the bank of england is set for its biggest hike in 20 years. opec delivers one of the smallest production increases in its six decade history, rebuffing bidens calls to call prices. we did see a rally in stocks that started in asia, it is cooling when we look at the futures. as traders look at the bank of england, we will see if there is any currency moves. there is a bold call on starlink. the main story is one of earnings. we have had good earnings, earnings that are concerning in terms of future visibility. as the market opens, the ftse 100 is actually opening flat. the other big story is commodities. yesterday we had that token increase for production. opec may be a political gesture, it won't be moving the dial at all on the price of some of the oil. the bloomberg dollar index going ever higher, 1002 hundred 72. s&p futures down .1%. this is despite a bit of a boost in chinese tech stocks and asia as we wait for alibaba. 96.74 crude. the winter of discontent that we could see. in the wake of nancy pelosi's visit to taiwan, china has begun

what the bank of england do. u.s. futures are up holding onto gains led by technology. let's get into the biggest sector moves. technology holding strong, if you look at also travel and leisure, basic resources, oil stabilized after the slide earlier in the week as investor sentiment steadied. basic resources gaining .6%, also travel and leisure and retail, on the way down our media and insurance. don't miss our exclusive interview with the bank of england's chief economist huw pill, that will give us indicators on questions the market had yesterday. and will help us understand what has happened to the u.k. economy that they are now predicting recession, something they weren't a couple months ago. huw pill, an exclusive interview right on the show, send your questions on ib+tv . another week of earnings comes to a close, inflation the topic dominating conversation. let's get an idea what leaders think about rising prices. >> inflation. >> inflation. >> inflation gets worse. >> inflation is going to stay. >> w

[crosstalking] tom: the bank of england uses monotype. [crosstalking] lisa: there was a great documentary on that. jonathon: if anyone would like an advisor to your board, tom is available. the s&p up 0.2%. from new york, this is bloomberg. . >> keeping you up to date with news from around the world. china has started military drills after house speaker nancy pelosi visited taiwan. taiwan is downplaying the effects of the drills on shipping and airplane routes. the bank of england today's expected to raise england rates for the first time in many years. this is despite risks of a recession. we will get details on how it plans to reverse. -- to reverse some of the $1 trillion it pumped into the economy in more than a decade. the u.s. senate has voted overwhelmingly to add a country to nato. turkey is still threatening to block the two countries from joining. there will be another attempt to save the landmark iran nuclear deal. the u.s. and europe will be getting together after months, after donald trump went there four years ago and puts a

the bank of england will reflect in this. they have already put in the forecast, today they saw a forecast of 3500. it will be up again in january. that is about 800 pounds per year for the average household. that is a massive amount of money just been on energy. tom: i think it's very differ from the fed, where we have of different fed presidents, including kansas city. we perceive bank of england as a city and maybe london as well. what does 13% do to the bank of england's relationship when you go to the premier league this weekend to liverpool, to leicester, to newcastle? what is the boe relationship with the inflation the north will face? >> one day, me and jonathan will have to take you out to coalfield. -- cold field. i was listening to one union representative just early this week and the pay they are being offered after inflation, it is relate 10% wage cuts. that's doing a whole month of the year working for free losing all statutory holiday. we could potentially see wages go up. the bank made a really strange play. t

what should be bank of england be doing? ithihk be bank of england be doing? i think the have be bank of england be doing? i think they have quite _ be bank of england be doing? i think they have quite limited _ be bank of england be doing? i think they have quite limited levers - be bank of england be doing? i try “ia; they have quite limited levers and i think you have to turn to the government who has more levers. in that short—term, this won't help inflation but certainly will help the impact of inflation, you've got to put money in people's pockets in order to offset the huge increase in bills. i want the government to put a tougher windfall tax on excess profits being announced by energy companies and then use that to soften the blow on households on low and middle incomes. in addition to providing additional support particularly on families at the sharp end and in the longer term we absolutely need to talk about reform and that's about reducing the energy we use and also fundamentally changing the nature of the market. there is stuff the government

manus: the bank of england says u.k. will have a retracted recession after raising 50 basis points, the biggest increase in seven years. >> we will get inflation back to target, no question about that. that is my message. of course, it is very hard. we are much more affected by inflation which is concentrated in energy particularly. if we do not get it under control, it will get worse, and we will have to raise interest rates more. manus: let's get to lizzy burden, she has been tracking the news. if we listen to bailey, it is about acting now and taking pain and medicine now because it could get worse later. what was the big takeaway for you? lizzy: controlling inflation, no ifs or buts, that is the message she wanted to get across yesterday. the bank has to choose a path in a dilemma it has never faced before in its independent history. it has to inflict this recession to control inflation, which it sees in double digits but above 13%. hence this rate hike we have not seen the size of for 27 years. the reason it says in

