and ukraine has accused russia of causing the leaks. hello. this is bbc news — these are the latest headlines in the uk and around the world. one of the world's most important financial institutions — the international monetary fund — criticises the government's tax cuts — and calls on ministers to �*re—evaluate�* their plans. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries. this, unlike other fluctuations in the market, is a self—inflicted wound. these were the deliberate decisions of the government on friday. following on from the mini budget, some lenders have halted mortgage offers for new customers, others have said they will increase rates on fixed mortgages.

are you a first—time buyer, have recently taken on a mortgage or are looking to move — how is this impacting you? do get in touch on twitter @annitabbc or use the hashtag #bbcyourquestions. cuba is completely without power after hurricane ian has struck the western end of the island. two people are reported dead. florida now braces itself for the category three hurricane with life—threatening winds, floods and tidal surges. leaders of several european countries claim that rare gas leaks that have hit the nordstream pipelines were not accidents but �*deliberate acts'. gas flows in the nordstream 1 pipeline were stopped in august. the president of ukraine has pledged to protect citizens in areas of his country which could be annexed by moscow — after the kremlin held unofficial referendums.

hello and welcome if you're watching in the uk or around the world. watching in the uk the international monetary fund — which works to promote stability in the global economy — has criticised the british government's plans for tax cuts, warning the measures are likely to fuel the cost—of—living crisis. in an unusually outspoken statement — the imf said the uk's developments were being closely monitered and said untargeted fiscal packages were not recommended during a period of high inflation. it warned the government its mini—budget risked increasing inequality. the white house also criticised the government's policy — saying it was important to focus on �*fiscal prudence, and fiscal discipline�*. the pound dipped in asian trade this morning — standing at around $1.

the imf said that the government�*s fiscal plan in late november would give it an opportunity to �*re—evaluate�* tax measures — �*especially those which benefit high income earners.�* the uk government proposals would scrap the top rate of income tax and end a cap on bankers�* bonuses, among other measures. the announcement on friday sparked financial turmoil, as investors dumped the pound. on monday the pound fell to record lows against the dollar. some of the country�*s biggest lenders have suspended mortgage deals amid the uncertainty. the treasury said: "we are focused on growing the economy to raise living standards for everyone." adnan mazarei is a former deputy director at the imf. here�*s his reaction on the today programme. the imf doesn�*t make such strong statements about g7 countries. these statements are common with regard to emerging market countries with problematic policies,

but not often about g7 countries. so what is it about the announcements from kwasi kwarteng that has spooked them to make this move? i think they�*re worried that the tax cuts are permanent. they are afraid that the budget financing needs will go up. and their requiring more borrowing domestically. inflation rising, requiring interest rate increases by the bank of england. and there being a policy conflict between the treasury and the bank of england. at the same time, the united kingdom is running a large current account deficit and relies on foreign financing. adnan mazarei, former deputy director of the imf.

ngaire woods is the dean of the blavatnik school of government at the university of oxford, and a former external advisor to the international monetary fund. she gave her assessment of the imf warning. one of the imf�*s many roles is to speak truth to power, to tell governments what they might not want to hear. but what it is that many economists, investors, etc, in the world will be thinking. so i think for good government policy you want to show that you�*re listening to experts, even if you disagree with them, so i think disdaining the imf, firing the long—standing head of the treasury, these moves not only deprive the government of experts who really have been through this kind of thing before and know what they are talking about, but also signals to the markets and investors that this is a government that�*s not going to listen to those who might know more than new ministers about notjust what these policies should be but about how to land these policies. how to land these policies —

develop that thought for us. because we have been told that kwasi kwarteng and liz truss are coming from a very strong ideological position in terms of tax cuts, tax cuts, more tax cuts, as a way to stimulate growth. but given the conditions of the global economy at the moment, in your opinion, was it the right time to introduce tax cuts at these levels? so, look, under some conditions tax cuts can stimulate growth but it�*s not under these conditions. the problem for the prime minister and the chancellor of the exchequer is that you don�*t govern the economy by shock tactics. you govern the economy by showing investors, by showing people in britain that are trying to buy houses that you have a stable framework. investors will not come and build great businesses in britain because of a tax cut which may or may not last. investors will come and invest in britain if they

think, if they know the government is a good partner that will provide a stable environment of policies. it is very hard to make great big investment decisions if you are not sure whether policies will radically change tomorrow or not. so by surprising the markets and by surprising investors with this rather sudden announcement, you know, the government have unfortunately done the opposite to that which they are trying, which is to try and encourage investment. i�*m joined now by chris beauchamp, the chief market analyst at financial services company ig. thank you very much for your time today, chris. first of all, before we get into a bit more detail, perhaps you could, for our viewers can explain the importance of the role of the imf and why should we be concerned about this warning from the international monetary fund about what the uk government announced on friday? the about what the uk government announced on friday?— about what the uk government announced on friday? the imf is kind of a regulator. _ announced on friday? the imf is kind of a regulator. if _ announced on friday? the imf is kind of a regulator, if you _ announced on friday? the imf is kind

of a regulator, if you like, _ announced on friday? the imf is kind of a regulator, if you like, or - announced on friday? the imf is kind of a regulator, if you like, or an - of a regulator, if you like, or an overseerfor of a regulator, if you like, or an overseer for economies around the globe. we are mostly used to seeing them intervening in developing economies where finances are more delicate, where the government is more precarious, if you like and while they do comment on economies like the uk and have done indeed only about five or six years ago, there is certainly an element of surprise here. the imf is there to step in when needed to help shore up economies, it did happen with the uk in the 19705. its economie5, it did happen with the uk in the 19705. its role as an international body is there to provide the kind of overarching view that you might not get from individual governments and provide something that gives them a degree of stability if that�*s needed during times of crisis. [30 of stability if that's needed during times of crisis.— times of crisis. do you think the government _ times of crisis. do you think the government should _ times of crisis. do you think the government should respond - times of crisis. do you think the - government should respond formally to what the imf has said? we heard a clip from the conservative mpjohn redwood a little earlier, obviously ideological quite closely allied to liz tru55, and kwasi kwarteng in terms of economics. and he was saying there does not need to be a

response. saying there does not need to be a resonse. ., ., saying there does not need to be a resonse. ., . , a ._ response. you are stuck either way, if ou response. you are stuck either way, if you don't — response. you are stuck either way, if you don't issue _ response. you are stuck either way, if you don't issue a _ response. you are stuck either way, if you don't issue a response - response. you are stuck either way, if you don't issue a response you . if you don�*t issue a response you like you are ignoring them and if you do you may come under fire for reacting too quickly. the government�*s line will be this has only been a few days since the most recent budget, we�*re still working out what we will do next, and they would rather pu5h out what we will do next, and they would rather push on with the plan they have announced rather than to be seen to be tacking too after what has already been a dramatic change in government policy, as we heard from your previous gue5t. in government policy, as we heard from your previous guest. i suspect they will do nothing in terms of response and look to ride out the crisis, and pointed to further measures crisis, and pointed to further measure5 down the line which they will argue will also help to boost the uk economy and provide greater confidence in the pound. hour the uk economy and provide greater confidence in the pound.— the uk economy and provide greater confidence in the pound. how are the markets reacting? _ confidence in the pound. how are the markets reacting? give _ confidence in the pound. how are the markets reacting? give us _ confidence in the pound. how are the markets reacting? give us an - market5 reacting? give us an overview of how the markets are reacting, given that we are being told that they will not be any major news until november. this told that they will not be any ma'or news until november.i told that they will not be any ma'or news until november. this week has been more volatile, _ news until november. this week has been more volatile, the _ news until november. this week has been more volatile, the pound - news until november. this week has been more volatile, the pound has. been more volatile, the pound has dropped to its lowest level in

recorded history against the us dollar come augu5t recorded history against the us dollar come august to the level of parity, ie one pound equals $1 but that was in thin trading on monday morning in the asian se55ion that was in thin trading on monday morning in the asian session and it then rebounded and has edged back a bit this morning but we are still around $1.06 to the pound, so roughly where we were at the end of last week, 5till marking a broader downturn for the pound against the dollar. if you look at borrowing costs in the uk tho5e dollar. if you look at borrowing costs in the uk those have risen and that�*s the most obvious worry and concern, not only are you having to borrow more because of the tax cuts but it will cost more for that borrowing and putting the uk government in a double bind. i think it is really the fact that while the pound might be quite calm at the moment it is the borrowing levels people are concerned about, the cost of the borrowing putting further pre55ure of the borrowing putting further pressure on the government, and if they announce further tax cuts that means intere5t they announce further tax cuts that means interest rates have to rise further and a5 means interest rates have to rise further and as everyone knows with their own borrowing in households that usually co5ts their own borrowing in households that usually costs more as well. hagar that usually costs more as well. how are investors — that usually costs more as well. how are investors likely _ that usually costs more as well. how are investors likely to _ that usually costs more as well. how are investors likely to react to the are inve5tor5 likely to react to the conditions you have just described? i think you will see a greater

uncertainty to a degree about investing in the uk. it has to be said, people said the imf i5 intervening because the uk is heading towards emerging market status with a volatile outlook, it has to be said that there is a lot going for the uk economy in terms of its fiscal deficit, fairly decent growth, 1.5% a year, debt is a long maturity, over a large number of years compared to a lot of other economies. italy with the constitutional problems there, it is not that. but there will be greater uncertainty for investors and that, given the fact they will charge the higher borrowing costs, if they want the government to borrow the5e higher borrowing costs, if they want the government to borrow these large amounts, and use their money. goad amounts, and use their money. good to net amounts, and use their money. good to get your — amounts, and use their money. good to get your thoughts _ amounts, and use their money. good to get your thoughts on _ amounts, and use their money. good to get your thoughts on this today, chris beauchamp, chief market analyst at the financial services company ajayi, thanks again. during my conversation with chris i mentioned the conservative mpjohn redwood who has been giving his assessment of the imf intervention.

-- ig. the imf are coming from the eras of the past which they shared with the world�*s leading central banks. they didn�*t foresee the big inflation which they triggered. they didn�*t have sensible advice in good time to see off the inflation. and now, late in the day when the inflation is very visible for all to see, they are suggesting taking measures to tackle it when the world has moved on. and they should now be warning the world about the coming rece55ion which is in danger of digging in in many leading countries because of the policies being followed and will be the enemy of the future. what should the british government then say to the imf? i don�*t think the british government should say anything to the imf. i don�*t think we want a spat or a dialogue between the british government and the imf. the other thing, i think the imf and other commentators would be well advised to do is to judge the whole policy, because so far we have seen some tax proposals. we have not yet seen a whole series of supply measure5 which will clearly be needed

at the same time as attractive tax packages to make sure there is more investment in more growth investment and more growth in the economy. john redwood. well, let�*s speak to our political correspondent, jonathan blake, he joins us from the labour party conference in liverpool. it is the last day of the conference. hello. the labour leader keir starmer has been reacting to the statement from the international monetary fund. what has he had to say? he monetary fund. what has he had to sa ? . , monetary fund. what has he had to sa ? ., , ., _, , monetary fund. what has he had to sa? , , say? he has of course been reacting, 'ust to say? he has of course been reacting, just to remind _ say? he has of course been reacting, just to remind people _ say? he has of course been reacting, just to remind people what _ say? he has of course been reacting, just to remind people what the - just to remind people what the international monetary fund is, which bailed out the british government back in the 705, what i had to say, it said the measures put forward by liz tru55 and kwasi kwarteng would increase inequality. they have called for a rethink of their measures, including the amount they are willing to borrow in order to fund tax cuts. so it is un5urpri5ing that keir starmer has seized on this. now there is lots of fingers being pointed about who is to blame, a5 fingers being pointed about who is to blame, as we heard from john redwood, close ally to liz tru55 come as you said, he is saying we

don�*t want to dialogue with the international monetary fund. we have had attack5 international monetary fund. we have had attacks on the orthodoxy of the treasury and the money markets from people around the liz tru55 campaign. from labour�*s point of view, where they are pointing the finger, though, is at the new british government, the liz tru55 government. they are effectively 5aying, sure, there are external pre55ure5, 5aying, sure, there are external pressures, cost 5aying, sure, there are external pre55ure5, cost of 5aying, sure, there are external pressures, cost of living cri5i5 fuelled in ukraine and russia�*s action5 fuelled in ukraine and russia�*s actions but they say the government is shooting itself in both feet. this, unlike otherfluctuation5 in this, unlike other fluctuations in the market, is a self—inflicted wound — the market, is a self—inflicted wound. these were the deliberate decisions — wound. these were the deliberate decisions of the government on friday — decisions of the government on friday to— decisions of the government on friday. to have tax cuts for those earning _ friday. to have tax cuts for those earning hundreds of thousands of pounds — it has resulted in prices and mortgages going up. they have lost control of the economy. we understand when international

issues, crises that fluctuations in the market but that is not this case. this is a situation where the government has self—inflicted harm on our economy and people looking at mortgages and _ prices this morning will be worried sick, i think. i would not be surprised if they are not a little bit angry that the government has lost control of the economy, a self—inflicted wound, and they are now picking up the bill. now, there is a big political argument going on here because what keir starmer i5 argument going on here because what keir starmer is seeking to do is to notjust reduce but absolutely demolished the conservatives�* reputation for fiscal responsibility, for being the party mo5t responsibility, for being the party most trusted with the economy. so he really wants to hammer this message home that this isn�*t 5imply really wants to hammer this message home that this isn�*t simply a reaction to what is happening in global markets, but this is a result of government�*s policies, in particular the mini budget, not so many budget that happened on friday. whether he succeeds in that argument of course remains to be seen, whether people are perhaps more forgiving because we have to remember that the pound is down against the dollar, down against the euro, but some other global currencies are also down against the

dollar too. currencies are also down against the dollartoo. he currencies are also down against the dollar too. he is effectively saying that the extra damage inflicted i5 that the extra damage inflicted is entirely the responsibility of the government. i was struck in his interview by the fact that he is sticking to his gun5 interview by the fact that he is sticking to his guns and saying he would try and help with the cost of living for the next six months and also help reorientate the economy by 2030, with more greenjobs, more jobs around the uk that a high skilled and highly paid. but equally, he didn�*t really say what he would do right now, whether it is the government who is to blame for this, or whether it is global factors, or whether in truth it is probably a mixture of both, we still didn�*t hear a short—term plan from keir starmer to deal with those mortgage product5 keir starmer to deal with those mortgage products being withdrawn, intere5t mortgage products being withdrawn, interest rates are likely to rise again and people really feeling on top of the cost of living pressure5 top of the cost of living pressures are greater deal of uncertainty today than perhaps they fell yesterday, and certainly than they felt la5t yesterday, and certainly than they felt last week. es, yesterday, and certainly than they felt last week.— felt last week. a short while ago when i interviewed _ felt last week. a short while ago when i interviewed the - felt last week. a short while ago when i interviewed the leader. felt last week. a short while ago j when i interviewed the leader of felt last week. a short while ago - when i interviewed the leader of the liberal democrats sir ed davey, he asked me where is the chancellor and where is the prime minister? are they hiding? i think probably most

people would say it is a reasonable question why we haven�*t heard the statement, given the fact they must be aware of the concern being felt ijy be aware of the concern being felt by so many people right now. ed by so many people right now. er. davey certainly called for kwasi kwarteng to go, he hasn�*t hung around, he suggested he leaves his job almost as soon as he arrived in it. but i think the calculation for the government quite simply is this, does a statement make things better or does it make it worse? are you going to 5pook the markets and make people feel even more worried if it looks like you are panicking? or do you insist that you are right all along, challenging orthodoxy and you will get growth in the long term and this is a short—term fluctuation, short—term pain for long—term gain? the decision the government has made at the moment is not to try and 5toke the panic, if you like, by getting involved at this stage. what i have said, as you know, is that there will be another statement towards the end of november. if that is brought forward for any reason or if the bank of england intervene for any reason, then that from the

government�*s point of view would be more worrying. for the moment they are keeping their fingers crossed and effectively saying we are not going to do anything which suggests they are concerned. they are going to try and say they are sticking to their plan, they are doubling down and hopefully they can ride out what they would hope our short—term difficulties. they would hope our short-term difficulties.— they would hope our short-term difficulties. ., . ., ., ,, difficulties. 0k, iain watson, thank ou ve difficulties. 0k, iain watson, thank you very much. _ difficulties. 0k, iain watson, thank you very much. at _ difficulties. 0k, iain watson, thank you very much, at the _ difficulties. 0k, iain watson, thank you very much, at the labour - you very much, at the labour conference in liverpool. i�*m joined now by the snp�*5 westminster leader sir ian blackford. hello to you and thank you for your time today. as iain wat5on wa5 time today. as iain wat5on was asking, doe5 time today. as iain wat5on was asking, does a statement make things a5king, does a statement make things worse or make it better? would you like to hear some more detailfrom the government and from the chancellor right now?- the government and from the chancellor right now? what we need to seize parliament _ chancellor right now? what we need to seize parliament coming - chancellor right now? what we need to seize parliament coming back- chancellor right now? what we need to seize parliament coming back and we need to hold the prime minister and the chancellor to account. we are in a real cri5i5. when you look at that statement from the imf la5t at that statement from the imf last night it makes it absolutely crystal clear that they come amongst others, want the government to revisit the proposal is that they have brought

forward. the reason that we are in the mess that we are in is because in the middle of an economic crisis and a cost of living cri5i5, their priority needs to be supporting individuals and businesses that need help, make sure we are driving down inflation, and what the tories have done is come with unfunded tax cuts, thati5 done is come with unfunded tax cuts, that is what has caused the problem is that we now have. so we need to get back to parliament. i don�*t know where the prime minister and chancellor are, they are posted mi55ing, but we need to make sure that parliament is back right now and that we are discussing this and rever5ing what the tories propose la5t rever5ing what the tories propose last week because that is the nub of the problem. we need now to see leadership, and we all need to make sure we are doing ourjob. the har5h sure we are doing ourjob. the harsh reality is, look at what has happened over the last 48 hours, the number of mortgage offers have fallen through the floor. the expectations on ri5e5 are higher than they were, the cost of borrowing has increased. the5e than they were, the cost of borrowing has increased. these are really damaging our terns which are a direct response of what the government did last week. it was an

