directly from the governor of the bank of england, added _ governor of the bank of england, added in think the important message to get across is this is— important message to get across is this is an _ important message to get across is this is an important staging post, this is an important staging post, this rate — this is an important staging post, this rate cut. it is important not 'ust this rate cut. it is important not just because of what it does to rates _ just because of what it does to rates of— just because of what it does to rates of borrowing on the economy, it is a _ rates of borrowing on the economy, it is a signal— rates of borrowing on the economy, it is a signal for the economy, for businesses — it is a signal for the economy, for businesses that want to invest. they are starting — businesses that want to invest. they are starting to come down, not drastically, but they are starting to come — drastically, but they are starting to come down. for households too. we have already _ to come down. for households too. we have already seen fixed mortgage rates _ have alread

bank of england cuts at risks. gland cuts at risks. does your previous answer— of england cuts at risks. does your previous answer suggest _ of england cuts at risks. does your previous answer suggest you - of england cuts at risks. does your. previous answer suggest you disagree with that? _ previous answer suggest you disagree with that? and — previous answer suggest you disagree with that? and another— previous answer suggest you disagree with that? and another one _ previous answer suggest you disagree with that? and another one on - previous answer suggest you disagree with that? and another one on the - with that? and another one on the minimum — with that? and another one on the minimum wage, _ with that? and another one on the minimum wage, if— with that? and another one on the minimum wage, if i— with that? and another one on the minimum wage, if i may. - with that? and another one on the minimum wage, if i may. there i with that? and another one on the i minimum wage, if i may. there are with that? and ano

the bank of england. — business operations. the bank of england, which _ business operations. usiness operations. the bank of england, which cut interest| of england, which cut interest rates for the first time in four years on thursday. the cost of borrowing was lowered from a 16 year high of 5.2% to 5%. naeem aslam, chief investment officer, zaye capital markets explained what precipitated the boe�*s decision to cut rates now. i think the signs were already there, in terms of the bank of england because my own mandate and the most important one was inflation meeting its target. if you look at how the overall situation in the uk's market, especially with respect to real estate, the borrowers, they are under massive pressure, in terms of the repayment, because if you have a mortgage of 300,000, and your payments were around £750 a month, but with a new interest rates, you are looking to pay something around £1100 or £1200, depending on the value you have in your product. so from a consumer's perspective and from the economy's perspective, this was coming, and then this was a ri

some are saying this could lead the bank of england, or prompt the bank of england to cut rates againn september. what are your thoughts? what are your expectations? yeah, well, the market is still pricing in two further interest rate cuts this year, with one in september and then one before we get to the end of the year. so that 25 basis points for september is not completely in the bag. but certainly after the announcement this morning, i think there seems to be more expectation from the market that that next cut will come to take us from 5% to 4.75%. the key thing in the inflation number that the bank of england had been worried about to date is actually in the services inflation. and if we look at the underlying figures that were reported this morning, we've seen that services inflation moderate a little further again. so that would lead you to believe that the bank of england have a pathway to cut interest rates again in september. this weekend, indonesia will hold its first major event at what will become its new capital city. presidentjoko widodo wants to replace jakarta, which

bank of england to cover its yesterday but signaled they will go slowly for future interest rate decisions. the markets pricing and 30 basis points of rate cuts for the year, but let's talk more about how these asian markets are faring. big moves in the japanese indices. avril: look at the 5% limit we are seeing on the nikkei, the topix. this is saying about given the turbulence we have been seeing gently. we are seeing markets repricing, adjusting to those concerns the federal reserve is behind the curve given the u.s. data overnight. can the u.s. economy wait until september for rate cuts, and those tech earnings, intel, amazon missing on the revenue forecast. china woes, coming in through apple, steepness is to march of 2020, and then of course this is coming against the backdrop of a relatively strong japanese currency still hovering with strength around the 149 level even though it is giving up gains of the past three sessions. let the board. as i talk about the yen, keeping in mind other currencies that should benefit from fed rate cut expectations, but you are seeing the bleed in th

overall prices rose by 2.2% in the year tojuly, slightly above the bank of england's target of 2% wheres speak to bbc business reporter, daniel thomas. just talk us through these numbers. i think it would be easy to see these figures as bad news, obviously prices have risen by 2.2% in the year tojuly, that breaches the bank of england's target of 2% where the pressure rate had been since may. it also comes after months and months of inflation rate falling. if you remember, in late october 2022, inflation soared to 11%, just over 11%, really hitting families across the uk hard as energy bills and food bills soared. so since then, the rate had been coming down pretty steadily, that this is the first rise since december. however, people shouldn't be too alarmed by this, the bank of england and other economists have rightly expected inflation to go up slightly, and there is a pretty technical reason for that, there is a pretty technical reason forthat, it there is a pretty technical reason for that, it is largely due to the prices of gas and electricity falling by less than they did the yea