the bank of _ bank of england combined. yeah. the bank of england _ bank of england combined. yeah. the bank of england i _ bank of england combined. yeah. the bank of england i think - bank of england combined. yeah. the bank of england i think are i the bank of england i think are tasked mainly with trying to keep inflation under control, but when these kind of costs aren't really dependent on demand, you know, this is simply the price spikes we are seeing in global oil prices and gas prices, so there is very little actually that they can do, and yes, more targeted help from government is going to be absolutely essential, because we can't have this in a large number of households suffering so much. ,., ., ., number of households suffering so much. ., ., ~ ., so much. good to talk to you, have a good — so much. good to talk to you, have a good day, _ so much. good to talk to you, have a good day, thank- so much. good to talk to you, have a good day, thank you i so much. good to talk to you, | have a good day, thank you for getting up so early. stay with us. so much more to come.

it is obviously very tricky for the bank of england at the l for the bank of england at the moment because on one hand they have very high inflation and what they don't want is for that high inflation to remain high for very long. we are all expecting inflation to go down and to reach the target by 2024, potentially. a lot of it is nothing to do with the bank of england but externally generated, nothing to do with the state of the economy here. but the worry is those higher inflation expectations will be ingrained and therefore persistent and that is a big part of what the bank of england is trying to do, is to break that and have that confidence, confidence of households and businesses that the bank of england will be able to get inflation back to 2%. now high interest rates will hit inevitably businesses and households, mainly those households that are borrowers more than savers, if you like, but that's not something that the bank of england can deal with. their remit is very clear. they are in charge of controlling inflation. we have other parts of the government where the government an

we have to respect bank of england _ to respect bank of england independence. i wouldn't want the bank of england to come out and say what it did yesterday but the real world has intruded on this debate and it will be difficult. i speak as and it will be difficult. i speak as an mp, i am worried about what happens and what we need from a new prime minister elected in september is a firm grip on inflation, dealing with the challenges we face, not going on a multi—billion—pound burrowing giveaway which i think threatens to increase inflation and a key point to remember, those taxes that lose proposes to cut, the biggest beneficiaries will be energy companies. she will cut the rate of corporation tax, i don't think that's our priority. i support business but the priority must be focusing on inflation and helping families struggling with the cost of energy bills, and i think that is where the country is. haifa energy bills, and i think that is where the country is.— energy bills, and i think that is where the country is. how do you focus on inflation? _ where

a double warning from the bank of england. it says a recesion is coming and inflation could peak at 13% percent by december. gdp growth in the uk has slowed and the economy is now forecasted to enter recession later this year. meanwhile, interest rates rise by half a point to 1.75% the biggest for nearly 30 years. some firms say the bank's decision is concerning. it's crippling, interest rate rises are something that could really stop small businesses like us. the bbc has announced an independent review into the allegations surrounding tim westwood and his conduct when he worked for the company. a high court hearing is set to begin in the next hour to determine whether archie battersbee can be moved to a hospice. china launches several ballistic missile tests into waters around taiwan following a senior us leader's divisive visit to the island. and how disposable facemasks are blighting birdlife in 23 countries around the world. good afternoon, welcome to the bbc news channel. good afternoon, welcome to the bbc news channel. t

that's right, as we see the bank of england raising _ bank of england raising rates, generally those higher rates are going to benefit savers, but be less favourable for borrowers. so as you say, households with mortgages will see the mortgage is going up, may be some of the investment plans... the net impact of these effects is going to be a cooling of the uk economy. but could the banks do more to help us have more money in our bank accounts and has more comfort? the uk has very — accounts and has more comfort? tte: uk has very open and competitive banks in the system, i'm not sure i can comment much more than to say that these things do impact with a lag, and it will take time. we have also seen interest rates have been rising this year, and the full impact will only happen with a bit of a lag. this could be why... inaudible. the bank of england also warned that the typical energy bill will be £3500 by october, changes to the energy price cap will now be made every three months rather than every six months. every three months rather than every six months-— every three months

the bank of england from 2009 to 2012. adam, how hard is the bank of england going have to go? the national institute for social research had a report out earlier on that talked about astronomic inflation being an issue in the u.k. they talked about rpi going circa 18%. what you think of that report and how do you think the bank of england needs to respond? >> just turning up the volume, the better to hear you with, guide. it is solid but more solid on the policy recommendations, fiscal and monetary then thinking of a specific number. it is their job to forecast. i don't like the adjective astounding, but they are right that the bank of england is facing historically unprecedented for decades since there has been an inflation targeting regime inflation, far higher than what the bank has forecasted. we have been warning for almost a year now that was going to happen since their november 2021 forecast, and it puts a point on the idea that the terminal rate for the bank of england is not going to be as some seem to be saying

