14/07/2016 BBC Business Live

Could it be the first cut in seven years?

The Bank of England says it is ready for action to stave off

a Brexit recession - so will it slash interest

Live from London, that's our top story on Thursday 14th July.

Rates have been at a record low since March 2009, but they could be

And after a reshuffle of the top team in government,

the UK's new finance minister says there's no need for

Also in the programme: China's appetite for chicken is back,

as the owner of KFC and Pizza Hut gives an upbeat assessment

And as well as news of a rate cut, could there also be

But are Central Banks running out of tools?

And we meet the London teenager who ditched university,

launched his own business and now runs a tech firm in the heart

Entrepreneur James Proud tells us his story - and how building

websites at the age of 12 set him up for a lucrative career in tech.

And doom and gloom or great new opportunity?

Are you sick of the warnings about Brexit, or are

And we meet the London teenager who ditched university,

Are you sick of the warnings about Brexit, or are

they necessary reminders of uncertain times?

Get in touch, use the hashtag BBC Biz Live.

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

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

economy in the wake of last month's vote to leave the EU.

And first on the cards is a likely cut

Well, before the vote, bank governor Mark Carney warned

of the risks Brexit would pose to the economy.

Last week - after the vote - he said those risks had already

One survey of consumer confidence has seen its biggest ever fall.

It's a similar picture for the service and

Interest rates are already at a record low of half a per cent -

where they have been for the past seven years.

They were initially slashed at the height of the global

Most are predicting another cut today - by a quarter of a percent.

And it's thought the cost of borrowing could be ultimately

Since the referendum the Bank of England has already eased capital

requirements for Banks - basically how much they have

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

But many economists think that won't be enough to stave off

recession and suggest more Quantitative Easing or QE -

printing billions of pounds of new money might be needed.

Give us your take on what might happen. Most of the market thinks

there will be a rate cut. Most of those people think it will be 0.25%.

Mark Carney has said before the referendum vote that he wasn't keen

on a negative interest rate, so I don't think the bank will be

hurrying to follow the bank of Japan, the European Central Bank in

the central bank of Sweden, who have all played with negative interest

rates, but that cut, I think, is in direct response to the EU

referendum. It is not that long ago that Mark Carney was suggesting that

the next rate change would be upward. That has completely changed

since the referendum. There are fears here, held by lots of

economist, not all but some, that Britain could be facing a referendum

because of... Sorry, a recession, because of the uncertainty created

by the referendum. The bank is responding to that. I spoke to an

American economist who used to be a member of the monetary policy

committee, and he thought there should be shock and awe. He thought

they should go straight to zero to show that they are there to provide

stability. I don't think they will go that far this time.

The idea of central banks running out of tools - if they cut too soon,

they get to appoint quickly where they have nothing else to offer.

Some critics are saying it is too soon today because we don't know the

Economists believe that the bank has Economists believe that the bank has

to get ahead of the curve. If you cut into a recession, you are too

late. Once the economy has reached that tipping point, cutting at that

point may be too late. Lots of economists feel there should be now.

The notion that they are running out of ammunition needs to be dealt with

carefully. They have more asset -- asset purchasing they could do. They

can do monetary easing for banks to provide credit, so there are stumps

on -- spills some bullets left in Mark Carney's armoury.

Let's hear what Filippo Hammond had his aid. We will have meetings

today. We have two distinguished the short-term from the longer term. In

the short-term, the decision to exit the EU came out a surprise to the

markets. It came out a surprise to a lot of people. Therefore, it has

rattled confidence and caused people to put plans on hold while they wait

to see how things clarify. The fact we have moved quickly to resolve the

question of the leadership of the Conservative Party and get a new

Prime Minister installed I think will help to restore business and

consumer confidence. What we have to do now is show, as a team, how we're

going to bring negotiations with the EU forward, how we will support and

stabilise the economy in the coming months in order to help that

confidence to be restored as quickly as possible. Filippo Hammond,

speaking on the first day of his new job. He will meet with -- Filippo

Hammond... -- Philip Hammond. Fiscal policy,

what the Government does on tax and spending, on borrowing, these are

all big decisions that will really affect whether -- where the British

economy goes. A busy day for you and us. For now,

thank you very much. He is hotfooting it to the Bank of

England. Do take a look at our website. You can follow us online. I

will be there for the interest rate decision at midday. Stay with us for

that, we will keep you up-to-date. In other news, the number of homes

being put up for sale in the UK 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 Surveyors expect house prices

to fall across the UK Shares of Nintendo have

continued to soar - up more than 16 per cent in Asia

today - on the runaway success of Players have to track down virtual

characters by moving Experts say the technology

could also be used for marketing and that's what's got

investors so excited. Nintendo's stock market value

is up almost 60 per cent The coffee giant Starbucks has

bought a stake in the premium The artisan Italian brand

will become the exclusive food provider at all of the new luxury

Starbucks outlets. This means that Starbucks will bake

fresh goods onsite for the first Just reading that has made me

hungry. But that looks nothing like a

Starbucks. You are so cynical! Fresh pastry is

awesome, whatever the source! Fast Retailing has cut its forecast.

