hello, i'm kasia madera. this is outside source. shares in the swiss banking giant credit suisse fall to a record low shares in the swiss giant plunge days after the collapse of america's look on valley bank. britain's finance minister unveils his first budget — with big changes to childcare, pensions and benefits. today, we build for the future. with inflation down, debt falling and growth up, the declinists are wrong and the optimists are right. we'll have more analysis of the new chancellor's plans. also on the programme: police in pakistan halt their operation to arrest former prime minister imran khan after clashes between police

and his supporters. we start with the troubled global banking sector. european markets have closed down more than three percent, spooked by a major sell—off of shares in the swiss banking giant, credit suisse. coming days after the collapse of us based silicon valley bank, it's prompted fears of a full—blown crisis in the sector. let's take a look at the damage at the close in europe today. shares in credit suisse plunged to a record low, falling 24%. that came after its biggest investor said it could not give the bank any more financial help. here in the uk, the insurer prudential tumbled 10%, and the high street bank barclays, 8%. the plunge by banking stocks left london's ftse 100 down almost 4% at its lowest level this year. it was the index's worst one—day performance since the start of the covid—19 pandemic.

taking a closer look at credit suisse — today was the second day of sharp falls for its shares after the swiss bank yesterday disclosed that its auditor had identified "material weaknesses" in its financial reporting controls. its biggest shareholder is saudi national bank, which holds almost 10% of the swiss bank. it now says it can't increase its stake on regulatory grounds. our business presenter, ben thompson, looks at credit suisse�*s growing problems. there are very specific reasons that credit suisse�*s finding itself in this position. you may remember the greensill scandal — it was caught up in that — there were big issues over mozambique, its investments there. it was also convicted last year in the summer of failing to prevent money laundering.

it unveiled a big turnaround plan, it announced a $4 billion loss last year. speculation, clearly, over its financial health, whether it could meet those three payments, whether it could meet those loans. and now, just the latest suggestions in its delayed company report that it was reporting of material weakness in its financial controls. picking up on those material weaknesses is victoria scholar, head of investment at interactive investor. it's five—year credit default swaps, which is essentially a measure of the cost of insuring against buying its bond. it gives you a clue about how risky its bonds are, have soared to a new record high. this week, it found material weakness in its financial statements and that it's been unable to stem outflows. but the latest is that its biggest backer, the saudi national bank, isn't going to be providing any further financial support and it won't be going above 10% in terms of its holdings. so, it was actually halted after its second day of declines. a spokesperson for the us

treasury has said it's monitoring the situation. confident took another knock. a spokesperson for the us trade to zarif... the eu's commissioner for financial services says there are differences between the european and american banking systems. we can see the the banking sector is in a good _ we can see the the banking sector is in a good shape _ we can see the the banking sector is in a good shape it_ we can see the the banking sector is in a good shape. it has— we can see the the banking sector is in a good shape. it has built - we can see the the banking sector is in a good shape. it has built up - we can see the the banking sector is in a good shape. it has built up is . in a good shape. it has built up is resilience and _ in a good shape. it has built up is resilience and it _ in a good shape. it has built up is resilience and it is _ in a good shape. it has built up is resilience and it is supervised - resilience and it is supervised closely— resilience and it is supervised closely by— resilience and it is supervised closely by national— resilience and it is supervised closely by national and - resilience and it is supervised i closely by national and european authorities _ closely by national and european authorities. but _ closely by national and european authorities. but i _ closely by national and european authorities. but i think— closely by national and european authorities. but i think at - closely by national and european authorities. but i think at this i authorities. but i think at this very— authorities. but i think at this very early— authorities. but i think at this very early stage, _ authorities. but i think at this very early stage, we - authorities. but i think at this very early stage, we can - authorities. but i think at this very early stage, we can start authorities. but i think at this i very early stage, we can start to look— very early stage, we can start to look at _ very early stage, we can start to look at some — very early stage, we can start to look at some of— very early stage, we can start to look at some of the _ very early stage, we can start to look at some of the lessons - very early stage, we can start toi look at some of the lessons that these _ look at some of the lessons that these failures— look at some of the lessons that these failures have _ look at some of the lessons that these failures have for _ look at some of the lessons that these failures have for the - look at some of the lessons that - these failures have for the european union _ we can speak to susannah streeter, head of money and markets at the investment service hargreaves lansdown. welcome. let's focus on credit suisse. is there a real risk that it

could go bust. �*? suisse. is there a real risk that it could go bust. ? i suisse. is there a real risk that it could go bust-— could go bust. ? i think there is curowin could go bust. ? i think there is growing concern _ could go bust. ? i think there is growing concern about - could go bust. ? i think there is growing concern about how - could go bust. ? i think there is. growing concern about how robust could go bust. ? i think there is- growing concern about how robust the bank is, particularly when we hear swiss authorities talking to the bank management to try and work out the way forward and alarms have been raised at least one other time, one other government asking swiss authorities to take action and try and restore confidence. the bank had already been experiencing problems, but what's happened right now with this banking route and concerns about the impact of the silicon valley bank collapse is that investors are voting with their feet and exiting positions they think are too risky. that seems to be the case with credit suisse right now. there are plans for if the worst scenario

does emerge, and orderly exit that was set up. we haven't had a need to see this, and certainly, before we get to that point some kind of backs drop in terms of stopping another deposit leaving. help drop in terms of stopping another deposit leaving.— deposit leaving. help us to understand _ deposit leaving. help us to understand what _ deposit leaving. help us to understand what that - deposit leaving. help us to i understand what that means deposit leaving. help us to - understand what that means in deposit leaving. help us to _ understand what that means in layman �*s terms? understand what that means in layman 's terms? ~ ., �* , understand what that means in layman 'sterms? ~ . �*, ., ,, , understand what that means in layman 'sterms? . . �*, . ,, , ., 's terms? what's happened is that the bank has _ 's terms? what's happened is that the bank has gone _ 's terms? what's happened is that the bank has gone back— 's terms? what's happened is that the bank has gone back and - 's terms? what's happened is that | the bank has gone back and looked 's terms? what's happened is that i the bank has gone back and looked at the bank has gone back and looked at the way we've analysed our accounts, and perhaps we haven't spotted where more the risky business have been. it's unclear exactly the full detail, but of their risk management is something to be desired, and that is something to be desired, and that is certainly sparking fresh concerns about what's happening at credit

suisse. that's why you're seeing this fight today, but also the fact that one of the investors at saudi national bank when it raised capital so that it couldn't actually invest any more in the bank because of regulatory concerns. that little worries that there wasn't any kind of easy from this situation credit suisse found itself in. what we're hearing now is situations taking place to come up with some form of reassurance to stop an exodus of deposits from the bank.— reassurance to stop an exodus of deposits from the bank. we've been talkin: deposits from the bank. we've been talking about _ deposits from the bank. we've been talking about this _ deposits from the bank. we've been talking about this for _ deposits from the bank. we've been talking about this for a _ deposits from the bank. we've been talking about this for a number - deposits from the bank. we've been talking about this for a number of i talking about this for a number of days now. a lot has been talked about about the interest rates being hikes two. help us understand the link with what we're seeing now. that affects the value of bond

holdings, so they drop the value as a result. these banks actually bought a lot of these bonds, hoping to get a higher return over. effectively, it used the disc deposits to make this return. it still had to said them anyway, and that's where we saw this accident of deposits —— exodus. the worry is other banks are perhaps sitting on losses. that's not a problem if they don't have to sell them. it is a problem if they're forced to sell them because deposits are leaving. that is why there is so much nervous is about it. right susanna, really

good to get your clarity. susanna streeter from hargreaves lansdown, streeter from hargreaves la nsdown, thank streeter from hargreaves lansdown, thank you. the uk's finance minister, jeremy hunt, has delivered his first spring budget as chancellor — designed to get people back to work and promote economic growth. he began by quoting forecasts from the independent office for budget responsibility, which sees inflation falling to 2.9% by the end of the year. it no longer sees the uk entering a recession this year, though it predicts that the economy will shrink by 0.2%. that's an improvement on the 1.4% contraction projected last november. mr hunt also said the uk would grow by 1.8% in 2024 and 2.5% in 2025. well, this chart shows you the difference between the obr's forecasts in november and now, with only a modest change in the trajectory of growth. the uk's post—pandemic economic

recovery has been sluggish. as we can see from this graph, it's the only g7 economy that is still smaller than before the covid pandemic, even after growing 4% last year. here's mr hunt on how he plans to change that. i delivered that today by removing obstacles that stopped businesses investing, by tackling labour shortages that stop them recruiting, by breaking down barriers that stop people working and by harnessing british ingenuity to make us a science and technology superpower. so, as we've heard, mr hunt wants to boost productivity by getting people back into the workplace, with incentives like extended childcare and changes to pension tax. the cost of childcare in the uk is among the most expensive in the world — third only to switzerland and new zealand. at the moment, the average full—time nursery place for a child under two costsjust under £15,000 or $18,000 a year.