bank of england expected to announce its biggest rate hike in years. fed officials keep up tough talk of fighting inflation. let's bring you bank numbers. 1.9 8 billion, way ahead of the 1.6 expected. way ahead of estimates. you are looking at left density -- at lufthansa, looking to ramp up and meet revenge tourism. it will remain high for the rest of the year. they see a full year above half a billion euros. 585 million euros. clearly positive. stock is down nearly 15%. let me give you a snapshot. to date drop. nasdaq is down most percent -- almost 3%. they talk about risk, perhaps they stepped into early. -- they stepped in too early. equity trading does not reflect headwinds in the world. let's look across assets. oil at a six-month low last night. some of the biggest moves in these markets. globally, up 10% since june. waiting for a rate hike of 50% -- 50 basis points. a meager add of oil by opec-plus. we talk about that in a moment. table, ubs -- cable, ubs. let's get the latest on taiwan, dubai, and the opec-plus update. let's get to politics. n

the bank of england expect the price cap to go to £3500 by october. analysts are predicting even higher bills forjanuary when the cap changes again. fuel poverty campaigners say the regulators should have stuck to the current system a bit longer. the decision is essentially inhumane. it's going to come at the worst possible time for families, after they've been through three months of really difficult conditions in the winter, making sacrifices, making the decision between heating or eating. they are then going to be hit with another rise in energy bills injanuary. 0fgem says it had extremely difficult trade—offs to make. it's urging customers struggling with bills to contact their supplier, as they are duty bound to help you with an affordable payment plan. the government is knocking £400 off people's energy bills, part of a huge support package. but the pressure's now on for the new prime minister to do more. with boris johnson with borisjohnson about with boris johnson about to with borisjohnson about to depart, how is the government likely to r

this week, it is all about the bank of england. they don't -- they joined several institutions that have been raising interest rates. and looking at commodities, iron ore getting a touch with brent unchanged. let's also look at across assets check. 10 year yields. it is interesting to hear kashkari say the fed will do whatever they can and whatever it takes to keep inflation under control. we are also seeing pressure from the s&p futures, down 0.8%. in europe, a lot of people are on holiday for their summer beach vacation. we might see less volume then usually unto some of the european forces. let's also go over to the bloomberg managing editor. this is mark cudmore and you are looking at the july stock rallies. mark: good morning. you said whatever it takes, and you want to be on your southern european holiday as well, but i think the fed will have to do whatever it takes to get inflation under control later this year. at the moment, the yield pricing over the next 18 months is really wrong grade i have conviction on that view, bu

bank of england. burbank�*s governor, andrew bailey, had been hinting that that that was in the pipeline. he said are not .5% increase —— like a increase was... interest rates have been at record lows since 2008, but if you look back a bit further in history, 1.75% is still incredibly low in that context. nonetheless, it is a time of living costs rising dramatically, and there will be many affected by this in terms of their mortgage payments going up. on that front, just under a third of households in the uk do have a mortgage, and of those three quarters are fixed—rate mortgages, so they will not be affected immediately, that it will mean that around 2 million people will see an impact of that 0.5% rate rise. the breaking news, rates have gone up by 1.2% to 1.75%. let me bring you —— have gone up by 0.5% to 1.75%. the bank of england are saying that inflation is going to keep climbing, they are talking about 11%, this comes through from our economics editor, who says that the bank of engl

by the bank of england today. which is slightly counterintuitive. up next, we have the european close. we are counting you down for that. of five minutes away now. we are also talking about what is happening with the travel story. glenn vogel president and ceo is going to be joining us to caution in their numbers in favor today. we have that conversation a little later. this is bloomberg. ♪ millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a line per month when you get 4 lines. switch to xfinity mobile today. this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime mo

the bank of england can either not raising interest rates and see the bank value of the pound decline or the central bank can raise interest rates in an attempt to try and mitigate, take the edge of that effect. i see. thank you for the explanation. and one other key point that i think people will look at, and i know the bank of england is independent and has its own reason to tackle inflation but it seems to many households lack the authorities are pulling in opposite directions. the bank is raising interest rates. it puts financial pressure on households, makes their borrowing more expensive. doesn't that just negates borrowing more expensive. doesn't thatjust negates the effect of the support the government is giving to households in the form of that £400 payment to help with energy bills? it is wiping it out, isn't it? to energy bills? it is wiping it out, isn't it?— out, isn't it? to a certain extent— out, isn't it? to a certain extent but _ out, isn't it? to a certain extent but if _ out, isn't it? to a certain extent but if you - out, isn't it? to a certain extent but if y

