this is bbc news — welcome if you're watching here in the uk or around the globe. i'm martine croxall. our top stories: european markets rally after the swiss national bank bails out credit suisse as the european central bank raises interest rates despite mounting turmoil in the banking system. the united states releases footage of what it claims is the collision between a us drone and a russia jet over the black sea. the chinese—owned social media app tiktok is banned on phones used by uk government ministers and officials. uk chancellor, jeremy hunt, insists his budget will get people back to work — and won'tjust benefit the rich saving for retirement. the leaders of south korea

and japan meet for the first time in 12 years, seeking to set aside historic differences. the european central bank has hiked interest rates by half of 1%, despite the impact of rising rates on the banking sector. it comes as central banks and governments around the world are nervously watching whether the crisis surrounding credit suisse will develop into a global banking crisis. shares in credit suisse have stabilised after the swiss national bank offered it a funding lifeline. so how did we get here? credit suisse was already in trouble before its biggest investor saudi national bank announced on wednesday that it could offer no more financial support.

that lead to its share price plummetting by 30%. late wednesday the swiss central bank said it would provide financial support to the tune of $54 billion us dollars. that has reassured the markets for now but concerns remain about contagion from the collapse of the two us banks last week. it is all quite complex, it is all quite complex, this. with me is our business presenter ben thompson. european central bank has put rates up european central bank has put rates up by european central bank has put rates up by half a 1%, what is the impact of that? it up by half a 196, what is the impact of that? , , . up by half a 196, what is the impact ofthat? , , . , up by half a 196, what is the impact of that? , , . , ., of that? it sends a message that inflation is _ of that? it sends a message that inflation is a _ of that? it sends a message that inflation is a big _ of that? it sends a message that inflation is a big concern - of that? it sends a message that inflation is a big concern for- of that? it sends a message that inflation is a big concern for the l inflation is a big concern for the european central bank, bigger than this banking crisis, we know that prices are rising around the world, caused in large part by what happened in ukraine, it has made food and energy prices soar and prices for everyone going up, and central banks have interest rates at

their disposal to try to tame inflation and it essentially makes it more, there's more incentive to save rather than borrow and it makes it more expensive to borrow so that is why they do it. there was expectation that the european central bank, the bank that controls interest rates for 19 euro zone economies, would hang off rising rates because of the turmoil we have seenin rates because of the turmoil we have seen in the banking sector but they have continued their plan about what is interesting if you look at some of the details and christine lagarde is speaking right now giving more detail about it, she says they are monitoring current tensions and they stand ready to respond if needed and that inflation has been too high for too long. we can take a look at her speaking and what she is saying is about how we tackle inflation and make sure that is in check before we worry about anything else. the current worry as far as credit suisse is concerned is specifically related to them, it is a specific

set of worries. nevertheless it has threatened the stability of the banking sector into the spotlight, given everything we have seen with the collapse of silicon valley bank and other questions in the lifeline that was needed for credit suisse. there has been an attempt to settle things down and to calm things down which the intervention of the swiss national bank will hopefully do for credit suisse, but what is the likely impact of the rate rise on the wider banking situation given that there is a concern that things can spread? that there is a concern that things can spread?— can spread? exactly. this is what the industry _ can spread? exactly. this is what the industry is — can spread? exactly. this is what the industry is calling _ can spread? exactly. this is what the industry is calling a _ can spread? exactly. this is what the industry is calling a solvencyl the industry is calling a solvency problem, do banks have enough ready cash at their disposal if their depositors want to withdraw? that is why we saw the swiss national bank stepping in and say, here's the cash if you need it. this is into why interest rate rises are so problematic for banks because essentially what happens is that as interest rates rise, it makes bonds

