u.k. economy? said, 42 billion pounds, a 3% increase on the u.k. economy going forward. clearly, quite a feat of construction. many being added in terms of jobs. we keep seeing unemployment figures falling down. 55,000 jobs is what they are saying this entire construction project will have trains moving by 2018. interesting news today coming out of more mergers and acquisitions this time between two of the biggest builders in the u.k.. a 3 billion pound merger coming closer as these two companies get together. project being delayed, construction with australia and previously, crossrail biggest infrastructure projects in europe showing construction is back on in the united kingdom. back to you. hyde live at the crossrail project. we want to tell you about air france. 600 41quarter earnings, million euros, slightly ahead of analyst expectations earnings before interest, taxes, and appreciation, amortization. the company sees a tough operating environment that it is on target to hit the target of 4.5 b

u.k. economies and i first asked him how the u.s. and the u.k. economies are doing here's what he had to say. it's existence isn't a slump the u.s. has done a lot a lot better and you know if you look at real g.d.p. since two thousand and eight u.s. is one of the best economies in the g seven whereas the u.k. is actually one of the worst it's kind of only it's late so. but you know right now u.s. just had a massive setback with g.d.p. last quarter and the u.k. has actually grown quite well but you know i tend to i tend to say that the the signal is the long term trend and that the noise is the short term trend so i tend to say to you at us is probably in about a better position to weather the storm. than the u.k. but you know it's we'll see we'll see how this how this develops over the coming months should the fed and the bank of england raise rates in your opinion i think they should raise rates if sorry if if if inflation rises above that's august i don't employment force below that i'll get. right now that isn't the case so zero percent interes

u.k. economy rebound but wages are not rebounding with that growth.as that helped you keep on track and on budget? say, ie workers start to am looking for more? >> they will always look for more money and that is natural. in three years, the u.k. saw a slowing down. today the ecb figures show continual growth. with that growth will come expectations. i am not anticipating major inflation in terms of wage increases. there may be some concerns around material costs. is at the heart of stimulating growth. not just in construction but in london and the whole of the u.k. >> last night when you said balfour beatty might be combining with caribbean, you take on more construction companies. is it good to see consolidation? those two companies are fantastic, reputable companies. , whether thatrge does provide the right opportunity, it will be one of biggest infrastructure and construction companies. that must be good. >> it has been wonderful speaking to you today. ♪ >> welcome back. we are 30 minutes into the trading day. i am guy johnson. we are here in lond

u.k. economy is doing well.ver-year. -- 3.1% year-over-year. >> that is going to be the story. >> ur

asuspect we're going to see stronger economy led by the u.s. and partly the u.k. we are going to see the threat of rates rising, which will continue to impact bonds. what do we have for stocks? it is going to take a lot for investors to get over the feeling that stocks are truly priced. and there is a lot of frothy activity. if you look at m&a. we could see more difficult conditions and stocks and a difficult bond market. >> do you think markets' participants inc. that central banks will not let asset prices and stock prices fall that far? if they do, that is a worrying level of confidence to have. >> central banks are forcing investors to look at stock markets returns. and bond yields. it will be very dangerous to be involved in bonds. by that treasury, and guilt. -- and gilts. everyone is worried about the effect of taper. at the same time we will have issues like the japanese pension spendinging in and enormous amounts of money on foreign asset which will partly be stocks but a large part will going to treasuries. that will be part of trying to drive down the y

u.k. economy which is the one i'm most indebted economies in the world that will add substantial debt to the u.k. economy and that's masked to the effect they can keep interest rates at these low levels until such time as they can't and then suddenly they'll realize that this is better known as boondoggle you mention the earthquake problem of the fracking which i guess is the most immediate visceral risk to fracking when we look at a state like texas and oklahoma in the u.s. these are big pro oil states and the u.k. but they're terrified twenty two thousand percent increase in earthquakes. with the fracking and now they even they want to get rid of it because this is obviously on a geological basis suicide i think there's only so far you can go with saying well finances is great so these people will do it and there's this i respect john ashton he's an x. climate change diplomat and he said it's implied inevitability that they rely on which is i keep hearing people say well it's just going to happen anyway there's nothing you could do to stop it we strikes me as a rather spineless thing to do

