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Transcripts For BBCNEWS Financial Turmoil 20240707

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In ukraine, 23 civilians have been killed in the Southern City of zaporizhzhia after a Russian Missile struck a convoy of vehicles. Thats according to the governor of the province. Initial pictures that have started coming in Show Ambulances arriving at the scene. Its reported that the victims seem to be civilians. The attack comes just hours before President Putin is expected to hold a ceremony to declare that four partially occupied regions, including zaporizhzhia, will become part of russia. The kremlin says luhansk, donetsk, zaporizhzhia and kherson voted overwhelmingly to join russia in recent, self styled referendums. But ukraine and the west have dismissed the votes as a sham. Ukraine insists its goal of fully liberating its territory will never change, regardless of any statements from moscow. Our correspondent James Waterhouse is in zaphorizhzhia at the scene where the Missile Attack took place. It is a scene that is difficult to immediately process. You have a row of vehicles next to an enormous crater and the smell of burning in the air. It immediately seems clear what has happened but what is less clear initially is the devastation. And then you almost stumble across bodies. Some are covered and some are not. There are peoples coats, bags and belongings strewn across a wide area. People who have survived are sat on suitcases in a state of shock. Zaporizhzhia is a city that has always tried to carry on as normal. It has actually felt a lot more full over the past couple of months. People have gained in confidence and come back. Then you have moments like this. At the moment all signs seem to point to a very deliberate targeting. Most victims are civilians. This area had been used as a Holding Station for those who wanted to head back into russian occupied territory, either for work, or to see relatives or otherwise. It does suggest this is a targeted strike. We are told four missiles landed here and we are told at least 23 people have been killed. Many more have been injured. It is a very difficult sight to see. James waterhouse. A 34 year old man has been arrested on suspicion of the murder of olivia pratt korbel. The nine year old was killed as her mother tried to stop a gunman who was unknown to the family entering their home in liverpool last month. Merseyside police has now arrested 10 men as part of the investigation, but no charges have so far been brought. Detectives continue to appeal for information. And a £200,000 reward is on offer. The first coin with King Charles Iii on it is expected to go into circulation next week. It will also honour the life and legacy of Queen Elizabeth ii. We say goodbye to viewers on bbc two now. We will be talking about the economy. Hello and welcome to this special programme on the finacial turmoil we have all seen and experienced over the past week and beyond. What does it mean for the pound in your pocket, your mortage rate, and the future of the uks economy . To help answer these questions, we have a panel of experts. Andrew walker is a former bbc Economics Correspondent who has reported on many tumultuous events in economies around the world and will turn his weathered eye to what the uk has been experiencing. And from across the uk we have Mercedes Osborne a director at the exeter based Mortgage Brokers pointers financial paul lewis is a personal finance expert who presents the bbc� s Money Box Radio Show and joins us from llandudno, and Fiona Cincotta is a Currency Expert and Senior Market analyst at city index the online trading platform. Shes in north london. Welcome to all of you. So, first andrew how did all this turmoil start . The pound at one stage went to an all time low and lost against other currencies. The Bank Of England which is responsible for controlling inflation and ensuring financial responsibility kept on trying to restore calm and it certainly seems to have had some partial success on that although the situation remains a little volatile at the moment. The bank is also expected to raise Interest Rates again sometime in the coming weeks. The reasons for this stormy time on the market are disputed. The government argues it is an International Problem and it must be said that inflation, higher Interest Rates, currencies falling against the dollar are very widespread indeed, but critics do argue its more acute here and the government has mishandled its Policy Announcements and undermined confidence in the market. And just how well the government is managing its own finances. We how well the government is managing its own finances. Its own finances. We had a meeting this morning its own finances. We had a meeting this morning between its own finances. We had a meeting this morning between the its own finances. We had a meeting this morning between the budget. Its own finances. We had a meeting| this morning between the budget of the Office For Budget Responsibility and the chancellor and the Prime Minister. There is so much pressure for the 0br to be published, we are not going to get it until november, but there has been that meeting. Has that helped was an Agnostic Magnet has helped. 0ne that helped was an Agnostic Magnet has helped. One of the things bothering the people in the Financial Markets is that we had to climb the 0br of an assessment of the governments finances and what the governments finances and what the impact would be a of its proposed policy changes. They do see that as a kind of an indication of, from the 0br, that the governments financial sums add up as being a very reassuring thing if the government can get back from 0br. Thank you. Lets bring in fiona. Confidence is key. Explain why it works and why do they all seem to works and why do they all seem to work as a pact. There a saying that fear and greed moves the markets. An and over simplification. Its been reflected in the shortfalls that we saw and the other thing to take into account, you have that whole concept of fear and greed and then youve also got the idea of when certain key levels for key price points are taken out, that conservative even drive that selling and that fear even further. So for example if we take out 1. 