less attractive, and that is not normally an issue because you would get the money back when the bond matures at a later stage but what is happening now is they may have to sell those at a loss just to get the cash they need to give to depositors. so with interest rates rising and continuing to rise, that puts more pressure, like stretching an elastic band and seeing how far you can stretch it, so that is why there is no business but what we are seeing is a central bank, the european central bank, saying we have got our eye on it and we are ready to act, there is not an immediate problem, and our big focus is tackling inflation right now and thatis is tackling inflation right now and that is why we are rising interest rates to keep a lid on the rising prices —— that is why we are raising interest rates. prices -- that is why we are raising interest rates.— interest rates. thanks for “oining us. i'm joined now by dr mohamed el—erian, chief economic advisor for allianz and gramercy and president of the queen's college at cambridge university. thanks forjoining us. a very complex issue. it shows the global

nature of finance these days. what do you believe the underlying problems are in the banking sector generally? problems are in the banking sector aenerall ? , , .,, , generally? three underlying problems and one is long-standing _ generally? three underlying problems| and one is long-standing weaknesses, and one is long—standing weaknesses, the banks that have suffered the most are those that were fragile to begin with. credit suisse has had years of problems. secondly, very badly managed interest rate hiking cycle by the federal reserve, it was late and miss characterising inflation is transitory so they did not take their foot off the accelerator and then they have to do slam on the brakes. if you are driving behind someone doing that, it tends to create an accident. and then undue volatility because of bad communication by the federal reserve so the banks find themselves both hindered by their own weaknesses, structurally, and by the environment

in which they operate. haifa structurally, and by the environment in which they operate.— in which they operate. how much of this has the — in which they operate. how much of this has the hallmarks _ in which they operate. how much of this has the hallmarks of— in which they operate. how much of this has the hallmarks of what - this has the hallmarks of what happened before 2008 because that was supposed to be the point at which financial organisations got a grip on things to make sure they were more stable and that they had liquidity? you were more stable and that they had liuuidi ? ., ., _, . were more stable and that they had liuuidi ? ., ., . . ., , liquidity? you are correct. what is not in play — liquidity? you are correct. what is not in play and — liquidity? you are correct. what is not in play and that _ liquidity? you are correct. what is not in play and that is _ liquidity? you are correct. what is not in play and that is critical, - not in play and that is critical, and that is the big difference with 2008, is the payments and settlements system which a complex way of saying the oil in your car, you don't think about it, you don't even know where it is, but it is critical to the functioning of the whole economy. that is not in play but what is in place similar to 2008 is that lending conditions, lending standards, may be tightened which means there will be less credit available and therefore the real economy faces an additional headwind. economy faces an additional headwind-— economy faces an additional headwind. ., . ., headwind. how concerned are you about the banking _ headwind. how concerned are you about the banking system - headwind. how concerned are you about the banking system or- headwind. how concerned are you |

about the banking system or widely beyond the two us banks which collapsed last week and the problems with credit suisse this week? if collapsed last week and the problems with credit suisse this week? iii with credit suisse this week? if i am a with credit suisse this week? ifi am a depositor i am not concerned. as we saw over the weekend in the uk and as we have seen in the us and as we saw in switzerland, the banking authority knows the importance of avoiding a deposit run so they have moved very quickly to reassure us that the deposits are safe so as a depositor i'm not worried and that is really important. if i am a creditor or if i am stuck in a bank, i would be more worried because the business model itself is going to become less profitable —— if i own stock in a bank. regulations are going up in the global economy faces more headwinds so most of us are just depositors but if you could also be holding stock and bonds issued by banks, in that case i would be more worried.-

issued by banks, in that case i would be more worried. what action would be more worried. what action would ou would be more worried. what action would you like _ would be more worried. what action would you like financial _ would you like financial institutions around the world to be taking to make sure that things are studied permanently?— taking to make sure that things are studied permanently? manage where our studied permanently? manage where your balance — studied permanently? manage where your balance sheet. _ studied permanently? manage where your balance sheet. we _ studied permanently? manage where your balance sheet. we had - studied permanently? manage where your balance sheet. we had three - your balance sheet. we had three failures in the us last week and they happen quickly. they were all because of bad balance sheet management, every single one of them could have been avoided. they weren't and that is just bad management, so focus on the balance sheet and manage it well. most banks do that but the few who don't are a worry for the rest because people extrapolate from one bank to another. it extrapolate from one bank to another. , ., , ., another. it is really good to get our another. it is really good to get your wider— another. it is really good to get your wider perspective - another. it is really good to get your wider perspective on - another. it is really good to get your wider perspective on this. | your wider perspective on this. thanks forjoining us. the united states has released pictures of what it claims is the incident between a us drone and a russia jet. in these pictures you can see what is claimed to be the russian su—27 jet

