speaking before squeezed by massive bills, there is still spending power out there. a lot of our customers are probably a bit older, so we don't feel the mortgage rate, although it creates uncertainty for them and that does — and we do notice when there is a rate rise, everyone gets a bitjittery. does it feel like we are getting green shoots? i don't feel that there is green shoots, no, no. i don't feel that there is green shoots, no, no. i feel we are in a holding pattern. it could go either way. today, the bank of england said the tough medicine was beginning to work. less tha n less than two years they have over 14 steps raised interest rates to the highest level in 15 years in an attempt to drain spending powerfrom the spending power from the economy. the period of near zero interest rates now consigned to history with the bank warning that rates could remain at this level for some time. if you asked the question, yes, and when are rates going to come down? my answer is we are going to need much more solid evidence that inflation is going to come down, and i mean that people can rely on it. the housing market correction may have started already? i don't know what your view is on that? yes, we are seeing someadjustment in the housing market. an adjustment? prices are not coming off their peak but we should avoid preaching crisis at this point. it is not that. at the law courts in salisbury, steve is arriving at a possession hearing. we are here today to see whether in two week's time i am living on the streets. january last year, my mortgage payment was £1264 and i have been paying that amount for the last ten years. my mortgage today is £4501 per month. the judge agreed with the bank to repossess the house, citing the mortgage�*s unaffordability after those recent rate rises. not walking around this house in another two months, is quite upsetting and i do not want to think about it. when interest rates go up, it is no surprise that you see more repossessions but actually, the level of repossessions is remarkably low, given just how rapidly the bank of england has raised interest rates, and the bank says they are trying to help by extending the length of mortgages, for example, and there are also hundreds of thousands of people on fixed rate mortgages. but the question is whether thatjust delays the pain. food price inflation is easing but still very high, putting the government under pressure to further delay imminent post—brexit checks and charges from imported foodstuffs to help the bank combat inflation. what the government must do is stick to that plan, so that we don't delay any longer the relief for families and businesses that are finding it tough. how is that plan helping to bring down prices for people? consistent with the possibility of a import taxes and duties on food imports from europe? that is a long—standing policy that is required by the fact we have left the eu. that will add to inflation. we will be very careful to make sure that we implemented in a way that has minimal impact on the overall inflation rate. our anti—inflationary measures include boosting our energy security by investing in home—grown renewable energy and insulating homes to get down the bills, sorting out the brexit mess to reduce prices because extra bureaucracy and checks at the borders are pushing up prices for uk consumers. today's move is expected to be one of the last rises this year but the message today is that any rate cuts are still some way off. faisal islam, bbc news in salisbury. the prospect of higher interest rates being the new normal is a worrying one for many people with mortgages and loans but it's being welcomed by others who rely on income from their savings, especially retired people. ian in oldham is one of them. he's been speaking to our cost of living correspondent colletta smith. at 5.25%... yes! interest rates are up and there's plenty of people who are delighted. there's far more savers in the country than there are mortgage payers. we have had some reaction from jeremy hunt... he's got onejob. ian lives off his pension, but after squirrelling away money his whole working life, he has got a small savings pot tucked away. what impact are those rising rates having for you? thank you! you are rejoicing, then, today? as a saver, for the last ten years, i have had 0.1% on my savings. literally nothing. it doesn't pay your bus fare. interest rates going up, for me, is manna from heaven and it is about time. let's speak to gervais williams from the investment manager premier miton. higher rates are not bad for everyone of course and there are more savers than borrowers in britain so as a fund manager, enriching those savers further, because it have consequences. as one of them inflationary?— inflationary? yes, it tends to be that actually _ inflationary? yes, it tends to be that actually when - inflationary? yes, it tends to | be that actually when interest rates are raised the whole point is you suppress the demand, so less demand out there and i think comes down it moves below supply that's when you get price competitive behaviour, cost of goods and services start to come down and it allows inflation to come under control so that's the real purpose by clearly raising interest rates does improve the outcome of savers but obviously equally and it obviously reduces the affordability of people who are borrowing. rachel reeves there was bringing up the b word. brexit, of course. if this climbdown over brexit checks on food would be the second in a week after britain decided to keep the sea safety market as well. what is the broader influence of brexit on inflation do you think? i of brexit on inflation do you think? ~' of brexit on inflation do you think? ~ �* , , , think? i think it's disrupted trade