alongside mr hammond today, the governor of the bank of england.t brexit was likely to make people poorer and that there would need to be a transition period after the completion of the brexit process in 2019. a monetary policy committee cannot prevent weaker growth that is likely to accompany the transition to new trading arrangements with the eu. it can support households and businesses, as they adjust to such profound change. two great economic offices of state. here is the bank of england, and about two miles down the road that way, the treasury. and the leaders of those two institutions, i think, came together today to make one big point about brexit. put the economic wealth of britain first, they both said. even if that means some sacrifices on most controversial issues of sovereignty and strict controls on immigration. the city may support that position. but from mr hammond's on colleagues, a reminder of why many voted brexit onjune 23rd. we want to ensure that business gets access to the labour that it needs, but there is also a strong worr

mr hammond can't deliver on the war of words, possibly. very thing.h, we will be a cross that here on the bbc. we have to move on. the credit ratings agency moody's has downgraded 12 australian banks, including the country's four largest, blaming elevated risk in the housing sector. rico hizon is in our asia business hub in singapore. isa is a bubble about to burst? hope the lynott. that's why we have seen the major ratings agency doing everything they can to downgrade some of the major banks in australia. —— hopefully not. we have seen real estate prices in australia almost doubling from levels in 2009. that's why moody's has downgraded the big four banks. anz, commonwealth bank, national australia bank and westpac by one notch, together with the eight other smaller banks. share prices of australia's big four banks are currently falling in sydney trade by around .5% — 1%. fitch earlier this year lowered its outlook on the sector but left ratings unchanged. it was moody's that was quite aggressive with they get downgrade. —— with their downgrade. the

in particular mr hammond called for a "jobs first" settlement.mmigration to be managed but not shut down altogether. labour says the chancellor is distancing himself from the prime minister's tough line on brexit, accusing the cabinet of being in disarray over the issue. the chancellor's comments come on a day when the governor of the bank of england has warned of the risks of the brexit negotiations. here's our economics editor kamal ahmed. a year ayearon a year on from the referendum and ca i’s a year on from the referendum and cars waiting in sunny southampton for a journey to the continent of europe, exports to the european union like these are a key driver of oui’ union like these are a key driver of our economy, an economy that the chancellor said would now be at the heart of those complicated brexit negotiations. speaking at the mansion house in central london philip hammond said without a flexible deal with the eu the economy could be at risk. when the british people voted lastjune and they did not vote to become poorer or less secure. th

mr hammond is hoping to calm fears of an abrupt shift in relations between the eu and uk.and customs union, but insists it should reach a deal that allows british goods to flow without tariffs, delays and bureaucracy. and he stresses it would be "a very, very bad outcome" if no deal was reached. that's despite the prime minister theresa may's mantra that no deal is better than a bad deal. one of the biggest issues, of course, is immigration and the chancellor says that while the uk seeks to manage migration t doesn't wa nt to seeks to manage migration t doesn't want to shut it down entirely. we are not about to turn inward, but we wa nt we are not about to turn inward, but we want to make sure that the arrangements that we have in place work for our economyjust as arrangements that we have in place work for our economy just as the british people understand the benefits of trade so too they understand how important it is to business to be able to access global talent and to move individuals around their organisations. so while we seek to manage migration, we do not seek to

mr hammond and mr carney spoke about struggling consumers are weary of austerity, and shoppers todayitted that they were feeling the pinch. i think things maybe are going up in price a wee bit, and obviously if wages aren't going up, people will be feeling the pinch that bit more. at the moment, i haven't really seen much of a difference, there is a lot more offers and things in supermarkets. i think they have gone up, they don't match wages, to be honest. higher prices, brexit, the need for a good deal. there were plenty of warnings today but the economy has been far stronger than people expected since the referendum. i don't think there is any doubt that since the brexit referendum, the pound has fallen. now, it is a glass half full or half empty. clearly, that has meant there is higher inflation, and that has had a knock—on effect for real incomes, but on the other hand it has been a much—needed boost to exports, we really needed that boost because the currency was overvalued. it was a day for stepping back and taking the wider view on the economy. an economy for consumers so unce