approaching the drone. the russianjet then begins to release fuel as it passes. it then flies over the top of the drone. the russian jet then repeats this pass. these pictures are from the us air force. russia has denied us accusations that its jets acted recklessly in the incident on tuesday over the black sea. our defence correspondent jonathan bealejoins us from the newsroom. what really went on? what the us has released, what really went on? what the us has released. and — what really went on? what the us has released, and this _ what really went on? what the us has released, and this is _ what really went on? what the us has released, and this is edited _ what really went on? what the us has released, and this is edited footage i released, and this is edited footage that it has released, they say this interaction was going on for at least 30 minutes, so we are only seeing a snapshot of the moments when the fuel was dumped, it seems deliberately, on the drone, whether it was to try and make it go down, we don't know, or to disrupted

sensors, but we see the propeller blade being twisted after the second pass being shown, which interrupted the video feed. a drone is operated from the ground, remember, by a ground crew, and there is a live feed of whatever information it is sucking up and it always has a camera. it looks like this is backing up the us version of events, the story they are giving, they are, thenit the story they are giving, they are, then it is accurate, but the russians are saying the downing of the drone was not their responsibility, and the drone it made a sharp turn, but the only extraordinary move in this video is ijy extraordinary move in this video is by the russian jets and not the drone. fin by the russian 'ets and not the drone. ., ' by the russian 'ets and not the drone. . ' , , . , drone. on a different sub'ect, is the provision * drone. on a different sub'ect, is the provision we * drone. on a different sub'ect, is the provision we are _ drone. on a different subject, is the provision we are hearing - drone. on a different subject, is i the provision we are hearing from poland of some mig fighterjets to

ukraine, what is the thinking? if you remember, year ago, ukraine, what is the thinking? if you remember, yearago, there was a you remember, year ago, there was a suggestion that poland could send its older soviet era mig jets to ukraine and the polish said they would send them to ramstein air base in germany, and then a us donation to ukraine with f—16jets, but that was not acceptable to the us and the deal fell apart but what we have seenin deal fell apart but what we have seen in the last year is that countries willing to send western tanks, the appeals from ukraine for modern fighterjets, well, they have not got modern fighterjets, but at the moment we are hearing it will be four polish mig 29s that they will give and there will be more to come but it crosses a threshold although it does not mean you will see a flood of western countries like the

us and the uk offering to provide modern westernjets, as us and the uk offering to provide modern western jets, as we saw what happened with tanks. first of all soviet tanks given to ukraine from eastern european countries and eventually the west providing modern main battle tanks has happened but i do not think this signals that the west is going to start giving modern fighterjets to ukraine but this is part of the appeal that ukraine has made and it is going to help them, though not completely change the picture on the battle field, it will still be a superiority —— air superiority for ukraine. still be a superiority -- air superiority for ukraine. jonathan, thanks forjoining _ superiority for ukraine. jonathan, thanks forjoining us. _ a united nations commission of inquiry says that russia has committed war crimes and crimes against humanity in ukraine. in its first report, the commission said those responsible must be held to account, if not in a national court, then in an international one. the un commission does not have the power to prosecute, but it has identified individuals, and military units it believes are responsible.

