and winds of change. cloud computing, augmented reality, and 100km/h yachts! how sailgp hopes to get the video game generation on board. this we start with the cost of borrowing because it is on the rise again. in the next few hours the bank of england and the european central bank are both expected to increase their main interest rates by half a percentage point to their highest in m years as they battle to bring inflation under control. good news for savers of course, but piling more pressure on businesses and many people with loans and mortgages. for the bank of england, it would be the tenth rise in a row and would take the cost of borrowing to 4% its highest since 2008. on wednesday the us federal reserve announced a quarter percent increase a much smaller rise than in recent months. but its chair, jerome powell, warned that it would not be the last. as samira hussain in new york reports after in new york reports a year of aggressive rate increases after a year o
let us get down to business. we start with a fresh look at the banking sector and credit suisse in particular. early marketjitters in response to the ubs takeover of the swiss bank have eased. in asia today, most of the main stock markets are higher with japan closed for a public holiday. the major indices in europe and the united states also closed slightly up on monday. credit suisse is one of 30 crucially important banks in the global financial system and many fear its problems are an indicator of wider risks in the banking sector. so far this month, us and european banking stocks have fallen by 22% and 17% respectively, marking the biggest monthly falls since march 2020 when the covid pandemic hit the markets. here s michelle fleury with a look at how investors in new york responded. yes, there was guarded optimism on wall street following the shotgun marriage between ubs and credit grace that was hastily arranged by swiss authorities over the weekend. the dowjones indust
peculiar to the swiss regulator, the european regulator, the european regulator has now and said it is fully behind the waterfall and the seniority of the bonds over the regulators. it is and the seniority of the bonds over the regulators. over the regulators. it is all happening over the regulators. it is all happening during over the regulators. it is all happening during the - over the regulators. it is all. happening during the trading day yesterday when bank shares were given a tough time. 0liver, thank you. we appreciate your analysis on that. let us talk about what central banks have been doing. central banks are currently working together in a coordinated effort to boost liquidity in the global financial system following the banking developments in switzerland. the ability to keep credit flowing to households and businesses is paramount to ensuring stability within the financial sector. but many investors see uncertainty in the equity markets as a sign that all is not well
make as late interest rate decision on wednesday. investors are wondering if it will prioritise stubbornly high inflation and continue to rise rates or whether it will hit the pause button given the lingering concerns about the health of the country s regional banks. joining me now is 0liver faizallah, head of fixed income research at charles stanley. good to have you on the programme. markets today seem to be less nervous at least, certainly in asia. we saw recovery at the end of the day in europe and the united states. give us your take on where we are at. now that we have had a chance to digests a rescue for credit suisse. absolutely. the volatility increased quite a lot and investors were certainly spooked by that. but we did have a very quick emergency deal by credit suisse and the
developments are encouraging we will need substantially more evidence to be confident that inflation is on a sustained downward path. inflation is on a sustained downward ath. ., , downward path. now the fed is not declaring downward path. now the fed is not declaring victory downward path. now the fed is not declaring victory over - not declaring victory over inflation. it is taking a measured tone but they do say that a dis inflationary process has begun. for those on wall street hoping for interest rate cuts to start this year, mr powell made it clear that he expect to keep rates high through all of 2023. but seemingly there is a little more optimism when it comes to pulling off a soft landing for the us economy. getting inflation back to its 2% target without plunging the country into recession. let s talk to 0liver faizallah from the brokers charles stanley here in london. good morning. if we start with the fed before we move onto of england and europe, your thoughts on what