democrats, and mr hammond's position that he's outlined? lot of people in the labour party who can see the potential disasters of going into a really hard, disruptive, extreme form of brexit and ourjob is to reach out to them and find ways of achieving compromise. so where might those compromises come? let's look at honda's factory in swindon. it's the european single market in action. everyday 2 million components are delivered here, many of them from across europe with no hold—ups at the border. if we leave the customs union it could spell trouble for some. we don't want our components stuck abroad, we don't wa nt components stuck abroad, we don't want ourcar is components stuck abroad, we don't want our car is going to europe stuck on this side of the channel. it's keeping that free flow of product going. one compromise would be to stay in the customs union where goods can cross borders within the eu without import taxes. but that's not government policy at the moment. it wa nts government policy at the moment. it wants out. for me it's

isn't theresa may, the buck stops with her, she's the prime minister, shouldn't she be saying, mr hammond's my way oi’ mr davies, mrjohnson, it's my way or the highway, hard brexit or soft brexit? but you can't do that. this is the issue, our authority has been fatally undermined. she's still the prime minister, the leader, make a decision! our authority has been undermined. the one irony is her biggest weakness is her biggest strength. nobody else at this point wants to take over. it is a poisoned chalice. i can see the real crunch points coming for it, either at co nfe re nce points coming for it, either at conference or when you have got through the divorce proceedings. at the moment nobody wants to touch it because it is so difficult and there are no easy answers. onto the financial times, no easy answers for the scottish as well, or at least for the snp, henry. the scottish as well, or at least forthe snp, henry. some the scottish as well, or at least for the snp, henry. some are suggesting that nicola sturgeon‘s announcement today that she is not going to push for a second independe

alongside mr hammond today, the governor of the bank of england.as likely to make people poorer and that they would need to be a transition period after the completion of the brexit process in 2019. the monetary policy committee cannot prevent weaker real income growth that is likely to accompany the transition to new trading arrangements with the eu. it can support households and businesses as they adjust such profound change. the two great economic offices of state — here is the bank of england, and about two miles down the road that way the treasury, and the leaders of those two institutions, i think, came together today to make a big point about brexit up of the economic wealth of britain first, they both said, even if that means some sacrifices on those controversial issues of sovereignty and strict controls on immigration. another port, another city, belfast. mr hammond and mk carney spoke about struggling consumers are weary of austerity, and shoppers today admitted that they were feeling the pinch. i think things maybe are going up in price

mr. hammond in berlin it yesterday, -- berlin yesterday, talking about an internal party event?ertheless, it does seem as if mr. hammond is taking his message to berlin, not just talking about what he sees as a future for brexit here in london. i think it makes sense for him to look specifically at berlin. that has been the strategy of many in the u.k. over the last couple of months to look at berlin when it comes to finding an ally potentially for a softer brexit. i think the germans are willing to listen to that, to take these voices into consideration. the biggest problem at the end of the day is the conversation of domestic u.k. politics, whether people like hammond can prevail. his definition of a softer brexit merely means to avoid a cliff edge. if you take a look back, it meant continued membership in the government, that seems off the table. i do not think the situation has necessarily improved. guy: can i ask you -- and this is all related -- mr. macron is going to unveil his labor market reforms in france. let us deal with those first of all, and talk about the wider p

mr hammond also said that immigration would be "managed but not shut down". with fraud in connection with a deal to raise investment from qatar at the height of the financial crisis in 2008. gerard coyne, who stood against len mccluskey to be leader of unite, has been sacked by the union. he says he is "deeply disappointed, but not surprised" at his dismissal. a review into the murder of toddler liam fee, has said there were "missed opportunities" which could potentially have prevented his abuse. he was murdered by his mother and her partner in fife in 2014. the family of the man alleged to have carried out the finsbury park mosque attack say they are "devastated" and "massively shocked." 47—year—old darren osborne was restrained and arrested at the scene. and for the fourth consecutive day, the temperature rises to over 30 degrees in some parts of the uk. sizzling britain. let's get all the latest sport now with hugh. british number onejohanna konta has reached the second round of the pre wimbledon event in birmingham as she attempts to become the first brit