10 against the us dollar, that was around number, but the key concern here is the outlook for the uk economy and what it meant how uk economy was going to be able to going forward. In terms of those drivers for the markets, you talk about fear and greed, a lot of what was in the midyear budget, the biggest expense was already in the pipeline, that help with energy bills. Then of course there was the unfunded borrowing for the tax cuts. What was it in particular that spooked the markets at that point. I dont think it was one thing in particular. Dont think it was one thing in particular, it wasjust dont think it was one thing in particular, it was just the shock of what particular, it was just the shock of what the particular, it was just the shock of what the government was, what the chancellor what the government was, what the chancellor was going for. And the fact that chancellor was going for. And the fact that It Chancellor was going for. And the fact that it wasnt funded. The fact that it fact that it wasnt funded. The fact that it was fact that it wasnt funded. The fact that it was looking to borrow money and if that it was looking to borrow money and if we that it was looking to borrow money and if we add on all of that to the bil and if we add on all of that to the big economic backdrop this is all coming big economic backdrop this is all coming into, thats what sort of set off the coming into, thats what sort of set off the pound on friday. Sent it sharply off the pound on friday. Sent it sharply low with the absolute surprise sharply low with the absolute surprise to the size of the whole thing surprise to the size of the whole thing. Then we had more comments over the thing. Then we had more comments over the weekend from the chancellor that there over the weekend from the chancellor that there could be more to come and that there could be more to come and that was that there could be more to come and that was the that there could be more to come and that was the last thing the Pound Investors that was the last thing the Pound Investors and investors in the uk in General Investors and investors in the uk in general needed to hear. Because that set off general needed to hear. Because that set off those fears of where is it going set off those fears of where is it going to set off those fears of where is it going to stop . Hows it going to be paid and going to stop . Hows it going to be paid and the funding coming from . In that sent paid and the funding coming from . In that sent the market and over again on monday that sent the market and over again on monday. As those fears came through. On monday. As those fears came through, investors pulled money out of the through, investors pulled money out of the uk through, investors pulled money out of the uk because they didnt want to invest of the uk because they didnt want to invest here and then when we see investors to invest here and then when we see investors pulling out that is when prices investors pulling out that is when prices drop. Investors pulling out that is when prices drop prices drop. Thank you. What the government prices drop. Thank you. What the government says prices drop. Thank you. What the government says its prices drop. Thank you. What the government says its trying prices drop. Thank you. What the government says its trying to prices drop. Thank you. What the government says its trying to do | prices drop. Thank you. What the l government says its trying to do is to grow the economy. Lets more from our Political Correspondent matt. When liz truss was running for the conservative party, she made no secret that she was in favour of tax cuts. Her and the chancellor Kwasi Kwarteng think people and businesses have been paying too much in tax for too long, and that is what is Holding People back, more growth means better for everybody in the long term is their view. To fund the tax cuts announced last week in the mini budget, the government was prepared to borrow a lot and to fund a big Support Package to help people with Rising Energy bills. Normally alongside a big announcement like that you would get an independent forecast of the Economic Outlook and the seat of government finances from the seat of government finances from the independent forecaster, the Office For Budget Responsibility. That was not provided last week even though the 0br did offer one and many people think that was why the markets reacted in the way that they did although the government maintains there are Global Factors at play. Today the Prime Minister and the chancellor are meeting the 0br, but this is the end of an incredibly turbulent week. Labour and the Liberal Democrats say this is a crisis of the governments own making and are calling for tax cutting measures to be abandoned and there are plenty of unhappy conservative mps, too. This is not to say the party wanted to be in going into their Party Conference on sunday. A lot of terminologies coming into the public sphere. Its hard to keep up the public sphere. Its hard to keep up with them. Remind us of the Office For Budget Responsibility when it was set up online. 2010 is when it was set up online. 2010 is when it was set up online. 2010 is when it was set when it was set up online. 2010 is when it was set up when it was set up online. 2010 is when it was set up and when it was set up online. 2010 is when it was set up and before when it was set up online. 2010 is l when it was set up and before those days was what happened was that the economic forecasts, which underpin what the chancellor can expect their tax policies to generate, and a forecast for what those tax revenues and what the Government Spending would look like, were all done in house by the treasury. There was a sort of element and that of a concern that it looks a bit like marking your own homework and so one of the things that the chancellor at the time, george osborne, did was to set up the office for budgetary responsibility with a view to providing an independent whats the outlook wasnt in particular what the outlook, how the outlook would be changed by particular tax and spending policies. Just to give the proposals in his budget that much more credibility so that it didnt look like he was, as it were, massaging the figures to make it look a little bit more favourable. By look a little bit more favourable. By not having that report before the mini budget, presumably its going to be quite a different report now, because obviously there is the real data in terms of the response and whats happening with Interest Rates . ,. ,. , whats happening with Interest Rates . ,. , rates . Interest rates are certainly an important rates . Interest rates are certainly an important part rates . Interest rates are certainly an important part of rates . Interest rates are certainly an important part of that, rates . Interest rates are certainly| an important part of that, because one of the things that the office for budgetary responsibility looks at is Borrowing Costs and one of the things that happened in this period of financial turbulence is that it now costs more for the government to borrow money in the Financial Markets, so, yes, ithink borrow money in the Financial Markets, so, yes, i think its probably fair to say that at least some of the numbers that we will eventually hear on the 23rd Of November if not sooner will be a little different from what they would have been had been doing its work week ago. This would have been had been doing its work week ago work week ago. This time last year we had absolutely work week ago. This time