:00:00. > :00:07.And with news of the first test at Lord's and Raymond Dowell's start,
:00:08. > :00:15.that is all in Sportsday after The Papers `` Graeme McDowell.
:00:16. > :00:24.Hello, welcome to our look ahead out what the newspapers will bring you
:00:25. > :00:29.tomorrow. With me is Penny Smith and Liam Halligan. We will be testing
:00:30. > :00:34.your World Cup knowledge soon. The Telegraph leads with the speech by
:00:35. > :00:41.Mark Carney where he warned interest rates could rise sooner than
:00:42. > :00:48.expected. And Jennifer Lopez kicks off the World Cup party in Brazil.
:00:49. > :00:53.The Guardian says President Obama could lead the US back into Iraq.
:00:54. > :00:56.Mark Carney's speech is also the lead for the Financial Times and
:00:57. > :01:01.Jennifer Lopez also makes the front page of the Metro as she performed
:01:02. > :01:05.at the opening ceremony in Sao Paulo.
:01:06. > :01:10.We have Liam here tonight to talk about all matters about interest
:01:11. > :01:15.rates and Penny as well. You are an economics expert. I did do A`level
:01:16. > :01:22.economics, did you believe? I did not want to. You are the non`dismal
:01:23. > :01:34.scientist. Bank chief hints at an early rise in interest rates. There
:01:35. > :01:37.has been a lot of guesswork about when exactly interest rates are
:01:38. > :01:41.going to rise. A lot of guesswork and soothsaying.
:01:42. > :01:47.tonight is the first hawkish words from this governor of the
:01:48. > :01:54.England, Mark Carney. The city, features markets and so on have
:01:55. > :01:59.tended to prise an interest rate rise from the current historic low
:02:00. > :02:08.of 0.5% where there have been since March 2009, they are prising that in
:02:09. > :02:14.Q1 or Q2 next year. What do you mean? Quarter one or call to two. I
:02:15. > :02:26.was thinking question one or question two. Please turn over your
:02:27. > :02:30.papers now! Are we on Dave now? The Governor of the Bank of England is
:02:31. > :02:40.now saying this could happen sooner than the markets expect. So it could
:02:41. > :02:48.be Q3 or Q4 this year? It is not far in `` far`away. It could be welcomed
:02:49. > :02:51.by older people who have been hammered by no interest rates and
:02:52. > :02:55.quantitative easing. But there are many households across the country
:02:56. > :02:58.who will be concerned about the prospects of a rise in interest
:02:59. > :03:02.rates. They keep saying they will not put them up the huge amount.
:03:03. > :03:08.Some people are mortgaged to the hilt so even a small amount could
:03:09. > :03:13.send them over. One hopes that with it being eased in, people can maybe
:03:14. > :03:18.make arrangements to sort things out. One would hope. What tends to
:03:19. > :03:24.happen is once interest rate cycle start to rise, if the situation
:03:25. > :03:30.deteriorates in financial markets, then the rate rises can come quite
:03:31. > :03:35.fast is the financial system comes under pressure. I do not understand
:03:36. > :03:38.that. The whole point is presumably, they are talking about the housing
:03:39. > :03:42.market is now the greatest risk, so if you try and rain that back,
:03:43. > :03:48.surely you rein back a little bit. You do not want to rein back so far.
:03:49. > :03:51.Of course, but it is not always in the hands of the Governor of the
:03:52. > :03:56.Bank of England. If the currency becomes weak, they have to raise
:03:57. > :04:02.interest rates. The second thing is, as many viewers will attest, even
:04:03. > :04:06.though the Bank of England is charging not .5%, the banks are
:04:07. > :04:10.charging a lot more. The wedge between the base rate and the rate
:04:11. > :04:14.people pay can easily open up. Let's not focus only on interest rates.