some are saying this could lead the bank of england, or prompt the bank of england to cut rates againare your thoughts? what are your expectations? yeah, well, the market is still pricing in two further interest rate cuts this year, with one in september and then one before we get to the end of the year. so that 25 basis points for september is not completely in the bag. but certainly after the announcement this morning, i think there seems to be more expectation from the market that that next cut will come to take us from 5% to 4.75%. the key thing in the inflation number that the bank of england had been worried about to date is actually in the services inflation. and if we look at the underlying figures that were reported this morning, we've seen that services inflation moderate a little further again. so that would lead you to believe that the bank of england have a pathway to cut interest rates again in september. indonesia is set to hold its first major event at what will be its new capital city this weekend. presidentjoko widodo wants to replace jakarta, which he says is pollut

the numbers today are important for workers and also for the bank of england, so a focus on the wage ght indicated that wages are growing slightly less strongly than we have seen over the last couple of months, and that comes with a mixed picture for workers, and that is often bad news, especially in the public sector. so when we look at trends since the pandemic, public sectorwages when we look at trends since the pandemic, public sector wages are still than where they were in 2021, whereas those in the private sector, that growth has been slightly stronger. 0n the other hand slightly better news, when we look at the economy overall, and looking at the bank of england, they might be pleased to see improvement in —— slight reductions in wage growth because that might make it easier to cut interest rates.— cut interest rates. when looking at eo - le cut interest rates. when looking at peeple dr0pping _ cut interest rates. when looking at peeple dronping out _ cut interest rates. when looking at people dropping out of _ cut interest rates. when looking at people dropping out of the - cu

i think the signs were already there in terms of the bank of england's on mandate. k market, especially with respect to... real estate, they are under massive pressure in terms of the repayment. if you have a mortgage of 300000 and payments werejust around 750 mortgage of 300000 and payments were just around 750 per month, the new interest rates, around 1100- £1200, the new interest rates, around 1100— £1200, depending on the value which you have in your wallet. i think from consumers' perspective and from the economy's perspective, this was coming and this was a right move that the bank of england had to make. but i think the there was another question for investors and traders — is this enough from the uk economy and how much the bank of england can do more? in order to ease the pressure on consumers. talking about the overall economy, as the new government in place in the uk, chancellor rager relieves has talked about physical burdens from the previous regime —— rachel reeves. i previous regime -- rachel reeves-— previous regime -- rachel reeves. ~ �* , ., ., reev

i'm sure the bank of england _ of the way now. i'm sure the bank of england is _ of the way now. of england is watching quite closely. he warned when installation started to realise ugly head sometime ago he warned chief executives and the government against free to high wage deals. government against free to high wage deals-— wage deals. capital of that indeed. the _ wage deals. capital of that indeed. the question - wage deals. capital of that indeed. the question is . wage deals. capital of that l indeed. the question is what you will call high degree so that you get the country back to work. the really mignon du preez. that they can carry on like this for the moment because they have recently been well paid and at the same time there because of the economy real promise they have to try to get it fixed. it will even pay more for it. the question will be if they pay too much inflation and if all else falls on as well and what you have the problem in the 19705 where everyone is going to the same inflationary. i don't think you will see that this time. on the other hand the govern

so steady as she goes, it sounds, from the bank of england. goes, it sounds, from the bank of englandand. certainly, and aaain of england. certainly, and again this _ of england. certainly, and again this comes - of england. certainly, and again this comes back - of england. certainly, and again this comes back to i of england. certainly, and i again this comes back to the inflation picture, so for instance inflation in the last few months becoming a lot lower, but if we look at the services sector inflation, now remember the uk is a service is dominated economy and within the services sector, if you run a restaurant or a the services sector, if you run a restaurant ora pub, the services sector, if you run a restaurant or a pub, wages are a very large part of your outgoings, a part of your bill, so services sector information in the uk reflecting still the tightness of the labour market remains quite high. it has come down from its highest but at 5.2% it is a little bit too high for the bank of england to cut interest rates at consequent meetings, so we have an august interest rate cu