that means a couple on an average income in the uk will spend 29% of that on childcare — that's according to data from the oecd. in the us, a couple in the same position will pay i9% of their income on childcare, while in germany, it'sjust 1% due to government subsidies. the uk government also wants to keep over—50s in the workforce. they plan to do this with pension tax reforms by increasing the free yearly allowance for pension pots from £40,000 pounds pots from £40,000 or $48,000 to £60,000. until now, there's been a £i.7 million limit on how much people could put in their pensions savings over a lifetime before paying tax. that cap will now be scrapped. here's sir steve webb, former

minister of state for pensions. people are being quite shocked because — people are being quite shocked because we got so used to the idea that tax— because we got so used to the idea that tax breaks on pensions would be cut every— that tax breaks on pensions would be cut every year and prior to everybody, there was speculation of taxing _ everybody, there was speculation of taxing limits and so on, and year after— taxing limits and so on, and year after year. — taxing limits and so on, and year after year, this is a screeching u-lum — after year, this is a screeching u—turn. partly driven by the doctors _ u—turn. partly driven by the doctors. there is an argument that says senlor— doctors. there is an argument that says senior doctors have been retiring — says senior doctors have been retiring early because of taxes and he seems — retiring early because of taxes and he seems to have dealt with that problem — let's get the verdict of the influential institute for fiscal studies. its director, pauljohnson, has told the bbc that he does not think these measures will be effective in getting people back into the workforce. he's tweeted that the pension reform... the obr has said that "the increase in labour supply —

or people coming back into work — as a result of the policies announced in this budget is very uncertain". here's the bbc�*s business editor, simonjack, on what that means for uk businesses. something they hoped... scheduled from april the 1st. that's the rate of tax paid on profits over £250,000. the government says only 10% will pay that rate. to soften the blow, the chancellor will allow companies to deduct every pound they invest in new it, new plants, new machinery from their profit. this means a more companies invest, the less tax they will pay. this new scheme has almost promised —— only promised for three years. well, let's get the reaction

to the budget of the opposition labour party. here's its leader, sir keir starmer. after 13 years of tory sticking plaster — after 13 years of tory sticking plaster politics, no growth for many, — plaster politics, no growth for many, being asked to pay, working people _ many, being asked to pay, working pebble are — many, being asked to pay, working people are entitled to ask, am i any better— people are entitled to ask, am i any better off— people are entitled to ask, am i any better off than i was before? and after _ better off than i was before? and after 13 _ better off than i was before? and after 13 years, with no excuses left, _ after 13 years, with no excuses left, nobody left to blame, no additional answers, the resounding answer— additional answers, the resounding answer is _ additional answers, the resounding answer is no, and they know it. so, those are some of the measures to help tackle growth. but will it work? while the uk will escape the technical definition of a recession — two consecutive three—month periods of negative growth — once inflation is taken into account, incomes are expected to fall by 5.7%. and the obr is warning that living standards will not recover to pre—pandemic levels until at least 2027. here's the chair of the obr, richard hughes.

backin back in november, we thought living standards— back in november, we thought living standards would _ back in november, we thought living standards would fall— back in november, we thought living standards would fall by _ back in november, we thought living standards would fall by 7% _ back in november, we thought living standards would fall by 7% because i standards would fall by 7% because inflation _ standards would fall by 7% because inflation was — standards would fall by 7% because inflation was outstripping _ standards would fall by 7% because inflation was outstripping growth. i inflation was outstripping growth. we think— inflation was outstripping growth. we think the _ inflation was outstripping growth. we think the fall _ inflation was outstripping growth. we think the fall will _ inflation was outstripping growth. we think the fall will be _ inflation was outstripping growth. we think the fall will be only- inflation was outstripping growth. we think the fall will be only 6%,| we think the fall will be only 6%, but that's— we think the fall will be only 6%, but that's snu— we think the fall will be only 6%, but that's still historic _ we think the fall will be only 6%, but that's still historic two—year. but that's still historic two—year fall and — but that's still historic two—year fall and not— but that's still historic two—year fall and not something - but that's still historic two—year fall and not something we've i but that's still historic two—year. fall and not something we've seen since _ fall and not something we've seen since we _ fall and not something we've seen since we started collecting - since we started collecting records back in_ since we started collecting records back in the — since we started collecting records back in the 1950s. _ this fall in real—term wages has sparked widespread industrial action. today, 40,000 workers went on strike in disputes over pay — including junior doctors, civil servants, tube drivers, and teachers in england. joining me is our uk political correspondent rob watson. joins us live. i've been going through lots and lots of figures, but this was basically a budget to get people back into the workplace. you've been down westminster all day, what's the reaction been? the reaction has _ day, what's the reaction been? tue: reaction has been day, what's the reaction been? tte: reaction has been fairly day, what's the reaction been? tt9:

reaction has been fairly muted. day, what's the reaction been? tt9 reaction has been fairly muted. with all of these things, when you carry out one of them, things grow by tweaking the way the market works. you only really know whether they're going to work in a few months. you can obviously see there's a certain amount of scepticism about how much effect they will have had from those clips you heard before you came to me. i think stepping back from all this is that it seems that there's really a sprinkling of good news about the british economy, that inflation is going down and it probably won't go into recession. there is a vast amount of bad news. growth rates here look like they will be very anaemic compared to the united states and the euro zone. there's going to be more austerity on public spending when people already feel as though written's public services are crumbling. then

there was what we heard, that the statistic about dramatically falling living standards since the 1950s. realtor wages that the fall... —— real term wages, the government wanted a budget stably after the turmoil of last year. have they delivered on those terms? yes, i and i think the conservatives _ delivered on those terms? yes, i and i think the conservatives hope - i think the conservatives hope that they can sell the message steady as you go, but what they are going to be up against is how people feel in the real economy. will they really feel as though this is a country on the right direction. or will they take labour's you and think, after 13 years, ifeel worse take labour's you and think, after 13 years, i feel worse off? we take labour's you and think, after 13 years, ifeel worse off? we know how the two parties will manage that

message, conservative sticking with it. "we've been through difficult times." main opposition urging people to step back and say, hang on a minute, just look at this, look at the statistic, look at the growth, look how we relate to other countries. do you really want more of the same? rob countries. do you really want more of the same?— countries. do you really want more of the same? countries. do you really want more ofthe same? : :, :, of the same? rob watson, good to get our of the same? rob watson, good to get your analysis — of the same? rob watson, good to get your analysis. thank _ of the same? rob watson, good to get your analysis. thank you. _ pakistan's main opposition leader, imran khan, was an international cricket star—turned—political. now it seems the sport may have given him a temporary reprieve from the authorities. security forces in lahore have suspended their attempt to arrest the former prime minister to avoid disrupting a major cricket tournament. the operation won't resume until after the pakistani super league final, taking place in lahore on sunday. it followed pitched battles between security forces and supporters of mr khan outside his residence in the city of lahore. the confrontation began on tuesday when police tried to arrest the former prime minister