:04:15. > :04:18.Those awful lot else in this speech. We had the first indications
:04:19. > :04:23.of the regulation of the mortgage market, releases the early 80s, with
:04:24. > :04:28.the Chancellor who also spoke at Mansion House tonight, George
:04:29. > :04:34.Osborne, saying the bank will have powers, if it so chooses, to cap new
:04:35. > :04:41.mortgages at 3.5 times annual income. That will be a problem for
:04:42. > :04:49.people in parts of the country. The south. There is a north`south
:04:50. > :04:52.divide. The South is getting more and more expensive. It does seem
:04:53. > :04:57.ridiculous to me that we can have places in the south`east which are
:04:58. > :05:02.so expensive to buy that nobody can afford to live in them any more. If
:05:03. > :05:06.you are in them, you are essentially probably thinking of selling up and
:05:07. > :05:10.moving somewhere else and then of course the worry about if I ever
:05:11. > :05:17.want to get back in again, it will have escaped. The Guardian has got
:05:18. > :05:22.this as well. Its headline referring to these new powers that the Bank of
:05:23. > :05:26.England will have, bank gets new powers to curb mortgages to prevent
:05:27. > :05:34.bubble, sweeping new powers to control the size of mortgages.
:05:35. > :05:38.George Osborne did not want to sound too panicky in his speech saying, no
:05:39. > :05:44.need to be alarmed, but we had better act now. I still do not
:05:45. > :05:50.understand how we have been able to borrow more than three times your
:05:51. > :05:54.salary. I remember buying my first house and they were even if he about
:05:55. > :06:00.borrowing twice my annual salary. In must have been you! We were up to
:06:01. > :06:05.four or five times up until the Liman Brothers collapse. I have not
:06:06. > :06:09.seen the editorial but it would not surprise me that the editorial
:06:10. > :06:13.pointed out that the Chancellor really risks being accused of having
:06:14. > :06:17.an incoherent policy with one foot on the accelerator with one foot on
:06:18. > :06:22.the break. He has got his Help to Buy which has raised `` revved up
:06:23. > :06:28.many parts of the country. Now he's saying you can slow down the policy
:06:29. > :06:32.I have implemented. Ed Balls is coming out and saying what we need
:06:33. > :06:38.to do is increase supply, build more houses and that will take the heat
:06:39. > :06:41.out. I remember that from economics, the laws of supply and demand. Apart
:06:42. > :06:47.from in purfume it works the other way! He called the housing market
:06:48. > :06:51.the greater risk to the economy and talked about building more homes but
:06:52. > :06:55.the coalition have been talking about building more homes every year
:06:56. > :07:02.since they have been in office and last year we completed only 115,000
:07:03. > :07:06.homes which is almost the lowest peacetime number since the General
:07:07. > :07:11.strike. We need 250,000 just to accommodate the natural increase in
:07:12. > :07:15.household numbers. Can I move you on? Staying with the
:07:16. > :07:28.Guardian but looking at the situation in Iraq. Obama acts to
:07:29. > :07:33.stop jihadis getting footholds. You might argue they have already got a
:07:34. > :07:39.foothold. The White House say they do not mean troops on the ground.
:07:40. > :07:45.What else is there? Drones, I suppose. It seems like such a mess.