we are going to get a lot of data from this bank of england after this decision. lation part of that story, what are the risks in terms of the upside risks to inflation? what would get inflation to come back again? i mean, we have made progress. we lift the lid and it's a bit more complicated. but surely, the risks around higher inflation have abated, have they not? jackie: well, it's that services inflation that are really causing concern for the bank of england. at 5.7%, that's, you know, way above where they would really needed to be to justify an interest rate cut. whilst we have nothing the impact of -- not seen the impact of some of the statements the new government has made around public-sector wage increases, you know, they are indicating that they are likely to be pre-substantial. the bank of england will say they cannot take into account government statements. it won't be until it actually hits policy that you will see inflation. there are a lot of concerns that what the government are seeing from a fiscal perspective could be negative for inflation and j

we mentioned rates decisions by the fed and the bank of england, and the nikkei is down partly becauseecision to raise interest rates yesterday which sent the japanese yen rallying. who else but the bbc�*s resident yen geek to explain? mariko oi joins us live from our asia business hub. what is going on? i was so disappointed _ what is going on? i was so disappointed i _ what is going on? i was so disappointed i did - what is going on? i was so disappointed i did not - what is going on? i was so disappointed i did not getl what is going on? i was so i disappointed i did not get to talk to you yesterday. i know you had breaking news, buti was so excited the bank of japan decided to raise rates, not the fact they raised rates but it shows the bank of japan is trying to return its monetary policy to something closer to global norms and it also shows they think the economy is ready for higher rates. i was actually playing this, her gong across bbc radio. can i play this? there you go. a gong. the n has been rallying, especially after the central bank governor said he was ready to raise rat

the bank of england pulls the trigger on its first interest rate cut in four years. feeling a bit hot under the collar? well, maybe it's time to try one of the hottest acsessories seen at the paris olympics. a neck fan! we find out what all the fuzz is about. live from london, this is business today. it was an ugly day on wall street with the dow sliding nearly nearly 500 points as recession fears re—emerged. both the s&p 500 and the tech—heavy nasdaq also closed in the red. the report cards of tech giants amazon and apple didn't do much to lift the mood either. our north america business correspondent michelle fleury has more on what sparked that sell—off. not even arm is on could lift wall street out of its function as in the e—commerce shine fell after reported sales grew 10% to $148 billion. that mark the slowdown from the prior quarter and its forecast further weakening in the months ahead. it wasn't the only take from either her results left investors with a sour taste. intel stock plunged after the chipmaker said it plans to cut 15,000 jobs and announce disappo

jonathan: a quarter-point cut at the bank of england. the decision that characterizes finely balanced from the bank of england. let's turn to the story in sterling and get to cable. the pound lower, down .7%, 1.2766. i want to cross over to lizzy burden outside the bank of england. over to you. lizzy: they said we were going to get a rate cut this summer, the sun is out and here we are, the first cut in four years for the bank of england. it was what was expected although it was on a knife's edge because headline inflation is back at 2% but services inflation came in hotter than expected, hence the cautious tone around this decision, particulate from the governor. it is reflected in the boat split. it was what economists expected. if you look to the guidance, no specific guidance on when the next cut is coming, where rates are going to continue. it is a bit reminiscent of christine lagarde. the last ecb meeting, trying to keep the door open. jonathan: some people have criticized the ecb decision to reduce interest rates. socgen called it

of the action from central banks. the bank of japan increasing rates and the fed saying they are keeping rates on hold, but perhaps cutting them in september. then we heard from the bank of englandutting rates by 25 basis points. over the last 24 hours, growing concerns about the state of the u.s. economy after weak manufacturing data and actually at this stage, some investors are raising the question about whether the fed should have cut rates this week. so that's your back ground as we look at today's equity session here in europe. at this stage, we have the stoxx 600 down 1.4%. yesterday, the stoxx 600 was also losing and ended the session down by 1.2%. at this stage, it is, indeed, on track to end the week lower. let's see by how much once today's session is over. let's take a look at the main bourses in europe. we have to analyze the markets. a they did go ahead with the rate cut. we are seeing more pronounced moves to the down side in germany as well as in switzerland and italy. i want to take you to the sectors because as we are digesting all of this activity on the economic front and on the central bank policy front, there is corporate earnings being released at this sta

bonds at a loss and actually costing us money, and yet there seems to be no accountability by the bank of englandis. as you say, other central banks aren't doing it. so what's happened here, john, is the bank of england out of control, is it? it's now setting fiscal policy. independence has spiralled beyond what was originally intended by gordon brown. what's happened? >> yes, indeed, because i wasn't a critic of their independent right to set the short term interest rate and to do what they do through the monetary policy committee. but that was the limit of their independence. and when brown and co wanted to print a load of money and buy a load of bonds because of the collapse, they engineered in 0809, the bank very sensibly said that this is too hot for us to handle, and we're going to send it all through to you. and we need a chancellor's signature on this. and parliament could have opened that decision up for comment if they wished to. so that continued. so all of the money printed over covid was signed off by the government, and i was critical of the latter stages of that. i agreed with the