forfailing to appear in court our correspondent caroline davies sent this report from mr khan's residence. police have now left the stretch outside the park outside his home. the police have left, but the remnants have—nots. the chargers remains. we know from eyewitnesses that there were rocks and sticks used by the pti supporters. we also know the police used water cannons and tear gas. you can still sense in the air and and tear gas. you can still sense in the airand the and tear gas. you can still sense in the air and the back of your eyes and throat. this was because the police arrived yesterday afternoon, saying they attended to arrest mr khan. he didn't turn out to multiple court appearances. khan. he didn't turn out to multiple courtappearances. imran

khan. he didn't turn out to multiple court appearances. imran khan said he was worried about his own safety. you've heard today from the minister of information for prudentjob that the police operation has been temporary suspended —— punjab. this sort of disruption has met the city... sort of disruption has met the ci ~ , :, , , protesters chanting. uzair younus is the director of the pakistan initiative at the us think tank, the atlantic council. he says the authorities often use pakistan's love of cricket to deal with political problems. cricket has become a convenient excuse over the last few days in lahore, first to stop imran khan and his political party from having their rallies, which is their constitutional

and democratic right, and now to pull back the police. the police has been pulled back primarily because of the court's interventions and also because of the fact that over the last 24 hours or so, their ineptitude and their repression was on full public display, so it became very challenging for the government to maintain this stance. but more importantly, we should not lose sight of the fact that this ongoing repression and attempts to arrest imran khan are part of a long—standing issue in pakistani politics, which has to do with the military�*s role in politics, it picking favourites, and then when these politicians become too good for their own good, in the sense that they start showing their eyes to the military, they are tried to be cut down to size. what imran khan right now is basically showing let's remind ourselves about imran khan's journey from pitch to politics. the former cricket star, turned politician, was pakistan's prime minister for four years from 2018, until he lost office in april 2022 after a no—confidence vote in pakistan's parliament. since then, he's held

a series of rallies attended by thousands calling for fresh elections. he claims the government does not respect the rule of law. his lawyers say he's facing up to 80 legal cases, including the current arrest warrant for failing to disclose gifts from foreign dignitaries. mr khan says they're all politically motivated. so, how does imran khan want this resolved? adil shahzeb, a television presenter for dawn news in pakistan, explains. it will only be resolved if the government announces fresh elections, which i clearly don't see at the _ elections, which i clearly don't see at the moment. the economic downturn that pakistan _ at the moment. the economic downturn that pakistan is facing, the security— that pakistan is facing, the security situation that pakistan is facing. _ security situation that pakistan is facing, and this is what the government... untiland unless facing, and this is what the government... until and unless we have _ government... until and unless we have an _ government... until and unless we have an election announce very soon, this political— have an election announce very soon, this political polarisation and this conflict _ this political polarisation and this conflict will not go anywhere.

michael kugelman is the director of the south asia institute at the independent research organisation, the wilson centre. welcome. you've recently returned from pakistan. khan says this is politically motivated is politically motivated and wants an election. what's your assessment? pakistan is supposed to have a national election by the end of the fall. but indeed, the government has not yet committed to that. ever since khan was ousted, his main demand has been for early elections and more broadly for elections. i think if the government does not formally commit publicly to elections happening when they're supposed to happen, i think that could add to this rapidly intensifying instability. this

could add to this rapidly intensifying instability. as we witness what's _ intensifying instability. as we witness what's happening - intensifying instability. as we | witness what's happening with supporters out on the streets, i wonder in terms of the support for mr khan, how do you assess that in what we're witnessing on the streets? he what we're witnessing on the streets? : :. , what we're witnessing on the streets? : :, , :, :, streets? he certainly has a lot of that support. _ streets? he certainly has a lot of that support, but _ streets? he certainly has a lot of that support, but he's _ streets? he certainly has a lot of that support, but he's very - that support, but he's very polarised and we're talking about his past as a cricketer. he united the country as an athlete, but even very divisive as a politician. he is very divisive as a politician. he is very large amounts of support and i think that is expanded since he was ousted. at the same time, he has a lot of critics and unfortunately, some of his biggest critics happen to be those who are leading the country, including the upper echelons of the army leadership. that really puts khan as a diff —— at a disadvantage as he tries to return to power, whenever that takes place. return to power, whenever that takes lace. :, ,:, :,

return to power, whenever that takes lace. :, :, , : place. how important is the army's influence in — place. how important is the army's influence in all— place. how important is the army's influence in all this? _ place. how important is the army's influence in all this? it's _ place. how important is the army's influence in all this? it's very - influence in all this? it's very significant- — influence in all this? it's very significant. i— influence in all this? it's very significant. i think _ influence in all this? it's very significant. i think what's - influence in all this? it's very - significant. i think what's notable is that the army is defensive in ways it has not been for quite some time. imran khan has been able to put out this narrative that's drawn a lot of support from his followers and beyond that the previous army chief was behind his ouster. khan has blamed specifically senior members of the army and the intelligence agency for being behind his assassination attempt. we're starting to see open criticism of the army in ways that we have not in the past. i experienced this when i was struck byjust how much criticism there was of the security establishment in public forums. despite all that, the army continues to have a major role in politics, and quite frankly, i don't see that changing anytime soon.—

changing anytime soon. michael, director of _ changing anytime soon. michael, director of south _ changing anytime soon. michael, director of south asia _ changing anytime soon. michael, director of south asia institute . changing anytime soon. michael, | director of south asia institute at the wilson centre, thank you very much for your thoughts. don't go away. stay with us here on bbc news. hello there. it's been a week of big temperature swings — we started off monday with very mild air. tuesday and wednesday has been quite cold, but milder air will be pushing back in for tomorrow. first signs of change — this area cloud you can see working in across lincolnshire, and that weather watcher picture, well, that's this cloud pushing in across the uk at the moment. and the air is particularly mild to our southwest — that'll be coming our way overnight tonight and into tomorrow as well. now, maximum temperatures willjump upwards, from the 7—8 celsius many of us saw today to around 14—15 celsius tomorrow. a jump of around 7 celsius for some, so you will notice that change to much milder weather. that transition takes

place overnight tonight a bit of hill snow to parts of northern england and scotland. the snow lasting longest over the hills to the north of the central lowlands, and could causejust1—2 issues. otherwise, any snow will turn back to rain as that next batch of milder air pushes in across northern ireland, england and wales. by the end of the night, temperatures 8—10 celsius quite widely — no chance of seeing any snow with that. now for thursday, we'll continue that flow of southwesterly winds. now, for thursday, we'll continue that flow of southwesterly winds. weatherfronts, though, will be bringing some outbreaks of rain and some of the rain could be heavy enough to cause some localised surface—water flooding issues. the brightest weather in northern ireland, here, will see some heavy thundery showers pushing in through the afternoon, but at least there'll be a bit of sunshine. maybe a bit of brighter weather, as well, for a time across east anglia and the southeast of england. but probably one thing you'll really notice is the big jump in temperatures — highs of around 14—15 celsius through thursday afternoon. friday, we may well see an area of rain linger across east anglia and southeast england, but either way, further west, it looks pretty unsettled —

a lot of cloud around with some heavy bursts of rain, some of that rain potentially thundery. but it'll be very mild again — temperatures could hit 16 celsius in newcastle. now, for the weekend, the same area of low pressure with us initially. something of a drier, brighter slice of weather for sunday morning, ahead of the next weather system that comes in through sunday afternoon, so i think over the weekend, expect further outbreaks of rain at times. there'll be a lot of cloud around on saturday. best chance of seeing something a bit drier and brighter — sunday morning, before rain returns. and then, looking at the weather prospects into next week, it looks like we'll start to see colder air sink southwards again, so a return of some hill snow in northern scotland.

hello, i'm kasia madera. this is outside source. fears of a full—blown banking crisis, as shares in the swiss giant credit suisse plunge days after the collapse of america's silicon valley bank. 14 days of national mourning are declared in malawi, after more than 220 people are killed by floods and mudslides. and a small number of wolves settle in belgium for the first time in more than 100 years, as numbers rise across europe. to malawi now — where more than 200

people have been killed by tropical storm freddy, in what the country's president has called a national tragedy. six months of rainfall fell in six days, causing rivers to burst their banks and unleashing mudslides. survivors have been rescued from trees and rooftops, but the country does not have enough helicopters and boats to reach all areas. the number of casualties is expected to rise, as rescue teams finally get to previously cut—off towns and villages. felix washon has been on the ground with the malawi red cross society. there are no resources at the moment. of course, the government has a bump in money to support, but the needs are so huge that there is need for international support. so what has made freddy so powerful? according to the world meteorological organisation, freddy alone has generated about as much accumulated cyclone energy as an average full north atlantic hurricane season.

