this is bbc news — these are the latest headlines in the uk and around the world. china kicks off a live fire military drill around taiwan — after a divisive visit by a top american politician angered beijing. the family of british 12—year—old archie battersbee have made a legal bid to move their son to a hospice, after the european court of human rights refused to help keep him on life support absolutely devastated, frustrated, angry, let down. so many emotions, really. the uk energy regulator ofgem announces changes to the energy price cap will now be made every three months instead of six

as europe faces a very challenging winter ahead. that's alongside a projected interest rate hike later in britain — for the sixth time in a row. fears of an extreme drought across europe grow — as the severe heatwave tightens its grip. hello and welcome if you're watching in the uk or around the world. taiwan's defence ministry says china has fired multiple ballistic missiles during a set of military exercises in the air and sea encircling taiwan. beijing launched the drills in response to a visit by nancy pelosi — the most senior us official to go to the self—governed island in 25 years. the exercises are taking place in some of the world's busiest waterways.

taiwan sees itself as independent, but china views it as its own. china's foreign ministry said nancy pelosi's visit to taiwan was a violation of the one china principle and justified its military exercises by blaming the us for the rising tensions in the region. translation: china has repeatedly made clear our stern opposition - and stress that we are firmly opposed to taiwan independence separatist forces and foreign interference. we will allow no room for any form of taiwan independence forces. if the us continues down the wrong path, then all consequences shall be borne by the us and do not say that we have not told them in advance. the us first made a malicious provocation and china has been compelled to act in self—defence. so, whatever we have done in response as a countermeasure would be justified and firm and resolute. our china correspondent, stephen mcdonell, has more from beijing.

for the last couple of days, china has been amassing large formations of planes and ships all around taiwan. and now the shooting has started, so these are live fire drills, and in those zones marked out to the north, to the south, east and west of taiwan, the pla has warned commercial ships not to enter, commercial planes not to fly through that airspace. interestingly, i see that the us air force has sent a ship, a plane there, to go and observe these military drills. this is something the us has done in the past when there have been live fire drills. there's talk that the pla could considerfiring missiles over taiwan's territory. if that happened, it would be a massive escalation, the likes of which we've not seen. but even already, these are unprecedented scenes. these zones, if they're all used up,

they would involve mainland military exercises moving into taiwan's territorial waters. and, you know, you just have to wonder if this was all worth it in terms of a visit. i mean, if you're adding up the advantages and disadvantages of having the number three leader from the us travelling to taiwan, certainly a lot of tension, a lot of pressure on that island now. and more concerning, potentially, is that now the pla has done this this year, does that mean every year it's going to have a dress rehearsal for a blockade of taiwan? a dress rehearsal for an attack, an attempt to seize the island and bring it back into the arms of the motherland, as china's foreign minister expresses it? so, a lot of questions, and certainly a lot of tensions building around taiwan as we speak.

nancy pelosi is now in south korea, where she has expressed concern over the increasing threat posed by north korea. in a joint statement with the south korean speaker, she said she supported efforts to maintain strong and extended deterrence against pyongyang. but the south korean president, who's on holiday, will not meet ms pelosi in person but will speak to her by phone instead. ms pelosi is expected to visit the demilitarized zone later today before heading to japan. let's talk to professor kerry brown, director of the lau china institute at kings college london and author of xi — a study in power. really good to have you with us. i wanted to start by asking you what your take is on these live fire drills by china, according to our correspondent in beijing these are

unprecedented scenes. how concerned are you that this action will escalate?— are you that this action will escalate? ~ , _, . escalate? well, extremely concerned. who can be relaxed _ escalate? well, extremely concerned. who can be relaxed about _ escalate? well, extremely concerned. who can be relaxed about this - who can be relaxed about this happening? china is now a very powerful military power. it doesn't have combat experience but it certainly has the ability to move towards this sort of aggression and bullying. it has given china i suppose an opportunity to really have a test of what might be possible. in that sense, the nancy pelosi visit was an opportunity and it's one that the chinese people's liberation army and navy are taking. talk to me a bit about president xi's goals. how central a goal is it to unify taiwan and if it is a central goal, underwhat to unify taiwan and if it is a central goal, under what sort of

timeframe?— central goal, under what sort of timeframe? ~ , _ timeframe? well, this is a policy, the reunification _ timeframe? well, this is a policy, the reunification of— timeframe? well, this is a policy, the reunification of taiwan, - timeframe? well, this is a policy, the reunification of taiwan, that l timeframe? well, this is a policy, | the reunification of taiwan, that he didn't create. he's inherited it from every leader of the communist party back to 1949. this has been a major objective. so, he doesn't have any real flexibility on this issue. for his domestic audience, who are very much wedded to china being a great, powerful country, to have the sort of visit by an american key politician, number three in the hierarchy, against all kind of beijing demands, is a loss of face. part of this is about making sure that the chinese domestic public do not see their leader as being weak. i don't think that china wants to undertake any kind of final military action, that would be obviously an absolute catastrophe. but they certainly can't be seen as weak. so

a lot of the symbolism we see now is something that is driven by domestic politics, not necessarily from president xi but something he is reliant on and has to serve. mit? reliant on and has to serve. why would it be _ reliant on and has to serve. why would it be a _ reliant on and has to serve. why would it be a catastrophe for china to have conflict with taiwan? because it would completely destroy the key supply chains around one of the key supply chains around one of the world's well, probably the world's key economic area. it would smash apart global semiconductor supply, smash apart global semiconductor supply, because taiwan supplies 55% of the world semiconductors, which we are so reliant on. it would shutter china's international image and it would create misery for 23 million people on taiwan, and the people involved in china too. it would be a third world war, basically, because he would have the united states against china, that's what it would involve. so when you hear politicians and others talking about this as a confrontation that we must engage in, it's really,

you've got to remember, do calculations and the risks from this would be absolutely devastating for everyone. it is would be absolutely devastating for eve one. , , �* everyone. it is interesting we've not to everyone. it is interesting we've got to this _ everyone. it is interesting we've got to this position _ everyone. it is interesting we've got to this position because - everyone. it is interesting we've got to this position because of l got to this position because of nancy pelosi playing to a domestic audience and xijinping playing to nancy pelosi playing to a domestic audience and xi jinping playing to a domestic audience. sub president xi, how secure is he given the chinese response to covid and it is facing economic challenges, isn't it? it’s economic challenges, isn't it? it's not easy to _ economic challenges, isn't it? it�*s not easy to get rid of a central leader in china. i think he's secure but the communist party of china is seeking legitimacy and taiwan is an issue, being tough on taiwan. as i say, they don't have much flexibility about it. nancy pelosi's visit, i understand why america would want to stress solidarity with taiwan, because of the security

relationship. i think that the taiwanese caught between this, it's a mixed blessing. it's good to have american attention and probably crucial, but to be part of a kind of game where taiwan is caught between these two superpowers is really, really not comfortable. the taiwanese people now are dealing with the consequences of this. it must be very uncomfortable to be in taipei and other cities in taiwan today when you know about this escalation happening around you and how missteps could be calamitous. i hope they don't happen but really this isn't a relaxed situation. really good to talk to you. thank you. the family of archie battersbee have made an application to the high court to move the 12—year—old to a hospice. last night, the european court of human rights refused to intervene, ending the family's last hope of using the law to prolong his treatment. archie has been in a coma since april. our health reporter

katharine da costa has been at royal london hospital and can explain what's been happening. at the centre of this you've been hearing about 12—year—old archie battersbee and his parents previously described him as very active, energetic boy, he was a talented gymnast. but he's been in a coma for nearly four months following a catastrophic brain injury that he sustained in an incident at home in essex in early april. his mother believes he may have been taking part in an online challenge. his parents have been fighting tirelessly to have his life support continue, but the doctors treating him have said that he is brain dead, that he is unresponsive and there is no chance of recovery and they feel it's in his best interest for treatment to end. last night, the european court of human rights rejected the parents' bid to intervene, effectively ending their legal battle and archie's mum said

she is devastated, heartbroken. the hospital trust has said that no change to archie's treatment will be made until all legal proceedings have been finalised, but they have advised against moving him because they said he so vulnerable, his condition is unstable and if he's moved there is a risk he may deteriorate rapidly before his family get a chance to say goodbye. but his family say it is their wish that he is moved to a hospice so they can say goodbye to him away from the noise of the hospital and in the way they like. the family have insisted they will fight to get to move to a hospice after the european court of human rights rejected their 11th hour bid to postpone the withdrawal of his life support. they say they want the 12—year—old to have a dignified death at a place of their choosing.

the price cap on household energy bills in england, scotland and wales is to change every three months, rather than six. the industry regulator, ofgem, said the aim was to provide some stability in the energy market. bills soared in april, and are expected to rise again in october, when the cap goes up. the chief executive of ofgem, jonathan brearley, said they wanted to support customers. i talk to customers every week and i know that everyone is worried about the way our energy market is changing and energy prices are changing. that is driven by global events, it's ultimately driven by more demand from asia but most importantly, russia, for whatever reason, withholding gas from that international market. this market isn't only facing rising prices, it is very, very volatile. what we've got to do as a regulator is two things. first, yes we need to make sure companies can get back the cost of the energy that they need to buy in that international market. equally, we need to make sure we're not going back to the bad old days

when they are making very big profits on top of that. now, the changes we're making today to make sure that the change in price regulation can keep up with the change in the market. it does mean as costs go up, yes the price couple change more frequently, but also costs come down those prices will come down more quickly as well. what we are doing is trying to make sure that customer interests are protected in what ultimately is a very challenging market for everyone. let's speak to justina miltienyte, head of policy at uswitch. thank you forjoining us. can we go back to basics. explain to us, what is the price cap?— back to basics. explain to us, what is the price cap? good morning. so, the rice is the price cap? good morning. so, the price cap — is the price cap? good morning. so, the price cap is _ is the price cap? good morning. so, the price cap is a — is the price cap? good morning. so, the price cap is a mechanism - is the price cap? good morning. so, the price cap is a mechanism for- the price cap is a mechanism for setting a maximum price of the standing charge and unit rate that suppliers can charge on tariffs.

originally it was introduced so that suppliers don't overcharge customers who haven't switched for a long time. but now 2a million customers are on this price cap tariff. so it is ofgem's way of regulating prices for the majority of customers. quite what is your view of the change to the cap going to be quarterly rather than every six months? so, ofgem is right that the market is volatile and those costs have to ultimately be passed on because suppliers are incurring them. what that means for customers is that there is more uncertainty, bills will change every three months rather than every six months, and the first change that is not expected, we've got used to be october and april one, now we are going to have one on the 1st of january which isjust going to have one on the 1st of january which is just after the holidays and at the most expensive time of year. {iii

holidays and at the most expensive time of year-— time of year. of course, it means once wholesale _ time of year. of course, it means once wholesale prices _ time of year. of course, it means once wholesale prices go - time of year. of course, it means once wholesale prices go down, | time of year. of course, it means i once wholesale prices go down, bills will come down more quickly, doesn't it? , , it? ofgem will be reviewing it every three months. _ it? ofgem will be reviewing it every three months, so _ it? ofgem will be reviewing it every three months, so if— it? ofgem will be reviewing it every three months, so if the _ it? ofgem will be reviewing it every three months, so if the cost - it? ofgem will be reviewing it every three months, so if the cost goes . three months, so if the cost goes down, that will be reflected in the price cap sooner. we don't actually see that happening in the next 6—9 months. at the moment itjust means there will be more increases. is at there will be more increases. is at our there will be more increases. is at your view. — there will be more increases. is at your view. then. _ there will be more increases. is at your view, then, that _ there will be more increases. is at your view, then, that this is about protecting energy companies and suppliers rather than customers? well, it is, that is what ofgem is saying. ofgem has said that this measure will help to stabilise the market. it will help to prevent more suppliers failing but nobody wants to see suppliers failing, that's a lot of people for suppliers, customers who have been with those suppliers and ultimately more costs. let's not hide from the fact this is not good news for customers, it

means more rises for customers at the most expensive time of year when the most expensive time of year when the consumption is highest. 50. the most expensive time of year when the consumption is highest.— the consumption is highest. so, what would ou the consumption is highest. so, what would you like _ the consumption is highest. so, what would you like to _ the consumption is highest. so, what would you like to see _ the consumption is highest. so, what would you like to see and _ the consumption is highest. so, what would you like to see and how - the consumption is highest. so, what would you like to see and how much l would you like to see and how much of a priority would you like this to be, whoever becomes our new prime minister in september? 50. be, whoever becomes our new prime minister in september?— minister in september? so, while it is robabl minister in september? so, while it is probably the _ minister in september? so, while it is probably the right _ minister in september? so, while it is probably the right thing - minister in september? so, while it is probably the right thing to - minister in september? so, while it is probably the right thing to do - is probably the right thing to do for suppliers to update the costs and for them to be passed through, thatis and for them to be passed through, that is not good news for customers and there needs to be more protection for customers this winter. this is not affordable for a lot of us and more needs to be done. i do believe that this will be the first thing to do for the new prime minister and there needs to be more support this winter, just to make sure that customers are able to heat their homes and get through these high price rises before those prices fall. a , high price rises before those prices fall, , ., high price rises before those prices fall. , ., ., fall. many thanks for your time. the bank of england _ fall. many thanks for your time. the

bank of england is _ fall. many thanks for your time. the bank of england is widely _ fall. many thanks for your time. the bank of england is widely expected l bank of england is widely expected to make history today by increasing uk interest rates by the highest amount since 1995. the bank is expected to make an announcement at noon to tackle rising inflation. inflation is currently at 9.4%. but the current target is 2%. the current interest rate is at i.25%. and the bank of england is expected to increase the interest rate by 0.5%. the conservative leadership candidate and former chancellor rishi sunak spoke at the conservative leadership hustings last night in cardiff and said any response to inflation would "need to be careful". i think the response to dealing with inflation right now is for us to be careful. i don't think launching on a spree of unfunded promises costing tens and tens of billions of pounds is a sensible thing to do. i think it risks making the situation worse, risking it lasting far longer. but also, itjust means, as i said, all we're doing when we do that is putting lots of borrowing on the country's credit card, we're asking our kids and our grandkids to pick

up the tab. but his rival the current conservative foreign secretary liz truss, says we need to be "bold" and put her case forward for tackling inflation. the best way of dealing with inflation as monetary policy, and what i've said is i want to change the bank of england's mandate to make sure in the future it matches some of the most effective central banks in the world controlling inflation. the last time the mandate was looked at was in 1997 under gordon brown. things are very different now. let's talk to the personal finance expert gemma godfrey. thank you forjoining us. how concerned should people be about this potential interest rate rise? well, families are already struggling and they are fighting a war on all fronts. so, it is of deep concern but now not only are people going to be struggling to feed their

families, keep their homes warm and alsojust get to families, keep their homes warm and also just get to work, but also the cost of borrowing is going to soar because what tends to happen is banks will pass on higher borrowing costs more quickly than they will do anything on savings. the reason the bank of england is going to be increasing interest rates is to try and tackle inflation but that's going to take time. in the meantime, people are going to still be struggling with high costs at a time when borrowing is also going to be a lot more costly. 50. when borrowing is also going to be a lot more costly.— lot more costly. so, in terms of mortgages. _ lot more costly. so, in terms of mortgages. a — lot more costly. so, in terms of mortgages. a lot _ lot more costly. so, in terms of mortgages, a lot of _ lot more costly. so, in terms of mortgages, a lot of people - lot more costly. so, in terms of mortgages, a lot of people are | lot more costly. so, in terms of. mortgages, a lot of people are on fixed rate mortgages. this will hit people on variable rate mortgages, they will see their mortgages rise. what about first—time buyers, what impact could it have on them? the difficulty is — impact could it have on them? tue: difficulty is that impact could it have on them? tte: difficulty is that this impact could it have on them? "tte: difficulty is that this is impact could it have on them? t'te: difficulty is that this is just making it harder to get onto the property ladder. so, because of interest rates rising it means mortgage payments will be increasing, it makes it harder that affordability level, and criteria banks are going to be looking up to be able to give people mortgages is going to get tougher. so, it does mean that people on variable rate

mortgages are going to be hit instantly. people on fixed rate mortgages where that fixed term might be ending soon, again, that's something they will be concerned about. peoplejust something they will be concerned about. people just wanting to get onto the property ladder and to be able to afford a mortgage in the first place, it's going to be a lot tougher. ts first place, it's going to be a lot tou:her. , ., , , .,, tougher. is there anything people can do to mitigate _ tougher. is there anything people can do to mitigate these - tougher. is there anything people can do to mitigate these rises? . tougher. is there anything people can do to mitigate these rises? i | can do to mitigate these rises? i know for example my fixed rate mortgage came to an end a little while ago and i learntjust in time, actually, but i didn't know in advance that you can fix a rate as much as six months in advance to counter rising interest rates further down the line. the challenge here is obviously _ further down the line. the challenge here is obviously that _ further down the line. the challenge here is obviously that a _ further down the line. the challenge here is obviously that a lot - further down the line. the challenge here is obviously that a lot of - further down the line. the challenge here is obviously that a lot of the . here is obviously that a lot of the time what we're doing is predicting where rates are going to go and as soon as announcements come in, for example today, it means that banks are going to react. so, banks are already going to be pricing in a rate rise and it means when we see our energy costs rising as well but fixing those costs also are getting tougher and people are paying a premium. it makes harder to end the

system but of course the more you can do to speak to suppliers is very important. so if people are struggling, the only they can communicate that the better because nobody wants people to be getting into trouble and actually having payment plans that work is of benefit to everybody because what you want to avoid late payment fees, getting into debt. the thing to do is to be more proactive, look for leaks in budgets, speak to energy suppliers, speak to banks and try and be a bit more savvy about where you shop, the times you shop. a lot of hard—working families are doing everything they can. there is a help for household scheme announced recently. go on the government website because there are certain thingss there to help cut the cost of living. thingss there to help cut the cost of livina. ., ~ thingss there to help cut the cost of livina. ., ,, i. much of europe is in the grip of another heatwave and this time there are worries over a potential drought. france has seen record low rainfall and parts of england are now

facing a hosepipe ban. the european commission has warned member states to re—use treated urban waste water to irrigate farmland. the bbc�*s tim allman reports. in the city of toulouse, you can almost walk on water. the garonne is at such a low level now, fishermen are able to wade out, the river barely covering their ankles. weeks of hot weather, and crucially no rain, has had a dramatic impact. translation: we are seeing record levels of drought. - that is to say, we've never seen the ground as dry as it is at the moment. over the coming days, there's not a lot of rain expected, so there's no end in sight to this drought. so, how bad has it got? well, according to meteorologists, in the month ofjuly...