the bank of england's target is 2%, july's figure of 2.2% is slightly above the target, and we saw whene down to target injune that the bank of england subsequently cut interest rates. they had been at the highest for a decade and a half. they brought them down just a shade from 5.2% down to 5%, and that eased pressure on borrowers, people with mortgages, loans and so on. the fact that inflation has edged up slightly and the bank is expecting it to increase a little more before the end of the year raises questions about how quickly, how soon we will see the next interest rate cut. the next decision by the bank of england is due in mid—september, so we will find out what they make of this figure when they next make their decision then. the other reasonjuly�*s inflation figures important, the other reasonjuly�*s inflation figure's important, one of the measures, rpi, the retail prices index, is normally used as a level set next year's rail fare increases, affecting the price of train tickets, normally rpi plus 1%, that would mean we would be looking at an increase in rail fares of around

i think the bank of england is aware of that which they said they will go gradually and data dependentt they are influenced by what is happening globally and what is happening with the fed, but more importantly is what happens with the uk economy. that will determine the uk story more than what is happening with the fed. >> what does this most recent cut mean for the growth and inflation outlook mean? what does it mean for the numbers on the ground here? >> i think the rate cuts are going to eventually have an effect. you have policy still fairly restrictive even with the rate cut which is a point that the bank was trying to make last week as well. in terms of expectations ahead, we agree and we expect another rate cut to come in november. we have four more rate cuts next year. i think the boe delivers less cuts with the domestic inflation we are seeing. in terms of the growth story, the data and there is still some impact of policy tightening in the system which will probably reduce over time. eventually, as the rate cuts become more aggressive, we might get more boost to growth comin

of attempted murder. also on the programme. gps in england will start limiting the number of patients the sleigh. the bankgland cut interest rates to 5%, the first drop interest rates to 5%, the first drop in four years. the bbc faces questions over why it didn't sack present a huw edwards when it learned of his arrest on suspicion of child abuse image offences. and new signs of life at the stump of the felled sycamore gap tree, giving hope it could live on. coming up on bbc news, the first days of olympic golf tees off in paris with the men playing for a gold medal went previously in the modern era by justin rose and xander schauffele a. good afternoon and welcome to the bbc news at one. we can now name the teenager charged with murdering three young girls and the attempted murder of eight other children and two adults in southport. axel muganwa rudakubana, southport. axel muganwa rudaku ba na, who southport. axel muganwa rudakubana, who is 17, appeared before the crown court in liverpool this morning full stop from there, our home affairs correspondent daniel sandford sent this. three days after the hor

we�*ll hear whether the bank of england will cut interest rates or not. bank of england keeping inflation and rates have been held at a 16 year high for the past year or so. the feeling is it could go either way today. on the one hand the headline rate of inflation, that rate of price increases, it is at the bank�*s 2% target and has been for the past two months. unemployment is a little bit higher. the number ofjob vacancies a little bit lower. 0n the other hand, when you dig into the details of the inflation figures, if you look at core inflation so strip out the volatile things like energy and food, if you look at services inflation. that is price increases for things like restaurants, hotel stays, hairdressing bills. those two figures are proving a little bit sticky, a little bit stubborn. today�*s decision is likely to come down to a judgment on whether those sticky, stubborn inflation figures, in the details, whether they are sure torrent or whether there is the worry they could hang around a little bit younger. the mood music, the economist to make

that in the world, it is lending, you don't really do lending without a banking licence with the bank of england a banking licence in the uk was important to do lending, the bank of england has a lot of credibility globally so the extent to which they want to extend to the us. it is not a slam dunk, the question is really, can they get into the lending game? it is a completely different beast by the way, it is easy to lend money but it is hard to get it back from people. that is the vision. mechanically, there is a benefit of having a licence like that so we've got this phenomenon in the uk so if you're a bank, and you get the overnight rate essentially. make a lot of money from that and it works. there is a mechanical applet from being a licence uk bank where you can park money on the bank of england and the long—term dream thank you very much forjoining us. in other business today, there has been a summer bounce in retail sales with a combination of sunshine, sporting events and summer spell persuading uk buyers to part of the cash. where wet weather saw a dip shopper spending and 1.4% compare