by the bank of england. yes, there has obviously been a geopolitical shock this year, but energy prices were predicted to go up energy prices were predicted to go up a year ago, inflation was predicted to go up off the back of covid and off the back of a decade of easy money. the covid and off the back of a decade of easy money-— of easy money. the fed in united states faces _ of easy money. the fed in united states faces the _ of easy money. the fed in united states faces the same _ of easy money. the fed in united l states faces the same accusations? absolutely and that has been one of the criticisms, central banks across the criticisms, central banks across the world have been... after the financial crash they were printing money and printing money and unlike what was predicted by monetarist, it didn't increase inflation. they thought we were in a period of endless low inflation never mind how much money they printed. a lot of people said, you have got to be kidding me? now suddenly we are seeing it is

they— problems —— the bank of england. they will— problems —— the bank of england. they will face questions about what to do— they will face questions about what to do about it this evening in the latest _ to do about it this evening in the latest televised event of the campaign, live interviews and questions from party members on sky news at _ questions from party members on sky news at hpn. —— at eight o'clock. thank— news at hpn. —— at eight o'clock. thank you. — news at hpn. —— at eight o'clock. thank you, jonathan blake. 0fgem has announced that changes to the energy price cap will be made every three months, rather than the current six. the energy regulator says the move will allow prices to reflect changes to wholesale gas and electricity costs more quickly and accurately. 0ur consumer affairs correspondent, colletta smith, joins us. why have they done it? it is worth saying the price cap is the maximum amount a supplier can charge for the basic rate, standard variable tally. a lot more households have been moved onto that rate —— standa

in its bleakest assessment of the economy so far, the bank of england says a recession is coming which could last for over a year. and it has another warning — soaring domestic energy prices will see inflation rising to around 13%. it's really, really hard at the moment because the rent has gone up, all the bills have gone up. it's really difficult. and all the food prices, the fuel prices. many mortgage holders will be hit by the bank now raising interest rates by 0.5% in an effort to counteract rising prices. if we don't act inflation will become more embedded, it will get worse and we'll have to raise interest rates by more and we have to act to stop we'll be asking just how badly this is going to hit us, and what the two people vying might do to help. also on the programme... china releases images of the country's launch of ballistic missiles into waters around taiwan, in response to a senior us democrat visiting the island nation yesterday. in ukraine, we have a special report from the conflict in the south — as ukrainian fighters look to regain the strategic city of kherson.

his puts more pressure on consumers and the bank of england. germany may not have enough gas to get through the winter. -- out of the u.s. and europe. european stocks, you can see them on the higher side. the data is a little bit unrelenting in asia. it is speculation the fed and other central banks will do a little more, especially in china , to shore up its economy. the picture shows the ibex opening up and we see opec+ and look at commodities with gas and oil currently 1.6% higher. apologies. it is all the commodities commotion that is making me lose my voice. when you look at brent crude, it is below 90. currently at 93.0 two, and you look at gold spots. the asset check as always, we look at treasuries to see what part of the yield curve a lot of investors want to invest in. the 10 year at 2.831. this is something we saw yesterday, not to the same extent, but europe is moving to the upside and some pressure on the s&p futures. we had some gains in technology yesterday. let's get over to mark cudmore. you are looking at the rally in the s&p.

they go to the bank of england saying not to| the bank of england saying not to interfere with city regulations, what is the story about? the governor _ what is the story about? the governor of _ what is the story about? the governor of the _ what is the story about? he governor of the bank what is the story about? tie: governor of the bank of what is the story about? ii9 governor of the bank of england is not well pleased with either, it would appear, liz truss or rishi sunak, effectively use saying to them, get your tanks off my lawn, particularly with threats of greater government intervention and the banks decision making, officially, he sang in the actions would damage the uk's competitiveness, especially of westminster were able to overturn those regulatory decisions but it seems he is especially upset with liz truss and it will be interesting to see if the front minister and where things go from here. irate to see if the front minister and where things go from here. we will end with another _ where things go from here. we will end with another financial - where things go from here. we wi

the bank of england has told us that. this idea that we could have a technical recession for a quarter or two, no, this could be a drawnout prolonged recession. i don't think that is christ in. -- priced in. you talk about the nasa rally we have seen in the last few weeks, that is reflecting the soft landing. we have taken out the peak for rate hikes. the fed does not need to hike as far, we have this slow down, and off we go. that is not how this will play out. it will be much more prolonged than that. lisa: how have you changed your allocations at a time when many see the haven as being longer-term u.s. bonds? lee: i think it still is. this is why the curve is inverted. the most inverted since 2000. forget the financial crisis, this is the most inverted since 2000. you want to be at the longer end. in terms of fx, it is the dollar. weakened a little bit over the last few weeks but it is coming in hard now. the fed message will be clear in that will lead to dollar buying. jonathan: our audience has been clear, we keep on