erik mose, chair of the commission has been speaking in the last hour. we have not found that there has been a genocide within ukraine. this said, we are of course following all kind of evidence within this area, and we have noted that there are some aspects which may raise questions with respect to that crime, for instance, certain utterances in russian media which are targeting groups, but we have not yet formed any conclusion there. we will be continuing this further. joining us now from geneva is our correspondent imogen foulkes. tell us more about this report. if you work to look at the geneva conventions and look at what were violations of them, just about everyone is in this report. you have

indiscriminate attacks on civilians, on the infrastructure that is basic to human life, hospitals, power stations, you have execution of prisoners of war, you have torture, arbitrary detention, killing, killing of civilians, the illegal transfer of ukrainian children, into russia. and what is interesting and i have read a lot of these reports from un bodies looking at violations or alleged violations from syria to the democratic republic of congo, and very often the investigators say that these could amount to war crimes or crimes against humanity but here we have the investigators saying these are war crimes, they have very detailed evidence, they have very detailed evidence, they have a list of possible perpetrators both individuals and people in the military, and when i asked they say they also work on tracing the chain

of command, further up towards the people, in government, in moscow, who planned what this report says is a systematic violation, war crimes against humanity.— a systematic violation, war crimes against humanity. much more for them to be investigated _ against humanity. much more for them to be investigated but _ against humanity. much more for them to be investigated but what _ against humanity. much more for them to be investigated but what is - against humanity. much more for them to be investigated but what is the - to be investigated but what is the likelihood of any prosecutions happening? the likelihood of any prosecutions happening?— likelihood of any prosecutions haueninu? ~ , happening? the likelihood is quite hirh happening? the likelihood is quite hiuh for happening? the likelihood is quite high for some _ happening? the likelihood is quite high for some people _ happening? the likelihood is quite high for some people but - happening? the likelihood is quite high for some people but it - happening? the likelihood is quite high for some people but it takesl happening? the likelihood is quite| high for some people but it takes a while. we have seen that with former yugoslavia and syria but what i would say is that the legal avenues to prosecution for this kind of crime are much more than they were a few years ago. we have the universal jurisdiction it so that if somebody in the russian military, for example, was found to be in switzerland, even though the crime was not happened here, even though this person will not be a citizen of

switzerland, they could launch a prosecution as they have done over someone involved in the conflict in sierra leone, and convicted a few months ago, so that is possible. we know this inquiry will share its evidence including the list, very likely with, for example, the international criminal court which has the power to prosecute, so the avenues to prosecution and accountability are there. it will not be something that happens fast, though, i'm sure about that. imogen in geneva, thanks _ though, i'm sure about that. imogen in geneva, thanks for _ though, i'm sure about that. imogen in geneva, thanks forjoining - though, i'm sure about that. imogen in geneva, thanks forjoining us. - the uk government has banned the social media app tiktok from their phones. it comes amid security concerns because tiktok is owned by a chinese company. there've been claims that the data of tiktok users could be passed on to the chinese government — an allegation the company strongly denies.

the prime minister rishi sunak has been under pressure from some mps to follow the united states, and the european commission in banning the app from government devices. here's chancellor of the duchy of lancaster, 0liver dowden, announcing the move in the commons. mr speaker, this is a precautionary move. we know that there is already limited use of tiktok across government, but it is also good cyber hygiene. given the particular risk around government devices — which may contain sensitive information — it is both prudent and proportionate to restrict the use of certain apps, particularly when it comes to apps where a large amount of data can be stored and accessed. our technology reporter, shiona mccallum, joins me now. this has been mounting for some time, the pressure to do this, so what has tipped the balance? just to ressure, what has tipped the balance? just to pressure. the _ what has tipped the balance? just to pressure, the us _ what has tipped the balance? just to pressure, the us coming _ what has tipped the balance? just to pressure, the us coming out - what has tipped the balance? just to pressure, the us coming out and - pressure, the us coming out and saying they do not want government

