a group of demonstrators have aggregated at the front of the bank of england. ed to correct myself from earlier. i said it was a demonstration by sxings rebellion it's been fossil free uk pushing on the bank of england to take the charge and on governor carney himself that's one of the things that's been happening here. the other thing, of course, and the main events that will happen in a few hours time at the embassy meeting, the first meeting taking place since that brexit extension of six months and i'm very happy to say i've got a specialist with me on the subject. it's great to have you here. i'm not going to ask you some climate change questions i want to bring it back to rates. it feels as though there's a lot of room for a hawkish surprise coming out of the decision. >> that's right. two reasons to think that. first the uk has some building inflation risks, expectations elevated above 2%. you have accelerating wage growth you have labor costs rising because businesses just aren't investing. productivity rates are sluggish. the second reason is that the b

bank of england, can they really go against every central bank in the world? gency? does mark carney want to keep a hike alive? was: they are where the fed a couple of weeks back where they perceive the current rate to be lower than neutral. they would like to get a couple of hikes in so later down the line they can reduce the rates again, but they are and likely in front of -- unlikely in front of brexit. tom: simon kennedy, great to catch up with you. there will be a news conference. they are all different. draghi's is different. a carney conference, the governor's careful comments on leave and remain. this is bloomberg. ♪ ♪ francine: these are live pictures of the italian president with the french ,resident in france participating in a ceremony honoring leonardo da vinci. it has been 500 years since he died. we think of what da vinci has presidentsnd the two taking solace and what it means for trade, a wider issue of political things. not sure what they will talk about. they do have a pressing problem, euro. tom: there are moments when your day stops. a roya

guy: i will focus on the bank of england. the market does not believe governor mark carney. t will be necessary for the bank of england to maintain his inflation target. the market went no, do not believe you. nothing happened in market pricing. there was a brief list but it did not last long. the market is pricing in 35% charge that we -- chance we will see a bank of england rate hike. i will stick up for mark carney. at least i will let the chart stick up for mark carney. what this is, in the blue line it is the economic surprise index for the united states. it is going down. if you look at the surprise index for the united kingdom, it is moving in exactly the opposite direction. the u.k. economy is beginning to outperform expectations when it comes to where the market is going. you can see this chart the right side. the white line going up, blue line going down. if that continues, maybe the market may see, and this depends on brexit, that the bank of england may need to hide. that is not my view, that is what the chart is signaling. vonnie: both charts were for nominal tod

the bank of england has raised its uk growth forecast for this year, in part because the outlook for growth of 1.5% this year, up from february's forecast of 1.2%. of 1.5% this year, up as expected, the bank kept interest rates on hold at 0.75%. let's talk to business correspondentjonty bloom. growth for the first three months is expected to be slower than it was previously thought. companies were stockpiling their reserves of head what they expect to be the brexit date, which has been delayed. the bank of england thinks there will be a knock—on effect from that. its growth forecast for next year is still going to be lower, about 1.2%. the overall effect is that growth is slightly higher than expected. yet it is still keeping interest rates on hold at 0.75%. the brexit fog is still well and truly there. how do you see interest rates moving? any clues to where they will go in the next you months. they did say they will willing to raise interest rates in the future and quicker than usual. that is a bullish sounding detail, because what they are warning about is inflation in one or two y

expect that their business has contracted every single quarter last year and the governor of the bank of england warned that it would be unwise to rule out the prospect of britain cashing out of the e.u. without an agreement right now two thirds of these firms say that they are prepared as prepared as possible for a no deal bragg's it so tell us the immediate threat right now has been delayed and pushed back on talk but it's still there how likely is a no deal outcome yes what he was actually talking about was crushing out of the you and that's of course mark carney he's the chair of the bank of england and if you look at it you look at overall the predictions of the dog predictions of not come true growth is actually beating the predictions have been increased from one point two percent to one point five percent in terms of growth so almost our predictions actually haven't come true things are holding steady so yes interest rates they predicted are likely to be raise a number of times basically because growth of strong unemployment in the u.k. is predicted to go as low as three point five perce

cautious approach to interest rates will likely be the bank of england's message today. exit uncertainty seems to be outweighing the evidence of resilience in the economy. super thursday kicks off midday with a rate decision followed by mark carney's news conference. william barr says you will not shop for a scheduled hearing about the mueller report after the justice department objected to the format of the testimony. the chairman of the house committee says he may issue a subpoena. this follows a contentious hearing of the senate protest and street clashes have continued in venezuela after opposition leader juan guaido failed an attempt to oust nicolas maduro. the president has vowed not to oust his rival -- arrest his rival. why no has the backing of the u.s. and other international allies, saying more is to come. global news, 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna, matt. matt: thanks very much, olivia. beat estimates in the first quarter. the carmaker says they will m