well, certainly, the bank of england in their - the bank of england in their forecast to paint a pretty bleak picture of the uk economy over the next year or so and i think most economists would agree with that. i think we are going through a period, particularly as costs start to ramp up particularly as costs start to ramp u p after particularly as costs start to ramp up after the next energy price cap increase, that consumer spending and people's real incomes is going to be impacted next year and that is going to impact the wider economy and unfortunately that means the market going into recession. find going into recession. and fundamentally, _ going into recession. and fundamentally, driven, . going into recession. and fundamentally, driven, if we had to pick one single part of the problem, is it energy bills? that pick one single part of the problem, is it energy bills?— is it energy bills? that is by far the biggest _ is it energy bills? that is by far the biggest contributing - is it energy bills? that is by far the biggest contributing factor| is it energy bills? that is by f

we saw the bank of england predict - for uk households. we saw the bank of england predict this . bank of england predict this and they are trying to increase interest rates to try and stifle the inflation is that what we will see more of you think? more hikes in interest rates from the bank of england? more hikes but we have had quite a few already. the base rate has risen to 1.75% so the b of e is probably nearing the end of thatjourney is a balancing act here. raise interest rates to try and bring down the rate of inflation but as you do so you slow the economy as well. of course, the bank of england told us a couple of weeks ago they are forecasting a recession to last the best part of two years. you could be careful not to raise rates too much and exacerbate the economic risks in order to bring down inflation. but we do expect a few more rate rises, three more specifically in september, novemberand september, november and december. september, november and december-— september, november and december. ~ , ., ., december. when we see inflation eaked, december. when we see infl

the real focus on what we got today for the bank of england. the countdown to the close starts right now. announcer: the countdown is on in europe. this is bloomberg markets: european close with guy johnson and alix steel. guy: 30 minutes to the close. this is what the picture looks like here in europe this thursday. travel stocks having a fairly good day. the real story is elsewhere. take a look at what is happening with the see yesterday. fascinating considering what we have had from the bank of england. we will hear from the governor, andrew bailey, and just a moment. kaylee, down by 3.2%. pi is even lower. kailey: we are off of session lows. the nasdaq down 10.1% today. this is coming off of a monster rally yesterday. we have been seeing some monster moves in the u.s. treasury market as well. yields coming in today for basis point on the 10 year. to basis point --. as you alluded, the first time since the invasion in ukraine --. guy: is it maybe being impacted by what is happening here in u.k.? the picture here in europe is universally grim

they go to the bank of england saying not to| the bank of england saying not to interfere with city regulations, what is the story about?

and her reaction has been to suggest she could curtail the bank of england, which is characteristic of this contest — every time an independent body, whether it be the electorate commission or the bank of england, produces a result that is inconvenient politically for the candidates, they suggest they can abolish the very factors that made them valuable and make their advice trusted. it's a depressing diagnosis, frankly. and to agree, brexit... which you were. i was, but i've - become a remained. it's a bit late! the fact is that brexit - is making it difficult to take advantage of even the i devaluation of sterling, for instance, sterling - is at its weakest compared to the dollar. imports are more expensive... so we should be reducing stuff ourselves? exports are now more - expensive because of brexit, because with your principlesl with your commercial partner is not full of obstracters - with tariffs and administrative jumps. it's notjust the british, it's partly down to the eu, as well, it's about the partnership. come on, the eu has donej everything to ease the way for the briti

there's the face of a man, the governor of the bank of england. if you hadn't heard of him before, you certainly heard of him today.- certainly heard of him today. yeah, this was another _ certainly heard of him today. yeah, this was another paper _ certainly heard of him today. yeah, this was another paper that - certainly heard of him today. yeah, | this was another paper that features the press _ this was another paper that features the press conferences, and they've rather _ the press conferences, and they've rather gone — the press conferences, and they've rather gone for andrew bailey. they seem to _ rather gone for andrew bailey. they seem to be suggesting this should have happened a year ago. it perhaps would _ have happened a year ago. it perhaps would have _ have happened a year ago. it perhaps would have slow down this jump have happened a year ago. it perhaps would have slow down thisjump in inflatiou _ would have slow down thisjump in inflation. so, ithink would have slow down thisjump in inflation. so, i think it's not very comfort