last year we had absolutely no work week ago. This time last year we had absolutely no idea work week ago. This time last year we had absolutely no idea what work week ago. This time last year l we had absolutely no idea what was coming on the horizon in terms of what happened in ukraine and then the ensuing impact on Energy Prices and thats been one of the key factors in whats been unfolding. Can you explain a bit more . {iii can you explain a bit more . Of course, and the really big Spending Element weve been hearing from the government has been this plan to cap or at least to limit the rising cap thatis or at least to limit the rising cap that is supplied to our energy bills. The amount we have to pay to heat and light our homes is subject to this cap which means that the gas and electricity supplies can only charge so much for each unit of energy. That we use. That cap is being increased tomorrow. The war in ukraine is absolutely central to this. It has cut off gas from russia which is the worlds biggest exporter of gas to europe. We havent really got much gas from russia in the uk, we are very much part of an integrated european markets though. That russian supply has driven up prices across the continent, including here. We use it for heating and also electricity, so it costs more down to power our homes and our workplaces. The government has decided that the new cap that the Energy Companies can charge is not going to reflect the full increase in the costs of gas. Thats going to ease the pain thats inflicted on us by our energy bills, but because its the government is going to be limiting, paying to limit that rise, it does mean we are eventually going to have to pick up the tab through our taxes in the future. ,. , future. Lets bring in paul. The ener future. Lets bring in paul. The energy price future. Lets bring in paul. The Energy Price Cap future. Lets bring in paul. The Energy Price Cap is future. Lets bring in paul. The Energy Price Cap is talked future. Lets bring in paul. The i Energy Price Cap is talked about future. Lets bring in paul. The Energy Price Cap is talked about as basically delivering a typical maximum energy bill of £2500 per year, but in reality, its not quite as simple as that. I am just hearing that we do not have paul lewis, so im going to redirect this question back to you, andrew. Its important to be clear that its not, there is not a maximum £2500 bill, they could potentially face a lot more. Then;r potentially face a lot more. They could face potentially face a lot more. They could face a potentially face a lot more. They could face a lot potentially face a lot more. They could face a lot more potentially face a lot more. They could face a lot more and potentially face a lot more. The could face a lot more and its potentially face a lot more. The could face a lot more and its very important that people keep that in mind. That figure is an estimate of what it would cost if. For someone using the average amount of energy in the previous year. So it does mean that if you are using more, then you will continue in all likelihood, youre going to be paying more than that average. In very nature as an average, it means some people will pay less on some will pay more. It does pay to emphasise that if you are using a lot of energy, you cannot rely on this £2500 being your maximum. There is still a very good reason to think hard about how you can reduce your energy use. Hard about how you can reduce your energy use hard about how you can reduce your ener use. ~ ,. ,. , energy use. Absolutely. We have had leshe energy use. Absolutely. We have had Leslie Writing energy use. Absolutely. We have had Leslie Writing to energy use. Absolutely. We have had Leslie Writing to us energy use. Absolutely. We have had Leslie Writing to us saying energy use. Absolutely. We have had Leslie Writing to us saying my Leslie Writing to us saying my husband and i live in an old house in the north of scotland, last year our energy bill was around £300 per month and this year could be as much as £800 per month. Where are the government getting this figure from and how is anyone going to be able to pay this . Its different circumstances and thats what theyre talking about with the typical bill. What were going to talk about now is the impact mortgages, because another thing we have been seeing is that a lot of Mortgage Deals have been pulled up the market, around 40 of Mortgage Deals that were on offer have disappeared and lenders are repressing the deals they are putting out. You may have seen on Question Time last night one person asked the panel she had been offered a rate of 4 panel she had been offered a rate of li and that was pulled in the immediate aftermath of the budget and then she was presented with an offer ofjust and then she was presented with an offer of just over and then she was presented with an offer ofjust over 10 . This is what she said. I offer ofjust over 10 . This is what she said. ,. ,. , ~. ,. , she said. I ust want to know what the lan she said. I ust want to know what the plan is she said. I just want to know what the plan is for she said. I just want to know what the plan is for mortgages . She said. I just want to know what i the plan is for mortgages . Because i was in the process of getting a mortgage as a young person and was told 4 mortgage as a young person and was told li but was told now that the lender has pulled that off round the best friend can get is about 10. 5 . They are saying you need to immediately look at putting your application through because the lenders may even pull these offers and for me looking now as a first time buyer, i dont think i can now afford to get a mortgage. Lets talk to our mortgage expert. An offer of a mortgage of more than 10 seems extraordinary. What you see on the markets . We 10 seems extraordinary. What you see on the markets . 1096 seems extraordinary. What you see on the markets . We have seen a hue see on the markets . We have seen a huge increase see on the markets . We have seen a huge increase in see on the markets . We have seen a huge increase in rates see on the markets . We have seen a huge increase in rates in see on the markets . We have seen a huge increase in rates in the see on the markets . We have seen a huge increase in rates in the last huge increase in rates in the last week alone. Its been reported in news earlier this week to lenders completely withdrawing from the market. One of those has actually come back to the market now, but you are seeing considerable hike to what they were. They were putting rates of 3 up to li depending what sort of 3 up to li depending what sort of deposit you have. We are now looking at rates much nearer to 6 for a lot of our clients. That looking at rates much nearer to 696 for a lot of our clients. For a lot of our clients. That is before interest for a lot of our clients. That is before Interest Rates for a lot of our clients. That