the fed raises interest rates and says it will start unwinding its $4.5 trillion stimulus programme. but is the us economy really out of the woods? plus — roam if you want to. the eu scraps extra mobile charges for travellers from today after a decade long battle. but will users end up footing the bill anyway? welcome to world business report. i'm sally bundock. also coming up: the end of an era forjapan inc. toshiba's set to sell off its chip division as it battles for survival. we start in the us where the central bank, the federal reserve, has raised the cost of borrowing, as was widely expected. it's the second increase in three months, and comes despite some fairly mixed data on the health of the us economy. let's show you the details. the fed has raised its main interest rate by 0.25%. that takes its target range to between 1—1.25% — the highest it has been since before the 2008 financial crisis. and it's set to go higher: the fed is forecasting one more increase this year. it also announced plans to begin selling off this, the $4.5 trillion worth of bonds and mortgage backed securities it bought up in the wake of the financial crisis, effectively pumping money into the financial system under so—called quantitative easing. there's no word on the timing of this though. michelle fleury reports from washington. it's still the e-z-go it's still the e—z—go is that america's central bank. officials here are determined to stay the course of slowly but steadily raising interest rates. fed chair janet yellin explained, with the world's largest economy improving, this and further things are required to stave off inflation. we expect gradual injury —— increases to stabilise inflation around the two 296 stabilise inflation around the two 2% objective. stabilise inflation around the two 296 objective. but not all signs are good. retail sales dropped sharply. it's not shown in american spending. us investors are a different matter. stock markets continued to hit all—time highs. so, is it full steam ahead forfurther all—time highs. so, is it full steam ahead for further rate rises?” don't think the fed is giving a massive vote of confidence. i think they are saying they can ease off they are saying they can ease off the accommodation a bit, so really they are still looking at two aspects of the economy, what they can help and what they can't help. with the trump administration struggling to enact its economic agenda, more than ever, control of the us economy lies here, with the federal reserve, and today's decision to raise interest rates is an example of the fed doing what it had carefully signalled it would do. but janet yellen can't do everything and, with economic data mixed, further decisions may not be as clear cut. to asia now, on a huge day for struggling japanese tech giant toshiba. in the next few hours, it's expected to announce who will buy its memory chips unit. toshiba's been forced to sell off its crown jewels after massive losses at its us nuclear division and a major accounting scandal has threatened its very survival. shara njit leyl is following this for us. what's the latest? well, sally, they delayed their earnings before, and guess what? they are delaying the announcement as well of that head of the prized memory chip is nice. toshiba in the news again for all the wrong reasons. of course, we would know that it reasons. of course, we would know thatitis reasons. of course, we would know that it is hoping to sell its chip unitand that it is hoping to sell its chip unit and use that money to cover more billions of dollars and ove i’i’u ns more billions of dollars and overruns at its us unit, which is now bankrupt, but the sale of it has been delayed, in part because another us firm, western digital, has sought a court injunction to block the sale of the unit, and they operate toshiba's main chip plant, and it's been squabbling with over and it's been squabbling with over an auction that could see the chip business end up with a rival company. toshiba had been aiming to pick the preferred bidderfor the business by today, but it's unlikely to come to decision just yet, and according to reuters, toshiba will seek to reach a definitive agreement on its unit sale byjuly 28, and of course, due to all of this, its shares are trading low today. honestly, this saga is going on and on. thank you for the latest on that. delayed announcement yet again. also coming up: a good day for you if you live and travel within the european union. as of today, june 15th — so—called roaming charges for using mobile phones abroad are being outlawed by the eu after a decade—long battle between brussels and telecoms companies. eu mobile users will now be able to use their allowance of calls and data in any member state without incurring those often hefty extra charges. experts are warning though that phone companies may try to recoup lost earnings by increasing tariffs. from the german—polish border, joe miller reports. somewhere beneath my feet is the border between germany and poland. it's impossible to see exactly where because, welcome this is what modern european borders look like these days. but until recently, if you came anywhere near this vicinity, your mobile phone operator could switch randomly between german and polish providers, and could cost you a lot of money. thanks to brussels, that's no longer the case, and locals here could not be more delighted. i go to germany every day, and for me, it's amazing. i can go with my friends to another country, and i can ring my mum ifi want. it's notjust those who live near borders who are celebrating. despite uncertainty over how much free data travellers will receive, and concerns over regulation, the eu isn't missing the chance to pay lip success. this is a historic achievement, and we could not have done it without the leading role of the parliament. the tourism industry is similarly jubilant, particularly those catering to solo travellers.” canjust look at those catering to solo travellers.” can just look at where i am, those catering to solo travellers.” canjust look at where i am, or i canjust look at where i am, or i canjust look at where i am, or i canjust get canjust look at where i am, or i can just get in touch with anybody over facebook. when i'm travelling alone, that's