Increase wont come. Lets not forget that yesterday we heard that average uk wages were rising at their fastest pace in 20 years. Joining me now is Neil Shearing group Chief Economist at capital economics. Thanks very much for being with us today. Clearly it is pretty good news, but is it happening fast enough, oras news, but is it happening fast enough, or as fast as we had hoped . The fall in the Headline Rate of inflation, as you say, thats going to be welcomed by the Bank Of England. It takes a bit of pressure off them. But when you start to dig into the details of this report, i think perhaps there is still some uncomfortable reading there for the policymakers of the bank. As you mentioned, a lot of the fall in the Headline Rate, that is driven by what has happened to food and Energy Prices and that is out of the banks control. Interest rates dont tend to affect the price of our energy or food. Those are set in global markets. What they do affect his conditions in the real economy, the balance between demand and supply and the Labour Market. The prices of goods and services that are tied more to conditions in the economy are still going up very quickly. Communists look at something called economists look at core inflation. That is going up very quickly. Services inflation is going up quickly. Services inflation is going up quickly. If you dig into the details of this report it is still pretty troubling for the Bank Of England. Pretty troubling for the bank of encland. ,. ,. ,. , england. Therefore nothing to change the widesnread england. Therefore nothing to change the widespread expectation england. Therefore nothing to change the widespread expectation that england. Therefore nothing to change the widespread expectation that the l the widespread expectation that the Bank Of England will indeed raise Interest Rates yet again. I Bank Of England will indeed raise Interest Rates yet again. Interest rates yet again. I think thats right Interest Rates yet again. I think thats right. The Interest Rates yet again. I think thats right. The only Interest Rates yet again. I think thats right. The only questionl Interest Rates yet again. I think. Thats right. The only question is by how much. There are still two more important pieces of data to come out in september, before the bank meets again to set Interest Rates at the back end of next month. There is one Labour Market report forjuly, and one inflation print forjuly, and one inflation print for august, forjuly, and one inflation print foraugust, due forjuly, and one inflation print for august, due in the middle of september. Depending on what those show, i think that would determine whether or not they raise by another 25 basis points to five and a half percent, oranother50 25 basis points to five and a half percent, or another 50 basis points to 5. 75 . I am pretty sure it will be at least one more hike coming. It is really about the size of that increase. I is really about the size of that increase. ,. , is really about the size of that increase. ,. , is really about the size of that increase is really about the size of that increase. ,. ,. , ~ increase. I ust want what you think about increase. I just want what you think about other increase. I just want what you think about other threats increase. I just want what you think about other threats on increase. I just want what you think about other threats on the increase. I just want what you think about other threats on the horizon. I about other threats on the horizon. We have been working on the assumption that yes, maybe we might be pushed into a short recession, but that would be short lived. When you look at the slowdown which is happening in china, and that new data out today talking about house prices falling there again, is there a risk that we are being complacent about what is happening in china . The chinese economy is certainly not in a very good place. There are a couple of things happening there. You are right to say that it is principally about the property sector, that is the Central Point of concern at the moment, and a large Property Developer theyre looking like it is about to go under. Broader problems in the property and construction sector. Dont forget that china is the Worlds Largest manufacturer, and what has happened globally has been that, when we were in lockdown, we all shifted our spending from services to goods, because we were refitting our houses and buying all those Home Computers and buying all those Home Computers and refitting home offices. Now we are shifting spending back to services as economies have reopened, and that has hit chinas economy and exporters because goods demand has started to pull back. There are a couple of things going on, but the chinese economy is not in a good place. The question is what does it mean for other economies, including the uk . At this stage i dont think it is a major source of concern, certainly for policymakers at the Bank Of England. Weill certainly for policymakers at the Bank Of England. Certainly for policymakers at the Bank Of England. Neil shearing, will have to leave Bank Of England. Neil shearing, will have to leave it Bank Of England. Neil shearing, will have to leave it there. Bank of england. Neil shearing, will have to leave it there. Thank Bank Of England. Neil shearing, will have to leave it there. Thank you i have to leave it there. Thank you very much for that. Staying with inflation, a year ago today, President Biden signed the Inflation Reduction Act into us law. But America 5 First Serious attempt to tackle the Climate Crisis has ruffled feathers, as it includes protectionist measures that might hurt europe 5 green industry. Our nabc Michelle Fleury has more. The name Inflation Reduction Act is confusing, since most experts agree it has done little to lower inflationary pressures. So why is it called that . Well, lets just say it fit the politics of the day. When it was signed into law a year ago today, prices were rising at their fastest pace in a0 years. But if it doesnt bring down inflation, then what exactly does it do . According to President Biden, whos on a three state tour this week, its helping to combat climate change, createjobs and lower Peoples Health care bills. Since i took office, the private sector has announced more than 3 billion in investments, not million. In investments for wind Energy Manufacturing in america. The law, which was signed without a single republican vote, offers tax breaks to Companies Developing clean energy technology. The rush to take advantage of those credits has delighted white house officials, less so americas allies like the eu and uk, who say it puts them at a disadvantage. A law that was crafted in Washington Being Felt Notjust by american industry, but around the globe. Were changing gears now to talk about an electric carmaker, which you might never have heard of, which has just landed on the stock market and already has a higher valuation than ford and general motors. Vinfast is based in vietnam and its shares debuted on the new york based tech focused exchange the nasdaq on tuesday. Then, they rose in value by more than 200 on the same day, meaning that vinfast is now worth 85 billion. Our Asia Business reporter katie silver has more. It perhaps may be a company that youve never heard of but its shares rose by 255 . That 85 billion figure that you mentioned, that means its now worth more than almost double that of general motors. But really one of the real winners of yesterday was its founder and chairman, he made 40 billion in a single day on this listing. And in fact, the regulatory findings, according to those, it said that he controlled about 99 of the shares at the start of the day. We did see very slim trades, only about 185 million in trade, and therefore you can see the large swings that i mentioned. 