has been a the uk where there has been a surprise fall in the rate of inflation. it's raised hopes of lower borrowing costs and has also hit the value of the pound as investors bet on bigger interest rate cuts from the bank of england. the annual rate of price rises eased to 1.7% through the month of september. that is down sharply from the august figure of 2.2% and a much bigger drop than was expected. this is all good news for consumers, who have been struggling with the cost of living but also for the bank of england, whose mandate is to keep inflation around that figure. that is the target, 2%. all of which will of course feed into their next interest rate decision, which is expected on the 7th of november. joni mitchell is

professor of economics at the university of the west of england. thank you forjoining us here on business needs. first question, what does this then mean for the uk? what does it mean for the interest—rate cuts? it it mean for the interest-rate cuts? . , , , . cuts? it was widely expected the bank of _ cuts? it was widely expected the bank of england - cuts? it was widely expected the bank of england would . cuts? it was widely expected l the bank of england would cut interest rates in november but by the end of this year we could see two more quarter percentage points cuts. that will mean people's mortgages will mean people's mortgages will get cheaper, it's also good news for the government because it means the cost of interest on government debt is likely to come down because government debt interest rates are also affected by the policy rate of interest set by the bank of england. so, on

interest rates it's pretty good news other than for those who are savers, people with cash in bonds or in the bank. they are likely to see lower return on their savings. one of the things that has remained sticky is service inflation. that's the one the bank watches closely because things like energy and food prices, there is not very much that can be done because they are global prices and they come down when global energy prices come down. whereas services is what the bank watches quite closely because that's a measure of in particular how much domestic production is seeing increases in prices. it's closely linked to weight pressure. all of them are moving in the right direction and that was the one that was looking sticky and the

bank was worried about, so it's big news i think that services is coming down alongside wages because it suggests that the labour market is not as tight as perhaps feared. you worried about weight pressure but it's also a good thing because it means people are able to switch jobs easily and get pay rises and so on. that balance looks like it is moving towards the bank being more relaxed about rate cuts. . ~ bank being more relaxed about rate cuts. ., ~ , ., , bank being more relaxed about rate cuts. . ~' , ., , . rate cuts. thank you very much, i rate cuts. thank you very much, j mitchell- _ rate cuts. thank you very much, 1 mitchell. let's _ rate cuts. thank you very much, 1 mitchell. let's cross _ rate cuts. thank you very much, 1 mitchell. let's cross to - rate cuts. thank you very much, 1 mitchell. let's cross to the - j mitchell. let's cross to the united states where the inflation outlook could be heading in the same direction as the uk after input prices fell by the most in nine months of the decreases in the cost of energy products and food. that is all based on those figures published later by the labour

market. the data of course is being followed so very closely. i know that import prices don't necessarily mean that they are going to feed three for consumer prices and production prices. what is the signal that people are looking at? what is the american economy telling us with this figure? it the american economy telling us with this figure?— with this figure? it doesn't necessarily _ with this figure? it doesn't necessarily feed _ with this figure? it doesn't necessarily feed through l with this figure? it doesn't l necessarily feed through but with this figure? it doesn't - necessarily feed through but it is still some good news when it comes to the economy. they seem a simple prices falling, the most in nine months down 4.4% and down to a reduction of cost of food and energy. this bodes well for the domestic inflation outlook which suggests inflation is muted, returning to the 2% target and keeping the fed on track to cut interest rates when it meets next month. the current expectation is there will be a cutter of about a quarter of the present.— cutter of about a quarter of the present. thank you very much indeed. _

the present. thank you very much indeed. well, - the present. thank you very much indeed. well, soaring| much indeed. well, soaring energy prices were one of the reasons for the global inflation problem and again, we've got good news on that front because a report that was released by the international energy agency says that despite the conflict in the middle east and all of that uncertainty, rather than an oil shortage, the world could have too much oil come next year. it also thinks we'll see peak demand forfossil thinks we'll see peak demand for fossil fuels thinks we'll see peak demand forfossilfuels at some thinks we'll see peak demand for fossil fuels at some point within the next decade as clean energy takes over. however, the iea is warning that much more investment in renewables is needed and they say it comes in at around 1.5 trillion dollars at around 1.5 trillion dollars a year to take us up to 2030. i spoke to its executive director. spoke to its executive director-— spoke to its executive director. so, for many countries _ director. so, for many countries around - director. so, for many countries around the i director. so, for many - countries around the world such as the uk or india or european