traders are expecting less easing from bank of england and the odds of a fed cut r 5050. shows the tightest policy rate and the rba has the loosest. there is the bank of england translating through to the pound. >>. market positioning ahead of the dater and what it did mean for the boe. thank you, indeed. 10:00 a.m. u.k. time euro area zew survey will give a gauge of the economy as markets price in 67 basis points of cuts and september is the next cut. option of german two-year debt and the big data point, ppi for july out of the u.s. and that could inform views. home depot earnings crossing stateside. vulnerability of four may be, rafael bostic speaking at an event. will he push back on the narrative? his comments could be consequential. european defense contractor comments amid the conflict in ukraine. i will speak to ceo suzanne. stay with us, this is bloomberg. ♪ ♪ tom: welcome back. zelensky confirmed forces seized russian territory. the fighting pushed prices high, although both sides will himkeep the fuel going. put it in the historical context. tony: that tells you

but for the bank of england.e first focus on the wage data, as you say, we've got a slight cooling there, that wages are going slightly less strongly than we had been seeing over the past couple of months. and obviously that comes with a mixed picture for workers. that is obviously bad news especially for those in the public sector so when we look at trends into the pandemic, public sector wages are still lower than where they were in 2021 whereas for those in the private sector, that growth has been slightly stronger. 0n the other hand there is may be some slightly better news when we look at this, you know, for the economy overall and thinking perhaps the bank of england, they might be pleased to see some slight cooling and wage growth because that might mean that it is eager to make more decisions around cutting interest rates. �* ., ., ., rates. and looking at what we have also heard in _ rates. and looking at what we have also heard in the _ rates. and looking at what we have also heard in the data _ rates.

question mark now at this stage is by how many cuts -- how many cuts are we likely to see from the bank of england the next cut could happen in november, but of course the bank of england is also going to be keeping an eye on what the fed is going to say, because if the fed moves there could be further pressure on the bank of england to also move on rate cuts. let's see. >> all eyes on jerome powell as usual. cnbc's silvia amaro, thank you very much live from london. really appreciate it. >>> and still ahead we'll talk to democratic congress member and member of the house foreign affairs committee paul keating. we'll be back in just a moment. g we'll be back in just a moment ne of the stuff it won't. our sulfate free collections smell incredible and leave your hair touchably soft and smooth. herbal essences. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting

the governor of the bank of england, the former e.u. and a member of the ecb governing committee.his to me was a seminal moment kicking off a rate cutting cycle. you did it and got ahead of it. does anything that you have heard here change your view about how quickly the ecb can go? olli: i think it has enforced confidence to the disinflationary process globally. of course the united states and its economy is central in the world economy and as jay was very clear that this is now the turning point in monetary policy and he is going to tame it. that is very clear for us europeans. even though we are not the third or -- the 13th federal district of the u.s. reserve. lisa: they say we want to but we are independent. we had the portuguese central bank and he said september is an easy call, you agree. brian: it is never an easy -- olli: it is never an easy call. as you look at data for the moment inflation is stabilizing and the long term trend. there has to be some weaker data some time ago. but now we see more convincing data concerning rates growth and we have to see the forest from

the bank of england has cut interest rates for the first time since the pandemic from 5.25% to 5%. e coming months. here�*s our economics editor faisal islam. in cardiff market, restaurant customers talk a lot about the burden of their rising mortgage bills. finally today, that has started to change. i�*m very happy. very happy, just because the mortgage has come down. mortgages, bank rates, i think it will be a bit of a relief. for the first time in four years, interest rates are now coming down. important for customers at this street food restaurant but for owner rupali and others, it might take some time to pass through. we have actually remortgaged our own house, and it was the worst time to do it, because we had such a good interest rate, but we had to release the capital for businesses to sustain. we�*ve done that and now we are stuck with a high interest rate, high expenses at the business. it was a close—run 5—4 vote in favour of the cut at the bank of england, with governor andrew bailey being persuaded now is the right time for lower rates. we�*re on a path where we will r

what will it mean for the bank of england's cautious to shift towards ricketts? ll get -- towards rate cuts? we will get more. this is bloomberg. ♪ thank you. during our biggest sale of the year, save 50% on the sleep number limited edition smart bed and free delivery when you add any base. ♪ tom: welcome back to bloomberg daybreak: europe." in about 15 minutes, we are expecting to get data showing u.k. inflation picking up for the first time this year. joining us, u.k. correspondent lizzy burden standing by. what are you going to be watching from this data set? lizzy: let me just take you back to when we had inflation coming back to that 2% bank of england target. you remember the celebrations in downing street. rishi sunak was so convinced of the economy had come back to normal that he called that snap election. today, we could see inflation rising again to 2.3% in july. this is because the helping hand of energy bill is fading out. we've already had this week a warning from the are stock on the monetary -- arch hawk on the monetary policy committee. she's been