it may have also broken the record for the longest—lasting tropical cyclone, at 34 days. the current record is held by a 31—day hurricane in 1994. it also followed an unusual path — freddy developed off the coast of australia, crossed the entire south indian ocean, and travelled nearly 5,000 miles to make landfall in madagascar and mozambique. here's the country's president, speaking earlier at a funeral for some of the victims. what cyclone freddy has done is to pull us back, even when we were trying to rebuild because of past tragedies. and i appeal to the international community to please look at us with such favour, because we need help. to make matters worse, malawi is also in the midst of the deadliest cholera outbreak in its history.

our africa health correspondent rhoda odhiambo has more from blantyre — one of the worst hit areas. it's a double tragedy— because if we look at the cholera outbreak that has been _ here in malawi for close to a year, blantyre and lilongwe are somel of the districts that are recording high cases and high deaths, - especially cases from people who are coming from densely—populated areas. now if we look at some of the areas that have been badly— affected by cyclone freddy, i these are also the areas that are densely populated — _ most of the schools are washed away, their homes are washed away, the roads and bridges. - so the little infrastructure - that was there, the decent toilets that were available, _ it gives cholera an opportunity to thrive — and therefore, the risk of cholera cases. being reported is quite high. the added problem with cholera after the destruction of cyclone freddie.

let's speak now to professor ralf toumi, from the grantham institute for climate change at imperial college, london. —— cyclone freddy. welcome, let's start with the amount of rainfall we are seeing — six months of rainfall injust six days. are seeing — six months of rainfall in just six days. what do you read into that, the severity of this rainfall? :. .. into that, the severity of this rainfall? :, ,, , :, into that, the severity of this rainfall? :. ~' , :, , , into that, the severity of this rainfall? :, ,, , , into that, the severity of this rainfall? :, , , �* rainfall? thank you, yes. so we've known for — rainfall? thank you, yes. so we've known for some _ rainfall? thank you, yes. so we've known for some time _ rainfall? thank you, yes. so we've known for some time actually - rainfall? thank you, yes. so we've known for some time actually that j known for some time actually that one of the clearest signals of climate change is actually the rain, rather than the wind speed, which is often the focus because as the oceans warm, there's a strong relationship between the amount of moisture and rain, and the temperature. so the rain would probably be traced back to the unusually warm temperatures. you mentioned the _ unusually warm temperatures. you mentioned the wind, as well, the

strength — does climate change impact on that, or are which is focused on the intensity of the rainfall, ratherthan focused on the intensity of the rainfall, rather than the strength? it's the rain doing the damage, often it's the wind but mostly it's the flooding, in this case, they are far away from the coast and not prepared for the flooding, the wind would not be the major cause of the damage. would not be the ma'or cause of the damaue. ~ :. .. would not be the ma'or cause of the damaue. ~ :, ,, :, damage. when we talk about climate chan . e damage. when we talk about climate change and these _ damage. when we talk about climate change and these tropical— damage. when we talk about climate change and these tropical storms - change and these tropical storms making them so much wetter, do they make them more regular? t making them so much wetter, do they make them more regular?— make them more regular? i think the consensus is — make them more regular? i think the consensus is that _ make them more regular? i think the consensus is that the _ make them more regular? i think the consensus is that the total _ make them more regular? i think the consensus is that the total number i consensus is that the total number of storms may stay the same or change very little, but the proportion of stronger storms will go up. so it looks to us like there are more storms, but actually the total number of storms will be the same, it'sjust total number of storms will be the same, it's just the stronger storms which make the headlines. find same, it's just the stronger storms which make the headlines. and the laces which make the headlines. and the places where _ which make the headlines. and the places where they _ which make the headlines. and the places where they have _ which make the headlines. and the places where they have the - which make the headlines. and the

places where they have the worst i places where they have the worst impacts — obviously we were talking about malawi and the cholera outbreak they have their — talk us through the countries that will be impacted to. the through the countries that will be impacted to-_ impacted to. the entire tropical belt is at risk _ impacted to. the entire tropical belt is at risk of _ impacted to. the entire tropical belt is at risk of tropical - belt is at risk of tropical cyclones, it always has been but basically, it's a matter of finding weak spots. so where the infrastructure is vulnerable, or where there are vulnerable populations, then a weather phenomenon could turn into a disaster, whether there is good resilience and the weather will come and pass, and communities will deal with it. but where they are already disadvantaged, like a lot of the tropics, they are certainly more at risk. :, , ,:, tropics, they are certainly more at risk. :, , �*, tropics, they are certainly more at risk. :, �*, :, , :, ,, tropics, they are certainly more at risk. :, , :, ,, :, risk. professor, it's a stark note on which to _ risk. professor, it's a stark note

on which to end _ risk. professor, it's a stark note on which to end but _ risk. professor, it's a stark note on which to end but thank - risk. professor, it's a stark note on which to end but thank you i risk. professor, it's a stark note i on which to end but thank you for your time. on which to end but thank you for your time-— at least 17 people have died in iran while celebrating a fire festival which the authorities disapprove of. officials say the deaths were caused by home—made fireworks. the bbc�*s parham ghobadi has the latest. "forfreedom", they sing, burning their headscarves. this is the fire festival in iran, an ancient persian ritual. a chance to dance. but this year, to also protest. scenes like these can potentially lead to your arrest in iran. dancing in public, especially without a hijab, is not tolerated by the islamic regime. like these girls, who were immediately arrested last week when their video went viral. they were released after making a public apology. but iran's generation z, who has been at the forefront of anti—government protest which swept the countrys in september, has shown no fear. in this video, verified by bbc persian, protesters in the capital,

tehran, threw handmade fireworks at the riot police as they tried to move in. the iranian authorities have given a muted response, focusing on the number of dead from the fireworks. translation: this year, - at least 26 people were killed, which is five more than last year. the protests started after the death of a young kurdish woman, mahsa amini, in police custody, for allegedly not wearing her hijab properly. "woman, life, freedom" is the chant. young people have not forgiven or forgotten. here in a northern city, they shout that iran's supreme leader, ayatollah khomeini, will be overthrown this year. they say they want an end to the clerical establishment. parham ghobadi, bbc news.

the us and russian defence ministers have spoken on the phone, after an american drone was brought down over the black sea on tuesday. the us's lloyd austin says he told his russian counterpart that the us would continue to fly "wherever international law allows". russia's foreign minister earlier said the us had no business being in the area. let's listen to some of what lloyd austin had to say. as i've said repeatedly, it's important that great powers that be models of transparency and communication. and the united states will continue to fly and operate wherever international law allows. and it is incumbent upon russia to operate as military aircraft in a safe and professional manner.