countries, so many countries around the world, they import energy. oil, natural gas and others. this is good news. why it is happening is there is a lot of new oil projects going to hit the market mainly coming from the us, canada, brazil, guyana, lots of supply production and the demand for oil is weaker and weaker. this is mainly as a result of china. the economy is becoming slower. in the past china was a major driver of oil and the major expansion of electric cars in the transport sector. so, we expect global oil demand peak before 2030 and this year and next year, global oil demand will be much weaker than

previous years. whereas this year we expect less than 1 million barrels a day. the taruet million barrels a day. the target for _ million barrels a day. the target for renewable - million barrels a day. the target for renewable energies that we triple the capacity come 2030. are we on target for that and what about those developing economies where access to electricity has either reduced or fallen away? what's gone wrong there? two so, we look at all the projects country by country in the years to come, the target for us is based on growth and based on current projects growth will be 2.7 times... just to put in context, the amount of new renewables especially solar and wind coming to market in the

next six years is equal to the entire power capacity of the us plus china plus india plus be used. the european aerospace giant airbus has announced it is laying off up to 2500 workers from its defence and space division. the firm said the redundancies were part of the redundancies were part of the restructuring plan. the division make satellites, spacecraft, fighterjets and spacecraft, fighter jets and drones. spacecraft, fighterjets and drones. webber said the cuts were in response to increased costs and competition from elon musk�*s spacex. to cars and a keyissue musk�*s spacex. to cars and a key issue at the paris motor show this week as the accusations that chinese electric car makers benefit from unfair subsidies from beijing. allowing them to sell cars abroad at rock bottom prices. theo leggett is at the show and asked the boss of the chinese ev maker whether they

get help from the government. first of all, we are a privately owned company. our ownership is very transparent. be listed in the us and hong kong. so, compared to the oem globally we are as transparent as any other company. secondly, the reason we are competitive is we have fought every year through the most competitive market in the world which is the chinese market. we competed with tesla, chinese brands as well. that competition, the operational efficiencies and our technology. so we are planning to bring technology to europe and i think it will benefit consumers and communities in europe as well. the european union has recently

introduced controversial tariffs on imports of chinese electric vehicles. how will that affect your company? europe is a long—term opportunity to expand. it's a long—term market that we need to continue to invest, continue to continue to invest, continue to develop by providing the best product, the best technology and best services. so, i think this is something that despite the tariff we have to continue to really build, improve and invest. so, iwould say it will present challenges, it will put pressure on the spot this is all part of doing business globally is a multinational company and we are looking at this from long term perspective.— are looking at this from long term perspective. what about production — term perspective. what about production in _ term perspective. what about production in europe? - term perspective. what about production in europe? for- term perspective. what aboutj production in europe? for any company _ production in europe? for any company that _ production in europe? for any company that wants _ production in europe? for any company that wants to - production in europe? for any company that wants to be - production in europe? for any company that wants to be a i company that wants to be a market leader in any market, you have to have a local plan and local thinking. you have to have a local plan and localthinking. i you have to have a local plan and local thinking. i think at some point we need to have

local capability. that would include factory, supply chain, local network and services. so, this is a part of the plan we have to do anyway, so it's something we analyse actively and various opportunities to get there but i think this is part of a long—term commitment to the region. in part of a long-term commitment to the raston— part of a long-term commitment to the region-_ to the region. in the short term, to the region. in the short term. you _ to the region. in the short term, you have _ to the region. in the short term, you have to - to the region. in the short term, you have to cope i to the region. in the short l term, you have to cope with these tariffs. i going to absorb those costs or do they mean the cars you produce will get more expensive for consumers?— get more expensive for consumers? ~ ., ., consumers? well, we had to look at all the levers _ consumers? well, we had to look at all the levers we _ consumers? well, we had to look at all the levers we can _ consumers? well, we had to look at all the levers we can use - consumers? well, we had to look at all the levers we can use to - at all the levers we can use to make sure we are competitive because obviously, you know, a car, if it's mispriced would be competitive. we need to 1517 00: