when hejoined the bank of england, hejoined and when hejoined the bank of england, he joined and signedined the bank of england, hejoined and signed up saying he would do his term at the head without knowing what was in store. when he took on the term, he said he would only do it for five years and then he said he would stay on for a six year. he gives you a long—term sense of where he is going but he will say this week whether or not he remained at the bank of england and some people have told the financial times that he has something to work on it britain leaves the european union, he can get his teeth into something interesting. but if we crash out, he may want to go. something interesting. but if we crash out, he may want to goli something interesting. but if we crash out, he may want to go. i met mark carney a couple of times and some describe him as the george clooney and he has four daughters and they are quite young and he is thinking about them and their future and something i talked to him about because i am the fourth of four girls andi because i am the fourth of four girls a

mark carney agrees to stay on as governor of the bank of england until 2020 to help ensure a smoothers news. as you were hearing — mark carney extends his term as governor of the bank of england. he'd been due to step down injune next year — but the chancellor says mr carney agreed to stay on. philip hammond said next summer could be quite turbulent for the economyjust after brexit — and having mr carney still in post will help support a smooth exit from the eu. the bbc has discovered that the energy giant npower is "urgently investigating" how the personal details of around 5,000 customers were shared in a postal mailing. the letters included other customers' names, addresses, and payment amounts. no bank details were released and the information commissioner's office was notified. the company has apologised to all affected. wages grew faster than expected in the three months tojuly, as they continued to rise more quickly than average prices. earnings have now risen faster than inflation for several months. the boss of the bank of england is staying put then — until the end of januar

but to put this in a bit of context, it is the bank of england's job to come up is the bank of england'sme up with these forecasts all the time. and they call them fans, don't they, they are a range of forecasts. yes, and the media have focused on the most extreme want to get a bit of attention. after 12 years in the city. if you look at the financial crisis, you could put on one hand the number of well educated, these economists, that they could have predicted it. the only thing that i learnt in the city is that projections— which is what i was paid to do — is nonsense and should not be taken too seriously. paid to do — is nonsense and should not be taken too seriouslylj paid to do — is nonsense and should not be taken too seriously. i won't mention the other story here —— allon mitchell lacco economics degree then. and we were talking about the stores. —— i won't mention my economics degree then. there is a bit of a twitter storm here, a storm of the different nature, that has engulfed donald trump, because of denying the number of hilda died in puerto rico. even the donald trump and h

bank of england policymakers believe interest rates unchanged. let's get the story from ralf. bank of england. what do we watch for? ralf: we never were convinced there was ground-cycling. have indicated growth has lost further momentum. the outlook in the forward-looking indicators looks the weakest it has been since 2016. we have had the first positive signs on wages in quite a while. this is about getting a sense of where the bank of england is in terms of that difficult trade-off. is ousted,eresa may what does that do to guilford? ralf: no idea. >> [laughter] ralf: the brexit theme is difficult from a rates market perspective. you have the u.k. relying on the kindness of strangers, because there is a current account deficit. it does need foreign investors to buy the gilt markets. -- guild markets. the bank of england does have some room to cut rates. fantastically honest assessment. ralf, thank you. he will be joining us on bloomberg radio shortly. next, we will talk about iphones. this is bloomberg. ♪ matt: welcome back to bloomberg markets. asian stocks snapping their lo

the bank of england chief also has reportedly warned that the central bank could not stem a crisis byng interest rates and that unemployment and inflation would rise the bank of england refused to comment on carney's reported discussions with that cabinet yesterday. we are gored by george barkley thanks for being with us we spotted mr. carney sneaking into the back of downing street yesterday. the bank of england would not confirm or deny if he was there, 10 downing street eventually did. it's not clear that those warnings that he gave whether they are misconstrued or misunderstood by members of the cabinet. in your view how worried should the british cabinet be about the possibility of a no deal >> i suspect he was talking about just not a no dell thal t wasn't planned, i imagine he was talking about a no deal planned and not planned so if you have something that's a surprise, you come to the 29th of march, all of a sudden we're out, we were not intending to be out and we have no deal that's a much bigger problem than going into this saying we want no deal you can transition for that

"treasury in talks to retain mark carney beyond 2019", "carney expected to leave bank of england and carney?" governor, you will have seen the headlines and appreciate that the uncertainty is both of great interest, but does cause uncertainty. i would like you to let us know what your intentions are as to remaining in yourjob. 0k. if nothing else, that shows the limits of social media, but let me say i fully recognise that during this critical period, it's important that everyone does everything they can to help with the transition to exiting the european union. and that's everyone from business people to parliamentarians, to public servants, including central bankers. and according to — even though i have already agreed to extend my time to support a smooth brexit, i am willing to do whatever else i can in order to provide a smooth brexit and an effective transition at the bank of england, and i would emphasise the second point as well to make sure that transition process is done in an effective and orderly manner. the bank of england governor, mark carney. the windrush scandal has d