in this part of northern france, not far from dunkirk, water shortages aren't usually a problem. but even here, the yser river is below its usual level. the local authorities have placed the area under a drought crisis alert for the first time, pointing the finger of blame in one direction. translation: the effects of drought are a direct - consequence of global warming, which is only intensifying. we hear about it, we see the physical effects on the ground. it's undoubtedly one of the effects of global warming, which is accelerating and intensifying. lack of water has all sorts of consequences. this is denis, a localfarmer whose potato crop is in serious danger.

translation: if it doesn't rain - between now and the 15th of august, meaning in 10—12 days, we can easily lose up to 50% of our crop. it's notjust france facing a potential drought. this was the river ver in southern england, which has now run completely dry. water companies have already imposed hosepipe bans on customers in several counties and london could be next. unless rain arrives soon, the impact of the potential drought will only become more severe. tim allman, bbc news. australia is counting the cost of catastrophic floods this year — which may be the most expensive natural disaster in the country's history. the multi—billion—dollar rebuilding effort could take years. and for victims without property insurance — the future is uncertain. the insurance council of australia has told the bbc that some flood—prone areas might have to be abandoned because the risks are too high.

phil mercer reports from sydney. so this whole back area and the bottom level was submerged in water and basically everything that was downstairs was destroyed. murky brown floodwaters have invaded this woman's property three times this year. her home isn't insured because the premiums are too expensive and cover is hard to find. i don't have flood insurance, and you would be very hard—pressed to find any company that will cover you in a flood zone, even in a one in 100 yearflood zone because you're very high—risk. it is very unsettling and it is hard to start over because you are like, is it worth fixing, is it worth replacing things? if i sell my house, can i sell my house? there is a lot of uncertainty. it is estimated that one in ten australian homes are now vulnerable to flooding. some might have to be abandoned.

there is a case already that there are areas where insurance is simply unaffordable because of the flood factor. we could take a more extreme view and that is start drawing lines around areas that we know are going to be flood—prone, and there is simply no engineering solution. and at that point step in and offer those people the opportunity to sell their homes to government and move to other areas. thousands of people were forced to leave their homes in record—breaking floods that swamped parts of eastern australia. here in windsor, the bridge, which is a main thoroughfare, was completely submerged. the waters have obviously receded but what they have left behind its financial pain that many residents will be feeling for years. this man is working to revive his famous floating restaurant on the hawkesbury river near sydney. financially it has been an absolute disaster. as it stands, due to the floods,

i haven't operated since february 2021. probably over $1 million i've lost through major floods, two lots of covid shutdowns and bushfires, and with very little assistance at all. australia is a land well used to nature's extremes, but for many, back—to—back disasters are testing their resilience like never before. detectives searching for a student nurse who vanished nearly a month ago in south london are continuing to question three men who have been arrested on suspicion of murder. 24—year—old owami davies, left herfamily home in grays, essex, and was last seen in west croydon on 7thjuly. police say she was captured on cctv in the company of a man on the night she was last seen alive, and are keen to speak to a van driver seen passing

owami on the street. now we say goodbye to viewers on bbc two. thank you for your company. it's been two years since a massive explosion in beirut killed more than 200 people. an investigation into what happened was paused in december after political pressure, and the un is now being asked to intervene. as our correspondent carine torbey explains, it leaves a city still in limbo, and victims still searching for answers. graduation marks the start of a new journey for these students. but one seat is empty. this gown was supposed to be worn by a student killed in the beirut port explosion. he was at home. his classmates remember him as a great friend and an aspiring rapper.

in our case, it is not only the feeling of grief that kills you from the inside, there is another feeling of injustice that shatters you in every way. this injustice is because of the way our loved ones were killed, and there was no war, and it wasn't a terrorist attack. it has been two years since a warehouse filled with ammonium nitrate exploded in the port of beirut. the blast swept across the city, killing over 200 and injuring thousands. it devastated entire neighbourhoods and displaced tens of thousands. friends and family of the victims have hung pictures of their loved ones near the port area. these pictures stand as a testimony

to the scale of the disaster, but they are also a reminder that for the families of the victims there can only be solace when justice is served. two years on, the investigation into the blast has completely stopped. activists and relatives of the victims say the endless manoeuvring is drowning out the chance for justice. we have seen all the strategies and all the tools that the political forces have used in order to stop accountability in the blast investigation, but also in other crimes we are seeing the same strategies being used. what we have today is a society that is more aware of that impunity regime, that is more aware also of the need to break with this regime. meanwhile, shock waves from the blast are still being felt. these wheat silos at the port are slowly crumbling. some of the wheat inside couldn't be emptied after the explosion.

it has fermented and has been igniting under the soaring sun. two years on, they cannot fully stand, nor have they fallen. they linger as if awaiting closure. the russian gazprom company claims western sanctions make it impossible to return to russia a turbine that's been in canada for repairs. moscow alleges the missing turbine has forced it to cut gas supplies to europe. germany says there are no western obstacles to sending the turbine to russia. this comes as fears of gas shortages — and even blackouts — are growing in germany. jenny hill has this report. he's holding europe's feet to the fire.

vladimir putin knows germany relies on his energy, that its industry needs his gas. the aluminium they produce here flows down vital supply chains — cars, medical equipment, wind turbines. but no—one can rule out shortages this winter. honestly, if they cut energy, there is no real contingency plan. the only thing you can do is then prioritise, and, let's say, allocate the capacity that you could still run to the most important markets, where you think the damage to society is the biggest, right? so you'd cut back on production? that's the only way. russia cut gas to europe, but it wants the world to think it's germany's fault. so, today, a photo—op. the german chancellor and the german turbine russia says it can't do without. olaf scholz insists it's available and there is no technical reason for russia to withhold its gas. but this is a chancellor

who promised to phase out coal and end nuclear power. he is having to rethink those pledges now. "germany's last three remaining nuclear power stations," he said, "only provide electricity, and only a small amount." "nevertheless, it could make sense to keep them going." it would be a huge political compromise. one of those plants is in bavaria, and provides 12% of the region's electricity. it's due to be decommissioned at the end of the year. in the nearby town of landshut, they're painfully aware that germany doesn't yet have enough gas stored for the winter. translation: we are preparing for disaster management. - should the gas supply break down, energy intensive industries would be the first to be taken off the supply grid, which would have catastrophic consequences for industry in our region. secondly, we would have to ensure places like hospitals

and old peoples' homes are looked after. vladimir putin is casting a long shadow over the baking heat of the german summer. he may not yet have triggered the economic and political turmoil he'd no doubt like to unleash in the heart of europe, but he is forcing governments like germany's into difficult decisions and uncomfortable choices. and that's before you throw soaring energy bills into the mix. europe faces a volatile winter. and its leaders, a critical task — to insulate europe from russian power. jenny hill, bbc news, landshut, in bavaria. a charity which provides security tojewish people in the uk says that anti—semitic incidents fell by more than 40% in the first half of this year — after an all—time record high in the same period last year. but the report, by the community security trust, says

that the proportion of incidents involving children has increased. let's speak to dave rich, who is director of policy at the charity community security trust. good to have you with us, thank you forjoining us. why do you think we have seen a decrease in anti—jewish hate incidents, and how surprised are you? hate incidents, and how surprised are ou? ., . , . are you? good morning. we expected such a large — are you? good morning. we expected such a large decrease _ are you? good morning. we expected such a large decrease this _ are you? good morning. we expected such a large decrease this year, - such a large decrease this year, anything else would have been intolerable, because last year we had such an all—time record high in the number of anti—jewish attacks and anti—semitic hate incidents in this country, that happened because of anti—semitic reactions to the conflict in israel and gaza in may 2021, there has been no similar conflict or other trigger event to cause another increase or a big spike this year, so anything other

than a large fall would have been really worrying. find than a large fall would have been really worrying-— really worrying. and yet the proportion _ really worrying. and yet the proportion of— really worrying. and yet the proportion of incidents - really worrying. and yet the - proportion of incidents involving children, eitheras proportion of incidents involving children, either as victims or especially as perpetrators, has increased. especially as perpetrators, has increased-— especially as perpetrators, has increased. why is that? that is correct, increased. why is that? that is correct. and — increased. why is that? that is correct, and worryingly - increased. why is that? that is correct, and worryingly the - increased. why is that? that is - correct, and worryingly the number of incidents happening in and around schools is not really the reason for this, because we have seen a big drop in those incidents. but still we are seeing an increase in the proportion of anti—semitic activity and hate incidents involving children. i think we need to look much more deeply into why this is happening, i suspect the online space and the role of anti—semitic ideas on social media is influencing this activity interestingly, the incidents where the offenders were children were more likely to involve some element of political or extremist language, than other kinds

of anti—semitic hate incidents involving adults. that might be an indicator of what is going on. interesting, there have been in general more anti—jewish hate incidents online, have at there? tell me a little bit more about why that might be. is it because we were more in the online space during the pandemic? more in the online space during the andemic? , , ., more in the online space during the andemic? , , . ., pandemic? this is a trend we have seen in the — pandemic? this is a trend we have seen in the last _ pandemic? this is a trend we have seen in the last few _ pandemic? this is a trend we have seen in the last few years - pandemic? this is a trend we have seen in the last few years of - seen in the last few years of increasing the amount of anti—semitism happening online. during the pandemic, of course as people wear at home all, social distancing, lockdowns, that represented a growing proportion of what we were seeing. in the first six month of this year, there has been a reversal, those restrictions on face—to—face interaction have gone, and so behaviour has moved on. we are starting to see a shift back to the kind of anti—semitic incidents we were getting three or four years ago, a bit more on the

street, a growing proportion involves face—to—face interactions and violence, other than violence is only a minority, more of that kind of day—to—day off—line anti—semitism. people are engaging more again. the anti-semitism. people are engaging more aaain. , ., more again. the number of anti-semitic— more again. the number of anti-semitic incidents - more again. the number of anti-semitic incidents fell i more again. the number of. anti-semitic incidents fell by more again. the number of - anti-semitic incidents fell by more anti—semitic incidents fell by more than a0%, how does that compare with where we were five or ten years ago? this is still the fifth highest total we have ever had for the first six months of any year. we recorded over 100 anti—semitic incidents in every month in the first six months of this year. the highest month reached a total of about 160. that is double or even more than double we were five or ten years ago. we don't have a war in the middle east in the first—half of this year to push the numbers really high, we are seeing what that baseline looks like, and the baseline is significantly higher than where we werejust a years significantly higher than where we

were just a years ago. good significantly higher than where we were just a years ago.— significantly higher than where we were just a years ago. were 'ust a years ago. good to talk to, were just a years ago. good to talk to, thank were just a years ago. good to talk to. thank you _ were just a years ago. good to talk to, thank you for _ were just a years ago. good to talk to, thank you for your _ were just a years ago. good to talk to, thank you for your time. - ajury in texas has begun weighing how much in damages a prominent far—right us conspiracy theorist should pay for claiming that the massacre of 20 children and six teachers at sandy hook elementary school was a "hoax." alexjones, founder of the website infowars, has been found liable in multiple defamation lawsuits brought by parents of the victims of the 2012 shooting. the parents are seeking compensation of a $150 million from jones, who recently admitted that the shootings were not fake, but real. 100% real, as i said earlier, as i said here yesterday, 100% real. the media still ran with lies that i was saying it wasn't real, it is incredible, they won't let me take

it back, theyjust want incredible, they won't let me take it back, they just want to incredible, they won't let me take it back, theyjust want to keep me in the position of being the sandy hook man. let's bring you some other stories from around the world. the lower house of parliament in australia has passed an ambitious climate change bill that will see carbon emission reduction targets written into law. it commits the country to a forty three percent cut in emissions by 2030 and net zero by the middle of the century. the bill must still be approved by the senate. a senior taliban official says the afghan government is investigating the us assertion that the al qaeda leader was killed in a drone strike in kabul. the head of the political office of the taliban said they were unaware of his presence in the afghan capital. a new report says coral in some parts of the great barrier reef appear to have recovered from storms and bleaching events, but remains vulnerable. the north of the world's largest reef system show the largest amount of coralfor 36 years. but there is less in the southern section.

a man from yorkshire has been confirmed as a new guinness world record holder, after he reached speeds of 40mph in his electric wheelchair, operated by his head. jason liversidge was diagnosed with motor neurone disease back in 2013 and is paralysed from the neck down. but asjo makel reports, that hasn't stopped his need for speed. it's fantastically different and it's the first time it's been done. he's already driven this adapted wheelchair to hit motorway speeds of nearly 67 mph. that got him a guinness world record. but now jason is back at elvington, near york, to try for another. using his computerised voice, he explains why.

i hope to achieve a new guinness world record for the fastest head—controlled wheelchair. to get on the track again will be a great achievement and it will be the hardest challenge yet. jason's health is much worse. last time he controlled the chair with his hands, but motor neurone disease has now paralysed him from the neck down. he has a tracheotomy and needs a ventilator to breathe. at home, he needs round—the—clock care. fabry disease affects his organs, and he needs dialysis for his failing kidneys, and in may, he had a serious cardiac arrest which doctors thought he would not survive, but he did. and it's not the first time he has proved them wrong. the doctors are way past giving any sort of prognosis. they can't explain it, the same as we can't explain it. ijust put it down to jason's amazing mind and his will to live. he promised lily and poppy he would fight and that is what he is doing.

how many times has daddy proved them wrong? probably about 10,000. i think that he is very brave and, to be honest, i did not agree with him doing the world record because he's just had a cardiac arrest, but he was absolutely like, he really wanted to do it. but it's not going to be easy. i remote control the chair with my head with switches at the side and front of my helmet, but this will be really challenging because even slow movements are very difficult and it depends how much movement i have on the day whether i can control the chair and achieve my goal. the chair has been adapted by experts from the bluebird team who recovered and restored the k—7 boat used by famous speed record breaker donald campbell. they have two very sensitive switches, very light operation for very short travel and we are setting them up precisely so we can tune them

to the movement that jason's got. but two attempts in, and it's clear something is wrong. both times, jason ends up veering off the track and into the verge. is your head fixed on the right switch all the time, jason? it's one of those things, you have |to make it run on a straight line. | it's a bit like tracking a car. the same thing. will it be third time lucky? that's it, lad. you've smashed 40? nearly 50 on the second run. the average is 41.8215. and that is a new guinness record, subject to ratification. applause. well done, jason! absolutely outstanding.