lloyd austin saying they will continue to fly wherever international laws allow. we can cross live to washington, and our correspondent there, nomia iqbal. the us is keeping its line, russia keeps its line. what else did we hear from keeps its line. what else did we hearfrom lloyd keeps its line. what else did we hear from lloyd austin? keeps its line. what else did we hearfrom lloyd austin? tt keeps its line. what else did we hear from lloyd austin?- hear from lloyd austin? it was interesting _ hear from lloyd austin? it was interesting when _ hear from lloyd austin? it was interesting when he _ hear from lloyd austin? it was interesting when he talked - hear from lloyd austin? it was i interesting when he talked about hear from lloyd austin? it was - interesting when he talked about the conversation he had with his russian counterparts, because russia had been saying prior to that there hadn't been any high—level contact but they were ready for constructive conversations. but it doesn't sound like there was any kind of, like, not constructive but it must�*ve been an uncomfortable conversation because the defence secretary also says that he doubled down on everything that he said, the criticism he'd made about it, he said that what russia did was dangerous, reckless, hazardous and unprofessional. he also said that this was part of a pattern of russian aggression. the other thing that came out of the conference which general millie talked about

was what's happened to this drone. he doesn't think it'll be recovered, given that it's pretty hard to get out of the black sea. he was asked if there was any intel compromised — he said there's probably not a lot to recover, but if there was anything that was lost that was sensitive, then they're ok with it because they've taken precautions to make sure that the russians couldn't get a hold of anything sensitive — i assume that means they've wiped software and that it also hit the sea so hard that it smashed into pieces. but they have now had those high—level contact talks. america obviously does not want to have any kind of direct confrontation with russia. fist kind of direct confrontation with russia. : :. . f kind of direct confrontation with russia. : :, , j ., ~ russia. at least they're talking, . iven russia. at least they're talking, liven the russia. at least they're talking, given the complete _ russia. at least they're talking, given the complete breakdownl russia. at least they're talking, i given the complete breakdown in relationships and relations following russia pots full scale invasion of ukraine. butjust in terms of whether this was

accidental, it was spoken of as reckless yesterday, what's more on that? , :, �* reckless yesterday, what's more on that? y :, �* :, , reckless yesterday, what's more on that? y. �* :, , that? they aren't really saying either way _ that? they aren't really saying either way what _ that? they aren't really saying either way what they - that? they aren't really saying either way what they really - that? they aren't really saying i either way what they really think. they're saying that we're still trying to work out which it was intentional, which was unintentional. what's interesting is that the us state department spokesman said earlier today was that russia did what was likely an unintentional act. you hearfrom the department of defence saying it was dangerous, unprofessional — but they aren't saying exactly what they think russia did on purpose. so they do say that they have images and videos from the incident, and unless we can see them, we have to go by what the officials say. i'm sure they'll release the videos and pictures to give a clear understanding of exactly what they think russia did.— think russia did. know mia iqbal, thanks very _

think russia did. know mia iqbal, thanks very much. _ stay with us on outside source — still to come... more on the uk's budget, as free childcare is expanded in england to cover children from nine months old. here in the uk, a number of cliffside homes in norfolk have been lost to coastal erosion. one resident is even trying to save his property by moving it. here's jo black. for decades, this part of the norfolk coast has been slipping away. but the recent bad weather and high tides caught residents in hemsby by surprise. over the weekend, chalet—style houses started to crumble or were totally demolished before the water could take them. sue lost her home. she knew erosion was a problem but didn't think this would happen so soon. the benefits of seeing that every

day, the sun and the water... and like i said, 99% of the time, the erosion was very, very slow. it was a very unique place to be. when lance martin moved here in 2017, he had 50 metres of sand dune behind his property. a year later, he dragged his house forward, but it's still unclear if he can do this again to escape the threat of the sea. if this goes... mm. ..this is a devastating moment, isn't it? it will be devastating, and i'll shed a tear for a minute or two, then i'll pack my bags and move on. we're actually demolishing people's homes, you know, whether it be your second home oryour main home. and i do really feel sorry for these people, but obviously, you know, safety comes into play. in the last ten years, around 20 properties have gone from these dunes and now access to another 20 homes could be under threat if the damage to this road gets any worse. 1,900 tonnes of rock will be brought in to slow the erosion,

a temporary measure, with a bigger wall of rock planned for the future. the government has allocated £36 million over six years in places like north norfolk to help communities adapt to a changing climate. but for some, the dream of living next to the sea is now over. jo black, bbc news, in hemsby. this is outside source, live from the bbc newsroom. our lead story is... aslump in a slump in the shares of the swiss banking giant has sparked fears of a full—blown crisis in the sectorjust days after the collapse of america's silicon valley bank. let's return to the uk budget now — and the expansion of free childcare to encourage more parents to return to work. free childcare of 30 hours a week is being extended

to cover 1—2—year—olds. the scheme will be phased in from next april, but will only be fully implemented by september 2025. our political correspondent alex forsyth has been meeting parents in the west midlands to see what they think of the news. few parents would have been jumping forjoy over the cost of childcare of late. so, at this baby sensory group in west bromwich, today's announcement was broadly welcomed. # say hello... many women here who want to work know the struggle ofjuggling that with childcare costs. i worked out that to go back three days i couldn't actually afford the childcare for three days, so i had to go back four to put her in nursery forfour, but then i had that mum guilt of leaving her. so hopefully, it will actually help. but sarah, a teacher keen to return to herjob, is frustrated that she will have to wait until next september before she sees any benefit. in that year, however we going to afford to be able to put her in nursery for some days

a week so i can go back to work? so, it's quite difficult, really. but announcing this sounds really promising. in nearby wasall, this nursery is working out what the change will mean for them. this is already a sector under strain, facing rising costs and staff shortages. director debbie is concerned that even though the government is increasing the funding for free childcare hours by 30%, they will be left short. i think it will close more nurseries than it will save, because they won't be able to afford to keep running. even with that extra money that the chancellor... ? not enough, 30% will not cover the costs. she has already decided that here they won't reduce the number of staff for younger children, one option announced today to try to ease pressures. they're very vulnerable at two and it's going to affect the workforce as well, it's extra pressure, having that one extra child per adult. not far away, this town was named

by the chancellor as one of those in line for regeneration. cutting childcare costs was one element of a budget meant to boost the stagnant economy. the wider west midlands was given special status to attract investment. but at this martial arts club in west bromwich, some challenges feel more immediate. here, the extended help with energy bills is welcome, as is the promise of falling inflation, but the reality now is still tough. we've ended up paying £575 and gone up to £1,100 a month in rent. so your rent has doubled? yeah. how is that affecting you? hard work at the minute, because i can't afford to eat. i feel like sometimes a lot of the food at college is also quite expensive so i am struggling moneywise in that situation because things have gone up in price. the club leaders are hopeful for the future, however. we try to create an environment where people see opportunity, i even when you're in an area such as west bromwich in the west i midlands which does not have a lot of prosperity compared _

to some other areas. some economic optimism might have been the tone the chancellor was trying to strike. the question, though, is whether his budget leaves people feeling better off. alex forsyth, bbc news, west bromwich. the number of wolves in europe is increasing, as is the area in which the animals roam. some people including conservationists welcome the rise. but others, especially farmers, are worried. around 19,000 wolves are thought to be living across 28 european countries. the impact they have on farmers has led some members of the european parliament to push to reduce the legal protections presently in place for wolves — asjessica parker reports. on heathland in the east of belgium, a pack of wolves is on patrol, curious about a camera set up to track them. searching for signs of wolves in the area, jan, a researcher,

knows exactly what to look for. so, this is wolf faeces? this is wolf faeces, yeah. what remains after the rain is just some hairs of the prey. why are their numbers growing in europe and why are they back in belgium — for the first time in over 100 years? the reason they are back is mainly legal protection. from the early �*90s, really a lot has happened in europe and the wolves really started to disperse all over the continent. the wolves sometimes roam here in this forest, and this is one of the cameras that is keeping an eye on them. there's up to 40 of these across this part of eastern belgium and it tracks the wolves�* movements, their well being, whether they might have been injured, as well as their numbers throughout the year. but also traceable are the rising attacks on livestock that's led eu lawmakers to challenge the wolves�* protected status. joan, a farmer, says he's lost dozens of sheep and that current compensation fails to cover

the true cost. every morning when we look through the field, you are afraid to find some sheep killed. some people might say you just need to build a betterfence. yes, we can use more wires, use more sticks, but i don't think — a wolf—proof fence exists. the wolf is so smart, he over runs every fence. here, in its jaws, a wolf holds a baby wild boar. its mother gives chase but it's too late. wolves are predators, with warnings their growing numbers in europe cannot go unchecked. here we have another wolf print. but why are they a positive thing? why is it positive that they're back? well, first of all, of course, you need to maybe also ask if everything has to have a positive effect on the way we see it as humans. some animals alsojust have a right to exist, notjust because we find them useful.

