Favour over the past month. Weve seen sterling rise that will help temper the Price Pressures from imports. Weve also seen other pressures in the markets where theyve been raising some questions about the Bank Of Englands credibility, as in Mortgage Rates going up without decisions being made that has all calmed down, too. And the public� s expectations of where inflation is going, which were really very high, have now begun to temper. So thats also going in the banks favour. But a crucial issue is that they have raised rates by 5 the impact of that has really taken some time to filter through into the economy, there is sort of turning the type of rate rises on. Turning the tap. We are beginning to see the impact of that now weve seen in the Housing Market, weve seen it in some corporate insolvencies too. So that all leads back to this Balancing Act between crushing inflation, but avoiding a downturn its a tight rope and we are probably approaching the most narrow, trickiest part of that tight rope. Lets speak to george buckley, chief uk euro area economist at nomura. Good morning to you, george. So what do you think the bank will do today . I what do you think the bank will do toda . ~ f what do you think the bank will dotoda . ~ j. , do today . I think theyll raise Interest Rates, do today . I think theyll raise Interest Rates, there do today . I think theyll raise Interest Rates, there is do today . I think theyll raise Interest Rates, there is little l Interest Rates, there is little doubt theyll do that, everybody is forecasting it. But the big question is whether they will do a quarter of a percent or half a percent. Remember last time, every economist was looking for a quarter and they did a half. Could they repeat that . I think its unlikely because some of the Economic News weve heard has actually improved, weve seen inflation week and a bit, weve seen some of the surveys become a bit softer, weve seen employment not as strong, so i think all those reasons are reasons they wont do quite as much as they did last time. So much as they did last time. 50 looking much as they did last time. So looking at Interest Rates of 5. 25 percent today going forward, in your opinion. Of course well find out in lunchtime. What impact do you think thatll have . We are in that tricky stage we will start to see the impact that these last 14 rises have had . The reason for last 14 rises have had . The reason for that last 14 rises have had . The reason for that is last 14 rises have had . The reason for that is when last 14 rises have had . Iie reason for that is when you look at past monetary tightening, like the last 20 years or so, people used to have floating Rate Mortgages, but a lot of people have five year fixed but a lot of people have five yearfixed Rate Mortgages so they will be impacted for quite some time. Itll take a number of months, may be years before everybody goes through the system of having to refix their mortgages and pay more. So the impact on the economy might not be felt for some time yet, and thats a big risk in itself because it means that if you dont see, as the Bank Of England, the rise in Interest Rates having an effect on your economy, than they might do too much. And i think thats one of the risks as they could go too far. �. ,. ,. , i. Far. And how far do you think the ll far. And how far do you think theyll go . Far. And how far do you think theyll go . When far. And how far do you think theyll go . When do far. And how far do you think theyll go . When do you far. And how far do you think| theyll go . When do you think rates will peak and when will they start to go down again . I think the Bank Of England will be raising bit democrat Interest Rates for a few times yet, the markets are thinking theyll go almost a 6 , maybe 575. 5. 75 . When will theyll go almost a 6 , maybe 575. 5. 75 . When will they come down . I think theyll need to hold rates high to get rid of this inflation problem, but i wouldnt be surprised if towards the end of next year, we start to see Interest Rate cuts. I dont think we will get back to the same levels we started from their note, Interest Rates are permanently higher. Interest rates are permanently hiaher. ,. , higher. Interesting, george, thank yom higher. Interesting, george, thank you. Well higher. Interesting, george, thank you. Well be higher. Interesting, george, thank you. Well be across i higher. Interesting, george, i thank you. Well be across that news here on bbc news and we will update you as soon as the Bank Of England makes its announcements. To the us now and a story we first brought you this time yesterday, the move by Credit Rating agency fitch to strip the us of its top tier aaa Credit Rating. Shares on wall street have fallen sharply following the downgrade, and it has drawn an angry response from us treasury secretary janet yellen, who has called the decision puzzling and unwarranted. 