extraordinary lack of government. sorry to interrupt but this government will not reverse something it announced a few days ago. they would argue, i presume, that leadership in certain circumstances is about deciding on a course of action and holding your nerve. ., ~ , course of action and holding your nerve. ., g ,, nerve. holding nerve? my goodness, the have nerve. holding nerve? my goodness, they have just _ nerve. holding nerve? my goodness, they have just driven _ nerve. holding nerve? my goodness, they have just driven the _ nerve. holding nerve? my goodness, they have just driven the bus - nerve. holding nerve? my goodness, they have just driven the bus off - nerve. holding nerve? my goodness, they have just driven the bus off a i they have just driven the bus off a cliff edge! it was palpable in parliament la5t cliff edge! it was palpable in parliament last week to hear the response even of tory mp5 to what re5pon5e even of tory mp5 to what was being proposed. and i suspect that the government recognise they are in difficulty. my goodne55, we have just got rid of boris are in difficulty. my goodne55, we have just got rid of bori5johnson for very clear reasons and we have ended up with a prime minister and chancellor that have provoked an economic crisis. so parliament needs to stand up. parliament needs to do its to stand up. parliament needs to do it5job, and we need to be to stand up. parliament needs to do its job, and we need to be saying to the prime minister and the chancellor that he ain�*t doing this in our name. i will reflect on the position we are in in scotland because way back at our infra comic referendum in 2014 we would be told

we would be supported by the broad shoulders of the uk, the hasn�*t worked and the pound — dollar rate on the day of the scottish referendum in 2014 was on the day of the scottish referendum in 2014 wa51.64. look at that decline we have seen, that mismanagement of the uk economy. i�*m looking forward to people in scotland being given the opportunity to have their say on their future because quite frankly we don�*t want to be staying in this 5inking because quite frankly we don�*t want to be staying in this sinking ship of uk britannia i5 to be staying in this sinking ship of uk britannia is the uk government makes a mistake after mistake and puts people up—and—down the country put5 people up—and—down the country into real peril with that rise in mortgage costs that�*5 taking place, the rise of borrowing costs for businesses and the responsibility of that lies fairly and 5quarely businesses and the responsibility of that lies fairly and squarely at the door of the prime minister and chancellor. and that�*s why parliament should be back tomorrow and that�*s why parliament needs to be holding that chancellor and this prime minister to account for the mistakes they have made and the pain they are going to be visiting on people. how confident are you that what we are seeing now promotes the case for an independent scotland? what if the government�*s plans work

out, this bold plan they talk about? does that then dimini5h out, this bold plan they talk about? does that then diminish the case for an independent scotland? there does that then diminish the case for an independent scotland?— does that then diminish the case for an independent scotland? there is no ruestion of an independent scotland? there is no question of the _ an independent scotland? there is no question of the government's - an independent scotland? there is no question of the government's plan . question of the government�*s plan working out. they haveju5t question of the government�*s plan working out. they have just cra5hed working out. they have just crashed the financial markets. they have sent the pound tumbling, driven bond yields up, the cost of borrowing has gone up and the background of this has been the mismanagement of the energy crisis. the energy market in the uk doe5 energy crisis. the energy market in the uk does not work. if i say to you in scotland 14% of our electricity come5 you in scotland 14% of our electricity comes from gas and get electricity comes from gas and get electricity pricing has driven up the wholesale gas prices, we shouldn�*t be in this situation —— i5 shouldn�*t be in this situation —— is driven off the gas price. we should be investing in yourself and in renewable5. we need to get back to the opportunities that being in the european union gives us and it means we have to become independent. food rices auoin we have to become independent. food prices going up. _ we have to become independent. food prices going up, energy prices going up, just rate5 going up, inflation going up, what do you think needs to

be done to bring some stability to the situation?— the situation? what we should be doinu is a the situation? what we should be doing is a number— the situation? what we should be doing is a number of— the situation? what we should be doing is a number of things. - the situation? what we should be doing is a number of things. first| doing is a number of things. first we should reverse the5e doing is a number of things. first we should reverse these proposed tax cuts, the5e unfunded tax cuts. what we need to do is to make sure that we need to do is to make sure that we get consumers, families, busine55e5 through the crisis over the winter. so in this case what we should be doing is freezing energy prices at the april level, £2000. the har5h prices at the april level, £2000. the harsh reality is even with the cap the government is proposing, that electricity prices will have doubled, so we need to make sure we get people through this winter. yes of course, we need to create the circumstances for economic growth, we need to make sure that people will want to come and invest. but the problem we have now got, to some extent the uk is less investable thanit extent the uk is less investable than it was before last week. there is a risk premium in investing in the uk and the problems for that lie at the door of the government. we need to create stability, we need to create the circumstances for people who want to come here and invest and that means this government has got to change tack. so that means this government has got to change tack-— to change tack. so ian blackford, thank ou to change tack. so ian blackford, thank you very — to change tack. so ian blackford, thank you very much _ to change tack. so ian blackford, thank you very much for - to change tack. so ian blackford,

thank you very much for your - to change tack. so ian blackford,| thank you very much for your time today, the snp�*5 westminster leader, 5o today, the snp�*5 westminster leader, so ian blackford. —— i5 today, the snp�*5 westminster leader, so ian blackford. —— is so ian blackford. some breaking line5 blackford. some breaking lines to bring you, we�*re from south korea that north korea has fired a missile off the east coast. it could be a ballistic missile, says the japanese mi55ile, says the japanese coastguard. more details on that story at the moment, the5e coastguard. more details on that story at the moment, these lines coming via the reuters news agency, south korea saying north korea has fired a missile. the japanese coastguard also saying north korea has fired a missile, what could be a ballistic missile according to the japanese coastguard. any developments we will of course bring you right up to date with those. mortgage lender5 you right up to date with those. mortgage lenders have been withdrawn offers after the market turmoil sparked fears of soaring intere5t sparked fears of soaring interest rates. hsbc, santander, and virgin money are among those 5u5pending mortgage offers — and there are concerns higher rates could cause significant damage to the housing market.

let�*s talk to richard donnell, research and insight director at zoopla, the real estate company. thank you for your time today, richard. i was looking back at zoopla�*s reaction to the announcements on stamp duty on friday, you thought there might be some positives in that for people 5ome positives in that for people trying to get on the housing market. the property ladder, the housing ladder. but have those been cancelled out now by the increasing mortgage rates? then;r cancelled out now by the increasing mortgage rates?— cancelled out now by the increasing mortgage rates? they have to a large decree. i mortgage rates? they have to a large degree- ithink— mortgage rates? they have to a large degree. i think any _ mortgage rates? they have to a large degree. i think any removal _ mortgage rates? they have to a large degree. i think any removal of - degree. i think any removal of barriers to movements like stamp duty would be welcome, that would have provided a boost to england, northern england and first and buys in the south of england but mortgage rates heading towards 5% and rate5 heading towards 5% and potentially even higher over the course of this year is going to deal quite a big hit to buying power and that will probably offset 5ome quite a big hit to buying power and that will probably offset some of the games that we saw from the

removal of stamp duty. —— 5ome the games that we saw from the removal of stamp duty. —— some of the gains. i removal of stamp duty. -- some of the rains. ., ., removal of stamp duty. -- some of the gains-— the gains. i will ask you to give our viewers _ the gains. i will ask you to give our viewers some _ the gains. i will ask you to give our viewers some advice - the gains. i will ask you to give our viewers some advice on - the gains. i will ask you to give i our viewers some advice on this. the gains. i will ask you to give - our viewers some advice on this. one of our viewers, gareth white, so we are currently through halfway through a fixed mortgage on a flat. he said he was hoping to move up the ladder. the government�*s measure5 ladder. the government�*s measures are possibly going to kibo5h that with everything going up and i don�*t think we can move. very angry, says gareth. what would you say to somebody in his position? halfway through a two year fixed mortgage. at least he has some certainty for the next year, but obviously it limits his plans to move up the limit5 his plans to move up the property ladder. it limits his plans to move up the property ladder-— limits his plans to move up the property ladder. it does indeed add this increase _ property ladder. it does indeed add this increase in _ property ladder. it does indeed add this increase in mortgage _ property ladder. it does indeed add this increase in mortgage rates - property ladder. it does indeed add this increase in mortgage rates is l this increase in mortgage rates is going to deliver a 25—30% hit to people wa5n�*t buying power, so for people wa5n�*t buying power, so for people who already have a home and looking for their next move, higher mortgage rates will limit what they can borrow. the key thing we have to remember is that rates have 5piked higher very quickly in the last month, it has almost been an unprecedented 5hift

month, it has almost been an unprecedented shift in borrowing costs. thing5 unprecedented shift in borrowing costs. things can change very fast co5ts. things can change very fast and i think if you have two years left go it is probably best to bide your time, you should be chatting to your time, you should be chatting to your lender with maybe a year to go. thing5 your lender with maybe a year to go. things can change quickly. i doubt people think that rates are going to stay at these levels right the way through 2023, so i think for people with that amount of time to run i would bide your time and plan the next move. d0 would bide your time and plan the next move-— would bide your time and plan the next move. , ., ~ ., ., next move. do you think we are going to see more — next move. do you think we are going to see more mortgage _ next move. do you think we are going to see more mortgage deals - next move. do you think we are going to see more mortgage deals coming l to see more mortgage deal5 coming back into the market once the lenders have had time to think about what is going on and to try and plan? of course there is lots of uncertainty, so how do they plan for that? it uncertainty, so how do they plan for that? , ., ., . ., uncertainty, so how do they plan for that? ,., ., . ., , , that? it is a real challenge because the cost of — that? it is a real challenge because the cost of borrowing _ that? it is a real challenge because the cost of borrowing has _ that? it is a real challenge because the cost of borrowing has gone - that? it is a real challenge because the cost of borrowing has gone up. that? it is a real challenge because i the cost of borrowing has gone up so fast, bank5 the cost of borrowing has gone up so fast, banks have had to pull 5ome deal5. there are still mortgage is available out there. how do we price mortgages? what are our to lending to new people? there is mortgage finance out there. i think there is a temporary 5hift finance out there. i think there is a temporary shift in the market. i think deal5 will come back. but the big question is, where our mortgage rates going to settle down? about

rate5 going to settle down? about a month ago it was around 4%, twice what it was at the beginning of the year and i5 what it was at the beginning of the year and is now looking like 5%. the big question is, could it be even higher than that? lender5 are just looking at getting some pricing they could offer into the market because buying a property, you might buy a property in a month or within six weeks, but then it takes another three months to complete. lender5 are looking for a bit more stability in the market before they come out with a whole new range of offers for borrowers. �* ., with a whole new range of offers for borrowers. . ., , ., , ., borrowers. and for people who already own — borrowers. and for people who already own a _ borrowers. and for people who already own a property - borrowers. and for people who already own a property who - borrowers. and for people who | already own a property who are paying a mortgage on a property, do you think we are going to see significant rate5 you think we are going to see significant rates of negative equity? significant rates of negative eaui ? ., ~' , , significant rates of negative e. ui ? ., 4' , , ., equity? one of the key themes of the housin: equity? one of the key themes of the housing market _ equity? one of the key themes of the housing market in _ equity? one of the key themes of the housing market in the _ equity? one of the key themes of the housing market in the last _ equity? one of the key themes of the housing market in the last few - equity? one of the key themes of the housing market in the last few years. housing market in the last few years has been that house prices have gone up has been that house prices have gone up but it hasn�*t been people stretching their incomes or taking lots of high loan to value mortgages, le55 lots of high loan to value mortgages, less than 5% of mortgages in the last five years are higher than 90% loan to value, so even if values fell a bit negative equity

will not be a feature of the market moving forward, but what people really want is more certainty, we want to see people move in the market and we want to see transactions continue because that supports the economy. i think we just need to get through this period of uncertainty, but thoughts of returning to negative equity in the past are probably wide of the mark. and just to recap on key advice, whether somebody is trying to get on the housing ladderfor the first time, is already in ownership of a flat or a house but trying to move up flat or a house but trying to move up the ladder, or perhaps 5omeone flat or a house but trying to move up the ladder, or perhaps someone is further up the ladder but is worried about negative equity, what is your advice for all of those types of people? j advice for all of those types of eo - le? ~ advice for all of those types of neale? ~ , advice for all of those types of --eole? ~ , ., ., ., people? i think people have got to take advice — people? i think people have got to take advice from _ people? i think people have got to take advice from an _ people? i think people have got to take advice from an agent - people? i think people have got to take advice from an agent and - people? i think people have got to| take advice from an agent and what the value of a home is worth today, who is in the market to buy it and who is in the market to buy it and who is in the market to buy it and who is likely to be in the market to buy it in the coming weeks, talk to your mortgage broker if you have a mortgage and what deal5 your mortgage broker if you have a mortgage and what deals are available and their advice on how to get the best rate, and then for a lot of people is about thinking

about where you are going to move next, what does the current value of your home and unlock for your next move and factor in whether you need to put down more equity and whether thati5 to put down more equity and whether that is even an option to you because that�*s a way to offset higher mortgage rates. butju5t think and plan ahead, speak to your agent and broker and plan that move because some of this volatility might be 5hort—term, because some of this volatility might be short—term, and things could clear up in the next few weeks. . ., ., ,, ,., weeks. richard donnell, thank you, of @annitabbc. — weeks. richard donnell, thank you, of @annitabbc. the _ weeks. richard donnell, thank you, of @annitabbc. the japanese - weeks. richard donnell, thank you, of @annitabbc. the japanese and l of @annitabbc. the japanese and south korean coastguard has said north korea has fired a missile off the east coast, say south korean 5ource5, the east coast, say south korean sources, the japanese coastguard saying that north korea has fired what could be a ballistic missile. a bit more detail is that the projectile has already fallen, that�*5 coming from the japanese

coastguard. they say it is believed to be a ballistic missile and this projectile has already fallen. a tiny bit more detail and we are keeping a close watch on the situation. cuba is completely without power after hurricane ian pummelled the western end of the island. categori5ed a5 category 4, meaning "extremely dangerous", the hurricane has wind speeds of up to 195 kilometres an hour. it hit the island, killing at least two people. after leaving cuba, the hurricane has been gathering force in the south—eastern gulf of mexico. it is now bearing down on the us state of florida. the tampa bay area could receive its first direct hit from a hurricane since 1921. our correspondent, azadeh moshiri, is there. they�*d been warned that this could be a history—making storm — one that could cause life—threatening 5urge5. and with that warning came mandatory evacuation orders for millions acro55 florida�*s west coast.

when you look at storm surge of this nature, that is a very life—threatening hazard, when you�*re talking about ten feet, 12 feet of storm surge, which you could see in certain parts of this when it makes landfall. the governor has deployed thousands of national guard troop5, and emergency services have been distributing things like sandbags to protect from flooding, and filled trailer5 full of food and water. but people are also taking matters into their own hands, boarding up shops and homes, and stocking up on household e55entials as well as petrol. for an area like tampa bay — that hasn�*t been hit directly by a storm in more than a century — all these warnings have been taken seriously. when you�*re dealing with the potential for severe flooding, power outages and shortages in things like fuel, it doesn�*t matter where the storm lands or how severe it is — you have to make preparations, especially in a place like tampa bay, where you have buildings that are in low—lying areas and extremely vulnerable. one local in st peter5burg lives

on his boat, but he�*s now forced to leave it behind as he evacuate and seeks shelter.5 it�*s a lot of boats, they�*re packed in pretty tight, and it�*s kind of concerning as to whose boat�*5 going to land where, and just trying to look for somewhere that�*5 higher and drier than this place will be. while predictions are still changing hour by hour on exactly where storm ian will continue to travel, officials are still repeating the same message — escaping the eye of the storm doesn�*t mean you�*re safe. azadeh moshiri, bbc news. denmark, poland and sweden say they believe leaks in two major russian gas pipelines to europe are the result of 5abotage. nord stream one and two, which carry supplies under the baltic sea, are not currently operational, but do still contain gas. seismologists reported underwater blasts before the leaks emerged and ukraine has accused russia of causing the leaks.