why would you spend $70 million on making a film, and then decide not to release it? that's what the movie world is wondering after warner brothers scrapped their new batgirl release filmed in glasgow in scotland. you'd think the movie would have to pretty bad, although there could be other factors as involved. reporting scotland's david farrell has the story. kelvingrove, george square and glasgow's merchant city were just some of the locations used for what should have been the latest dc comics movie, batgirl. the film, starring leslie grace and michael keaton, was due to be released in cinemas and on the streaming platform hbo max later this year, until overnight warner brothers scrapped its release, leaving fans disappointed. i am very disappointed as a dc fan and a fan of the character, hoping to see this character

on the screen with hbo. also on a personal level and as a latino, having a latina actress in leslie grace leading this film, it hurts on a personal level because there is a lack of representation for the latino community within hollywood. with a budget of more than $70 million, warner brothers said the decision not to release the film was due to a strategic shift under new leadership, ultimately meaning the company is investing in movies made for the cinema rather than streaming, a decision that has surprised the industry. i am quite shocked and i think it is quite gut—wrenching for the people who worked on it, in terms of crew in scotland, i think it is sad but things go on and you continue to find work and there is still lots of production going on, so that's a good thing. batgirl was a big dealfor glasgow, and it brought almost 2000 jobs to the local film industry, and streets like this were transformed into hollywood film sets. but was it worth it for local businesses? it was a bit of an upheaval

from a business point of view, but it was still fun, it was fun to have it all in the street and have all the goings—on. i feel as if it is a slap— in the face to us, all the tourism that the council was saying the movie would bring in, i that is not going to happen. so they spent £150,000 - to the film crew, that is lost. i hope they have got - something in the small print that they get that back. glasgow city council offered warner brothers a £150,000 support grant to film in the city, and today they confirmed that money has not yet been paid to the film studio and discussions are ongoing. so, whilst we won't see batgirl 2 swooping into glasgow anytime soon, it won't be the last bit of hollywood to come to town. across the world, birds are being photographed tangled up in our rubbish, including discarded ppe. images are being submitted to an online project, called birds and debris,

and nearly a quarter of the photographs show them nesting or entangled in disposable face masks. our science correspondent victoria gill has more. a grim but familiar sight in many urban waterways. how many different types of plastic are just floating here? yeah, i can see easily one, two, three, four, five, six, seven... seven or eight different types of plasticjust here. and it is the wildlife that inhabits these waterways that is living with and living in our rubbish. these images, submitted by members of the public and collected by scientists, show the global extent of the problem. scientists asked people to upload photographs and reports of birds tangled or nesting in rubbish. we have got about 400 reports covering every continent, except antarctica. so literally everywhere. and then covid happened and all of a sudden we have all of these submissions — facemasks, surgical gloves.

is a mask or ppe item, is that more of an environmental problem than a plastic bag or plastic bottle? yeah, so a mask is not just one thing. you think about it, you have the ear loops which are made of elastic, you have got sheeting on them, you have got the rigid piece of flexible plastic that fits over your nose. so you have a whole bunch of ways that wildlife can seemingly interact with it. in some cases, like this one in stratford—upon—avon, nature lovers have been able to help. 0h, perfect, well done. cheering. but this project shows the surge in pandemic—related waste that is ending up in our environment. scientists say the systems we have for managing that waste cannot cope and that wildlife and wild spaces are bearing the consequences.

a 62—year—old french sailor survived for 16 hours in an air bubble inside his sailing boat after it capsized in the atlantic ocean, before being rescued by spanish coastguard divers. emergency services worked against the clock in rough seas to rescue laurent camprubi. the 12—metre vessel had set sail from the portuguese capital lisbon and sent out a distress signal on monday evening. but the rescue team had to wait until the next morning because of the rough sea. mr camprubi survived because he was wearing a special suit used in sailing competitions. the british actor who starred in the oscar—winning slumdog millionnaire, dev patel, has broken up a knife fight while in adelaide, australia. a man and a woman were reportedly fighting in the street when the man was stabbed in the chest. dev patel�*s spokesman says the star, who was with a group of friends, "acted on his natural instinct" and successfully de—escalated the situation. they remained on site to ensure the police and the ambulance arrived.

when a farmer in new south wales, australia, discovered a large black object sticking out of the ground in a remote part of his land, he thought it was a tree. but it turned out to be a piece of space junk which had fallen out of the sky. the australian space agency later said it came from a spacex capsule. other pieces of space debris have fallen to earth — the most recent from chinese rockets — and such events may become even more common, according to experts. twins, elma and thelma from stockport, turned 103 today. they've lived through the second world war, the coronation, and say their secret is a sip of brandy before bed each night. they could be the oldest twins in the uk. and of course such a big milestone deserves a party, so we sent our reporter

davinia ramos along. no! happy birthday to you. cheering. enjoy life, don't let anything get you down, but don't worry, that's it. ~ , ., , you down, but don't worry, that's it. . , ., , ., you down, but don't worry, that's it. ~ , ., , ., ., you down, but don't worry, that's it. , ., , ., .,. you down, but don't worry, that's it. wise words from elma and thelma on da at it. wise words from elma and thelma on day at birthday, _ it. wise words from elma and thelma on day at birthday, they _ it. wise words from elma and thelma on day at birthday, they were - it. wise words from elma and thelma on day at birthday, they were born i on day at birthday, they were born on day at birthday, they were born on the 3rd of august 1919 and grew up on the 3rd of august 1919 and grew up together in stockport, and although times were tough, they had fun, played together and bickered like most siblings. what are your best memories? we like most siblings. what are your best memories?— like most siblings. what are your best memories? ~ , ., best memories? we did play together, didn't we? we — best memories? we did play together, didn't we? we did. _ best memories? we did play together, didn't we? we did. we _ best memories? we did play together, didn't we? we did. we did best memories? we did play together, didn't we? we did. we did have best memories? we did play together, didn't we? we did. we did have our little troubles _ didn't we? we did. we did have our little troubles and _ didn't we? we did. we did have our little troubles and little _ didn't we? we did. we did have our little troubles and little fights. - little troubles and little fights. our mother used to bang our heads together. our mother used to bang our heads to . ether. ., ., our mother used to bang our heads to . ether. . . ., our mother used to bang our heads touether. . . ., ., together. elma and thelma have lived throu~h together. elma and thelma have lived throu . h the together. elma and thelma have lived through the second _ together. elma and thelma have lived through the second world _ together. elma and thelma have lived through the second world war, - together. elma and thelma have lived through the second world war, seen l through the second world war, seen 20 prime ministers come and go and say it is surreal —looking back of

their lives. say it is surreal -looking back of their lives-— say it is surreal -looking back of their lives. ,, , ., their lives. the bombs used to come over at night. _ their lives. the bombs used to come over at night. we — their lives. the bombs used to come over at night, we used _ their lives. the bombs used to come over at night, we used to _ their lives. the bombs used to come over at night, we used to have - their lives. the bombs used to come over at night, we used to have to . their lives. the bombs used to come over at night, we used to have to go j over at night, we used to have to go to the _ over at night, we used to have to go to the river— over at night, we used to have to go to the river and we used to have to id to the river and we used to have to go into_ to the river and we used to have to go into the — to the river and we used to have to go into the caves, go in there, out of the _ go into the caves, go in there, out of the bombs, we could hear them. and in_ of the bombs, we could hear them. and in the — of the bombs, we could hear them. and in the cave the water used to run down — and in the cave the water used to run down the walls, it was like that. _ run down the walls, it was like that. we — run down the walls, it was like that, we had to sit there all night, then go— that, we had to sit there all night, then go to — that, we had to sit there all night, then go to work the next morning. | then go to work the next morning. remember then go to work the next morning. i remember standing at the back bedroom window, looking out, the planes were going over.— planes were going over. today is a far cry away _ planes were going over. today is a far cry away from _ planes were going over. today is a far cry away from that, _ planes were going over. today is a far cry away from that, they - planes were going over. today is a far cry away from that, they are i far cry away from that, they are able to celebrate with their loved ones and meet the youngest member of the family, their great—great—grandson who is just seven weeks old. 50 great-great-grandson who is 'ust seven weeks oldi great-great-grandson who is 'ust seven weeks old. so pleased to see them talking _ seven weeks old. so pleased to see them talking and _ seven weeks old. so pleased to see them talking and go _ seven weeks old. so pleased to see them talking and go through - seven weeks old. so pleased to see them talking and go through their. them talking and go through their stories. _ them talking and go through their stories. so— them talking and go through their stories, so interesting. _ them talking and go through their| stories, so interesting. somebody has lived — stories, so interesting. somebody has lived that _ stories, so interesting. somebody has lived that long _ stories, so interesting. somebody has lived that long and _ stories, so interesting. somebody has lived that long and been - stories, so interesting. somebody has lived that long and been fosu| has lived that long and been fosu mensah. — has lived that long and been fosu mensah. it — has lived that long and been fosu mensah. it is— has lived that long and been fosu mensah, it is so _ has lived that long and been fosu mensah, it is so interesting. -

has lived that long and been fosu mensah, it is so interesting. itithe. mensah, it is so interesting. we live fairl mensah, it is so interesting. live fairly close to each other, didn't we?— live fairly close to each other, didn't we?- what - live fairly close to each other, didn't we?- what were l live fairly close to each other, . didn't we?- what were they live fairly close to each other, didn't we? yeah. what were they like rurowin didn't we? yeah. what were they like growing up? — didn't we? yeah. what were they like growing up? wonderful. _ growing up? wonderful. laughter _ growing up? wonderful. laughter. _ laughter. and the secret to a long and happy life? that temple, apparently. t life? that temple, apparently. i like my food, put it that way. i like my food, put it that way. i like a — like my food, put it that way. i like a brandy at night. i like my food, put it that way. i like a brandy at night.- like a brandy at night. i think i could get _ like a brandy at night. i think i could get on — like a brandy at night. i think i could get on board _ like a brandy at night. i think i could get on board with - like a brandy at night. i think i could get on board with that, l like a brandy at night. i think i - could get on board with that, too. there! catch a falling star and put it in your pocket # save it for a rainy day. let's take a look now at some remarkable pictures from iceland. these images show the latest eruption from one of the island's many volcanos — this time around 20 miles south west of the capital reykjavik. it follows days of small earthquakes in the area. you're watching bbc news.

thank you for your company, goodbye. hello. for many, last night was much more comfortable for sleeping, as humidity levels drop, and for all of us in the next two days humidity levels continue to drop, so it will be more comfortable for getting around. some rain pushed into the north sea this morning, now amateur of sunshine and showers, a lot of showers in a north—westerly breeze into western areas, we could see some over central areas, a lower chance in the south—east. temperatures 13—25 , down today compared with yesterday, at the commonwealth games it should stay dry, an outside chance of a shower, top temperature at 20 celsius with light winds. this evening, daytime

showers die out, a little dry weather, clear skies, a week where the front across the north west pushing southwards and eastwards introducing showers. a fresher night than of late, in some sheltered glens temperatures could fall as low as five celsius, you will notice that. generally looking at overnight lows between eight and 14. tomorrow, a cooler start, a lot of to start, some showers coming in across northern ireland, scotland, northern england, northern wales and the north midlands, but self likely to be sunny and dry. temperatures similar to today, a range of 12 in the far north, 24 as we push down towards the south. saturday, and when a front crossing us introducing rain across scotland, cloud more than friday, they can offer the odd spot of drizzle, the wind picking up across northern and western isles, an onshore breeze across the far

south—east of england. it will make the coast feel cooler. temperatures 14-25 c. the the coast feel cooler. temperatures 14—25 c. the weekend, high—pressure dominates, particularly in the south. weatherfronts dominates, particularly in the south. weather fronts around the top of it at times, introducing rain, also stronger wind as well. into the course of sunday and even into next week, the north is prone to more than a way of cloud, also some splashes of rain, further south drier, you will notice the temperature at starting to rise.

this is bbc news. the headlines at 11. the family of british 12—year—old archie battersbee seek legal permission to move their son to a hospice, after admitting theirfight to keep him on life support has come to an end absolutely devastated, frustrated, angry, let down. so many emotions, really. household energy bills will change every three months under new plans to avoid price shocks, as the regulator says customers face a very challenging winter ahead. in the next hour the bank of england is expected to raise interest rates again, for the sixth time in a row. china kicks off a live fire military drill around taiwan after a divisive visit by a top american politician angered beijing.

it was gold for scotland's eilish mccolgan at the commonwealth games in the 10,000 metres last night, and for england's katarina johnson thompson in the heptathlon. the family of archie battersbee have made an application to the high court to move the 12—year—old to a hospice. last night, the european court of human rights refused to intervene, ending the family's last hope of using the law to prolong his treatment. archie has been in a coma since april. we can speak now to our health reporter katharine da costa, who joins us from royal london hospital in east london.

what are the family trying to achieve here?— what are the family trying to achieve here? having lost their leral achieve here? having lost their legal battle. — achieve here? having lost their legal battle, the _ achieve here? having lost their legal battle, the family - achieve here? having lost their legal battle, the family have i achieve here? having lost their- legal battle, the family have spoken of their heartache and utter devastation. they were told that their son's life support would be withdrawn by 11 o'clock this morning unless they submitted an application to the high court requesting that he be moved to a hospice, that had to be moved to a hospice, that had to be in by nine o'clock this morning. they made that deadline, and his mother, hollie dance has said that she wants him to be moved to a hospice so they can be with him in private. lawyers for the health trust have said that they would oppose any move to a hospice because they believe his condition is unstable and that transferring and even a short distance could be a

significant risk. the trust has said that they will not make any changes to archie's treatment until all court proceedings have been finalised. in a statement, archie's mum has said if they refuse to take him to a hospice and give him palliative treatment it would simply be inhumane. their 12—year—old son is on a ventilator, he is receiving a number of drug treatments to keep his organs still functioning. he has beenin his organs still functioning. he has been in a coma for nearly four months since suffering a catastrophic brain injury in his home in essex in early april, and doctors caring for him have said that they believe he is brain dead, that they believe he is brain dead, that he has made no response, that he is unlikely to make any recovery, and that they think it is in his best interest for treatment to end. his family have fought tirelessly for the life support to continue, they have said that they have been

contacted by hospitals injapan and italy offering to continue his care, but some experts say that given he is into fragile state to move even a short distance to a hospice, it is unlikely that he would survive being moved abroad.— unlikely that he would survive being moved abroad. the price cap on household energy bills in england, scotland and wales is to change every three months, rather than six. the industry regulator, ofgem, said the aim was to provide some stability in the energy market. bills soared in april, and are expected to rise again in october, when the cap goes up. the chief executive of ofgem, jonathan brearley, said they wanted to support customers. i talk to customers every week and i know that everyone is worried about the way our energy market is changing and energy prices are changing. that is driven by global events, it's ultimately driven by more demand from asia but most importantly, russia, for whatever reason, withholding gas from that international market. this market isn't only facing rising prices, it is very, very volatile.

what we've got to do as a regulator is two things. first, yes we need to make sure companies can get back the cost of the energy that they need to buy in that international market. equally, we need to make sure we're not going back to the bad old days where they are making very big profits on top of that. now, the changes we're making today to make sure that the change in price regulation can keep up with the change in the market. it does mean as costs go up, yes the price cap will change more frequently, but also costs come down those prices will come down more quickly as well. what we are doing is trying to make sure that customer interests are protected in what ultimately is a very challenging market for everyone. justina miltienyte is head of policy at uswitch — she told us what she thinks about the the price cap changing every three months. ofgem is right that the market is volatile and those costs have to

ultimately be passed through, as supplies are incurring them. what that means for customers is that there is more uncertainty, the bills will change every three months rather than every six months, and the first change that is not expected. we have got used to the october and april one, but we will get one on the 1st ofjanuary, just after the holidays and at the most expensive time of the year. as ofgem will be reviewing it every three months, if the costs go down, that will be reflected in the price cap sooner. we don't see that happening in the next six to nine months, at the moment itjust means there will be more increases. ofgem has said this measure will help to stabilise the market, it will help to prevent supplies failing, nobody wants to see supplies feeling, that is a lot of upheaval for suppliers and customers who have been with the

suppliers, and ultimately more costs. let's not hide from the fact, this is not good news for customers, that means more rises for customers at the most expensive time of the year when consumption is highest. the bank of england is widely expected to make history today by increasing interest rates by the highest amount since 1995. the bank is expected to make an announcement at noon to tackle rising inflation. inflation is currently at 9.4%. the current target is 2%. the current interest rate is at 1.25%, and the bank of england is expected to increase the interest rate by 0.5%. well, both the conservative leadership candidates liz truss and rishi sunak gave their views on tackling inflation. the rivals were speaking last night at a hustings in cardiff. the former chancellor had this to say. i think the response to dealing with inflation right now is for us to be careful. i don't think launching on a spree of unfunded promises costing tens and tens of billions of pounds is a sensible thing to do. i think it risks making the situation worse, risking it lasting far longer.