0ur north America Business correspondent Michelle Fleury has more from new york. Just like everybody has a Credit Report to determine how much they can borrow, the Us Government has its own Credit Report and for the First Time Since 2011 that rating has been downgraded from aaa to aa fitch said. The assault on the Capital Onjanuary 6th was a factor in its decision, contributing to what they perceive as a steady deterioration in standards of governance over the last 20 years. From wall street to washington, reaction was swift us markets tumbled, with tech stocks leading the nasdaq lower while Bond Investors pushed up treasury yields higher. In washington, treasury secretary janet yellen reacted with anger. I strongly disagree with fitchs decision, and i believe it is entirely unwarranted. Its flawed assessment is based on outdated data and fails to reflect improvements across a range of indicators, including those related to governance that weve seen over the past two and a half years. 0ther Democrats Use the downgrade as an opportunity in the recent debt limit fight while republicans blame joe biden and democrats for trillions of dollars in new spending. Many economists dismissed the downgrade, including Jpmorgan Chase ceo jamie dimon, who called it ridiculous and said the decision ultimately didnt really matter. And he may not be wrong. Us treasuries, that is, Government Ious remain the bedrock of the Global Financial system, despite this latest knock to its reputation. Michelle flory there. Among the big names saying they are puzzled by the downgrade by fitch is mohamed el erian, chief economic adviser to the insurance giant allianz. He told the bbc the move wont affect the us economy, but it will fuel the political debate over the countrys finances so i dont think therell be an economic or fiscal impact by that, i mean that this announcement will not reduce investment, will not reduce the attractiveness of the us economy so thats the economy side. And then on the fiscal side, this in itself will not increase the Borrowing Cost for the us in fact, if you look at what they call credit default swaps, which measure credit worthiness, they hardly moved today. And you would expect them to move if the market was worried about that. So it will not impact the fiscal side or the economic side. But it will do is fuel an already polarised political narrative, both domestically and internationally. For some, though, the Fitch Downgrade has highlighted the important issue of americas soaring debt levels. Us National Debt is now over 32 trillion or almost 100,000 per citzen. You know, you look at the us debt to gdp in the year 2000, we were under 40 . Then you look at 2010, we were sitting around 85 . And now, we are at 126 . So we havent really had a cohesive plan as a country to reign in our debt at all, its been exploding on the upside whether it was in the Trump Administration or biden, weve got that issue. So i think when fitch talks about fiscal concerns, i dont think anyone can really argue with that. Lets look at the impact this has had on global markets, because this time yesterday was the initial reaction and we saw japan and hong kong were down 2 for most of the trading session, markets across asia were all a lot lower. Today thatis were all a lot lower. Today that is continuing. If we look at wall street, because michelle mentioned the fact there was a sell off on wall street, look at the tech waited nasdaq, down 2 . The snp 5000 the nasdaq, down 2 . The snp 5000 the snp 500 nasdaq, down 2 . The snp 5000 the snp 500 down 1. 38 . Lets speak to chris beauchamp, chief market analyst at ig. As far as the Share Markets are concerned, do you think this was an excuse to take some profits . Because certainly for japan on wall street, theyve had a good run lately. Exactly that, ithink had a good run lately. Exactly that, i think we had a good run lately. Exactly that, i think we are had a good run lately. Exactly that, i think we are now had a good run lately. Exactly that, i think we are now intol that, i think we are now into august, Trading Moves can be exaggerated. If you look at nasdaq with tech stocks, that was up 40 on the year. This downgrade doesnt tell us anything we dont already know, although us debt is on an unsustainable trajectory. Its unsustainable traectory. Its also important unsustainable trajectory. Its also important to point out the us lost its aaa crown back in 2011, and at the time there was a huge reaction of concern about what that meant whereas now, having been there before, it doesnt feel like such a big deal in terms of market reaction, you think . Exactly, fitch didnt reaction, you think . Exactly, fitch didnt tell reaction, you think . Exactly, fitch didnt tell us reaction, you think . Exactly, fitch didnt tell us anything l fitch didnt tell us anything we didnt already know. Certainly we know about this position on us debt. Janet yellen has a point, it doesnt change anything in terms of demand, they are still. But chris, uk demand, they are still. But chris, uk gdp demand, they are still. But chris, uk gdp data demand, they are still. But chris, uk gdp data ratio is around 85 . The us is at 126 and its likely to go up, thats what fitch is pointing out . ,. Out . Yes, they are right, there needs to out . Yes, they are right, there needs to be out . Yes, they are right, there needs to be a out . Yes, they are right, there needs to be a plan, out . Yes, they are right, there needs to be a plan, i out . Yes, they are right, there needs to be a plan, ithink needs to be a plan, i think its the lack of a plan that bothers everyone in the longer term. You are the Worlds Largest credit nation, so you do have some leeway, so the markets would like to see a plan to stop this rise which is continuing in a very dramatic fashion. ,. ,. ,. , continuing in a