mr hammond also said that immigration would be "managed but not shut down". with fraud in connection with a deal to raise investment from qatar at the height of the financial crisis in 2008. a review into the murder of toddler liam fee in fife, has said there were "missed opportunities" which could potentially have prevented his abuse. he was murdered by his mother and her partner in 2014. the family of the man alleged to have carried out the finsbury park mosque attack say they are "devastated" and "massively shocked." 47 year old darren osborne was restrained and arrested at the scene. and for the fourth consecutive day, the temperature rises to over 30 degrees in some parts of the uk. very, very hot, much too hot for playing tennis. let's get all the sports news, here is hugh. thank you both, a little bit of air conditioning would be relevant to tennis grounds across the country. but first, and a jew—macro has been accused of tax evasion from his time at real madrid when he was manager from 2010-2013. it's at real madrid when he was manager from 2010—2013.

the international trade minister, liam fox welcomed mr hammond's speech but said that people who wantedpolicy ahead of economic policy were losing the argument. have a balance that is in the best interests of the country. clearly we want to ensure that business gets access to the labour that it needs but there is also a strong worry amongst people in britain that people are coming to united kingdom and using our public services who may not be contributing to our national wealth. that is the problem that our government will deal with and will deal with that in a reasonable way over a period of time. voting in the most expensive election in the history of the us house of representatives has just finished. parties have spent around $55 million in the battle for a traditionally republican area of the state of georgia. it's being seen as a test of the party's strength under the trump administration and a sign of whether it can keep its majority in next yea r‘s mid—term election. oj simpson, the former american football star and film actor, could be given a prison release date next month. a p

in a tv interview mr hammond criticised his own party's general election campaign, which focussed heavilyly has a story about an unlikely energy source: combustible ice. it says reserves of gas hydrate could represent a major breakthrough in clean energy. finally the gulf news reports on the ongoing fallout between qatar and its regional allies, some of whom have accused it of sponsoring extremism. it says the spat could affect the fifa world cup, that's scheduled to take place in 2022. in france, president emmanuel macron's new party has won a big majority of seats in parliamentary elections. lucy williamson reports. two months ago, this result would have stunned france, more than 60% of parliament won by a party that a year ago did not even insist. the only surprise today that they didn't win more. proof of how much mr macron and his party have reshaped french politics. translation: you have given a clear majority to the president. this majority will have the mission to act for france. the majority of french people have preferred to choose hope over anger, optimism over pessimism, and t

in a tv interview, mr hammond criticised his own party's general election campaign, which focussed heavilychina daily has a story about an unlikely energy source, combustible ice. it says reserves of gas hydrate could represent a major breakthrough in clean energy. finally, the gulf news reports on the ongoing fallout between qatar and its regional allies, some of whom have accused it of sponsoring extremism. it says the spat could affect the fifa world cup, that's scheduled to take place in 2022. those are the top stories around the world. the united nations has called on thailand to amend the harsh law against insulting the monarchy. the office of the un high commissionerfor human rights said it was deeply troubled by the high rate of prosecutions and the disproportionate sentences for the offence. the un said that since the military coup in 201a, the number of people investigated for violating the lese majeste law has risen to more than double the number investigated in the previous 12 years, and that only a% of those charged were acquitted. trials are routinely held in closed session,

earlier, i spoke to our political correspondent susan mendonca and asked her if mr hammond's commentsthe conservative government on how to negotiate brexit. we have heard time and again theresa may talking about no deal being better than a bad deal and here we have the chancellor talking about how a no deal would be a bad outcome for britain. that is not what we hear from for britain. that is not what we hearfrom some of for britain. that is not what we hear from some of the other members of the cabinet and we also heard philip hammond talking about how he wa nts philip hammond talking about how he wants some kind of transition structure so that you would have a slope rather than a cliff edge. others have talked about going over the cliff edge is not something to be that concerned about. differences there in the cabinet ahead of those negotiations tomorrow. we have the chancellor's reaction to that election campaign which were supposed to strengthen theresa may's position. philip hammond, he was not particularly involved in the campaign but we now find that was not the role he wanted