supplies _ think? i think it's disrupted trade supplies and - think? i think it's disrupted trade supplies and there i think? i think it's disrupted trade supplies and there is | trade supplies and there is more costs involved with many of the trading partners so the net effect is that is more expensive but more competition in due course and hopefully we have more competitors to deal with which allows more people to sell things in the uk and if it comes in time and ultimately we expect there to be a benefit as well and the net effect is actually costs arising at the moment in the uk faster than elsewhere and that's why uk interest rates unfortunately had to continue rising even at a time when many other global central banks are holding off interest rate rises at this point. interest rate rises at this oint. ., ., point. you are right, while underlying _ point. you are right, while underlying inflation - point. you are right, while underlying inflation does l underlying inflation does appear to be falling, the headline inflation is getting worse. why is it that energy prices, food prices are so sticky and in fact some instances rising? if anything we have had _ instances rising? if anything we have had a _ instances rising? if anything we have had a benefit - instances rising? if anything we have had a benefit in - instances rising? if anything we have had a benefit in the last 18 months, since the impact injune 2022 and a beastly energy prices have come down and everyone was looking forward to those helping the underlying effect but actually what's been interesting in the last six weeks as we have seen food prices beginning to rise again and exports from the black sea ports from ukraine obviously have been suspended for the time being and we have hot weather around the world which is interfering with food supply and alongside that, we've seen energy prices which we've seen energy prices which we have stopped passing quite low over the past 18 months we have torn down global stockpiles and are now seeing with the global recovery coming through perhaps a bit stronger people thinking or us economy continuing to expand at a faster rate than people thought and we are seeing that actually energy prices are pushing up so although underlying inflation is coming down at the moment, we are seeing that overall headline inflation is beginning to stabilise and actually may be continuing to rise which will be a real challenge for the central banks from here. it will. surveys, thank you. —— gervais. as we head into the last weeks of summer and the war in ukraine continues, is there a risk we could soon see a repeat of last winter's energy crisis? well, if you have been looking at the weather forecast, some people may be saying what summer? soaring gas prices could undo the efforts of central banks to get inflation under control. so, what have governments in europe and here in the uk been doing to make sure we are better prepared this winter? ben mcwilliams is from the european think tank bruegel. he's in liverpool. are we are going to be in crisis mode again this winter or are we better prepared? we are or are we better prepared? - are certainly better prepared, both in the eu and the uk. i think to think we would be in crisis mode the same way we were the past winter is very unlikely. the risks, as discussed last year, of blackout or lack of energy around europe are highly improbable. anything is possible but it's not the scenario we expect. we're still in what you may call crisis mode energy prices are still two or three times higher than previous normals and, of course, this has an impact on small and large industries as well as households and that's something that policymakers need to keep a close eye on over the coming winter but in terms of running out of energy, it is not a risk we are seeing this coming winter. i it is not a risk we are seeing this coming winter.- this coming winter. i was lookin: this coming winter. i was looking at _ this coming winter. i was looking at some - this coming winter. i was looking at some figures i this coming winter. i was - looking at some figures here, a 25% reduction in demand compared to the three year average injanuaryjust gone. average in january just gone. of average injanuaryjust gone. of course, this is coming from three different places, power sector, industrial sector and household sector and ordinary people turning down the thermostat, the household sector, contributed to a lot of the fall in demand. you cannot keep doing that and we were lucky that it was not a really, really cold winter. what if we cannot manage those kind of demand reductions again because it's not as though the industrial or the production sector, the power sector, is only going to reduce their demand as well.- only going to reduce their demand as well. indeed but as ou sa , demand as well. indeed but as you say. there _ demand as well. indeed but as you say, there are _ demand as well. indeed but as you say, there are three - you say, there are three sectors where you can see gas demand reduction which provides a nice amount of resilience to our economies. household, last year it was warmer than average. but we are seeing warmer than average temperatures year—on—year and if you put last year's temperatures in the linear trend, actually, that inaudible out of place and it certainly is one large uncertainty is the temperature and if you want to design a scenario of stress for europe this winter, you would put very cold temperatures in there. industrial demand has been surprisingly down and a very positive note from last year was that it didn't significantly hit economic output so what it tells us is that industries were clever in finding ways of replacing gas that still allow them to produce and still allow