very dramatic fashion. ,. ,. , ~. , fashion. Chris, good to talk to ou. Lets return to the uk because were expecting more developments in the governments plan to boost britains chip industry. Back in may, ministers announced a National Semiconductor strategy and £1 billion in funding to boost Chip Production in the uk. But that was criticised by some in the industry as a drop in the ocean compared with the 52 billion being spent by the us or the 43 Billion Euros commited by the european union. The next step is to appoint a uk Semiconductor Advisory panel, bringing together people from industry, academia and government russ shaw is founder of tech london advocates, which campaigns for the future of the Uk Technology sector. Russ, we cant hear you, i think youre muted. No, we still cant hear you, im afraid. Lets persevere with that, Hopefully Russ will be able to join us that, Hopefully Russ will be able tojoin us injust a second. Have you tried the mute button . We will try and return to russ a little later in the programme. Around the world and across the uk, this is bbc news. Bbc news bringing you different stories from across the uk. When i take my sugar to tea all The Boys Arejealous of me. The blaze family are absolutely potty about teapots. Theyve spent a quarter of a Million Pounds on the biggest collection in the uk, everything from politicians to pop culture and some wild and wacky creations. Ive got a favourite, which is a Harley Davidson teapot, that was made, and i saw the man make it and i saw how hard it was for him to make it. And your one is. . Diana. Because diana was my favourite person. People say, why collect pots . And i always say, well, why not . J theres so many different weird and wonderful things. And once people get into the museum and they can actually see the different. Things that we do, weve got | ones that are size at this sortl of size and weve got a 12 foot teapot in the garden, | you never can believe the things that. People can make. Youre live with bbc news. To asia now where shares of Chinese Technology companies have fallen sharply after chinas cyberspace regulator said under 18s should be limited to two two hours a day on their smartphones. The Cyberspace Administration of china also wants to bar them from accessing the internet on their devices between 10pm and 8am. Katie silver in our Singapore Bureau has been looking into this. You know what, this would be a gift for me at home, i would be able to say to the kids, its not my decision, is the government. Youll make people would be surprised at how stringent these limits are, you can compare it to how their stomach or your kids use their screen time. Stomach or your kids use their screen time. That time limit is onl if screen time. That time limit is only if you screen time. That time limit is only if you are screen time. That time limit is only if you are between screen time. That time limit is only if you are between 1618, j only if you are between 16 18, if you are between 6 8, there only allowed one hour a day. If you are aged under eight years of age, a few minutes of screen time. Parents will be able to opt out of this and they are seeking feedback, the government, overthe seeking feedback, the government, over the next month before they put this into effect. As you say, huge impact on the share price. The Video Service app dropped about 7 . And ten sentiment which is the Company Behind it we chat, dropped about 3 . Will this create a huge headache for Tech Companies . And will it be so hard to implement that they just make bad news altogether . It is a headache, its a hot debate in my household every single day. Katie, thank you very much indeed. Lets return to the uk because were expecting more developments in the governments plan to boost britains chip industry. Russ shaw is founder of tech london advocates, which campaigns for the future of the Uk Technology sector. Russ, can we hear you . Russ, can we hearyou . I russ, can we hear you . I hope so, sally russ, can we hear you . I hope so, sally. Ironically russ, can we hear you . I hope so, sally. Ironically the russ, can we hear you . I hope so, sally. Ironically the tech i so, sally. Ironically the tech wasnt working so, sally. Ironically the tech wasnt working on so, sally. Ironically the tech wasnt working on this so, sally. Ironically the tech | wasnt working on this story. Talk us through this advisory panel, we think we might be hearing about it today, who do you think might be on it . I expect an announcement to come out later today, and we are looking at a combination of leaders from the industry, from government and academia to build the bridge between the Semiconductor Strategy announced in may and working with the private sector to ensure britain has a vibrant semiconductor ecosystem. Ross, for a lona semiconductor ecosystem. Ross, for a long time. Semiconductor ecosystem. Ross, for a long time, you semiconductor ecosystem. Ross, for a long time, you at semiconductor ecosystem. Ross, for a long time, you at london i for a long time, you at London Tech Advocates have been pushing the government to come up pushing the government to come up with a strategy for the semiconductor industry. When you look at the history of arm holdings which was ourjewel in the crown and how that all played out, or which is far too late to this . I played out, or which is