u.k. economy recovers? that people will stop shopping at pound land or are they still going to be buying up these bargain garden gnomes? >> have we as a nation changed? aldi is doing better. we are becoming more astute about where we want to buy our brands. we spoke to the chief executive of town land and i said, what if austerity is easing? what will happen? he seemed pretty optimistic. aligned inery much terms of results to footfall. a more confident consumer is good for us. landtter times, pound actually does better. i am optimistic about the future. >> analysts are pretty optimistic too. three analysts say, by the stock. one says hold. credit suisse says it could grow to 400 pence, currently about 350. this is basically the only initial share sale this year that is above its initial selling price in the u.k. pets at home is currently trading lower. this is a company that managed to continue to perform area >> interesting. doesn't matter how much money you have. everybody wants a bargain. thank you. it i

u.k. economy is doing well. they grew 31.% year-over-year. -- 3.1% year-over-year. >> that is going to be the story. >> sure is. we are glad you're here. capital goods and durable goods are at 830. this is an important read on our economy. moving to earnings, we have stanley, black & decker, abbvi. today.fire ships >> that is a phone. you almost have to describe what that is. >> i don't know why they called it the fire. maybe it is hot? what do you think? >> it is revolutionizing the world. it is innovative. >> is it as good as my iphone? >> we will have to see. bidensident obama and joe are meeting with leaders from central american countries today, trying to figure out how to deal with this crisis on the border. >> let's do a data check. what a week it has been. we turned -3 on futures. can we break through support for a week or euro? hydrocarbons have done nothing but churn all week. you can see with the vix, better than good market. that is important. .50..47 2.50. -- top just a whisper. this will be a theme

u.k. economy. do you agree? >> i -- i'm not sure i do really.on, we have a special problem and have had for few years of cash buyers. i think there is a risk of a bubble there. the rest of the country, i don't think some recovery of house prices was bound to happen as the recovery developed economically and as people's confidence grew. i'm not too worried about the housing market at this point. >> talk to me a little bit more about what you think mark carney has achieved. we were saying there was so much fanfare about his arrival and he has made some big structural changes. i believe he has increased the number of staff at the bank by 50% in the last year. he has brought in mckenzie and deloitte. how big do you think the bank of england will be from when you were there to where it will be when carney leaves? >> well, i think that carney joined a bank which had been very stable for 10 years or more, pretty much every one there had worked under the same management for a long time and he has brought in a breath of fresh air. he has changed the top

u.k. faster than the economy generally. i think that reflect positive global growth. we are seeing demand for air traffic passengers grow. the demand for new aircraft is also growing. boeing and airbus are increasing their rates of production. that means new and better business for companies in the u.k.. >> are you looking for big orders this time around? some analysts have been talking about slightly moderated expectations compared to the last couple of years. >> we saw last year was a huge year in terms of new orders. i think we will more likely see those from faster growing parts of the global economy. the middle east, southeast asia, south america. i think we are seeing a situation where we have got record backlogs in terms of aircraft order. for most of the industry it's about how can we raise our level of production and live consistently for those customers. showcaseas a domestic years ago. it's now an international showcase. international contributors come here. how do they stay relative when there is so much competition from newer upstarts? >> history is impor

u.k. customers and also businesses, are any of them worried about the swings of the economy?ee how rates can go down. we keep waiting for them to go up. areoperations in britain concentrated in the greater london market. london is a boom town. we hear larry little -- very little concern about the general state of the economy. >> one of the first rate hike here in the u.k.? >> whenever i answer, you can assume that is wrong. my record -- it seems impossible that they can print this much money and rates can stay this low. >> we got a survey where they say a rate hike by december, futures telling us february next year. december-february? >> that is as good a guess as any. >> tell us how your business is growing. 125% growth. can you grow in the future? >> metro bancorp the first new start up bank in 100 years. our model says service and convenience is what it is about. we have the opportunity to build a bank from scratch. we are not burdened with the problems of the old bank. this is a model built around service. >> what does that mean? if i go into a federal bank -- metro bank.