where is the bank of england in all of this? one of the surprising take-aways from the conference last week is they appeared to -- there appears tore a lotof uncertainty again, using the word uncertainty, on the short-term data, and it's giving mixed signals. they seem to be more confident about the long-term trajectory of the u.k. and they're forecasting excess demand over their horizon period do you think in a normal world the bank would be signaling perhaps a little bit more hawkishness and hikes in the near-term? >> you asked a great question last week that indicated the bank of england are not that clear where the natural rates is, where the supply constraint on the u.k. economy is that's actually really relevant from the standing whether they're in an environment of surplus demand they're going to need to ramp up rates quicker than the market expects. we've had the governor speak last week, and we've also had the bank's chief economy it's saying a different thing that the market may well be right to only place in one rate

and that's of course mark carney he's the chair of the bank of england and if you look at it you lookat overall the predictions of the diaper dictions of not come true growth is actually beating the predictions have been increased from one point two percent to one point five percent in terms of growth so almost our predictions actually haven't come true things are holding steady so yes interest rates they predicted are likely to be raise a number of times basically because growth of strong unemployment in the u.k. is predicted to go as low as three point five percent and it hasn't been that low basically in history and certainly not since one thousand seventy three. so right now the delay departure has been really expensive costly taxpayer tens of millions of dollars on wednesday as the government scrapped contracts with the very companies that were supposed to bring essential goods in the case of a disruptive brags that people weren't happy and even members of may's own party had urged her to step aside after she failed to deliver a deal twice so is a possibility and who would take h

the bank of england governor mark carney has a tough row to willelling investors he raise rates more in the event of brexit, when that looks further than before. does mark carney really expect a smooth brexit? >> if he really expects it, he is certainly holding that out as a possibility for the bank of england, moving rates a bit more aggressively this year potentially in 2020 as well in the markets seem to be showing right now. markets pricing in at best a 35% chance the bank of england would be raising rates this year in the face of the brexit that everybody knows we don't know what's going to happen. that's all you can say. so far, theresa may's labor party, the opposition, her own party, nobody seems to have gotten any further towards the ultimate deal that will get this passed. mark carney facing reporters, thiso explain why he sees potentially happening of this is what he said. >> if something broadly like this forecast comes to pass, so a time where the economy is growing, not quite at potential, and domestic inflationary pressures continue to build, even though we are going th

should the governor of the bank of england, the next one, be a woman? ry: what we management of the bank can control is the mix in terms of gender, ethnic, diversity, cognitive diversity, socioeconomic diversity, those elements of diversity within the bank of england. we have been taking very deliberate, comprehensive steps of the course of the last five years to shift those. i don't agree with your characterization in terms of our targets. seniormanagement, women management, with 17% in 2013. 31% today. we are on track for a 35% objective. the pipeline is very strong. we are just under 50% below senior management. atare making big progress the graduate intake and hiring intake. are,we can influence, we and we are making progress. how youmore than just act and develop. we are shifting the dialogue that, without question. the decision of who is my successor, who is on the mpc, the prc, the courts, the bank of england, those are decisions for the government. questions about who it will be and the characteristics of who it will be for any of those roles are

bank of england tomorrow will be a focus, the ftse 100 are continuing what started yesterday and some months factor into that but today you probably would discount some of that, the beginning of the new month, the market is looking at the possibility of a hawkish hold from the bank of england tomorrow, possible 8-1 vote. we saw soft data out of asia, but we saw soft kiwi employment data and that dragged the new zealand dollar significantly lower, vonnie. vonnie: it's decision day and we'll get the policy decision at 2:00 p.m. followed by a news conference. let's bring in laura from s.s. investment solutions chief economist. what will you look for from the fmoc? we've had a lot of comments and formed part of the discussion over the last two days. laura: we're not getting a big surprise out of the fomc today, no change reiterated in the patient language. they're almost certainly going to approve their session of growth but continue to focus on the flact inflation is disappointed and where a lot of us are looking and will they downshift their discussion of inflation expectations which ed