255 surge. What it does also do is it shows the excitement that continues to exist around Electric Vehicles, and it does add fuel to rumours that the competitor to the united states, which of course has been the dominant player in this field, may well come from a low cost east asian country. And in fact, many are very bullish on vietnam, in part because it lacks the geopolitical package of somewhere like china, and it does have a very advanced manufacturing sector. But it must be said, the company hasnt made a profit yet and in fact last year it only made 11,000 cars, that compares to about 900,000 cars made by competitors such as tesla. But it does have a big backing, and the problem for many Electric Vehicle start ups is it costs a lot of money before you can get these cars to generate anything like a profit. And so therefore these deep pockets, because of being owned by one of vietnams largest conglomerates, may well help it get through and see a profit. The year is 2023 and its fair to say that what im wearing now has gone a little out of fashion. The Business Suit was already in decline before the pandemic and when everyone was stuck at home, the shift towards more casual workwear and lets be honest, sometimes pyjamas below the waist accelerated. But londons premier menswear district, savile row, says theres been a renewed interest in classic menswear now that life has returned to normal. Its tailors say that sales of bespoke handmade suits are back at pre pandemic levels. We sent Anders Edenholm to investigate. Introducing the best dressed street in the world. Savile row was founded here by the first and most famous tailor of them all, mr henry poole, a few years after the battle of waterloo. My name is simon candy. I am owner and Managing Director of henry poole company, here at 15 savile row. This year were looking, certainly at a good start in the year for the first half. We are going to see perhaps a little change, i am sure, as the pent up demand is declining a little bit, shall we say, but nevertheless people are aspiring to Say Something really special for them. Its a similar story further down the row. When we look at the figures from pre pandemic, i have to think with open arms and say, yes, its very much back there and improved from pre pandemic. Which i have to say, is rather heartening. But despite this, last year the uks National Statistics agency removed mens suits from the basket used to calculate inflation. But fear not, they have been replaced with a formal jacket or blazer. We have found that we are making a lot more Sports Jackets, blazers. Whether they be formal tweeds or lightweight, wool mesh jackets. And they have become very popular throughout all regions where we do business in. We certainly are seeing a change in dynamic of a wardrobe. They would have been buying four suits and two Sports Jackets, nowadays its more Sports Jackets and two suits. But nevertheless they are being cautious of what they are buying. A big part of the business now i would say, is about 70 is overseas market with a 30 uk market. It does change a little bit from year on, but the biggest part of that 70 is going to be america, japan. But shopping on savile row is not for the faint hearted. A two piece suit from one of those tailors can cost upwards of 8,000. But both tailors insist that a Handmade Savile Row suit is an investment for the future and that cost per wear can be even lower than that for a ready to wear one. 0ur suits are built to last. If theyre looked after over the course of their lifetime they can last 20 to 30 years. They can be adjusted if weight is lost or weight is gained. And if required with some families, they can be passed on to the next generation. So maybe, just maybe, one of the suits being cut here is still Walking Around somewhere in london. England have just gone i 0 england havejust gone 1 0 up in the womens world cup semifinal. The goal scored by the attacking midfielder, ella toone, just a few minutes ago. There are just a few minutes ago. There are just a few minutes left of the first half of the fixture in sydney. 5m . Minutes left of the first half of the fixture in sydney. Stay with us here on bbc the fixture in sydney. Stay with us here on bbc news the fixture in sydney. Stay with us here on bbc news for the fixture in sydney. Stay with us here on bbc news for more the fixture in sydney. Stay with us i here on bbc news for more updates. Dont change the channel to watch it live, whatever you do. I will be back with more Business News in a few hours time. Goodbye. Hello, im will perry at the bbc sport centre. Its approaching half time in sydney in the womens world cup semi final between england and the co hosts australia. England lead by 1 0. The winner of this will face spain in sundays final. Hugh ferris has been keeping his eye across it and joins me now. Big chances and a fantastic goal for england. Big chances and a fantastic goal for encland. , big chances and a fantastic goal for encland. Big chances and a fantastic goal for encland. ,. , big chances and a fantastic goal for encland. ,. , england. Scored by ella toone, and much of englands england. Scored by ella toone, and much of englands tournament england. Scored by ella toone, and much of englands tournament has| much of englands tournament has been a discussion about whether they can maintain and match what they did in the European Championship last year. One of the key players in that run to the final and Eventual Success for the lionesses was ella toone. She is the one who has scored the goal to make it i 04 england, approaching half time. There are just a few seconds before we had injury time. She struck high into the top right hand corner to give england that lead nine minutes before the break. She scored in the final of euro 2022 and now she has a vital goal for final of euro 2022 and now she has a Vital Goalfor england. Final of euro 2022 and now she has a vital goal for england. They have had more of the chances, hit the side netting, and a good save from Mackenzie Arnold in the Australian Gold via georgia stanway. More of the files, too. This has been a match that has certainly reflected the rivalry between the two nations, evenif the rivalry between the two nations, even if that rivalry is not necessarily played out a great deal in womens football. It