but also, itjust means, as i said, all we're doing when we do that is putting lots of borrowing on the country's credit card, we're asking our kids and our grandkids to pick up the tab. and the current foreign secretary liz truss gave her view. the best way of dealing with inflation as monetary policy, and what i've said is i want to change the bank of england's mandate to make sure in the future it matches some of the most effective central banks in the world controlling inflation. the last time the mandate was looked at was in 1997 under gordon brown. things are very different now. andy verity is with me... just explained the thinking behind why increasing interest rate helps

control inflation.— control inflation. what causes inflation. _ control inflation. what causes inflation, meaning _ control inflation. what causes inflation, meaning sustained l control inflation. what causes - inflation, meaning sustained rises inflation, meaning sustained rises in prices is a mismatch between supply and demand. demand is where people want to buy things, if there is lots of people wanting to buy things, and not as many people selling them, there are not many gifts for sale in our supply, then we have a mismatch. the people selling will tend to bump up their prices to take advantage of all the demands coming at them for their goods. that is why prices rise when you have high demand and weak supply. you have high demand and weak supply, and that is exactly what we have had in recent times. as the global economy reopens after the pandemic, a lot of the supply capacity, for example the capacity to refine oil, the capacity for airport flights to foreign countries, all of that capacity has been reduced when everything was shut down in the pandemic. therefore, it is taking a long time before it cranks back up and can meet the demand, and that's why soaring prices all over. this is, of course, aggravated by the war in

ukraine, where global commodities like gas, wheat, sunflower oil are all in short supply. high demand and short supply are the two twin reasons why we have the highest inflation in 40 years. the theory is that if you raise interest rates, you dampen demand. if you raise the cost of borrowing, it will discourage people from borrowing, it will incentivise them to invest, that will mean there is less demand. conversely, if you cut interest rates, you support the economy and you encourage it to grow. it is a bit like a car, you put the brakes on when you raise interest rates, and you could the accelerator down when you cut them. haifa and you could the accelerator down when you cut them.— and you could the accelerator down when you cut them. how does their interest rate _ when you cut them. how does their interest rate going _ when you cut them. how does their interest rate going up _ when you cut them. how does their interest rate going up play - when you cut them. how does their interest rate going up play into - interest rate going up play into this? ., ., ., , ., ,

this? part of the theory of interest rates rising — this? part of the theory of interest rates rising is _ this? part of the theory of interest rates rising is that _ this? part of the theory of interest rates rising is that households - this? part of the theory of interest | rates rising is that households have less to spend on other things. already we have less money to spend on other things because of high energy bills. high energy bills have already acted in a similar way to what raising interest rates might do. therefore, there is an argument that you don't want to raise them too fast, because then you have a double whammy of higher energy bills and higher interest rates. already we are seeing consumer activity slowing down, we are seeing predictions of the economy shrinking or possibly a recession in the coming months, so possibly the bank of england will have to revert that possibility. however, other central banks are being quite bold, the us federal reserve have bumped up interest rates, and you've also had rises and other central banks around the world. there is a question as to whether raising interest rates domestic we can do anything to affect commodity prices globally. if you think this inflation is caused

globally, it won't do very much. nevertheless, there is an argument for... we see very weak economic growth actually, so pressing the accelerator has not worked. we have not had the growth that we have had in previous decades. it also causes other destructions in the economy. if you have cheap credit, it pumps up if you have cheap credit, it pumps up as it prices, and that is why you have the unaffordability for young people of houses getting worse and worse. it also redistributes wealth upwards when you pump up asset prices, to those who do. site attempts to support this economy through superlow interest rates in recent years... brute through superlow interest rates in recent years---_ recent years... we will have the u date recent years... we will have the update the _ taiwan's defence ministry says china has fired multiple ballistic missiles during a set of military exercises in the air and sea encircling taiwan. beijing launched the drills in response to a visit

by nancy pelosi — the most senior us official to go to the self—governed island in 25 years. the exercises are taking place in some of the world's busiest waterways. taiwan sees itself as independent, but china views it as its own. china's foreign ministry said nancy pelosi's visit to taiwan was a violation of the one china principle and justified its military exercises by blaming the us for the rising tensions in the region. translation: china has repeatedly made clear our stern opposition - and stress that we are firmly opposed to taiwan independence separatist forces and foreign interference. we will allow no room for any form of taiwan independence forces. if the us continues down the wrong path, then all consequences shall be borne by the us and do not say that we have not told them in advance. the us first made a malicious provocation and china has been compelled to act in self—defence. so, whatever we have done in response as a countermeasure would be justified and firm and resolute. our china correspondent stephen

mcdonell has more from beijing. for the last couple of days, china has been amassing large formations of planes and ships all around taiwan. and now the shooting has started, so these are live fire drills, and in those zones marked out to the north, to the south, east and west of taiwan, the pla has warned commercial ships not to enter, commercial planes not to fly through that airspace. interestingly, i see that the us air force has sent a ship, a plane there, to go and observe these military drills. this is something the us has done in the past when there have been live fire drills. there's talk that the pla could considerfiring missiles over taiwan's territory. if that happened, it would be a massive escalation, the likes of which we've not seen. but even already, these are unprecedented scenes.

these zones, if they're all used up, they would involve mainland military exercises moving into taiwan's territorial waters. and, you know, you just have to wonder if this was all worth it in terms of a visit. i mean, if you're adding up the advantages and disadvantages of having the number three leader from the us travelling to taiwan, certainly a lot of tension, a lot of pressure on that island now. and more concerning, potentially, is that now the pla has done this this year, does that mean every year it's going to have a dress rehearsal for a blockade of taiwan? a dress rehearsal for an attack, an attempt to seize the island

does that amount could that the how does that amount could that the government says it is putting in compare with what you say is required?— compare with what you say is reuuired? , ., _ ., compare with what you say is reuuired? , ., ., ., required? this will not pay for more social care- — required? this will not pay for more social care- it _ required? this will not pay for more social care. it deals _ required? this will not pay for more social care. it deals with _ required? this will not pay for more social care. it deals with the - social care. it deals with the problem of people having to sell their homes to pay for care, and the differential costs between people who pay for it themselves and those who pay for it themselves and those who have it paid for by their local council. in the end, there is a shortage of funding that councils have to pay for the care that people in their communities need, and the government's money so far does not address that issue at all. find government's money so far does not address that issue at all.— address that issue at all. and what is that shortage, _ address that issue at all. and what is that shortage, how _ address that issue at all. and what is that shortage, how much? - address that issue at all. and what is that shortage, how much? we i is that shortage, how much? we estimate in _ is that shortage, how much? - estimate in a report about £7 billion a year, but that means that the shortfall that councils have immediately, it means bringing people into the care system who are currently excluded, who ten years ago would have got care don't get it

any more. the workforce is really underpaid, you get minimum wage when you could go and get a much easier job than the challenges posed by being a care assistant for the same money. people coming into care work very often leave within the first year. so many of them are on zero—hour contracts, we need a proper plan for the long term to properly pay and train and look after our social care workforce. primarily, then, you're talking about expanding the number of people who can access social care, and improving the terms for those who are working in it?— are working in it? ants, of course, deafinu are working in it? ants, of course, dealing with _ are working in it? ants, of course, dealing with the _ are working in it? ants, of course, dealing with the immediate - are working in it? ants, of course, i dealing with the immediate problems of the lack of funding for care and the gap in funding requirements was there before the current spike in inflation. we know that councils are increasingly spending more and more

on social care, which means they are having to cut money from libraries, from parks, from bus services, street sweeping, things that really matter to our local communities. people recognise that money has to be given to social care as a priority, but currently the gap in funding means that all these services are receiving cuts, and that needs to be addressed as well. just to get an understanding of what the financial constraints have meant, you have said that that means other services have been cut, but also you said that, previously, there are people who can't get care now who would have been eligible ten years ago. is the criteria still tightening? tt years ago. is the criteria still tightening?— years ago. is the criteria still tirahtenin ? .,, , tightening? it has been tightening all the time since _ tightening? it has been tightening all the time since 2010, _ tightening? it has been tightening all the time since 2010, and i all the time since 2010, and gradually it is gotten to the point where you have to have an immediate need for care, and people are missing out, who, if they were given care now, would find that their circumstances didn't worsen, didn't deteriorate to the point where they

end up in hospital. that's the challenge. by not putting money into people with less acute care needs, there are still things that they may need help with, grab railfor a bath, banisters for the stairs, someone coming to help them with their meals. people not getting that care often means that those people end up in a worse situation and end “p end up in a worse situation and end up needing hospital treatment. of course, there are many people in hospital filling course, there are many people in hospitalfilling up course, there are many people in hospital filling up beds course, there are many people in hospitalfilling up beds that course, there are many people in hospital filling up beds that could be used to deal with those who want elective surgery, people in hospital beds who could come home and live in their own homes as long as the care was available, but the money isn't there for them either. haifa was available, but the money isn't there for them either.— was available, but the money isn't there for them either. how would you su: est there for them either. how would you suggest that — there for them either. how would you suggest that £7 _ there for them either. how would you suggest that £7 billion _ there for them either. how would you suggest that £7 billion is _ there for them either. how would you suggest that £7 billion is found? i suggest that £7 billion is found? the need to be a discrete funding, we can have an argument over the precise measures. we argued as a committee there should be a social care presets which would go directly

to councils to help pay for the services that they have to commission.— services that they have to commission. ., ., , ., , ., commission. how does that differ to what the government _ commission. how does that differ to what the government is _ commission. how does that differ to what the government is doing? i commission. how does that differ to what the government is doing? 0ur| what the government is doing? our social care what the government is doing? qt" social care presets has a what the government is doing? t>t" social care presets has a number what the government is doing? qt" social care presets has a number of different features. first of all, we have said that younger people shouldn't pay, because they have been really squeezed by the austerity of the last few years. we have said that we should raise the threshold so that people on lower incomes wouldn't pay, but would also include unearned income, notjust people who are earning their salaries by working, including higher private pensions, and people over 65, bishop is well. we included an extra amount, where people die and have an estate, a percentage of the estate should go towards the care system, rather than some people dying and having to pay the total cost of their house because they end “p cost of their house because they end up in care, while other peoples, who

may tragically die of a heart attack, pay nothing. why does everyone who dies within a state not paired towards the social care system, we think that would be fairer, and we think muscles the public would think that is fairer too. ., . . ~' public would think that is fairer too. ., ., ., ,, ., ., too. you are talking about tax increases _ too. you are talking about tax increases at _ too. you are talking about tax increases at a _ too. you are talking about tax increases at a time _ too. you are talking about tax increases at a time where i too. you are talking about tax i increases at a time where there is a cost of living crisis, and the nature of the conversation around tax, currently, on both sides of the political divide, is about tax cuts rather than increases?— political divide, is about tax cuts rather than increases? yes, but in the end, rather than increases? yes, but in the end. this _ rather than increases? yes, but in the end, this problem _ rather than increases? yes, but in the end, this problem of - rather than increases? yes, but in the end, this problem of social- rather than increases? yes, but in l the end, this problem of social care requirements is not going to go away. we have a situation where we have a population which is growing older, more people are living longer, that is great, as long as more people can live longer with a proper quality of life. we owe it to people in the situation to give them the care they need. people who are older, people with disabilities. as a society, i think we have to

recognise that responsibility, and that issue is going to be with us, it is going to grow more profound, and if we don't address it, then the pressure on the nhs, the pressures on families who are trying to support their loved ones without the proper resources are just going to grow and grow. as a civilised society, we have to address it, we have to make sure that finances available. detectives searching for a student nurse who vanished nearly a month ago in south london are continuing to question three men who have been arrested on suspicion of murder. 24—year—old owami davies, left herfamily home in grays, essex, and was last seen in west croydon on 7thjuly. police say she was captured on cctv in the company of a man on the night she was last seen alive, and are keen to speak to a van driver seen passing owami on the street. a man has appeared in court charged with the murder of a woman who went missing a decade ago. 32—year—old claire holland, from bristol, has not been seen sincejune 2012, after leaving a pub

in the city centre. darren osment was originally arrested in 2019. he was remanded in custody today, to appear at bristol crown court tomorrow. across the world, birds are being photographed tangled up in our rubbish, including discarded ppe. images are being submitted to an online project called birds and debris, and nearly a quarter of the photographs show them nesting or entangled in disposable facemasks. our science correspondent victoria gill has more. a grim but familiar sight in many urban waterways. how many different types of plastic are just floating here? yeah, i can see easily one, two, three, four, five, six, seven... seven or eight different kinds of plasticjust here. and it is the wildlife that inhabits these waterways that is living with and living in our rubbish. these images, submitted by members of the public and collected by scientists, show the global extent of the problem.

scientists ask people to upload photographs and reports of birds tangled or nesting in rubbish. we have got about 400 reports covering every continent, except antarctica. so literally everywhere. and then covid happened and all of a sudden we have all of these submissions of facemasks, surgical gloves. is a mask or ppe item, is that more of an environmental problem than a plastic bag or plastic bottle? yeah, so a mask is not just one thing. you think about it, you have the ear loops which are made of elastic, you have got sheeting on them, you have got the rigid piece of flexible plastic that fits over your nose. so you have a whole bunch of ways that wildlife can seemingly interact with it. in some cases, like this one in stratford—upon—avon, nature lovers have been able to help. 0h, perfect, well done.

cheering but this project shows the surge in pandemic—related waste that is ending up in our environment. scientists say the systems we have for managing that waste cannot cope and that wildlife and wild spaces are bearing the consequences. twins elma and thelma from stockport turned 103 today. they've lived through second world war, the coronation and say their secret is a sip of brandy before bed each night. they could be the oldest twins in the uk. and of course such a big milestone deserves a party, so we sent our reporter davinia ramos along. happy birthday to you. cheering. enjoy life, don't let anything get you down, but don't worry, that's it. wise words from elma and thelma on day at birthday, they were born on the 3rd of august 1919 and grew

up together in stockport, and although times were tough, they had fun, played together and bickered like most siblings. what are your best memories? we did play together, didn't we? we did. we did have our little troubles and little fights. our mother used to bang our heads together. elma and thelma have lived through the second world war, seen 20 prime ministers come and go and say it is surreal looking back of their lives. the bombs used to come over at night, we used to have to go to the river and we used to have to go into the caves, go in there, out of the bombs, we could hear them. and in the cave the water used to run down the walls, it was like that, we had to sit there all night, then go to work the next morning.

i remember standing at the back bedroom window, looking out, the planes were going over. today is a far cry away from that, they are able to celebrate with their loved ones and meet the youngest member of the family, their great—great—grandson who is just seven weeks old. so pleased to see them talking and go through their _ stories, so interesting. somebody has lived that long and been through so much. it is so interesting. we live fairly close to each other, didn't we? yeah. what were they like growing up? wonderful. laughter and the secret to a long and happy life? the odd tipple, apparently. i like my food, put it that way. i like a brandy at night. i think i could get

on board with that, too. catch a falling star and put it in your pocket # save it for a rainy day. now it's time for a look at the weather with carol. hello again. over the next few days and nights, the humidity level is going to drop, so it will be more comfortable for sleeping in and for getting around. we have seen some heavy rain push into the north sea through the course of this morning, and for most of us now, we are into a day of sunshine and showers. a large percentage of the showers will be across the north and the west, and here we have got temperatures, 14 to 17 celsius. come further south and the east, and we're looking at 23 to 25 celsius. through this evening and overnight, there will be a lot of dry weather initially, but you can see a new weather front coming in across the north west. it is slipping south—eastwards and taking some of its showers with it. temperatures falling away between eight and 14 celsius, but in some sheltered glens, the temperatures will fall away

as low as five celsius. so, a cooler start to the day tomorrow. plenty of dry weather, a fair bit of sunshine. once again, there will be a peppering of showers, especially in the northern two thirds of the country. in the south, it is going to be dry and sunny with highs up to 24 celsius. hello, this is bbc news. the headlines... the family of british 12 year old archie battersbee seek legal permission to move their son to a hospice, after admitting theirfight to keep him on life support has come to an end. absolutely devastated, frustrated, angry, let down. so many emotions, really. household energy bills will change every three months under new plans to avoid price shocks as the regulator says customers face a very challenging winter ahead.

in the next hour, the bank of england is expected to raise interest rates again for the sixth time in a row. china kicks off a live fire military drill around taiwan after a divisive visit by a top american politician angered beijing. it was gold for scotland's aylish mccolgan at the commonwealth games it, in the 10 thousand metres last night, and for england's katarina johnson thompson in the hepathlon. johnson thompson in the heptathlon. the former hear say singer turned actress kym marsh and actor will mellor have been announced as the first two contestants competing on strictly come dancing's 20th season. sport, and for a full round up from the commonwealth games in birmingham here's chethan. good morning.