authorities in denmark have said it will be �*one or two weeks�* before nord stream leaks can be inspected. for more on this story, let�*5 bring in mike fulwood, who is a senior research fellow at the oxford in5titute for energy studies. it is very rare. within a 17 hour period doesn�*t sound like it could be accidental although in theory it could be. probably 5ome be accidental although in theory it could be. probably some form of 5abotage i5 could be. probably some form of 5abotage is more likely at this stage. sabotage is more likely at this stare. ., . ~' , sabotage is more likely at this stare. ., «g ., sabotage is more likely at this stare. ., ., sabotage is more likely at this stare. ., «g ., ~ stage. how quickly do you think it will be possible _ stage. how quickly do you think it will be possible to _ stage. how quickly do you think it will be possible to inspect - stage. how quickly do you think it will be possible to inspect the - will be possible to inspect the pipeline and when that happens, will

it be pretty obvious whether or not it be pretty obvious whether or not it is sabotage?— it be pretty obvious whether or not it is sabotage? yeah... i heard you sa one it is sabotage? yeah... i heard you say one or — it is sabotage? yeah... i heard you say one or two _ it is sabotage? yeah... i heard you say one or two weeks _ it is sabotage? yeah... i heard you say one or two weeks work - it is sabotage? yeah... i heard you say one or two weeks work in - say one or two weeks work in inspecting it, i imagine they are concerned about the natural gas and methane are still leaking out of the pipe. it is not a particularly deep area. maximum depth of 100 metres in that area. it seems to be less than that, maybe 50 or 60 metres depth, which i imagine is relatively easily in respectable. depending on when they choose to do so, i imagine you would be able to see sort of what has happened and how big the hole is. it has probably broken apart, i would imagine. even if an anchor wa5 straight up cross it it would break the pipe. you could see evidence of what happened to the three sectors of pipeline which have been ruptured. this of pipeline which have been ruptured-— of pipeline which have been rutured. . , ., ruptured. as we mentioned in the introduction. _ ruptured. as we mentioned in the introduction, the _ ruptured. as we mentioned in the introduction, the pipeline - ruptured. as we mentioned in the introduction, the pipeline isn't-

introduction, the pipeline isn�*t operational at the moment, it is not affecting the gas flow. what do you think the motivation for this could be, if it is indeed sabotage? a5 be, if it is indeed sabotage? as many governments believe. i am scratchin: many governments believe. i am scratching my — many governments believe. i am scratching my head _ many governments believe. i am scratching my head on _ many governments believe. i —n scratching my head on the motivation. there has obviously been accusations that russia had done it. it seemed a little odd they would damage their own pipeline when gas wa5n�*t flowing through it and less to sort of send a message that — be careful of your own pipelines because this is what we do to our own. the kremlin accused britain of doing it for some reason to send a false flag. that russia is doing it. fal5e flag. that russia is doing it. it seems a bit bizarre for russia to do that unless it is sort of a precursor to eventually they may shut off the flows through ukraine. there is a dim di5pute within —— there is a dispute with ukraine

calling a force majeure on one of the pipeline to ukraine. that is going to arbitration. there is a threat that russia will sanction the ukrainian government, which means ga5 ukrainian government, which means gas flows would stop. it could be something else, a distraction. inaudible fmq. —— thank you. ukrainian forces have successfully retaken large parts of their territory in the east, but their progress in the southern regions of kherson and zaporizhzhia has been far more limited. both sides in the south come under regular fire as they heavily rely on artillery to push forward. abdujalil abdura5ulov reports from ukrainian front line po5ition5 in the kherson region. distant thuds. thi5 peaceful view is deceptive. the front line is less than two kilometres away. distant thuds. "this is our artillery firing," a deputy commander of a regiment explains.

his unit is at the forefront of ukrainian troop5 near kherson, and although the advancement of their forces in the south is slow, the situation here has changed significantly. translation: a month ago, - the russians were hammering here. now it�*s much easier because long—range rocket launcher5 are working. russian ammunition depot5 get destroyed, their supply route5 get hit, and now they feel the shortage of ammunition. and at this stage, we are trying to push them back. and they�*re 5lowly doing that. ukrainian troop5 took back this position just a week ago, and now are digging in and fortifying it. engine roars. without fighterjets, it is hard for the ukrainians to advance. but air support is still rare... ..5o big guns continue to play a key role in this war.

translation: right now, - it's artillery that gets more work. we are regularly destroying enemy�*s firing po5itions. sometimes they target our infantry from armoured vehicles. we immediately respond and eliminate that threat. this is a 5oviet self—propelled artillery gvozdika. its life cycle ended long ago, but the ukrainian army have little choice but to use every weapon they have. the gunners receive an instruction to destroy a russian mortar installation. translation: here, in the firing | position, it's all about geometry - angles and distances. let�*s go back! three rounds, and we�*re out of here. the soldiers just finished firing, and now we need to get out from that area as quickly as possible, because the russian forces may be able to identify the exact location where the firing came from,

and may target that place, as well. they have avoided return fire, and got back to the base safely. theirjob is done — but the mission is not over. abdujalil abdura5ulov, bbc news, kherson region. food inflation has hit its highest rate on record according to the british retail con5ortium. inflation is the rate at which prices are rising — the increasing cost of food has largely been driven by the war in ukraine — which continues to push up the price of animal feed, fertiliser and vegetable oil. figure5 5how shoppers are now paying 10.6% more than they were a year ago, that�*s up from 9.3% in august. fre5h food products are a record 12.1% higher than last year — this was up from 10.5% in august. overall, shop price inflation rose to 5.7% in september.

and non—food inflation rose to 3.3% — largely driven by heavier hardware and other products hit by rising transport costs. our business correspondent, mark ashdown, gave us this update. the big aim of these policies from the government of course is to bring down inflation. this is certainly unwelcome new5. it�*s a snapshot, a monthly snapshot of how prices are going up and prices do drive inflation. in the monthly survey it attracted changes in prices for 500 everyday items, so in non—food we have seen diy, gardening and hardware, big increa5e5 mainly due to transport costs due to the war in ukraine. food is the big driver, prices rose 1% in the month alone, 11% higher than a year ago. these are lower estimate5 than the official figures from the office for national statistics but it is a sign of the cost pressures on retailer5, they are not letting up, and we could see prices keep going up and up. this comes off the back of mortgages yesterday,

we saw lots of lenders pulling rates, uncertain where the bank is going and how quickly with interest rate rises. they have been pulling their products left, right and centre. don�*t forget energy bills will be going up on saturday at the start of october. yes the government stepped in to shore things up, they put the cap in now, so the average bill payer will not pay any more than £2,500 but still people will see a hefty rise from what they pay at the moment. of course, a £66 or so a month payment back to everyone. from octoberfor six months. it is small, though. pretty relentle55 pressure on household finances. what are the next moves? as you had, sentiment is a big thing, especially with the markets, so could the government or the bank of england at least say something may be to try and steady nerves, at least show they are working on some kind of concerted effort to push back at the criticism from the imf? i suspect we will not see any real action. that�*s what will really calm the markets. the bank said it will not raise rates again until it meets

in november and the government said we will get a full budget at the end of november. right now, the markets are down again, the pound fairly 5teady but already at record low5. the ftse is down 1.7% today. the ftse 250, probably more important with more domestic companies in it, down even further. market5 don�*t like 5urpri5e5. as you heard, they don�*t like uncertainty and i�*m afraid at the moment that�*s the one thing that is pretty certain. kri5han shah is an economist at the resolution foundation, an independent think—tank focused on improving the living standards of those on low—to—middle income5. thank you very much for your time today. more pressure on people�*s pockets, food prices going up in the general rate of shock inflation going up as well and interest rates going up as well and interest rates going up. no surprise after friday�*5 statement from the government that mortgage providers have been pulling some products. they have learned le55on5 some products. they have learned lessons from the last housing

crisis. do you think the situation cri5i5. do you think the situation will stabili5e in the coming days? i will stabilise in the coming days? i would say that the reason mortgage providers are removing product5 would say that the reason mortgage providers are removing products from the market at the minute is largely due to the extreme volatility we had seen since friday�*5 announcement. what we saw on friday was £45 billion of tax cuts. that has caused market5 billion of tax cuts. that has caused markets to react, seeing borrowing increasing in the medium term has led to yields ri5ing which increases the costs on bank5 led to yields ri5ing which increases the costs on banks to provide debt stop in particular, looking over the 2-3 stop in particular, looking over the 2—3 year period we are seeing the expectations for the bank of england have now ri5en. we are seeing intere5t have now ri5en. we are seeing interest rates reaching around the 6% mark. thi5 extreme volatility has meant that a lot of the products which existed on the market were no longer profitable in current term5. longer profitable in current terms. a lot of banks are using this opportunity to reach ren5ch and re—optimise and understand what the

correct rate5 re—optimise and understand what the correct rates to be offering would be. —— re—trench and re—optimise. new products should return to market. after this period. but what it means for borrowers i5 market. after this period. but what it means for borrowers is different. with it means for borrowers is different. with rates substantially higher, new house buyer5 with rates substantially higher, new house buyers are going to face higher monthly repayments. and with bank affordability criteria here meaning that they will look for a certain amount of coverage in people�*s monthly earning5 certain amount of coverage in people�*s monthly earnings to cover the repayments that they face, these higher rates mean that it is substantially less likely that first—time buyers will have access to mortgage debt. first-time buyers will have access to mortgage debt.— first-time buyers will have access to mortgage debt. yes, that decision to mortgage debt. yes, that decision to actually buy _ to mortgage debt. yes, that decision to actually buy your _ to mortgage debt. yes, that decision to actually buy your first _ to mortgage debt. yes, that decision to actually buy your first house - to mortgage debt. yes, that decision to actually buy your first house or - to actually buy your first house or flat or the decision about whether you think you can actually afford to continue with a mortgage, on an existing flat or house, that�*5 continue with a mortgage, on an existing flat or house, that�*s going to be something that people are weighing up very carefully. do you think we are going to see some support for lender5... for lenders,

support for lenders. .. for lenders, from lender5 support for lender5... for lenders, from lender5 for borrowers and more flexible term5 from lender5 for borrowers and more flexible terms as we go into a period of uncertainty?- flexible terms as we go into a period of uncertainty? yes, as you sa , the period of uncertainty? yes, as you say. they will _ period of uncertainty? yes, as you say. they will be — period of uncertainty? yes, as you say, they will be some _ period of uncertainty? yes, as you say, they will be some substantialj say, they will be some substantial increa5e5 say, they will be some substantial increases in monthly repayments. about 1.8 million households are going to be coming off fixed term mortgages over the next year. this is the point at which rate5 mortgages over the next year. this is the point at which rates will be the highest. they will be refinancing into quite expensive deal5. what we saw during the covid cri5i5 deal5. what we saw during the covid crisis was lender5 providing or asked to provide and also providing mortgage holiday5. the5e asked to provide and also providing mortgage holiday5. these were contracts that allowed people to reduce or not pay back their monthly payments on schedule without impacting their credit score. this wasn�*t used substantially during the financial crisis. but it seems likely that given the big wave of

refinancing coming and given the large increases that we are going to see, we have calculated that on average more courage will see £1000 more on their monthly repayments —— average mortgage. more on their monthly repayments -- average mortgage-— more on their monthly repayments -- l average mortgage._ yeah. average mortgage. £1000 more? yeah. over the course — average mortgage. £1000 more? yeah. over the course of _ average mortgage. £1000 more? yeah. over the course of the _ average mortgage. £1000 more? yeah. over the course of the year, _ average mortgage. £1000 more? yeah. over the course of the year, the - over the course of the year, the average person who has a mortgage will get a bill which is £1000 higher as a result ofjust the changes this week. there will be lender5 thinking about the most effective way to try and support borrower5 without causing a big, big ri5e borrower5 without causing a big, big rise in arrears or costs. borrowers without causing a big, big rise in arrears or costs.— rise in arrears or costs. briefly, krishnan. _ rise in arrears or costs. briefly, krishnan, sometimes _ rise in arrears or costs. briefly, krishnan, sometimes we - rise in arrears or costs. briefly, krishnan, sometimes we hear. rise in arrears or costs. briefly, | krishnan, sometimes we hear a discussion about needing to be a correction of house prices, a correction of house prices, a correction in the property market to allow more people to afford to get on the property ladder. will there

be a reduction in prices and will it be a reduction in prices and will it be anything in the order to allow more people to get on the ladder because of the interest rate rises? probably they will cancel one another out.— probably they will cancel one another out. probably they will cancel one anotherout. , , , ., another out. exactly. it seems that most forecasters _ another out. exactly. it seems that most forecasters agree _ another out. exactly. it seems that most forecasters agree that - another out. exactly. it seems that most forecasters agree that prices | mo5t forecasters agree that prices should come down. and this will be driven largely more difficult to come by. whether this is really the type of correction we want to see is not at all clear. what is more important is seeing how prices fall, relative to the amount that people can borrow. a5 the amount that people can borrow. as a first—time buyer, significant numbers are relying, for a large majority of the asking price as they are offering, on mortgage financing. if this is no longer available, if prices come down, it won�*t necessarily help first—time buyers in the way we might expect. krishnan, thank you very much for

your thoughts come from the resolution foundation. staying on the theme of mortgages... thi5 this is from our personal finance correspondent. he says... the withdrawal of mortgage product5 hit unprecedented levels overnight, according to analysts. moneyfact5, a financial information service, said that 935 mortgage products were taken off the shelf compared with a day earlier. it said that was the biggest overnight drop it has ever recorded. it was double the previous biggest drop, which occurred during covid. a total of 2,661 mortgage products are still available — but that is half the number that were on sale at the start of december when interest rates started to rise. the headline from all of this is that 935 mortgage product5 the headline from all of this is that 935 mortgage products were taken off the shelf overnight, according to analysts, the biggest

overnight drop it has ever recorded. in response to the government�*s announcements on friday. the uncertainty that has caused. islamic group popular front of india or pfi has been banned for five years, accused of being involved in terrorist activities. the government�*s decision comes as part of a crackdown against the group, including arrests of many of its leaders and raids on its offices. the pfi has rejected the allegations against it. here�*s our south asia correspondent, yogita limaye. the ban came in overnight and the government has accused the pfi of engaging in terrorist activities, terrorfinancing, targeted killings. it has also accused it of having links to global terror group5, including islamic state. we haven�*t had a reaction from pfi after the ban came into effect, and something that was seen

as coming because in the past few days we have had arrests of schools of pf! leaders, there have been raid5 across the country at offices of the pfi. so late last night they had to put out a statement. this is a line they have always maintained because these are charges the government has repeatedly made against them. they said there is no proof, these allegations against them are completely baseless. they are saying that this is a witch hunt. they are an islamic group. they have said that this is a witch hunt by india�*s hindu nationalist government against dissenting voices. the pfi, just to give you a background, have been a part of protests against the 2019 citizenship law which many in this country see as discriminatory against muslims. they have also been engaged in protests demanding the right for female muslim students to wear the hijab or headscarf in school. it is a controversial issue in india and at the moment is at the centre of a court battle. some of the protests that they have engaged in have turned violent. about ten or 12 years ago there were members of the pfi who attacked a christian professor, saying that what he had

said was blasphemous. while the pfi has publicly distanced itself from some of these activities, when you talk to people, particularly in the southern states where it originally came into being, now they have followers in many parts of india, they are widely seen as a hardline islamic organisation. brazilians are voting this sunday in a tight presidential election — as many struggle with the cost of living crisis. celebrated as heroes during the pandemic, many food delivery riders in brazil now say they�*re on the brink of starvation. agustina latourrette, has been speaking to drivers sleeping on the streets of sao paulo. translation: the cost of living has increased. | i had never starved before the pandemic, now i do. luciano has been a delivery rider in

sao paulo for more than ten years. but since the pandemic eased, he says he now earns a quarter of what he used to. translation: it is an invisible profession, no-one knows- what we suffer on the streets. despite working an extra four hours every day, soaring inflation rates mean luciano is having to resort to extreme measures. instead of going home at the end of his shift, he sleeps here on the street. translation: sleeping on the street is sleeping with fate. _ even the dogs wee on us. i have been robbed, shot three times. all this to save an extra $3 a day. translation: my biggest cost is my commute to work, - so i either sleep on the street to save money or i starve. the delivery apps have reduced our fees. some deliveries pay only 4.50 reais.

4.50 reais — that�*s less than a dollar. the delivery apps deny reducing the drivers�* fees but for luciano, the daily struggle is evident. every day, luciano queues for hours at this charity soup kitchen. despite being brazil�*s richest city, homelessness has increased by 30% in the last year in sao paulo. translation: so many - families have started coming because they were unable to pay for their rent. we also have people who, in order to save money commuting, are also sleeping on the streets. according to brazilian ngo, almost 60% of brazil�*s population, that is 125 million people, are now unable to get three square meals a day. but in the throes of an election, brazil�*s cost of living crisis has become politicised by both sides.

president bolsonaro has recently launched a cap on fuel. translation: yes, this helps, but the fuel cap will _ only last until the end of this political moment. it is governmental marketing to win over my vote and yours. luciano�*s motivation to survive is all for his son, who lives 3,000 kilometres away, with his mother. translation: here's rafazinho. i haven�*t seen him in years. when i speak about my son, i get emotional. so, luciano carries on, driving all day and taking his chances on the street. bbc news, agustina latourrette.

you are watching bbc news. hello, again. it�*s another day of sunshine and showers, but the showers less frequent and less widespread than there were yesterday. than they were yesterday. there�*s more of a northerly component to the wind. the wind�*s not as strong, but it will still blow in some showers, particularly along the coast. this weather front clearing and we�*ve got another weather front coming in across eastern scotland and northeast england, bringing in some rain and stronger winds here. but in between all the showers and that rain, we are looking at a largely dry day for most of us with some sunny spells and temperatures, 12 or 13 in the far north, 14 or 15 across central parts of the uk, up to about 16 or 17 as we push further south. through this evening and overnight, this same weatherfront is going to be pushing steadily southwards and westwards, taking its cloud in its rain with it.

there will be a few showers left behind it and more cloud than we saw last night. so it�*s not going to be as cold tonight for most of us this coming night. tomorrow, though, we are going to start with this line of rain. it�*s turning increasingly showery and what it�*s going to do is push south into the channel islands before clearing. we�*ve got brisk winds coming in off the north sea, so that will blow in some showers and a lot of dry weather once again tomorrow. a few showers knocking around in scotland and northern ireland, but they�*ll be the exception rather than the rule. and with lighter wins and higher temperatures, it won�*t feel as cool as it has done. temperatures by now up to about 17 degrees. but then it�*s all change, because thursday into friday, you can see this area of low pressure with its fronts coming ourway, bringing wet and windy conditions. so we start off with some mist and fog across parts of england and wales. some of that will be dense, the cloud builds and then the rain already in scotland and northern ireland pushes steadily southwards and eastwards. the green is telling

you that it is going to be heavy rain in places and you can see from these figures in the black circles we�*re looking at gusty winds. around some of the coasts, we�*re be looking at gusty gale force. temperatures fairly academic in amongst all of this, but we�*re looking roughly 12 to about 17 degrees. that system moves away, but the front in the south could well bring some rain on saturday into southern areas. but that does clear. and then on sunday, this ridge builds up. still going to be windy on sunday, but it looks quieter. so we�*ve got the rain in the south during the course of saturday. blustery showers, but something drier on sunday.

