MORNING BID EUROPE-Bank of England enters the fray

* A look at the day ahead from Chief Desk Editor Jeremy Gaunt and EMEA markets editor Mike Dolan. The views expressed are their own.

LONDON, July 14 (Reuters) - British Prime Minister Theresa May appoints more of her cabinet today. After last night's anointing of Boris Johnson as foreign secretary it would be foolish to even hazard a guess as to who gets what. Nigel Farage as Scottish secretary?

The main point so far is that when May said 'Brexit means Brexit', she meant it. David Davis - social libertarian that he is, aside - is new minister in charge of leaving the EU. Remainers can stop clutching at straws.

The Bank of England also gets into the everything-changes act. A Reuters poll suggests it will cut interest rates by 25 basis points to 0.25 percent. Only nine days ago, a near identical Reuters poll suggested there would be no such cut and that the Bank would wait. Of course it was only a month or so ago that the Bank was chomping at the bit to raise rates.

It (Other OTC: ITGL - news) does beg a few questions. Financial markets and politicians are acting as if all will be well. What does the Bank know that they don't? And how worried it is really, or is all this just precautionary moves to persuade everyone that the BoE is in do-what-it-takes Mario Draghi-mode?

We may get a tentative feel for how all of this is going down with consumers in Europe (including the UK). There is a raft of consumer sentiment reports due from Britain, France, Germany, Italy and others. They are not major ones - but given the circumstances, worth noting today.

Elsewhere, it is Bastille Day in France and President Francois Hollande gives his traditional interview on TV. His latest trial is Coiffeurgate - spending rather a lot of money on haircuts.

U.S (Other OTC: UBGXF - news) . Secretary of State John Kerry also swings by on his way to Russia to meet President Vladimir Putin.

MARKETS AT 0645 GMT

World equity markets have bounced back sharply from the Brexit shock mainly on hopes of a fresh round of global policy easing, and also the effective market-based easing that falling long-term bond yields bring immediately. Germany's first zero coupon 10-year bund auction yesterday illustrates the latter.

But actual policy easing has all been talk until today, when the Bank of England is widely expected to cut interest rates as an insurance against what it sees as a looming recession. A quarter point cut to 0.25 pct is almost fully priced in for today, with about 30-40 bps of easing now in market pricing to the end of August.

That means that a move to zero interest rates is not yet fully priced in - partly due to the stabilization of markets over the past couple of weeks and partly due to the lack of visibility everyone - including the BoE - has on the hit to confidence and activity from the referendum result.

After sliding initially on details of PM May's new cabinet - including foreign secretary Hammond becoming the new finance minister and arch-eurosceptic Johnson becoming foreign secretary - sterling has bounced back a bit this morning and is trading about $1.3275. And that may in part be a measure of market doubts about how aggressively BoE chief will ease.

Even (Taiwan OTC: 6436.TWO - news) a new round of QE was widely discussed over the past couple of weeks, but that too now seems a little way off at least while incoming data is awaited. Any split in the MPC (KOSDAQ: 050540.KQ - news) will also be watched closely for dissent.

Another side of the coin may be that the BoE hesitates on more aggressive easing in order to have more discussions with the new finance minister on the likely trajectory of fiscal policy.

Outside the UK today, the US Q2 earnings season gets underway in earnest with JPMorgan reporting at lunchtime. With Wall St stocks back hitting record highs, the burden of proof on bottom lines in this season may be a heavy one to bear.

Otherwise, there's an eye on oil prices after this week's shakeout on the latest inventory data.

Brent crude is hovering back below $47 is early trading.

Asia bourses were mixed earlier - with another 1 pct gain in Tokyo offset by losses in other regional bourses. European and UK futures are up 0.5-1.0 pct.

Gilt yields down a touch in contrast to small rises for Treasuries, Bunds.

Upcoming events/data/ themes for market reports on Thursday:

* Europe corp events: Carrefour (LSE: 0NPH.L - news) , BTG (LSE: BTG.L - news) , Hays (LSE: HAS.L - news) , Ashmore

* Turkey May industrial production, current account

* Ireland June inflation, Q1 GDP

* BoE rate decision, minutes

* US Q2 earnings: JPM, Blackrock (Sao Paolo: BLAK34.SA - news)

* US June PPI

* Fed speakers include Lockhart, George (Editing by Toby Chopra)