officials to have tiktok on their phones and we have seen the european commission and council say the same thing, and the belgian and dutch governments as well, so this is worldwide, the issue, between the west and china, and these concerns, we have got phones with tiktok on them, we have e—mails and contacts and our data, so is that going into tiktok and then is that being fed back to chinese government? what can beijing do with it? there was a law passed in 2017 in china which says tech companies have got to comply with the communist party so if they ask for the data from people all across the world that could happen, and the concern is what that could do and what that would mean and what chinese powers but they have if they were to access this kind of secure information that is on government ministers phones.— ministers phones. these are state institutions _ ministers phones. these are state institutions that _ ministers phones. these are state institutions that are _ ministers phones. these are state institutions that are taking - ministers phones. these are state institutions that are taking this - institutions that are taking this move, so what about the idea of

banning us, members of the public from having it? i banning us, members of the public from having it?— from having it? i have spoken to --eole from having it? i have spoken to people on _ from having it? i have spoken to people on tiktok, _ from having it? i have spoken to people on tiktok, who - from having it? i have spoken to people on tiktok, who are - from having it? i have spoken to people on tiktok, who are living from having it? i have spoken to - people on tiktok, who are living and breathing the app which is very fine and people are on their four hours a day but they are not too bothered. they have not taken heed of whether or not the government or institutions globally are looking at this, but will the uk government be the one that trickles down? i'm not sure. if we had a ban on the up completely that would be a different story but it does not look like it just now and the concerns are about secure information about governments and institutions and also the apps can be allowed on personal phones because of course politicians are connecting to the electorate on tiktok and the former health secretary matt hancock is very popular on their and grant shapps, as well, he said he will continue to use it on his personal phone, so it is an issue for politicians to work

out if they want to be on the app but for the average person on tiktok i do not think it will make any difference just i do not think it will make any differencejust yet for i do not think it will make any difference just yet for the news organisations are also recognising the value of tiktok and the bbc organisations are also recognising the value of tiktok and the- organisations are also recognising the value of tiktok and the bbc is a case in point- _ the value of tiktok and the bbc is a case in point. yes, _ the value of tiktok and the bbc is a case in point. yes, we _ the value of tiktok and the bbc is a case in point. yes, we have - the value of tiktok and the bbc is a case in point. yes, we have grown i the value of tiktok and the bbc is a i case in point. yes, we have grown on tiktok ever— case in point. yes, we have grown on tiktok ever since _ case in point. yes, we have grown on tiktok ever since the _ case in point. yes, we have grown on tiktok ever since the war _ case in point. yes, we have grown on tiktok ever since the war in - tiktok ever since the war in ukraine, to connect and also to dispel misinformation out there, but of course a danish broadcaster took the step to take journalist should not be on this and whether the bbc and others make moves, to say not to have tiktok, we will wait and see. we will. thanks forjoining us. the leaders of south korea and japan are holding their first summit in 12 years, as they seek to set aside historic animosities. the talks will likely focus on regional security and north korea. it come hours after the north koreans launched an intercontinental ballistic missile. it landed outside japan's territorial waters. these pictures from the japanese ministry of defence show the likely tailfrom that missile.

0ur correspondent, shaimaa khalil has the details from tokyo. the south korean president has arrived at the offices ofjapan's prime minister for the start of the summit. this is a hugely significant moment. it means a new start, a new beginning in the relationship betweenjapan and south korea after years of tension. this visit by the president could not come at a more crucial moment, notjust for the two countries but for the whole region. in firing this intercontinental ballistic missile earlier today, north korea has shown why it is important for both japan and south korea to work closer together and show a united front. diplomatically this is quite significant, the first time that the south korean president is invited to japan for a bilateral summit in more than a decade. strategically, it is also quite important. these two countries face similar threats. north korea's development

of its nuclear programme, china, its expansion and military ambitions in the region, and trade, which dried up since 2019, when relations plummetted, because of a compensation dispute overjapan's wartime forced labour. last week the president said south korea was going to pay the victims and that japan wasn't even expected to give a further policy. this is a controversial decision and it angered many in south korea but here injapan it was hailed by the leadership and in the united states president biden said this was a ground—breaking development. remember, washington wants those two strategic regional allies to work closely together. there are still many issues to resolve between south korea and japan but the two countries are showing that they are willing to put their fraught history aside and work together on the threats they face in the present. there are hopes of a breakthrough in the pay dispute

