debt payments higher, and if that happens the country earns more money but that also means wages have to be higher. in the city, is there a huge amount of eu workers working there, is it very reliant, the financial market? i wouldn't say reliant, but in the city of london there's a huge amount of eu workers in... you have to remember, lots of these big banks and big companies in the uk we think oui’ and big companies in the uk we think our big uk companies aren't really from the uk, lots are headquartered in different european cities. there's lots of change, people moving from different countries to work in the uk. let's talk about elon musk, the financial times story, he's now trying to justify his original tweet. talk us through what's happened. last week elon musk a tweeted he wa nts to ta ke l

bank of rates. that the rise in. —— the rise in. up to 0.75%, the bank of englandstay, they have gone up but they are staying the same. they have gone up but they are still low, which is what they're suggesting, not .5% to 0.75%, which sounds like a big rise but historically not once fibres and is still a very low interest rate. —— not .5%. as a nation we have become used to low interest rates because we've had them for the best part of a decade —— 0.5%. people don't remember the days when interest rates, rates were 5%, 6%, 796, interest rates, rates were 5%, 6%, 7%, even higher. interest rates, rates were 5%, 6%, 796, even higher. briefly they were 15%? 796, even higher. briefly they were 1596? yes, when there was a bigger financial crisis, but that's a long time ago now. the interest rate rise will impact people with mortgages and that impact will hit them very soon, it could be up to £200 a year just on this one, and there's a suggestion there could be more interest rate rises to come but the question is whether or not savers, who ought to benefit, because their