u.k. economy is top of the league with the highest growth in the g7.e may need to go on a counterattack once again. central banking, it is a funny old game. >> joining me now is our next guest. how would you assess mark carney's one-year tenure as governor of the bank of england? >> he is a good worker. success.it it is a >> has it been as much of a success as some of his other central bank colleagues around the world? mario draghi has announced some significant measures. janet yellen has taken over for ben bernanke. where does he stand? aggressive policy, which is bringing success. it is what we need at the ecb. >> the structural, the investment that is needed. >> to be frank, it is everything. we have everything. yes, we do not have this in europe. at this date, it is at a standstill. x yesterday's inflation number highlight the need for further measures down the line? likely to have additional measures. it will not be enough. ecb is putting in lace the right framework -- in place the right framework. it is not enough to kickstart. >> will be italian

u.k. economy. please come back. the senior adviser at credit swees and bank of england policy member. stay with us, this is "the pulse." >> let's get a check at the currency market. the pound has risen against the dollar and against the euro. we had a report showing construction growth here in the u.k. accelerated to the highest level in june or accelerated in june adding to further signs of strength in this economy. and this support it is case investors say for the bank of england to consider raising rates after mark carney, the governor said trying to normal lies them, the time, is his words, edging closer. 171. now for a look at what we're watching for the rest of the day, ryan, you are watching iraq today. >> weapons sales interesting we learned the obama administration wants to sell 4,000 hellfire missiles to them to fight the insurgents. almost always from helicopters. meaning hell copter launched fire and forget. the whole idea is that they are sort of strategically guided missiles and they're banging these o

u.k. at the moment. strongestly to be the g-7 growing economy this year. the u.k. looks quite good value. elsewhere in europe, there is value. the next interesting phase of the cycle is whether the stronger growth in western economies is going to feed through to the benefit of some of the emerging economies. that could be the next phase of the investment cycle. the u.k., the big question is interest-rate increases. in an environment where rate increases could be on the cards in the next nine months, is that an environment of positive equity going forward? >> it would be raising interest rates because the economy is growing strongly. that should be a positive signal. why are we persisting with interest rates that were set in an enormousofa economic crisis? we have to be starting to normalize. >> are you in the cabinet that says we need to start the normalization in 2014? why wait until 2015? >> definitely. we should be starting the process early. the authorities are beginning to worry about lending into the housing market in the u.k. they are beginning to get concerned. one way of making pe

u.k. economy. interesting to get the perspective of the management team over that person.speaking to the ceo atpersimmon, just server, 7:30 from now. nicolas sarkozy, the former french president is now under investigation. we go live to the french capital to speak with erling conan -- caroline connan. >> is the first time in recent history that a french president has been taken into custody. he spent 15 hours in an and has beenn suit placed under formal investigation. nicolas sarkozy is accused of influencing a judge, asking him confidential information and in exchange,, sing him a prestigious job as a government advisor in monaco. that he wasion allegedly seeking is related to another case under inquiry at the moment which is a case about alleged illegal financing of his 2007 presidential campaign. this inquiry started back in february and according to a newspaper, these investigators are probing whether nicolas sarkozy allegedly got illegal funding from the former libyan leader more market after you -- gaddafi. the former french president, by using this judge and the hig

u.k. economy? >> the cbi did as well has been interrupted by some very big increases.tends to have a ripple effect. i think it takes a few months really before the bank of england and analysts really know what is happening. we know that unemployment has been coming down and in comes up instantly moving higher. that is been one of the biggest drivers of the economy going forward. is moving in a nice steady fashion. now that we are on it one way stop all the way to bank hike. it is really matter what happens. remaking slowdown, but we would have to cease of the rebate to stop that journey, right? >> think you're right. there's a diode effect when it comes to sterling. weak data does not have an impact. they carry on buying it. that is a problem the bank of england have a moment. that is why is trying to keep some restraint on the whole rate hike for the tour. assume you do start to raise interest rates. --re is not a lot of time there's a big move higher, tentatively speaking. they will have to contend with that. >> how much is actually a strong pound concern for the bri

