Skip to main content

tv   BBC News  BBC News  September 28, 2022 1:30pm-2:00pm BST

1:30 pm
let's return now to our top story — that major intervention by the bank of england this morning, our business editor simonjack is back with me: what a 2k hours. it is a tricky moment for the chancellor as it is not that the international monetary fund which specialises developing countries in financial trouble with question specific policies in an inflationary environment. they call them bond market vigilantes but liz truss has had a pretty boozing first encounter with these vigilantes. encounter with these vigila ntes. simon encounter with these vigilantes. simon jack, encounter with these vigilantes. simonjack, thank you. —— are pretty bruising. time for a look at the weather, here's tomasz schafernaker. a distinct autumn chill in the air for some of us with some frost in
1:31 pm
southern england and the outlook not looking too bad overall both today and tomorrow. sunny spells in the forecast but also some showers. looking at the satellite picture, the crowd quite broken up across the uk with varied weather conditions. the most frequent showers this afternoon in the north—east of england pushing through yorkshire, and later on today these showers becoming spells of rain heading south. temperatures tonight also quite varied because of the cloud cover. temperatures could get as low as 4 degrees but around coastal areas temperatures closer to 10 c. the big picture across europe on thursday and a rather large area of low pressure dominating the scene. more vigorous low pressure heading our way and already to come on friday. so for tomorrow a few
1:32 pm
showers around once again, not as many as today. the wind a little bit lighter tomorrow with more frequent sunny spells so temperatures also recovering up to 17 in some spots. then a different picture with his big autumn low spreading its weather front across the uk and quite a broad area of grain so everyone will get some rain on friday and within this weather system we will have some gusty wind especially around coastal areas. these are the gusts of wind up to 48 miles an hour and in excess of 50 around some coasts. that is gale force. despite the wind in the rain the temperatures could still reach around 15, i7 in the rain the temperatures could still reach around 15, 17 degrees but it will not feel like that with all that rain and wind. the low pressure very much with us through the weekend with the weather front out of the way but still showers circling around low pressure. is it
1:33 pm
only slowly tracks to the north in the direction of norway. and just a summary of the weekend, sunny spells here and there but a chance of some showers almost anywhere. so a mixed bag. back to you. that's all from the bbc news at one — so it's goodbye from me — and on bbc one we nowjoin the bbc�*s news teams where you are. you can keep up—to—date with fast—moving developments on the bbc news channel through the afternoon. good afternoon. it's 1.30pm and here's your latest sports news. england and wales cricket board chair richard thompson says the sport needs to find a compromise so the domestic calendar can be reformed. the ecb's high—performance review has suggested reducing the number of championship and t20 matches
1:34 pm
counties play from 14 to 10 in a bid to improve the england men's side. two—thirds of the 18 first—class counties need to agree to makes changes. we have to come up with a schedule that they want to play n it is clear from the pca the players, the directors of cricket have said the schedule doesn't work. so it is a lot of different stake holders that will have differing views, but ultimately we are trying to get everyone to see the best interests of the game, ra rather than just their view. the england t20 team take on pakistan in the fifth of their seven matches later this afternoon. the series has moved to lahore with the teams tied at 2—2. commentary is on 5live sports extra, the match starts at 3.30. rangers women go for a place in the group
1:35 pm
stage of champions league for the first time in their history this evening. they're looking to overturn a 3—2 deficit against benfica in the final stage of the qualifying play—offs. the scottish champions are in lisbon for the second leg, having one 4—0 against motherwell in the league on sunday. the rangers coach says a win tonight and qualification for the next stage would be monumentalfor the club. i think it would be something that's probably never really kind of been done. they're a new team f you want to call us a new team to this comp, which we are. this experience will be pivotal in us moving forward. we have no fear about the tie. if we have no fear about the tie. if we have the majority of our squad playing to their cape capabilities then we can get a result. in rugby union, england's women are to play their first ever
1:36 pm
stand—alone fixture at twickenham next year. theirfinal 2023 six nations match against france has been chosen as the game to take place at rugby hq. it was also announced that the red roses match against scotland will take place at newcastle kingston park, while they will return to northampton�*s franklins gardens to play italy. formula one drivers are in singapore ahead of this weekend's grand prix, where the championship could be decided. landon norris says the race will be one of the tough test of the entire season due to the tropical weather. the british driver says it is almost impossible not to make any mistakes. especially in singapore, the amount of weight we lose through race. some races it can be pretty much nothing, because you don't sweat a long. but here you sweat a lot. you can lose two, three, four kilos of body mass. it is lot and physically that is a
1:37 pm
will lot of water gone. so it is one of the toughest races of the season. that's all the sport for now. you can find more on all those stories on the bbc sport website. you are still watching bbc news. we will talk more about the storying dominating. let's return to our top story this hour, the bank of england has announced it will intervene in the bond markets to try to restore financial stability, after uk interest rates soared and gilts plummeted following the government's mini—budget. the bank warned the market's reaction to the government's measures now represented �*a material risk to uk financial stability�*. it says the market for gilts — in which the british government borrows — has become dysfunctional, and threatens the finances of uk households and businesses. investors fear the turmoil threatens some of britain's pension funds, with spill—over effects
1:38 pm
on other financial institutions. former deputy governor of the bank of england, sir charlie bean, spoke to my colleague martine croxall about what the announcement means for the british public. hanchts the bank of england has announced is something akin to acting as a market maker of last resort. what has happened since the fiscal event last friday, in fact it started earlier, is we have seen significant rises in the yield on government bonds. the significant rises in the yield on government bonds.— significant rises in the yield on government bonds. the flip side of that is that the — government bonds. the flip side of that is that the prices _ government bonds. the flip side of that is that the prices of _ government bonds. the flip side of that is that the prices of those - that is that the prices of those bonds has been falling and falling quite significantly and rising yields is necessarily accompanied by
1:39 pm
a fall in those prices. financial institutions, banks, insurance companies, pension funds, hedge funds, hold government bonds as a safe asset. they also have riskier assets as well. but they normally think of uk government bonds as a safe asset. and very stable in government. safe asset. and very stable in government-— safe asset. and very stable in government. pause because the government — government. pause because the government will _ government. pause because the government will have _ government. pause because the government will have to - government. pause because the government will have to pay - government. pause because the i government will have to pay them back? , , . . , government will have to pay them back? yes, because the prices have fallen a lot- — back? yes, because the prices have fallen a lot. that _ back? yes, because the prices have fallen a lot. that means _ back? yes, because the prices have fallen a lot. that means the - back? yes, because the prices have| fallen a lot. that means the balance sheet of those financial institutions will have also deteriorated. and that will you know in some cases it may even be
1:40 pm
threatening their solvency. that is not an issue for the major institutions, but there may be small ones where the decline in bond prices is significant.— ones where the decline in bond prices is significant. sorry to make this an economics _ prices is significant. sorry to make this an economics 101. _ prices is significant. sorry to make this an economics 101. i _ prices is significant. sorry to make this an economics 101. i will- prices is significant. sorry to make this an economics 101. i will bringl this an economics 101. i will bring ou to this an economics 101. i will bring you to the _ this an economics 101. i will bring you to the next — this an economics 101. i will bring you to the next bit. _ this an economics 101. i will bring you to the next bit. the - this an economics 101. i will bring you to the next bit. the next - this an economics 101. i will bring l you to the next bit. the next chain, this is why the bank of england has announced this facility is of course if these institutions find themselves in financial difficulties, what they will do is cutback on lending, whatever their main raison d'etre is, that will then feed through into the real economy, to households, businesses and so forth. so the important thing for the bank is basically to keep the financial system operating
1:41 pm
smoothly. we introduced a similar facility in early 2009 for corporate bonds, the bonds that companies issue, with exactly the same objective, to temporarily step in when there weren't buyers, in that case of corporate bonds, in this case of corporate bonds, in this case it is investors reluctant to hold uk bonds. the bank is stepping in as a buyer of last resort. it sees what is happening as being a temporary phenomenon, that is why it said it willjust last temporary phenomenon, that is why it said it will just last for 14 days. it believes that the yields on government bonds have risen too much, so that they're mis—priced. and by acting in this way it will
1:42 pm