we don't know who that chancellor will choose to be the next governor of the bank of england. we don't even know if we could end up with a labour party and power towards the end of the year. in terms of pricing gilts versus other rates at the moment, how volatile do you see that story getting? how difficult is it to price the u.k. curve at the moment? difficult.y i feel sorry for anyone whose job it is to try and invest in the gilt market on the road because it is probably the lowest quality duration trade out there. you have 70 unknowns, and you have got a breakeven curve that is priced at extreme levels. you have a real world curve priced at stream levels, and then to try and take a pic on where nominal duration or 10 yields ought to trade is extremely difficult. the safest thing to say is, as you put it, we do not know anything, so let's not pretend that we do and let's not pretend there is no real convergence on the timeline with which the exit uncertainty gets resolved, let's agree that there is no convergence on what the next u.k. government looks like over a 12 month tim

banks. manus: of growth profiles we saw in the second half of last year and sta lot more to get to. it is bank of englanday and that takes us into the heart of your domain expertise. john wraith is the head of macro rates and strategy and economics at ubs. he stays with the daybreak team. we had earnings from the banks. you heard that cfo of ing saying that they look for transactions as they are presented. would not be moved on whether they had had talks with commerzbank. told it make sense for them do that deal question mark in terms of crust border deals, are there challenges without deposit guarantees, is that ahead -- a hint of what it might take? there is almost a potential secondary. it is not what will drive the narrative on ing. a little bit lighter on some of the numbers but that interest income. paribas.re about -- interest up 29%. ♪ >> we think our policy stance is appropriate. we do not see a strong case for moving any other direction. first quarter performance i think is not related to anything we did in terms of raising rates. the financial system is quite resilient to shocks of various kin

now the business front of the daily telegraph, and the bank of england slamming scare tactics of eu toe city firms. the ft has the german start up launches taxi jet to beat traffic snarl—ups. it has been launched in germany. the independent has this story about racism in football, saying the englad squad do not plan to walk off the pitch to protest against racial abuse, they have questioned what benefit it would have in walking off saying their focus is on eduction instead. and finally, this corker of a story where an oversight by a trianee manager led ta group of businessmen enjoying a £4,500 bottle of wine for the price of a £260 bottle that they ordered at a restaurant in manchester. luckily the wine waitress is keeping herjob! let us know what your guest work gaffs has been, get in touch with me on twitter. with me is fiona cincotta, senior market analyst at city index. let's start with politics, shall we? what is on the front page of lots of papers today. we like this headline on the daily mirror, may end injune stop the it's hard not to look and think i wonder whether she is offe

we've got the fed pausing on rates, the bank of england for most people the bank of england for most on with the world economies? there is a bit of wait and see what's going on. we are in an incredibly long period of expansion since the global financial crisis and in that period interest rates have been incredibly low around the world. obviously, they've been rising in the us but they haven't really been rising anywhere else. monetary policy was still quite... central banks were still happy to support economies. we have to come to the situation at some point where that ends, particularly in europe and the uk. we probably aren't quite there yet but because we've seen stock markets on a bull run over the last two years, there are questions as to what happens next. what happens when the economy is inevitably slow? central banks don't have as many tools as they had in the past to deal with that. when you look at some of the elements, we've mentioned the situation with oil, if there is a rise in the price of oil globally that has teaching plications for the global economy. then we've got

see, the pound trading strongly into the bank of england tomorrow. n join the cable show at the top of the hour on bloomberg radio. you can find us as well around the world on your devices. this is bloomberg. ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on bloomberg markets. apple is having a good day up 7% now. aided by iphone sales which came in over expectations. i guess the headline is that they were way down. here to explain why being weighed down is actually a good thing. >> it's just not as bad as expected. we knew the iphone was going to be an issue for apple this quarter but the numbers came in higher than expected. shares are really reacting to the upside. capsow it hit that market last year. if we close at this level again today, it will be at one trillion again today. iphone sales did drop. still down 17% on revenue. $31 billion was a little higher than analysts expected. the company said some discount, more generous trading offers are really aiding that. 54ween $52.5 billion and

the bank of england has scarcely knew rates over the last two years, the rates are basically still atbottom. this get out of jail clause in the bank of england's view of how it should set policy am a there is an awful lot of risk in the economy and downside risk to growth, then we can take longer to get back to the inflation .arget that has compressed the yield and liquidity. how can we express that might end? we can express it through money market curbs, steepness, and short at the long end. all those make sense when levels are low enough, because they look like they have an option payout. either nothing happens or the move is aggressive. that is how we have been doing and how we will do it in the future. manus: what is the positioning like across the curve? real brexit storm as ang, gilt did act global defensive mechanism. in terms of ownership and positioning in our market in the domestic u.k. market, how does it look? investorsi think most have a short position on one form or another, particularly inflation breaking high. , i would notdded say people are short, but shorter than th

it leads us to a story in the guardian, the deputy governor of the bank of england warning about the d is they have lowered what they considered to be the speed limit if you like of the uk economy so it can grow at a slower pace without creating instability and inefficiency. what we have seen is business investment has fallen. ironically that helped employment hold up because people are encouraged to get into low skilled jobs to offset some of that low level of business investment, but the outlook is challenging and the growth potential for the uk the outlook is challenging and the growth potentialfor the uk is slower and the expectations for the uk will potentially be compromised so it does not look like there is an obvious degree of good news on the horizon. thank you very much. thank you for your company. that's it from business live today. we'll see you again tomorrow. good morning, yesterday many had sunshine and it felt pretty warm with temperatures getting up to 18 celsius. today will be even warmer and through most of this week we will see a lot of sunshine until perhaps thurs

the bank of england has given its predictions for this year. cker. but the brexit uncertainty is hanging over the economy. they may need to cut rates to stimulate or put up to slow down inflation after brexit. let‘s have a listen to what the governor of the bank of england had to say. if clarity emerges, there is a smooth transition to some sort of arrangement with europe, the economy will pick up, business will start investing again, employment will stay strong, the economy picks up and in that environment, potentially, an environment with unemployment going to the lowest level seen since the very early 19705, a very welcome development. we would take... there would be some increases in interest rates, more than one. but we are talking over the course of the three—year horizon andi the course of the three—year horizon and i gave a lot of ifs in my earlier bit of that statement, certain things have to happen. let's ta ke certain things have to happen. let's take a look at the markets. lloyds share price is down. shares in metro bank hit a new re

the markets do not have the same view of brexit as the bank of england does. they do not think it will be a smooth outcome as college seem to think. david: mr. carney seems to be quite concerned about inflation. the wiki concerns about inflation around the corner? g.: by the end of their forecast period, inflation will be above target and still rising . that is the big thing that came through. in the near term they have lowered their inflation forecast because of the conceit from energy prices. it is mixed in the inflation message. david: many thanks to david goodman from london. let's go back to sahil kapur. we were talking about michael bennet entering the presidential race. we also heard from her current candidate, that is joe biden. he had something interesting to say about china. listen to what he said. launch? is going to er -- to eat our lunch? come on. they cannot figure out how to deal with the fact that they have -- between the china sea and the mountains in the west. they cannot figure out how they will deal with the corruption that exist within the

the bank underestimated that so therefore ended up with not enough capital so the bank of england toldt done that, raising another 375 million from shareholders in the last week. the bank of england says it now does have enough capital to keep going, so the immediate panic is over. work the accounts of customers that are at risk here? no, not really. even without enough capital to cover its risky loans, it did still have capital. and accounts are covered by the national insurance scheme up to £85,000. that includes small businesses as well. there wasn't really a ny businesses as well. there wasn't really any need to panic. i'm interested you said that the immediate crisis has passed. is it com pletely immediate crisis has passed. is it completely out of the woods? no, it's not. it has made a serious mistake and there have been quite a few concerns about the strength of the management team. if they don't make changes at the top, the whole thing can happen again, come to? there are questions on whether the chairman will survive, or if the shareholders demand his head at the agm today. so

the bank of england is taking a decision and quite a few dilemmas for mark carney as well. tching. if we got some sort of brexit solution, then you would see the bank of england talk about increasing rates but right now it would just be watching. sainsbury is a big mover today, your thoughts on their results? an interesting snippet, they are going to trial their first cashless and check out less store in the uk, similarto check out less store in the uk, similar to what amazon has done. it shows the level of innovation that retailers need to think about in order to stay relevant in such a tough world. you've seen it's quite tough. thank you very much indeed. george, come back to talk to us about the papers. we'll ask if you're a royalist too, that is also on our agenda. still to come. the global healthy snacks market is valued atjust over $23 billion dollars. we'll meet the co—founder of a company aiming to take a bite out of that market — real handful. you're with business live from bbc news. a bit more about sainsbury is‘ numbers. sainsbury‘s supermarket reported profits up

nejra: what would that mean for the bank of england policy? he gilt curve hit its flattest since the financial crisis to last week. i think the delay to brexit means the bank of england can't get the position it wants to be, which is the monetary policy from the economics rather than from the political standpoint. so, the longer the brexit issue goes on, the more the bank of england is frustrated and the more the market seems frustrated in monetary policy. perhaps as we get into the end of the year, if we do get a resolution in brexit, that's what the bank would like to see. then they can move towards probably raising interest rates in the current context of an economy which looks fairly well set. manus: the data hasn't been that bad. a wonderful quote, downshifting. if we had a hard brexit, it would be like downshifting the car from fifth gear to first. are we seeing more talk about risk of recession? tim: i think slower growth, but i think the u.k. can probably afford a long-term recession. but brexit would probably result in slow growth in t

but even the bank of england has upped its forecast for this year to 1.5%, its not huge, but it does grow some reasonable rate. the duke and duchess of cambridge and duke and duchess of sussex have launched the uk's first text messaging service to give support for people experiencing a mental health crisis. the shout crisis line, in conjunction with the royal foundation, will provide free 24—hour support and is looking for thousands of volunteers. it connects people in difficulty with trained volunteers who can offer assistance. every care home in england is to get more gp support to ensure residents aren't given too much medication. the nhs says the move could reduce hospital admissions among elderly people in care by up to 40%. 0ur health correspondent, rob sissons, reports. it's a simple idea. it's been tested at this care home, derbyshire house in nottinghamshire, and has reduced hospital admissions and cut the drugs bills. a gp practice buddies up with a care homes, so residents' health can be checked by a doctor more. rachel visits every two weeks. is there anything urgent that

the head of the bank of england mark carney also speaking. what he has to say about the impact of the endless brexit drama of the bank of england. investors, watching india's election results and the rba rate cut. everyone thought it could have cut its key rate if there wasn't an election pending. now we will see how markets react and what economists say, a lot going on. right, kathleen hays, thank you. coming up next, video scandal has shaken austria's ruling coalition. the chancellor is going for broke in snap elections. we will update you on the political showdown. this is bloomberg. ♪ g. ♪ allen in sydney. .hery: i am shery ahn you are watching daybreak australia. as investors weighed the implications in australia and india, another on the watchlist is austria. austria is in political chaos ahead of the elections. in the u.k., opposition leader jeremy corbyn moved to fully backing a second brexit referendum. fellow,us is the senior jacob kierkegaard. always great to have you with us. let's start with austria because this seems to bring ne

the bank of england will tell us later what they make of growth, interest rates, and the brexit delayerpool are stunned by messi's magic in the champions league. the ‘little magician' inspires barcelona to a 3—0 win

today with the bank of england meeting, the jobs, the fed meeting, the things we talk about each and o we have a risk of a combination that if we are so desperate for income, will we enter an era -- whereything merges everything merges into a oligopolistic structure? >> there is that risk. but in terms of stock market activity and class asset activity, we see correlations that point toward the same direction. massive yield and discretion everywhere. long data assets. you thely paying premium, the liquidity that you need. we see, asely, as you mentioned quite rightly, a enormous concentration of industries including my own. tom: decision of concentration is something with the s&p 500 up today. there is a lot to talk about across surveillance today. coming up, this is always an interesting interview but today, even more so. a conversation with lawrence kudlow, national economic director. and no doubt, the name stephen moore will come up. stay with us. this is bloomberg. ♪ >> i'm not so sure i agree with the white house that we should cut rates by a entire percentage point. i just don't

the bank of england is expected to leave interest rates unchanged at 0.75%, as brexit uncertainty continues growing at the fastest pace in a decade. most economists don't believe the bank will raise rates until britain's departure from the eu is settled. ba rclays faces a showdown with an activist investor at its annual shareholder meeting later. new york—based edward bramson is trying to get elected to the bank's board — to force it to scale back its risky investment banking business. investors have been gobbling up shares in beyond meat — the maker of vegan burgers — ahead of its listing on the nasdaq exchange today. beyond makes its burgers out of beans and uses beetrootjuice to make them bleed when cooked. the initial public offering will value the loss making company — whose early investors include leonardo dicaprio and bill gates — at almost $1.5 billion. a report commissioned by the government says the uk should lead the global fight against climate change, by cutting greenhouse gases to almost zero by 2050. the committee on climate change says it would mean people eating less meat,

paul: well all that is going on, what is the bank of england doing? stay -- action to stay while the dust settles? david: the bank of england is in a bind. governor probably says if it is smooth, the market may be underpricing the hikes. if there is a no deal brexit, it goes out the window. a catch for the bank of england is how to tell. likely sterling gets weaker. there is an impact on output. if output is negative, you think it will lead to rate cuts. sterling inflation will lead to rate hike. we have to see how it plays out. rates or raiset rates, we have to see. kathleen: i think this is tougher. theresa may steps down, what does it mean for the dollar? strength in the near term. there are so many unknowns. david: there are quite a few. you think what the dollar is comprised of, go to the bloomberg dollar index. the euro and the pound, less than 42% by themselves. there is a no deal brexit. it is not good for sterling. it is not good for oil, either. mixed, thee data is most recent pmi data has not been good. a hard brexit would not help the euro

guy: bank of england's pra authority head joining anna edwards. that was sam woods. nce of with david westin. vonnie: they will be talking trade war. meantime, the market continues to rally. this is bloomberg. ♪ ♪ david: from bloomberg world headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, from washington, margaret to let on president trump's standup, may'sa rafael on theresa brexit, and mike braun. let's start in washington. the president is having a standoff with congress. does he think he can prevail? >> he does. there is an empty chair to prove it. the president is committed to andstrategy of just say no leaving things increasingly to the courts to decide. we have seen it again in the recent case with don mcgann and the instructions yesterday from the white house based on that justice department memo that the former white house counsel should not appear before jerry nadler's house midi -- house

rosalind: the bank of england meets as brexit talks continue, the u.s. and china hold another round of trade discussions, and investors digest the latest u.s. jobs report. >> jay powell was right. >> low unemployment, strong growth, and virtually no inflation, so all those phillips curve models should be buried. rosalind: plus, expert perspective from eminent guests at the milken institute global conference. >> we are 10 years into an economic recovery, and at some point, there will be a recession. >> china has stimulated its economy like they said they would. >> economy is chugging along pretty well. policy is going to be relatively stable. rosalind: it's all straight ahead on "bloomberg best." ♪ rosalind: hello and welcome. i'm rosalind chin, and this is "bloomberg best," your review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. alphabet released its quarterly results after the bell on monday, following earnings from facebook and amazon t

that chancellor will determine who the next governor of the bank of england is. mark carney is about to depart. always a significant appointment, and maybe one that is thrown up into the air germans process. worthher thing that is paying attention to is the possibility of a general election. that on current polling will be a very in the affair. we could end up with a jeremy corbyn administration and mr. mcdonald in number 11. at that point, the arithmetic around the british economy is likely to change radically and moved sharply to the left. vonnie: thank you for the context, guy johnson in london. you can catch him every day along with me on bloomberg tv. higherocks taking a leg on a thin volume day before the holiday weekend. the s&p 500 bouncing after a late morning dip. our next guest says traders are short in the s&p 500 at the highest rate since 2015. we welcome our cross as reporter sarah ponczek. shortened because it has reached heavy levels, is there another reason? >> you would think so, or not. investors, it seems they are hedging their positions, espec

the bank of england is upgrading its forecast for the economy to 1.5% on gdp to 1.2%, which is what theylier. based on all of this, the message from mark carney is listen to me come investors. we could hike rates a little more this year and next year and he wants to give them the warning. let's listen to what he said. something like this forecast comes to pass, a period of time where the economy is growing in these domestic inflationary pressures are continuing to build even though we are going through this period of uncertainty in the run-up to the resolution around brexit, it will require interest rate increases over that period. it will require more and more frequent interest rate increases than the market currently expects. kathleen: more rate hikes, more frequently. that is the message from mark carney. the pound did not extend a rally. u.k. gilt yields held steady. whatms up and encapsulates the bank of england is seeing. go way back, the first redline exception on the far left, that is when the brexit vote occurred . it has gone through some weak spots according to growth and infl

long-termhart here, a chart that shows the big central banks around the world like the bank of england, boj, et cetera. the only one that has gone up, the white line, is the fed. given the fact that the market is pricing the next move from the fed as a cut, have other central banks such as mark carney's bank of england missed the opportunity to raise rates? kate: i don't think so. i think we need to see stronger economic growth than the rest of the world for them to increase rates. inflation has stayed lower in the rest of the world then in the u.s. they are all saying we need to provide more support. it is low rates in the rest of the world that has dampened u.s. rates. i think the 10 year in the u.s. continues to stay around two point 5%, partly because rates are low in the rest of the world -- 2.5%, partly because rates are low in the rest of the world. the u.s. trend in trade deal could be a catalyst for trade picking up in the rest of the world. most countries in the rest of the world -- that could be a positive indicator for growth. that could give central banks, over the next fe