is l before Interest Rates potentially for a lot of our clients. That is before Interest Rates potentially go higher which is what expected to happen. Higher which is what expected to ha. En,. ,. , higher which is what expected to happen in higher which is what expected to happen. In terms higher which is what expected to happen. In terms of higher which is what expected to happen. In terms of the j happen. Exactly. In terms of the im act happen. Exactly. In terms of the impact about happen. Exactly. In terms of the impact about that, happen. Exactly. In terms of the impact about that, what happen. Exactly. In terms of the impact about that, what is happen. Exactly. In terms of the impact about that, what is yourl impact about that, what is your analysis . Aha, impact about that, what is your anal sis . �. ,. , impact about that, what is your anal sis . ,. ,. , analysis . A lot of people are facing analysis . A lot of people are facing a decision as analysis . A lot of people are facing a decision as to analysis . A lot of people are facing a decision as to whether analysis . A lot of people are facing a decision as to whether or analysis . A lot of people are facing a decision as to whether or not analysis . A lot of people are facing a decision as to whether or not to l a decision as to whether or not to buy a cheap property potentially. The larger impact looks at those looking to remortgage or refinance their property they already own and their property they already own and theissue their property they already own and the issue with that is they may be accustomed to paying a certain amount in coming to the end of their fixed rate and is now going to cost them anything from hundreds of pounds more a month that people are going to have to find. There will have to be cutbacks. Incidentally also lots of lenders are looking to extend Mortgage Terms that you can have available, not every lender used to offer a mortgage for a0 years and thats very commonplace now within the market. Lots of people now will look to take advantage of those extensions on offer to keep the Monthly Payments as low and as affordable as possible. That is potentially a live draft, extending the terms, because Mortgage Companies are tightening up the criteria a life raft. But if you are somebody who is mortgage term is coming to an end, you are not intending to move, you are pretty much stuck in the rate is so much higher and its difficult to see what people can do. What advice would you give . Its see what people can do. What advice would you give . Would you give . Its important everybody would you give . Its important everybody goes would you give . Its important everybody goes to would you give . Its important everybody goes to speak would you give . Its important everybody goes to speak to i would you give . Its important i everybody goes to speak to their Mortgage Advisor at their earliest convenience. Everyone is in a position where they need to review things, potentially and its really important to get that professional advice. Extending the term might not work for everyone if your income and circumstances dont allow, and underwriting is another issue, and going back to the lady on Question Time, somebody from her perspective, its very difficult, if you havent found a property yet as a first time buyer, which at the moment, lots of Estate Agents are telling me it is still busy, so you might not be able to find that Property Group that quickly and at this point unless you submit a full Mortgage Application you cannot secure a rate, so some people might end up in a position where they panic buy something that thats not necessarily the right thing to do. Thats not necessarily the right thing to do thats not necessarily the right thin to do. , ~ ~. , thing to do. Thank you, mercedes. Can ou thing to do. Thank you, mercedes. Can you do thing to do. Thank you, mercedes. Can you do some thing to do. Thank you, mercedes. Can you do some number thing to do. Thank you, mercedes. | can you do some Number Crunching thing to do. Thank you, mercedes. Can you do some Number Crunching on inflation, because it is 9. 9 and the Bank Of England remit is to bring it down to 2 and the government says that by its intervention on energy bills that should bring inflation down by around 5 but we are seeing Cost Of Living continue to go up, so its hard to get a grip on where it is potentially going to go. find hard to get a grip on where it is potentially going to go. And the risin potentially going to go. And the rising prices potentially going to go. And the rising prices are potentially going to go. And the rising prices are the potentially going to go. And the rising prices are the reasons potentially going to go. And the rising prices are the reasons we | rising prices are the reasons we have rising prices are the reasons we have got rising prices are the reasons we have got this issue with Mortgage Rates have got this issue with Mortgage Rates fult have got this issue with Mortgage Rates. Full Interest Rate are the bank rates. Full Interest Rate are the bank of rates. Full Interest Rate are the Bank Of Englands one of only tool for getting on top of inflation and prices for getting on top of inflation and prices rising across the board and the Market Prices rising across the board and the market is edgy, nearly 10 in the market is edgy, nearly10 in the last the market is edgy, nearly 10 in the last year and that is far above the last year and that is far above the target the last year and that is far above the target that the Bank Of England tries to the target that the Bank Of England tries to achieve which is 2 . More expensive tries to achieve which is 2 . More Expensive Energy is a central part of this Expensive Energy is a central part of this story, and almost everything we buy of this story, and almost everything we buy needs energy. We are looking at factories, we buy needs energy. We are looking at factories, shops, transporting of goods. At factories, shops, transporting of goods. So at factories, shops, transporting of goods. So it at factories, shops, transporting of goods, so it spreads mostly to goods and services goods, so it spreads mostly to goods and services its part of the story but is and services its part of the story but is also and services its part of the story but is also affected food prices but russia but is also affected food prices but russia are but is also affected food prices but russia are very important global suppliers russia are very important global suppliers of wheat and other food and its suppliers of wheat and other food and its interrupted supplies and has affected and its interrupted supplies and has affected prices there and there is also the affected prices there and there is also the Global Recovery caused by the pandemic and error signs of it faltering the pandemic and error signs of it faltering and it has meant people have wanted to spend more and that has