these evasive creatures can be hard to spot, but across this densely—populated region, their presence is getting noticed. jessica parker, bbc news, belgium. we can speak to fiona mathews, the chair of mammal conservation europe, and a professor of environmental biology at the university of sussex. welcome — i'm talking about 19,000 wolves across 27 eu countries, just put this into context for us, is that a lot of wolves? obviously people are talking about it positively and negatively, butjust the numbers, how few were there before? :, :, , , , :, , before? no, really, this is a very small number— before? no, really, this is a very small number relative _ before? no, really, this is a very small number relative to - before? no, really, this is a very small number relative to their. small number relative to their historical population sizes. and the vast majority of that 19,000 are in the far east of europe, with some

also extending down to greece and italy. but certainly numbers in northern europe — you mentioned belgium in your report there — we are talking about a tiny handful of individuals at the moment.- are talking about a tiny handful of individuals at the moment. thank you for clarifying — individuals at the moment. thank you for clarifying that, _ individuals at the moment. thank you for clarifying that, but _ individuals at the moment. thank you for clarifying that, but they _ individuals at the moment. thank you for clarifying that, but they are - for clarifying that, but they are growing in numbers. is that positive? we talked about in the report that farmers are concerned, but talk us through the positive aspect of this initially popular well, i think first of all, it's a very good well, i think first of all, it's a very goo— well, i think first of all, it's a ve coo. :, :, :,, :, very good thing that native european wildlife is once _ very good thing that native european wildlife is once again _ very good thing that native european wildlife is once again flourishing. - wildlife is once again flourishing. we hear so many negative stories about the biodiversity crisis that perhaps for once, we should be grateful that something is actually seeming to do quite well, and thanks in part to the legal protection we've given it. and secondly, wolves are very important to our ecosystem. lots of people will be very familiar with the discussion about the

expanding population of deer and the potential damage that might do to woodland — really, there's one main predator which deals with deer populations, and that is a wolf. so the positive aspect of it, and is it just the legislation that has increased their numbers? are there other factors like ree wilding, for example? other factors like ree wilding, for examle? :, h other factors like ree wilding, for examle? :, �*, :, , other factors like ree wilding, for examle? :, �*, :, :, example? no, it's really down to the leuislature example? no, it's really down to the legislature which _ example? no, it's really down to the legislature which came _ example? no, it's really down to the legislature which came down - example? no, it's really down to the legislature which came down in - example? no, it's really down to the legislature which came down in the i legislature which came down in the 19905. it's legislature which came down in the 1990s. it's not really down to a ree wilding initiatives, and we even think that the designation of protected areas is not the key thing, it's all about illegal persecution and stopping that. so thing, it's all about illegal persecution and stopping that. 50 t persecution and stopping that. so i mentioned persecution and stopping that. sol mentioned that some farmers in particular are concerned about the impacts on their businesses and the way that they work — just in terms of how you get around that then, should the legislation be slightly

altered for farmers to maintain the numbers to what they need? how do you level that up then? t numbers to what they need? how do you level that up then?— you level that up then? i don't think legislation _ you level that up then? i don't think legislation should - you level that up then? i don't think legislation should be - you level that up then? i don't - think legislation should be changed at all, we already know from the scandinavian countries that the level of culling there is actually compatible with maintaining a viable population of wolves. i think rather what we need to do is help farmers and prepare farmers for the recovery of these animals. so things that we do no — we know two methods are effective in protecting wildlife from wolves. one is an electric fence, as opposed to a standard fence, as opposed to a standard fence, and the other is the use of livestock guarding dogs. but those things take time — time to be implemented, time to work with the local populations so people know what to expect, and they know how to take the steps necessary to protect themselves. so i think the problem at the moment, as you talk to

somebody and belgium or north france, they feel these wolves have popped up out of nowhere— we know this is happening... 9nd this is happening... and unfortunately _ this is happening... and unfortunately we - this is happening... and unfortunately we are - this is happening... and| unfortunately we are out this is happening... and unfortunately we are out of time, fiona, thank you very much. hello there. it's been a week of big temperature swings — we started off monday with very mild air, tuesday and wednesday has been quite cold. but milder air will be pushing back in for tomorrow. first signs of change — this area cloud you can see working in across lincolnshire, and that weather watcher picture, well, that's this cloud pushing in across the uk at the moment. and the air is particularly mild to our southwest — that'll be coming our way overnight tonight and into tomorrow, as well. now, maximum temperatures willjump upwards, from the 7—8 celsius many of us saw today to around 14—15 celsius tomorrow. a jump of around seven celsius for some, so you will notice that change to much milder weather. transition takes place overnight tonight and could bring a bit of snow to parts of northern england and scotland.

the snow lasting longest over the hills to the north of the central lowlands, and could causejust1—2 issues, otherwise any snow will turn back to rain as that next batch of milder air pushes in across northern ireland, england, and wales. by the end of the night, temperatures 8—10 celsius quite widely — no chance of seeing any snow with that. now for thursday, we'll continue that flow of southwesterly winds. weatherfronts, though, will be bringing some outbreaks of rain and some of the rain could be heavy enough to cause some localised surface—water flooding issues. the brightest weather in northern ireland, here, will see some heavy thundery showers pushing in through the afternoon, but at least there'll be a bit of sunshine. maybe a bit of brighter weather, as well, for a time across east anglia and the southeast of england. but probably one thing you'll really notice is the big jump in temperatures — highs of around 14—15 celsius through thursday afternoon. friday, we may well see an area of rain linger across east anglia and southeast england, but either way, further west, it looks pretty unsettled — a lot of cloud around with some heavy bursts of rain, some of that rain potentially thundery.

but it'll be very mild again — temperatures could hit 16 celsius in newcastle. now for the weekend, the same area of low pressure with us initially. something of a drier, brighter slice of weather for sunday morning, ahead of the next weather system that comes in through sunday afternoon. so i think over the weekend, expect further outbreaks of rain at times. there'll be a lot of cloud around on saturday. best chance of seeing something a bit drier and brighter — sunday morning, before rain returns. and then, looking at the weather prospects into next week, it looks like we'll start to see colder air sink southwards again, so a return of some hill snow in northern scotland.

hello, i'm kasia madera. this is outside source. fears of a full—blown banking crisis, as shares in the swiss giant credit suisse plunge, days after the collapse of america's silicon valley bank. britain's finance minister unveils his first spring budget — with big changes to childcare, pensions and benefits today, we build for the future. with inflation down, debt falling and growth up, the declinists are wrong and the optimists are right. we'll have analysis of the new chancellor's plans. also on the programme... police in pakistan halt their operation to arrest former

prime minister imran khan — after clashes between police and his supporters. we start with the troubled global banking sector. european markets have closed down more than 3%, spooked by a major sell—off of shares in the swiss banking giant, credit suisse. coming days after the collapse of us based silicon valley bank, it's prompted fears of a full—blown crisis in the sector. let's look at the damage at the close of the european markets today. shares in credit suisse plunged to a record low, falling 24%. that came after its biggest investor said it could not give the bank any more financial help. here in the uk, the insurer prudential tumbled 10 percent. and the high street bank barclays fell 8%. the plunge by banking stocks left london's ftse100 index

down almost 4%, its lowest level this year. today was the worst performance for the index, which lists the 100 largest companies on the london stock exchange, since the start of the covid—19 pandemic. so lets take a closer look at credit suisse. today saw the second day of sharp falls for its shares, after the swiss bank yesterday disclosed its auditor had identified "material weaknesses" in its financial reporting controls. its biggest shareholder is the saudi national bank, which holds almost 10% of the swiss bank. it now says it can't increase its stake on regulatory grounds. our business presenter ben thompson looks at credit suisse's growing problems. there are very specific reasons that credit suisse's finding itself in this position. you may remember the greensill scandal — it was caught up in that — there were big issues over mozambique, its investments there. it was also convicted last year in the summer of failing to prevent money laundering.