‘s term. 0ur economics editor kamal ahmed is at the bank of england. he factors they are considering here, for his possible staying on? absolutely. this is not so much a problem of when mark carney leaves, but a problem of who replaces him here at the bank of england when he does. the problem with his departure date is this. it means that the government would have to advertise the new role now. of course, as we have been hearing from laura, now is surrounded with a huge amount of brexit uncertainty. and the powers of the governor of the bank of england are really affected by the type of relationship britain has with the european union. if it is a deeper relationship, very much intertwined with the european union, that means certain things for the bank. if it is a distant relationship, very separate from the european union, the bank would have different types of powers. it is very ha rd different types of powers. it is very hard in that situation, according to my whitehall sources, to encourage the right type of candidate, with international experience t

loans the central bank may have to make to them to do with the run on their deposits or in the case of 2008, a wholesale bank run on the financial system. nejra: that was former bank of englandmervyn king. after a flurry of excitement that brought interest rates to the highest since 2009, the bank of england is act in holding pattern. all 60 economist surveyed predicted they would leave the benchmark unchanged today. fe european economist at hsbc abio berboni is still here. could we get a unanimous vote to work today? is unusual to have a degree of unanimity for a rate hike. a couple of times it did happen before the financial crisis. in our view ultimately that reflects the huge degree of uncertainty that there is at the moment on where the u.k. economy is going with brexit and with many unforeseeable events in the future. themately as we do expect unanimity to kidney -- continue. the committee was clear about the degree of forward guidance and that the market was a little bit too dovish and we do not expected to change but maybe there could be one or two surprises within the council. nejra: what kind? are looking for defections, that is where we would be looking. r centro

we'll bring you all the interest rates announcements from the ecb, the bank of england and the central of turkey >>> also coming up, apple ceo tim cook says the latest edition of the iphone is available to more people than before, but the devices are bigger and pricier than before. >>> welcome to "street signs." i'm joumanna bercetche these are your headlines moody's warn about a no-deal brexit. >>> european equities follow asian equities higher after the white house reaches out to beijing to have another round of trade talks. >> the treasury department is in communication with china i don't want to get into details. i'm just saying we're in communication now. you could say that communication picked up a notch. >>> natxis jumps to the top of the stoxx 600 after announcing a plan to sell several specialized businesses. >>> authorities in the carolinas warn of gas shortages and power outages as hurricane florence prepares to make landfall tomorrow >>> asian markets were trading in the green on optimism that chinese officials may be meeting with the trump administration to find some solut

>> no the bank of england would probably agree with you. the uk was not a fan of the bonus cap.hat came from europe, it was just all about capping the amount >> francois hollande pushing hi weight around at the time? >> a lot of people were behind it the bank of england was not keen on it. it's restrictive only 30 firms in the uk are subject to it. that is something that people have wondered whether that will stay after brexit or not it's possible they could remove it what they believe makes a difference, the long deferral period and the clawback. >> so it's less about capping the bonuses and more about deferring payments over the years to incentivize those people in the managerial jobs where they are but those managers in important jobs, knowing they will get their compensation spread out over the next 5, 0 years will not be incentivized to take one risk but maybe not take any risk. perhaps it's gone too far. >> there's a worry that it could stifle innovation. there are fintech experts, you want them to innovate and take risk, otherwise you can't meet with the times but at the

i wonder how you felt when you heard the governor of the bank of england say that house prices might can get a good deal, but actually we're still not at the end of the negotiations, so we need to prepare for all eventualities, and so a no—deal is one of those eventualities. how did you feel? there's the governor of the bank of england, a man you've just agreed to reappoint, and he's saying to the cabinet of the united kingdom, not because of a war, not because of a natural disaster, because of a political choice, house prices might slump by a third, thousands ofjobs might be lost, you might be stockpiling medicines and food. it's right to prepare for no—deal. so the british people have the confidence of knowing that if we're in that position, we have done everything we need to do. forgive me, prime minister, this is not some think tanker, this is not some newspaper commentator, this is the governor of the bank of england, and he's telling the cabinet that you're dancing with disaster. all the forecasts that are out there, they're not predictions, they're actually saying... what's imp

vonnie: paul tucker, former deputy governor at the bank of england. e a full slate of interviews coming up for the 10th anniversary of the financial crisis including the former ceos of deutsche bank and barclays as well as former u.s. treasury secretary larry summers. that's all this week on bloomberg. let's check in on the first word news. here's courtney donohoe. >> the pound is surging after the european union's chief brexit negotiator said a deal with of the u.k. is realistic within eight weeks. michel barnier says there are several issues to be dealt with. negotiations continue this week in brussels. president trump resumed his campaign against journalist rob woodward's new book. the president called the book a joke that uses is proven unnamed sources. he says he will write the real book about his administration. woodward's book describes a chaotic white house in which some former staffers actively deceived the president and undermine his orders. alleged russian agent maria butina have blasted the u.s. in a late-night courts filing. they said pros

the bank of england governor slipped out of the back after taking part too.ree years. he and other governments know that no deal would be much more than holiday hassles. the french foreign minister said planes could be grounded, trains not able to go. if we do nothing and if we reach no agreement, this is what would happen. and even without a deal, we would still have to pay. not a penny more than our strict legal obligations, but what that would not be would be a set out in the withdrawal agreement which didn't then get signed. as the government has been clear with the public about the kind of figured they expect to pay if there isa figured they expect to pay if there is a deal, around a0 billion, can you do the same thing and tell the public roughly what we might expect if there is not a deal? i am not going to put a figure on it. but for our viewers, why can't you tell them how much we would pay if there is a deal when we didn't know if there is a deal, when you can't say how much it would be if there isn't a deal? even in relation... well, we would pay ou

at the time, there was quite a lot of headroom for the federal reserve and bank of england and ecb tost rates down and engage in a large amount of qe. interest rates, although they have started to go up, nonetheless, there is not much weaponry left in their arsenal. i think those two concerns are linked. morning. i want to talk about lehman and then we will have to migrate to turkey and the movement in lira. i really want to keep up-to-date on this worldwide. mr. erdogan is speaking and we have a real explosion in turkish lira. could. lehman, if we you took a commanding heights position as head of the fsa before the crisis. more than anyone else i know, you are the one that was supposed to maybe see it coming. by no means for you wronged in your insight at the time, but to me, it was the amplitude that surprised howard davies. the amplitude that surprised others. what did we get wrong at the time about scope and scale? beard: i don't want this to an exercise in self-justification, but just to be clear i did leave the regulator in 2003. if you look at the explosion of leverage, it took

candidates, particularly international candidates, to apply for that job when the role of the bank of england and the european union is still so uncertain. and the power of the bank of england is very much wrapped up in what type of relationship britain has with the european union, a deep and close relationship where the rules would be shared and there would be oversight from the eu over the bank of england, or a more distant relationship which might have economic effects for the british economy. until you can make it clear to candidates what kind of relationship that would be, it could be difficult to hire. to be clear, no deal has yet been done. but i am told that mark carney is amenable to this approach. the extension would be relatively short and it would probably be welcomed by the financial markets because frankly, at the moment, continuity of a change in this era of uncertainty is what the financial markets are looking for. kamal ahmed, thank you. our top story this lunchtime... former foreign secretary boris johnson launches a savage attack on the prime minister‘s brexit strategy, say

the bank of england governor faces questions from u.k. ers -- will he talk about his intentions next year? could he extend his tenure? anna: that could be a focus of questions. he is supposed to be talking about inflation reform. back in thegress is united states. nominee, brettrt kavanaugh, testifying on capitol hill. manus: and the argentine he and treasury minister -- argentina's treasury minister will review what they need to do to save the pay stub. let's go to annmarie hordern for the market check. annam a mixed day in asiaarie:. -- annamarie: a mixed day in asia. concerns about the u.s. and china, the story. currency, an interesting story. the rupiah, down again today. losses hitting the lowest level since 1998. the central bank has been trying to introduce some measures, to shield losses. bonds are almost up 40%. the australian dollar is up 2/10 of a percent. it fell earlier. central bank is saying the economy grew more than it expected. inflation picking up next year. i want to look at the argentina paystub after macri spoke yeste

the former governor of the bank of england, lord king, has condemned the uk's preparations for brexiturther 5a royal bank of scotland branches in england and wales with the loss of 258jobs. the branches will be shut injanuary 2019 and are in addition to 162 branch closures already announced this year. the bank said the closures are a result of the collapse of plans to float off a new "challenger bank" under the name williams & glyn. britain's large services sector — everything from restaurants to banking — surprised economists by picking up more strongly than expected last month. the sector, which makes up about 80% of the economy, saw many companies working at capacity with full order books. but firms said brexit worries were slowing investment for the year ahead. lord king has criticised brexit preparations, with a warning over the way negotations have been handled. the former governor of the bank of england, who supports brexit, said it "beggared belief" that the world's sixth—biggest economy should be talking of stockpiling food and medicines, warning that it left the government w

of deutsche bank from 2008. also the governor of the bank of england at the time. so be bringing you many interviews over the next few weeks. take a look at some of the highlights. >> you really thought that at the last minute, the u.s. government was something. i was traveling from zurich to frankfurt with the u.s. head telling me it was over. we haven't expected that. through 2008, it was clear that confidence in the banking system was waning. only a serious recapitalization of the banking system both in the u.k. and u.s. would resolve the problem. >> when i realized how much debt was of the non-bank financial stimulus, amount of that is what started to worry me. played out, he realized that things were much more interconnected than you thought they were. marketsm to be small can have much bigger fx than you thought. >> and remember telling a good friend of mine, 100 million quit today. -- quid today. >> as human beings, you always think that today is different. >> as you look at the banking system, there is more capital there today. followed --ut what vulnerabili

. >> bank of england governor says and no deal brexit would be painful. of england is prepared for it. i'm know deal scenario could lead to higher inflation a weaker pound and lower economic output. during the speech he said the boe is ready for all possible exits. in our guest. weree any closer than we at the beginning of the process? >> it has been a big week. the politicians have come back to parliament after a long summer break and he has had a big boost of confidence. he has decided to stay on for another seven months. that means that there has always been this tension between brexiteers and remainders about whether mark carney is doing a good job and some of the progress. the fact that he is been asked means that he will try to steward the country through the economic tension and turmoil of brexit for a little bit longer. give to theether to plan that the bank of england has? he also painted some dire pictures of what things could look like in a worst-case scenario. >> after tuesday when they announced he would stay on for longer, thursday was a day

he will stay beyond march 2019 and keep going in thatjob at the bank of england. sed about that news? i think it is a particularly positive thing. when you think about what mark carney has done post—brexit, mark carney has been the only stable part of the uk, which has managed to stay independent from any voting the government has done but really act ina way government has done but really act in a way to, number one, calm the markets. straight after the referendum we had such massive moves in the market. he has calmed the market with rate moves, he has moved rates at the right times. the governor of the bank of england is a job where you get a lot thrust at you, blame around the economy if the market is not going well, that all goes on the market policy, but mark carney has done a good job. and the reason for this has to be that the safe pair of hands will then take us through what is going to be one of the most challenging times for this country. i know the chancellor of the exchequer, philip hammond, is very relieved to see he is staying on, but when you say he h

nejra: that was former bank of england governor mervyn king speaking with guy johnson.'s get the bloomberg business flash. for that we go to juliette saly in singapore. hey, juliette. juliette: goldman sachs group investment banker is completing a takeover of their own firm. three of the most important roles will now be held by overhaulingho are the company that has been on wall street powerhouse for years. among them, john walter will be the firm's next president and chief operating officer. the second most powerful position in the bank. and his wife have launched a $2 billion fund to help homeless families and create a network of nonprofit preschools in low income communities. says the fund will use the same principles that hundred and amazon. in an exclusive interview for bloomberg's david rubenstein, he warned it is dangerous for politicians to attack the media. >> i will say this. it is a mistake for any elected official, in my opinion --i do not think this is a very out there opinion -- to attack media and journalists. [applause] >> i believe it is an essential co

had his contract renewed as the governor of the bank of england haven't heard him say that the ensuing austerity welfare health education law enforcement cuts run justified to pay off those banks what do you think about because one of the things that was most of offensive about this entire episode is that you saw when this happened banks who were critical actors helped cause a crisis like goldman when we looked up to see you were managing the crisis response we saw but it was all people like hank paulson mary. now you know mark carney who were veterans from those banks. so we actually have career civil servants manning the regulatory positions we're never going to have a situation where there is going to be too cozy relationship between the financial services sector and the regulatory. thank you well now to go through some of the week's papers is the u.k. prime minister trades amaze old home of his colleague norman baker who's david cameron as a minister of state building thanks for coming back on we're going to go to lehman brothers in a second but obviously with two more liberal demo

the actual content is this is the governor of the bank of england saying if there is a hard brexit...n saying there's going to be debt to the first one, a plague of locusts and for all the problems that come after the referendum... that's the point, henry, i wanted you to pick up on. there are those who would say, the comedy other warnings. they have not happened. they had not happened for several reasons, not least the fact that we have not left. he took very swift action reducing interest rates shortly after the referendum... that's not what they said at the time. this is a movable feast. if you look at some of the details of this piece, if we have a disorderly brexit, the that immigration may increase for the first time since 1994 and if a lot of this is about reducing the population or... should bea reducing the population or... should be a politician! because you are not inserted the question. he did not promise hellfire and damnation. he is at it again! can i get one line in on is at it again! can i get one line inona is at it again! can i get one line in on a before you move on

a warning from the bank of england governor that a no—deal brexit could see house prices plunge. d interview with the two men suspected of being behind the salisbury novichok attacks has hung up during a bbc newsnight interview — shortly after complaining about what she called western propagranda. we'll take a look at that in a moment but first, let's watch a bit of that interview with the two suspects. yes, that's us. what were you doing there? translation: 0urfriends have been suggesting for quite a long time that we visit this wonderful city. it is a tourist city, they have a famous cathedral, salisbury cathedral, famous throughout europe and in fact throughout the world, i think, famous for its 123 metre spire, famous for its clock, the oldest working clock in the world. so you came to salisbury to take a look at the clock? we planned to visit london first and have fun there. speaking to bbc newsnight about her television interview with alexander petrov and ruslan boshirov, rt editor—in—chief margarita simonyan hung up on presenter kirsty wark after "the manner of the intervie

from this man, the governor of the bank of england. a whole lot of things that they were discussing yesterday it but the one he picked out on was house prices, suggesting they could fall by as much as 35% over three yea rs, fall by as much as 35% over three years, and that is because he suggested that if we left the eu without a deal, it could force a slump in the pound, and then they would raise interest rates to try to compensate, which could force up the cost of mortgages and it could leave some owners in negative equity, so it isa some owners in negative equity, so it is a perfect storm of trying to deal with a weaker pound, which could affect the mortgage market. so suggesting that prices could fall as much as 35%. already criticism as some suggest he is part of project fear that brexiteers have also said that frankly there are good things to be had out of this and this is a worse case scenario as far as mark carney is concerned. nonetheless he has raised some concerns. brexiteers said that these figures have been wrong before, so

the governor of the bank of england has warned the government that a chaotic no deal brexit or crash other financial shocks through the economy. he met senior ministers on thursday to discuss the risks of a disorderly excerpt from the eu. his worst—case scenario was that house prices could fall as much as 35% over three years. that is according to a source that told the bbc. the amazon on bass is putting $2 billion into a charitable fund that he has established to help homeless people and set up a new network of schools. the world ‘s richest man and announced the move ina richest man and announced the move in a tweet saying that the charity would be called the day one fund. the man is reportedly worth over $164 the man is reportedly worth over $161! billion and has faced criticism for not doing more philanthropic work. has had a look at what has been trending in the business news this morning. we will start with the business insider. over 200 delivery drivers suing amazon on on claims often missing wages. in the words of one common during my route i was unable to eat lunch, take break

a question, ahmed put to the governor of the bank of england mark carney. cent, of course it can. history teaches us that there are financial crises from time to time around the world. we can come up with 60 or 70 examples over the last century. can i push you a little bit more on what the new risks might look like, the areas where the concern might be about what could go wrong in the future? british households have worked hard and paid offa households have worked hard and paid off a lot of get over the last decade, that's been tough, they have put themselves and the system as a whole in a better position but the level of debt is still relatively high even after that. and there are pockets where there is quite significant debt. and so what we get concerned about is those areas taking ona concerned about is those areas taking on a lot more debt. there are risks around brexit for the financial sector and here is something that has changed from ten yea rs something that has changed from ten years ago, we are absolutely upfront about those risks, the view of the

the governor of the bank of england went in there. ing a nightmarish picture of unemployment reaching double figures. house prices falling between 25% and 35%. though they are falling by some measure, in parts of london, 10% over the last couple of yea rs. london, 10% over the last couple of years. he compared the outcome of no deal breaks it to the crash that happened ten years ago this week. cabinet ministers have been briefing the guardian. 0ne cabinet ministers have been briefing the guardian. one of them said, the government would just stand by. the labour government didn‘t and we wouldn‘t hear but interestingly, after this meeting, the government released a batch of technical notices, they call them here, and a lot would be not happy to hear that uk driving licences won‘t be valid in the eu. travellers with uk passports, close to expiry, with less tha n passports, close to expiry, with less than six months to go, may be denied entry. it‘s highly unlikely this happens. roaming charges as well but i suspect the two sides will come

poured into the accounts of city of london banks only later was malfeasance identified lloyd blankfein of goldman sachs who used to be the boss of governor of the bank of england mark carney was accused of misleading congress do you think boyd blankfein was lying or was he telling the truth that. well he was not being straight with his clients in a lot of ways and we showed that in his bipartisan report and he wasn't being straight with the congress when he said that there was no massive bet against goldman's clients sums all wall street down the city of london for what they were long before the fifteenth of september twenty eighth and it wasn't just socialist politicians like germany call business or coming those who worked in the banks themselves saw it coming and when they told their superiors they were sacked joining me now is paul moore author of crash bang wallop in the former head of regulatory risk and one of the biggest banks in the world h. boss paul thanks for coming back on they'll be acres of newsprint loads of stories about the ten year anniversary some people saying this isn't an accounting story a political story it's a criminal story it's a ta

daisy, we will start with the financial times and a sense of stability at the bank of england.hing to get back to canada and away from the brexit magnets. but the chancellor has been putting pressure on him recently to ask if he would stay on for his original five—year term. ask if he would stay on for his originalfive—yearterm. —— ask if he would stay on for his original five—year term. —— the brexit magnets. —— madness. when you look at mark carney, you kind of have to have some sympathy for him because he came over here with such fa nfa re because he came over here with such fanfare if you remember. he was such a coup for george osborne getting him. he would be in charge of this transition. it would bring a set of the revelers —— recession. and now he has been sidelined in the last few years because he hasn't been the main story. he has been having to firefight brexit. and not been hugely popular. an issue with theresa may. they have a scratch or relationship. yeah, she was critical of him and his monetary policies in 2016 and the tory party conference speech. he's also not

the former bank of england governor mervyn king has branded britain's preparations for leaving the euking has previously spoken of his optimism about leaving the european union. but speaking to our business editor, simonjack, he now says the lack of planning for the possibility of a no—deal brexit has undermined the government in the negotiations. if as a country we cannot take a big decision about whether or not we should be in the european union, which is based on sovereignty, based on controlling our borders, there are arguments on both sides, we ought to be able to have a reasonable and civilised debate on that and then have a vote. what we're now getting is not a reasonable or civilised discussion, it's a discussion where both sides seem to be throwing insults at each other. i find that deeply depressing, and frankly if a government cannot take action to prevent some of these catastrophic outcomes, whatever position you take on the eu, it illustrates a whole lack of preparation. it doesn't tell us anything about whether the policy of staying in the eu is good or bad, it tells us

also tonight: mark carney agrees to stay on until 2020 as governor of the bank of england to try to help a smooth brexit. saved by her husband — the wife of one of the westminster terror attack victims tells an inquest of his last moments. england have won the test match. england win the fifth test against india, as james anderson becomes the most successful fast bowler in test cricket. revealed again after the summer heatwave — homes in a lost valley in cornwall re—emerge after more than 50 years underwater. and coming up in sportsday later in the hour on bbc news: scottish football is staying in glasgow, as the sfa do a deal to buy hampden park. good evening and welcome to the bbc news at six. britain's most senior police officer says the government's refusal to increase police pay by 3% was like a punch on the nose. cressida dick says she was "extremely disappointed" by the decision to give police a 2% rise — despite an independent panel recommending it should be more. the home secretary, sajid javid, said he understood the pressures facing the police, but had to consider affordabilit

but the focus likely to be on words from the former bank of england governor lord king — who has condemned said it "beggared belief" that the world's sixth—biggest economy should be talking of stockpiling food and medicines. he was speaking to our business editor, simon jack, here's what he had to say. if a government cannot take action to prevent some of these catastrophic outcomes, whatever particular take on the eu, it illustrates a whole lack of preparation. it doesn't tell us anything about whether the policy of staying in the eu is good or bad. it tells us everything about the incompetence of the preparation for it. that is the former bank of england governor. joining us is richard dunbar, investment director at aberdeen standard investments. nice to see you, richard. morning. yet another voice today adding to the many arguing this process is not going well at all. what do you make of what mervyn king said's i don't think many people would disagree that the process is not going particularly welcome he describes it as incompetent, or at least the preparations for the process as incomp

so the more uncertainty for uk markets change to a different governor at the bank of england would create more upset. if we have consistency at the bank of england, i think that will help calm nerves to some extent i think a different governor would open sterling up to be potentially more vulnerability >> i want to ask about meefemerg market coverages overnight we've had south africa slip into recession. the indonesian rupi face a torrid few days. do you expect this trend to continue >> yes what thing you have not mentioned is something which is affecting all em and some more than others, this is the high cost of dollar funding the countries that have higher exposure to dollar denominated debt, indonesia pops into mind, they will be vulnerable to fed interest rate hikes. the market is expecting another fed interest rate hike this month. of course there is anticipation of further to come that's something that will undermine meaning markets. many others are exposed to the chinese/u.s. trade wars. that's another factor. in this environment, even without the specifics of turkey, argentina, i

the bank of england has tried to pair that back. is uncomfortable with loan growth in accessible gdp. there a lot of structural growth in the marketplace. there is still plenty of demand for credit. the challenge in assessing any business coming to market is, has it come full cycle? we are quite late in cycle. when of the questions you always pose is what is the default rate? if brexit becomes disorderly, what happens on default rates? how quickly do those ramp-up? we haven't gotten a lot of data for the last 10 years. francine: this goes back to the debt question. how difficult is it the type of model given that we are going to brexit? amir: i think europe has an unsecured consumer lending. business lending is still much smaller than precrisis and hasn't been going very much. banks have continued to pull out of that part of the market. it is very much undisturbed -- and service -- unserved. trouble befored people are investors would lose principal. run -- ourregular expectation is that in a downturn, losses would roughly double. we

news today that the governor of the bank of england may stay in hisjob longer than previously plannedn discussions about mark carney staying on as governor beyond his present departure date ofjune 2019. reports suggest the treasury is concerned that trying to find a new governor now, amid brexit talks, would be difficult. it wants to be able to give any new candidate a clear view of what the relationship with the eu will be like. it's thought mr carney is open to staying on for as long as another 12 months, until 2020 if needed. earlier we spoke to chris roebuck, visiting professor of transformational leadership at the cass business school. you know, we're in a position, if you look at any organisation where the person in charge leaves after five years, there's going to be issues about instability, be that in the organisation or outside. if you then add onto that that this is the central bank, and the bank governor, and then you add onto that the fact that this is in an brexit period which is one of the most critical periods for our economy and country in the last 50 years, this is a

he was very concerned, bundesbank, the head of other banks -- i think that head of bank of england, aslayer in the british market. guy: in terms of that language you described -- linkage you described and the preparation you put in place, how were you set up going into it? what were the counter risks? atef: you also have to look it from a nexus point of view. certain exposure to counterparties, but they have exposure to you. we were pretty sure we weren't overexposed to a counterparty. secondly, we thought we need enough liquidity so we did a lot of funding before hand in order to be well prepared for that. the third one, you always try to have your market risk under control. earlier in 2007, i was fully convinced this is not just something that will last for three months and then disappear because two things. imbalances on the desk level and in balances in real estate markets, normally they last much longer. , to find buyers for expectedhave demand, i as an economist. we started to reduce our risk in 2007 and all the conferences i was chairman of the global association of banks, i war

nejra: up next, the bank of england governor mark carney spoke candidly on the central bank's role inlimate related risk. more of that interview with francine lacqua next. we are seeing asian equities and the week on a high looking at the msci asia-pacific index. you are seeing japan outperform, the nikkei heading for a 27 year high. the dollar stronger against again. that dollar strength has continued after the fed. ♪ >> at 6:30 a.m. in london. 2:30 p.m. in tokyo. japan leading a lot of the gains in the asian session today. week markets ending the on a high. the yen touched its lowest since 2018 against the dollar. at 1.13.n trading let's check in on the broader markets now. >> good morning. asian stocks ending their volatile month with gains. it's the last day of the third quarter for trading. japan the outperform are there. -- outperformer there. higher in australia. , theig data out of asia bank of japan around 9:00 will give an update on whether or not they will start to taper purchases of prolonged bonds. futures in new york and london pointing to a higher start. the story that

says that people aged 30—39 are the worst affectected. 0ur economics editor kamal ahmed spoke to bank of englandncial crises from time to time around the world. we can come up with 60 or 70 examples over the course of the last century. and so the question is, what are we doing to guard against that complacency? i think those are the most important legacies. a lot of important changes to the way that the system operates, but it has to be an attitude, and that has to be structural changes that prevent a crisis like the one that we saw. there will be failures, there will be mistakes, but we shouldn‘t have to bear another financial crisis like the one that we saw ten years ago. let‘s hope he is right. kamal is here, our economic editor, who spoke to him. it was very interesting what he had to say, i have been listening to most of it and talking about the risk now, the various things that are seen from his perspective as a real risk in this time. absolutely, sally. the thing is, there is an old regulator adage that you don‘t regulate by looking in the rear—view mirror, you regulate by looking at the

of news on the ecb. we have the russian federal bank, the bank of england, this is not the latvian central bank. ding over voting race to the deputy in a statement from the latvian central bank. and that has any implications in terms of the timing of the european central bank, that will be one to consider. let us see how the week goes. board, neare you on nejra. nejra: thanks for making it such an easy start. that is it for bloomberg markets. "the european open" is up next. the open for european equity markets. this is bloomberg. ♪ >> good morning, welcome to bloomberg markets, the european open. i'm anna edwards alongside matt miller in berlin. .att: welcome equities lower in china and hong , a bearenchmark index market. european futures are pointing to a mixed open. cash trade is less than 30 minutes away. anna: u.s. president donald

i wonder how you felt when you heard the governor of the bank of england say that house prices might et and we did spend 3.5 hours, we were doing what i think is an important part of the government'sjob in what i think is an important part of the government's job in these negotiations which is to say, we are working for a good deal, i believe we can get a good deal but actually, we're still not at the end of the negotiations so we need to prepare for all eventualities. no deal is one of those eventualities. there is the governor of the bank of england, a man you have reappointed, and he is saying to the cabinet of the united kingdom, not because of the war or natural disaster but because ofa war or natural disaster but because of a political choice, house prices might slump by a third, thousands of jobs might be lost, you might be stockpiling medicines and food.“ jobs might be lost, you might be stockpiling medicines and food. if i can finish what i was saying about the meeting and come onto this issue of forecasts, what we were doing is what i think is absolutely right for the govern

factoring in a lot of risk aversion still, and not factoring in the potential rate path of the bank of englanderms of a soft, successful brexit for indeed the risk of a heart brexit. in both scenarios -- hard brexit . in both scenarios, the bank of england could be putting up rates softer than expected, which cushions cable, but should be materializing on the gilt market. anna: talk us through that little more. we discussed this before, the possibility of inversion on the gilt curve. so you see this flattening, and you see aggressive flattening by as much as 40 basis points if the experience of 2016 is repeated. run us through that. peter: the scenario is, if there's a big shock at some point, the e.u. and u.k. decide this won't work, chequerws is not likely to get through parliament, i need a better deal, and the e.u. says you will not get a better deal, in fact we will push back. both parties conceding a no deal is more likely than a deal, at that point there would be a complete rewrite of all the u.k. assets, and then you would have significant downside in cable, significant positioning for

>> yeah, it's not unusual to e boyant rates, tomorrow the monetary policy and bank of england, raised a quarter point from 50 to .75, but i don't think anything is going on the nonetheless, a lot of brexit stories, extension of carney by three-quarters of a year to make sure it's over the brexit hump with regard to mario draghi and the conversations both of our guests have been having, don't see any surprises. maybe he's going to talk about a slowing economy which brings up the conversation of divergence one thing i would like to add. gabrielle thought that the emerging markets would settle down steve hinted at it, and i agree. when they get trade worked out, and they will get it worked out, but i do caution there's a good chunk of the volatility in emerging markets that isn't going to disappear if we get perfect trade deals with all our major trading partners because the central bank balance sheets are getting smaller. the fairy dust is getting thinner in terms of how much it can be thrown out and those issues stand alone will be enough to continue to pressure emerging markets into t

tonenk the change in compared to just three months ago is remarkable. ♪ >> the bank of england governoren for extending the 10 year for a second time to help the u.k. transition out of the european union. he is due to step down next june, just three months after brexit. >> i think we all know there's a lot on him at the moment, the on it and ias a lot would expect this to be resolved relatively soon. >> the reality is personnel changes at the bank of england won't necessarily change the dynamics. buts not a bad thing equally it is no thing for the u.k. markets to rally, especially when you take a step back and look at the key driver for u.k. assets, it's going to be brexit. that is by default a function of brexit. i think that is small headline noise won't nest early flow through but it is not a bad thing. ♪ plans the second and third largest mobile carriers to shape and control 5g wireless technology. when you talk about this merger how will it boost their ambitions? >> as we understand it from the sources we have talked to, there's a proposal with china's theleaders that would see sec

the former governor of the bank of england, lord king, has condemned the uk's preparations for brexitfurther 54 royal bank of scotland branches in england and wales with the loss of 258jobs. the branches will be shut injanuary 2019 and are in addition to 162 branch closures already announced this year. the bank said the closures are a result of the collapse of plans to float off a new "challenger bank" under the name williams & glyn. lord king has criticised brexit preparations — with a warning over the way negotations have been handled. the former governor of the bank of england — who supports brexit — said it "beggared belief" that the world's sixth—biggest economy should be talking of stockpiling food and medicines, warning that it left the government without a credible bargaining position. thousands of people in the uk were charged twice for debit card payments, due to an issue with a card terminal run by cardnet, a joint venture between lloyds bank and first data. money was taken from bank accounts twice but transactions only showed up once on many receipts. lloyds says customers

for rajiv supposed to the bank of england -- is opposed -- you say this is a remain there. he doesn't know what he's doing. all of a sudden the markets respond. the cost of u.k. borrowing rises. i think it makes absolutely no sense because they have no realistic plans. i agree with hammond was right. keep carney in place. calm nerves. by time. hopefully that excludes the possibility of doing something completely idiotic as most of these brexit folks seem to be pushing for. it has become harder and harder for them to get that because they don't have a realistic plan for almost anything. vonnie: you have tweeted out brexit is an unmitigated disaster. there are no economic advantages. only major losses to everybody. many. one tweet among at what point will this become obvious if it'll occurs as you say it will? >> i think the answer is it's becoming obvious at the polling gradually seems to move and as reality kind of his people. so what are you actually going to do? how are you going to negotiate a deal? what are you going to do about the fact that if you don't have a deal the

as the governor of the bank of england? ing during the national anthem. he feels he has been victimised and nike have stepped into this minefield and taken him as a brand leader. they put a tag line against insane believe in something, evenif against insane believe in something, even if it means sacrificing everything. they could pay for it? it depends whether customers are and what views they have. let's talk to simon french, chief economist. it is quite a simon french, chief economist. it is quitea gamble? simon french, chief economist. it is quite a gamble? good afternoon. one of the problems nike had is they have been with colin since 2011 and if they had chosen the other route which was to drop him from their advertising, i would which was to drop him from their advertising, iwould imagine which was to drop him from their advertising, i would imagine there would have been another hash tag trending today for a different reason. you are right to question which way the consumer base will shift. we haven't heard from the pr

central bank decisions from the ecb and bank of england. that is next.is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro, this is "bloomberg real yield." time for the final spread. coming up over the next week, i look out for meetings of leaders from japan and china. at the eastern economic forum. the fed base book coming out wednesday and we get rate decisions from the ecb and bank of england on thursday. still with me are my guests. looking ahead to the ecb, i want to get the view from london. what are you looking for from president draghi through the next 12 months? diana: we expect that given the forward guidance, we think they have given themselves very little wiggle room in terms of there's not as much excitement around the ecb as there used to be. exiting qe is telegraphed on its way out. what is interesting is we will see to what extent they take into account italy on their periphery in changing the tone of the statements. also if the language around growth, given we had a pretty soft start to the year sounding a little more bullish, mak