this is bbc news. the headlines at 11... one of the world�*s most important financial institutions, the international monetary fund, criticises the government�*s tax cuts — and calls on ministers to �*re—evaluate�* their plans. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries. this, unlike other fluctuations in the market, is a self—inflicted wound. these were the deliberate decisions of the government on friday. the withdrawal of mortgage products hit unprecedented levels overnight, according to analysts. moneyfacts, a financial information service, said that was the biggest overnight drop it has ever recorded. price rises in the shops have hit another record high. figures show annual shop inflation

accelerated to 5.7% in september. cuba is completely without power after hurricane ian has struck the western end of the island. two people are reported dead. florida now braces itself for the category three hurricane, inducing life—threatening winds, floods and tidal surges. leaders of several european countries claim that rare gas leaks that have hit the nordstream pipelines were not accidents but �*deliberate acts�*. gas flows in the nordstream 1 pipeline were stopped in august. good morning and welcome to the bbc

news channel. the international monetary fund — which works to promote stability in the global economy — has criticised the british government�*s plans for tax cuts, warning the measures are likely to fuel the cost—of—living crisis. in an unusually outspoken statement — the imf said the uk�*s developments were being closely monitered, and said untargeted fiscal packages were not recommended during a period of high inflation. it warned the government it�*s mini—budget risked increasing inequality. the white house also criticised the government�*s policy — saying it was important to focus on "fiscal prudence, and fiscal discipline". the pound dipped in asian trade this morning — standing at around $1.06. the imf said that the government�*s fiscal plan in late november would give it an opportunity to �*re—evaluate�* tax measures — "especially those that benefit high income earners." the uk government proposals would scrap the top rate of income tax and end a cap on bankers�* bonuses, among other measures. the announcement on friday sparked financial turmoil, as investors dumped the pound and uk debt. on monday the pound fell to record

lows against the dollar. some of the country�*s biggest lenders have suspended mortgage deals amid the uncertainty. the treasury said, "we are focused on growing the economy to raise living standards for everyone." adnan mazarei is a former deputy director at the imf. here�*s his reaction on the today programme. the imf doesn�*t make such strong statements about g7 countries. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries. so what is it about the announcements from kwasi kwarteng that has spooked them to make this move? i think they�*re worried that the tax cuts are permanent. they are afraid that the budget financing needs will go up.

they are afraid. and they�*re requiring more borrowing domestically. inflation rising, requiring interest rate increases by the bank of england. and there being a policy conflict between the treasury and the bank of england. at the same time, the united kingdom is running a large current account deficit and relies on foreign financing. our business correspondent marc ashdown is with me. let�*s start with the basics, a bit more about what the imf is and what has this got to do with them? aha, lat has this got to do with them? a lot of --eole has this got to do with them? a lot of people are _ has this got to do with them? int of people are interested in that, it is an agency of the united nations, 190 countries are members and the aim is to ensure global financial security and cooperation. you can also think of it as the world over drop, the lender of last resort, a step in to help countries when they

get in financial difficulties, think striker, pakistan, argentina in recent months. the uk has had one bailout in the past, a lot of people will remember 1976, $4 billion help p"°p up will remember 1976, $4 billion help prop up sterling. they have made comments in the past. the imf commented when george osborne was transferred back into thousand eight and they said he was buying the fire was his policies. this is not the government asking for any kind of bailout or a bailout conversation but clearly the imf without the need to intervene. but clearly the imf without the need to intervene-— to intervene. how significant is an intervention _ to intervene. how significant is an intervention like _ to intervene. how significant is an intervention like this _ to intervene. how significant is an intervention like this for _ to intervene. how significant is an intervention like this for the - to intervene. how significant is an intervention like this for the uk? | intervention like this for the uk? it is rare, more colleagues than mine in the use written our using the phrase unprecedented. humiliating, some call mr saying. it sums up the view across the world about what is going on here. some eyebrows have been raised in major economies like the us and germany. we�*re hearing it was a reluctant intervention but given the reaction

around world i think the imf felt it had no choice. to interpret some of what it said, it talks about the policies and how they risk increasing inequality. it says they do not recommend large and untargeted fiscal packages at this juncture, a comment on the criticism that tax cuts benefit higher earners. and the br hasn�*t stressed tested any of it. a bit like the government and bring in its mass and work and saying this is the answer it has come to an the imf is asking for the working out. finally it says it is important fiscal policy doesn�*t work at cross purposes with monetary policy post fiscal policy, the government, monetary policy the bank of england, the imf re—rhetoric the point that it feels the governor dispersing the exhilarated to try and bring policies to drive growth while at the same time the bank is trying to put the brakes on inflation. trying to put the brakes on inflation-— trying to put the brakes on inflation. ~ ., , inflation. while we have been talkin: inflation. while we have been talking there _ inflation. while we have been talking there has _

inflation. while we have been talking there has been - inflation. while we have been talking there has been a - inflation. while we have been - talking there has been a statement from the bank of england which you won�*t have seen yet, it is talking about the monetary policy side of things, on the 28th, today, the bank of england financial policy committee noted the risk to the uk financial stability from dysfunction in the gilt market, it�*s recommended that action be taken and welcome to the bank�*s plans were temporary and targeted purchases in the gold market on finances the building grounds at the urgent pace but these purchases will be quickly time—limited so that bank is trying to help the government out because the cost of these gilts, the interest rate, the government was to sell the debt. it interest rate, the government was to sell the debt-— sell the debt. it will be a problem, the long-term. — sell the debt. it will be a problem, the long-term, the _ sell the debt. it will be a problem, the long-term, the 205-10 - sell the debt. it will be a problem, the long-term, the 205-10 year i the long—term, the 205—10 year gilts, have gone up to 4%, that is how much confidence there is to lend money to the uk government over a period of time so it is an interesting intervention. the

markets want stability, they don�*t like surprises, there has been some grammarfor some action, and the treasury said the acted with speed to protect households and businesses, these pointless emergency energy policy to have introduced to help it would build and the chancellor will set out his medium—term fiscal plan on november 23. expect further detail on immigration, planning reforms, detailed regulation and city and a tory grandee said it is not fair for the imf to comment on this stuff until they see the full plan. the imf the most crucial part they said was november is an early opportunity this budget, for the government to re—evaluate and provide support that is more targeted to those on lower incomes. i don�*t think we will make any bones about it, it is an astonishing intervention from the imf which demonstrates the concern around the world, what happens here in the uk is really important and the imf at the moment is pretty unconvinced and quite concerned.

thank you. i�*m joined now by andy mayer from the free markets thinktank the institute for economic affairs. thank you forjoining us. last week your chief executive called the fiscal statement from the government refreshing. how refreshing is he finding it this week? he refreshing. how refreshing is he finding it this week?— finding it this week? he is still findin: finding it this week? he is still finding the _ finding it this week? he is still finding the fiscal _ finding it this week? he is still finding the fiscal statement i finding the fiscal statement refreshing but to be clear, let separately couple things, the imf is commenting on unfunded borrowing, the bulk of that is approved preceded the statement with the energy price guaranteed and energy price package that followed, the fiscal statement that will be from future borrowing, taking what would be a £45 billion event to 200—300 point has potentially and the imf is totally right to say to something that causes concern, that is their remit, so we are still looking at the supply side of that in saying

this is a really good idea to get the government out of the way various markets where they are blocking things like housing, investment in new energy supply and industry and getting on with the job of building a plan for growth. the imf intervention is about the picture and the government here has fallen down on the job and they see how they will fund this. hone fallen down on the job and they see how they will fund this.— how they will fund this. how do you think they should _ how they will fund this. how do you think they should fund _ how they will fund this. how do you think they should fund it? - how they will fund this. how do you think they should fund it? as - how they will fund this. how do you think they should fund it? as we i think they should fund it? as we have seen the bank of england is concerned about guiltily make, they are not as attractive as a way of saving government debt because they will cost more for the government in the future. i will cost more for the government in the future. ., �* ~ the future. i don't think the government _ the future. i don't think the government can _ the future. i don't think the government can be - the future. i don't think the government can be entirely the future. i don't think the - government can be entirely blamed for the logical consequence of over a decade of borrowing to deal with crises, so before the financial crisis, debt is a share of gdp, growth of the country was about 50%. the government has been in powerfor 12 years. they can�*t keep blaming the debt that was in place before

then. we have seen them borrow more and more, we have seen the reaction on the markets was not because of what had gone on before last week, it was entirely because of what was a quietening and liz truss... that is 'ust a quietening and liz truss... that isjust wrong- _ a quietening and liz truss... that is just wrong. why _ a quietening and liz truss... that isjust wrong. why did _ a quietening and liz truss... that is just wrong. why did it - a quietening and liz truss... that isjust wrong. why did it happen? wh was isjust wrong. why did it happen? why was a _ isjust wrong. why did it happen? why was a reaction _ isjust wrong. why did it happen? why was a reaction so _ isjust wrong. why did it happen? why was a reaction so immediate j isjust wrong. why did it happen? i why was a reaction so immediate then in response to what they propose last week was yellow that is the way a crisis of confidence works. the market will be stable for a crisis of confidence works. the market will be stable— market will be stable for a very lona market will be stable for a very long time _ market will be stable for a very long time and _ market will be stable for a very long time and at _ market will be stable for a very long time and at some - market will be stable for a very long time and at some point i i market will be stable for a very i long time and at some point i will say they are beginning to doubt you will repay this debt and we are sending your warning signal which is what this market wobble is, that you need to get a grip on the amount of debt you have got and how you fund it. that is a signal being sent to this administration who have added fuel to the fire, i agree with you, but they are not wholly responsible for the massive increase in debt over the last decade. iloathe for the massive increase in debt over the last decade.— for the massive increase in debt over the last decade. who is, then? it is a combination _

over the last decade. who is, then? it is a combination of— over the last decade. who is, then? it is a combination of the _ over the last decade. who is, then? it is a combination of the events i it is a combination of the events that have happened and the decisions that have happened and the decisions that were taken. but that have happened and the decisions that were taken.— that were taken. but they were taken b the that were taken. but they were taken by the conservatives _ that were taken. but they were taken by the conservatives are. _ that were taken. but they were taken by the conservatives are. the - by the conservatives are. the bailout of _ by the conservatives are. the bailout of the _ by the conservatives are. iie: bailout of the bank by the conservatives are. tie: bailout of the bank was by the conservatives are. ti2 bailout of the bank was gordon brown. , , ., , ., , brown. this is always what gets resorted to. _ brown. this is always what gets resorted to, blaming _ brown. this is always what gets resorted to, blaming the - brown. this is always what gets | resorted to, blaming the labour government which hasn�*t been in power since 2010. government which hasn't been in power since 2010.— power since 2010. equal opportunity, i power since 2010. equal opportunity, l blame all the _ power since 2010. equal opportunity, i blame all the governments - power since 2010. equal opportunity, i blame all the governments that i i blame all the governments that have been in power, it is not a partisan point. but have been in power, it is not a partisan point-— partisan point. but the conservatives - partisan point. but the conservatives have i partisan point. but the| conservatives have had partisan point. but the - conservatives have had control partisan point. but the _ conservatives have had control of the economy, they now appear to have lost control of the economy according to some commentators, we can keep harping back to something that happened 12 years ago. you can mention the — that happened 12 years ago. you can mention the fact _ that happened 12 years ago. you can mention the fact that _ that happened 12 years ago. you can mention the fact that those - that happened 12 years ago. you can mention the fact that those events i mention the fact that those events caused a massive increase in national debt and at some point the market will say the debt is too much and that moment appears to be now. but those increases in debt have been wrote about by the policies of successive conservative governments. labour to start, the coalition after

that which was liberal democrat and conservative and then three different flavours of concerta government, and the last one has beenin government, and the last one has been in powerfor government, and the last one has been in power for less government, and the last one has been in powerfor less than government, and the last one has been in power for less than a government, and the last one has been in powerfor less than a month. if you want to be in power you have to take responsibility for the consequences of your decisions. would you agree that it would be wise for parliament to be recalled, so we can actually hear from the prime minister and the chancellor to try and settle matters and count things down?— try and settle matters and count things down? try and settle matters and count thins down? . ., ., . ., things down? what i have chosen to settle and calm _ things down? what i have chosen to settle and calm things _ things down? what i have chosen to settle and calm things down - things down? what i have chosen to settle and calm things down is i settle and calm things down is minimal statements, they�*re waiting for the bank of england who have just announced they made their latest intervention during this show and then we will see the statement on november the 23rd which flushes out we hope how they will fund it but your central point is that government should have been more careful and they should have set out how they will fund this large increase in borrowing. we all agree on that point. i increase in borrowing. we all agree on that point-— on that point. i don't have a view! that is not — on that point. i don't have a view! that is not what _ on that point. i don't have a view! that is not what i _ on that point. i don't have a view! that is not what i am here - on that point. i don't have a view! that is not what i am here for i on that point. i don't have a view! that is not what i am here for a i that is not what i am here for a total step i wouldn�*t presume. the

bank of england is going to buy government bonds to restore orderly market conditions it says. how telling is that about the worry they have at the bank of with? it is telling is that about the worry they have at the bank of with?- have at the bank of with? it is a choice. have at the bank of with? it is a choice- they — have at the bank of with? it is a choice. they can _ have at the bank of with? it is a choice. they can do _ have at the bank of with? it is a choice. they can do that - have at the bank of with? it is a choice. they can do that or- have at the bank of with? it is a choice. they can do that or putl have at the bank of with? it is a l choice. they can do that or put up interest rates. the bank of england has taken a strategy of benign indifference to the rapidly rising inflation we have seen over the last year and our rates are relatively low compared to our international rivals. that is one of the reasons why the currency is coming down. they recognise that they were to introduce... it would cause a great deal of problems for people, particular those who have mortgages. we have seen mortgage deals are just disappearing. people will be stuck with a much higher variable rate or tracker mortgage will go up. having to balance those considerations with

members of the public. i to balance those considerations with members of the public.— members of the public. i agree with ou and members of the public. i agree with you and this — members of the public. i agree with you and this is _ members of the public. i agree with you and this is the _ members of the public. i agree with you and this is the grim _ members of the public. i agree with l you and this is the grim consequence of too much borrowing over a very long period of time. i�*m not seeing a solution is going from the opposition. their plans seem to be remarkably similar to the government�*s on the big part of package. they will be spending more because they need to have new systems like the energy bank for example. systems like the energy bank for examle. . ~ systems like the energy bank for examle. ., ~ i. systems like the energy bank for examle. . ~' ,, ., systems like the energy bank for examle. . ~' ., ., systems like the energy bank for examle. . ~ ., ., , example. thank you for “oining us. let's example. thank you for “oining us. let-s speak— example. thank you for “oining us. let-s speak to t example. thank you for “oining us. let's speak to iain i example. thank you forjoining us. let's speak to iain watson - example. thank you forjoining us. let's speak to iain watson who i example. thank you forjoining us. i let's speak to iain watson who joins let�*s speak to iain watson who joins us from the labour party conference in liverpool. there is a great deal of labour party reaction while this conference is under way. yes. of labour party reaction while this conference is under way.- of labour party reaction while this conference is under way. yes, it is not so much _ conference is under way. yes, it is not so much the _ conference is under way. yes, it is not so much the conference i conference is under way. yes, it is not so much the conference is i conference is under way. yes, it is not so much the conference is a i not so much the conference is a sideshow pot perhaps what they wanted to talk about is getting diverted towards what appears to be a growing crisis elsewhere because there are jitters in the market as

we know, and amongst conservative mp5, as a measure of that it was interesting, talking to labour mp5 some conservatives are voicing concerns with their own party leader and that is something that will be worrying for the government politically. what labour are trying to achieve here is to say let�*s take this moment and see if we cannot just reduce... let�*s see if we can demolish the credibility. one of the things discussed here privately was the issue you were raising in a previous interview, which is should they call for parliament to recall that this stage. the decision taken from these private discussions is that unless

the pound plummets beneath the dollar or unless the monetary policy committee for the back of decides on emergency meeting... it is global factors, the energy price to blame for this, and a new conservative in a straight on. this is a situation where the government has self—inflicted harm. these were the deliberate decisions for the _ these were the deliberate decisions for the government to have tax cuts and it _ for the government to have tax cuts and it has— for the government to have tax cuts and it has resulted in prices and mortgages going up. they have lost control— mortgages going up. they have lost control of— mortgages going up. they have lost control of the economy. we all understand whether international issues _ understand whether international issues and crises that consultations on the _ issues and crises that consultations on the market but that isn't in this case: _ on the market but that isn't in this case, this— on the market but that isn't in this case, this is— on the market but that isn't in this case, this is a situation where the government has self—inflicted harm on our— government has self—inflicted harm on our economy and people will be looking _ on our economy and people will be looking at— on our economy and people will be

looking at their prices this morning will be _ looking at their prices this morning will be worried sick i think. i would not be surprised if they are not a little bit angry that the government has lost control of the economy, a self—inflicted wound, and they are now picking up the bill. keir starmer very much trying to play in the government for this and talking to some labour mp5 here this morning they say they have been contacted here by constituents worried about mortgage rates and these are people who are politically engaged you might have voted conservative in 2019, so they think they see an opportunity in all this but they have got to strike the right tone and some serious about offering an alternative. the difficulty is they are sticking to the conservative plans to reduce income tax next year, conservative plans to reverse national insurance, they are not telling us how this would be paid for and they will only borrow to invest in the long—term but in the short—term these questions are still open so while there criticising the government and

