12/06/2014 The Papers

And with news of the first test at Lord's and Raymond Dowell's start,

that is all in Sportsday after The Papers `` Graeme McDowell.

Hello, welcome to our look ahead out what the newspapers will bring you

tomorrow. With me is Penny Smith and Liam Halligan. We will be testing

your World Cup knowledge soon. The Telegraph leads with the speech by

Mark Carney where he warned interest rates could rise sooner than

expected. And Jennifer Lopez kicks off the World Cup party in Brazil.

The Guardian says President Obama could lead the US back into Iraq.

Mark Carney's speech is also the lead for the Financial Times and

Jennifer Lopez also makes the front page of the Metro as she performed

at the opening ceremony in Sao Paulo.

We have Liam here tonight to talk about all matters about interest

rates and Penny as well. You are an economics expert. I did do A`level

economics, did you believe? I did not want to. You are the non`dismal

scientist. Bank chief hints at an early rise in interest rates. There

has been a lot of guesswork about when exactly interest rates are

going to rise. A lot of guesswork and soothsaying.

tonight is the first hawkish words from this governor of the

England, Mark Carney. The city, features markets and so on have

tended to prise an interest rate rise from the current historic low

of 0.5% where there have been since March 2009, they are prising that in

Q1 or Q2 next year. What do you mean? Quarter one or call to two. I

was thinking question one or question two. Please turn over your

papers now! Are we on Dave now? The Governor of the Bank of England is

now saying this could happen sooner than the markets expect. So it could

be Q3 or Q4 this year? It is not far in `` far`away. It could be welcomed

by older people who have been hammered by no interest rates and

quantitative easing. But there are many households across the country

who will be concerned about the prospects of a rise in interest

rates. They keep saying they will not put them up the huge amount.

Some people are mortgaged to the hilt so even a small amount could

send them over. One hopes that with it being eased in, people can maybe

make arrangements to sort things out. One would hope. What tends to

happen is once interest rate cycle start to rise, if the situation

deteriorates in financial markets, then the rate rises can come quite

fast is the financial system comes under pressure. I do not understand

that. The whole point is presumably, they are talking about the housing

market is now the greatest risk, so if you try and rain that back,

surely you rein back a little bit. You do not want to rein back so far.

Of course, but it is not always in the hands of the Governor of the

Bank of England. If the currency becomes weak, they have to raise

interest rates. The second thing is, as many viewers will attest, even

though the Bank of England is charging not .5%, the banks are

charging a lot more. The wedge between the base rate and the rate

people pay can easily open up. Let's not focus only on interest rates.

Those awful lot else in this speech. We had the first indications

of the regulation of the mortgage market, releases the early 80s, with

the Chancellor who also spoke at Mansion House tonight, George

Osborne, saying the bank will have powers, if it so chooses, to cap new

mortgages at 3.5 times annual income. That will be a problem for

people in parts of the country. The south. There is a north`south

divide. The South is getting more and more expensive. It does seem

ridiculous to me that we can have places in the south`east which are

so expensive to buy that nobody can afford to live in them any more. If

you are in them, you are essentially probably thinking of selling up and

moving somewhere else and then of course the worry about if I ever

want to get back in again, it will have escaped. The Guardian has got

this as well. Its headline referring to these new powers that the Bank of

England will have, bank gets new powers to curb mortgages to prevent

bubble, sweeping new powers to control the size of mortgages.