There is a bit of a glitch in Singapore. The stock market stock

trading because of a technical glitch. The deadline passed and it

did not restart. Our colleagues in Singapore will keep you up-to-date

online. Not the first technical glitch.

We are having a few here, actually. You would never know!

She's in Singapore, where Yum Brands -

the company behind Pizza Hut and FKC - has announced strong results.

You might remember the company making the headlines after a series

of food scandal several years ago in China. The company has recovered

from that quite well, sales rising 6% in the second quarter, coming in

at $3 billion. They raised their profit for grass, up 14%. -- their

profit forecast. Consumer preference is shifting from fast food to

healthier options, and the company has been localising their menu at

KFC and Pizza Hut might well. Analysts say they are only appealing

to people looking for cheaper options in smaller cities, so later

this year, the company plans to split off its China business in

order to make business decisions more quickly locally.

Thank you. A quick look at the numbers. Shares in Japan ended

higher for the fourth straight session. That is largely down to a

weaker yen. That quick reshuffle of the Government and the promise of

interest rate cuts have meant that the markets have started up.

Stability is the one thing they crave at times like this. That

interest rate decision is due at midday. I will be live in the City

of London. All of our team are across that for you. Remember,

America has been trying to raise the cost of borrowing and increase

interest rates. At the start of the earnings season for the big

investment bank, they will watch events here very closely indeed,

because while low interest rates are good for some people, they are bad

banks because they make less profitable.

Low 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. Ultralow interest rate make money mending not a very

lucrative business. Banks need to make money elsewhere, but the

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

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

the sidelines and watch the storm pass. It also means banks will make

less revenue from trading. JP Morgan has another problem - it employs

some 16,000 people in Britain and makes around $8 billion in the UK,

which means investors will be looking very closely to see just how

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

EU. It is a question that investors will ask of all Brown 's -- of all

banks. Simon Derrick is currency analyst at

the bank of New York. Before we talk about helicopter money, which will

explain, your prediction for today, the Bank of England? 0.25% down. I

think they are going to cut. There has been clear guidance from Mr

Carney. For him not to do that, the risk is that you get an astonishing

rally of the pound. Shock and awe? I think he wants to give himself a

second run. He is looking at this meeting and the one in August as

being a package. He wants to give himself space, why do everything at

once? When it comes to what everyone else is looking at, for everyone

apart from the banks, it might mean there is more money in our pockets,

that borrowing is cheaper? help exporters. You have seen that

in the FTSE in the last couple of days out. Helicopter money is

something people might believe might happen in Japan, the anchored by

bonds, put them back into the market bonds, put them back into the market

and never sell them back. Printing money and injecting it in. If you

look at what has happened in Japan, the currency has weakened

dramatically, it has a huge positive impact on the Japanese stock market.

We will return soon, we will see you in five minutes.

Don't say you don't learn anything on this programme, helicopter money.

Skipping university and going straight to Silicon Valley.

We'll be hearing from the London-born tech

You're with Business Live from BBC News.

Where will the UK property market go next?

UK property investors are waiting to see how

Today the Royal Institution of Chartered Surveyors published

It is a pretty downbeat assessment of the state of the housing market,

or what will become of it in the run-up to Brexit. It was largely to

political shock, you would expect political shock, you would expect

some uncertainty, and when you are making a major capital purchase like

buying a home, you are going to become much more cautious. But we do

need to consider this against the context that it is a short-term

response, and it will be interesting to see what happens now, especially

if we see the cut in base rates, and given that we have more political

issue around the Conservative Party issue around the Conservative Party

has been resolved. When you look at the detail of the survey, is it a

nationwide issue, or does London nationwide issue, or does London

dominate again? It is pretty much nationwide, that is what you would

have expected. London is slightly different because it has had a

prolonged period of very strong price growth. What we have seen in

previous months is some indicators of a softening within the market,

which is about the right time, and I expect this will be the catalyst for

that. Everybody talks about Brexit being a risk, but prices will not

change unless supply or demand changes. Neither of those seem to

change any time soon. There will be a short-term impact on demand,

people's position to be able to buy, that will create a short-term

disconnect, which will mean that transaction levels will fall and

price growth will soften, it may fall into some of the weaker

markets. But beyond that, we have to look at the fundamentals, the supply

and demand, what will happen to the cost of borrowing, slightly offset

by Access ability to the market. We have heard from David Davis, he

is the new Secretary of State for Brexit, a new job in the Cabinet.