15 gold medals on offer today including road cycling and diving. on day seven of the commonwealth games in birmingham. there are 15 gold medals on offer today, including in road cycling and diving, and it's another night of athletics. the women's 200m heats are under way. there is no english representation in this event after 100m medalist darryl neita withdrew. wales's hannah brier and guernsey's abi galpin have both booked their place into the semi—finals after a successful start to the day in the heat. in the last few moments we have had a silver medalfor anna henderson in the women's time trial. it was australia's grace brown who was the winner of this one. new zealand georgia williams taking bronze. that is what you are seeing for the moment. a win for australia, but you

can see anna henderson on your left taking that silver medal. the women's hammer qualifying is underway at the alexander stadium. welsh champion amber simpson and england's anna purchase here are both involved, with the top 12 advancing to saturday's final. canada's camryn rogers, world silver medallist last month, is among the competition, along with her compatriot jillian weir, who was fifth at the worlds. that was a distance of 68 metres. bumper medals first across the weekend. in comparison to that, only 15 gold is all up for grabs over the course of the day. right, let's take you to some live sport — england are playing wales in the hockey. in poola, england are top of their group and will want to finish off the pool

stages in style knowing they will face new zealand in the semi—finals. it's currently 1—0 at the university of birmingham hockey centre. you can watch it live on iplayer. to the netball, and the sunshine girls ofjamaica have beaten top seeds and three—time champions australia. five goals down after the third quarter but a huge final 15 minutes gave jamaica the victory, they won the final quarter 17—9. the win means they have topped pool a. if england beat new zealand later on tonight they will face jamaica in the semi—final on saturday. these are live pictures from the nec arena in birmingham, and you can see the score is currently. wales are taking on barbados at the

moment. they will be hopeful at the nec arena. those of the pictures you are seeing at the moment. 31—22 to wales in the second quarter. last night was an exciting night for the athletics at the alexander stadium, and one the mcolgan family won't forget in a hurry. scotland's aylish mccolgan won her first major title. she took gold after an intense battle with kenya's irine cheptai in the 10,000m. and you may recognise the name too — her mum liz mccolgan won the same title in 1986 and 1990. i grew igrew up i grew up with my mum allowing me to make my own decisions. she never pushed me into athletics, and i never saw her medals. i was never forced to watch races or anything like that. i made my own decisions to come into the sport and i think

thatis to come into the sport and i think that is why i love it so much. i made my own decisions about it. i think it is not quite sunk in that i havejust think it is not quite sunk in that i have just replicated what she's done. it's not quite sunk in yet. i'm sure once i've had a couple more hours sleep it will sink in. me i'm sure once i've had a couple more hours sleep it will sink in.— hours sleep it will sink in. we will kee ou hours sleep it will sink in. we will keep you updated _ hours sleep it will sink in. we will keep you updated with _ hours sleep it will sink in. we will keep you updated with all the i hours sleep it will sink in. we will. keep you updated with all the track and field that is to come across the day here. that's all the sport for now. one of the most striking images of the commonwealth games so far was a horror crash on sunday at the velodrome, which saw england's matt walls fly over the barriers and into the crowd with his bike. he and two other cyclists were taken to hospital, but there was also a serious injury to a member of the public. one family with two young children say they fear they could have been killed and want an urgent safety review. laura scott has spoken with those involved. in the frenetic world of track cycling, high—speed crashes aren't unusual. commentator: big crash. it's brought half the field down. but this one on sunday was, with a momentjust out of shot,

making it potentially devastating. as this video from a shocked spectator shows, england's matt walls was catapulted out of the melee and into the stands. fans were soon face—to—face with flying men and bikes, including hugh colvin and his two young children. you can see the trajectory of the bike came through, grazed my daughter's shoulder, and there's one of the photos you can see we're obviously underneath the wheel. i was facing the other way because i turned my head, but it must have been within centimetres, millimetres of our heads, and obviously close enough to graze my daughter. for his wife, laura, who wasn't there, it's hit home how much worse it could have been. i think what's been quite hard for us to get our head around is being able to see from the photographs that were taken of the incident exactly how close this came to being a complete catastrophe, and how close our two younger children came to being seriously injured or killed.

with walls needing 40 minutes of treatment in the stands, the session was abandoned, and the venue cleared. he and two other cyclists were taken to hospital, including the isle of man's matt bostock, who said he'd never seen anything like what happened to walls. going over the top of the barriers at probably 30 mile an hour or something — terrifying. and he was two beds down in the hospital and i was still strapped in when he when he walked around the corner. and i could not believe that he was up on his feet. contrary to early statements from the velodrome and games organisers saying no members of the public required hospital treatment, the colvins' friend, seen here in red, will require surgery for an arm injury that medics likened to a machete wound. and there have been psychological impacts, too. the children were so worried about the cyclist. my daughter, in particular, was terribly, terribly worried about what had happened to matt walls. he was very kind and facetimed

her on monday evening and that was a really big step forward for her. what has staggered the most is the realisation that while incidents like these are incredibly rare, cyclists have ended up in the crowd before. if we had known, for a moment, that there was a risk that a bike with an adult male going at that speed could come into contact with my seven—year—old daughter, my family would never have been there. it hasn't put me off sports, or watching track cycling, but i wouldn't want to be where we were. i wouldn't go back to where we were again without there being some change in how it was setup. they want what happened on sunday to trigger a safety review. sir chris hoy has been more bullish, calling it a disgrace there aren't screens to protect both spectators and cyclists. it's going down as a freak accident but it has happened before. so i don't know how many freak accidents become a normal accident. and ijust think... i dread to think if it had been worse.

i just think it should be a proactive decision to try and make it safer before... yeah, before it's a terrible accident. a birmingham 2022 spokesperson said they'd been in regular contact with the colvin family, and apologised for any upset the initial wording of their statement had caused. they said a full and detailed accident investigation is under way. meanwhile, the lee valley regional park authority said the velodrome complies with international regulations, and that an accident of this kind has never taken place there before. it added... with leading lights from the sport, and those who feel lucky to have averted disaster uniting in calls for change, there is a sense of if not now, when? laura scott, bbc news. much of europe is in the grip of another heatwave,

and this time, there are worries over a potential drought. france has seen record low rainfall, and parts of england are now facing a hosepipe ban. the european commission has warned member states to re—use treated urban wastewater to irrigate farmland. the bbc�*s tim allman reports. in the city of toulouse, you can almost walk on water. the garonne is at such a low level now, fishermen are able to wade out, the river barely covering their ankles. weeks of hot weather, and crucially no rain, has had a dramatic impact. translation: we are seeing record levels of drought. i that is to say, we've never seen the ground as dry as it is at the moment. over the coming days, there's not a lot of rain expected, so there's no end in sight to this drought. so, how bad has it got? well, according to meteorologists, in the month ofjuly...

the country's environment minister said only 12% of the rainfall required fell injuly. in this part of northern france, not far from dunkirk, water shortages aren't usually a problem. but even here, the yser river is below its usual level. the local authorities have placed the area under a drought crisis alert for the first time, pointing the finger of blame in one direction. translation: the effects of drought are a direct i consequence of global warming, which is only intensifying. we hear about it, we see the physical effects on the ground. it's undoubtedly one of the effects of global warming, which is accelerating and intensifying. lack of water has all sorts of consequences. this is denis bollengier, a local farmer whose potato crop

is in serious danger. translation: if it doesn't rain - between now and the 15th of august, meaning in 10—12 days, we can easily lose up to 50% of our crop. it's notjust france facing a potential drought. this was the river ver in southern england, which has now run completely dry. water companies have already imposed hosepipe bans on customers in several counties and london could be next. unless rain arrives soon, the impact of the potential drought will only become more severe. tim allman, bbc news. the headlines on bbc news... the family of british 12—year—old archie battersbee seek legal permission to move their son to a hospice, after admitting theirfight to keep him on life support has come to an end

household energy bills will change every three months under new plans to avoid price shocks as the regulator says customers face a very challenging winter ahead. the former hear say singer turned actress kym marsh and actor will mellor have been announced as the first two contestants competing on strictly come dancing's 20th season. australia is counting the cost of catastrophic floods this year, which may be the most expensive natural disaster in the country's history. the multi—billion—dollar rebuilding effort could take years. and for victims without property insurance, the future is uncertain. the insurance council of australia has told the bbc that some flood—prone areas might have to be abandoned because the risks are too high. phil mercer reports from sydney. so this whole back area and the bottom level was submerged in water and basically everything that was downstairs was destroyed. murky brown floodwaters have invaded this woman's property three times this year. her home isn't insured

because the premiums are too expensive and cover is hard to find. i don't have flood insurance, and you would be very hard—pressed to find any company that will cover you in a flood zone, even in a one in 100 yearflood zone because you're very high—risk. it is very unsettling and it is hard to start over because you are like, is it worth fixing, is it worth replacing things? if i sell my house, can i sell my house? there is a lot of uncertainty. it is estimated that one in ten australian homes are now vulnerable to flooding. some might have to be abandoned. there is a case already that there are areas where insurance is simply unaffordable because of the flood factor. we could take a more extreme view and that is start drawing lines around areas that we know are going to be flood—prone, and there is simply no engineering solution. and at that point step in and offer those people the opportunity to sell their homes to government

and move to other areas. thousands of people were forced to leave their homes in record—breaking floods that swamped parts of eastern australia. here in windsor, the bridge, which is a main thoroughfare, was completely submerged. the waters have obviously receded but what they have left behind is financial pain that many residents will be feeling for years. this man is working to revive his famous floating restaurant on the hawkesbury river near sydney. financially it has been an absolute disaster. as it stands, due to the floods, i haven't operated since february 2021. probably over $1 million i've lost, three majorfloods, two lots of covid shutdowns and bushfires, and with very little assistance at all. australia is a land well used to nature's extremes, but for many, back—to—back disasters are testing their resilience

like never before. it's been two years since a massive explosion in beirut killed more than 200 people. an investigation into what happened was paused in december after political pressure, and the un is now being asked to intervene. as our correspondent carine torbey explains, it leaves a city still in limbo, and victims still searching for answers. graduation marks the start of a new journey for these students. but one seat is empty. this gown was supposed to be worn by a student killed in the beirut explosion. he was at home. his classmates remember him as a great friend and an aspiring rapper. in our case, it is not only the feeling of grief that kills you from the inside, there is another feeling of injustice that shatters you in every way.

this injustice is because of the way our loved ones were killed, and there was no war, and it wasn't a terrorist attack. it has been two years since a warehouse filled with ammonium nitrate exploded in the port of beirut. the blast swept across the city, killing over 200 and injuring thousands. it devastated entire neighbourhoods and displaced tens of thousands. friends and family of the victims have hung pictures of their loved ones near the port area. these pictures stand as a testimony to the scale of the disaster, but they are also a reminder that for the families of the victims there can only be solace when justice is served.

two years on, the investigation into the blast has completely stopped. activists and relatives of the victims say the endless manoeuvring is drowning out the chance for justice. we have seen all the strategies and all the tools that the political forces have used in order to stop accountability in the blast investigation, but also in other crimes we are seeing the same strategies being used. what we have today is a society that is more aware of that impunity regime, that is more aware also of the need to break with this regime. meanwhile, shock waves from the blast are still being felt. these wheat silos at the port are slowly crumbling. some of the wheat inside couldn't be emptied after the explosion. it has fermented and has been igniting under the soaring sun.

two years on, they cannot fully stand, nor have they fallen. they linger as if awaiting closure. the first two contestants have been announced for this year's strictly come dancing. actor will mellor has appeared in shows like hollyoaks, coronation street and two pints of lager and a packet of crisps. on bbc breaklfast this morning, mellor said he was "chuffed" to be taking part. excited is one word for it. terrified is another. the closer it gets... they are good emotions to have for it. _ well, yeah, that's one of the reasons why i am doing it, is because it is stepping out of my comfort zone, it's scary. and, yes, when i said yes to doing it, it was a long way away, and the closer it gets, it really does start to settle in, and it's getting a bit frightening now. do you dance ? i dance, yeah. do you dance well? well, it depends what you call well. i dance in the kitchen

when there is music on, which my kids hate, or at parties i have a dance like anybody does, but nothing at all like what i'm doing here. i've never done anything like this. i'm way out of my comfort zone, no doubt, with this. your children are going to be so excited. i excited is one word for it, yeah. i told them... well, obviously, i had to tell my kids because i had to ask them if it was all right because you know what it's like when you've got kids. my son is 18, my daughter is 14 now, and, you know, if they're going to be mortified, i'm not going to do anything that they are going to go, please, dad, don't do it. so, yeah, they're ok. i'm just going to do the best i can. it's, like i said, it's something i've never done before, anything like this. also taking to the dance floor will be the tv presenter, actor and singer kym marsh. she's currently on holiday with her parents and says she is keen to learn some new steps. i'm just very keen to learn, you know, watching it. i've done some dancing before when i was a little girl and also in the band, but this

is an opportunity to learn how to dance. my husband in particular is excited. hejust dance. my husband in particular is excited. he just wants to learn how to dance properly so we can do it when we go to festivals and things. so, he is very exciting —— he is very excited. any of them would be brilliant. why would you spend $70 million on making a film, and then decide not to release it? that's what the movie world is wondering after warner brothers scrapped their new batgirl release filmed in glasgow in scotland. you'd think the movie would have to be pretty bad, although there could be other factors as involved. reporting scotland's david farrell has the story. kelvingrove, george square and glasgow's merchant city were just some of the locations used for what should have been the latest dc comics movie, batgirl. the film, starring leslie grace and michael keaton, was due to be released in cinemas and on the streaming platform hbo

max later this year, until overnight warner brothers scrapped its release, leaving fans disappointed. i am very disappointed as a dc fan and a fan of the character, hoping to see this character on the screen with hbo. also on a personal level and as a latino, having a latina actress in leslie grace leading this film, it hurts on a personal level because there is a lack of representation for the latino community within hollywood. with a budget of more than $70 million, warner brothers said the decision not to release the film was due to a strategic shift under new leadership, ultimately meaning the company is investing in movies made for the cinema rather than streaming, a decision that has surprised the industry. i am quite shocked and i think it is quite gut—wrenching for the people who worked on it, in terms of crew in scotland, i think it is sad but things go on and you continue to find work and there is still lots of production going on, so that's a good thing.