mr hammond has been at pains to calm fears of an abrupt change to relations between the eu and britaine in a way that "feels as close as possible to the way it feels now". he acknowledges the uk will leave the single market and customs union but insists it should reach a deal that allows british goods to flow without tariffs, delays and bureaucracy. and he stresses it would be "a very — very bad outcome" if no deal was reached. what kind of boiled egg is he offering the community? that's despite the prime minister theresa may's mantra that no deal is better than a bad deal. we will have that discussion in world business report. the paris airshow, which is taking place this week, is best known as an aerospace industryjamboree — dominated by the multi—billion dollar deals announced by the big beasts of the sector. but smaller companies are there too. and some of them have rather imagina which just might take flight. in wbr we'll take a look at one gadget which promises to help car driversise above the trafficjams. yes, it's true. the flying car is finally here. don't miss that in 20 minu

mr hammond also said that immigration would be managed but not shut down.bier, who had been detained in north korea for more than a year and a half, died on monday. people are advised to seek shade and stay hydrated as the heatwave continues. another very latest sport. hello. the lions have won their final match before the first test against the all blacks on saturday. warren gatland insists there are still places up for grabs in his squad for auckland. so there was plenty of motivation for the so—called midweek side in hamilton this morning agianst the chiefs. jack nowell spotting a gap to score the first try of four tries. the lions dominated up front again. then in a slightly more expansive move, jack nowell again found space for his second try of the match. jared payne went over to complete a 34—6 victory. the lions' most emphatic of the tour so far. we understand that andy murray has pledged to donate any winnings from this week's queen's tournament to families of the victims of the grenfell fire tragedy. and that could be as much as £350,000. the worl

speaking before a meeting in luxembourg, mr hammond said the government would take a pragmatic approachike a different tone to the prime minister, who has argued that no deal is better than a bad deal. a man has been arrested outside the houses of parliament on suspicion of possessing a knife. 0fficers used a taser when they detained him — there were no injuries. the incident happened by the main carriage gates entrance — close to where constable keith palmer was stabbed and killed during the terrorist attack in march. the two soldiers who died in an incident involving a tank at an army firing range in pembrokeshire have been named. corporal matthew hatfield and corporal darren neilson served with the royal tank regiment. two others were injured at the castlemartin range on wednesday. live tank firing exercises have been suspended while an inquiry continues. british airways cabin crew are to stage a two—week strike in a long—running dispute about pay and travel concessions. members of the unite union will walk out between saturday 1st july and sunday 16th july — during the peak holiday

mr hammond said he wanted to see an brexit that supports jobs and investments.ut an brexit that supports british jobs, investment and businesses, i mean a brexit that avoids cliff edges. we segue from a customs union to an organisation that will allow british goods to flow not just without tariffs, but without delays and bureaucracy. it is the delay and the bureaucracy. it is the delay and the bureaucracy interfering with just—in—time supply chains, with the flow of fresh produce, which we importa flow of fresh produce, which we import a huge amount of from the european union. we need to ensure that it continues to work seamlessly, which is probably the numberone seamlessly, which is probably the number one challenge. keir starmer said that membership of the customs union should be one of the options considered by the negotiation team. he criticised the prime minister said leading the uk into the worst possible situation ahead of brexit talks. the prime minister has got us into a mess. she has no mandate here and no authority abroad, and negotiations start tomor

mr. hammond should take the opportunity to make the counter case a lot of talk about whether theresa maymake it the next week or year. and phillip hammond is a name that may be considered for the most part theresa may seems stronger than she did 24 hours ago. >>> my pick is titled the trump budget still short changes the military since 2010 the defense budget has been cut by more than 20%, but the world has not become 20% safer. to get planes, ships and equipment ready to deploy to the middle east, the military has had to take parts off of other planes, ships and units. this has diminished america's readiness. the american military is not ready to carry out missions it may be asked to do in times of war. this may be a discussion as the secretary of defense, jim mattis heads to the hill. he is testifying in front of the senate where trump's proposed defense budget will be the topic of discussion. >> jeff sessions will be in focus this week. one would say after the huge focus on various testimonies last week, there's more economic data to focus on this week and the fed meeting, so we can h