between health workers and the government. unions representing hundreds of thousands of health staff in england, including ambulance workers, nurses and physiotherapists, are thought to be close to agreeing a new pay offer. the deal — which doesn't include doctors — could be announced as early as this afternoon, raising the prospect of an end to a series of nhs strikes that began before christmas. we have news of talks happening in scotland, national health is a devolved issue dealt with by the different nations in the uk, not by the westminster government, and we have a union called the gmp which represents ambulance crews and other nhs workers and they have accepted the latest pay offer from the scottish government. they will get an increase of 7.5% this year, 6.5% next year, and that means the threat of strike action by members of the gmb union has now been averted. we are expecting next week the result of a vote by the nurses union, the rcn, on the same offer in scotland.

richard branson's virgin 0rbit satellite launch company is pausing all operations with immediate effect. last month, the company said it was investigating the failure of its mission injanuary to send nine small satellites into orbit, from an airfield in newquay. newquay being in cornwall, which is in the south—west of england, if you are watching from abroad and you are not sure. a new banksy mural has appeared on the wall of a derelict farmhouse in the seaside town of herne bay in kent, uk. the mural, called morning is broken, shows a young boy opening curtains made of corrugated iron alongside a cat. however, it wasn't long before the piece, and part of the building, appeared to be demolished. the owners of the land said demolition work is currently being undertaken at the site.

very typical installation from that particular artist. much more on the stories including the ongoing effort to make sure that the banking sector is in a good state of health. hello there. it's a lot milder today than it was yesterday, but along with the milder air comes some rather wet and windy weather, particularly out towards the west. this is chorley in lancashire. some very soggy ground here and not a lot is set to change as we head through the rest of this week and into the start of next. a few brighter spells around, but it's going to be cloudy, mild and there's more wet weather to come in the forecast, too. this is today. some rain from this weather front across much of scotland. also a cold frontjust pushing eastwards very slowly across england. the south—westerly wind, brisk towards western coasts, is dragging in all of this mild air. so temperatures are a lot higher

than they were yesterday, but it's still cold across the far north of scotland. so, some outbreaks of rain this afternoon. sunny spells and showers across northern ireland, maybe a rumble or two of thunder. the best of the sunshine is really developing across northeast scotland, and still some sunny spells hanging on for the far south east of england. temperatures between 11—15c. so a lot milder than it was yesterday. and then through this evening and overnight, we've still got our weather front just giving a few outbreaks of rain across south east england at times. towards the north and the west, this is where we'll see the clearest of the skies. still some showers across much of scotland, but it's largely frost free as we head into the start of the day tomorrow, generally between 6—10c. now, there could be some more rain across the channel islands just moving into southeast england as we head through the morning. that will clear through the afternoon. elsewhere, a lot more sunshine around than today. it's still mild, butjust watch out for some showers that may well develop with the sunshine — and there could even be a rumble or two of thunder as well. low pressure is always close

by as we head through the weekend. and along with this weather front, we're likely to see some outbreaks of rain, i thinkjust moving into scotland for western coasts and also across northern ireland. rain, too, just moving in to wales, and there'll be some longer spells of rain here by the end of the day. more showers around on saturday than we're seeing on friday. the air is still mild. temperatures will peak between 11—15c. the south—westerly winds again picking up towards the end of the day, but turning more northwesterly on sunday, which means some cooler feeling air. it should be a lot drier on sunday, too. but there is another weather front approaching. temperatures a little lower, between 9—12c.

tackling sky—high inflation remains the ecb's priority. it presses ahead with a rate rise despite concerns over the banking system. and does the bail out for credit suisse clam fears of a new financial crisis? regulators and central banks rush to reassure markets. we'll get the latest live from new york. welcome to world business, i'm ben thompson.

tackling inflation is the ecb's most pressing concern. that's the message sent by the european central bank as it ploughs ahead with plans to raise rates, despite sluggish