added have wanted to spend more and that has added to the pressure of rising prices has added to the pressure of rising prices and has added to the pressure of rising prices and then there is the fall in the pound prices and then there is the fall in the pound and that makes imported goods the pound and that makes imported goods more costly. Lets the pound and that makes imported goods more costly. Goods more costly. Lets talk more about what goods more costly. Lets talk more about what is goods more costly. Lets talk more about what is happening goods more costly. Lets talk more about what is happening with goods more costly. Lets talk more about what is happening with the l about what is happening with the pound and we can bring in paul lewis from money box live, tell us more about the impact of the weakness of the pound. The dollar is strong against all currencies but the pound has taken a particular battering, so what impact does it have . It has taken a particular battering, so what impact does it have . What impact does it have . It has, and that affects what impact does it have . It has, and that affects most what impact does it have . It has, and that affects most of what impact does it have . It has, and that affects most of the what impact does it have . It has, | and that affects most of the prices we pay because things are priced in us dollars. Petrol, diesel, those are priced in us dollars as they come into the country, so if the pound buys fewer dollars than the price of petrol and diesel will go up price of petrol and diesel will go up and as we heard, the pound reached a record low and has rallied a bit, but very low to what it has been so a weak dollar affects everything. The cost of importing grows and everything we might want to buy thats coming from another country that comes in a container and the transport of containers is priced in dollars so that will put up priced in dollars so that will put up prices. We dont have to tell people that if they go into the supermarket how much things have gone up and a survey a couple of days ago said they had gone up by more than 12 which is more than the rate of inflation you mentioned earlier, so the weak dollar is affecting people very much in this country and is storing things up for the future because these goods coming in now will not be in the shops for a while, maybe not till christmas, but they will be more expensive when we buy them. Star; expensive when we buy them. Stay with us, expensive when we buy them. Stay with us. Paul expensive when we buy them. Stay with us, paul. I expensive when we buy them. Stay with us, paul. I want expensive when we buy them. Stay with us, paul. I want to bring in a Samir Hussein in new york and has been explaining more about the dollar. 50 been explaining more about the dollar. , been explaining more about the dollar,. ,. , been explaining more about the dollar. ,. ,. , dollar. So what does the turmoil in the uk have dollar. So what does the turmoil in the uk have to dollar. So what does the turmoil in the uk have to do dollar. So what does the turmoil in the uk have to do with dollar. So what does the turmoil in the uk have to do with wall dollar. So what does the turmoil in | the uk have to do with wall street . Financial the uk have to do with wall street . Financial markets are often pretty tightly Financial Markets are often pretty tightly connected and will react to news tightly connected and will react to news happening in other countries. American news happening in other countries. American economists and even the International Monetary fund have derided International Monetary fund have derided the british governments socalled derided the british governments so called mini budget, saying it will lead so called mini budget, saying it will lead to an increased disparity between will lead to an increased disparity between the rich and poor and is not really a very prudent way to address not really a very prudent way to address the countrys economic rows. Investors address the countrys economic rows. Investors have been Sterling Selling at such investors have been Sterling Selling at such a investors have been Sterling Selling at such a fast clip that the pound has hit at such a fast clip that the pound has hit a at such a fast clip that the pound has hit a record low against the us dollar~ has hit a record low against the us dollar~ why has hit a record low against the us dollar. Why does that matter . Most International Trade is done in us dollars International Trade is done in us dollars. Any fluctuation of one currency dollars. Any fluctuation of one currency against the american greenback can have a massive impact on the greenback can have a massive impact on the finances of a company. Take coffee, on the finances of a company. Take coffee, for on the finances of a company. Take coffee, for example. Coffee beans are one coffee, for example. Coffee beans are one of coffee, for example. Coffee beans are one of the most traded commodities in the world. Most Copy Contracts commodities in the world. Most Copy Contracts are in dollars and that Nieans Contracts are in dollars and that means if contracts are in dollars and that means if you are a Coffee Roaster or seller means if you are a Coffee Roaster or seller in means if you are a Coffee Roaster or seller in the means if you are a Coffee Roaster or seller in the uk, your costs will likely seller in the uk, your costs will likely go seller in the uk, your costs will likely go up pretty dramatically if there likely go up pretty dramatically if there is likely go up pretty dramatically if there is a likely go up pretty dramatically if there is a collapse in the value of there is a collapse in the value of the pound there is a collapse in the value of the pound. Americans are being hit with inflation as well but since their with inflation as well but since their spending is in dollars, they have their spending is in dollars, they have some their spending is in dollars, they have some protections that other countries have some protections that other countries and other currencies dont enjoy countries and other currencies dont enjoy wall countries and other currencies dont enjoy. Wall street is looking to the uk with enjoy. Wall street is looking to the uk with a enjoy. Wall street is looking to the uk with a combination of sympathy and alarm uk with a combination of sympathy and alarm. , uk with a combination of sympathy and alarm. ,. , and alarm. Paul, let me bring a ruestion and alarm. Paul, let me bring a question to and alarm. Paul, let me bring a question to you and alarm. Paul, let me bring a question to you from and alarm. Paul, let me bring a question to you from linda. And alarm. Paul, let me bring a| question to you from linda. She asks, with food prices rising higher, what will the government do to help poorer people . The government to help poorer people . The government says to help poorer people . Tte