mr. hammond, who thought he would lose it if may got an overwhelming mandate, he will make his speech and mr. carney as well, important in the brexit vote last year. then you have monday. monday the 19th. absolutely massive day. i will tell you why. one, you have the queen's speech. the queen's speech? who listens to that. listen to it. you want to see how much of the may/tory manifesto has been shredded and has even made it to the government plan for parliament and you have the small matter of the brexit negotiations starting. if you're confused on this side of the channel, can you imagine how they feel about it in brussels? i feel so sorry for some because they have no idea where the brits are coming from. >> steve, thank you very much for that. joining us is lord francis mode, steve raced a lot of interesting points. mr. osborne said theresa may is a dead woman walking. can she survive this week politically? >> she can survive the week and some months, but i don't think a single person believes s s that will lead the conservatives into the next election. at some stage she will resign a

i'm sure that mr hammond will make his speech in the next few days.eir lowest level for four years, which shows that income squeezed that people have been suffering because of higher inflation is really with this. one other significant moment is that the bank, although it has held interest rates at the historic low levels that they've been up since the financial crisis, it was the closest votes raising those interest rates that we've had in ten years. just 5—3 votes, very close, the suggestion being that interest rate rises because of rising inflation could be coming. any rise will be limited and gradual, but the bank is signalling those historic low interest rates could be coming to an end. kamal ahmed, many thanks. theresa may has been meeting the main political parties of northern ireland at downing street to try to reassure them that a proposed deal between the conservatives and the democratic unionists wouldn't affect the prospects of restoring power—sharing at stormont. the prime minister hopes to secure the support of the dup to give her govern

speaking in germany mr hammond warned against petty politics getting in the way of the economic interestsse borrowers default on their loans. it's being ordered by the bank of england which is worried some lenders have become a bit too relaxed about lending. the european commission has fined the company that owns google more than £2 billion for illegally promoting its own shopping services in search results. it's the biggest ever such fine handed out by the commission. helal miah is from the share centre. thank you forjoining us. let's start with google. does this play into the narrative of those who say that european regulators really focus quite tightly on american companies? well, the europeans aren't really saying that. they're focussing on the competition related issues, but google have already said that. this is political. and no doubt you're going to have somebody like donald trump tweeting later on saying that it is political, but going forward, this is a big issue for google. yes, 2.4 billion is a huge fine k but for google, it is tiny. the bigger issue for them is the earnings t

mr. hammond had to say, and i did not hear him refer to theresa may or the government. they sounded like he was in charge. simon: this is what you hear as a complaint. who is in charge of the government? was davidthe problem davis might be the first to negotiate -- to identify is the and the othersr have a freelance on brexit. after the election, theresa may not quite the powerful prime minister she was thought to be before the election, and they all seem to be chipping in with their view of what brexit should be. reason towe have any believe david davis is shifting away more toward growth, more toward jobs, and more toward the financial community over london? simon: this is all in the manifesto, which is a piece of work where everything can come from brexit, this great deal of promise. it is which sends the focus on within that document? david davis has played what we call a straight that at the moment -- straight ba att the moment. and end-allents points to a hard brexit. those of the negotiation stick with forll a wild. this would not be a thing that changed overnigh

mr hammond support the position that mrs may set out on the position that mrs may set out on the ecjr party which said they would be leaving the single market and the customs union. he may have disassociated himself with it, but the labour party ma nifesto with it, but the labour party manifesto was that, for the good reason that the official labour position and the official conservative position is we want to have lots of trade arrangements that improve our trade with the rest of the world and you cannot do that if you're in the customs union or the single market. we don't need these lies from labour. it is in contradiction of the dup's position. 0n the single market, i mean i agree there is a debate going across parliament on this and we're seeing a lot of the more pragmatic sensible wing of the conservative party coming toa wing of the conservative party coming to a position... talk about your own party. there is a debate within the labour party, i recognise that. my position is that this is all about a transitional deal. there is no way that we're going to get the details of the