it unveiled a big turnaround plan, it announced a $4 billion loss last year. speculation, clearly, over its financial health, whether it could meet those repayments, whether it could meet those loans. and now, just the latest suggestions in its delayed company report that it was reporting of material weakness in its financial controls. picking up on those material weaknesses is victoria scholar, head of investment at interactive investor. it's five—year credit default swaps, which is essentially a measure of the cost of insuring against buying its bond. it gives you a clue about how risky its bonds are, have soared to a new record high. this week, it found material weakness in its financial statements and that it's been unable to stem outflows. but the latest is that its biggest backer, the saudi national bank, isn't going to be providing any further financial support and it won't be going above 10% in terms of its holdings. so, it was actually halted

after its second day of declines. confidence in the sector took another knock late on tuesday when the ratings agency moody's revised its outlook on the us banking system to "negative" from "stable", citing heightened risks for the sector. a spokesperson for the us treasury has said it's monitoring the credit suisse situation. in the past few minutes, the swiss central bank has issued a statement, saying it's ready to make liquidity or funds available to credit suisse. here's what the eu's commissioner for financial services told the european parliament in strasbourg earlier today. we can say the the banking sector is in a good shape. it has built up is resilience and it is supervised closely by national and european authorities. but i think at this very early stage, we can start to look at some of the lessons that these failures have for the european union. susannah streeter, the head of money

and markets at the investment service hargreaves lansdown gave me her analysis. i think there is growing concern aboutjust how robust the bank is, particularly when we hear that swiss authorities talking to the bank's management to try and work out the way forward. and alarms have been raised by at least one other european government, asking authorities in switzerland to take action to try and restore confidence. certainly the bank had already been experiencing problems. but what's happened right now with this banking rout and concerns about the impact of the svb silicon valley bank collapse and the impact on smaller banks in the us is that investors are really sniffing out weakness and voting with their feet exiting positions they think are too risky. and that certainly seems to be the case with credit suisse right now. so we'll have to really watch this space. there are plans for if the worst

scenario does emerge, a kind of orderly exit that was set up after the financial crisis. but we haven't had really a need to see this. and certainly what i would expect before we get to that point is that perhaps some kind of backstop being offered to a credit suisse in terms of stopping further deposits, leaving the bank. and when we talk about material weaknesses that were described in the report, just help us to understand what that means in layman's terms. well, certainly what's happened is that the bank has said we've gone back. we've looked at the way that we've analysed our accounts, and perhaps we haven't spotted where more risky bits of the business have been. now, it's unclear exactly the full detail of what they're referring to there, but certainly some of their risk management left something to be desired, and that has certainly sparked fresh concerns about just what's

happening at credit suisse. and that's why you're seeing at this flight today, but also the very fact that actually one of the investors, a saudi national bank who invested in the bank when it raised capital through an equity raise late last year said it couldn't actually invest any more in the bank because of regulatory concerns. that led to worries that there wasn't any kind of easy exit from this situation credit suisse has found itself in. so certainly what we're hearing now is that negotiations will be taking place to try and come up with some form of reassurance to stop an exodus of deposits from the bank. and while all that's happening, of course, we've been talking about this for a number of days now, a lot has been talked about, about the interest rates being hiked, helped us to just understand the link with higher interest rates with what we're seeing now with these banks. well, when interest rates are hiked very, very quickly, that affects the value of bond holdings.

so they drop, the value of bonds drop as a result. and what happened is that some of these banks, including silicon valley bank, actually bought a lot of these bonds, hoping to get a higher return over a longer period of time. but effectively, it used the deposits that its customers had put into the bank to try and make this return. and then when interest rates have spiked, it meant that their bond holdings were worth a lot less, but it still had to sell them anyway. and that's where then we saw this exodus of deposits, this worry that actually the bank could turn insolvent, which it eventually did. and the worry is that perhaps other banks are sitting on big unrealized losses. that's not a problem. if they don't have to sell them, they can hold them to term. it is a problem if they're forced to sell them because deposits are leaving and that is why there is so much nervousness around at the moment. and the worry is that actually, that could happen more particularly

for regional banks in the united states. here in the uk, the finance minister, jeremy hunt, has delivered his first spring budget as chancellor — designed to get people back to work and promote economic growth. he began by quoting forecasts from the independent office for budget responsibility which sees inflation falling to 2.9% by the end of the year. it no longer sees the uk entering a recession this year, though it predicts that the economy will shrink by 0.2%. that's an improvement on the 1.4% contraction projected last november. mr hunt also said the uk would grow by 1.8 percent in 2024 and 2.5% in 2025. well this chart shows you the difference between the obr's forecasts in november and now, with only a modest change in the trajectory of growth.

the uk's post—pandemic economic recovery has been sluggish. as we can see from this graph, it's the only g7 economy that is still smaller than before the covid pandemic, even after growing 4% last year. here's mr. hunt on how he plans to change that. i delivered that today by removing obstacles that stopped businesses investing, by tackling labour shortages that stop them recruiting, by breaking down barriers that stop people working and by harnessing british ingenuity to make us a science and technology superpower. so as we've heard — mr. hunt wants to boost productivity by getting people back into the workplace. with incentives like extended childcare and changes to pension tax. the cost of childcare in the uk is among the most expensive in the world, third only to switzerland and new zealand. at the moment, the average full—time nursery place

for a child under two costs just under £15—thousand or $18,000 a year. that means a couple on an average income in the uk will spend 29 % of that on childcare — that's according to data from the oecd. in the us, a couple in the same position will spend 19% of their income on childcare. while in germany it's just 1% due to government subsidies. well the government plans to fix this, by introducing 30 hours of free childcare a week for children over nine months old. the uk government also wants to keep over 50's in the workforce. they plan to do this with pension tax reforms by increasing the free yearly allowance for pension pots from £40—thousand or $48,000 to £60—thousands. until now, there's also been a £1.

million limit on how much people can put in their pensions savings over ——1.07 a lifetime before paying tax. that cap will now be scrapped. here's sir steve webb, former minister of state for pensions. people are being quite shocked because we got so used to the idea that tax breaks on pensions would be cut every year and prior to everybody, there was speculation of taxing limits and so on, and year after year, this is a screeching u—turn. partly driven by the doctors. there is an argument that says senior doctors have been retiring early because of taxes and he seems to have dealt with that problem. here's the bbc�*s business editor, simonjack, on what the budget means for uk businesses. something they hoped... scheduled from april the 1st. that's the rate of tax paid on profits over £250,000.

the government says only 10% will pay that rate. to soften the blow, the chancellor will allow companies to deduct every pound they invest in new it, new plants, new machinery from their profit. this means a more companies invest, the less tax they will pay. this new scheme has only promised for three years. here was the leader of the opposition, sir keir starmer�*s reaction to the budget... after to the budget... 13 years of tories sticking plaster after 13 years of tories sticking plaster politics, or 13 years of no growth to the many, 13 years of being asked to pay, working people are entitled to as, "am i any better off than i was before? after 13 years with no excuses left, nobody left to blame, no sure artist, the resounding answer is no. and they know it.

so those are some of the measures to help tackle growth. but will it work? while the uk will escape the technical definition of a recession — two consecutive three—month periods of negative growth — once inflation is taken into account... incomes are expected to fall by 5.7%. and the obr is warning that living standards will not recover to pre—pandemic levels until at least 2027. here's the chair of the obr, richard hughes: back in november, we thought living i standards would fall by 7% because i inflation was outstripping growth. we think the fall will be only 6%, i but that's still historic two—yearl |fall and not something we've seen since we started collecting records back in the 1950s. this fall in real term wages has sparked widespread industrial action. today 40,000 workers went on strike in disputes over pay —

including junior doctors, civil servants, tube drivers, and teachers in england. our political correspondent rob watson has been getting the reaction from people outside westminster all day. he told us what they've been saying. the reaction has been fairly muted. with all of these things, when you carry out one of them, things grow by tweaking the way the market works. you only really know whether they're going to work in a few months. you can obviously see there's a certain amount of scepticism about how much effect they will have had from those clips you heard before you came to me. i think stepping back from all this is that it seems that there's really a sprinkling of good news about the british economy, that inflation is going down and it probably won't go into recession. there is a vast amount of bad news.