them to employ people and keep factories running. and the final sector you mention, the power sector, final sector you mention, the powersector, is final sector you mention, the power sector, is one area where we can have great positivity coming into this winter because one of the real problems last year was that we faced a perfect storm not only of roshai withdrawing gas supplies but also of the power sector in europe being very strained, largely due to french nuclear plants which about half of them were off—line. and as you mentioned, we used gas producing power, producing electricity, so this combination really made last winter difficult but it's not something we expect again this winter and that's a positive. then, thank you very much for your time and for ending on a positive! to the us now, and america's most valuable company — the $3 trillion giant that is apple. because it seems it's tough at the top. apple reported its latest results after wall street closed on thursday and it has seen revenues fall for the third quarter in a row. iphones account for half its earnings. sales of those are down as analysts say the global market for smartphones is now pretty saturated, and some would—be buyers are waiting for the new iphone 15 before upgrading. sales of ipads and macs are also flagging. apple did do better than expected, though, because of some of the other areas of business it's been developing. let's go to new york and speak tojeremy goldman from the analysis firm insider intelligence. thank you very much forjoining us today. looking at these results, it really underscores the strategic decision to shift away from products and toward services is the core offering from apple now. absolutely. and it's very interesting _ from apple now. absolutely. and it's very interesting when - from apple now. absolutely. and it's very interesting when you - it's very interesting when you look at the gross margins of the business, right? about 44.5%. 36, 30 7% for products. and about 71% for services, right? when you look at something like that, but alone really shows you why the company is investing in services, including advertising, including cloud storage for consumers —— 37%. simply because the dollar will go a bit further. the simply because the dollar will go a bit further.— go a bit further. the company still has go a bit further. the company still has headwinds go a bit further. the company still has headwinds when go a bit further. the company still has headwinds when it comes to iphones. there is no lack of love for the iphone but at the price points that they are, how many people will consider upgrading orjust holding off for the one they already have?— already have? that is the ickle already have? that is the pickle that _ already have? that is the pickle that apple - already have? that is the pickle that apple is - already have? that is the pickle that apple is in. i already have? that is the l pickle that apple is in. part of the issue is that people expect quite a lot from their iphones these days are given how much they are which then means you have to have quite a good experience and that means it is harder to convince people to replace them as frequently. that is a challenge and at least apple can point to strength in emerging markets such as india where it has seen growing demand but definitely waning demand in the united states. . ~ waning demand in the united states. ., ~ ., ., , states. talk to me about these to: ules, states. talk to me about these toggles. the — states. talk to me about these toggles, the vision _ states. talk to me about these toggles, the vision pro - toggles, the vision pro goggles. 3000 500 us dollars. that is an awful lot of money to spend on a pair of goggles, isn't it? ~ ,,., , �* isn't it? absolutely. and i think there _ isn't it? absolutely. and i think there is _ isn't it? absolutely. and i think there is a _ isn't it? absolutely. and i think there is a reason . isn't it? absolutely. and i l think there is a reason why these are called the vision pro, because they expect to launch a downmarket version eventually, perhaps in the second generation. so you can't count that much from this product in terms of sales out of the gate. it is about creating consumer demand so that future generations can create a new billion—dollar business for apple but obviously create consumer demand which is not quite there at the moment.— at the moment. thank you very much for _ at the moment. thank you very much for your— at the moment. thank you very much for your time. _ around the world and across the uk. this is bbc news. bbc news — bringing you different stories from across the uk. meet the cheshire ghost riders, who are gearing up for a home world championships. it's a whirlwind of emotions, notjust adrenaline. you're focused during the flow state, and then you're this across the line before you know it. i'm absolutely buzzing because i did the worlds 11 is years ago now. i had an awful accident in which i broke my hip, i couldn't walk for seven years. i recently got back into it and qualified again, and it's amazing. here at this bmx track, the club have a total of eight riders qualified for the world championships in glasgow — the youngest being nine years old. i started when i was about three. my dad did it first, and i thought, "maybe that might be interesting if i try it." can we go? yeah, go. for more stories from across the uk, head to the bbc news website. you're live with bbc news. to the travel and tourism business now. it accounts for almost 10% of the global economy — and some countries depend on it far more than that. one of those is greece — where thousands of people have been forced to abandon their holidays because of devastating wildfires. all across southern europe