far too late to this . Late to this . I dont think its too late. Late to this . I dont think its too late. I late to this . I dont think its too late. I think late to this . I dont think. Its too late. I think having late to this . I dont think i its too late. I think having a strategy in place now is really important for the industry to understand what is the governments role going to be, what are the priorities for the sector . We will not build high end fads, as they call them, like the us and eu are committed to do, and they are committed to do, and they are committed to do, and they are committed to spending billions to do that. We have a vibrant semiconductor sector, and we are looking to invest heavily in ip. Im hoping the next part of the strategy coming from the government in the autumn will be about the Manufacturing Element of it. The Prime Minister talks About Britain becoming a science and Technology Powerhouse we really cant have that unless its underpinned by strong Computing Power and a chip sector thats incredibly vibrant. Ironically we are about to cure on the nasdaq, i heard they were looking at a flotation somewhere between 60 70 flotation somewhere between 60 70 billion, and that was created in the uk. 70 billion, and that was created in the uk. Softbank are busy looking created in the uk. Softbank are busy looking at created in the uk. Softbank are busy looking at an created in the uk. Softbank are busy looking at an ipo created in the uk. Softbank are busy looking at an ipo as created in the uk. Softbank are busy looking at an ipo as you. Busy looking at an ipo as you mention. Good for your take on that, russ. To australia now where thousands of households have faced a steep jump in Energy Prices in recent weeks. Some have seen bills go up 25 as regulators set prices for the coming financial year. The government came to power promising Cheaper Energy by 2025. It argues a shift to Renewable Energy sources will be cheaper for consumers in the long run. Butjuly� s rises have been a blow to people already struggling with The Cost Of Living as phil mercer reports from sydney. Home should be a cosy sanctuary in sydney for deanna 0lmos. But rising costs have made electricity almost unaffordable. So she does what she can to beat the winter chill, but worries about the future. Power prices will increase by 20 25 . I cannot afford that. I dont know how we are going to survive this time, with a huge cost of living rise, the rising of energy bills and, you know, really extreme weather. Western sydneys First Community battery stores excess solar energy from nearby houses. Residents without Rooftop Panels can join the scheme that aims to reduce soaring bills. People need protection from the heat, from the cold, and at the end of the day, they are finding they cannot afford it. So i believe these patches right across the board will play a dynamic role in reducing costs for our communities. Thats what its all about. And australias politicians are feeling a sense of urgency. Look, we just have to do everything we can to try and get as much Renewable Energy into the ground as soon as possible. We know thats the cheapest way to replace the ageing and retiring coal fired power. Its a complicated process, were doing the Industrial Revolution in about 15 years. 0ur priority in new south wales, and mine as the minister for climate change, is to make sure we do our bit to reduce our emissions as quickly as possible. Energy prices in australia are fuelled by various factors high inflation has had a major impact. There have been expensive upgrades to Ageing Transmission Lines and distribution networks. Then theres volatility in Global Energy markets, caused by the war in ukraine. Its a real pressure for families and businesses, as well, to accommodate those rising costs, you know, a fifth or a quarter is a largejump. In the longer term, what we are hoping is that renewable electricity will also drive down the costs. As we become more self sufficient in australia. The artwork for the Community Battery explores the indigenous concept that its everyones responsibility to care for the land. Phil mercer, bbc news, sydney. Finally should Business Leaders spend less time being analytical, and more time cultivating their emotional and intuitive side . Thats the argument of this years business book of the year. Its called leader as healer� and its author says todays boss must be skilled in mindfulness and deep listening, and possess a clear and wholehearted sense of service, mission and purpose. Well, lets talk to the author, nicholas janni. Leader as healer, welcome to the programme. Do tell, it sounds like utopia to me. How will you get there, how do our leaders get there . Leaders get there . Good morning. Leaders get there . Good morning, sally. Leaders get there . Good morning, sally. Leaders| leaders get there . Good. Morning, sally. Leaders get there by taking their development seriously. And with development. And i think the empathy it has not only. Its more important than ever. Looking at recent gallup polls on engagement, disengagement is around 8 worldwide, it is across the conversation, resulting in trillions in lost revenue. So its taking it seriously, but to do something. Dominate national. To be seen, respected, and listen to. Its not so much the government, its who we are. Necklace, i must confess, we are