growth rates here look like they will be very anaemic compared to the united states and the euro zone. there's going to be more austerity on public spending when people already feel as though britain's public services are crumbling. then there was what we heard, that the statistic about dramatically falling living standards since the 1950s. the falling real term wages, the government wanted a budget stably after the turmoil of last year. have they delivered on those terms? yes, i think the conservatives hope that they can sell the message steady as you go, but what they are going to be up against is how people feel in the real economy. will they really feel as though this is a country on

the right direction. the right direction? or will they take labour's you and think, after 13 years, i feel worse off? we know how the two parties will manage that message, conservative sticking with it. "we've been through difficult times." main opposition urging people to step back and say, hang on a minute, just look at this, look at the statistic, look at the growth, look how we relate to other countries. do you really want more of the same? stay with us on outside source — still to come... we'll have reaction to events in pakistan where police have temporarily halted their operation to arrest former prime minister imran khan.

today, we have closed the book on apartheid and that chapter. more than 3,000 subway passengers were affected. nausea, bleeding, headaches and a dimming of vision, all of this caused by an apparently organised attack. the trophy itself was on the pedestal in the middle of the cabinet here. now, this was an international trophy, and we understand now that the search for it has become an international search. above all, this was a triumph for the christian democrats. of the west, offering reunification as quickly as possible. _ and that's what the voters wanted.

this is outside source live from the bbc newsroom. our lead story... a slump in the shares of the swiss banking giant has sparked fears of a full—blown crisis in the sector, days after the collapse of america's silicon valley bank. pakistan's main opposition leader, imran khan, was an international cricket star turned politican. now it seems the sport may have given him a temporary reprieve from the authorities. security forces in lahore have suspended their attempt to arrest the former prime minister to avoid disrupting a major cricket tournament. the operation won't resume until after the pakistani super league final, on sunday. it followed pitched battles between security forces and supporters of mr khan outside his residence in the city of lahore.

the confrontation began on tuesday when police tried to arrest the former prime minister forfailing to appear in court over corruption charges. mr khan says the charges are politically motivated. our correspondent caroline davies sent this report from mr khan's residence. police of dallas this stretch of mr and console. police have left but the charred remains of burnt chairs with a peek at xerox on the floor, you know from eyewitnesses that there were rocks and sticks used by their pti, which is mr and cons party supporters we also know the police used water cannons and tear gas. you can still sent to the air, you can fill in the back of your eyes, the back of your throat. this was because the police arrived yesterday afternoon saying they intended to arrest mr khan. they say he didn't turn out to multiple court

appearances. air khan has said he didn't appear because of security concerns with up he was worried about his own safety turning out to those court reports we've heard from the minister of information that the police operation has now been temporarily suspended. that is because the pakistan super glebe, at cricket super league going on and there is a semifinal tonight. at the moment the sort of disruption has meant that the city has at a standstill. supporters here have not suggested that they are going to go anywhere. he says authorities often use pakistan's love of cricket to deal with political problems. the level cricket has _ political problems. the level cricket has become - political problems. the level cricket has become an - political problems. the level cricket has become an exc . political problems. the level. cricket has become an exc kim political problems. the level- cricket has become an exc kim to stop the political party from having

rallies, which is the constitutional and democratic right. now the police, the police have been pulled back primarily because of the court intervention and also the fact that over the last 24 hours or so their ineptitude and their repression was on for public display so it became very challenging for the government to maintain this stance. but more poorly, we should not lose sight of the fact that this ongoing repression and attempts to arrest imran khan are of a long—standing issue in pakistani politics, which as to do with the militaries role in politics and picking favourites with it when these politicians become too good for their own good and the sense that they start showing their eyes to the military, they tried to be cut down size.— be cut down size. let's remind ourselves _ be cut down size. let's remind ourselves about _ be cut down size. let's remind ourselves about imuran - be cut down size. let's remind ourselves about imuran cons i be cut down size. let's remind - ourselves about imuran cons journey from pitch to politics. the former cricket star turned with a sense prime ministerforfour star turned with a sense prime minister for four years until he lost office in april 2022 after

no—confidence vote in pakistan's parliament. since then he's held a series of rallies attended by thousands calling for fresh elections. he claims the government does not respect the rule of law. his lawyers say he's facing up to 80 legal cases, including the current arrest warrant for failing to disclose gifts from foreign dignitaries. mr khan says they're all politically motivated. michael kugelman is the director of the south asia institute at the independent research organisation, the wilson centre. pakistan is supposed to have a national election by the end of the fall. but indeed, the government has not yet committed to that. ever since khan was ousted, his main demand has been for early elections and more broadly for elections. i think if the government does not formally commit publicly to elections happening when they're supposed to happen, i think that could add to this rapidly

intensifying instability. as we witness what's happening with supporters out on the streets, i wonder in terms of the support for mr khan, how do you assess that in what we're witnessing on the streets? he certainly has a lot of that support, but he's very polarised and we're talking about his past as a cricketer. he united the country as an athlete, but even very divisive as a politician. he has very large amounts of support and i think that is expanded since he was ousted. at the same time, he has a lot of critics and unfortunately, some of his biggest critics happen to be those who are leading the country, including the upper echelons of the army leadership. that really puts khan at a disadvantage as he tries to return to power, whenever

that takes place. how important is the army's influence in all this? it's very significant. i think what's notable is that the army is defensive in ways it has not been for quite some time. imran khan has been able to put out this narrative that's drawn a lot of support from his followers and beyond that the previous army chief was behind his ouster. khan has blamed specifically senior members of the army and the intelligence agency for being behind his assassination attempt. we're starting to see open criticism of the army in ways that we have not in the past. i experienced this when i was struck byjust how much criticism there was of the security establishment in public forums. despite all that, the army continues to have a major role in politics,

and quite frankly, i don't see that changing anytime soon. michael, director of south asia institute any thoughts you get in touch with me on twitter. bye—bye. widely we had temperatures double figures with its maneuvered out nine celsius colder than that. 14 yesterday just celsius colder than that. 14 yesterdayjust by celsius colder than that. 14 yesterday just by this celsius colder than that. 14 yesterdayjust by this afternoon. the trumpet vegesaurs brought with a colder air ended her and we've seen some snowfall over the moors. and here at low levels in the carlyle area. across parts of northern ireland, southern scotland, northern england we have seen snow getting down to quite low elevations. a risk of a few showers pushing across the midlands, southeast england the clearing later in the night. with

clearing later in the night. with clear skies following well, we're looking at a widespread and sharp frost in our towns and cities. temperatures widely between —2 and -6 c. temperatures widely between —2 and —6 c. where we see no showers is a risk of icy stretches to start the day on wednesday. otherwise it should be a fine start with lots of sunshine. in the west we will see clock ticking in northern ireland, outbreaks of rain spreading. might see a little bit of snow on the forward edge of the system. ultimately, the heirs turned a milder in northern ireland to any snow will be transient, it will turn back to rain for the however, during wednesday evening time we could well see some troublesome snowjust for a time across northern england and scotland. the snow potentially could come down to quite low elevations. it's across the hills and particularly to the north of the central belt where we will see these no lasting longest. as we go through wednesday night we're going to seat milder air pollution from the southwest. from the end of the night most places will at temperatures above freezing. thursday, friday and that weekend beyond this area of low

pressure is going to be in charge. the weather unsettled and with those south—westerly winds feeding and it will be turning a lot milder. that milder air will be arriving for most parts of the united kingdom on thursday, although it will be accompanied by brisk winds and heavy outbreaks of rain. temperatures will be climbing to around 12 to 14 degrees pretty wildly. miles of the start of a year but cold air hasn't quite left our shores. through friday of the weekend generally it is good to be on the mild side with outbreaks of rain at times without the they are never far away across the they are never far away across the north of scotland. there are never far away across the north of scotland. there is isaac could start moving southwards again early next week.

this is bbc news. we'll have the headlines and all the main news stories for you at the top of the hour straight after this programme. this week, a look back at some of our most fascinating historical journeys. from the desert canyons ofjordan... that would be impressive if we built that today, but that was built thousands of years ago. look at it! ..to the noisy streets of paris. driving a 2cv car is not easy. driving in paris is not easy. well, now you're making me nervous! and from the majesty of lady liberty...

it stood for freedom and for liberty to people all over the world. - ..to the drama of the kenyan bush.