for bank of england, saying a little earlier to bloomberg the bank of england should now cut interest rates. his remarks in strong contrast rising sharply in order to deal with this inflationary surge with 40 year highs in the u.k.. he spoke to lizzy burden and stephen carol. >> looked for rate cuts in the last meeting. the arguments to stop there very powerful. not least because the bank is forecasted a long recession and their actually forecasting deflation as well. this is a temporary phenomenon. >> lizzie joins us now on sat. interesting listening to what he had to say. he's concerned as a result of which policy needs to turn rapidly. yet we had an inflation print that is i watering. double digits. people are now actively talking about 100 basis point hikes here in the u.k.. you describe 50 basis point hike , where does that leave 100 basis points. >> people are talking about 100 basis points. i think it might be person. >> the debate is starting and moves out from there. >> it's a real minority call. his view is inflation will get so high it will tame itself. our response was wha

bank of england in a bit of a pickle to be honest. how aggressively will it have to go to deal with this cost push inflation we are seeing in the u.k. economy. we got some energy into food, those are driving the inflation story right now. you can break it down nicely on the bloomberg terminal. we will talk about this in a moment. what's happening with the gas story. the germans have a problem and you can see that in the numbers today. we will talk about what's happening in just a moment. but they are filling up their gas, we still don't have enough if the russians turned the taps off today. signs of stabilization but still a very elevated level. sonali: in the u.s. we are seeing a lot of red on the screen. yet the dow jones industrial average really fading from that wall -- from that high, snapping five days of gains. i want to bring you a little but of macro. we have the dollar a little bit stronger again today versus the yen. that yield, if you take a look at the u.s. two-year yields you're looking levels you haven't seen in two mon

of england.— is a very difficult task for the bank of england. there is some evidence that _ bank of england. there is some evidence that prices _ bank of england. there is some evidence that prices are - bank of england. there is some - evidence that prices are plateauing, in fuel for example, but food price, dependent on ukraine and what happens there, there is no way of knowing really if and when this will peak? knowing really if and when this will eak? , , ., ., knowing really if and when this will eak? , ,., ., ., peak? yes, so one element and everyone _ peak? yes, so one element and everyone is _ peak? yes, so one element and everyone is talking _ peak? yes, so one element and everyone is talking about - peak? yes, so one element and everyone is talking about a - peak? yes, so one element and everyone is talking about a lot l peak? yes, so one element and| everyone is talking about a lot is the 0fgem energy price cap and we do kind of know what is happening there, so a big rise in april and there, so a big rise in april and there is set to

are you worried about the credibility of the bank of england at this point? the pressure on the central bank? >> the u.k. is in a pretty tricky spot. you have the labor market extremely tight, which you can trace all the way back to brexit. where you could see stagflationary issues manifesting. we see that front and center. do you just not touch it? i think there are interesting i think for european assets more broadly, that has been a funding source for us. we have sold into the recent rally. why do that? valuations are pretty cheap, but from here we think that the uncertainty is highest in europe and not just the uncertainty of what is the percentage of a recession, but how deep that can be. we have some conviction that even in the u.s. the recession would be relatively mild because of the strength of the consumer balance sheet and the fact that it would be mostly a fed infused recession and we could not say the same in the u.k. and europe because of the situation with gas prices and commodity reliance. tom: you talked about the optimism over the 12 month h

her proposal to review the mandate that the bank of england has. she and many of her supporters take the view that interest rates should have gone up further and faster and perhaps the way the bank of england operates without compromising its independence should be looked at again after what they say is too long a period under the current rules. so, plenty to discuss. meanwhile, the impact of these decisions and economic policies of the government as they being felt by all of us up and down the country. let's talk to victoria scholar, head of investment at interactive investor. if the bank of england does raise interest rates, it will be the sixth time it has done so in a row. why is the bank of england intervening in what some might say is a much more aggressive way? we’re is a much more aggressive way? we've already seen — is a much more aggressive way? we've already seen five _ is a much more aggressive way? we've already seen five interest-rate - already seen five interest—rate increases of a quarter of a percentage point each, now we are