batgirl was a big deal for glasgow,and it brought almost 2000 jobs to the local film industry, and streets like this were transformed into hollywood film sets. but was it worth it for local businesses? it was a bit of an upheaval from a business point of view, but it was still fun, it was fun to have it all in the street and have all the goings—on. i feel as if it is a slap. in the face to us, all the tourism that the council was saying the movie would bring in, - that is not going to happen. so they spent £150,000 - to the film crew, that is lost. i hope they have got something in the small print that they geti that back. glasgow city council offered warner brothers a £150,000 support grant to film in the city, and today they confirmed that money has not yet been paid to the film studio and discussions are ongoing. so, whilst we won't see batgirl 2 swooping into glasgow anytime soon, it won't be the last bit

of hollywood to come to town. a 62—year—old french sailor survived for sixteen hours in an air bubble inside his sailing boat after it capsized in the atlantic ocean, before being rescued by spanish coastguard divers. emergency services worked against the clock in rough seas to rescue him. the 12—metre vessel had set sail from the portuguese capital lisbon and sent out a distress signal on monday evening. but the rescue team had to wait until the next morning because of the rough sea. the man survived because he was wearing a special suit used in sailing competitions. let's take a look now at some remarkable pictures from iceland. these images show the latest eruption from one of the island's many volcanos — this time around 20 miles south west of the capital reykjavik. it follows days of small earthquakes in the area. now, it's time for a look at the weather with carol. hello again. for many of us, last night was much

more comfortable for sleeping in, as humidity levels dropped, and for all of us in the next few days and nights, the humidity levels will continue to drop, so it will be more comfortable for getting around as well. we had some rain pushing into the north sea this morning, now we are looking at a mixture of sunshine and showers. a lot of showers coming in on a north—westerly breeze into western areas. we could see some across central areas, a lower chance in the south—east. temperatures 13 to 25 celsius, down today compared with yesterday, at the commonwealth games it should stay dry, an outside chance of a shower, top temperature at 20 celsius with light winds. this evening, daytime showers die out, a lot of dry weather, clear skies, a weak weather front across the north west pushing southwards and eastwards introducing showers. a fresher night than of late, in some sheltered glens temperatures

could fall as low as five celsius, you will notice that. generally looking at overnight lows between eight and 14. tomorrow, a cooler start, a lot of sunshine to start, some showers coming in across northern ireland, scotland, northern england, northern wales and the north midlands, but south of that likely to be sunny and dry. temperatures similar to today, a range of 12 in the far north, 24 as we push down towards the south. saturday, and with a front crossing us introducing rain across scotland, cloud more than friday, they can offer the odd spot of drizzle, the wind picking up across northern and western isles, an onshore breeze across the far south—east of england. it will make the coast feel cooler. temperatures 14 to 25 celsius. the weekend, high—pressure dominates, particularly in the south. weather fronts around the top of it at times, introducing rain, also stronger wind as well.

into the course of sunday and even into next week, the north is prone to more in the way of cloud, also some splashes of rain, further south drier, you will notice the temperatures starting to rise.

this is bbc news. the headlines: the much anticipated announcement about another interest rate hike in the uk is expected momentarily, with projections that the base rate could reach its highest level since 2008. the family of british 12—year—old archie battersbee seek legal permission to move their son to a hospice, after losing their fight to keep him on life support. household energy bills will change every three months under new plans as the regulator says customers face a very challenging winter ahead. china kicks off a live fire military drill around taiwan after a divisive visit by a top american politician angered beijing. it was gold for scotland's eilish mccolgan at the commonwealth games it, in the 10,000 metres last night, and for england's katarina johnson—thompson

in the heptathlon. the former hear�*say singer turned actress kym marsh and actor will mellor have been announced as the first two contestants competing on strictly come dancing's 20th season. we have breaking news about interest rates, the news hasjust come through and they have gone up to 1.75%. it is the biggest change in interest rates, and it comes amid warnings that inflation could go up to 11% by the end of this year.

potentially, even 15%, some are predicting next year. that is the driving force behind the decision by the bank of england. burbank�*s governor, andrew bailey, had been hinting that that that was in the pipeline. he said are not .5% increase —— like a increase was... interest rates have been at record lows since 2008, but if you look back a bit further in history, 1.75% is still incredibly low in that context. nonetheless, it is a time of living costs rising dramatically, and there will be many affected by this in terms of their mortgage payments going up. on that front, just under a third of households in the uk do have a mortgage, and of

those three quarters are fixed—rate mortgages, so they will not be affected immediately, that it will mean that around 2 million people will see an impact of that 0.5% rate rise. the breaking news, rates have gone up by 1.2% to 1.75%. let me bring you —— have gone up by 0.5% to 1.75%. the bank of england are saying that inflation is going to keep climbing, they are talking about 11%, this comes through from our economics editor, who says that the bank of england is potentially talking about inflation at 13%. that is what they have been considering,

trying to reduce inflation by increasing the cost of borrowing in the hope that that will slow down spending, because the cost of living crisis is caused by lower production thanis crisis is caused by lower production than is actually required as we come out of the covid shutdown. of course, rising costs on the basic essentials of life have already been meaning that people are cutting back on any other bills that they can, most notably, of course, energy bills going up dramatically. also, the cost of fuel. bills are going up, the anticipation by the bank of england is that by putting up the cost of borrowing will get inflation under control. when we talk about the cost of borrowing heading up to 11% and beyond, that is within the

context of the bank of england's target rate of inflation of 2%. there is only mystery that big gap that they are trying to manage. separately there are also concerns that when people are hit more in the pocket it will mean further cutting back, which will have an impact on growth in the economy, which is already low. it is a very, get a picture, let's go to our economics editor. it was expected, 0.5%, but it is a big amount of the people will have to get their heads around. yes. amount of the people will have to get their heads around.— amount of the people will have to get their heads around. yes, it is a bi aer -- get their heads around. yes, it is a bigger -- a — get their heads around. yes, it is a bigger -- a big _ get their heads around. yes, it is a bigger -- a big amount. _ get their heads around. yes, it is a bigger -- a big amount. these i get their heads around. yes, it is a bigger -- a big amount. these are| bigger —— a big amount. these are already hitting people's mortgages if they are on variable rates, but many are on fixed rates, they will roll off over the next couple of years. the biggest surprises in the

forecast for the bank of england, they do these every four three months, and starting in the final quarter of this year, lasting five quarters. that is a year and three months, i don't recall them pre—emptively predicting a recession in this manner, and that is the longest in terms of duration, recession that we will see if that has come to pass, since the great financial crisis of 2008 and 2009. it is about as steep as we had in the early 1990s, before many of our viewers were conscious of what was going on in the economy. nevertheless, that is a very serious prediction from the bank of england, or something that, i think will change the game for households. within hearing a series of promises from politicians about what going to do to spend money, cut taxes,

whatever. the sort of forecast, if correct, is a wrecking ball through all of those types of borrowing forecasts that they have made their plans dependent upon. it changes everything. that is the bank of england forecasting a recession lasting more than a year because of these rising energy bills. energy bills which they now anticipate, taking into account some of the changes we have heard in the way in which you calculate the energy cap, they, the bank of england, now anticipate that the average bill for the average household will reach three and a half thousand pounds per year. that is treble what it was before. a further rise of about £1000, before. a further rise of about e1000, and a further rise of about £700 based on what the government is predicting just a few weeks ago, and a significant change, so significant that it takes the economy down and

leads to contraction in the economy of 1%. that recession that would start, says the bank of england, under its predictions, would last all the way through next year. very sobering predictions, a warning siren from the bank of england that will have to be heard in the political world. frankly, will have to be heard in the politicalworld. frankly, it is will have to be heard in the political world. frankly, it is the sort of prediction that you would get from... in any other circumstance you would get an emergency budget on the back of a prediction like this. they are saying that the energy shock caused by russia's invasion of ukraine is so serious that we will get a lengthy recession. 50 so serious that we will get a lengthy recession.— so serious that we will get a lengthy recession. so why are the increasin: lengthy recession. so why are the increasing interest _ lengthy recession. so why are the increasing interest rates? - lengthy recession. so why are the increasing interest rates? that i lengthy recession. so why are the increasing interest rates? that is| increasing interest rates? that is absolutely the _ increasing interest rates? that is absolutely the question, - increasing interest rates? that is absolutely the question, and i increasing interest rates? that is absolutely the question, and it i increasing interest rates? that is l absolutely the question, and it will be bewildering for some people at home that this is the case. at the same time that you have this prediction of a significant recession, you have rates going up

by 0.5%. this is a classic case of what the economic merits call stagflation. they are predicting that inflation will hit 13%, which is higher than we thought. every time they make a new prediction, the prediction of where the peak will be get ever higher. 13% is nowhere they think inflation will get to. it won't come down, it will still be just below 10%, and that is because we have the initial births of energy prices going up, so people may be thought, it is a serious shot but we can get through it. now energy prices have gone up again it is causing inflation to last longer and peek higher. your question is absolutely the right question, why are they raising rates, and that is

because, interest rates up until now were superlow in emergency pandemic levels. they were not even in normal recession levels. they will argue that they have to return them back to something like normal, because those high rates of inflation at 10% to 13%, they hopefully cut them in a fierce times, but if they don't raise rates, that percent of inflation will not last months last years. we will hear from the bank of england governor in his own words in the next few moments, but that is the next few moments, but that is the argument. and it is a difficult argument for those facing massive household energy bills think that if they are on a variable rate mortgage or a fixed—rate mortgage at that is coming to an end that they will also be hit substantially on their mortgage bills too, but that is the fact that is the reason why this

recession is now being predicted by the bank of england. a very tough set of forecasts and decisions from the bank of england, and they will be explaining them to the public in short order. the be explaining them to the public in short order-— be explaining them to the public in short order. the term stagflation is somethin: short order. the term stagflation is something that's _ short order. the term stagflation is something that's been _ short order. the term stagflation is something that's been talked i short order. the term stagflation is j something that's been talked about occasionally over recent years when the economy has been through difficult periods, but it hasn't happened. you need to look at the 19705 happened. you need to look at the 1970s and what happened back then. it is a situation, as you have clearly explained, they are trying to pull the levers, but they are dealing with a very complicated situation. is it the worst economic nightmare for the bank to face? the reason why — nightmare for the bank to face? tte: reason why it is very difficult, this term stagflation, stagnation and inflation, it is very difficult because it limits the room for

manoeuvre, because normally if the economy falls, the people at the bank of england will be supporting the economy, trying to get it going again. they cannot do that when inflation is so high, so they are out of it a bit of a bind, because they cannot control the price level, because that is being determined by geopolitical, diplomatic events. russia and ukraine, and other factors. it is actually not even that. you have this high inflation, yet the economy falling, but you also have quite high levels of debt in the system, notjust in the public sector because of the but also in the private sector, many companies have borrowed money in order to see themselves through the pandemic, so the combination of those three things, inflation, slowing economy, high levels of debt, it means that these interest rises will hurt. even as they return to even lower than they were as normal, ten or 15 years ago, it is a

tremendous challenge, because we don'tjust have an economic challenge, we also have effective restrictions on the mobility of the bank of england, to some degree the government, depending on your viewpoint, to combat that slowing of the economy by boosting it. this will shed new light on the debates that we are hearing between liz truss and rishi sunak, this is not what was anticipated by any of the candidates for prime minister that there would be a five quarters recession. it is suddenly announced itself on the stage in the middle of the leadership campaign, one wonders if there will be our recalibration of some of the plans, and if there will be a move to take action more quickly than the current timetable for the prime minister leadership context is currently setting to take place, in early september.

joining me now is alexandra loydon, a financial expert from the wealth managers stjames's place. it is not just it is notjust this interest rate rise, it is the fact that it's coupled with this announcement from the bank of england. what is your reaction? tt the bank of england. what is your reaction? . the bank of england. what is your reaction? , ., , , , ., reaction? it is no surprise that interest rates _ reaction? it is no surprise that interest rates have _ reaction? it is no surprise that interest rates have gone i reaction? it is no surprise that interest rates have gone up i reaction? it is no surprise that i interest rates have gone up today, it is something that the government of —— the governor of the bank of england has hinted at in an address last month. they're committing to a target of inflation hitting 2%, it is going to be some time before we hit that, but one of the measures that they are going to be very clear about taking to manage this demand side of inflation is to increase interest rates. there is no surprise, it is a challenging period for all the reasons that have been discussed. we are in a period of low unemployment, so the demand side of

inflation needs to be managed, and this is one of the measures that they have decided to take. hoes they have decided to take. how owerful they have decided to take. how powerful a _ they have decided to take. how powerful a tool _ they have decided to take. how powerful a tool do _ they have decided to take. how powerful a tool do you think it is in the context of increasing energy prices and inflation where it is, that target of 2%, there is such a huge gap. that target of 2%, there is such a hue aa -. , , ., that target of 2%, there is such a hu~~-ea. , ., huge gap. there is, you are right. it feels a huge gap. there is, you are right. it feels a long _ huge gap. there is, you are right. it feels a long way _ huge gap. there is, you are right. it feels a long way off _ huge gap. there is, you are right. it feels a long way off now, i huge gap. there is, you are right. it feels a long way off now, and i it feels a long way off now, and with the cost of living crisis where we are, we did some research recently to suggest that one in five families have seen their total household wealth drop in the last months, and that will increase. we have to face into this, and there are always going to be parties who are always going to be parties who are hit harder than others. is the 2% realistic in the short to medium

term? ifind that 2% realistic in the short to medium term? i find that hard to believe. if we are going to bring down that demand side, we are going to be seeing interest rates go up, i think. i'm nota seeing interest rates go up, i think. i'm not a betting person, but it wouldn't surprise me if we don't see them go up again. tote it wouldn't surprise me if we don't see them go up again.— it wouldn't surprise me if we don't see them go up again. we have to go back to the 1970s — see them go up again. we have to go back to the 1970s to _ see them go up again. we have to go back to the 1970s to see _ see them go up again. we have to go back to the 1970s to see stagflation l back to the 1970s to see stagflation in the economy here, what does history teach us? t in the economy here, what does history teach us?— in the economy here, what does history teach us? i wasn't around in the 1970s -- _ history teach us? i wasn't around in the 1970s. .. it — history teach us? i wasn't around in the 1970s. .. it was _ history teach us? i wasn't around in the 1970s. .. it was 1971 _ history teach us? i wasn't around in the 1970s. .. it was 1971 that - history teach us? i wasn't around in the 1970s. .. it was 1971 that 1 - history teach us? i wasn't around in the 1970s. .. it was 1971 that i was l the 1970s. .. it was 1971 that i was born, but reading _ the 1970s. .. it was 1971 that i was born, but reading about _ the 1970s. .. it was 1971 that i was born, but reading about it, i i born, but reading about it, i remember the economics of childhood and the difficulties financially around that, so from a more informed perspective of how long it went on and how you start to move out of

that, what is the lesson? this and how you start to move out of that, what is the lesson?- that, what is the lesson? this is one of the _ that, what is the lesson? this is one of the measures _ that, what is the lesson? this is one of the measures that i that, what is the lesson? this is one of the measures that they l that, what is the lesson? this is l one of the measures that they are taking to encourage people to reduce spending and to start saving more. if these measures start to work, we will start to see inflation dropped. does that entrench the recession? it's really difficult to say because of the circumstances that we find ourselves in right now. we didn't have their international elements factoring in or having to be factored in right now. we have the war in ukraine, we have incredibly high energy prices, we have the impact on food prices given the increase in grain prices triggered

by the ukraine war, we have a low unemployment, so really unusual circumstances, which, from my experience make it quite difficult to predict. tote experience make it quite difficult to redict. ~ . , . ., ., to predict. we are expecting to hear from the governor _ to predict. we are expecting to hear from the governor of _ to predict. we are expecting to hear from the governor of the _ to predict. we are expecting to hear from the governor of the bank i to predict. we are expecting to hear from the governor of the bank of i from the governor of the bank of england, so we're keeping an eye out for that, england, so we're keeping an eye out forthat, but england, so we're keeping an eye out for that, but in terms of people cutting back on their spending be able to afford the essentials which have gone up so dramatically, what is the picture, because people will have been doing as much as they can on that front, it gets to a point where there is little that can be donein where there is little that can be done in terms of cutting when it is the petrol, you can choose your car so much, energy for the house, you can use that so much, there are limits to that.— limits to that. there are limits, and it is very — limits to that. there are limits, and it is very difficult. - limits to that. there are limits, and it is very difficult. we i limits to that. there are limits, and it is very difficult. we are l limits to that. there are limits, | and it is very difficult. we are in and it is very difficult. we are in a difficult period, and we may be entering into a more difficult and challenging period for families and individuals as well. all i can say

from a financial advice perspective is, even if you are doing as much as you can, take advice. review your outgoings, make sure that the outgoings, make sure that the outgoings are absolutely essential, there is lots of information out there is lots of information out there on the internet, information on our website, and there are lots of avenues out there that can offer families advice on how to budget, and i think that is what people have to focus on right now, really budgeting if you are on variable rate mortgages, see if you can secure better rates or windows where you might be able to reduce your outgoings, they are the myriad of options out there for families to take. it is going to be hard and tough.