George Osborne did not want to sound too panicky in his speech saying, no

need to be alarmed, but we had better act now. I still do not

understand how we have been able to borrow more than three times your

salary. I remember buying my first house and they were even if he about

borrowing twice my annual salary. In must have been you! We were up to

four or five times up until the Liman Brothers collapse. I have not

seen the editorial but it would not surprise me that the editorial

pointed out that the Chancellor really risks being accused of having

an incoherent policy with one foot on the accelerator with one foot on

the break. He has got his Help to Buy which has raised `` revved up

many parts of the country. Now he's saying you can slow down the policy

I have implemented. Ed Balls is coming out and saying what we need

to do is increase supply, build more houses and that will take the heat

out. I remember that from economics, the laws of supply and demand. Apart

from in purfume it works the other way! He called the housing market

the greater risk to the economy and talked about building more homes but

the coalition have been talking about building more homes every year

since they have been in office and last year we completed only 115,000

homes which is almost the lowest peacetime number since the General

strike. We need 250,000 just to accommodate the natural increase in

household numbers. Can I move you on? Staying with the

Guardian but looking at the situation in Iraq. Obama acts to

stop jihadis getting footholds. You might argue they have already got a

foothold. The White House say they do not mean troops on the ground.

What else is there? Drones, I suppose. It seems like such a mess.

We went in there, allegedly, for the best motives, and unfortunately, all

we have done is make it more of a mess than it was before. I just feel

so sorry for all those poor people who, people in cities like Mosul and

Tikrit who are having to face up to the decision and that awful decision

about whether they should up sticks and just leave with what they can

cram in. Half a million have been displaced. When you say half a

million, it is just a number. It is me, you, and going, I'm going to

leave my job, my house, my garden which I have lovingly tended, all

those beautiful roses, and I'm going to up sticks with my children, my

wife, husband, whoever else, and who knows when I am going to be able to

stop? The UN security council saying the humanitarian situation around

Mosul is dire and worsening each minute. That is a pretty damning

indictment, if you like. Of course, you do sense, with the best will in

the world, without wishing to denigrate what our Armed Forces have

been doing over many years, it does really bring back into focus the

lack of planning, post the invasion. But some commentators

would say these problems go back way beyond 2004. Would you have wanted

to live under Saddam Hussein's regime with oppression and torture

and the rest of it? It is the devil and the deep blue sea. It is an

awful situation and it is not going to get any better soon. A lot of the

insurgents seem to have come from Syria, which shows you the link

between the civil war in Syria... It also begs the question, had

Parliament not acted to stop military action by the West in

Syria, could the situation have been inflamed even more? The Financial

Times, and a little feature on the front page here, passport backlog,

Theresa May appears not to have prepared sufficiently for a surge in

passport applications, thousands of Britons unable to travel despite a

report in July saying there would be an extra 350,000 applications.

Everyone is going on holiday, or trying to! It is a 12 year high, and

I do not know if you have been reading this morning's papers, so

many sad stories, grandparents who cannot go and see grandchildren in

other countries who might not be able to get there, various other sad

stories about people being told to put their holidays back, then back

again, then losing their deposit. Can you imagine? They are trying to

improve... Theresa May is trying to take some remediable action today,

she said that families with children would be given emergency documents,

a emergency travel documents. She said that if holidays are imminent,

your application will be fast tracked without you having to pay

fees of up to ?128 in order to make that happen. The Prime Minister has

been saying that the extra 350,000 passports, it is around 30%, in his

words, less than 10% that have had a problem. Of course, many people will

point to not just the public sector unions, they will say this is

because of staffing cuts and budget savings in the Passport Office. The

Financial Times as it is about overseas embassies shutting down

their passport services. We have got to talk about... There is something

going on in Brazil, I believe. We were talking before this, Martina

and I, saying that you know more about shuttlecocks and badminton and

football. I do! The best ones are made from the left wing of a goose,

don't ask me why, but I carry this information with me! Let's shoyu

Jennifer Lopez, jumping up and down with glee. Bless her. Terrible sound

quality, but what a fantastic spectacle. I didn't watch it, but I

love her, I think she is great. That looks like a kind of dish cloth that

has gone through the wash a couple of times. You thought it looked like

she had taken her arm off and went, oh no, my under bits are shredded! I

wish I looked that good in a dish cloth. We will be back in the next

hour, they will be here, similarly dressed! Back for another look at

the papers. BBC News, because President Obama is

considering all the options available to help the Iraqi

government deal with Lee is a missed insurgency threatening the country.

Coming up next, it is time for Sportsday. `` the Islamist

Hello and welcome to Sportsday, I'm Damian Johnson on the day Brazil

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