:07:46. > :07:49.We went in there, allegedly, for the best motives, and unfortunately, all
:07:50. > :07:56.we have done is make it more of a mess than it was before. I just feel
:07:57. > :08:02.so sorry for all those poor people who, people in cities like Mosul and
:08:03. > :08:06.Tikrit who are having to face up to the decision and that awful decision
:08:07. > :08:13.about whether they should up sticks and just leave with what they can
:08:14. > :08:18.cram in. Half a million have been displaced. When you say half a
:08:19. > :08:24.million, it is just a number. It is me, you, and going, I'm going to
:08:25. > :08:28.leave my job, my house, my garden which I have lovingly tended, all
:08:29. > :08:33.those beautiful roses, and I'm going to up sticks with my children, my
:08:34. > :08:40.wife, husband, whoever else, and who knows when I am going to be able to
:08:41. > :08:43.stop? The UN security council saying the humanitarian situation around
:08:44. > :08:51.Mosul is dire and worsening each minute. That is a pretty damning
:08:52. > :08:56.indictment, if you like. Of course, you do sense, with the best will in
:08:57. > :09:02.the world, without wishing to denigrate what our Armed Forces have
:09:03. > :09:06.been doing over many years, it does really bring back into focus the
:09:07. > :09:11.lack of planning, post the invasion. But some commentators
:09:12. > :09:19.would say these problems go back way beyond 2004. Would you have wanted
:09:20. > :09:22.to live under Saddam Hussein's regime with oppression and torture
:09:23. > :09:27.and the rest of it? It is the devil and the deep blue sea. It is an
:09:28. > :09:35.awful situation and it is not going to get any better soon. A lot of the
:09:36. > :09:40.insurgents seem to have come from Syria, which shows you the link
:09:41. > :09:44.between the civil war in Syria... It also begs the question, had
:09:45. > :09:50.Parliament not acted to stop military action by the West in
:09:51. > :09:56.Syria, could the situation have been inflamed even more? The Financial
:09:57. > :10:00.Times, and a little feature on the front page here, passport backlog,
:10:01. > :10:05.Theresa May appears not to have prepared sufficiently for a surge in
:10:06. > :10:10.passport applications, thousands of Britons unable to travel despite a
:10:11. > :10:13.report in July saying there would be an extra 350,000 applications.
:10:14. > :10:18.Everyone is going on holiday, or trying to! It is a 12 year high, and
:10:19. > :10:22.I do not know if you have been reading this morning's papers, so
:10:23. > :10:28.many sad stories, grandparents who cannot go and see grandchildren in
:10:29. > :10:32.other countries who might not be able to get there, various other sad
:10:33. > :10:37.stories about people being told to put their holidays back, then back
:10:38. > :10:45.again, then losing their deposit. Can you imagine? They are trying to
:10:46. > :10:51.improve... Theresa May is trying to take some remediable action today,
:10:52. > :10:55.she said that families with children would be given emergency documents,
:10:56. > :10:59.a emergency travel documents. She said that if holidays are imminent,
:11:00. > :11:05.your application will be fast tracked without you having to pay
:11:06. > :11:12.fees of up to ?128 in order to make that happen. The Prime Minister has
:11:13. > :11:18.been saying that the extra 350,000 passports, it is around 30%, in his
:11:19. > :11:24.words, less than 10% that have had a problem. Of course, many people will
:11:25. > :11:28.point to not just the public sector unions, they will say this is
:11:29. > :11:36.because of staffing cuts and budget savings in the Passport Office. The
:11:37. > :11:38.Financial Times as it is about overseas embassies shutting down
:11:39. > :11:46.their passport services. We have got to talk about... There is something
:11:47. > :11:50.going on in Brazil, I believe. We were talking before this, Martina
:11:51. > :11:57.and I, saying that you know more about shuttlecocks and badminton and
:11:58. > :12:02.football. I do! The best ones are made from the left wing of a goose,
:12:03. > :12:08.don't ask me why, but I carry this information with me! Let's shoyu
:12:09. > :12:18.Jennifer Lopez, jumping up and down with glee. Bless her. Terrible sound
:12:19. > :12:24.quality, but what a fantastic spectacle. I didn't watch it, but I
:12:25. > :12:31.love her, I think she is great. That looks like a kind of dish cloth that
:12:32. > :12:36.has gone through the wash a couple of times. You thought it looked like
:12:37. > :12:42.she had taken her arm off and went, oh no, my under bits are shredded! I
:12:43. > :12:50.wish I looked that good in a dish cloth. We will be back in the next
:12:51. > :12:52.hour, they will be here, similarly dressed! Back for another look at
:12:53. > :13:02.the papers. BBC News, because President Obama is
:13:03. > :13:03.considering all the options available to help the Iraqi
:13:04. > :13:06.government deal with Lee is a missed insurgency threatening the country.
:13:07. > :13:16.Coming up next, it is time for Sportsday. `` the Islamist
:13:17. > :13:18.Hello and welcome to Sportsday, I'm Damian Johnson on the day Brazil
:13:19. > :13:30.No ordinary Joe, Yorkshire's Root hits his third test
:13:31. > :13:34.century to rescue England after a rocky start on the opening day