pretty important for me, andi alone, that's pretty important for me, and i think it might even encourage other people to travel alone more often, and i think that's pretty cool. many in the border region have already signed up to a mobile phone provider that does not charge them extra every single time they cross the bridge behind me, but there is some concern that fees overall may rise as companies try to compensate for the revenue they blast from the abolition of roaming fees. but in an area that's so successfully consigned its physical borders to history, the abolition of the digital one is more than welcome. the un—run international civil aviation agency says it's reviewing a request from qatar to intervene after its gulf neighbours closed their airspace to qatari flights. saudi arabia, the uae, bahrain and egypt have cut diplomatic and transport ties with qatar, accusing it of supporting terrorism. the icao says it will host talks at its montreal hq today to seek a consensus—based solution. volkswagen is to provide a two—year guarantee for the cars in europe fitted with emissions cheating devices which it agreed to modify. a number of uk consumers have complained that the modifications have affected performance and reliability. the european commission has been putting pressure on vw to compensate customers over its emissions scandal, as they have done in the us, but the company has refused. there are a lot of events to keep an eye on today. it's a real central bank week. we've got the bank of england meeting, the bank ofjapan meeting, so markets are grappling with lots of things. the federal reserve , with lots of things. the federal reserve, action in terms of the increase in interest rates, but also as well, basically the situation with regards to presidentjuncker again, and a report is investing —— presidentjuncker again, a wider probe into whether he attempted to obstruct justice. probe into whether he attempted to obstructjustice. that's causing a wobble in the markets. also, the uk chancellor of the exchequer, philip hammond, our finance minister, chancellor of the exchequer, philip hammond, ourfinance minister, is set to make a case for a new path of brexit when he speaks in a city of london annual mansion house address. that's later today. lots to watch out for. the liberal democrats face a new leadership race after tim farron announced he was standing down. mr farron said he could not reconcile his christian faith with leading a ‘progressive, liberal‘ party. our political correspondent vicky young reports. he's been leader of the liberal democrats for just two years. surrounded by colleagues, tim farron announced he was stepping down because of the folk is there had been on his christian faith. i found myself torn between living as a faithful christian and serving as a political leader. do you think it's 0k to political leader. do you think it's ok to be gay? political leader. do you think it's 0k to be gay? he said he felt guilty that questions about his religious views on gay sex and abortion had been a distraction during the general election campaign. do you think gay sex is ok? look, i'm not going to give you an answer to that question. i'll tell you why. that's because one's personal faith question. i'll tell you why. that's because one's personalfaith is one's personal faith. because one's personalfaith is one's personalfaith. what counts is your actions and beliefs in politics. after days of pressure, he finally clarified that he didn't believe gay sex was a sin. tim farron made it clear he felt forced to make an unfair choice between politics and faith. i seem to have been the subject of suspicion because of what i believe and who my faith is in. in which case, we are kidding ourselves if we think we yet live in a tolerant, liberal society. the archbishop of canterbury said tim farron was honourable and decent and, if he couldn't be in politics, the media and politicians have questions to answer. this has clearly been a very difficult decision for tim farron to make. at the election he did make some progress, increasing the number of lib dem mps, but some saw the campaign isa lib dem mps, but some saw the campaign is a wasted opportunity, and they blamed the way he handled those questions about his faith. the party will now choose a new leader over the summer. at least twelve people are now known to have died in a huge fire which engulfed a residential tower block in west london. the number of dead is expected to rise as fire crews carry out a complex recovery operation. the washington post claims president trump is being investigated for possible obstruction of justice by special counsel robert mueller. now it is time for our news review. we begin with the times whose headline reflects the incredible speed in which the grenfall house tower block was engulfed in flames. so much so that some children were thrown from windows by theirfamilies to escape the blaze the guardian looks at the anger felt by residents who say their concerns and complaints over safety in the building had been ignored by the royal borough of kensington and chelsea and also the tower block's management company. meanwhile, the independent focuses on theresa may's uk government who they say is under pressure to explain claims that it neglected to improve fire safety in buildings despite warnings over the potential for tragedies like that of grenfell house. leaving the tower block fire behind, the times reports on how five people were injured after a gunman opened fire on politicians who were practicing for a charity baseball game. a senior republican member of the house of representatives, steve scalise, is in a critical condition while the gunman was shot dead by police. and finally in the telegraph business section, the us federal reserve has said it would raise its key interest rate by 0.25%, the second rise this year. the central bank voted to raise its key rate target to a range of i% to i.25%. that's the highest level since 2008, when policymakers cut rates to encourage borrowing and spending after the financial crisis. let's get on with it. with us is jane. it is an awful story to start with, difficult not to be transfixed by the picture to start with. there are not many times that you get something that just