keir starmer yesterday setting out a long—term vision, a greener britain by 2030, but in the short—term whoever is to blame i think labour will still face a question, what would you do differently. the imf would you do differently. the imf would have _ would you do differently. the imf would have similar _ would you do differently. the imf would have similar criticism i would you do differently. the imf would have similar criticism of i would you do differently. the imf| would have similar criticism of the labour party if they can�*t actually explain how they will fund this and we have just seen the bank of england is stepping in with a temporary guilt purchase. of government debt. the temporary guilt purchase. of government debt. temporary guilt purchase. of covernment debt. , ., ., , government debt. the question now is whether things — government debt. the question now is whether things can _ government debt. the question now is whether things can stay _ government debt. the question now is whether things can stay on _ government debt. the question now is whether things can stay on hold i whether things can stay on hold until towards the end of november. we know kwasi kwarteng will give us as a further statement at that point and when he announced that it helped steady some nerves temporarily on the markets but the speculation now is whether this will hold and from the government�*s point of view they are fine to say as little as possible because sometimes to say nothing is the best tactic because if they were to say we are doing this and that, that could speak the

markets even further and make the political decisions for them very much more difficult but i think you are right, in the short—term it does labour some good to say this is a party has said they are economically important, take a look at us as an alternative but there will be more scrutiny between now and that fiscal statement in november about the labour alternative when, if they are not going to raise income tax, if they are not going to raise national insurance, where else would they get their revenue from? lots people tell me plenty of ideas but labour does not want to be seen necessarily as a tax—raising party at this stage, they want to keep the focus on what they want to keep the focus on what they see is the government�*s failures but questions will continue to be asked. failures but questions will continue to be asked-— the bank of england is going to buy some government debt to try and help out with the supply side of things and making sure there is money to pay for some of the tax cuts that

the government wants to be talking about introducing because we are overburdened with debt as a country, the government —— they banking it has said it will buy bonds to restore early market condition to try and counter markets after the pound fell and the cost of government borrowing spiked because of last week�*s apparently mini budget, the bank said the purchases would be carried on whatever scale is necessary to affect this outcome, auctions will take place between now and the 14th of october so there are time limited. the purchases will be unwound in a smooth and orderly fashion once risk and market functioning arejudged fashion once risk and market functioning are judged to have subsided, says the bank. at 11:30pm we will be speaking to sir charlie bean, a former deputy governor of bank of england, interesting to hear his perspective on what is happening on the bankside, the imf in comment

for —— 11:30am. the withdrawal of mortgage products hit unprecedented levels overnight, according to analysts. the financial information service moneyfacts said 935 mortgage products were taken off the shelf compared with a day earlier. it said that was the biggest overnight drop it has ever recorded. more than 2500 products are still available — but that�*s half the number that were on offer last year. food inflation has hit its highest rate on record, according to the british retail consortium. inflation is the rate at which prices are rising. the increasing cost of food has largely been driven by the war in ukraine — which continues to push up the price of animal feed, fertiliser and vegetable oil. figures show shoppers are now paying 10.6% more than they were a year ago — that�*s up from 9.3% in august. fresh food products are a record 12.1% higher than last year — this was up from 10.5% in august. overall shop price inflation rose

to 5.7% in september. and non—food inflation rose to 3.3% — largely driven by heavier hardware and other products hit by rising transport costs. i�*m joined by tom holder from the british retail consortium. give us your prospective on just how significant these increases are. istate significant these increases are. we are not significant these increases are. 2 are not seeing food inflation or inflation on the whole slowdown at all and that will be a real concern for households, particularly as months we will be seeing the rise in energy prices for many households, so things are difficult for households, retailers who face both higher costs and getting squeezed at the other end by lower demand, a difficult time all round with no sign that things are really going to

abate. we have the ongoing war of ukraine pushing up the price of things like fertiliser, oil, vegetable oil as well, directly impacting shelf prices. there was a little bit of good news with the sunshine which helped bring down the price of some fresh fruit, berries and such, but the drought will also have an impact, a longer impact on the harvests for other products, so swings and roundabouts there, a difficult time for retailers and an even harder time for consumers at the moment. it even harder time for consumers at the moment-— the moment. it is all along the su -l the moment. it is all along the supply chain — the moment. it is all along the supply chain with _ the moment. it is all along the supply chain with the - the moment. it is all along the| supply chain with the producers the moment. it is all along the i supply chain with the producers in the first place, they are finding the first place, they are finding the squeeze because the basic resources they need are also going up resources they need are also going up in price, it starts at the very beginning. up in price, it starts at the very beginning-— up in price, it starts at the very beaainnin. ~ , beginning. absolutely. the imported food is more — beginning. absolutely. the imported food is more expensive _ beginning. absolutely. the imported food is more expensive but - beginning. absolutely. the imported food is more expensive but also i beginning. absolutely. the imported food is more expensive but also the | food is more expensive but also the fertiliser for the farms is food is more expensive but also the fertiliserfor the farms is more sponsor, the energy required is more

expensive and that gets passed along to the supermarket, the supermarkets are then forced to try and protect their consumers as best i can but saw that is always going to get passed on, especially as margins continue to shrink in the retail industry at the moment, so that price is coming through the supply chain which makes it incredibly hard to combat. ., . , ., to combat. how much in your view does this expose, _ to combat. how much in your view does this expose, explain - to combat. how much in your view does this expose, explain how- to combat. how much in your view does this expose, explain how we | does this expose, explain how we need to be much more so sufficient when it comes to producing goods that at the moment we import? lii< that at the moment we import? iiif; produces most of the food that we eat around 60%, and around 30% from the eu. there are advantages to that because it means he can get many fresh fruit and vegetables all year round because we�*re just getting seasonal vegetables through the uk, so in terms of consumer choice that

ability to import has been very helpful, obviously the weakening pound at the moment which is the big story of the day means that many of these prices are going up at the moment, but i think there are advantages to importing summer food songs we do have that food security and the government has looked at that prior, it is those been important for the uk and largely we are quite successful at that.- are quite successful at that. thank ou ve are quite successful at that. thank you very much _ are quite successful at that. thank you very much for _ are quite successful at that. thank you very much for talking - are quite successful at that. thank you very much for talking to i are quite successful at that. thank you very much for talking to us. i you very much for talking to us. good to get the perspective from the british retail consortium. we have a response from the treasury following the statement from the bank of england in which they said it is going to hold a limited sale of gilt, government debt. it says, the bank of england is monitoring financial markets and any potential risk to the flow of credit, to the

uk, the real economy and the subsequent consequences on the uk households and businesses. it acknowledges, the treasury, that the financial markets globally have been volatile in recent days and the bank has identified a risk from recent dysfunction as it describes it in the gilt markets. so there will be this temporary purchase of government bonds from today. these purchases are strictly time—limited, to enable the bank to conduct this financial stability intervention this operation has been fully indemnified, underwritten by the h m, the chancellor is committed to the bank of england�*s independence, the bank of england�*s independence, the government will continue to work closely with the bank in support of its financials to and inflation objectives, the labour party says it wants gps in england to provide

face—to—face appointments to anyone who wants one, in a new proposal outlined by the shadow health secretary, wes streeting. speaking at the labour conference in liverpool, he also said a labour government would end the so—called 8am rush to get a gp appointment and vowed to double the amount of medical school places available. joining me now to talk more about this is matthew taylor, who is the chief executive of the nhs confederation. thank you forjoining us. our welcome with these policies be? are they the right ones?— they the right ones? before i get onto that icon _ they the right ones? before i get onto that icon to _ they the right ones? before i get onto that icon to mrs _ they the right ones? before i getj onto that icon to mrs opportunity they the right ones? before i get i onto that icon to mrs opportunity to underline the cost of living crisis we had just been talking about is also a health crisis in terms of the impact it has built on the people we serve and the dangerous people aren�*t able to eat their homes and heat their kids in need, also impact on our low—paid health and social

care staff, in relation to what wes streeting has been saying on behalf of the labour party today there are elements of what he said which we welcome, in particular is the commitment to addressing the fundamental challenge for the health service which is around workforce. clearly when you are in opposition, you will tend to focus on what isn�*t going right, iwant you will tend to focus on what isn�*t going right, i want to say in relation to primary care it is important to say we are seeing more patients now than we did before covid, nearly half the patients seeing a gp on the day after they requested an appointment, and most people will get the type of gp appointments they want, many people don�*t want face—to—face, they happy with the with the and with video, so i worry about having all politician setting targets which sound great and grab the headlines but the important thing is we have the staff

there to deliver on that target because if we don�*t have the staff and capacity to deliver on that, the danger is it tilts your priorities in the wrong direction. i welcome the emphasis on workforce and the commitment to the nhs, also the fact that labour isn�*t talking about a massive reorganisation. the last two times we saw a change of political leadership in government, 1997 and 2010, we embarked on major reorganisations which i don�*t think have delivered a great deal of benefit so it is good we are not also hearing about major reorganisation. also hearing about ma'or reorganisation.i also hearing about ma'or reoruanisation. ~ ., . ., reorganisation. what evidence do you have that most _ reorganisation. what evidence do you have that most people _ reorganisation. what evidence do you have that most people are _ reorganisation. what evidence do you have that most people are happy i reorganisation. what evidence do you have that most people are happy with an online or phone consultation because anecdotally we often hear thatis because anecdotally we often hear that is not the case for some people who are not confident in that situation, oralso who are not confident in that situation, or also may be need that reassurance of a face—to—face appointment if it is something very

serious. ~ , ., serious. absolutely. often a telephone — serious. absolutely. often a telephone or _ serious. absolutely. often a telephone or video - serious. absolutely. often a i telephone or video consultation is followed by face—to—face or a referral. the point is an important part of primary care is triaging people so when they contact primary care, trying to work out what they need to do, you need a face—to—face consultation, do you need to say different member of the primary care team, not those important to see a gp, there might be other members of primary care who can help you, maybe immunity pharmacist can help you, so it is important we recognise a range of ways in responding to patients concerns and also many people are perfectly happy with the telephone or video consultation. so we always try to give patients what they need because in the end we are in the business of caring.— because in the end we are in the business of caring. what about what the want? business of caring. what about what they want? absolutely, _ business of caring. what about what they want? absolutely, try - business of caring. what about what they want? absolutely, try and i they want? absolutely, try and resond they want? absolutely, try and

respond to _ they want? absolutely, try and respond to what _ they want? absolutely, try and respond to what patients i they want? absolutely, try and respond to what patients want | they want? absolutely, try and i respond to what patients want but this takes me back to the point about workforce. this government was committed to 6000 more gps full—time and we have got fewer, there are parts of the country where we have massively fewer gps than we need to have. so absolutely, we want a world in which patients get what they need and in terms of the form of care, get what they want, but we can only do that if we have got the workforce provided. labour has made commitment about workforce and that is to be welcomed but to take several years to deliver on those to what doesn�*t help is to have targets today or tomorrow which rely upon increasing workforce which is something that takes years. we need to be realistic about what it is we achieve. horne takes years. we need to be realistic about what it is we achieve.- about what it is we achieve. how do we make the _ about what it is we achieve. how do we make the nhs _ about what it is we achieve. how do we make the nhs more _ about what it is we achieve. how do we make the nhs more attractive i about what it is we achieve. how do | we make the nhs more attractive to work? there are people who are highly skilled leaving in their droves, midwifery is a perfect example.

it isa it is a good point, the danger we get into a vicious spiral, when you have so many vacancies, it means many people are in teams that are understaffed and many people feel they�*re not able to provide the level of care they want to and that has an effect upon people�*s morale. there are things we need to do in the short—term, we welcome the announcement of more money to get people out of hospital that don�*t need to be hospital and we welcomed help with pensions, which is something that labour have been calling for, so there are things that we can do in the short—term. in the medium term, the critical issue is addressing the fundamental problems of workforce that we have and as i said, labour has made important statements about medical places, about expanding the number of nurses, and we welcome that, but it takes time to get these posts in

place. so let�*s make sure that when we make a commitment to the public it is made on the basis that we can deliver it, because we have the workforce there.— deliver it, because we have the workforce there. matthew taylor thank ou workforce there. matthew taylor thank you for — workforce there. matthew taylor thank you forjoining _ workforce there. matthew taylor thank you forjoining us. - fiona tell me what we are doing. we are doing sport. it is holly. thank goodness you�*re there. tell us the sports news. a welcome surprise, i hope! england and wales cricket board chair richard thompson says the sport needs to find a compromise so the domestic calendar can be reformed. the ecb�*s high performance review has suggested reducing the number of championship and t20 matches countries play from 14 to 10 in aed by to improve

the england men�*s side. two thirds of the 18 first class counties need to agree to make changes. we have to come up with a schedule that they want to play in, because it is clear from the pca the players, the directors of cricket have all said the schedule doesn�*t work. so it is a lot of different stake holders that will have differing views, but ultimately we are trying to get everyone to see what is the best interest of the game, ratherthanjust their what is the best interest of the game, rather than just their view. it is the game we have to look at in the most holistic sense. the england t20 team take on pakistan in the fifth of their seven matches later this afternoon. the series has moved to lahore with the teams tied at 2—2. commentary is on 5 live sports extra. the match starting at 3.30 scotland manager steve clarke says his side won�*t need the euro 2024 play—off that his side secured by topping their

nations league group. the scots drew 0—0 in ukraine to earn promotion to the top tier of the competition and ensure they will be in pot 2 for the euros qualifying draw. we have taken the campaign, this campaign to the last game. i asked the players lets make the next step to show we are improving. i didn�*t use the words glorious failure, but i said let�*s make sure we take the next step, because then we will feel good about ourselves, the connection between the supporters and players is fantastic. now we have reached pot 2 and we are in the a group of the nations league, we don�*t want to stop and we want to keep getting better. northern ireland manager ian baraclough says he remains the man to take them forward, despite a 3—1 loss in greece last night. his side only narrowly avoided relegation to the third tier

of the nations league. they�*ve won just one of their 16 matches in the competition. i think we are developing and that�*s, you see players coming in and players finding their way, with the experienced ones and out of this strangely enough we will be better for the experience and we still have three or four for the experience and we still have three orfour senior for the experience and we still have three or four senior players to come in. i thought we were better this window and we have given good experience to players. the brazilian football confederation have condemned the racist abuse of tottenham striker richarlison after the forward had a banana and other objects thrown at him in their friendly win over tunisia. the incident took place after the spurs forward celebrated scoring brazil�*s second goal in paris. in a statement, the brazilian football confederation said it reinforced its position to combat racism. brazil posed with an anti—racism banner prior to kickoff.

in rugby union, england�*s women are to play their first ever stand alone fixture at twickenham next year. theirfinal 2023 six nations match against france has been chosen as the game to take place at rugby ho. it was also announced that the red roses match against scotland will take place at newcastle kingston park while they return to northampton�*s franklin�*s gardens to play italy. there is more on the sport web—site and app. that is all for now. always welcome, especially this morning. thank you! the bank of england has announced it will intervene in the bond markets to try to restore financial stability, after interest rates soared. the bank warned the market�*s reaction to the government�*s measures now represented �*a material risk to uk financial stability�*. it says the market in which the british government borrows had become dusfunctional

and was threatened the finances of uk households and businesses. i�*m joined now by sir charlie bean, who is the former deputy governor of the bank of england. thank you forjoining us, for people who are not familiar with this sort of financial language and these sort of financial language and these sort of statements, spell it out, what sort of state are we in? what is the impact going to be on ordinary people? impact going to be on ordinary --eole? , ., ., ., people? ok, there is quite a lot of links in the — people? ok, there is quite a lot of links in the chain _ people? ok, there is quite a lot of links in the chain here. _ people? ok, there is quite a lot of links in the chain here. what i people? ok, there is quite a lot of links in the chain here. what the l links in the chain here. what the bank of england has announceled is something which is akin to in the jargon acting as a market maker of last resort. what has happened since the fiscal event last friday, in fact it started happening earlier, is we have seen significant rises in

the yield on government bonds, uk gilts. the flip side of that is the prices of those bonds has been falling and fallen quite significantly. rising yields is necessarily accompanied by a fall in those prices. financial institutions, banks, insurance companies, pension funds, hedge funds, hold government bonds as a safe asset. they also have riskier assets, but they normally think of uk government bonds as a safe asset and stable in value.— and stable in value. because the government _ and stable in value. because the government at _ and stable in value. because the government at some _ and stable in value. because the government at some point i and stable in value. because the government at some point will i and stable in value. because the i government at some point will have to pay them back, with interest? yes. now, because the prices have fallen a lot, that means the balance sheet of those financial

institutions will have also deteriorated. and that will you know in some cases it may even be potentially threatening their solvency. i don�*t think that is an issue for any of the major financial institution, i would issue for any of the major financial institution, iwould be issue for any of the major financial institution, i would be surprised, but there may be some smaller ones where the decline in bond prices really is having very sigg captain... really is having very sigg captain- - -_ really is having very sigg catain... , , ., captain... -- significant. sorry to make this _ captain... -- significant. sorry to make this economics _ captain... -- significant. sorry to make this economics 101. - captain... -- significant. sorry to make this economics 101. i i captain... -- significant. sorry to make this economics 101. i will. make this economics 101. i will brina make this economics 101. i will bring you _ make this economics 101. i will bring you to — make this economics 101. i will bring you to the _ make this economics 101. i will bring you to the next - make this economics 101. i will bring you to the next bit. i make this economics 101. i will bring you to the next bit. the i make this economics 101. in ii. bring you to the next bit. the next chain, this is why the bank of england has announced this facility, is of course if these institutions find themselves in financial difficulties, what they will do is cutback on lending, whatever their

main raison d�*etre is that will feed through into the real economy to households, businesses and so forth. so the important thing for the bank is basically to keep the financial system operating smoothly. we introduced a similar facility in early 2009 for corporate bonds, for the bonds that companies issue, with exactly the same objective, to temporarily step in when there weren�*t buyers of corporate bonds, in this case it is investors reluctant to hold uk government bonds, or more reluctant. and the bank is stepping in if you like as a buyer of last resort. it sees what

is happening as being a temporary phenomenon, that is why it said it will last just 14 days. phenomenon, that is why it said it will lastjust 14 days. it believes that the yields on government bonds have risen too much, so that they�*re mis—priced and by acting in this way, it will limit any further rises in yields, orfall in bond prices, ensure the financial system keeps operating smoothly and ensure a continued flow of credit to households and businesses. it has already worked, _ households and businesses. it has already worked, because - households and businesses. it has already worked, because the i households and businesses. it has already worked, because the bank's already worked, because the bank�*s announcement has brought down gilt—year—old by more than half a per cent. gilt-year-old by more than half a er cent. , , , ., gilt-year-old by more than half a ercent. , , , ., , per cent. this is exactly what these actions do- — per cent. this is exactly what these actions do. the _ per cent. this is exactly what these actions do. the mere _ per cent. this is exactly what these l actions do. the mere announcement that the central bank is willing to step in as a buyer acts as support.