, the forecast from the bank of england. so liz truss today doubling down, saying that she thinks this shows it even more important to keep taxes low, she said, because she says tackling the threat of recession is the thing that is really important. 0n the other hand, what we've seen of rishi sunak last night, saying that will be throwing fuel on the fire, today, james cartlidge mp, a sunak supporter who worked alongside mr sunak and the treasury tackling the covert pandemic, he said that would amount to a massive giveaway and borrowing spree and said mr sunak was the one who had the experience necessary. its also i think worth noting that we still haven't seen and heard from one camera the prime minister and the current chancellor, who are both away. current chancellor, who are both awa . , . , ., away. yes, and in terms of the leadership _ away. yes, and in terms of the leadership campaign _ away. yes, and in terms of the leadership campaign trail, - away. yes, and in terms of the leadership campaign trail, tell| away. yes

seen 50 basis points from the bank of england in september. there been more hawkish calls recently. yesterday, the former boe center at said rates could hit 6%. we've also seen expectations of the bank of england overtaking the fed and the next three years, that they foot back after that because of the recession risk in the u.k.. ivan sans mliv, 100 -- i even saw on mliv, the fact they were even discussing is insignificant. francine: after beating expectations the supporters of the outlook for european corporate earnings could be rocky. joining us now is tim craighead from bloomberg intelligence. what -- looking at the charts, is it going to be worse or better? tim: it's a shameless plug. we didn't have our reading list to show how graphic art researches. we put charts. one of these dynamics is the issue you've been talking about. high inflation is not going away. we are going to stay at sustained high levels for structural reasons. what does that mean? interest rates are going to stay relatively elevated as well. from that perspective, we see

the bank of england. what we have to remember is 160,000 tory men this will be casting their ballot for the prime minister or at least the leadership of the tory party. that's quite a small group, and also quite a particular demographic, they tend to be mostly male, a lot over 60 and they tend to be white and based on the south—east, so not a good cross—section when it comes to the electorate, not necessarily a good cross—section when it comes to investors, what this 160,000 tory members want is not necessarily what investors want and while tories are generally want lower taxes, investors really wa nt want lower taxes, investors really want to see how those lower taxes could be, will they promote investment and raise productivity the sorts of questions investors really want. right now the jury is out as to whether or not the policies we are seeing from the tory party candidates will be the right ones to raise the value of sterling stop. stay with us on bbc news, still to come: and we get the inside

a uk recession lasting until the end of next year — the grim forecast from the bank of england — as it announces the biggest interest rate increase, for nearly 30 years. and the indian adaptation of the hollywood classic forrest gump is released next week — we talk to the bollywood superstar aamir khan. it kind of feels like a dream now because it's been such a journey and we've come to the end, it's about to release any kind of feels unreal. it's six in the morning in singapore, and seven am in tokyo where japan is demanding an immediate end to china's military exercises around taiwan after five chinese missiles landed in the country's exclusive economic zone. beijing you'll remember is conducting live firing exercises in the sea around taiwan for the next several days, in response to a recent visit there by the senior us politician, nancy pelosi. tokyo has lodged a strong diplomatic protest — and the white house has also condemned china's actions. the us national security spokesman, john kirby said beijing had no reason to react aggressively to the visit of speaker pelosi to taiw

the bank of england said it is facin: recession? the bank of england said it is facing a — recession? the bank of england said it is facing a significant _ recession? the bank of england said it is facing a significant recession - it is facing a significant recession and one it predicted would last more than a year, all the way through next year, so that distinction has been there from the start between rishi sunak and liz truss, but it has absolutely become i think central given now the sort of framework we had from the bank of england last week, they are laying out its vision of what is going to happen. it out its vision of what is going to ha en. , , ., ~ out its vision of what is going to hauen. ,, ,�* out its vision of what is going to hauen. , , , �* . happen. it is bleak, isn't it, what the are happen. it is bleak, isn't it, what they are warning? _ happen. it is bleak, isn't it, what they are warning? yes, - happen. it is bleak, isn't it, what| they are warning? yes, recession happen. it is bleak, isn't it, what- they

shery: the bank of england now carrying out its biggest rate hike in 27 years. 50 basis points. the boe warning that it is headed for more of a -- more than a year of recession. banks are in a precarious situation right now. today we are expecting a rate decision from the rbis. haidi: the question over the u.s. recession continues to loom over markets. the payrolls number will fill in part of that puzzle. look at this chart that shows what we are seeing when it comes to u.s. recession. the curve inversion, the age-old indicator. we will see if that changes with the neighbor market numbers. shery: surprisingly, the markets seem to be less concerned about recession then they were in june. you have an interesting dichotomy perhaps because we have seen a strong u.s. labor market. investors are focused on friday jobs numbers. what that might mean for aggressive fed rate hikes. kathleen hays is here with more on this. we have heard plenty of fed speak already and the cleveland fed president adding to it. >> she is making it very clear. let's start with the job market because it seems