bill hamid element of the stories, but buried at the bottom, this notion that mrs may has not clearly endorsed philip hammondhe treasury. ask if she can guarantee that he will remain chancellor, she says, once again, i think philip hammond is doing a very good job as chancellor, which is what you said ina chancellor, which is what you said in a press conference. and he has not been seen since! well, they are all volunteers! will tread carefully with the daily mirror, this is an active case, the tory mp charged over an election expenses, craig mackinlay standing in south thanet. without talking about the details of this, because it is active, how much ofa this, because it is active, how much of a problem could this be, or is it just a distraction for the conservatives? probably just a distraction, and to be fair, the co nte m pt distraction, and to be fair, the contempt laws will protect the conservatives, because there cannot be much discussion about it until proceedings have been concluded. equally, i think the timing is pretty appalling, they have been wanting this to be the only headline about it for now,

mr. philip hammond talked about several months ago. will they look at it again?> you would certainly think so. it did not seem to go down very well. it was always obvious the reckless austerity was going to have an impact. is what it seems to form. hand andakened may's the negotiations. disappearsard brexit overnight. but sitting at the central bank, mark carney will say, oh goodness me, what is coming next? excitement over the next 24 hours and my suspicion may may not to there by the end of the week. well be right. that was then but coming forward, the u.k. government does not have more money to distribute than before? , wey branchflower: well will see. the austerity has not worked out very well. was, and willent balance the budget and remove the deficit, how did that work out? if it did not work out very well. it appeared to be very rich practice that's what labour did, giveaway stuff seems to have been pretty popular. it is certainly clear the u.k. government can borrow at low rates and probably should. that is the reality. you can borrow at historically low

movement of personnel within mrs may's top team and the announcement that senior figures like boris johnson and the announcement that senior figures like borisjohnson and philip hammondaying in post. what tells you is the very wea k post. what tells you is the very weak and authority that mrs may has. she can do nothing that would upset mps or other senior figures within the party because of the fact that after that very surprising election result for the party, she really does not have the political authority to make such moves and has to shore up her position. one of the eye—catching points of this reshuffle is that michael gove has made a comeback. he is the environment secretary. firstly, mr gove a few years back on the david cameron's premiership had a public spat with mrs may over extremism in schools when he was the education secretary and she was the home secretary and she was the home secretary and she was the home secretary and after the eu referendum, when there was the leadership race to see who would become prime minister, mr gove have supported boris johnson's bid become prime minister, mr gove have supported borisjohnson‘s bid or the way through until

cunard — which owns the liner — says mr wheatley is now safely on board and on his way to canada. the tv presenter richard hammondbeing involved in this car crash in switzerland. the 47—year—old — who climbed out of the vehicle — suffered a fractured knee and was flown to hospital. with all the sport, here's karthi gna nasegaram at the bbc sport centre. good evening, clive. "phenomenal" and "crazy" were two of the words used by scotland and england's teams to describe their qualifying game for the 2018 world cup. it ended in a 2—2 draw, but the drama was provided by the three goals scored in the final six minutes. david ornstein reports. come on, scotland! a rivalry dating back to 1872, each encounter laced with anticipation. security was increased following recent terror attacks and before kick—off, a minute's silence in memory of the victims. this was a match scotland had to win, something they had not done at home to england in 32 years and which looked unlikely as the visitors applied the pressure. that pressure told after half—time, when alex oxlade—chamberlain came off the bench to make an immediate impact.

the reason the likes of philip hammond now feel emboldened to speak out publicly in this way is in part because mrsls after the election, but also because business is beginning to flex x muscles. —— because mrs may is enfeebled after the election. car manufacturers are saying, just take it easy about leaving the single market. the trouble, though, with arm wrestling is that it can take some time to wear down your opponent. so it may be a while before we see who the winners and losers in this tussle in the cabinet over brexit. —— to see who are the winners and losers. thanks very much. police are continuing to question a suspect after a van mowed down worshippers at a mosque. yesterday morning's attack, with others in recent months, have led to renewed calls to reverse cuts to police funding. daniela relph reports. the flowers and messages closer finsbury park mosque. they are words of defiance, of unity. overnight, 2a hours after the attack, worshippers returned to the mosque. the regular rhythm of prayer during ramadan was unbroken, despite the violence of the night before. the attack he added to

