Browse content similar to 14/07/2016. Check below for episodes and series from the same categories and more!
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Those are the latest headlines from BBC World News. | :00:00. | :00:00. | |
Now for the latest financial news with Sally Bundock. | :00:00. | :00:00. | |
Battle stations at the Bank of England. | :00:00. | :00:17. | |
Interest rates could be cut to a new record low as it scrambles | :00:18. | :00:20. | |
America's biggest bank JP Morgan feels the pinch because of, | :00:21. | :00:33. | |
China's appetite for chicken and pizza proves to be | :00:34. | :00:52. | |
We start here in London, where in a few hours' time, | :00:53. | :00:58. | |
the Bank of England will decide what action it will take to shore up | :00:59. | :01:01. | |
the UK economy in the wake of last month's Referendum vote to leave | :01:02. | :01:04. | |
The big news is likely to be cheaper borrowing costs. | :01:05. | :01:08. | |
The bank's governor, Mark Carney, warned in the run-up | :01:09. | :01:12. | |
to the Referendum of the risks of Brexit to the economy. | :01:13. | :01:14. | |
Last week he said those risks "have begun to crystallise." | :01:15. | :01:17. | |
One survey of consumer confidence has seen its biggest fall on record. | :01:18. | :01:20. | |
Others on the service and construction sectors are also | :01:21. | :01:22. | |
So, what can he and his committee do? | :01:23. | :01:29. | |
Well, interest rates are already at a record low of half a percent, | :01:30. | :01:32. | |
where they have been for the past seven years | :01:33. | :01:35. | |
following the Global Financial Crisis. | :01:36. | :01:36. | |
Most experts think they will be cut further today, by another quarter | :01:37. | :01:39. | |
Some think the cost of borrowing could end up being cut to zero. | :01:40. | :01:43. | |
Since the Referendum, the Bank of England has already | :01:44. | :01:45. | |
eased capital requirements for banks, basically how much | :01:46. | :01:47. | |
It hopes that will free up $200 billion for lending. | :01:48. | :01:51. | |
But many economists think that won't be enough | :01:52. | :01:53. | |
They see a return to Quantitative Easing or QE, | :01:54. | :01:56. | |
printing billions of pounds of new money to pump | :01:57. | :01:59. | |
That major step could be put off until next month though, | :02:00. | :02:09. | |
as Mr Carney seemed to imply when he spoke at the end of June. | :02:10. | :02:27. | |
Now, in my view, and I am not pre-judging the views of the other | :02:28. | :02:30. | |
independent members of the MPC, the economic outlook has | :02:31. | :02:32. | |
deteriorated and some monetary policy easing will likely be | :02:33. | :02:34. | |
The MPC will make an initial assessment on the 14th of July, | :02:35. | :02:48. | |
and a full assessment complete with a new forecast will follow | :02:49. | :02:51. | |
Robert Wood is Chief UK Economist at Bank of America, | :02:52. | :03:03. | |
Good morning. What you think the bank will do today? They will cut | :03:04. | :03:16. | |
interest rates close to zero. As Mr Carney said, and as we can see in | :03:17. | :03:23. | |
many surveys of consumers, there is a wait and see approach taken hold. | :03:24. | :03:26. | |
People are uncertain about what will happen. That means the economy | :03:27. | :03:32. | |
growth will turn down. The bank needs to take action and it will | :03:33. | :03:39. | |
today. Action today? In your view, quite significant action? Yeah. The | :03:40. | :03:45. | |
consensus is most people are expecting a 40 point cut of interest | :03:46. | :03:51. | |
rates. May be slightly more. A would make a deal of how much bigger rig | :03:52. | :03:54. | |
is. But it will be close to zero in this month or the month after. And | :03:55. | :04:00. | |
when we'll quantitative easing take place? August, I think. The vote to | :04:01. | :04:07. | |
leave the EU has brought a wait and see approach from consumers and | :04:08. | :04:12. | |
firms. That requires monetary action from the Bank of England to help the | :04:13. | :04:18. | |
economy. That will be interest rates and extra quota easing in August. | :04:19. | :04:22. | |
Mark Carney is not the biggest fan of that, if he? There aren't that | :04:23. | :04:31. | |
many fans of QE out there because it is unconventional. Central banks, | :04:32. | :04:36. | |
until 2008, did not do it. It is hard to see how much it helps the | :04:37. | :04:41. | |
economy. Evidence says it does. At the moment, it is the next tool the | :04:42. | :04:45. | |
Bank of England have in their toolbox. Will it work? Will it stop | :04:46. | :04:51. | |
the UK heading towards a recession? We also have a new chancellor, | :04:52. | :04:55. | |
Philip Hammond. What will he do? A few things. The action taken by | :04:56. | :05:01. | |
setting out a plan and following through with it and constantly | :05:02. | :05:04. | |
explaining that land, that has already helped quite a lot. -- plan. | :05:05. | :05:11. | |
They might find they don't have to do as much at they may have | :05:12. | :05:14. | |
otherwise had to have done if they had not had that. It may help. Will | :05:15. | :05:20. | |
there be a recession? I believe they will have one. But that is six | :05:21. | :05:23. | |