from the bank of england. the more you frontload, you can push it further out. when the yield goes higher, it won't be significant. when you see capitulation from the bank of japan, the markets have been completely one-way, and they have been saying time and time again that the bank of japan has kept their yields target. historically, when you see capitulation in the yield curve target, yields shoot sharply higher. i think the repercussions of that because of the volatility is much bigger than if you saw jumbo rate hike from the bank of england. manus: good sport, with the two tail risks. skylar montgomery koning, my guess this morning, senior global macro strategist at ts lombard. coming up, summers strikes. more on the story right here. lizzy burden from london hq and dubai. this is bloomberg. ♪ manus: it's daybreak europe from dubai and london. louis vuitton's epee disruption after its pilots -- lufthansa may face disruption after pilots voted for strike. a wage deal could unleash another wave of cancella

the governor of the bank of england has been speaking earlier at the bank of england press conference. cpi inflation is now expected to peak atjust over 13% in q for this year and remain and to remain at very elevated levels throughout much of 2023. the bulk of that further increase reflects higher wholesale prices feeding through to retail energy prices, with a further large rise in the off gem price gap projected in october. i should stress that our forecasts and projections take into account the new method announced by of gem this morning. so, you can see in the next chart, the direct impact of energy prices on cpi inflation in our recent forecasts, and the extent of the latest upward revisions. you will see the green line. i will come back to the dashed green line later because that shows an alternative projection which uses their full futures curve rather than the fixing of the line. but you can see obviously there are clearly what has gone on in recent forecasts, and i would emphasise also, i use the word direct impact of energy. of course it is not the total impact of energy. t

who are the court of england in the bank of england to determine what to do with all $2000000000.00 the vendors willing gold. this belongs to the everyday people who have been as well that could be used for the 30000000 people of that country in the form of scholarships, investments in education, investments in much needed infrastructure. but this is part of the allow u. k, u. s. western imperialist assault on ben. it's one of the sovereignty that has endured now since the $998.00 election of hugo chavez as places another massive heat wave spain as planning to impose new restrictions on air conditioning to save energy and at an energy crisis in the region. auto contributor rachel marston, explains how effective european measures to survive the hottest summer on record really are. as western europe continues to face, one of the hottest summers on record. and yet another impending heat wave, spain has now decided to impose a highly debatable air conditioning limit to save energy in their misguided efforts to undermine russian gas sails. under madrid's newly published decree, public and co

ida what the bank of england is trying to avoid. ., ., _ ., , what the bank of england is trying toavoid. ., ., , ~ ., to avoid. no easy solutions, i know that, and to avoid. no easy solutions, i know that. and every _ to avoid. no easy solutions, i know that, and every economist - to avoid. no easy solutions, i know that, and every economist is i to avoid. no easy solutions, i know| that, and every economist is saying the same thing. and then you listen to what some politicians are saying, and of course we are in the midst of and of course we are in the midst of a battle at the moment as to who would be prime minister. liz truss, for example, was asked about inflation and the economy, and said last night that the recession is not inevitable. what do you make of that? ~ “ inevitable. what do you make of that? . ~ ~ inevitable. what do you make of that? ~ ~ ~ ., , that? well, i think the bank has said some _ that? well, i think the bank has said some form _ that? well, i think the bank has said some form of _ that? well, i think the bank has said some form of recession i that? well, i t

of england base rate, _ tied to the bank of england base rate, others do not tie it to the bank of— rate, others do not tie it to the bank of england base rate. i would say the _ bank of england base rate. i would say the majority probably don't do that _ say the majority probably don't do that. what i would say to aaron, though. — that. what i would say to aaron, though. is— that. what i would say to aaron, though, is there are products out there _ though, is there are products out there that — though, is there are products out there that can help you minimise the amount— there that can help you minimise the amount of interest that you pay on credit card — amount of interest that you pay on credit card debt — they are called a 0% balance — credit card debt — they are called a 0% balance credit cards. if you paying — 0% balance credit cards. if you paying interest on your credit card debt, _ paying interest on your credit card debt, you — paying interest on your credit card debt, you cannot afford to not look at these _ debt, you cannot afford to not look at thes

what the bank of encland the solution? what the bank of england have — the solution? what the bank of england have said _ the solution? what the bank of england have said today - the solution? what the bank of england have said today is - the solution? what the bank of england have said today is of l the solution? what the bank of - england have said today is of course extremely worrying, but it is not inevitable. we can change the outcome and we can make it more likely that the economy grows. what's important is first of all that we need to help people struggling with the cost of living. i would immediately reverse the national insurance increase. i would also have a temporary moratorium on the green energy levy to save money on fuel bills. i would also keep corporation tax low, to make sure we are attracting investment. is corporation tax low, to make sure we are attracting investment.— are attracting investment. is that the answer? _ are attracting investment. is that the answer? national— are attracting investment. is that the answer? national insurance | are