hammond on the customs union. and, michel barnier, how confident are you that you will still have mr davies to talk to over the next six months, given the fragility of a british government that has to rely on loyalists in northern ireland? how flattering. let me deal with that. we have dealt with it once already, but the treatment of the northern ireland issue, the republic of ireland issue is by no means second—class. just the reverse, it has been dealt with by the most senior people in ago negotiating teams. that is... we are starting it now, not because... we hope we can get a reasonably fast resolution. in northern ireland, that will take some considerable time. very compact, very sensitive and as michel barnier has already said, is one we take its really seriously. has absolutely nothing to do with any negotiations inside the house of commons. let me on this pointjust reaffirm the fact that we have begun at the highest level. the british promise's adviser, my deputy in these negotiations. i think this shows its own right we put on this issue. given the range of the technical issues at stake, i think it is very

i think it is simply, mrs may cannot move any of the big beasts, even the signs were that she did want to move philip hammonduse she risks antagonising people and making potential enemies, and then the whole pack of cards could come down. so, she is basically weakened to the extent that she cannot now form the cabinet that she wants to form. and i think, we got a further sign of that yesterday, when we had that statement in downing street, which many tory mps thought failed to appreciate and recognise the scale of what had happened and the personal rebuttal she had suffered. there was no acceptance of responsibility. and then in the afternoon, we had another statement, afternoon, we had another statement, after she had met tory mps and i think been told by them, that was not good enough, and we had a ,. ifz'ii m ti foot. 5 e’t’” is ejééfi’; at. one % is ejééfi’; as. one of! is ejééfi’; 95 one of the ez' ' '% points is advisers, nick 9.9.9.7 ,,, ~ ~ advisers, nick timothy 9.9.9.7 ,,, ~ ~ advisers, nick timothy and a”? ,,, ~ ~ advisers, nick timothy and fiona ,,, ~ ~ key advisers, nick timothy and fiona hill. a l

mrs may, and he can speak to people, which is a great criticism of her. one person they were allegedly route it was the chancellor, philip hammond, and he seems to have emergedit. precisely. that was the expectation in the past few weeks, that he would be toast after the election, the way that theresa may would not confirm that he would be there as chancellor. he is probably quite a happy man at the moment. let's look at boris and what all this means for him. we have the mail on sunday saying, boris is set to launch bid to be prime minister as may clings on. this morning, he has put out that this is tripe. the more he says that, the more convinced i am that he will run. it is like when michael heseltine said he could not foresee circumstances where he would stand against mrs thatcher and then the next week he did. there is also, apparently, an anyone but boris campaign going on. there is a sense that he is flaky and unreliable, those things that michael gove, as he flagrantly stabbed him in the front and back la st stabbed him in the front and back last year... and the site! and the head and everything, he said he was not reliable. those allegations will res

mr redwood or his fellow anti—austerity campaigners? there is nothing really very unusual about the fact that our chancellor philip hammond has set himselfy explain when he is able to borrow money, why and how much. it is very unusual, though, about his fiscal plans is that he doesn'tjust intend to meet his fiscal rules, he intends to smash them. so in fact if he really wants to spend more money without raising taxation, he has actually got loads of room to do it. the fiscal rule that matters most is that the underlying fiscal deficit should be no more than 2% of gdp by 2021. the government's current plans imply that the deficit will be 0.9% of gdp in that year. so that means it could borrow i.i% of gdp more in that year to spend without raising taxes. that's about £23 billion a year more spending. because you would want wiggle room to cope with a shot. at the moment it looks like there is lots of headroom but that economic uncertainty is uncertain, to put it mildly, in a position where they are not scrabbling to make cuts in 2020 because for example the economy does for argument‘s sake, though, let's say you wanted use up much of that £

