12/06/2014 The Papers


12/06/2014

No need to wait until tomorrow morning to see what's in the papers. A lively and informed conversation about the next day's headlines.


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

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

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

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

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

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Mark Carney where he warned interest rates could rise sooner than

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

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

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

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

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at the opening ceremony in Sao Paulo.

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

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

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

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

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

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going to rise. A lot of guesswork and soothsaying.

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tonight is the first hawkish words from this governor of the

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

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

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

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

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

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

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

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

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

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quantitative easing. But there are many households across the country

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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the Chancellor who also spoke at Mansion House tonight, George

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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pointed out that the Chancellor really risks being accused of having

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

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

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

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

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

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

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

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

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the coalition have been talking about building more homes every year

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

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homes which is almost the lowest peacetime number since the General

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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stop? The UN security council saying the humanitarian situation around

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

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

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

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

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lack of planning, post the invasion. But some commentators

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

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

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

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

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

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

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Parliament not acted to stop military action by the West in

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

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

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

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passport applications, thousands of Britons unable to travel despite a

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

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

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

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

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

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

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

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

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

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

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your application will be fast tracked without you having to pay

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

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

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

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

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

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Financial Times as it is about overseas embassies shutting down

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

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

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

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

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

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

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

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

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

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

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

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

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the papers. BBC News, because President Obama is

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considering all the options available to help the Iraqi

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

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

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

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No ordinary Joe, Yorkshire's Root hits his third test

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century to rescue England after a rocky start on the opening day

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