eu leaders agree to start preparing for the next phase of brexit, focusing on trade. eu president donald tusk says he hopes formal talks could begin in december. the deadlock between the eu and the uk reports have been exaggerated. and while progress is not sufficient, it does not mean there is no progress at all. also speaking in brussels the prime minister says she is optimistic about what might be achieved. i am ambitious and positive for britain's future and for these negotiations, but i know we still have some way to go. but the so—called divorce bill remains a major angela merkel says button must begin to work on its obligations. the deficit was the smallest in ten

yea rs. left on hold, it's emerged some mobile phone customers continue to be charged for handsets they have already paid for. and a see— stained letter, one of the last to be written on the titanic, goes up for auction this weekend. in the sport everton say they will banafor in the sport everton say they will ban a for life for his involvement in the fighting that broke out between everton and lyon players in the europa league last might. —— they say they will ban a fan for life. good afternoon and welcome to the bbc news at one. the president of the european council, donald tusk, says claims the brexit deadlock between the uk and the eu are exaggerated. and it is possible formal trade talks could begin in december. earlier the prime

minister, theresa may, said she was she was "ambitious and positive" for britain's negotiations with the european union but there was still "some way to go" in the brexit talks. our europe correspondent damian grammaticas is in brussels outside the summit talks. donald tusk, as you say, said he would not describe the talks was deadlocked. but the same time jean—claude juncker said he would use that word many times. it appears that the eu politicians want to send positive signals to the uk that the bureaucratic side of the eu, handling the talks, see them as bogged down. this morning it all began with theresa may back here just 12 hours after her important address last night eu leaders. before dawn and theresa may was back, her speech at the summit last might not enough to enter the brexit stalemate, other leaders say speeches are not enough. it is time

to go for a real negotiations, not just negotiating in the media by rhetoric. is not what you mean, that financial commitments, the uk went to detail that. financial commitments, the uk went to detailthat. i think financial commitments, the uk went to detail that. i think she made a firm but not final offer in florence. now we need her and the british negotiators to move this into the negotiation room. enter the man who sits in that room. i'm from the bbc, is your recommendation today sufficient progress? we are going to work, sorry. i'm not answering questions. it is michel barnier who the uk must satisfy first. he was hit a brief eu leaders on how the negotiations are progressing. i'm sorry, i don't want to a nswer progressing. i'm sorry, i don't want to answer questions now. let me work, please! we know that the eu's chief negotiator will say sufficient progress has not yet been made in these negotiations. that is what he

will brief the eu leaders on and the next negotiation rounds will have to change if these negotiations move forward. for eu leaders, the sticking point is that despite theresa may's promise in florence speech, when she said the uk would meet its financial obligations to the eu, in the talks, negotiators have not said what that means in practice. and without detailed things cannot move because one mrs may is not prepared to go beyond what she said in florence. what i've made clear to my eu counterparts in relation to financial contribution is what i set out in my florence speech. which is, i said nobody need be concerned for the current budget plan, that they would have to either pay in more or receive less, as a result of the uk leaving, and that we will honour the commitments that we will honour the commitments that we have made during our membership. now there has to be detailed work on those commitments as david davis has said, we are going through them line

by line and will continue to do so. the british taxpayer would not expect its government to do anything else. with that she left this summit and going through line by line is what the eu has been doing already, it has led to the impasse, the exit leaving the other 27 nations to top brexit by themselves, no breakthrough in sight. and while they may not be satisfied leaders emerged today keen to send positive signals, hoping to inject new momentum into the talks. while progress is not sufficient, it does not mean that there is no progress at all. today the council has agreed to start internal preparative discussions in relation to framework for the future relationship and on transitional arrangements. but what is needed now is a new dynamic to get these talks back on track. and that statement about the eu side

beginning their own preparations for trade talks is an important olive branch. it is the eu holding at the prospect that things could move forward as early as december if things change. yet it is worth saying that the sticking point about money in the negotiations is a very serious one for many eu countries. the french president has also said he believes the sides are very far apart on this issue and there's a lot of work to do there. bacterial. thank you. our political correspondent chris mason is in westminster. a flurry of statements as i came to a. what is your assessment of the mood music that we've heard? as the prime minister sets back to westminster this afternoon she will be able to chalk up a smidgen of progress. although not the dollop we would have hoped for when they were looking forward to this summit when the date in the diary was circled in october with a big black felt tip