and sometimes it may not even need to buy anything. famously mario draggy during the eurozone crisis said the bank would step in and the crisis evaporated. the fact of the bank standing ready to purchase uk government bonds automatically helps to stabilise the market and this is clearly the right thing to do and has been a very successful and important intervention. it happened . uite important intervention. it happened quite quickly- _ important intervention. it happened quite quickly- it _ important intervention. it happened quite quickly. it is _ important intervention. it happened quite quickly. it is that _ important intervention. it happened quite quickly. it is that c _ important intervention. it happened quite quickly. it is that c word i quite quickly. it is that c word again, confidence. how seriously should the government here take this comment by the international monetary fund? we have heard

conservative mp5 being dismissive of what they said. i conservative mps being dismissive of what they said-— what they said. i have to say i think they're _ what they said. i have to say i think they're unwise - what they said. i have to say i think they're unwise to - what they said. i have to say i think they're unwise to be i think they�*re unwise to be dismissive. it is very unusual for the imf to issue a statement like this. particularly for a g7 company. it may be more likely for an emerging market country. i think, it may be more likely for an emerging market country. ithink, it is not only that the imf has some disquiet with the actual contents of the fiscal package and in particular the fiscal package and in particular the announcement of essentially unfunded tax cuts, there is a question mark about the sustainability of public finances at the moment, which admittedly the chancellor said he will come back to in the november main fiscal event, alongside another forecast. is in the november main fiscal event, alongside another forecast.- alongside another forecast. is that soon enough. _ alongside another forecast. is that soon enough, the _ alongside another forecast. is that soon enough, the end _ alongside another forecast. is that soon enough, the end of— alongside another forecast. is that i soon enough, the end of november? that is a good question. i personally think so. that really

they need to be establishing the coherence of their fiscal strategy earlier than that. and in the about accepts of that, we are likely to see continued pressure on the uk government gilt yields. just going back to the imf, i think an added factor in their mind will be that in the current state of uncertainty, in the current state of uncertainty, in the global economy and this considerable turmoil in other parts of the financial markets, it is being driven by the uncertainty connected with the ukraine, that were the uk, a significant medium sized economy, to suffer serious financial instability, that it would

potentially have spill over consequences elsewhere in the global financial system. we are the canary in the coal mine. that is why i think they felt impelled to issue this statement about the uk�*s policy. and it is why i think it is particularly unwise for some conservative mp5 to be dismissive of what is going on and say it is just froth in the markets. it is important that the government, as soon as possible, gets out a coherent story about how its tax cuts will both deliver faster growth and ensure the public finances are on a sustainable track in the medium term. �* ., , .,

on a sustainable track in the medium term. �* ., i. ., term. before we let you go, yesterday — term. before we let you go, yesterday you _ term. before we let you go, yesterday you urged - term. before we let you go, yesterday you urged the i term. before we let you go, i yesterday you urged the bank of england to carry out an emergency interest rise, now they have said they will buy government debt, how necessary that is emergency rate rise, bearing in mind something like a thousand products, mortgage products are now off the market? i should say, what i said yesterday was that had i been at the bank i would actually have been in favour of having an extraordinary meeting and an associated rate increase, because these things, it is better to act early and boldly rather than hang back and promise that you will act if necessary, which was in fact the strategy the bank adopted the. i have to say given what they have done on the financial stability front, the need for an immediate

rate increase is much reduced. it is not going to go away though and as the bank�*s chief economist yesterday was saying in a, in an adreshgss address, it is likely accompanying the fiscal expansion that was announced the bank will have to significantly raise interest rate and that will take place at its next meeting in november. and that will feed through to mortgage rates. that is unavoidable. so, the financial stability action today is not going to change the fact that mortgage interest rates will be rising in the future. 5ir interest rates will be rising in the future. ,, ., �* ., ., future. sir charlie bean, former deu future. sir charlie bean, former deputy governor _ future. sir charlie bean, former deputy governor of _ future. sir charlie bean, former deputy governor of the - future. sir charlie bean, former deputy governor of the bank i future. sir charlie bean, former deputy governor of the bank of| deputy governor of the bank of england, we appreciate you talking us to. . ~ england, we appreciate you talking us to. ., ,, i.

the bank of england said the rising costs of borrowing is a threat to the financial stant. the imf has called on ministers to re—evaluate their plans. the withdrawal of mortgage products hit unprecedented levels and one financial information service said it was the biggest drop it has ever recorded. british health officials on wednesday warned that increased circulation of flu and a resurgence in covid—19 could lead to a difficult winter that increases pressure on the already stretched national health service. covid restrictions that limited social contact meant

flu levels stayed low. however, an end to social distancing earlier this year have caused flu rates to returned to pre—pandemic norms. i�*m joined now by miriam deakin, director of policy and strategy at nhs providers. how pressing a concern is this in your mind?— how pressing a concern is this in our mind? ~ ,, ., , ., your mind? well, nhs leaders would describe the — your mind? well, nhs leaders would describe the summer— your mind? well, nhs leaders would describe the summer months - your mind? well, nhs leaders would describe the summer months as i your mind? well, nhs leaders would l describe the summer months as more pressured than many winters they have known. leaders are concerned and we see an up stick in respiratory illnesses. trusts are watching covid in particular, we saw a 17% increase in covid admissions to hospital in the recent figures and that is higher in some regions. but there is the good news, we are not seeing covid translate into an increase in deaths or use of

ventilation beds and we can protect ourselves against covid and the flu, through the vaccination programme. so the message is if you�*re eligible for a vaccination to get out there, get it booked in and protect yourself, yourfamily get it booked in and protect yourself, your family and the wider population. i yourself, your family and the wider --oulation. .., yourself, your family and the wider --oulation. yourself, your family and the wider population-— population. i will come back to vaccination _ population. i will come back to vaccination in _ population. i will come back to vaccination in a _ population. i will come back to vaccination in a minute, i population. i will come back to vaccination in a minute, if- population. i will come back to vaccination in a minute, if i i population. i will come back to l vaccination in a minute, if! may, vaccination in a minute, if i may, whether it is just a convenient word to use in a headline there is talk of this twin—demic. istate to use in a headline there is talk of this twin-demic._ to use in a headline there is talk of this twin-demic. we are seeing an increase in rates _ of this twin-demic. we are seeing an increase in rates of _ of this twin-demic. we are seeing an increase in rates of covid _ of this twin-demic. we are seeing an increase in rates of covid in - of this twin-demic. we are seeing an increase in rates of covid in the i increase in rates of covid in the community and that is being passed to hospital admissions to an extents, we we are nowhere near the rates in 2021 or april of this year. so it is too soon to say whether we will see another wave of covid. there is a concern about covid rates rising as we go into the colder

months. because of flu and because of lockdowns we have had, there is a worry we don�*t have a natural protection against this strain of flu had we been socialising as we had and we seeing a bad flu season in australia. skrine scientists are right to be concerned and push the message that we can protect ourselves by getting vaccinations. we don�*t want a double whammy of it hitting the nhs when we are already pressured. we are grappling with a significant number of staffing vacancy as well. if we can protect ourselves against covid and flu, that would be the best protection for us as individuals, ourfamilies and also enable the nhs to keep its capacity focussed on tackling the care backlogs. d0 capacity focussed on tackling the care backlogs-— capacity focussed on tackling the care backlous. ., ,, care backlogs. do you get both 'abs at once for flu i

care backlogs. do you get both 'abs at once for flu and i care backlogs. do you get both 'abs at once for flu and covid? i care backlogs. do you get both 'abs at once for flu and covid? you i care backlogs. do you get both jabs at once for flu and covid? you may| at once for flu and covid? you may do, but at once for flu and covid? you may do. but the — at once for flu and covid? you may do, but the message _ at once for flu and covid? you may do, but the message is _ at once for flu and covid? you may do, but the message is please i at once for flu and covid? you may| do, but the message is please take what you, if you get booked in for you covid booster do that and if you�*re offered a flu vaccination take that and ahead of the colder months. . ~ take that and ahead of the colder months. ., ,, , ., denmark, poland and sweden say they believe leaks in two major russian gas pipelines to europe are the result of sabotage. nord stream one and two, which carry supplies under the baltic sea, are not currently operational, but do still contain gas. seismologists reported underwater blasts before the leaks emerged. ukraine has pointed the finger at russia for causing the leaks, but the kremlin has described the accusations as �*5tupid and absurd�*. authorities in denmark have said it will be �*one or two weeks�* before nord stream leaks can be inspected. earlier i spoke to mike fulwood, who is a senior research fellow at the oxford institute for energy studies. it is probably most likely some form of sabotage. if there was one

incident of a pipeline leak, then accidental damage could be a possibility. it is very rare, because the most likely cause of accidental damage is an anchor being dropped and drag across the pipeline. that has happened. but to have three leaks within a 17—hour period, doesn�*t sound like it could be accidental. so probably some form of sabotage is more likely at this stage. in ukraine, president zelensky has vowed to protect people in the four regions of the country that could be annexed by russia after so—called referendums. western countries have described the votes as a sham and threatened to impose more sanctions on moscow. our correspondent hugo bachega is in kyiv for us. i think now the attention is on moscow and what president putin is going to do after the so—called referendums were held in four occupied regions of ukraine. let me give you the numbers, because in donetsk, the pro—russian authorities said more than 99% of the voters

were in favour ofjoining russia. in luhansk, 98%. and in kherson in the south, which is a region where there has been a strong resistance movement against the occupation, the pro—russian authorities said 80% of the voter were in favour of annexation. so, obviously, nobody, apart from those who organised the so—called referendum, or those who supported it would be recognising the legitimacy of this process, the legitimacy of those numbers, or any decision that is announced as a result of this process. the ukrainians have said that this is a farce, that this is an excuse by moscow to go ahead with the annexation of ukrainian territory. now, president putin is expected to address the russian parliament on friday and i think the expectation is that he is going to make an announcement reacting to the results of this so—called referendum.

but, here in kyiv, the authorities are saying that their plans remain unchanged. i spoke this morning with one of president zelensky�*s top advisors and he told me that the ukrainians will go ahead with the counter offensive. they�*re going to fight harder to regain territory that is now under russian occupation. time for the weather now. hello, it is another day of sunshine and showers. but the showers less frequent and less widespread than yesterday. there is more of a northerly component to the wind, the wind not as strong, but it will blow in some showers along the coast. this front clearing and another front coming across eastern scotland and north—east england bringing rain and north—east england bringing rain and wind. but it is a largely dry day with sunny spells. temperatures 12 or 13 in the far north. 14 or 15 in central parts. up to 17 as we

push further south. tonight this same weather front will be pushing steadily south and west, taking its cloud and rain with it. there will be a few showers left behind and more cloud than we saw last night. so it is not going to be as cold for most of us this coming night. tomorrow, we are going to start with this line of rain. it is turning showery and it will push south into the channel islands before clearing. we have brisk winds coming off the north sea that will blow in showers and a lot of dry weather tomorrow. some hours in scotland and northern ireland, but they will be the exception rather than the rule and with lighter wind and higher temperatures it won�*t feel as cool. temperatures up to 17 degrees. but then its all change, because thursday into friday this area of low pressure with its front comes our way, low pressure with its front comes ourway, bringing low pressure with its front comes our way, bringing wet and windy conditions. some mist and fog in

england and wales. some will be dense. the cloud builds and the rain already in scotland and northern ireland pushes south and east. the greens telling you that it is going to be heavy rain in places and you can see from the figures in the black circles we are looking at gusty winds around the coast up to gale force. temperatures academic in this, but roughly 12 to 17 degrees. that systems moves away, but the front in the south could bring some rain on saturday into southern areas, but that does clear and on sunday this ridge building up, still windy, but quieter. rain in the south on saturday, blustery showers, but something drier on sunday.

this is bbc news. the headlines... the bank of england steps in to try to restore order in government bond markets, after interest rates soared in the wake of the government�*s mini budget. it said the rising cost of borrowing now represents a threat to the uk�*s financial stability. the international monetary fund, criticises the government�*s tax cuts it comes as one of the world�*s most important financial institutions, the international monetary fund, criticises the government�*s tax cuts — and called on ministers to �*re—evaluate�* their plans. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries. this, unlike other fluctuations in the market, is a self—inflicted wound. these were the deliberate decisions of the government on friday.

the withdrawal of mortgage products hit unprecedented levels overnight, according to analysts. price rises in the shops have hit another record high. figures show annual shop inflation accelerated to 5.7% in september. good afternoon and welcome to the bbc news channel. the bank of england has announced it will intervene in the bond markets to try to restore financial stability, after uk interest rates soared following the government�*s mini budget. the bank warned the market�*s reaction to the government�*s measures now represented �*a material risk to uk financial stability�*. it says the market for gilts, in which the british government borrows, has become dysfunctional, and threatens the finances of uk households and businesses.

our business correspondent marc ashdown is with me. we need to start with some of the basics, what are the doing and why? given the market sentiments after the government�*s many physical event it was a volatile reaction. the bank felt it needed to act, there were a few statements and they said they would do anything necessary to bring inflation down but they are looking for actions. the bank can suddenly stick interest rates up out of the blue, or they can start buying bonds or gilt, they thought the latter was less of a kneejerk reaction. the bank says buying these will restore orderly market conditions, the purchases will be carried out on whatever scale necessary to reflect the outcome, and then they will be unwound in a smooth and orderly fashion. it is a big statement, saying to those who would bet

against the pound we will fight you. my against the pound we will fight you. my best explain as to what bonds and gilts are committed they are government bonds to borrow money, over up to 30 years, the rate at which they sit is a vote of confidence or not in the government�*s financial outlook. previously they were at 0.5%. now they have spiked at over 4%, so clearly a bit of lack of confidence. the bank had been buying them for quite a long time but recently they wanted to reverse that so they stopped buying them. they felt the need to start buying them again at least for the time being. istate need to start buying them again at least for the time being.— least for the time being. we know alread it least for the time being. we know already it has _ least for the time being. we know already it has had _ least for the time being. we know already it has had a _ least for the time being. we know already it has had a bit _ least for the time being. we know already it has had a bit of - least for the time being. we know already it has had a bit of the i already it has had a bit of the effect. the bank announced they will do this and have brought down the gilt yield, the interest you get by

buying one of these forms for 30 years, borrowing by more than half a %. and i have not even bought them yet. %. and i have not even bought them et. ., , , , ., %. and i have not even bought them et. i, yet. the treasury put a statement out, it yet. the treasury put a statement out. it came — yet. the treasury put a statement out, it came out _ yet. the treasury put a statement out, it came out pretty _ yet. the treasury put a statement out, it came out pretty quickly, i out, it came out pretty quickly, they say global financial markets have seen significant volatility in recent days, they identify the risk from recent dysfunction in gilt markets so the bank will carry out purchases to restore orderly market conditions and they reiterate the independence of the bank of england and the government will support the inflationary objectives. there has been criticism the two sides are almost working cross purposes. the government in charge of physical policy pushing tax cut policies which could push inflation and the bank trying to bring down inflation with interest rates. i think this move and the treasury response

attempts to show they are working in tandem, already calming the markets significantly. sentiment is very important in the market and they suggest a real lack of confidence in the uk economy and this could end up rustling back the narrative and buying time until the key moments when the bank is due to meet their will probe up again and later towards the end the chancellor will set out the full plans to grow the economy and boost growth which they say will clarify all these tax cuts and make everything more clear. stepping in with the gilt market means this emergency interest rate rise by the bank of england is less necessary, pushing the problem further down the road potentially unto us all collectively as taxpayers rather than individually through your mortgage._ taxpayers rather than individually through your mortgage. these things come in increments. _ through your mortgage. these things come in increments. first— through your mortgage. these things come in increments. first the - come in increments. first the markets quite reacted badly,

comments saying they would do everything they can to stabilise things and that didn�*t seem to work so now they say we will start buying the bonds to stabilise things, this is saying they willjust buy these things until things calm down. the final option is for the committee to meet and put interest rates suddenly up meet and put interest rates suddenly up and that could cause a shock, so trying to buy a bit of time and show we are working together, we will come onto the imf in a minute, criticism of the two sides haven�*t been working together but buying a bit of time and say they can have the set piece, the meeting of the monetary policy committee to put rates up and the government to give a full budget and lay things out. thank you. former governor of the bank of england, sir charlie bean explains what the announcements mean for the british public.