struggling to hear you clearly, which is such a shame because we desperately want to hear what you are saying. Lets persevere a little longer and see if things improve. Because what i want to ask you is, when we look at some of the leaders who are grabbing all the attention right now that get all the headlines that many focus on, the likes of elon musk, you look at people such as donald trump, who is very much in the headlines this week, there is such a display of different styles of leadership, and many dont see those types of leaders as a healer by any means succulent no i think they are in toxic leadership. We need leaders bringing appealing. We need leaders bringing appealing we need leaders bringing appealing. We need leaders bringing auealinu. , appealing. Nicholas, we will have to leave appealing. Nicholas, we will have to leave it appealing. Nicholas, we will have to leave it there appealing. Nicholas, we willj have to leave it there because sadly the audio is not great on this interview, i do apologise, but thank you very much indeed for talking to us, the author of business book of the year, leader as healer. Lets show you another flash of Financial Markets before we wrap up the programme, we apologise for wrapping up the interview, we are at the mercy of technology. Katie interestingly talking about the big movers on the market in mainland china, those Technology Companies and Gaming Companies are down. Ill see you soon. Hello there. Wednesdays weather did not look or feel particularly summer like across large swathes of the uk, thanks to an area of low pressure, this swirl of cloud on the satellite picture. This was named Storm Patricia by the French Weather Service because of impacts it had in france, but particularly on the southern flank of that storm system, weve had some very strong winds. There have been some really heavy downpours, but that area of low pressure is now rolling away eastwards. In its wake, though, were going to be left with a brisk northerly wind, which will make it feel decidedly cool over the next couple of days. That cool breeze a big feature of thursdays weather, a mix of sunny spells and showers. Some quite large areas of cloud, particularly across northern parts of scotland, where we will see some bits and pieces of rain. But for southern scotland, Northern Ireland, england and wales, its a mixed bag some spells of sunshine, some showers, some of which will be heavy and thundery. But there will be places that avoid the showers and stayjust about dry. Temperatures ranging from 14 celsius in stornoway, to 22 in london. And then as we head through thursday night, we will continue to see some of these showers. Some clear spells here and there. I think out west, it will be mostly dry by the end of the night. Temperatures typically holding up at between 11 14 celsius. So we head into friday, still feeling the effects of that northerly breeze. Some spells of sunshine, some showers too. This time, those showers mostly across central and eastern parts of england. The odd heavy thundery one. Elsewhere, more in the way of dry weather, although we will see cloud filling the sky across Northern Ireland later in the day ahead of this next weather system. And temperatures 16 20 celsius at best. And then, let me show you what happens on saturday, because this area of low pressure is going to push its way in from the atlantic, the fourth weekend in a row dominated by low pressure. This one quite a deep affair. A bout of heavy rain, could well be some thunder and some Lightning Mixing in. Northern scotland likely to avoid it, but some wet weather elsewhere and the potential for gales, particularly around some western coasts. And with the cloud, the rain, the strength of the wind, temperatures really will struggle 14 18 celsius. We would expect temperatures higher than that at this point in early august. But as we look further ahead into the middle part of next week, there are some signs that things could turn a bit drier and warmer. Good morning, welcome to breakfast with Naga Munchetty and charlie stayt. 0ur headlines today. People with mortgages and loans are warned to prepare for a further rise in Interest Rates when the Bank Of England makes its monthly announcement later. It would put the cost of borrowing at a 15 year high. Im at this Housing Estate in the midland to see how its affecting the Housing Market from buyers to builders. The wet weather is blamed for a drop in the number of people visiting shops on high streets injuly. Good morning from glasgow where the single biggest cycling event in history begins today. Nearly 3000 riders are competing in more than 200 events in the city and across scotland. Freddie mercury as you may not have seen him before. We visit the new exhibition which reveals the personal side of the flamboyant rock star. Good morning. Today is going to be a day of sunshine, bright spells, and blustery conditions as well as a few showers. We have to the weights to the middle of next week for something drier and warmer. Its thursday 3rd august. Our main story. The Bank Of England is expected to increase its Interest Rate today for the 14th time in a row in its latest move to combat high inflation. The cost of living has been growing at a slower rate for the past two months, but inflation remains at nearly 8 ,
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