government says its to help poorer people . Tt9 government says its done a lot, and weve talked earlier about the extra help for energy bills, £a00 off Electricity Bills but they are going up Electricity Bills but they are going up by £500, typically in the next, welcoming in fact tonight, so i think the government is saying it is doing a lot but i dont think its doing a lot but i dont think its doing anything directly to help food prices and what has worried me this week is that the next Inflation Figures that we get later in october will be the one that should be used to set Benefit Rates. The previous conservative government under Boris Johnson said they would honour the commitment to raise Benefit Rates in line with inflation, so as we have been hearing, that should mean may been hearing, that should mean may be another 10 on Benefit Rates from but neither the treasury minister, nor the chancellor, Kwasi Kwarteng, have said that they will definitely do that and they will do it for pensioners but they will not necessarily do it for ordinary benefits paid to working age people and disabled people, so thats the big worry for people that come april when they had a lot of price rises over the year that it will not be getting an extra 10 on their benefits. And i think the government will have to think carefully about how it will protect people and make sure that they can afford to do their shopping, especially in light of the fuel prices going up as well. A question here saying that the Energy Companies buy gas at the rate today, and the Household Gas Bills are set to rise. Im on a Prepayment Metre, so can i buy my gas before the increase as the Energy Companies do . Tt the increase as the Energy Companies do . , , , , the increase as the Energy Companies do . ,. , do . It is possible. It depends what sort of prepayment do . It is possible. It depends what sort of Prepayment Metre do . It is possible. It depends what sort of Prepayment Metre it do . It is possible. It depends what sort of Prepayment Metre it is. Do . It is possible. It depends what sort of Prepayment Metre it is. If. Sort of Prepayment Metre it is. If it is a smart metre where it does everything automatically, you cant. Your price will rise at midnight tonight like everyone else but if its a metre where you top it up and take your key or card to a local shop, then you can load it now with more units, if you can afford it, today, and they will be used at that price. This does not necessarily apply to all suppliers but its worth trying if you can get to the shop where you normally charge up your key or card and put more units on it, if you can afford it, those will be fixed at todays prices rather than tomorrow, but it doesnt necessarily work with every supplier but it is certainly worth trying and everyone else should be reading their metre this weekend to make sure that they dont pay any extra for energy already used and charged today at tomorrows prices. Goad today at tomorrows prices. Good advice. Andrew, today at tomorrows prices. Good advice. Andrew, i today at tomorrows prices. Good advice. Andrew, i mentioned today at tomorrows prices. Good advice. Andrew, i mentioned your extensive Experience Covering Economics over 20 years. How does this compare with things you have seenin this compare with things you have seen in your time. Its certainly been a turbulent period and some of the moves over very short periods of time in the value of the Pound Sterling and in the governments Borrowing Costs are set in the bond market were remarkable. But Borrowing Costs are set in the bond market were remarkable. Borrowing costs are set in the bond market were remarkable. But its not the Financial Market were remarkable. But its not the financial crisis market were remarkable. But its not the financial crisis of market were remarkable. But its not the financial crisis of 2008 market were remarkable. But its not the financial crisis of 2008 which the financial crisis of 2008 which was a the financial crisis of 2008 which was a time the financial crisis of 2008 which was a time when the government here and in was a time when the government here and in many was a time when the government here and in many other countries had to bail out and in many other countries had to bail out the and in many other countries had to bail out the banks, and we have not seen bail out the banks, and we have not seen the bail out the banks, and we have not seen the degree, nothing like the degree seen the degree, nothing like the degree of seen the degree, nothing like the degree of economic collapse that financial degree of economic collapse that financial crisis have produced over the years financial crisis have produced over the years. Ive followed that in many the years. Ive followed that in many developing economies. Its worth many developing economies. Its worth spelling out that the government really does have some serious government really does have some serious economic challenges all the same serious economic challenges all the same the serious economic challenges all the same. The big objective they have set out same. The big objective they have set out is same. The big objective they have set out is to get the economy to grow set out is to get the economy to grow more set out is to get the economy to grow more strongly, which would of course grow more strongly, which would of course be grow more strongly, which would of course be good forjobs and incomes. The case course be good forjobs and incomes. The case for course be good forjobs and incomes. The case for last weeks announcements, particularly the bit on tax announcements, particularly the bit on tax cuts announcements, particularly the bit on tax cuts was as the chancellor put it on tax cuts was as the chancellor put it was on tax cuts was as the chancellor put it was to boost the incentive for work put it was to boost the incentive for work and enterprise. And another challenges for work and enterprise. And another challenges controlling the rising debt of challenges controlling the rising debt of government but another one is dealing debt of government but another one is dealing at the same time with the cost of is dealing at the same time with the Cost Of Living crisis and dealing with Cost Of Living crisis and dealing with all Cost Of Living crisis and dealing with all of Cost Of Living crisis and dealing with all of these things at the same time is with all of these things at the same time is very with all of these things at the same time is very difficult because dealing time is very difficult because dealing with one of them might have adverse dealing with one of them might have adverse consequences for the other, and in adverse consequences for the other, and in particular the tax cut plans, driven and in particular the tax cut plans, driven by and in particular the tax cut plans, driven by the desire for growth could driven by the desire for growth