14/07/2016 World Business Report

Those are the latest headlines from BBC World News.

Now for the latest financial news with Sally Bundock.

Battle stations at the Bank of England.

Interest rates could be cut to a new record low as it scrambles

America's biggest bank JP Morgan feels the pinch because of,

China's appetite for chicken and pizza proves to be

We start here in London, where in a few hours' time,

the Bank of England will decide what action it will take to shore up

the UK economy in the wake of last month's Referendum vote to leave

The big news is likely to be cheaper borrowing costs.

The bank's governor, Mark Carney, warned in the run-up

to the Referendum of the risks of Brexit to the economy.

Last week he said those risks "have begun to crystallise."

One survey of consumer confidence has seen its biggest fall on record.

Others on the service and construction sectors are also

So, what can he and his committee do?

Well, interest rates are already at a record low of half a percent,

where they have been for the past seven years

following the Global Financial Crisis.

Most experts think they will be cut further today, by another quarter

Some think the cost of borrowing could end up being cut to zero.

Since the Referendum, the Bank of England has already

eased capital requirements for banks, basically how much

It hopes that will free up $200 billion for lending.

But many economists think that won't be enough

They see a return to Quantitative Easing or QE,

printing billions of pounds of new money to pump

That major step could be put off until next month though,

as Mr Carney seemed to imply when he spoke at the end of June.

Now, in my view, and I am not pre-judging the views of the other

independent members of the MPC, the economic outlook has

deteriorated and some monetary policy easing will likely be

The MPC will make an initial assessment on the 14th of July,

and a full assessment complete with a new forecast will follow

Robert Wood is Chief UK Economist at Bank of America,

Good morning. What you think the bank will do today? They will cut

interest rates close to zero. As Mr Carney said, and as we can see in

many surveys of consumers, there is a wait and see approach taken hold.

People are uncertain about what will happen. That means the economy

growth will turn down. The bank needs to take action and it will

today. Action today? In your view, quite significant action? Yeah. The

consensus is most people are expecting a 40 point cut of interest

rates. May be slightly more. A would make a deal of how much bigger rig

is. But it will be close to zero in this month or the month after. And

when we'll quantitative easing take place? August, I think. The vote to

leave the EU has brought a wait and see approach from consumers and

firms. That requires monetary action from the Bank of England to help the

economy. That will be interest rates and extra quota easing in August.

Mark Carney is not the biggest fan of that, if he? There aren't that

many fans of QE out there because it is unconventional. Central banks,

until 2008, did not do it. It is hard to see how much it helps the

economy. Evidence says it does. At the moment, it is the next tool the

Bank of England have in their toolbox. Will it work? Will it stop

the UK heading towards a recession? We also have a new chancellor,

Philip Hammond. What will he do? A few things. The action taken by

setting out a plan and following through with it and constantly

explaining that land, that has already helped quite a lot. -- plan.

They might find they don't have to do as much at they may have

otherwise had to have done if they had not had that. It may help. Will

there be a recession? I believe they will have one. But that is six

months into the future, who knows exactly where the economy will go.

We can be pretty sure it is going down. OK. Thank you so much. We have

run out of time but there is so much to discuss. We will do it another

day. Thank you for coming in, Robert. And as soon as we get any

news from the Central Bank we will update you.

Let's stay with those issues of interest rates and Brexit.

They're a major concern for Wall Street's giant investment

banks which report their quarterly results over the next few days,

The UK referendum has derailed plans at the Federal Reserve

Low rates cause problems for banks as they make

Lower US interest rates are here to stay. At least for a lot longer than

anyone expected. But that means revenues for banks like JP Morgan

will suffer because all the low interest rates make money lending

not very lucrative. Banks need to make money elsewhere. But with

China's economy slowing and the price of oil and gas really low,

markets are volatile. It means investors are more likely to wait on

the sidelines and watch the storm passed. It also means banks will

make less revenue from trading. When JP Morgan has another problem, it

employs 60,000 people in Britain and has $8 billion in the UK. -- JP

Morgan has. That means investors will be looking closely to see just

how the bank will be affected by Britain's impending exit from the

EU. That is a question investors will ask of all banks. And the

effects of which, they will be dealing with four years to come. --

for. Samira Hussain, BBC News. It is all abour Yum brands in China

now. Don't talk about chicken and pizza! It is making me hungry. After

this it is my lunch break. LAUGHING. Let's take a break from

Brexit. The fast food chains made $3 billion in the second quarter of

this year and have given an upbeat review of its business. New brands

are beginning to spin off the unit later this year. China is a key

market for Yum. That has got them to increase their profits broadcast to

14%. Yum was on track to spin off its China unit, aiming for an

October start. When you speak to analysts, the split will allow them

to be more responsive and build up their presence in China. It also

allows them to raise cash going forward. Analysts say it is a

challenging future as the market is moving on from quick service

restaurant is and people armed concerned about healthy food and

safety. -- restaurants. Despite the concerns, look at the share price of

young brands, it is up quite a lot! -- Yum.

The number of UK homes being put on the market has seen its biggest

fall in almost two decades, and demand from buyers has hit

an eight-year low, according to the Royal Institution

It's the first survey of the UK housing market since the vote

Surveyors expect house prices to fall across the UK in the next

three months, and still be lower in a year's time in London.

Overall though they see UK prices 14% higher in five years.

Shares of Nintendo have continued to soar,

up more than 16% in Thursday trade on the runaway success

of its new smartphone game Pokemon Go.

Players have to track down virtual characters by moving around the real

world in a system called "augmented reality,"

experts say the technology could also be used for marketing.

Nintendo's stock market value is up almost 60% since the game's launch

That is the story we are covering today. Pokemon Go is great for the

share price but not for some museums and places where people are sent to.

The rally continues in Asia, as you can see. I have run out of time. I

will see you soon. House prices in Britain are expected

to fall over the next few months, following last months

decision to leave the EU. That's according to the Royal

Institution of Chartered Surveyors. The number of properties being put

up for sale is also falling at the sharpest rate

since records began.