pen. it has been known for a while here and in brussels that the likely outcome of this summit would be that there wouldn't be enough progress to move the future and trade talks. but she comes back knowing that at least the other 27 nations are beginning most preparatory talks we heard about, with the potential of moving on in december. plus that mood music, very, very positive. losing positivity rather than the curmudgeonly negativity that some interpreted earlier rounds of the negotiations to have felt like. let's look at one line in the summit conclusions picking up on the money issue. the summit conclusions noted that while the uk has stated that it will honour its financial obligations, this is not yet been translated into a firm and concrete commitment from the uk to settle all of these obligations. in other words, brussels is saying, give us more detail on the money, and ultimately they will want more

money. £20 billion was the figure floating around in the air after the florence speech a couple of weeks ago, when the prime minister was askedif ago, when the prime minister was asked if it could be as up much as £60 billion today, she merely said it would be examined line by line, the uk's financial obligations. she did not deny it. money is still a big sticking point. indeed, thank you, chris. britain's budget deficit last month was the smallest for any september in the past ten years, according to the office for national statistics. the government borrowed £5.9 billion, down almost 11% compared with the figure for a year ago. the treasury was helped by stronger receipts from vat, income tax and stamp duty. our economics correspondent andy verityjoins me. why, when we're in a slowdown do these numbers look relatively calm? it is because the tax is rolling in! we are growing, not as fast as, say last year but still growing, so we

are still doing spending, jobs are being created, thus income tax and national insurance is rolling in, and the amount coming in in taxes is growing faster than the amount we are spending. therefore there is a smaller gap between what the chancellor is spending and what he's got rolling in, so there's less that he needs to borrow. £5.9 billion was the septemberfigure. he needs to borrow. £5.9 billion was the september figure. if you he needs to borrow. £5.9 billion was the septemberfigure. if you look he needs to borrow. £5.9 billion was the september figure. if you look at the september figure. if you look at the figure for the first six months of the financial year which is more reliable, you've got £32.5 billion that we have borrowed so far. that's actually the lowest amount we've seen since 2007. and added to that, if you look at the breakdown of what that its spending, what we are borrowing to invest, and what is just day—to—day spending, what we borrowing for the likes of benefits, the amount for day—to—day spending is just the amount for day—to—day spending isjust £16.i the amount for day—to—day spending isjust £16.1 billion the amount for day—to—day spending is just £16.1 billion of the six months. now with interest rates so low that makes it all look relatively manageable. looking at the total debt we've got that is

more scary, 80% of gdp, yet as a proportion of the economy it is shrinking. having said that, note of caution. the is worried about productivity. so while more taxes coming in because more people working each individual worker isn't necessarily producing more, producing more tax. and that may derail the forecasts to the public finances in the year ahead. right, andy, thank you. heavy fighting has broken out in northern iraq between kurdish fighters and the iraqi army, close to the oil—rich city of kirkuk. the fighting comes just weeks after a referendum on independence was held in the kurdish region. the vast majority of people who voted were in favour of breaking away from iraq, but baghdad demanded that the referendum be scrapped. our correspondent richard galpin reports now from the frontline. hundreds of kurdish fighters, known as the peshmerga, heading into battle this morning. the fighting breaking out with the iraqi army and its militia allies around this major

highway between the kurdish regional capital and the oil rich city of kirkuk. the fear is that this could mark the beginning of the civil war. translation: the shia militia and army of iraq all have weapons and fire on the peshmerga. we will defend ourselves, we will not break. the kurds do seem to be fighting a rearguard action with the iraqi armed forces pushing up the highway towards them and towards the kurdish capital, irbil. baghdad says their goal is restoring government control over territory seized by the kurds recent yea rs. over territory seized by the kurds recent years. and soon the advance sparked panic. suddenly, as you can see, all these vehicles are driving fast up the road, back towards irbil. people are fleeing. it seems the iraqi federalforces

irbil. people are fleeing. it seems the iraqi federal forces are irbil. people are fleeing. it seems the iraqi federalforces are moving closer and closer. the smoke is burning, idirect closer and closer. the smoke is burning, i direct hit on peshmerga artillery placements. already there have been casualties. this fight with shrapnel wounds in his back and his head, one of several men we saw being treated here before being taken by ambulance to hospitals in irbil. it's less than a week since the kurds first witnessed disputed territory which had been under their control being ta ken territory which had been under their control being taken back by the iraqi armed forces. that had largely been without bloodshed and now. today could prove a turning point. richard galpin, bbc news, in northern iraq. the director quentin tarrantino has spoken of his shame about continuing to work with harvey weinstein despite being aware of rumours about his behaviour. he collaborated with the producer on a number of movies including "reservoir dogs" and "pulp fiction". overnight the oscar—winner lupita nyong'o has become the latest actress to accuse harvey weinstein of sexual harassment. he has denied sexual assault and