could make it harder for the government to keep borrowing and inflation government to keep borrowing and inflation under control. That is certainly inflation under control. That is certainly the view that some people in the certainly the view that some people in the Financial Markets have been suggesting, and that was also the line that suggesting, and that was also the line that was present in a thinly veiled line that was present in a thinly veiled criticism from the International Monetary fund. But for now the International Monetary fund. But for now the government is sticking to its guns now the government is sticking to its guns on now the government is sticking to its guns on the Chancellor Plans to tell us its guns on the Chancellor Plans to tell us more next month. Its guns on the Chancellor Plans to tell us more next month. Fiona, our Currency Expert tell us more next month. Fiona, our Currency Expert and tell us more next month. Fiona, our Currency Expert and senior tell us more next month. Fiona, our Currency Expert and Senior Market l Currency Expert and Senior Market analyst, in terms of the stated goal from the government to grow the economy, that is accepted by most people as the right strategy to see better levels of growth. Theres been pretty sluggish growth over the last ten years and the question is how that is achieved. So how do the markets see that . Because what is happening, obviously, with the government, is a real about turn in terms of how to achieve it, but in terms of how to achieve it, but in terms of how to achieve it, but in terms of the overall premise, what is the view of the best way to achieve that and how desirable that is . ~ , � , is . What weve seen with the volatility in is . What weve seen with the volatility in the is . What weve seen with the volatility in the market is . What weve seen with the volatility in the market this. Is . What weve seen with the volatility in the market this week is that the markets have been really struggling to try to get their head around what this actually all means. Well will be able to achieve the growth that the government is aiming for . Whilst we have the Bank Of England also putting the brakes on growth, because they will be hiking Interest Rates, so that is the other area we will be looking at. Although we have the government going very much for an expansive Fiscal Policy, so very much looking to boost growth, at the same time, we have the Bank Of England, who will be raising the Interest Rates, acting to call growth. So at the same time weve got an idea of expanding and contracting at the same time. Its not, i would suggest, necessarily a good idea, if you think about it with the analogy of a car. You are putting your brakes on at the same time as putting on the accelerator. It could turn out to be quite an uncomfortable ride. And i think that is something that the markets have been preparing themselves for. The other thing is that weve had that intervention from the Bank Of England and that does seem to have brought a level of calm and im not saying that this is the end of the ride at all, but we have seen that the pound has managed to pull itself up the pound has managed to pull itself up from those lows we saw, the record lows against the us dollar, so there is the idea that the Bank Of England has our back if things go as planned as far as the government Fiscal Policy is concerned. Fiscal policy is concerned. Thanks, fiona, so lets Fiscal Policy is concerned. Thanks, fiona, so lets talk Fiscal Policy is concerned. Thanks, fiona, so lets talk about Fiscal Policy is concerned. Thanks, i fiona, so lets talk about mortgages again with mercedes because they have been talking about having a Material Impact on people right now with their mortgages. Lots of viewer questions coming through on this and nathan in luton says, is now the time to be thinking about moving . Our current fixed deal on a two bed semi from ends in may 2023 and we are talking about people who find themselves not necessarily wanting to move, and we need to think about what the next step would be. The downside of what the next step would be. The downside of a what the next step would be. Tt9 downside of a fixed rate mortgages there is a penalty for exiting early, what we call an early repayment charge, so depending on what you own, that can be substantial. A lot of lenders in the last few months switched to allowing you to do credit transfers, switching from one product to another up to six months before, but that doesnt apply to every lender and thats where its important to go back to your adviser and make sure you will be switched to something as early as possible. And other people might be thinking of moving house not its the right time in the market, but they might need to work orfamily in the market, but they might need to work or family reasons or whatever it might be so its important to get professional advice but we are contacting clients much earlier than we used to and it used to typically be three months before the end of the fixed rate, but more often now it will be more like six months. Mi often now it will be more like six months. , � often now it will be more like six months. � , months. Ali says im in the process ofthe months. Ali says im in the process of the new months. Ali says im in the process of the new house months. Ali says im in the process of the new house and months. Ali says im in the process of the new house and should months. Ali says im in the process of the new house and should we i months. Ali says im in the process i of the new house and should we fixed Mortgage Rates knowing the Central Banks will probably increase the rate 10 next year . Rate 10 next year . Its very circumstance rate 10 next year . Its very circumstance dependent. I rate 10 next year . Its very i circumstance dependent. Some rate 10 next year . Its very circumstance dependent. Some people say im buying a property i will refurbish and thinking of selling it in a year Ortwo Refurbish and thinking of selling it in a year or two years, so fixing it for them might not be the right thing to do. Having said that if youre living somewhere for a long period of time and you want to fixing and you dont have to worry about the mortgage at all, its good to potentially fix it for you, but with lending, there are so many different lenders that operate different lenders that operate different schemes and bits of criteria and there are some lenders out there still not offering fixed rates of some kind, so if you have an Niche Scenario you might find you will struggle to find that rate. Its not something that everybody is doing, but very much a circumstance dependent and like a lot of things, everybody is a different case. Pauli. Everybody is a different case. Paul, a lot of people everybody is a different case. Paul, a lot of people have everybody is a different case. Paul, a lot of people have choices everybody is a different