You can read his thoughts on our page.

The Bank of England says it is ready for action to stave

off a Brexit recession, so will it slash interest rates

We expect a decision at mid-day, full coverage across the BBC.

A quick look at how markets are faring.

Europe are keeping an eye on Mark Europe are keeping an eye on Mark

Carney and his team. All higher by quite a margin at the moment.

Now, here's a story that you'll either love or hate.

The story of a young British tech entrepreneur who's made it big

and now runs his firm in America's Silicon Valley.

Not bad for a kid who skipped university.

James Proud was raised in south London and started building

In his late teens he was spotted by US billionaire investor

Peter Thiel and awarded a fellowship as part of an entrepreneur

He's now the chief executive of a firm called Hello

in Silicon Valley which makes a sleep-tracking

When I was nine years old I discovered that

you could build websites for yourself, and so if you have

a nine-year-old with the internet, he can build his own websites,

When I was 12 I figured out I could get paid to do that stuff

as well, so I started building websites for other people,

My mum thought I was a drug dealer, but I explained that they don't get

I kept doing that, then when I was finishing sixth form

in the UK I had this online side project at 17 that I launched.

I took a gap year between then and university so I could

At the end of that year it was a case of, "If I go

to university now, I will not be able to spend 18 hours a day doing

The first thing I want to do is what I am doing, so I won't go."

Peter Thiel put together a programme, the Thiel Fellowship,

20 Under 20, which was 20 young people under the age of 20,

and he gave them $100,000 not to go to university.

I was the first one in the first class.

The only one that was not from the US.

I was the only one that went out there, "How do

They said, "We have not thought about this yet!"

I had the fun of, "How do I not get deported?"

19, no job, no degree, it is a bit harder.

"Here's money each month, and go figure it out."

Sense is a sleep device which is three things.

It helps you to fall asleep, it helps you to improve your sleep,

and it helps you to wake up each morning feeling great and not groggy

The way it does that is inside it is a sound machine,

so we play sounds like white noise, rainfall, meditative sounds

It is packed full of not just senses to see how you are sleeping,

but the environmental conditions, light, sound, temperature,

humidity, air quality, the things that affect sleep.

You don't have to wear anything, there is no plugging things in,

pressing buttons, putting things on your head.

It can collect all of this information and say,

here are your patterns, here is how you can improve it,

here are those things that are not great, maybe

lower the temperature, make it darker.

The third piece is it is the best alarm clock,

because we know your sleep cycle, we know when you are

You will say, "I want to be up at 9am," but maybe at 8:52am

You know when your alarm goes off and you can get out of bed

That is James proud there. Rachel was talking! I told you we

had technical issues, that one you noticed! Do you need a machine to

help you get to sleep? It is difficult to stay awake during the

evening, never mind at night! Getting up is my problem. But let's

talk about Brexit, we ask for viewers' responses. An issue we have

One person says, so much negativity, One person says, so much negativity,

talk about the positives that it can have, it is our fault, the BBC seems

to look for the bad. Ray says, we are cowering in anticipation. Abby

says, fed up of the bad news from the BBC. Keep pushing doom and

gloom. Others point out, it is important to keep a close eye on it.

James says, in the run-up to the referendum, there were problems

about getting the real story. Keep your comments coming in.

It is all over the papers. In the Independent, everything could still

be OK, says a small group of economists. We had one on our

programme, talking about the economy. There is a danger we

talk ourselves into a recession. If talk ourselves into a recession. If

you look at what we do know so far, markets are performing as they

should, equity markets have stabilised, it makes UK assets on

competitive. We just have to wait competitive. We just have to wait

and see. It is too early to be either wildly optimistic or hugely

negative. For the moment, all of the negative. For the moment, all of the

claims about unemployment soaring... Yes, credits these say it is May

Day, half a million jobs could go in the UK. Say we had a movement on

compare it to Continental Europe, compare it to Continental Europe,

fantastic youth unemployment in fantastic youth unemployment in

we have to look at it in those we have to look at it in those

terms. Don't get overly negative or positive, wait for the market. The

voice of reason! But is it from us. Stay June for all

of the news on the potential interest rate cut.

Hello. I suspect that Thursday is the pick of the day is across the

British Isles, a lot of dry weather, there will be sunshine, and it