rape. citizens advice has warned that millions of mobile phone users are paying too much. it says customers of vodafone, ee and three are getting billed for handsets they've already paid for. the companies insist their charging plans are fair and that they let their customers know when the handsets have been paid off. but citizens advice says one in three mobile phone users stay on their contracts beyond the fixed term period, as our business correspondent emma simpson reports. the latest iphone. it ain't cheap. this is why most customers pay for their phones, whatever the make, through a contract. yet when it is over it seems millions are still being charged the handset, even though it has been fully paid off. like it consultant richard, in york. i only found out that my contract

had ended when i logged into my online account to see when i was doing upgrade, i was doing two months previously so in this two months previously so in this two months i had been paying for a phone and paying extra for a phone and already paid for. this meant i was about £75 out of pocket. citizens advice found vodafone, three and ee we re advice found vodafone, three and ee were charging customers for handsets even though the cost had been covered in the fixed deal. it means customers could be overcharged by up to £38 a month depending on the device. one in three customers failed to change their contract after it expired. and one in five did not switch for more than six months. what that means is people could end up paying hundreds of pounds in excess charges. we think this is outrageous, they ripped off by mobile phone companies. what they should be doing is, when you get to the end of a fixed term contract, the end of a fixed term contract, the bill should be automatically

reduced to reflect the fact that you paid up your handset already. vodafone, ee and three all insist their billing systems are fair. wherever possible customers are contacted with a range of options and at the end of a contract, it is a lwa ys and at the end of a contract, it is always made clear. yet the boss of this rival company takes a different approach. we broke down the charges between the device and the collectivity. and we think that is the fairand collectivity. and we think that is the fair and equitable way to treat with a customer. it means that as soon as the customer has paid the device we automatically stop charging them for it. they don't need to abridge us, we will automatically reduced their bill. campaigners want all companies to do the same. the regulator says it is already considering the issue as pa rt already considering the issue as part of a wider plan to help consumers secure the right deals. emma simpson, bbc news. it is coming up

emma simpson, bbc news. it is coming up to 16 minutes past one. our main stories. and coming up — it's survived one of the most infamous sea disasters in history, but this letter, written onboard the titanic, is now under the hammer. coming up in sport. lewis hamilton hopes to close in on more silverware when practice for the us grand prix gets under way later. championship leader hamilton could win a fourth title if resutls go his way in the race on sunday. two former us presidents have voiced their concern about the current political climate in the country, in a thinly—veiled attack on donald trump. barack obama urged americans to reject the politics of "division" and "fear". george w bush criticised "bullying and prejudice" in public life. our correspondent gary o'donoghue reports from virginia. president obama still knows how to draw a crowd and they queued for hours round the block to see him here in virginia, backing the democratic candidate for governor in next month's election.

but if they were hoping for head—on attacks on donald trump, then they were to be disappointed. though the former occupant of the white house was artful in his use of local virginia politics to make much wider points. you notice i haven't been commenting a lot on politics lately. yes we can.

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i if. is :e::,:*,: 7: e:: i: i: likely poor results university says poor results were the greatest barrier to disadvantaged students and its admissions were based on academic considerations alone. a lot of i speak. are ispeak are like am. 7:5. 7 t" t" tnt" 5&5; 5-1.43; 25212 !,:~“ white, that's what overwhelmingly white, that's what i'd say it is. today's figures show inequalities very much exists and good widen calls to rethink entry requirements for disadvantaged applicants. hammarlund —— helena lee, bbc news. pollution contributed to the deaths of an estimated 50,000 people in the uk in 2015.

that's according to a major study published in the lancet medical particles in the air built up, m, particles in the air built up, in; in particles in the air built up, in, - in egg; and particles in the air built up, the - in if; and particles in the air built up, the world, fiji; and particles in the air built up, the world, 1:75.53; growing . é that themftz‘z — ‘ not just during 2015 in the: during 2015 in the uk, 8‘1’ as well. during 2015 in the uk, 8% of deaths, that's 50,000, have been linked to pollution. that puts us behind the us and many other european countries, including germany, france and spain. we need the government act immediately. we wa nt the government act immediately. we want them to use the budget next month to end the tax incentives for diesel vehicles and in the long term they need to commit to a new clean airact. they need to commit to a new clean air act. the diesel emissions scandal has heightened concern