u.k. economy is. >> i am putting the ukraine and russia and the israeli situation in context. >> a quick updaten the situation.irline it was reported by reuters that a second malaysian airplane's black box has been found. there was no distress signal sent from the plane. this clearly was a surprise attack for want of a better word. whether it was done by russian separatists. >> that certainly brings hope that we will have some kind of a thorough investigation and not obstructed as there was some speculation that might be the case. we will talk other geopolitical risks as israel launches its first major ground operation in gaza in five years. aviv with the latest. ♪ ." welcome back to "countdown >> i am manus cranny. israel has launched a ground offensive in the gaza strip. >> of course, soldiers, bulldozers and tanks moved into afterastal enclave airstrikes failed to stop the militants firing rockets at israel. elliott gotkine is live in tel aviv. what is the latest? tanksere are thousands of that have gone in. footage posted on youtube shows night vision images of tanks going through a fenx. c

u.k. is expected to be one of the first of the big economies to raise rates. vestorsulti-asset nowadays are looking at risk factor. i would say that in doing so, you need to assess the gaps. while the u.k. has potentially the best-performing economy in the detent, there is still a large gap. it is still possible the growth could continue to be strong without causing deflationary pressure. this year.e rises i do not know the meeting specifically. >> what i am fascinated by at the moment is this relationship between risk and central-bank policy. it seems to be the only factor that is out there in terms of determining investments. that it is suggest going to be gradual. you believe the rate hike in the u.s. will be gradual and in the maybeone, it will be precisely nonexistent. in that environment, how much longer to i cross my fingers and continue to believe that equities go higher? >> when you look at the outward gap in the u.s., the business cycle suggests we could have a growing economy for another two or three years before eventual rate hikes suppress the inve

political >> there are still a lot of questions about exactly what happened in the u.k. , fundamentally, does this economy a lot -- have a lot of momentum behind it? is the need to recognize that the u.k. is a very interest-rate-sensitive economy. if the rates go up, the impact could be quite significant. >> talk to us a little bit about the u.s. and where you see the market, in general, going be we , topast 17,000 on the dow be exact. do you see that continuing? do you think that can be sustained? >> i think the u.s. equity market is the market that we probably worry about most. there are two reasons for it. one is the valuations are beginning to get stretched. i would not say it is exceptionally stretched, but we are getting there. our biggest concern for the second half of the year is that u.s. inflation is starting to go up. u.s. rates probably need to go up and the market is not paying any attention. could we still have a positive return in the u.s. equity market the second half of the year? maybe, sure, but it is not going to be a particularly big one. >> do you think that the fed is behind the data

he also answered questions on the british economy. u.k. membership in the european union, and hospital waiting times. this is about 35 minutes. further. >> order. questions to the prime minister. >> number one, mr. speaker. >> thank you, mr. speaker. this morning i had meetings with ministerial colleagues and others, and in addition to my duties in this house, i shall have further such meetings later today. and. >> welcome economic growth, investments in new commercial project. does my friend agree a key part -- not only achieving in the southwest, for the housing, business growth and rail for infrastructure plant and will he do all they can to hasten the completeness of this? >> well, having visited my honorable friend's constituency recently i now passionately she feels about this important to build the. i know she will be delighted that the judge in question has to dismiss the judicial review so we can now hope that this paves the way for the supermarket and the stadium to be built and i hope they will press ahead with it. not only will

u.k. is a small economy with its own exchange rate. the exchange rate needs to be managed.u look at the balance of payments. of the other countries around the globe and the other economies around the globe that have financial sectors as large as the uk's. singapore, hong kong, switzerland, all three of those companies have a currency arrangement of some sort. >> when you talk about carney, a great deal of debate. i am interested to know what you think. that is a good thing, isn't it? communicating at all. he is a master hedger. it is a hedging strategy and the goal is to get market rates to get the exchange rate moving. that will make the tightening cycle less severe for the domestic economy. they could control market forces with rhetoric and expectations and keep themselves hedged. the start of the cycle and the cycle itself does not have to be as aggressive. >> we spent a lot of time accessing prices. approvals. mortgage i want you to go beyond the mortgage. what is happening in the rest of the economy? >> a lot of people like to say that housing is not driving growth. ho

the network boom bust from the air an ada taking a look at a washington is struggling economy unless you're in the u.k. thank you for joining us you're about to go underground with me. if you drive people away from the dollar many people now it must be sitting there saying gosh if we have u.s. dollars and the u.s. decides they don't like us they're going to put sanctions on us so people more and more people will say maybe i should use the u.s. dollar. farms waters today you have the pond to me because. i saw it spread all over and over this is the most toxic food you have in the whole. process drama zones in the judicial inquiry furthermore those restrictions. really knows what's inside the feeling of fish. no there i'm marinating this is boom bust and these are some of the stories that we're tracking for you today. first up the land of polo ponies the tango and many other things is dancing with another default now argentina has until wednesday to pay its bondholders and we're looking into the likelihood of this actually happening then patrick byrne is on the program today the c.e.o. of overstock dot