popular tourist destinations have been struggling under extreme heat. so what will climate change mean for the tourism industry in the long term? my colleague aaron heslehurst has been speaking to the president of the european travel commission and asked him about the impact of the ongoing wildfires. what the it will have an impact on everyone, every sector of the economy. on everyone, every sector of the economy-— on everyone, every sector of the economy. climate change is something _ the economy. climate change is something that _ the economy. climate change is something that affects - the economy. climate change is something that affects the - something that affects the entire economic system of the world. it is something that we have to tackle notjust world. it is something that we have to tackle not just with the tourism industry, we have to tackle in all industries and i think, to be fair, tourism and the travel industry, we are doing everything in our hands to mitigate climate change in our activity. to mitigate climate change in our activity-— our activity. your research shows there _ our activity. your research shows there has _ our activity. your research shows there has been - our activity. your research shows there has been a i our activity. your research | shows there has been a fall our activity. your research i shows there has been a fall in the number of people hoping to travel to the mediterranean between the months ofjune and november, to countries that have certainly seen the worst of the wildfires. explain that a bit more because i am wondering, is that here to stay? wondering, is that here to sta ? . , wondering, is that here to sta ? ., , , wondering, is that here to sta? .,, stay? our latest reports show that there _ stay? our latest reports show that there is _ stay? our latest reports show that there is a _ stay? our latest reports show that there is a 1096 _ stay? our latest reports show that there is a 1096 less i that there is a 10% less interest in travelling in peak months this summer in european domestic travel, especially to southern destinations. but there is an in travelling in there is an in travelling in the shoulder seasons of five and 3% and i think that this has to do notjust with climate change, it may be cost but it also has to do with pricing. value for money for many consumers in europe and it has to do with a trend to experience new types of tourism. but i think there are people now looking at southern beach and something else and this can be done notjust in the peak summer months that it also be done injune, in may, in september, october, and i think that this is actually a good thing. and you can find out more about how climate change is affecting the travel and tourism industry on talking business with aaron heslehurst this weekend right here on bbc news and on the bbc iplayer. finally, faster and cheaper. those two words have been the driving force for amazon this year — and it seems to be paying off. amazon has been shaking off its post pandemic hangover, laying off thousands of staff and revamping its delivery networks. the online delivery giant hit record delivery speeds in the us in the spring and late on thursday it reported a big jump in earnings for the three months tojune — much better than wall street had been expecting. michelle fleury in new york has the details. amazon's results show it was firing on all cylinders. it turned in and a strong online retail process —— progress and registered higher sales on cloud computing. investors liked what they heard and shares, already up 50% before these earnings this year, rose on the news. ahead of the quarterly earnings there were some concerns about people shopping less because of inflation but the ceo and his focus on increasing delivery speed and keeping a lid on costs seemed to pay dividends. a tv show, jury duty, made history because in —— coming the first video on demand show to be nominated. it's cloud business rose 12% following strong performances by the likes of matter in microsoft in this category it was a case of the tide lifting all boats but it also shows that the cloud business is the king of the jungle, the dominant playerfor the whole industry and also internally. it accounts for 70% of amazon's operating profit this quarter. as for wall street �*s current obsession with all things ai, amazon said it was continuing to develop new technologies to help customers take advantage of generative ai. taking a step backin generative ai. taking a step back in the numbers show that amazon along with the other big names in tech are starting to bounce back after a difficult 2022. let's speak to miya knights, co—author of the book, amazon, and publisher of retail technology magazine. shejoins us from she joins us from margate shejoins us from margate here in the uk. this is interesting what is going on here. a big silicon valley giants doing well despite the fact that there are high expectations now from customers in regards to these services and product. i want to pick up on one thing here from the amazon chief executive who said that the strong margins reflected the company's move strong margins reflected the compa ny�*s move towards regionalisation. he says it is working and shifting the networks, delivery networks, into different regions. it is interesting. a move away from internationalisation into smaller regional hubs. is that the way to go? it smaller regional hubs. is that the way to go?