uk inflation rising 2.2% in july after two moijts at the bank of england's 2% target. interestingly deutsche bank out with a note this hour saying the odds of a back-to-back rate cut are on the rise now. a september rate cut should no longer be off the table, they say. it's entirely possible we could get multiple rate cuts this year. there have been two on the back of these numbers. >>> elsewhere across the region, we have markets firmly in positive territory. in paris up by half of 1%. smi in switzerland up 1.64 and ftse leading regional gains. >>> here's the sector breakdown for you as well. basic resources is in negative territory, down 1.15%. extending gains by better than 3.15 as it stands. let's take you to one of the top stories. ubs has posted a profit for the second quarter, which was well ahead of expectations. the swiss lender reporting additional cost savings of $900 million as it continues its integration of former rival credit suisse. they report assets of $27 billion in its global wealth management division. silvia has been in conversation this morning. s

the bank of england have cut rates by a quarter of a percent. banks have fallen down to 5%, mark, i interrupted your prediction as your prediction became true. >> there you go. bang on the money. bang on the money. >> i think i beat the news by a fleeting second. i think, on balance, this is good news. tom. inflation is back under control. the bank of england is supposed to use interest rates to keep inflation around 2%. and it's pretty much bang on that. on that level at the moment. i would say this though, in the wider debate, we seem to have got ourselves into the ludicrous position of believing that the lower interest rates are the better. could we please cut them to 4%? 3%, go back to them being negative in real terms. that's, say, interest rates below inflation. that would be catastrophic for the economy. and i think the bank of england's failure over recent years is they were too slow to put interest rates up. so we saw inflation peak at over ii%. and they've probably now been over they've probably now been over the last year or so too slo

the bank of england once 2% inflation, this is the first time in a couple of months above target.ttle trend towards the end of the year. downward pressures, things like the energy bills continue to cause upward pressure, also the national minimum wage going up, going to the bosses and asking for pay rises. 0n the flip side, food inflation was running a 19%, it is now below the target at 1.5%, good news for the weekly shop. the big question, what impact on interest rates, the big lever to tame inflation the bankers. core inflation you strip out other factors is starting to come down now and hold steady. the monetary policy committee meets to talk about cutting rates for the first time in a long time, the help as they will do that in september again. a bit of a coin toss, looking for more dated to decide what to do, more likely to be in november. next to greece and you have probably seen the images of those huge wildfires that had been threatening the capital athens. the good news is authorities now say they have been brought under control. at least one person has died, while dozens

the important thing for investors is the services inflation in the bank of england policy alluding toowth which subsided yesterday which is a positive move but services inflation because it makes up such epic component of a rule sustainable inflation so they will be a focus and it's been around 5.7%. it will be underlying elements within the uk and us inflation data well beyond the headline which will beyond the headline which will be the big driving force for markets today.— be the big driving force for markets today. let's talk about the us, markets today. let's talk about the us, we _ markets today. let's talk about the us, we will— markets today. let's talk about the us, we will get _ markets today. let's talk about the us, we will get the - the us, we will get the consumer prices data out later as well and that could cause a wobble on wall street. what do you think? wobble on wall street. what do ou think? ., wobble on wall street. what do you think?— you think? that certainly scope for it, you think? that certainly scope for it. we _ you think? that certainly scope for it, we ha

largely behind this uptick in inflation, but it was widely forecast and remains close to the bank of england'sa long way since that huge spike we saw at the end of 2022. injuly, prices rose at 2.2% and the bank of england expects them to stay around this rate until the end of the year. but, of course, inflation is made up of more than just that one headline figure. let's look at the services sector. things like hotel prices, restaurant prices — that's been falling steadily but remains at 5.2%. too hot for the bank's liking. that's come down more than people expected today, but it's still a lot higher than the rest of the inflation basket. this is what the bank of england is really focused on at the moment, and i think that means they're going to take interest rate cuts quite gradually. it means they probably won't cut rates again in september. hopefully, though, later in the year. consumer confidence is another factor. the prices of most goods and food have come down from their peaks, but the cost of living can still feel expensive. my outgoings are quite a lot each month out of what i have in

bank of england forecasted. n the second half of this year, and only yesterday they were saying it would be 2.3%. so 2.2% isn't really that bad.so 2.3%. so 2.2% isn't really that bad. so on the other hand, you have jeremy hunt. now, the shadow chancellor, saying, you know , these good figures show know, these good figures show that labour should follow the footsteps of what the conservatives were doing in the last government. and i think jeremy hunt and probably rishi sunak as well, and certainly a couple of conservative mps who i've spoken to this morning will be thinking, hang on a minute, these figures really aren't that bad.the these figures really aren't that bad. the bank of england probably will be in a position to cut interest rates, if not now , then probably in november now, then probably in november or december , as october or or december, as october or november. as jack was saying, there , why didn't rishi sunak there, why didn't rishi sunak wait a little bit longer to hold the general election? then