take. it is going to be hard and tou~h. . ~' ,. take. it is going to be hard and tou~h. . ~' , take. it is going to be hard and tou~h. . , . ., tough. thank you very much for “oininu tough. thank you very much for joining us- _ tough. thank you very much for joining us- we _ tough. thank you very much for joining us. we are _ tough. thank you very much for joining us. we are expecting i tough. thank you very much for joining us. we are expecting to | tough. thank you very much for- joining us. we are expecting to hear from the governor of the bank of england, i am just trying to look at the pictures, there is no sign of him just yet, but we will bring you that, when we came here from the governor. we will go there for more detail on what has proved to be a much more dramatic announcement then we were expecting, the 0.5% increase in interest rates is one thing, but it has been coupled with this prediction by the bank that there will be more than a recession starting from the last quarter of this year, going on for five quarters that has got the focus now. we will hear from the governor as soon as he arrives to speak to the media about the thinking behind the forecasting and also the decision on interest rates. it had been anticipated, nonetheless it is

taking interest rates to a level that has not been seen in a number of years, 1.75%. we will bring you the governor of the bank of england as soon as we can. the family of archie battersbee have made an application to the high court to move the 12—year—old to a hospice. last night, the european court of human rights refused to intervene, ending the family's last hope of using the law to prolong his treatment. archie has been in a coma since april. our reporter katharine da costa has been at the royal london hospital in east london. having lost their legal battle, the family have spoken of their heartache and utter devastation. they were told that their son's life support would be withdrawn by 11 o'clock this morning unless they submitted an application to the high court requesting that he be moved to a hospice, that had to be in by nine o'clock this morning. they made that deadline, and his mother, hollie dance has said that she wants him to be moved to a hospice so they can be

with him in private. away from the noise and chaos of the hospitals, so that treatment can be ended there. lawyers for the health trust have said that they would oppose any move to a hospice because they believe his condition is unstable and that transferring and even a short distance could be a significant risk. the trust has said that it will not make any changes to archie's treatment until all court proceedings have been finalised. in a statement, archie's mum has said that if they refuse to take him to a hospice and give him palliative oxygen it would simply be inhumane. their 12—year—old son is on a ventilator, he is receiving a number of drug treatments to keep his organs still functioning. he has been in a coma for nearly four months since suffering

a catastrophic brain injury in his home in essex in early april, and doctors caring for him have said that they believe he is brain dead, that he has made no response, that he is unlikely to make any recovery, and that they think it is in his best interest for treatment to end. his family have fought tirelessly for the life support to continue, they have said that they have been contacted by hospitals injapan and italy offering to continue his care, but some experts say that given he is into fragile state to move he is in too fragile state to move even a short distance to a hospice, it is unlikely that he would survive being moved abroad. the price cap on household energy bills in england, scotland and wales is to be changed every three months instead of every six. the industry regulator, ofgem, said the aim was to provide some stability in the energy market. but campaigners have said it will force more people into fuel

poverty this winter. jonathan brearley, ofgem chief executive, says these changes are linked to global market conditions. i talk to customers every week and i know that everyone is worried about the way our energy market is changing and energy prices are changing. that is driven by global events, it's ultimately driven by more demand from asia but most importantly, russia, for whatever reason, withholding gas from that international market. this market isn't only facing rising prices, it is very, very volatile. what we've got to do as a regulator is two things. first, yes we need to make sure companies can get back the cost of the energy that they need to buy in that international market. equally, we need to make sure we're not going back to the bad old days where they are making very big profits on top of that. now, the changes we're making today to make sure that the change in price regulation can keep up with the change in the market. it does mean as costs go up, yes the price cap will change more frequently, but also costs come down those prices will come down more quickly as well. what we are doing is trying to make

sure that customer interests are protected in what ultimately is a very challenging market for everyone. justina miltienyte, head of policy at uswitch, said this announcement is more bad news for customers. ofgem is right that the market is volatile and those costs have to ultimately be passed through, because supplies are incurring them. what that means for customers is that there is more uncertainty, the bills will change every three months rather than every six months, and the first change that is not expected. we have got used to the october and april one, but we will get one on the 1st of january, just after the holidays and at the most expensive time of the year. as ofgem will be reviewing it every three months, if the costs go down, that will be reflected in the price cap sooner. we don't see that happening in the next six to nine months,

at the moment itjust means there will be more increases. ofgem has said this measure will help to stabilise the market, it will help to prevent more supplies failing, nobody wants to see supplies feeling, that is a lot of upheaval for suppliers and customers who have been with the suppliers, and ultimately more costs. let's not hide from the fact, this is not good news for customers, that means more rises for customers at the most expensive time of the year when consumption is highest. and later, at two thirty this afternoon we'll be answering your questions on the cost of living. you can send them in to us by tweeting — using the hash tag #bbcyourquestions or by emailing them to yourquestions@bbc.co.uk taiwan's defence ministry says china has fired multiple ballistic missiles during a set of military exercises in the air and sea encircling taiwan.

beijing launched the drills in response to a visit by nancy pelosi — the most senior us official to go to the self—governed island in 25 years. the exercises are taking place in some of the world's busiest waterways. taiwan sees itself as independent, but china views it as its own. our china correspondent stephen mcdonell has more from beijing. for the last couple of days, china has been amassing large formations of planes and ships all around taiwan. and now the shooting has started, so these are live fire drills, and in those zones marked out to the north, to the south, east and west of taiwan, the pla has warned commercial ships not to enter, commercial planes not to fly through that airspace. interestingly, i see that the us air force has sent a ship, a plane there, to go and observe these military drills. this is something the us has done in the past when there have been live fire drills. there's talk that the pla could considerfiring missiles

over taiwan's territory. if that happened, it would be a massive escalation, the likes of which we've not seen. but even already, these are unprecedented scenes. these zones, if they're all used up, they would involve mainland military exercises moving into taiwan's territorial waters. and, you know, you just have to wonder if this was all worth it in terms of a visit. i mean, if you're adding up the advantages and disadvantages of having the number three leader from the us travelling to taiwan, certainly a lot of tension, a lot of pressure on that island now. and more concerning, potentially, is that now the pla has done this this year, does that mean every year it's going to have a dress rehearsal for a blockade of taiwan? a dress rehearsal for an attack, an attempt to seize the island and bring it back into the arms

of the motherland, as china's foreign minister expresses it? so, a lot of questions, and certainly a lot of tensions building around taiwan as we speak. timothy heath is a senior international defense researcher researcher with rand, a research organisation that develops solutions to public policy challenges. was it wise for nancy pelosi to go to taiwan?— was it wise for nancy pelosi to go to taiwan? ~ .,, , ., to taiwan? whether it was wiser not, she had clearly _ to taiwan? whether it was wiser not, she had clearly made _ to taiwan? whether it was wiser not, she had clearly made up _ to taiwan? whether it was wiser not, she had clearly made up her- to taiwan? whether it was wiser not, she had clearly made up her mind i to taiwan? whether it was wiser not, she had clearly made up her mind to| she had clearly made up her mind to 9°. she had clearly made up her mind to go, and the government cannot necessarily prevent her or prohibit herfor necessarily prevent her or prohibit her for carrying out her travel. necessarily prevent her or prohibit herfor carrying out her travel. i agree that the tensions have certainly increased, but it is worth bearing in mind that nancy pelosi's trip follows a string of visits by us congressmen including senators, as well as an increase in

relationship between china and taiwan and countries such as india and australia. taiwan is drifting further away, and the nancy pelosi visit simply underscores that fact, the hard thing for beijing to accept is that it has virtually no way to reverse those trends, there is no incentive for taiwan to embrace unification through a peaceful method, in fact support for a peaceful unification has dropped below 10% in taiwan, despite all the carrots and sticks offered by beijing, nothing seems to be working, and a military intervention is only going to alienate the people of taiwan further. i think the people of beijing, despite the muscle flexing... t’m people of beijing, despite the muscle flexing. . .— muscle flexing... i'm sorry to interrupt _ muscle flexing... i'm sorry to interrupt you _ muscle flexing... i'm sorry to interrupt you but _ muscle flexing... i'm sorry to interrupt you but we - muscle flexing... i'm sorry to interrupt you but we need i muscle flexing... i'm sorry to interrupt you but we need to | muscle flexing... i'm sorry to l interrupt you but we need to go muscle flexing... i'm sorry to i interrupt you but we need to go and hear from the governor of the bank of england.

a few words from andrew and then will open _ a few words from andrew and then will open up — a few words from andrew and then will open up to— a few words from andrew and then will open up to questions. - a few words from andrew and then will open up to questions. the i a few words from andrew and then will open up to questions. the risks around the — will open up to questions. the risks around the mpc's _ will open up to questions. the risks around the mpc's forecast - will open up to questions. the risks around the mpc's forecast on i around the mpc's forecast on exceptionally large at present. the source of these risks and the driver of most of the resurgence of the forecast since the report is overwhelmingly energy prices and the consequences and actions of russia. in line with the that used in the mpc, the baseline projections are conditioned upon wholesale energy prices, following their cares for the next six months and their remaining constant thereafter. the current bank rate implied by financial markets and fiscal policy involving in line with announced policies. but there are a range of plausible pads for the economy which

have cpi inflation and medium term activity significantly higher or lower than the baseline projections. with that in mind with the uncertainty in mind that i referred to in the report, we have included several projections for gdp, unemployment and inflation. the report —— the point i would draw out is that the mpc is facing less weight and the implications of any single... choosing to draw more heavily on scenarios as well. the point i made about uncertainty. unlike many recent press conferences, in view of this, i thought it would be helpful, as i go to my opening remarks to use charts. so you will see some charts coming we will be print —— we will be publishing these charts as well. since the may report, as this chart

shows, the most significant piece of news has been the further sharp increase in energy prices. you can see it in the orange line is against the purple line which is the line from me. and from that, you can see that wholesale gas futures prices for the end of this year, that is right at the hump that you see in the orange line, have nearly doubled since may. moreover, they are almost seven times higher than implied by the future's curve a year ago. that's overwhelmingly as a consequence of the restricted gas supplies to europe by russia. you can see when i talked about the conditioning assumption and the way that we hold the price constant up to six months. you can see that in the two dashed lines on the chart. the consequence of this is that near—term inflationary pressures have intensified significantly. it is expected to peak atjust over 13%

and remain at elevated levels throughout much of 2023. the bulk of that further increase reflects further wholesale prices through to retail energy prices with a further large rise in the off energy price gap in october. i should stress that our forecasts and projections take into account the new method announced by of gym this morning. so you can see in the next chart the direct impact of energy prices and cbi direct impact of energy prices and cb! regeneration and the extent of cbi regeneration and the extent of the latest revisions. the green line. i will come back to the dashed green line later because that shows an alternative projection which uses the full futures curve rather than the full futures curve rather than the fixing of the line. but you can see obviously there are clearly what has gone on in recent forecasts. i use they're deliberately the direct impact. it is not a total impact of energy, it is the direct impact of

energy. this rising energy prices has exacerbated the falling incomes and lead to a significant deterioration on the outlook for activity in the uk and the rest of europe. gdp growth in the uk has slowed and it is for cassoulet enter recession later this year. as illustrated by the white line on this chart, the chart is showing what we are projecting, i am using the baseline projection here, with the baseline projection here, with the fixed line of energy prices, comparing it with past recessions. said their white line shows that the projected peak and trough line an hour to 40% similar to that experienced in the 1990s recession, in green. less than the global financial crisis shown in pink. in marked contrast to these previous

episodes, this predominantly reflects the adverse impact of the very sharp rise in global energy and tradable goods prices in income and spending. as shown in their fun chat here for inflation, these further accentuated the extent to which each in the mpc baseline projection, ubc projections below the target in three years time. cpi inflation has projected the fullbacks from its peak as rising domestic pressures are outweighed by the assumed stabilisation of global energy prices and falls and tradable goods prices. inflation then pull —— it. sharply in two years time as it continues to dissipate and domestic factors also fade. it falls well below the target in three years time reflecting on further weakening of domestic pressures. going back to my

introductory remarks, the uncertainty around the outlook is exceptionally high, especially for energy prices. under our standard conditioning assumption, energy prices would be extremely high by historical standards throughout the whole of the three year forecast period. that is the effect of fixing the price. therefore, as in a recent report, we have also set up an alternative projection in which energy prices that follow their downward sloping futures curve but are still above their pre—pandemic levels throughout. you can see that in this chart. as shown in the green to blue line in this chart, under this assumption, the lower contribution from energy prices implies cpi inflation of around one percentage point below the 2% target of the two year point, and even further below the target at year three. this would result in a smaller fall

three. this would result in a smallerfall in the three. this would result in a smaller fall in the household is real income and spending and gdp will be somewhat higher and then in the baseline projection. you can see that here by looking at the green line that has been put on, comparing it to the white line. the economy is still projected to experience a recession but are less steep one. the difference between these forecasts demonstrates the sensitivity of the outlook for inflation to swings in energy prices. that is really the only thing that changes now. the russian shackis thing that changes now. the russian shack is now the largest contributor to the uk inflation by some way. there is an economic cost to the war, but i have to be clear, it will not deflect us from setting monetary policy and setting the inflation back to the target. domestic inflationary pressures have also remained strong. firms generally report that they expect to increase

their selling prices markedly, reflecting the sharp rise in their costs. the labour market remains tight, with the unemployment rate up 3.8% in the three months to may and vacancies at historically high levels. the tightness of the labour market partly reflects the fall in the labour faults at the start of the labour faults at the start of the pandemic, which is in part due to inactivity shown by the orange buyers in this chart. as a result, and consistent with the latest agent survey, underlying nominal wage growth is expected to pick up further. domestic pressures on cpi inflation are more or less expected to dissipate thereafter. although the labour market may lose slowly due to falling demand, unemployment rate is due to rise from next year. acting to ensure that longer term inflation targets rank at the 2%

target, inflation itself. at. there is however a risk that domestic price setting improves more persistent than the mpc baseline projection. with that in mind, the mp also contains a scenario in which cuts can be passed on to labour prices to a further extent than normal. shown in the purple line in this chart, under this scenario, cpi inflation is even further above the target inflation rate it year to button below at year three. so let me turn to the mpc's decision. the mix of high inflation leading up to a recession is a challenging backdrop for policy. monetary policy must be set taking into account the scale of the ship while keeping

account of scale of inflation and expectations. returning to the 2% target remains our absolute priority. at this meeting, those who voted to increase the bank rate by not .5% points to not .75%. the committeejudged not .5% points to not .75%. the committee judged that a more forceful joke committee judged that a more forcefuljoke policy action was justifiable at this meeting because they have been some indications that inflationary pressures will be becoming more persistent and broadening to other sectors. companies are finding it easier to increase prices and the labour market remains tight. in a social environment, there is a risk that the furtherjump in energy prices are on a higher more protracted that of cpi inflation over the next 18 months will lead to more enduring processing pressures. overall, a faster pace of policy timing at this meeting will help to bring inflation back to the 2% target sustainably in

the medium term, and reduce a possible tightening cycle later. looking ahead, that does not mean we are now moving to a predetermined path, but raising back rate by 50 points for meeting or at any other rate for that matter. it is not on a preset path and what we do this time does not tell you what we are going to do next time. all options are on the table for our september meeting and beyond that. the mpc will take the necessary action to return inflation to the 2% target sustainably in the medium term in line with treatment. the scale, pace and timing of any changes in bank rate will reflect the committee's assessment of economic outlook and inflationary pressures. the committee will be particularly alert to any indication of persistent inflationary pressures and will if necessary act forcefully in response. i recognise the

significant impact this will have and how difficult the cost of living challenge will continue to be the many people in the united kingdom. inflation hits the least well off hardest. but if we don't act to prevent inflation becoming persistent, the consequences later will be worse, and that will require larger interest rates. at this meeting, the committee also provided in its strategy for the facility portfolio. the mpc has provisionally minded to commence to the september meeting, to a complementary vote at the meeting. wear it to proceed, the committeejudged the meeting. wear it to proceed, the committee judged that over the first 12 months of a cell prog gram, around £80 billion is likely to be

appropriate. it would apply a sales programme of around £10 billion per quarter. the plan details the proposed programme alongside the mpr. to conclude, let me reiterate that ourjob is to hit the inflation target. to return inflation to target. to return inflation to target. the no ifs or buts on our commitment to the 2% inflation target. that is ourjob and that is what we will do. thank you. thank ou. and what we will do. thank you. thank you- and now _ what we will do. thank you. thank you. and now the _ what we will do. thank you. thank you. and now the questions. if i what we will do. thank you. thank| you. and now the questions. if you wouldn't _ you. and now the questions. if you wouldn't mind _ you. and now the questions. if you wouldn't mind identifying - you. and now the questions. if you i wouldn't mind identifying yourselves and your— wouldn't mind identifying yourselves and your organisations _ wouldn't mind identifying yourselves and your organisations and - wouldn't mind identifying yourselves and your organisations and please i wouldn't mind identifying yourselvesl and your organisations and please do speak— and your organisations and please do speak up— and your organisations and please do speak up and — and your organisations and please do speak up and directly— and your organisations and please do speak up and directly into _ and your organisations and please do speak up and directly into the - speak up and directly into the micmphone _ speak up and directly into the microphone. it _ speak up and directly into the microphone. it is _ speak up and directly into the microphone. it is sometimesl speak up and directly into the i microphone. it is sometimes hard speak up and directly into the - microphone. it is sometimes hard for us to— microphone. it is sometimes hard for us to hear. _ microphone. it is sometimes hard for us to hear. try— microphone. it is sometimes hard for us to hear. try to _ microphone. it is sometimes hard for us to hear. try to stick _ microphone. it is sometimes hard for us to hear. try to stick to _ microphone. it is sometimes hard for us to hear. try to stick to one - us to hear. try to stick to one question— us to hear. try to stick to one question first _ us to hear. try to stick to one question first and _ us to hear. try to stick to one question first and then - us to hear. try to stick to one question first and then we i us to hear. try to stick to one | question first and then we will us to hear. try to stick to one i question first and then we will come around _ question first and then we will come around again. — question first and then we will come around again. joel, _ question first and then we will come around again. joel, can— question first and then we will come around again. joel, can we - question first and then we will come around again. joel, can we start i around again. joel, can we start with— around again. joel, can we start with you? — around again. joel, can we start with you?— with you? joel hills, itv news. goodness. _ with you? joel hills, itv news. goodness, where _ with you? joel hills, itv news. goodness, where to _ with you? joel hills, itv news.