months into the future, who knows exactly where the economy will go. | :05:24. | :05:27. | |
We can be pretty sure it is going down. OK. Thank you so much. We have | :05:28. | :05:34. | |
run out of time but there is so much to discuss. We will do it another | :05:35. | :05:40. | |
day. Thank you for coming in, Robert. And as soon as we get any | :05:41. | :05:44. | |
news from the Central Bank we will update you. | :05:45. | :05:46. | |
Let's stay with those issues of interest rates and Brexit. | :05:47. | :05:48. | |
They're a major concern for Wall Street's giant investment | :05:49. | :05:50. | |
banks which report their quarterly results over the next few days, | :05:51. | :05:53. | |
The UK referendum has derailed plans at the Federal Reserve | :05:54. | :05:57. | |
Low rates cause problems for banks as they make | :05:58. | :06:00. | |
Lower US interest rates are here to stay. At least for a lot longer than | :06:01. | :06:16. | |
anyone expected. But that means revenues for banks like JP Morgan | :06:17. | :06:20. | |
will suffer because all the low interest rates make money lending | :06:21. | :06:27. | |
not very lucrative. Banks need to make money elsewhere. But with | :06:28. | :06:31. | |
China's economy slowing and the price of oil and gas really low, | :06:32. | :06:36. | |
markets are volatile. It means investors are more likely to wait on | :06:37. | :06:40. | |
the sidelines and watch the storm passed. It also means banks will | :06:41. | :06:46. | |
make less revenue from trading. When JP Morgan has another problem, it | :06:47. | :06:53. | |
employs 60,000 people in Britain and has $8 billion in the UK. -- JP | :06:54. | :06:56. | |
Morgan has. That means investors will be looking closely to see just | :06:57. | :07:01. | |
how the bank will be affected by Britain's impending exit from the | :07:02. | :07:05. | |
EU. That is a question investors will ask of all banks. And the | :07:06. | :07:10. | |
effects of which, they will be dealing with four years to come. -- | :07:11. | :07:15. | |
for. Samira Hussain, BBC News. It is all abour Yum brands in China | :07:16. | :07:34. | |
now. Don't talk about chicken and pizza! It is making me hungry. After | :07:35. | :07:39. | |
this it is my lunch break. LAUGHING. Let's take a break from | :07:40. | :07:47. | |
Brexit. The fast food chains made $3 billion in the second quarter of | :07:48. | :07:52. | |
this year and have given an upbeat review of its business. New brands | :07:53. | :07:58. | |
are beginning to spin off the unit later this year. China is a key | :07:59. | :08:03. | |
market for Yum. That has got them to increase their profits broadcast to | :08:04. | :08:10. | |
14%. Yum was on track to spin off its China unit, aiming for an | :08:11. | :08:15. | |
October start. When you speak to analysts, the split will allow them | :08:16. | :08:23. | |
to be more responsive and build up their presence in China. It also | :08:24. | :08:27. | |
allows them to raise cash going forward. Analysts say it is a | :08:28. | :08:33. | |
challenging future as the market is moving on from quick service | :08:34. | :08:38. | |
restaurant is and people armed concerned about healthy food and | :08:39. | :08:43. | |
safety. -- restaurants. Despite the concerns, look at the share price of | :08:44. | :08:55. | |
young brands, it is up quite a lot! -- Yum. | :08:56. | :08:58. | |
The number of UK homes being put on the market has seen its biggest | :08:59. | :09:03. | |
fall in almost two decades, and demand from buyers has hit | :09:04. | :09:06. | |
an eight-year low, according to the Royal Institution | :09:07. | :09:07. | |
It's the first survey of the UK housing market since the vote | :09:08. | :09:12. | |
Surveyors expect house prices to fall across the UK in the next | :09:13. | :09:16. | |
three months, and still be lower in a year's time in London. | :09:17. | :09:19. | |
Overall though they see UK prices 14% higher in five years. | :09:20. | :09:27. | |
Shares of Nintendo have continued to soar, | :09:28. | :09:29. | |
up more than 16% in Thursday trade on the runaway success | :09:30. | :09:32. | |
of its new smartphone game Pokemon Go. | :09:33. | :09:34. | |
Players have to track down virtual characters by moving around the real | :09:35. | :09:37. | |
world in a system called "augmented reality," | :09:38. | :09:39. | |
experts say the technology could also be used for marketing. | :09:40. | :09:41. | |
Nintendo's stock market value is up almost 60% since the game's launch | :09:42. | :09:44. | |
That is the story we are covering today. Pokemon Go is great for the | :09:45. | :09:54. | |
share price but not for some museums and places where people are sent to. | :09:55. | :10:00. | |
The rally continues in Asia, as you can see. I have run out of time. I | :10:01. | :10:02. | |
will see you soon. House prices in Britain are expected | :10:03. | :10:10. | |
to fall over the next few months, following last months | :10:11. | :10:13. | |
decision to leave the EU. That's according to the Royal | :10:14. | :10:15. | |
Institution of Chartered Surveyors. The number of properties being put | :10:16. | :10:17. | |
up for sale is also falling at the sharpest rate | :10:18. | :10:20. | |
since records began. | :10:21. | :10:23. |