we get a bit of an update on the uk economy later from the bank of england. nina is with us now. he reports on the health of the uk economy and how he thinks it will fare over the next few months. in particular he'll talk about economic growth. earlier on the economy was doing better than expected but this week we heard from experienced forecasted anna described it as a bit of a false storm. people worried about brexit stockpiled and this made it look better than it was. now they are saying the economy will grow by just1.3%, are saying the economy will grow by just 1.3%, that is pretty is slow, the slowest since the financial crisis basically saying because of those resources we re crisis basically saying because of those resources were not accurate, the can has been kicked down the road. it is not all about the big factories but about the services economy, what was spent going out, buying clothes. 70% of the uk economy. how are people feeling? household spending? that's different? it is, in march we heard the inflation was 1%. it looks like it was going up to 2%. it was costing

was not only initially leaning towards comedy, but he was on a path to becoming a lawyer at the bank of englandspoke with him in toronto when he is performing -- where he is performing as part of a north american tour. lawyer, id been a would have shot myself at the age of 50. i don't think i would have gone far beyond 50. most of them don't. jon: it's fascinating, on the one hand, there was this opportunity -- paychecks were looking good. >> but there was something about comedy, i saw the marx brothers unite --irst time, and ignited something in me. just a kind of, i don't know, a curiosity. calledber seeing a play one-way pendulum, it was an absurdist play and i remember thinking about it, something about it was marvelous, but i never thought of going to comedy. if you came from a little town like i did, you were just as likely to become the pope as a comedian. as the journey began, it's a reminder that when you go into these fields, the stakes are high, i don't think it was that long into this journey that you realized that while you are a very funny person, that comedy is hard. you have sai

as expected, the bank of england has kept interest rates on hold at 0.75%. e bank has however upped its growth forecast for this yearfrom 1.2% to 1.5% in part because the outlook for the global economy is a bit brighter. a woman who caught hiv through her haemophiliac husband has told the infected blood inquiry doctors persuaded her husband to take contaminated medicines. the inquiry has already heard heart—rending testimony from several victims of the scandal — and today clair walton told her story. our health correspondent sophie hutchinson has been at the inquiry in central london. clair walton is the first of the family members to give her testimony here at the public enquiry. she said how she was infected through her husband. he was given contaminated blood products to treat him for his severe haemophilia. he was infected with hepatitis c and hiv and, as a result of that infection, clair walton became infected with hiv. she told the enquiry he was never properly warned of the risks of these blood products and that, in fact, doctors had almost praised him

sticking with brexit, the bank of england deputy governor says leaving the european union could have the country returned to a more british style of regulation. what is that? assist in exit would responding to emerging threats. >> if i could offer two views that i have, one is i think we oft maintain high standards financial regulation in the u.k.. it is only 10 years ago we had the biggest bank in the world here in the u.k.. we cannot go back. question of the silo which we regulate after brexit. style in which we regulate after brexit. a more british style is still tough but has less detail it is more dynamic. >> that is interesting. you talk about how the u.k. cannot be a rule taker and financial services. where specifically do you need a more british style of regulation? >> you look at the different ways we have brought in regimes. the best example, we have done in the u.k., not elsewhere in the eu, the way that was done is very different from things like other european directives. principles and important design features in legislation, and the benefit of that is we can be more dy

rosalind: the bank of england meets as brexit talks continue, the u.s. ina hold another round of trade discussions, and investors digest the latest u.s. jobs rep

the bank of england is estimated that £a trillion of value and fossil fuel is at risk from climate changet well. why is there not in inclination to do what they know they need to do? because action makes financial sense. they are increasingly doing it and which you quoted from our survey, a very small percentage companies as attractive investments over more than ten years if they stay as they are. the overwhelming majority of the people we survey wa nt majority of the people we survey want them to move rapidly towards the paris targets of one and a half degrees which is the net zero target. the weak point and with the oil companies are doing is not moving fast enough. they are not setting deadlines for the oil companies and they are not beginning to say what they would do of those deadlines are not met. how is your organisation getting into this and the trends we need to see if we are going to make significant change was yell at your right to focus on financial services, that is will be did. he talked to the government, the regulators, the fund managers and the pension fund. and we have t

rosalind: the bank of england meets as brexit talks continue, the u.s. ina hold another round of trade