mr nawaz. you are watching bbc news. in a moment, a summary you are watching bbc news. in a moment, a summary of the business news, but first, the headlines. the chancellor, phillip hammond eu in a way that will boost british business and jobs. police are continuing to question a a7—year—old man after a van was driven into a crowd near a mosque in north london. the former liberal democrat cabinet minister sir vince cable is to stand for the leadership of the party, saying he has the energy and enthusiasm to succeed tim farron. is. -- is. —— the business news now. four former bosses of barclays have been charged over allegations of fraud — after the bank raised £7bn from qatar at the height of the financial crisis. the serious fraud office is investigating payments made to qatar and a loan facility it offered the country. failure to agree a good deal with europe could permanently damage britain's are making industry, a warning from the industry body. it says car—makers would face a cliff edge and be hit with the new tariffs, charges and delays. many of our car makers are foreign—owned, but they employ thousands of staff in the uk and account for a significant share of exp

unchanged, including the chancellor philip hammond, foreign secretary boris johnson and home secretary amber rudd. she only just held onto her seat by 346 votes. mrswho have 10 seats at westminster. their leader, arlene foster, says she'll begin talks with the prime minister. but there's speculation about what the dup might demand in exchange for its support. the labour leaderjeremy corbyn has exceeded all expectations, gaining 29 seats and winning 40% of the vote. that's the biggest increase in the share of the vote by a labour leader since clement attlee in 1945. jeremy corbyn says labour is ready to form a minority government. we are ready to do everything we can to put our programme into operation. there isn't a parliamentary majority for anybody at the present time. the party that has lost in this election is the conservative party. the liberal democrats now have 12 seats — up four on their total in 2015. but their former leader, nick clegg, lost his seat in sheffield hallam. it was a bad night for nicola sturgeon and the governing scottish national party which lost 21 mp5, including the seat held by the former leader, alex salmond. the conse

hammond and all the others. should we read anything into that or is it simply downing street is trying to contain the message to mrsleagues, because this is not what she wanted, she had hoped to get an increased majority, she wanted to strengthen her mandate, to strengthen our hand to go into the brexit negotiations. and as we know, that political gamble has completely failed. it has ended in disaster. so, why did that happen? many tories, i think, in disaster. so, why did that happen? many tories, ithink, pretty angry that we had an election in the first place. it was not necessary. theresa may did not need to call it. some are cross about the nature of the campaign, that it didn't go very well at all and that the manifesto had so many hiccups, but social care cap and criticism of a u—turn. and theresa may not making those appearances in the tv debates. so i think tories, to put it politely, are think tories, to put it politely, a re pretty think tories, to put it politely, are pretty frustrated with how things have gone and clearly, theresa may gets that, we heard her as saying how sorry she was that so many tory

but from mr hammond's on colleagues, a reminder of why many voted brexit but there is also a strong worrykingdom, using our public services, who may not be contribute into our national wealth. that is the problem of the government will deal with, and we'll deal with that in a reasonable way over a period of time. there were plenty of warnings today from the chancellor higher prices, struggling consumers, the need for a good brexit deal. and even those who see bold opportunities ahead, or glass half empty. clearly that has meant there is higher inflation, and that has had a knock—on effect for real incomes. but on the other hand, there has been a much—needed boost to exports. we really did need that boost because the currency was overvalued. it was a day for stepping back and taking the wider view on the economy. an economy for consumers so uncertain, mr carney said there would be no interest rate rises in the near future. sunny today, yes. but there could be more squally weather ahead. kamal ahmed, bbc news. kan emergency bbc news. kan emergency bbc news team with the aftermath of the gre

in terms of the current balance of the conservative party, cheerleaders for mr hammond would not be inconomic reaction, changing a chancellor who was respected by the city would not be seen as a wise move. it's notjust us sitting here in the studio talking, all over the country, many places are busy counting. in islington, where jeremy places are busy counting. in islington, wherejeremy corbyn's seat is counted and emily thornberry‘s seat is counted, huddersfield, where there are a clutch of marginal truancy is, in west yorkshire where the conservatives were hoping to make ground, two seats in derby, labour's margaret beckett, and then westmorland and lonsdale, tim farron's constituency, all these people brought in as volunteers, paid, sometimes bank clerks paid overtime and it is responsible work and tiring. you have to open each one and verify it, not electronic, all done by hand and that is why it is taking time and if it is true that the turnout everywhere is up, the slower pace of results is what we can expect. with me is the former labour home secretary jack straw. when jeremy co