case. Paul, a lot of people have choices they can make and there are a lot of people on fixed incomes. Catherine asks where is the help for pensioners who are struggling to pay both increased fuel and food costs . There is a special payment, which was 200 there is a special payment, which was 200 £300, and there an extra £300 was 200 £300, and there an extra £300 on was 200 £300, and there an extra £300 on that this year so it will be £500 £300 on that this year so it will be £500 per £300 on that this year so it will be £500 per or 600 if somebody is aged over 80 £500 per or 600 if somebody is aged over 80. That payment is paid to people over 80. That payment is paid to people who are state pensioners, 66 years people who are state pensioners, 66 years old people who are state pensioners, 66 years old now, and those who are hard years old now, and those who are hard up years old now, and those who are hard up and years old now, and those who are hard up and claiming Pension Credit, which hard up and claiming Pension Credit, which is hard up and claiming Pension Credit, which is a hard up and claiming Pension Credit, which is a means tested benefit, they will which is a means tested benefit, they will have had the first part of that £650 they will have had the first part of that £650 Cost Of Living payment and the second part will be paid this autumn, the second part will be paid this autumn, so that is help for them, pensioners autumn, so that is help for them, pensioners not on Pension Credit they can pensioners not on Pension Credit they can maybe claim it, and i would advise they can maybe claim it, and i would advise anybody old or young to go to citizens advise anybody old or young to go to citizens advice, ask for help, and if you citizens advice, ask for help, and if you cannot pay your fuel bills, io if you cannot pay your fuel bills, go to if you cannot pay your fuel bills, go to your if you cannot pay your fuel bills, go to your supplier, because they have go to your supplier, because they have an go to your supplier, because they have an obligation to help you and i have an obligation to help you and i have to have an obligation to help you and i have to say, have an obligation to help you and i have to say, youve probably seen from have to say, youve probably seen from the have to say, youve probably seen from the sign behind me that i am not in from the sign behind me that i am not in my from the sign behind me that i am not in my normal place. I am in the victoria not in my normal place. I am in the Victoria Shopping Centre and been talking Victoria Shopping Centre and been talking to Victoria Shopping Centre and been talking to pensioners, and many of them talking to pensioners, and many of them are talking to pensioners, and many of them are afraid of this winters fuel bills them are afraid of this winters fuel bills and the experts here have been advising them about what to do. We are been advising them about what to do. We are here been advising them about what to do. We are here all day and the radio four programme is on tomorrow, live from four programme is on tomorrow, live from here four programme is on tomorrow, live from here and starts at 1130, not welt from here and starts at 1130, not welt lts from here and starts at 1130, not well. Its for an hour because of the cost well. Its for an hour because of the cost of well. Its for an hour because of the Cost Of Living crisis, and on that the Cost Of Living crisis, and on that programme more expert, more advice, that programme more expert, more advice, more than i can tell you today, advice, more than i can tell you today, so advice, more than i can tell you today, so i advice, more than i can tell you today, so i urge people who are worried today, so i urge people who are worried to today, so i urge people who are worried to tune into radio four tomorrow worried to tune into radio four tomorrow at 1130. Worried to tune into radio four tomorrow at 1130. Thank you, paul. Andrew, tomorrow at 1130. Thank you, paul. Andrew. How tomorrow at 1130. Thank you, paul. Andrew, how long tomorrow at1130. Thank you, paul. Andrew, How Long Will tomorrow at 1130. Thank you, paul. Andrew, How Long Will will tomorrow at 1130. Thank you, paul. Andrew, How Long Will will be i andrew, How Long Will will be strapped into this Roller Coaster . T strapped into this Roller Coaster . I would have said at the very least until the 23rd Of November when we will get a bit more detail about the governments plans, the other bits, future Public Spending that we havent got and we will have the eagerly awaited assessment from the Office For Budget Responsibility but thereafter and based on the judgments in the Financial Markets and elsewhere, thejudgment they make and how credible they are but what the government is to generate the Economic Growth it desperately once and most of us would like to see coming and whether the market thinks that the governments financial plans add up, and whether in particular they think it is on a path to stabilising the governments overall debt in relation to National Income and in relation to the tax revenues that the government can expect in the future to enable it to pay the interest on those debts. Lets get some thoughts and predictions on where this could go. What is your quick prediction in terms of where we will be in a years time . We had no idea we would be here a year ago. Be here a year ago. Indeed. And so much of this, be here a year ago. Indeed. And so much of this, by be here a year ago. Indeed. And so much of this, by no be here a year ago. Indeed. And so much of this, by no means be here a year ago. Indeed. And so much of this, by no means all i be here a year ago. Indeed. And so much of this, by no means all of i be here a year ago. Indeed. And soj much of this, by no means all of it, is driven by the war in ukraine. Some people thought it might be coming but it was not factored in by economists. I think we are going to have a period of weak Economic Growth, perhaps none, perhaps a period of declining economic activity. Inflation will probably come down and that is because of the Rising Energy and food prices will not continue and what happened is that in terms of inflation that effect drops out 12 months after it happens, but it does mean the level of those prices is still going to be high and people are still going to struggle with paying those bills. Its just they will have less to worry about than of them rising in the future, so theres no question we are in for a pretty difficult 12 months. ,. , , a months. And fiona, your quick anal sis months. And fiona, your quick analysis for months. And fiona, your quick analysis for where months. And fiona, your quick analysis for where things i months. And fiona, your quick| analysis for where things might months. And fiona, your quick analysis for where things might be in a years time

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