u.k. is growing the strongest of the major economies. >> the eurozone would love a little bit of growth.'m sure mario draghi would like mark carney's job. how do you see things saying out? he was talking yesterday and said those new targeted long-term operations will be used. bank have to look at the balance sheet. it has been shrinking. 600 billion paid back. the issue of whether it will work or not -- the question -- the economy is growing at about one percent. they would love to have that growth. more optimistic that the money would be used in investment. one percent growth rate is not as clear to us. there have to be pockets of companies not getting access to finance and this will do a good job of that. smalltargeted, just a companies. it is likely will see a reasonable pick up. issue. supply and demand >> how does this shape your views on peripheral bonds? how does this play out over the next year or so? >> big improvements in the positions.budget some of that compression is a reflection of fundamentals. this continued liquidity provision provides support. we are constructive on the

is one of the best economies in the g. seven whereas the u.k. is actually one of the worst. so. you know right now the u.s. just had a massive. last quarter and the u.k. is actually growing quite well but you know i tend to i tend to say the signal is the long term trend and that the noise is the short term trend so i tend to say the us. position to weather the storm. in the u.k. you know we'll see we'll see how this how this develops over the coming months. to the fed on the bank of england raise rates in your opinion. i think they should raise rates if interest if sorry if if if inflation rises above that target i don't implement falls below that i'll get. right now that isn't the case so zero percent interest rates are. the only way only way to go you know is that you're still doing cause there to be easing in where there. was such a huge such a huge setback. in first quarter growth it would i thought i think for to raise rates now would be. very foolish actually but you know. at the end of the year you know if inflation takes up at two percent you know if we have two two or

if you look at germany, the u.k., those are clearly countries where the economy as well as the laboro improve. switzerland for that matter. countries such as italy, spain, france are really just at the beginning of a recovery and a labor market recovery. that is, you know, as you look ahead, probably still going to take some time before they come back. liz: the staffing sector is often looked at as a barometer of the house of economies around a world. let's start with the u.s. how we look? we are looking slightly better. is it more than that? which areas are we seeing the most tiring? >> we have seen really a solid improvement now over an extended amount of time, especially over the last six months we have seen an acceleration. our view, we will continue to see that improvement over time, and, you know, the unemployment has dropped. but, of course, as many of us know the participation rate is still very low. there is still some slack, and i think we can continue to see improvement year in the labour market in the u.s. without any significant wage inflation. liz: you have broken york,

u.k. model when the rest of the european economy is struggling? x for the eastern european countries. they are not sure now is the time to go really hard. the u.k. is pitching this argument that if we go early then it is a lot less expensive. in commission proposed january to set up this stability toerve, the u.k. wants cancel these permits entirely. that would take them away from industry. it would raise prices. the other interesting thing that the u.k. is considering is expanding the coverage of the carbon market at the moment. it is half the economy. they are talking about covering. expense would be gasoline. that is politically different -- difficult. australia has basically attempted to repeal most of its laws.e protection the prime minister has failed in a few areas to get what he wanted. is still pushing for a carbon market eventually. that carbon market may only come into being if certain conditions are met. those include whether china is a trading partner and bring them in as well. >> we are going to leave it there. thank you very much ind

become so cheap to create these toxic waste that you know is destroying the economy in their environment fracking in the u.k. makes no economic sense they're going to through if they rebranded as pedophilia because pedophilia in the u.k. sells like hotcakes whether it's all the politicians the royal family of corporate leaders they can't all media titans they can't get enough of this pedophilia scandal so few brand fracking as pedophilia then the queen will sign off on a david cameron so i don't have a george allen for a final because they love pedophilia this country they can't get up an affair in this country brand for i think it's pedophilia and britain will sign off on it yes that's true there's a lot of paedophilia scandals here but i wanted to say in the last few seconds here that i was stopped on the street by a fireman who wanted me to give this to you and it's called we rescue people not banks stop the cuts there's a big strike across the u.k. for many days coming up thank you fire person and good luck thank you stacey thank you max stay tuned for the second i have a whole lot more. i'm marinating