the bank of england will set the base rate in ten minutes' time. rclays is made up of two bits. the retail bank that runs current accounts, takes deposits and makes loans, and the investment bank that advises on takeovers and helps companies borrow money or sell shares to investors. the big question today is whether the bank should be doing both bits, one far riskier but potentially more lucrative than the other. two americans, both titans in the world of finance, have wildly contrasting views on this. the boss, jes staley, has the support of the board for the wheeler dealer world of investment banking. a rebel investor, who owns just over 5% of the whole bank, the quietly—spoken edward bramson, says it's not good value for money for investors, given how much it costs to run. let's talk to philip augur, independent banking analyst. he has suggested that he won't win the vote today, but i guess the crucial question is how many other shareholders will he convince? exactly. the agm is going on as we speak. it was interrupted by climate change activists

one, it will not be a financial systemic risk because the ecb and the bank of england have a close cooperationn the case of any kind of hard brexit or no deal exit, they have the clearing of derivatives markets in check. in other words, not a disruption like we saw with lehman or what could have happened with greece. relationship between the u.k. and euros zone is so substantial that that will be a real economic impact that could basically ripple across the euro zone economy for that matter. i think that is what markets will embrace for if we end up in this heart exit scenario. scarlet: as you put it, a new phase in the uncertainty we have been working with for the past three years. ben joining us from l.a. thank you. coming up, a bullish bet. an analyst explains why he says amazon stocks could reach $3000 in two to three years. from new york, this is bloomberg. ♪ scarlet: it is time now for our top calls. first up, we have jp morgan upgrading to neutral. they stop getting a bump by 1%. analysts citing a better risk reward ratio. list.a added to a select the recent seller -- retail seller has

and the bank of england announced it would hold interest rates at zero point seven five percent following last month's decision to extend the budget deadline to october thirtieth telling for much from british american business association to join the show and the us what this means for the e.u. turmoil moving forward all that directly ahead but first some headlines. again changer for latin american start of leeds our global report today as the famed softbank group of japan makes a billion dollar investment in colombian delivery service wrap the capital infusion into the on demand delivery startup is the first major move by soft banks innovation fund and latin america's local hub softbank the innovation fund as the largest tech fund focused on latin america the major investment is happening before the fund has even been formally established for now the capital is coming from soft banks vision and directly from soft bank group and the portfolio a pass to the innovation fund when it begins operation wrap the launch from colombia in two thousand and fifteen and now also operates in seven coun

where the bank of england is expected to keep rates on hold. ncertainty continues to outweigh signs of resilience in the economy. we heard from the prime minister theresa may, who was deal can be reached, but she cannot say when that would be. >> after the challenge i and the earlier, approach that has been taken so far, i am reluctant to put a date on it other than to say i want to do it as soon as possible. rishaad: let's bring in jodi schneider. could the labour party be moving toward a brexit solution? there is an argument within the labour party whether it should be put to a popular vote. they are talking and making progress. continues to talk and they will end the talk soon without an agreement. there are signals she is stepping back from one of her red lines, which was to not have a permanent customs union with the eu, to leave that permanent customs union. that seems to be something the labour party can work with. she does not want to call that because that would be a train members of her party -- that would be betraying members of her p

what you want to ask the bank of england to do, stick with the regime or try something else? en it comes down with the interest rates, a direct correlation in the market. what is your stance on investment, steady as she goes, or is there an adjustment? steven: apart from this clear issue you are covering on the united kingdom, we have a period of suspense ahead at minimum until the middle of june. you can see this with the need for an agreement between the united states and china, and thereafter the trade war can continue to other places in the world. we have a great deal of suspense about how much leverage the united states and china want to develop and get over each other, how willing they are to target as this disruptions across the seas, and how much impact it can have on confidence and the economies? at will have a large impact on corporate profits in the united states and china potentially. this is a bilateral issue, and others may come in to take some of that business away. that is possible. we are contingent on what happens with this, as we had the shock at the beginni

so it could go higher than the bank of england's target, but we don't expect it to be sustained. en super—sensitive and that will continue for the next few days, if not couple of weeks. the downside risk to sterling is there given the fa ct we risk to sterling is there given the fact we are seeing brexit risks back in play and the currency has remained relatively stable for the past few months on brexit complacency, so that is coming back quite sharply. yes, the complacency is no longer there, the brexit break we enjoyed. thank you for now. laura is back a little later to discuss all sorts, including the idea of a gender neutral voice assistant. you have really got going on that story today. you have been tweeting in your d roves! still to tweeting in your droves! fine luxury watches made in the uk? we'll meet the man helping to revive british watchmaking. you're with business live from bbc news. gas distribution network cadent has been hit with the biggest financial settlement 0fgem has ever imposed. the company, which pipes gas to 11 million homes and businesses, has agreed to p