— smaller regional hubs. is that the way to go? it is the way to a o, the way to go? it is the way to no, it the way to go? it is the way to go. it makes _ the way to go? it is the way to go, it makes sense _ go, it makes sense proportionally and the last mile of delivery is the most expensive part of getting orders and purchases, so in terms of breaking up the delivery network into smaller hub and spoke type regions where they can double down on efficiency and make sure the cost to get the last mile delivery to us will be something that they focus on. household budgets are still very tired for many people across the world and particularly across europe where amazon is strong and also in the us and people are and will trade down if they need to. have we seen a big change in spending patterns in regard to amazon? i in spending patterns in regard to amazon?— in spending patterns in regard to amazon? ~ ., , to amazon? i think we have seen some shifts _ to amazon? i think we have seen some shifts in — to amazon? i think we have seen some shifts in line _ to amazon? i think we have seen some shifts in line with _ to amazon? i think we have seen some shifts in line with the i some shifts in line with the way that consumer spending is changing in reaction to the global macro —— macro economic challenges we see at the moment. in 02 this quarter amazon had prime day a major annual discount period, and what we saw there was consumers doing a lot of research and maybe not converting quite so much on the first day but actually really putting stuff in there basket after doing research on making sure they are getting better deals on the second day. a circumspect consumer but they helped to lift amazon this quarter. thank ou for lift amazon this quarter. thank you for your — lift amazon this quarter. thank you for your time _ lift amazon this quarter. thank you for your time and - lift amazon this quarter. thank you for your time and thoughts j you for your time and thoughts there. you are very much the expert on amazon. to let you know what is going on with the markets at the moment, treasury yields have surged after the united states stepped up plans to borrow more money, the sterling hitting the weakest level against the dollar since june after the bank of england raised the benchmark rate to 5.25%, the highest in the developed world. stay with us here on bbc news, plenty more to come. hello there. thursday was a relatively quiet day for many of us. in fact, we had some sunny spells and a little bit of warmth coming through. cambridge was the top spot with 23 celsius by the middle of the afternoon. not all of us had beautiful blue, sunny skies. in fact, the cloud, the shower cloud gathered across whitley bay by the end of the afternoon. and some of those showers intense, with rumbles of thunder and lightning mixed in there. so, a similar story as we go into friday. still got this north—westerly flow. that's going to be driving some fair weather cloud around. and through parts of the afternoon, we will start to see a cluster of sharp showers, particularly down through eastern england. a few isolated showers for scotland and northern ireland, the best of the sunshine in sheltered western areas. but temperatures will be a little bit disappointing because of that north—westerly wind direction — 15 to 20 degrees the overall high, 68 fahrenheit. now, as we move out of friday into the start of the weekend, once again, it's going to be the fourth weekend in a row that we've seen an area of low pressure moving in off the atlantic and bringing some unseasonably wet and windy weather for this time of year. so heavy rain during the early hours of saturday morning across northern ireland. it will gradually push its way steadily eastwards. and as the low moves east, while the winds will be gusting across wales and south west england 50, possibly 60 miles an hour, and that could have an implication certainly for those camping, but some rough seas as well. also, that rain will clear its way steadily east, and then behind, its going to be a cool and disappointing day for many — only 1a to 17 degrees at the very best. so after a pretty wetjuly, looks likely that we're going to see more significant rain as we move into the next few days for the early half of august, darker blues denoting anywhere where we could potentially see another inch or two of rain. and as we move from sunday into the early part of next week, it looks likely that that unsettled theme is set to continue. however, from wednesday onwards, it looks likely that an area of high pressure will build, and we haven't seen this for quite some time. just how long the high pressure is going to stay with us is still subject to question. perhaps it might ease away after just a few days, but there is a glimmer of hope that we will see some blue sky and sunshine and it will feel warmer. good morning, welcome to breakfast with naga munchetty and charlie stayt. our headlines today. charged with trying to overturn america's presidential election, donald trump appears in court in washington and pleads not guilty. this is a persecution of a political opponent. this was never supposed to happen in america. the mayor of london extends the scrappage scheme offered to residents wanting to buy vehicles that comply with the city's ultra—low—emission zone. the world's highest average global sea temperature has been recorded. i am in plymouth to find out what that means of us. borrowers are being warned interest rates could stay high after yesterday's rise. in sport it was a golden start to the cycling world championships in glasgow. sophie unwin and pilotjenny holl collecting gold for team gb in the visually impaired 1—kilometre time trial. hello from edinburgh, the very epicentre of the cultural universe for the next three weeks. we will bring you all of the sights and sounds of the weight and wonderful and everything in between. —— wade and everything in between. —— wade and wonderful. sons of something more summery next week in the weather but unsettled this weekend. it's friday 11th august. our main story.