goodness, where to start? if. with you? joel hills, itv news. | goodness, where to start? if liz truss _ goodness, where to start? if liz truss becomes prime minister, and implements a package of immediate tax cuts _ implements a package of immediate tax cuts were £30 billion, will it mean _ tax cuts were £30 billion, will it mean that— tax cuts were £30 billion, will it mean that interest rates will have to rise _ mean that interest rates will have to rise faster and further than they otherwise — to rise faster and further than they otherwise would? and connected to that, otherwise would? and connected to that. liz— otherwise would? and connected to that, liz truss has been explicitly critical _ that, liz truss has been explicitly critical of — that, liz truss has been explicitly critical of the bank and accused it of failing — critical of the bank and accused it of failing to grip spy let relink prices? — of failing to grip spy let relink prices? do you accept that criticism. _ prices? do you accept that criticism, and with a different mandate _ criticism, and with a different mandate to help you to keep prices stable? _ mandate to help you to keep prices stable? let mandate to help you to keep prices stable? . mandate to help you to keep prices stable? , . ., ., stable? let me be clear on two oints. stable? let me be clear on two points- one — stable? let me be clear on two points. one is _ stable? let me be clear on two points. one is that _ stable? let me be clear on two points. one is that it _ stable? let me be clear on two points. one is that it is - stable? let me be clear on two points. one is that it is not i stable? let me be clear on two points. one is that it is not for| points. one is that it is not for the bank of england to get involved in the leadership election that is taking place for the leader of the conservative party. we are not going to comment on that. secondly, as i said earlier, we conditioned on the fiscal policy that was announced. i

look forward to working with the next prime minister, and i'm sure the energy budget and fiscal policies see will be announced, but further than that i will not comment. further than that i will not comment-— further than that i will not comment. . , ., further than that i will not comment. , ., ., , comment. lucy right from the daily mail. comment. lucy right from the daily mail- going — comment. lucy right from the daily mail. going back— comment. lucy right from the daily mail. going back to _ comment. lucy right from the daily mail. going back to joel's - comment. lucy right from the daily| mail. going back to joel's question, mail. going back tojoel's question, obviously— mail. going back tojoel's question, obviously liz truss has spoken about wanting _ obviously liz truss has spoken about wanting to _ obviously liz truss has spoken about wanting to alter the bank of england mandate. _ wanting to alter the bank of england mandate. do you think there is room for a change? and would you welcome any suggestions? and also, obviously, we are looking at a pretty— obviously, we are looking at a pretty dire picture for households and income falling for the next two years. _ and income falling for the next two years. the — and income falling for the next two years. the largest amount on record. in years. the largest amount on record. in plain _ years. the largest amount on record. in plain speaking terms, how bad does _ in plain speaking terms, how bad does this— in plain speaking terms, how bad does this look for the uk? obviously, the opr's projections for the public— obviously, the opr's projections for the public finances over the long term _ the public finances over the long term are — the public finances over the long term are pretty bad already. if the

next prime — term are pretty bad already. if the next prime minister does introduce further— next prime minister does introduce further support packages for households, how bad is it going to get? _ households, how bad is it going to tet? �* ., ., , households, how bad is it going to tet?�* ., i get? again, as i said to joel, i'm not auoin get? again, as i said to joel, i'm not going to _ get? again, as i said to joel, i'm not going to comment _ get? again, as i said to joel, i'm not going to comment on i get? again, as i said to joel, i'm i not going to comment on anything being said by the candidates to the leader of the conservative party. i will say two things. one, just to remind what the mandate of the bank of england is in respect to larger policy. that is that the objectives set out in statute set out in 1997 is price stability, and that each year the government in the former chancellor informs us what the language of the act is taken to be. in other words, the government sets the target. it is important because thatis the target. it is important because that is a somewhat different structure to other countries. i'm not saying that in a judgmental sense. it is great virtue of our system that we make very clear what the target is. but i must also make

clear that it was set up with a very clear that it was set up with a very clear mandate of price stability, and the mandate, sorry the target has been changed with the change of definition cpi. there have also been reviewed from time to time. on the second question, i'm not going to comment on fiscal policy. all i would emphasise in terms of the situation to reinforce the remarks that i made, is the consequences of the actions that are followed and to emanate from russia, are obviously serious, as you can tell from the remarks i made on our decision and the mpr. just remarks i made on our decision and the mpr. . , ., remarks i made on our decision and the mpr., , ., ., , remarks i made on our decision and the mpr. , ., ., , ., the mpr. just to give a bit more detail, the mpr. just to give a bit more detail. there _ the mpr. just to give a bit more detail, there has _ the mpr. just to give a bit more detail, there has been _ the mpr. just to give a bit more detail, there has been a - the mpr. just to give a bit more | detail, there has been a previous review_ detail, there has been a previous review of— detail, there has been a previous review of the _ detail, there has been a previous review of the monetary— detail, there has been a previous review of the monetary policy- review of the monetary policy framework _ review of the monetary policy framework carried _ review of the monetary policy framework carried out - review of the monetary policy framework carried out by- review of the monetary policy framework carried out by the| framework carried out by the government— framework carried out by the government in— framework carried out by the government in 2013. - framework carried out by the government in 2013. the i framework carried out by the i government in 2013. the only other point _ government in 2013. the only other point that— government in 2013. the only other point that i— government in 2013. the only other point that i would _ government in 2013. the only other point that i would mention - government in 2013. the only other point that i would mention is i government in 2013. the only other point that i would mention is that i point that i would mention is that

it has— point that i would mention is that it hasjust — point that i would mention is that it hasjust been _ point that i would mention is that it hasjust been 25— point that i would mention is that it has just been 25 years - point that i would mention is that it has just been 25 years since i point that i would mention is that| it has just been 25 years since the mpc was— it has just been 25 years since the mpc was established, _ it has just been 25 years since the mpc was established, so - it has just been 25 years since the mpc was established, so if- it has just been 25 years since the mpc was established, so if you i it has just been 25 years since the l mpc was established, so if you take the average — mpc was established, so if you take the average cpi _ mpc was established, so if you take the average cpi inflation _ mpc was established, so if you take the average cpi inflation rate, i the average cpi inflation rate, bearing — the average cpi inflation rate, bearing in— the average cpi inflation rate, bearing in mind _ the average cpi inflation rate, bearing in mind that- the average cpi inflation rate, bearing in mind that cpi i the average cpi inflation rate, i bearing in mind that cpi became the target _ bearing in mind that cpi became the target in _ bearing in mind that cpi became the target in 2003. _ bearing in mind that cpi became the target in 2003, but _ bearing in mind that cpi became the target in 2003, but take _ bearing in mind that cpi became the target in 2003, but take the cpi - target in 2003, but take the cpi inflation — target in 2003, but take the cpi inflation rate _ target in 2003, but take the cpi inflation rate from _ target in 2003, but take the cpi inflation rate from 2007 - target in 2003, but take the cpi inflation rate from 2007 to i target in 2003, but take the cpij inflation rate from 2007 to april 2022. _ inflation rate from 2007 to april 2022. it— inflation rate from 2007 to april 2022. it has— inflation rate from 2007 to april 2022, it has averaged _ inflation rate from 2007 to april 2022, it has averaged almost i inflation rate from 2007 to april| 2022, it has averaged almost 2% which _ 2022, it has averaged almost 2% which is — 2022, it has averaged almost 2% which is the _ 2022, it has averaged almost 2% which is the inflation _ 2022, it has averaged almost 2% which is the inflation target. i 2022, it has averaged almost 2% which is the inflation target. [i which is the inflation target. i have which is the inflation target. have got maureen, and then which is the inflation target]- have got maureen, and then paul. governor. — have got maureen, and then paul. governor, you have spoken for the last few_ governor, you have spoken for the last few months _ governor, you have spoken for the last few months about _ governor, you have spoken for the last few months about needing i governor, you have spoken for the last few months about needing to| last few months about needing to tread _ last few months about needing to tread a _ last few months about needing to tread a narrow— last few months about needing to tread a narrow path _ last few months about needing to tread a narrow path between i tread a narrow path between inflation _ tread a narrow path between inflation and _ tread a narrow path between inflation and growth. - tread a narrow path between inflation and growth. to i tread a narrow path between. inflation and growth. to these points— inflation and growth. to these points show— inflation and growth. to these points show that _ inflation and growth. to these points show that you - inflation and growth. to these points show that you have i inflation and growth. to these i points show that you have typed in that narrow — points show that you have typed in that narrow further _ points show that you have typed in that narrow further and _ points show that you have typed in that narrow further and are - points show that you have typed in that narrow further and are facingi that narrow further and are facing an sharply— that narrow further and are facing an sharply shrinking _ that narrow further and are facing an sharply shrinking economy... i that narrow further and are facing i an sharply shrinking economy... we are an sharply shrinking economy... are leaving that question and answers with the governor of the bank of england. following on from

the interest rate rise of no .5%. the picture outlining their is what he describes as a challenging backdrop for monetary policy. it is the prediction of the bank of england that the country will go into recession in the last quarter and that it will last for five quarters, so more than a year of recession looming. that is the word from the bank of england and predicting inflation peaking at 13%. he was saying there that returning inflation of the banks target to 2% is the absolute priority. no ifs and no buts. let's go to our political correspondent, damon damien grammatical is. questions were being asked there if the governor about what that would mean for their contest the tory leadership. he

wouldn't comment on that. but this is an effect on the leadership campaign in terms of tax cuts. fits campaign in terms of tax cuts. as ou campaign in terms of tax cuts. is you heard, he did not want to get drawn in any way into anything that could sound like commenting on the leadership campaigns. but what this does do is throw a very stark light on the candidates and their different positions, and that really crucial sort of fundamental difference that exists between the two of them in their approach to tackling inflation and growth. and we know, in that, that liz truss's that she believes should be a reversal of some of the tax levies such as the national insurance increases and she says she wants to

turbo—charge growth and put a focus on that, to cut regulations, and she believes that that should be the priority. by contrast, rishi sunak has said that he thinks that controlling inflation as a priority and he says liz truss's party would be a dangerous one, because if you cut tax rates and make the inflationary problem worse, then that will simply push up interest rates and make things much harder for homeowners, businesses down the line, make the problem much more difficult. liz truss has also said that she thinks the bank of england, or there has been comment that the bank of england did not get a grip on inflation or act on it sooner and would look at their mandate. we did hear that question put in the press conference there. interestingly

though the answer was that the mandate is very clear at the minute. slightly different to the way it operates in other countries, but it has, i think the words with a great virtue of being very clear of what the target is. that target is set yearly by the chancellor, the price rises for inflation. lizjust yearly by the chancellor, the price rises for inflation. liz just said she would want to go that way. rishi sunak is already come out and put out a response saying that an pushing up interest rates would make everyone poorer. pushing up interest rates would make everyone poorer-— is the... are very different focus of the one that had been anticipated. is the bank of england right to raise by that back i think

what this shows is that the conservatives have lost control of the economy. tote conservatives have lost control of the economy-— conservatives have lost control of the econom . . . ., . , ., _ the economy. we have a decision by the economy. we have a decision by the bank the economy. we have a decision by the ltank of — the economy. we have a decision by the bank of england _ the economy. we have a decision by the bank of england today _ the economy. we have a decision by the bank of england today which i the economy. we have a decision by the bank of england today which is i the bank of england today which is going to impact further on the cost of living crisis and the pressure that people face in paying their bills and getting to candidates for the leadership of the conservative party... the leadership of the conservative pa , ., , , party... sorry to interrupt, but time is quite — party... sorry to interrupt, but time is quite tight _ party... sorry to interrupt, but time is quite tight and - party... sorry to interrupt, but time is quite tight and i i party... sorry to interrupt, but time is quite tight and i would | party... sorry to interrupt, but i time is quite tight and i would like to hear what you think is the right thing to do, not your view of what the tory contenders are proposing. the bank of england has independence, which was something set up 25 years ago. there was a broad political consensus around it. what the government should be focusing on is the levers they have within their control to bring down inflation, to help with the cost of living crisis and to get the economy growing. i think some of the language we are hearing from some of the leadership contenders in the

conservative party is to try and somehow blame the bank of england for what is happening now. i think thatis for what is happening now. i think that is a pattern that we have seen in the conservatives for some time. sorry, i'm going to gently in the conservatives for some time. sorry. i'm going to gently steer in the conservatives for some time. sorry, i'm going to gently steer you back if that's ok. what would you do? what is your view of tax cuts? we have been very clear on what taxes would look like. we believe the conservatives were wrong to increase national insurance the way they did when they should have looked with broader shoulders to take a higher tax instead. rules we have been pitching to the windfall tax to cover energy bills. they came round to that five months after we first called for it. right now we are calling for a scrapping of vat on home energy bills and we put out a fully costed explanation and plan of how that can happen by cutting the tax rates to oil and gas producers and backdating the

windfall tax to the start of the year. that would fund the cut in vat of home energy bills for this year, and that would make a real difference both to people energy bills and the cost of living crisis they are facing and to inflation. thank you very much indeed for joining us. we had are heading to the one o'clock news. first of all let's catch up with the weather with chris fawkes. hosepipe bans are coming to live further parts of south england next week. if we take a look at england as a whole between january and july, we have only had two thirds of our normal rainfall, but back in 1976 it was even drier than that. mind you, there is no rain in the forecast for the next few days. bone dry in the majority of england again. to be honest, i don't really see any rain falling next week either. this dry weather is set to continue. today we have

plenty of sunshine across england and wales, but for scotland and northern ireland it's a mixture of sunny spells in a few passing showers. the majority of the shows will be to the north of northern ireland and the highlands and hebrides of scotland as well. how much fresher fields at the weather in the sunshine across east anglia and south—east england. a more pleasant fields of the weather. overnight tonight, showers will continue for rent northern ireland and scotland, but perhaps running into wells for a time as well. no rain expected and close by skies. tomorrow, a very similar day where there is on the cards. northern ireland and scotland, perhaps the north west of england seen one or two passing showers. the temperature is very similar as well for friday. take a look at the weather for the commonwealth games. the athletics taking place tomorrow, we are looking fine here with temperature of around 20 celsius. perfect

conditions for the athletes here. the weekend, there will be something forever change for the finals whether scotland. threatening some thick cloud and some rain. a bit more clad for northern ireland and parts of northern england, but across the bulk of england and wales, it is another fine and sunny day with temperatures ranging between 23 and 26 and 77 celsius. sunday and into next week, this area of high pressure will become more expansive across the uk, so the weather becomes drier and a lot warmer as well, if not hot. temperatures coming back into at least the low 30s across parts of england. the one starting to spread to northern ireland and scotland as well.

the bank of england predicts that the uk will enter a recession this autumn lasting more than a year. the bank says inflation is likely to peak at 13% later this year, adding to concerns over the cost of living. gdp growth in the uk has slowed and the economy is forecast to enter a recession later this year. and the bank of england today raised interest rates by 0.5% to 1.75%. some businesses voice concern at the change. it is crippling. interest rate rises are something that could really stop a small business like us. in our other main news this lunchtime... china launches several ballistic missiles into waters around taiwan

in response to a us senator's visit to the island.