the uk government's exhaust. the uk government's new ambition and ca rs by cars by 2030. motor manufacturers are now under pressure to develop more efficient versions of cleaner technologies. on a global scale the challenge appears huge. two thirds deaths are - down . air in ‘ ' in niger, t”: ' in niger, chad " ' somalia, in niger, chad " ' somalia, in in niger, chad " ' somalia, in india, n niger, chad " ' somalia, in india, the ger, chad " ' somalia, in india, the figure had " ' and somalia, in india, the figure is around a quarter, and in china, 20%, one in five deaths, were linked to pollution. these time—lapse pictures show pollution in beijing, countries which have undergone rapid industrialisation, have some of the highest figures. the study is a snap shot from 2015. in the indian capital delhi, where diwali was being celebrated with a night of fireworks, people

health limit. 3:5 sissons, ~ 7 ~ health limit. g sissons, bbc = the health limit. rob sissons, bbc news. paid childcare is becoming unaffordable for many families. one union — the trades union congress — says costs are increasing four times faster than wages in england and that the government must now extend financial support for parents of very young children. the government says it has doubled the availability of free childcare for three and four—year—olds, as adina campbell reports. like many mothers, ruthjonas is hoping to get back to work, bringing up a family in london is even more of a bruising burden. it's an option of paying for somebody to look after my children or doing it myself right now, just for that salary level a nyway. so i would have to find a job that is either really,

really, really well paid, like, once you have been out of work for a while, i don't think it's so easy to get back at that higher level. new research shows childcare costs have increased up to seven times faster than wages since 2008. london and the east midlands have seen the biggest rise, followed by the west midlands and south—east. campaigners say the spiralling cost of childcare is hitting one group harder than any other. at the moment, parents with children under two don't receive financial support from the government, which critics believe is unfair. we know that that period between ending parental leave and getting your free nursery place at two or three is really difficult forfamilies, however there are struggles right up the age group. we need to think about a childcare strategy that works for all families and all children, including school—age children. the government says it's providing tax—free childcare to around two million households and it has

doubled the amount of free childcare available to working parents of three and four—year—olds, but with many families facing squeezed budgets due to low incomes and inflation, many say it just doesn't pay to work. i think some help with funding from one to three—year—olds would be really helpful. i get the impression that it is hard for nurseries, as well. they don't get enough money to reduce the costs either, so if the costs could come down, that would make it much more manageable, like in other countries. ruth is still looking for work, but says she is determined to find the rightjob which will make it financially worthwhile for herfamily. adina campbell, bbc news. one of the last known letters to have been written on the titanic is being put up for auction this weekend and is expected to fetch up to £80,000. some say more.

written by an american businessman on the day before the disaster in 1912, it's the only known letter on headed titanic paper to have fallen into the atlantic and survived. duncan kennedy reports. "wow, this boat is a giant in size and fitted up like a palatial hotel!" the words of oskar holverson from a letter he never sent. dated 13th april, 1912, it was written the day before the titanic disaster. mr holverson was travelling with his wife, mary. they were first—class passengers onboard the luxury liner and had been enjoying their voyage. "so far we've had good weather. "if all goes well, we will arrive in new york wednesday am". but mr holverson never did. he died with 1500 others. his body and the letter were later recovered. quite simply what we're talking about is the ultimate letter from the titanic. andrew aldridge is a world expert on titanic artefacts and says the letter is unique because...

it's the only one known to have been written on april 13th, 1912. secondly, it's the only letter written on titanic stationery to actually have gone into the water, so it's bearing those scars from that immersion in the cold north atlantic. that immersion, that stain of history, can be clearly seen, when you shine a backlight on to the letter. so too the white star shipping line watermark, sharing the page with oskar‘s innocent pre—tragedy thoughts. but it's notjust the letter being sold at this titanic auction. this suitcase belonged to millvina dean, the youngest survivor of the titanic tragedy, and these keys belonged to sidney daniels, a first—class steward. these alone have a reserve price of between £50,000 and £60,000. these two photos of the titanic have never been published before and are also in the auction.

one of a number in recent years that show the insatiable interest in the ship and its story. this deckchair went for £101,000. this key to a locker went for £85,000. whilst this, the violin that played on deck as the titanic sank, sold for £1.1 million. the oskar holverson letter is expected to sell for at least £60,000 as part of the auction in wiltshire tomorrow. a single page from titanic‘s enduring reach from history. duncan kennedy, bbc news. time for a look at the weather. a blustery weekend ahead i think. darren bett is, what's going to be? all eyes on the atlantic off course and not far away from us we find

storm. it's been deepening rapidly. probably at its longest