that number is precisely the bank of england's target for a healthy economy. that leave the state of the economy and the likely path of interest rate cuts? joining me now is jackie bowie — head of europe at chatham financial. thank you forjoining us. it is a rise in inflation but not by as much as some had expected. is it cause for alarm? as some had expected. is it cause foralarm? it as some had expected. is it cause for alarm?— for alarm? it doesn't seem to be. this low price _ for alarm? it doesn't seem to be. this low price you _ for alarm? it doesn't seem to be. this low price you have _ for alarm? it doesn't seem to be. this low price you have seen - for alarm? it doesn't seem to be. this low price you have seen was| this low price you have seen was predicted and much of that has come from what we

inflation came down quicker to england's target, we will see an advance back, we have already seen a bit of a bounce back injuly, but as has been said, it looks like the bankol in the uk as well, so the common thread is that both central banks have inflation pretty much under control now and the next moves on interest rates will continue to be down in the uk, and are likely to be down in the us. and of course geopolitics has a big impact, especially energy prices, on what happens with inflation, so to what happens with inflation, so to what extent to the situation in the middle east influence situations in the us and and elsewhere in the world was to mark that is the risk at the moment?— world was to mark that is the risk at the moment? that is the risk of the moment. _ at the moment? that is the risk of the moment, if— at the moment? that is the risk of the moment, if iran _ at the moment? that is the risk of the moment, if iran decides - at the moment? that is the risk of the moment, if iran decides to - the moment, if iran decides to attack israel, the houthi rebels in yemen are encouraged to attack and shut down the canal again, that me contributes a m

it was a close—run 5—4 vote in favour of a cut at the bank of england, with governor andrew bailey beingove this persistent element of inflation, as we expect we will, by the way — we're not expecting anything else at the moment. over time, therefore policy will become less restrictive, so rates will come down, but i'm not going to predict when and how much, because that depends on events and how it unfolds. is it mission accomplished in terms of the inflationary dragon being slayed? it's an encouraging step forward. you're right, it is an important moment in time. it's a welcome moment in time as well, but it's not mission accomplished yet. interest rates were cut back today for the first time since the pandemic, having risen 14 times as prices surged. that has helped overall inflation, in blue here, fall sharply back from the energy shock to the official target of 2%, but some on the committee are still worried about inflation in services, like restaurants and hotels, in red here, proving sticky. after a really difficult three—year inflationary shock, a significant turning point today.

so it's considered to be better news overall, and also the bank of england will be very encouraged bylled core inflation which strips out those volatile food and fuel prices is that dipped back and fuel prices is that dipped back and also we had a much sharper than expected fall in services inflation as well. however, it doesn't necessarily mean that we are going to see another interest rate cut in september, it is likely still to be caution because the headline rate hasinched caution because the headline rate has inched up but financial markets are pricing into more interest rate cuts by the end of the year. it will be welcome news particularly for borrowers. be welcome news particularly for borrowers-_ be welcome news particularly for borrowers. ~ , , . ., borrowers. absolutely right. what does this mean _ borrowers. absolutely right. what does this mean for _ borrowers. absolutely right. what does this mean for people - borrowers. absolutely right. what does this mean for people day - borrowers. absolutely right. what. does this mean for people day today, there will still be people

it was a close—run 5—4 vote in favour of a cut at the bank of england, with governor andrew bailey beingstent element of inflation, as we expect we will, by the way — we're not expecting anything else at the moment. over time, therefore policy will become less restrictive, so rates will come down, but i'm not going to predict when and how much, because that depends on events and how it unfolds. is it mission accomplished in terms of the inflationary dragon being slayed? it's an encouraging step forward. you're right, it is an important moment in time. it's a welcome moment in time as well, but it's not mission accomplished yet. interest rates were cut back today for the first time since the pandemic, having risen ia times as prices surged. that has helped overall inflation, in blue here, fall sharply back from the energy shock to the official target of 2%, but some on the committee are still worried about inflation in services, like restaurants and hotels, in red here, proving sticky. after a really difficult three—year inflationary shock, a significant turning point today. they raised i