economy. day's other the business headlines now -- unemployment in the u.k. has fallen to its lowest level since 2008. official figures show the number of jobless fell by 121,000 to 2.1 million in the second quarter. prices the gap between rises and wage rises -- bank of america has gone 43% from a year earlier as it struggled with massive legal expenses. it has agreed to pay over $10 billion to settle various accusations of wrongdoing surrounding mortgage purchases and identity theft insurance. and a merger between article's telekom in brazil's only has been threatened by financing problems. it has been revealed that one company failed to repay a loan from 900 million euros to the group. to renegotiated terms, portugal telecom will now control just a quarter of the new combined entity instead of a 40% stake as planned. i'll be back with a little more business news in just over an hours time. >> thank you for that business update. time now for what is happening with news. >> hello there. welcome to the web news with our pick of the stories making the online h

has nothing to do with the interests of the european union for a stable economy and stable energy prices. britain's queen names the u.k.'s biggest ever warship well the future of britain's nuclear defense is remain up for question ahead of scotland's independence referendum. we supply the weapons that are used in the conflicts that none of these people had to flee then we don't let them work and put them in countless when they get their anger within germany over the treatment of refugees after police try a big thing dozens from a disused building. but first washington's a wait and see approach to the crisis in iraq could change the u.s. has already sent more than seven hundred fifty troops to the country and currently advising the iraqi army on how to defeat isis insurgents but it may not be enough america's top army general leaving the door open to the country's increased military involvement the chairman of the joint chiefs joint chiefs of staff martin dempsey says the u.s. could launch an assault on isis militants if national interests require or president obama gives the order currently the u.s. is gathering intel

the fear is the economies could be impacted by all of this, and concerns from the u.k. too.he british government hinted that financial sanctions could cause pain in the u.k. such is the degree of political and public outrage across the european union, this the feeling here is that the continent can take the hit if it means they can send a signal to moscow that what is happening is not acceptable. >> thank you neve barker, reporting from brussels. >>> three al jazeera journalists have intend 213 days in an e-egyptian prison. peter greste, and mohamed fadel fahmy were given seven year sentence, and baher mohamed received 7 years and an additional 3-year term because he had a spent bullet in his possession which was picked up at a protest. al jazeera conditions to demand that its journalists be freed. >> more to come on al jazeera. >> i'm tania page reporting from south africa, where the e.u. is demanding stricter measures on citrus growers over fears fungus would spread. >> women in europe using a new screening process look forward to having a healthy baby. details coming up.

u.k. right now so what do you see and where is the economy headed in britain and the eurozone well you britain is doing ok because they back leverage ing up one small. couple of play cards out of these struggling pac and it was a demonstrator we had what we called the first time in this game which gave people in the first time extra money to go and speculate on the market nickname but the first time then disclaim over in england of course they had what they called help to buy nickname that helped to sell because again giving money to. as and saying go out and buy a property they take the money to the bank the bank is believe is it up ten or twenty times more and you get cross inflation going on and then what happens is everybody's borrowing money to buy housing that's turning up as extra money in the economy and it gets stimulated out of the rut that it's in it looks great while house process continue rising but it is certain point people look at the proselyte and so on this market at all unless you're getting enormous amount of money coming in from the you know they sold the arabian and russi

u.k. for the past 18 months than france. >> is that something that will continue? the french economysigns of recovery? >> it is getting better. it has hit the bottom of confidence. getting slightly better. hopefully, france will catch up with the u.k. >> let's talk a little bit about the ownership of your company. there have been some reports that have suggested the u.k. government might be interested in selling its 40% stake in euro star. and the daily telegraph was suggesting it could be sold to a french train operator. does it matter to you who the big donors are? >> of course it does matter. i would say it is a matter for the shareholders to see what they want to do. no decision made yet. it is important for me, for the that we follow a strategy which is to grow our market, and keep growing the business. >> let's talk about the plans to go to further destinations. i do not know a great deal about trains but i know you cannot run all trains on all tracks, because widths are different. what plans do you have against the core of your network, london-paris, london-brussels? >> next y