what the bank of england has announced is something which is akin to in the jargon acting as a market maker of last resort. what has happened since the fiscal event last friday, in fact it started happening earlier, is we have seen significant rises in the yield on government bonds, uk gilts. the flip side of that is the prices of those bonds has been falling and fallen quite significantly. rising yields is necessarily accompanied by a fall in those prices. financial institutions, banks, insurance companies, pension funds, hedge funds, hold government bonds as a safe asset. they also have riskier assets, but they normally think of uk government bonds as a safe asset

and stable in value. because the government at some point will have to pay them back, with interest? yes. now, because the prices have fallen a lot, that means the balance sheet of those financial institutions will have also deteriorated. and that will, you know, in some cases it may even be potentially threatening their solvency. i don�*t think that is an issue for any of the major financial institutions, i would be surprised, but there may be some smaller ones where the decline in bond prices really is having very significant... sorry to make this economics 101. i will bring you to the next bit. the next chain, this is why the bank of england has

announced this facility, is of course if these institutions find themselves in financial difficulties, what they will do is cut back on lending, whatever their main raison d�*etre is, that will feed through into the real economy to households, businesses and so forth. so the important thing for the bank is basically to keep the financial system operating smoothly. the action from the bank of england comes as the international monetary fund — which works to promote stability in the global economy — has criticised the government�*s plans for tax cuts, warning the measures are likely to fuel the cost—of—living crisis. in an unusually outspoken statement — the imf said the uk�*s developments were being closely monitered,

and said untargeted fiscal packages were not recommended during a period of high inflation. it warned the government its mini budget risked increasing inequality. that is all about the proposed tax cuts. the white house also criticised the government�*s policy — saying it was important to focus on "fiscal prudence, and fiscal discipline". the pound dipped in asian trade this morning — standing at around $1.06. the imf said that the government�*s fiscal plan in late november would give it an opportunity to �*re—evaluate�* tax measures — "especially those that benefit high income earners." today�*s action from the bank of england and the imf follow government proposals that would scrap the top rate of income tax and end a cap on bankers�* bonuses, among other measures. the announcement on friday sparked financial turmoil, as investors dumped the pound and uk debt. on monday the pound fell to record lows against the dollar. some of the country�*s biggest

lenders have suspended mortgage deals amid the uncertainty. adnan mazarei is a former deputy director at the imf. the imf doesn�*t make such strong statements about g7 countries. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries. so what is it about the announcements from kwasi kwarteng that has spooked them to make this move? i think they�*re worried that the tax cuts are permanent. they are afraid that the budget financing needs will go up. they are afraid. and they�*re requiring more borrowing domestically. inflation rising, requiring interest rate increases by the bank of england.

and there being a policy conflict between the treasury and the bank of england. at the same time, the united kingdom is running a large current account deficit and relies on foreign financing. the conservative mpjohn redwood gave his assessment of the imf intervention. the imf are coming from the eras of the past which they shared with the world�*s leading central banks. they didn�*t foresee the big inflation which they triggered. they didn�*t have sensible advice in good time to see off the inflation. and now, late in the day when the inflation is very visible for all to see, they are suggesting taking measures to tackle it when the world has moved on. and they should now be warning the world about the coming recession which is in danger of digging in in many leading countries

because of the policies being followed and will be the enemy of the future. what should the british government then say to the imf? i don�*t think the british government should say anything to the imf. i don�*t think we want a spat or a dialogue between the british government and the imf. the other thing, i think the imf and other commentators would be well advised to do is to judge the whole policy, because so far we have seen some tax proposals. we have not yet seen a whole series of supply measures which will clearly be needed at the same time as attractive tax packages to make sure there is more investment in more growth in the economy. what it is the bank of england has said it will do is essentially by government debt to restore orderly market conditions. the intervention

is the latest to try and come things down at the pound fell in value and the cost of government borrowing spiked because of the mini budget last week. you�*re watching bbc news. the labour party conference is taking place in liverpool. pat mcfadden is shadow chief secretary to the treasury — whojoins me from liverpool. thank you for tearing yourself away from the proceedings of the conference. first of all let�*s look at what the bank of and has proposed today. how welcome is it that they will buy government debt for the next couple of weeks? it is will buy government debt for the next couple of weeks?— next couple of weeks? it is an extraordinary _ next couple of weeks? it is an extraordinary intervention i next couple of weeks? it is an i extraordinary intervention from the bank of england, the second extraordinary intervention in 24—hour is. the first from the imf warning about the consequences of the chancellor's mini budget on friday and now the bank of england having to step in to try to calm the

markets which have been in chaos as a direct result of that budget on friday. a direct result of that budget on frida . ., ., ~ friday. you mentioned the imf, we heard our somewhat _ friday. you mentioned the imf, we heard our somewhat sudden - friday. you mentioned the imf, we - heard our somewhat sudden dismissive approach from some conservative mps, if you were in power how would you be responding? the if you were in power how would you be reminding?— be responding? the conservative party resnonse — be responding? the conservative party response speaks _ be responding? the conservative party response speaks volumes l be responding? the conservative - party response speaks volumes about where they are right now and instead of attacking the imf, we need to take responsibility for the budget on friday, it was a reckless act of choice which is causing chaos in financial markets. the choice which is causing chaos in financial markets.— choice which is causing chaos in financial markets. the question i ask is how _ financial markets. the question i ask is how would _ financial markets. the question i ask is how would you _ financial markets. the question i ask is how would you if - financial markets. the question i ask is how would you if you - financial markets. the question i ask is how would you if you were i financial markets. the question i i ask is how would you if you were in power be reacting and responding, what would you be doing if you were in power? we what would you be doing if you were in ower? ~ ., �* ., , in power? we wouldn't have proceeded with 840 5 - in power? we wouldn't have proceeded with 840 5p tax — in power? we wouldn't have proceeded with 840 5p tax rate, _ in power? we wouldn't have proceeded with 840 5p tax rate, wouldn't - in power? we wouldn't have proceeded with 840 5p tax rate, wouldn't have - with 840 5p tax rate, wouldn't have borrowed on this scale right now for these measures and wouldn't be in this position. the government needs

to revisit what happened on friday and try to take the pressure of the bank of england because the result will be increasing mortgage rates for people and complete chaos. but what would you do in terms of affording the borrowing that we are going to need this winter, would you going to need this winter, would you go ahead with the reduction in the basic right of income tax because i think you said you would. we would kee that, think you said you would. we would keep that. we _ think you said you would. we would keep that, we would _ think you said you would. we would keep that, we would have _ think you said you would. we would keep that, we would have an - think you said you would. we would . keep that, we would have an expanded went full tax which would write more money and we would not go a head with the abolition of the 45p rate, that would be a more balanced approach and a more responsible approach and a more responsible approach which is what is needed right now. approach which is what is needed riaht now. ~ ., ., right now. what would you hope the bank of england _ right now. what would you hope the bank of england will— right now. what would you hope the bank of england will do _ right now. what would you hope the bank of england will do with - right now. what would you hope the bank of england will do with regard | bank of england will do with regard to interest rates? i bank of england will do with regard to interest rates?— to interest rates? i think they are under great _ to interest rates? i think they are under great pressure, _ to interest rates? i think they are under great pressure, they - to interest rates? i think they are under great pressure, they will i to interest rates? i think they are i under great pressure, they will have to increase rates and people will feel that in their mortgages and that will cause people a great deal of money over the next couple of

years. of money over the next couple of ears. ., . ., , ., i. of money over the next couple of ears. ., . ., y ., ,, ~ years. how much money do you think it would be prudent _ years. how much money do you think it would be prudent for _ years. how much money do you think it would be prudent for us _ years. how much money do you think it would be prudent for us to - years. how much money do you think it would be prudent for us to borrow i it would be prudent for us to borrow given that we're going to have to get through cost—of—living crisis? you can't put a single figure on that but the signal sent out by the chancellor even after friday was highly irresponsible. he said they would double down and do even more tax cuts funded through borrowing and the markets have reacted to that and the markets have reacted to that and it is a direct result causing chaos and it becomes completely from the budget he announced on friday. we are expecting to hear more from the government at the end of november and whether that is soon enough you will tell me no doubt, but what will you be wanting to hear that you hope or come things further and give people confidence? my that you hope or come things further and give people confidence?- and give people confidence? my fear is the government _ and give people confidence? my fear is the government will _ and give people confidence? my fear is the government will now - and give people confidence? my fear| is the government will now announce cuts to public services which will be a direct result of the mistakes i have made. they are making the public pay for the consequences of

what they have done. it is quite clear that the risk for the country now is interchange with the labour party, it is continuing with its conservative chaos. this was a reckless act of choice and it is seriously threatening the financial stability of the country.— seriously threatening the financial stability of the country. thank you for 'oinin: stability of the country. thank you forjoining us- _ stability of the country. thank you forjoining us. thank _ stability of the country. thank you forjoining us. thank you. - the withdrawal of mortgage products hit unprecedented levels overnight, according to analysts. the financial information service, moneyfacts, said 935 mortgage products were taken off the shelf compared with a day earlier. it said that was the biggest overnight drop it has ever recorded. more than two and a half thousand products are still available — but that's half the number that were on offer last year. and later today, we'll be answering your questions on housing and the cost of living crisis — so if you have any questions about buying a house, mortgages or rents, you can let us know. that's on your questions answered at 4:30 today. get in touch with your questions —

by emailing yourquestions@bbc.co.uk or get in touch on social media using the hashtag #bbcyourquestions. we can hand quite seamlessly to the bbc sport centre. i we can hand quite seamlessly to the bbc sport centre.— bbc sport centre. i bring the disorder? — bbc sport centre. i bring the disorder? we _ bbc sport centre. i bring the disorder? we have _ bbc sport centre. i bring the disorder? we have been - bbc sport centre. i bring the - disorder? we have been hearing from the encland disorder? we have been hearing from the england and _ disorder? we have been hearing from the england and wales _ disorder? we have been hearing from the england and wales cricket - disorder? we have been hearing from the england and wales cricket board. the england and wales cricket board chair richard thompson who says the sport needs to find a compromise so the domestic counter can be reformed. the ecb's high performance review has suggested reducing the number of championship and t20 matches from 14 to 10 to improve the men's side. two thirds need to agree to make these changes.

we have to come up with a schedule that they want to play and because it is clear from the pca who have made it very clear that the players and directors of cricket but the ball emphatically said the schedule doesn't work, so it is a lot of different stakeholders in the game who all have different differing views but we are trying to get everyone to see what is in the best interest of the game of cricket rather than just their view. this interest of the game of cricket rather thanjust their view. this is the game of cricket that we have to look at in the most holistic sense. the england t20 team take on pakistan in the fifth of their seven matches later this afternoon. the series has moved to lahore with the teams tied at 2—2. commentary on 5 live sports extra, starting at 3:30pm. the northern ireland manager ian barraclough says he remains the man to take them forward despite a 3-1 man to take them forward despite a 3—1 loss in greece last night. his side only narrowly avoided relegation from the third tier of the nations league and they have won

just one of their 16 matches in the competition. i just one of their 16 matches in the competition-— competition. i think we are develorring _ competition. i think we are developing and _ competition. i think we are developing and you - competition. i think we are developing and you see - competition. i think we are - developing and you see players coming in and finding their way with the experienced ones and out of this strangely enough will be better for the experience and we still have three or four the experience and we still have three orfour senior the experience and we still have three or four senior players to come backin three or four senior players to come back in and i thought we were better this window thanjune but we back in and i thought we were better this window than june but we have given good experienced players. the brazilian football confederation has condemned the racist abuse of tottenham striker richarlison after the forward had a banana and other objects thrown at him in their friendly win over tunisia last week. the incident took place after the spurs forward celebrated scoring brazil's second goal in paris. in a statement the brazilian football confederation says it reinforced its position to combat racism, with brazil posing with an antiracism banner prior to kick—off. in rugby union england's women will play

theirfirst ever union england's women will play their first ever stand—alone fixture at twickenham next year. their final 2023 six nations match against france has been chosen as the game to take place there. it was also announced the red roses match against scotland will take place at newcastle kingston park, while they return to northampton's franklins gardens to play italy. that is all yours but for now. back to you. food inflation has hit its highest rate on record, according to the british retail consortium. inflation is the rate at which prices are rising — the increasing cost of food has largely been driven by the war in ukraine — which continues to push up the price of animal feed, fertiliser and vegetable oil. figures show shoppers are now paying 10.6% more than they were a year ago — that's up from 9.3% in august. fresh food products are a record 12.1% higher than last year — this was up from 10.5% in august.

overall shop price inflation rose to 5.7% in september. and non—food inflation rose to 3.3% — largely driven by heavier hardware and other products hit by rising transport costs. earlier, tom holder from the british retail consortium explained the significance of these increases. we are not seeing food inflation or inflation on the whole slowdown at all and that will be a real concern for households, particularly as next month we will be seeing the rise in energy prices for many households. things are difficult for households and retailers to face both higher costs and getting squeezed by lower demand, a difficult time with no sign that things will debate.

we have the ongoing war of ukraine pushing up the price of things like fertiliser, oil, vegetable oil as well, directly impacting shelf prices. there was a little bit of good news with the sunshine which helped bring down the price of some fresh fruit, berries and such, but the drought will also have an impact, a longer impact on the harvests for other products, so swings and roundabouts there, but a difficult time for retailers and an even harder time for consumers at the moment. it is all along the supply chain with the producers in the first place, they are finding the squeeze because the basic resources they need are also going up in price, it starts at the very beginning. absolutely. the imported food is more expensive but also the fertiliser for the farms is more, the energy required is more expensive and that gets passed along to the supermarket, the supermarkets are then forced

to try and protect their consumers as best i can but some of that is always going to get passed on, especially as margins continue to shrink in the retail industry at the moment, so that price is coming through the supply chain which makes it incredibly hard to combat. how much in your view does this expose, explain how we need to be much more self—sufficient when it comes to producing goods that at the moment we import? uk produces most of the food that we eat, around 60%, and around 30% from the eu. there are advantages to that because it means you can get many fresh fruit and vegetables all year round because we're notjust getting seasonal vegetables through the uk, so in terms of consumer choice that ability to import has been very helpful, obviously the weakening pound at the moment which is the big story of the day means that

many of these prices are going up at the moment, but i think there are advantages to importing summerfood so long we do have that food security and the government has looked at that prior, it has always been important for the uk and largely we are quite successful at that. a bit of information from network rail talking about the timetable for this saturday when there are a number of strikes by unions on the railways. this is the 1st of october, only around 11% of rail services are likely to run the rmt, aslef and the tssa are coordinating strike action on that day. there will be no trains at all across significant parts of the country. trains that do run will start later and finished much earlier than

usual, so much more restricted timetable. passengers are asked to only travel by if absolutely necessary and if you do have to travel you should prepare for disruption, plan ahead and check when the last train is running. there are also strikes next week, on the fifth and 8th of october. also on sunday when trains do get running again they are not likely to start very early in the day, so check that out as well. a much restricted timetable on saturday and sunday. cuba is completely without power after hurricane ian pummelled the western end of the island. categorised as category four, meaning 'extremely dangerous', the hurricane has wind speeds of up to 195 kilometres an hour. it hit the island killing at least two people. after leaving cuba the hurricane has been gathering force in the south—eastern gulf of mexico. it is now bearing down on the us state of florida. the tampa bay area could receive its first direct hit from a hurricane since 1921 and our correspondent

azadeh moshiri is there. they'd been warned that this could be a history—making storm — one that could cause life—threatening surges. and with that warning came mandatory evacuation orders for millions across florida's west coast. when you look at storm surge of this nature, that is a very life—threatening hazard, when you're talking about ten feet, 12 feet of storm surge, which you could see in certain parts of this when it makes landfall. the governor has deployed thousands of national guard troops, and emergency services have been distributing things like sandbags to protect from flooding, and filled trailers full of food and water. but people are also taking matters into their own hands, boarding up shops and homes, and stocking up on household essentials as well as petrol. for an area like tampa bay — that hasn't been hit directly by a storm in more than a century — all these warnings have been taken seriously.

when you're dealing with the potential for severe flooding, power outages and shortages in things like fuel, it doesn't matter where the storm lands or how severe it is — you have to make preparations, especially in a place like tampa bay, where you have buildings that are in low—lying areas and extremely vulnerable. one local in st petersburg lives on his boat, but he's now forced to leave it behind as he evacuates and seeks shelter. it's a lot of boats, they're packed in pretty tight, and it's kind of concerning as to whose boat's going to land where, and just trying to look for somewhere that's higher and drier than this place will be. while predictions are still changing hour by hour on exactly where storm ian will continue to travel, officials are still repeating the same message — escaping the eye of the storm doesn't mean you're safe. azadeh moshiri, bbc news.

now it's time for a look at the weather with carol hello again. today is another day of sunshine and showers. but if anything, the showers are fewer and less widespread than they were yesterday. we've got this northerly flow, northerly wind. so the showers are largely going to be around the coastline with just a few getting inland. and we've got a system coming in from the north sea bringing wet and windy conditions later across parts of eastern scotland and northeast england. temperatures 13 to 16 degrees this evening and overnight. this system pushes further south and west, taking its cloud and rain with it. there'll be a few showers left in its wake and a fair bit of cloud, which does mean that it's not going to be as cool tonight as it was last night. and by the end of the night, rain will be lying across southern parts of england and south wales and through the morning that will tend to push down into the channel islands before clearing. further showers coming in in the breeze off the north sea. but for many, a dry day with variable amounts of cloud and some sunshine and temperatures

on thursday a little bit higher. hello this is bbc news with martine croxall. the headlines: the bank of england steps in to try to restore order in government bond markets after interest rates soared. it comes as one of the world's most important financial institutions, the international monetary fund criticises the government's tax cuts. , , ., , ., ., cuts. these statements are common with regard _ cuts. these statements are common with regard to — cuts. these statements are common with regard to emerging _ cuts. these statements are common with regard to emerging market - with regard to emerging market countries, with problematic policies, but not often about g7 countries. , ~ policies, but not often about g7 countries-_ countries. this, unlike other fluctuations _ countries. this, unlike other fluctuations is _ countries. this, unlike other fluctuations is a _ countries. this, unlike other| fluctuations is a self-inflicted fluctuations is a self—inflicted wound —

fluctuations is a self-inflicted wound. ., ., ., ., ., wound. the withdrawal of mortgage -roducts wound. the withdrawal of mortgage roducts hit wound. the withdrawal of mortgage products hit unprecedented - wound. the withdrawal of mortgage products hit unprecedented level. i products hit unprecedented level. and annual shop inflation has increased to 5.7%. denmark, poland and sweden say they believe leaks in two major russian gas pipelines to europe are the result of sabotage. nord stream one and two, which carry supplies under the baltic sea, are not currently operational, but do still contain gas. seismologists reported underwater blasts before the leaks emerged. ukraine has pointed the finger at russia for causing the leaks, but the kremlin has described the accusations as 'stupid and absurd'. authorities in denmark have said it will be 'one or two weeks' before nord stream leaks can be inspected. for more on this story, let's talk to simone taglia—pietra, energy policy expert and senior fellow at the economic think tank, bruegel.