as further increases in unemployment. often speech. pablo, how talks with the governors of the bank of england and bank of canada, both have recently caught interest rates as has the european central bank. over the summer, we saw inflation return to normal. and now interest rates are coming down. our books are the envy of the developed world. the dollars globe or reach means that if the fed does come rates next month, it could amelia rate, a global slowdown, and help ease the cost of living crisis that continues to impact consumers. and the consumption grief, obviously for counting the cost as well. now here is a highlights of the week why do central bank set the interest rate target up to percent of the idea of which an h from a comment made by full magnesium finance minister roach of douglas in 1988. he said he wanted the inflation rate to come down to between 0 and one percent. for 20 years. the country had been struggling with double digit inflation, the bank of using and then made it a special government policy bought extend at the target range to 2 percent in 1991 . the bank of canada fo

special, an expert within the bank of england. >> as far as i'm concerned, the more experts weury, the better. heaven knows the country's in a bad enough state bank of england has got everything wrong. >> that's slightly different. >> that's slightly different. >> well, i think that's maybe a subject for another debate, but all the more reason for getting people from the bank of england in, you see, the high mindedness of starmer that i'm not against people being appointed politically. >> i'm not against prime ministers using patronage. that's part of the job of a prime minister but starmer was so high minded about it. and why hasn't he given authority to salary, which he could do now? he could do before we finish broadcasting to do these independent inquiries. >> i mean, you know, i'm sure he will, because in all honesty, he's promised to actually bring this sort of the disinfectant of sunlight. >> it has fallen back on that classic politicians delaying tactic, the doctrine. well he can't save time. >> i'm sorry. >> i'm sorry. >> he could have done it today. i'm sorry. >> he's

the numbers and including the bank of england have been pleasantly surprised by the numbers. don't think that's necessarily sustainable. today's data, for example, there are big figures in net trade and stock trading. the consumer spending numbers are quite disappointing. we know uk households have been ramping up excess savings. that hopefully is a cushion into the second half of this year for the bank of england, they made this tentative foray into cutting rates. i think they will feel justified that they made that move even though inflation has partiparticular particulared ticked up we've always said this is policy normalization and not talking about deep recession risks that require an aggressive response i think the same applies >> very having thank you for the conversation hetal meta at st. james's place. >>> when we come back, stay with us, officials in doha set to embark on the gaza peace talks today. we will discuss that and other issues on the radar with tina fordham from fordham global insights we're back in two minutes. what is cirkul? cirkul is what you hope for

we will bring you the conversation with the bank of england governor here at 4:00 p.m. ndon time here on cnbc with steve. >>> before we wrap up the show. a quick check of the european markets as we close out thursday for "street signs." the dax is off by 1.3%. the automakers, of course, with disappointing numbers from vw and bmw and daimler truck. a lot of china weakness is what we hear from the companies. elsewhere, we see red arrows. switzerland is not trading today. closed for a public holiday. when it comes to the u.s. futures, we still have a couple hours to go. the s&p 500 could ekk out a modest increase. the dow jones up 48. the nasdaq up by 11 points. na nasdaq jumping yesterday. that's it for today's show. i'm carolin roth. "worldwide exchange" is up next. see you tomorrow. bye-bye. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement

the bank of england will reveal its latest decision on interest rates today, with millions of mortgageclose eye to see if the base rate will be cut for the first time in more than four years. let�*s speak to our money and work reporter, peter ruddick. what is the feeling leading up to this announcements? it genuinely feels for the _ this announcements? it genuinely feels for the first _ this announcements? it genuinely feels for the first time in - this announcements? it genuinely feels for the first time in a - this announcements? it genuinely feels for the first time in a long i feels for the first time in a long time like today�*s decision could go either way. a reminder, interest rates at the bank of england�*s way of keeping inflation, the rate of price rises, under control. the rate has been held at a 16—year high for the past six years or so. the feeling sick go either way today. one of the factors were looking at, on the one hand, the headline rate of inflation, the right of price increases is at the bank�*s 2% target and has been for the past six months and has been for the pa

we will see how that ties into a relative picture posting a conundrum for the bank of england as markets price in the next guide coming through in november. 11:45, earnings crossing from walmart, the biggest retailer in the u.s. a gauge on the health of the consumer and to what extent there is more caution trickling into the u.s. buyer. 1:30 pm, we get the broader picture on retail with retail sales, u.s. retail sales, an important gauge of the u.s. consumer. mediators open new round of gaza truce talks can ease tensions in the middle east, but with hamas representatives not due to attend, what of the actual prospects for the deal? a south african mining company has released first half earnings reporting a drop in operating profit. we will speak to the chief operating officer later in the show. this is bloomberg. ♪ tom: welcome back to "bloomberg daybreak: europe." mediators from the u.s., qatar, and egypt are said to meet with israeli negotiators in doha in a fresh attempt at striking a gaza cease-fire deal. let's bring in our bloomberg news director all those this. what is the likeliho