thank you very much forjoining us. what evidence is there that this is an act of sabotage?— what evidence is there that this is an act of sabotage? well, as is said b all the an act of sabotage? well, as is said by all the european _ an act of sabotage? well, as is said by all the european governments i by all the european governments involved and also by the eu top diplomat, it is clearly an act of sabotage. seismologists reported an underwater blast and this can only be the result of explosions. imilli be the result of explosions. will im act be the result of explosions. will impact will _ be the result of explosions. will impact will it — be the result of explosions. will impact will it have on gas supplies to europe, which countries are affected? ~ , , ., ., affected? well, this is not having an im act affected? well, this is not having an impact on _ affected? well, this is not having an impact on the _ affected? well, this is not having an impact on the european - affected? well, this is not having an impact on the european gas i affected? well, this is not having - an impact on the european gas supply situation, for the very simple reason that nord stream 2 never entered into operation and nord stream 1 was already shut off by russia in august. so this is not changing the situation for europe, a

situation in which governments are preparing to live their first winter without russian gas. fit is sabotage and russia claims _ without russian gas. fit is sabotage and russia claims they're _ without russian gas. fit is sabotage and russia claims they're nothing i without russian gas. fit is sabotage j and russia claims they're nothing to do with it, how much of an escalation would bit in the tensions between russia and the west? weill. between russia and the west? well, if at the end — between russia and the west? well, if at the end of _ between russia and the west? well, if at the end of the _ between russia and the west? well, if at the end of the day _ between russia and the west? -ii if at the end of the day russia will be found to be behind these acts of sabotage, that will mark a significant scale up of the level of tensions between russia and the eu from an energy weaponisation that was for the time being aimed at the high prices in europe, to an actual hybrid war. that would be a significant escalation and european governments have to react by scaling up governments have to react by scaling up their security activities in the

critical energy infrastructure. to be very clear, something like that cannot happen in other infrastructures, for example linking europe to norway or aldpeer ya. == europe to norway or aldpeer ya. -- alteria. europe to norway or aldpeer ya. —— algeria. how do you increase security for your supplies? this is russia's pipeline, why would it destroy its own infrastructure? i“ruleiii destroy its own infrastructure? well what the destroy its own infrastructure? -ii what the norwegians yet was to increase the level of security alert on their gas infrastructure, so the activities will be reinforced and thatis activities will be reinforced and that is in view of preventing potential acts of sabotage, as we move forward in the coming days and weeks. ., . ., ., , ., weeks. how much of an imperative will this be — weeks. how much of an imperative will this be for— weeks. how much of an imperative will this be for other _ weeks. how much of an imperative will this be for other countries - will this be for other countries across europe to try to find

alternative supplies of energy? and avoid being dependent on russia? i think all european countries now work on a plan, a scenario let's say that russia will fully cut its supplies to europe in the winter. let's remember that russia over the last month has already cut 80% of its gas supplies to europe for a number of different reasons, they have been claiming 80%. so europe is already living without most of russian gas. and all point to the fact that europe can survive pretty well this winter without russian gas, if it manages to maximise the supply options, as it is trying to do, and if it manages to reduce its gas and electricity demand by around 10, 15%. if gas and electricity demand by around 10,15%. if this happens, europe will get through to the spring

without major disruptions and we can prepare for the next winter when we will need to refill storage without russian gas in the spring and summer. ., ~' russian gas in the spring and summer. . ~ , ., in ukraine, president zelensky has vowed to protect people in the four regions of the country that could be annexed by russia after so—called referendums. western countries have described the votes as a sham and threatened to impose more sanctions on moscow. our correspondent hugo bachega is in kyiv. i think now the attention is on moscow and what president putin is going to do after the so—called referendums were held in four occupied regions of ukraine. let me give you the numbers, because in donetsk, the pro—russian authorities said more than 99% of the voters were in favour ofjoining russia. in luhansk, 98%. and in kherson in the south, which is a region where there

has been a strong resistance movement against the occupation, the pro—russian authorities said 80% of the voter were in favour of annexation. so, obviously, nobody, apart from those who organised the so—called referendum, or those who supported it would be recognising the legitimacy of this process, the legitimacy of those numbers, or any decision that is announced as a result of this process. the ukrainians have said that this is a farce, that this is an excuse by moscow to go ahead with the annexation of ukrainian territory. now, president putin is expected to address the russian parliament on friday and i think the expectation is that he is going to make an announcement reacting to the results of this so—called referendum. but, here in kyiv, the authorities are saying that their plans remain unchanged. i spoke this morning with one of president zelensky�*s top advisors and he told me that the ukrainians will go ahead with the counter offensive. they're going to fight harder to regain territory that is now under russian occupation.

the cost of living crisis is sending people with cancer into a 'downward spiral�* and the worst has yet to come — that's according to the charity macmillan cancer support. it's already helped more than 34,000 people so far this year with a financial grant — that's up 50% on the same period last year. graham satchell reports. every timejulian makes a cup of coffee, he worries about how much electricity he's using, and how much it will cost. using your kettle costs money, which i didn't really pay attention to. and to me — as many other people — they're panicking, and we shouldn't be panicking with cancer. if you live with cancer, you want to... my advice is to try and live as normal as you can, but with the cost of living going up, that's gonna...

that's gonna be non—existent. julian was a successful professional football coach, but his life was turned upside down when he was diagnosed with a brain tumour. he wasjust 29. obviously, i can't work, so money is tight — more tight than i'd ever imagined, if i'm honest. and what sort of tough choices are you having to make? it's either petrol for hospital appointments or paying for our utility bills, which have doubled. you mean you don't want to end up in debt? no, no, because if you end up in debt... i've been in debt before, when i was younger, and it's a whole place to be in. you lose sleep, you have bad dreams. you just... no—one should really have to face that — regardless whether you have cancer or not, no—one should have to face the fact of being in debt or worrying about what they're going to eat next. it's... it's as simple as that. julian has been helped by the cancer charity macmillan to access universal credit,

but says he's really struggling. i need heating because i'm on chemo — ongoing chemo for the foreseeable future — where my body temperature can rise and drop at any given moment. i'm thinking that i won't be able to use the heating, because once that heating and the energy bill goes up, the more i use the heating, the more it's going to cost and there's going to be a point where we're just going to have to not pay it — and i don't want to do that. our focus should be cancer and recovery, or recovering from it — not worrying about how we're going to survive the next few months. julian's experience is farfrom unique. the charity macmillan says it's seen a 54% increase in the number of cancer patients needing financial support so far this year, compared to the same period last year. debbie potts is 55. she was diagnosed with stage 3 ovarian cancer last year.

it's sort of a blur, cos the next thing i know, dan and my youngest daughter were there, and we were just sort of saying, "ok, what...what happens next?" what happened next was a real roller coaster — chemotherapy, three major surgeries, an all—clear, and then the cancer returned. debbie had to stop working. her partner, dan, went part—time to look after her. dan and i are really, really proud people, and we don't want to take benefits or... you know, we want to... we want to work and pay our way. so, it was... it was tough. we don't turn our heating on because it's so expensive. so we use these blankets — really nice, actually, you know, soft, and... so, wejust, like, have blankets. we don't want to get into a financial situation where, you know, we start losing our home. you know, we want to

keep our heads above. so, we'll do whatever. and blankets work fine! debbie says she didn't want to be a burden on society, so hasn't claimed benefits. she has received some money from macmillan, which she describes as a godsend. i feel that, you know, people being treated for cancer, it's not a joke. they really are being treated for cancer. therefore, the government or nhs or whoever the powers that be should have an automatic system in place that says, you know, regardless of whether you're employed, self—employed or have never worked, you probably need this injection of funding just to help you see you through the worst of your illness. and, yeah, i think that would be much better. and itjust avoids people feeling like we do — embarrassed and shameful — but also really grateful. i mean, you know, £700 from macmillan changed our winter.

as the cost—of—living crisis really starts to bite, it is having a serious impact on people living with cancer. graham satchell, bbc news. the headlines on bbc news: the bank of england steps in to try to restore order in government bond markets — after interest rates soared in the wake of the government's mini—budget. it said the rising cost of borrowing now represents a threat to the uk's financial stability. it comes as one of the world's most important financial institutions — the international monetary fund — criticises the government's tax cuts — and called on ministers to 're—evaluate' their plans. the withdrawal of mortgage products has hit unprecedented levels.

it's been more than a week since large—scale disorder broke out in leicester, which has led to tensions between the city's hindu and muslim communities. this week marks the start of one of the most important hindu festivals, and in leicester the festival of navratri is usually celebrated in great pomp and style. bbc�*s south asia diaspora reporter gaggan sabherwal reports from leicester. this is one of the uk's most popular thriving and vibrant roads called bellgrave road in leicester in england. known for its mouth—watering cuisine, restaurants, asian clothes and jewellery stores and indian sweet shops, bellgrave road is a popular destination not just for locals, but also for visiting tourists. bellgrave road is also set to be the home to the largest diwali celebrations outside asia, with thousands of people visiting the city to take part in the festivities. 37% of the people living in leicester are south asians and so every year festivals like eid and diwali are celebrated in great pomp and style.

but a recent large scale disorder that broke out in leicester on 17th september involving young men both from the i have come to leicester to see how the recent incidents have affected the people living here and see if all this unrest has dampened this year's celebrations. like, "don't go out on your own," yes, that has affected me, but majority like, because i'm with my family and we have nothing to be scared about. all the community in leicester not very happy what happened, because it's never happened before.

and we were living peacefully. we believe in peace. but this thing has created a little bit of problem. but i think the problem has been sorted now. all the temples are running normal. all the locations are celebrating nicely. some people were a bit uneasy, not scared i would say, - but uneasy to come out - and after buying the tickets said will it still be on? we had to reassure them, send them the message i that the organisers got together- and we had a meeting with the police about security and about extra | patrols and the police had sent if you need extra support, police will be there, - the authorities will be there. as you can see, it was the same j as last year and the year before.

islamic group popular front of india or pfi has been banned for five years, accused of being involved in terrorist activities. the government's decision comes as part of a crackdown against the group, including arrests of many of its leaders and raids on its offices. the pfi has rejected the allegations against it. here's our south asia correspondent, yogita limaye. the ban came in overnight and the government has accused the pfi of engaging in terrorist activities, terrorfinancing, targeted killings. it has also accused it of having links to global terror groups, including islamic state. we haven't had a reaction from pfi after the ban came into effect, and something that was seen as coming because in the past few days we have had arrests of schools of pfi leaders,

of scores of pfi leaders, there have been raids across the country at offices of the pfi. so late last night they had to put out a statement. this is a line they have always maintained because these are charges the government has repeatedly made against them. they said there is no proof, these allegations against them are completely baseless. they are saying that this is a witch hunt. they are an islamic group. they have said that this is a witch hunt by india's hindu nationalist government against dissenting voices. the pfi, just to give you a background, have been a part of protests against the 2019 citizenship law which many in this country see as discriminatory against muslims. they have also been engaged in protests demanding the right for female muslim students to wear the hijab or headscarf in school. it is a controversial issue in india and at the moment is at the centre of a court battle. some of the protests that they have engaged in have turned violent. about ten or 12 years ago there were members of the pfi who attacked a christian professor, saying that what he had

said was blasphemous. while the pfi has publicly distanced itself from some of these activities, when you talk to people, particularly in the southern states where it originally came into being, now they have followers in many parts of india, they are widely seen as a hardline islamic organisation. brazilians are voting this sunday in a tight presidential election — as many struggle with the cost of living crisis. celebrated as heroes during the pandemic, many food delivery riders in brazil now say they're on the brink of starvation. agustina latourrette, has been speaking to drivers sleeping on the streets of sao paulo. translation: the cost of living has increased. i had never starved before the pandemic, now i do. luciano has been a delivery rider in sao paulo for more than ten years.

but since the pandemic eased, he says he now earns a quarter of what he used to. translation: it is an invisible profession, no—one knows what we suffer on the streets. despite working an extra four hours every day, soaring inflation rates mean luciano is having to resort to extreme measures. instead of going home at the end of his shift, he sleeps here on the street. translation: sleeping on the street is sleeping with fate. even the dogs wee on us. i have been robbed, shot three times. all this to save an extra $3 a day. translation: my biggest cost is my commute to work, so i either sleep on the street to save money or i starve. the delivery apps have reduced our fees. some deliveries pay only 4.50 reais. 4.50 reais — that's less than a dollar.

the delivery apps deny reducing the drivers' fees but for luciano, the daily struggle is evident. every day, luciano queues for hours at this charity soup kitchen. despite being brazil's richest city, homelessness has increased by 30% in the last year in sao paulo. translation: so many families have started coming because they were unable to pay for their rent. we also have people who, in order to save money commuting, are also sleeping on the streets. according to a brazilian ngo, almost 60% of brazil's population, that is 125 million people, are now unable to get three square meals a day. but in the throes of an election, brazil's cost of living crisis has become politicised by both sides. president bolsonaro has recently launched a cap on fuel.

translation: yes, this helps, but the fuel cap will only last until the end of this political moment. it is governmental marketing to win over my vote and yours. luciano's motivation to survive is all for his son, who lives 3,000 kilometres away, with his mother. translation: here's rafazinho. i haven't seen him in years. when i speak about my son, i get emotional. so, luciano carries on, driving all day and taking his chances on the street. bbc news, agustina latourrette. for teachers, getting to know new pupils at the start of term can be hard enough — but at one school in londonderry, they've got some extra homework. that's because six sets of twins are now part of the year eight group — keiron tourish has been to the derry school to meet them.

in every new term, it can be a challenge for teachers to put names to faces. and at st mary's college, it's just become that little bit more difficult this year. that's because six sets of twins are now part of the year eight group — and some of the sets are identical. yeah, we have tricked our home economics teacher before and my daddy sometimes gets us mixed up. but my mummy doesn't. all my friends, like, play, like, a game where they guess which one i am, or guess which one she is. she's one minute older, and i have, like, a freckle on my neck, so people tell us apart from, like, that. but i also have like a smaller head and chubbier cheeks and she has, like, a longer head. it can be a bit confusing for the teachers, too, as they try to figure out who's who. everyone's got us confused. some people look at the inside of our blazers, or i've got- a different key chain on my bag. roma is one minute older than me.

i'm one centimetre taller than roma. and roma's got a bit of, like, people say more i squintier eyes than me. it's an amazing school, i love it so much and it's a class game — who can guess which twin's which? but some people just look inside our blazers cos it has our names, and some people just take a guess. the principal says that, so far, the school is coping well with the new influx of twins. well, at the moment, three sets are non—identical, so i think we're ok there. but three sets are identical and they're very identical, if i can say that. so at the moment we are struggling a little bit, keiron, but we'll get there. sometimes my daddy can tell us apart by our mcdonald's orders _ because she gets chips- and chicken nuggets and i get chips and a burger. the principal says he's delighted to have all the students attending st mary's college, and he's wished them well in theirfuture studies. he only hopes that, very soon, everyone will be able to tell them apart. keiron tourish, bbc news, derry.

jane is here with the news at one in a moment. first the weather. another day of sunshine and showers, but the showers less frequent than yesterday. the wind not as strong but it will blow in some showers along the coast. this front clearing and we have another front coming in across eastern scotland and north—east england bringing rain and strong winds. between the showers and that rain we are looking at a largely dry day with sunshine. temperatures 12 or 13 in the far north. 14 or 15 in central parts. up to 17 as we push further south. through this evening, this same weather front is through this evening, this same weatherfront is going through this evening, this same weather front is going to be pushing steadily south and west, taking the cloud and rain with it. a few

showers left behand and more cloud than last night. so not as cold a night. tomorrow, we are going to start with this line of rain. its turning increasingly showery and it will push south, into the channel islands, before clearing. we have brisk winds coming off the north sea that will blow in showers. and a lot of dry weather tomorrow. a few showers in scotland and northern ireland. with lighter wind and higher temperatures it won't feel as cool with temperatures up to 17 degrees. thursday into friday, you can see this low pressure with its fronts coming our way. we start off with some mist and fog across parts of england and wales. the cloud builds and the rain in scotland and northern ireland pushes south and east. the greens telling you it will

be heavy rain in places. you can see that we are looking at gusty winds. temperatures academic among this, but roughly 12 to 17 degrees. that system moves away, but the front in the south could bring some rain on saturday. but that does clear and then on sunday, this ridge builds, still windy, but quieter. the rain in the south during saturday, blustery showers, but something drier on sunday.

the bank of england steps in to try to calm the financial markets after the government's tax cutting plans caused the pound to slide. the bank said it had to act because of the material risk to uk financial stability. as the fallout continues from friday's mini budget, nearly a thousand mortgage products were withdrawn overnight. the treasury said this lunchtime it will continue to work closely with the bank in its work around financial stability. an investigation by the bbc�*s panorama programme has exposed what is described as a toxic culture at one of the uk's largest mental health hospitals. the eu says leaks into major gas pipelines from russia to europe are

the result of sabotage.