limit any further rises in yields, or fall limit any further rises in yields, orfall in bond prices, ensure the financial system keeps operating smoothly and ensure a continued flow of credit. it smoothly and ensure a continued flow of credit. ., , smoothly and ensure a continued flow of credit. . , ., ., , smoothly and ensure a continued flow of credit. . , . ., , ., ~ of credit. it has already worked the announcement _ of credit. it has already worked the announcement has _ of credit. it has already worked the announcement has brought - of credit. it has already worked the announcement has brought down l of credit. it has already worked the l announcement has brought down gilt yield by half a per cent. it is pretty quick the response. what these actions _ pretty quick the response. what these actions do, _ pretty quick the response. what these actions do, the _ pretty quick the response. what these actions do, the mere - these actions do, the mere announcement of the central bank is willing to step in as a buyer, acts as support and sometimes it may not even need to buy anything. famously mario draghi during the eurozone debt crisis announced the ecb was willing to step in to buy distressed sovereign debt and the problems
1:43 pm
evaporated. and it never needed to buy any. so merely the fact of the bank standing ready to purchase uk government bonds automatically helps to stabilise the market. and i have to stabilise the market. and i have to say this is clearly the right thing to do and has been a very successful and important intervention.— successful and important intervention. �* ., , , intervention. and it has happened tuickl , it intervention. and it has happened quickly. it is _ intervention. and it has happened quickly, it is that _ intervention. and it has happened quickly, it is that c _ intervention. and it has happened quickly, it is that c word, - intervention. and it has happened quickly, it is that c word, again, l quickly, it is that c word, again, confidence. how seriously should the government here take this comment by the international —— international monetary fund? i the international -- international monetary fund?— the international -- international monetary fund? i have to say i think the 're monetary fund? i have to say i think they're unwise _ monetary fund? i have to say i think they're unwise to _ monetary fund? i have to say i think they're unwise to be _ monetary fund? i have to say i think they're unwise to be dismissive. - monetary fund? i have to say i think they're unwise to be dismissive. it i they're unwise to be dismissive. it is very unusual for the imf to issue a statement like this, particularly for a g7 country. it might be more likely for an emerging market country that has been in
1:44 pm
difficulties and it has been following closely. i think and it is not only that the imf has some disquiet of the actual content of the fiscal package and particularly the fiscal package and particularly the announcement of unfunded tax cuts, there is a question mark about the stability of public finances that the chancellor said he will come back to in november in the the main fiscal event. i5 come back to in november in the the main fiscal event.— main fiscal event. is that soon enou~h, main fiscal event. is that soon enough. end _ main fiscal event. is that soon enough, end of— main fiscal event. is that soon enough, end of november? i main fiscal event. is that soon . enough, end of november? well, main fiscal event. is that soon - enough, end of november? well, that is a tood enough, end of november? well, that is a good question. _ enough, end of november? well, that is a good question. i _ enough, end of november? well, that is a good question. i personally - is a good question. i personally think so. that really they need to be establishing the coherence of their fiscal strategy earlier than that. and in the absence of that, we are likely to see continued pressure
1:45 pm
on uk government gilt yields. going back to the imf, an added factor in their mind will be in the current state of uncertainty, in the global economy there is turmoil in other parts of financial markets driven by the uncertainty keshgted uncertainty connected with the ukraine, were the uk, a significant medium—sized economy, to suffer serious financial instability, that it would po potentially have spill over consequences elsewhere in the system. we are the canary in the coal mine if you like for them. that is why they felt particularly impelled to issue this statement
1:46 pm
about the uk's policies. and it is why i think it is particularly unwise for some conservative mps to be dismissive of what is going on and say sit is just froth in the financial markets, people don't understand their strategy and i think it is important that the government as soon as possible gets out a coherent story about how its tax cuts will both deliver faster growth and ensure the public finances are on a sustainable track in the medium term.— finances are on a sustainable track in the medium term. yesterday you uraed the in the medium term. yesterday you urged the bank _ in the medium term. yesterday you urged the bank of _ in the medium term. yesterday you urged the bank of england - in the medium term. yesterday you urged the bank of england to - in the medium term. yesterday you urged the bank of england to carryl urged the bank of england to carry out an emergency interest rate of 1.5 percentage points, now they will say they will buy government debt, how necessary is that emergency rate rise in your view, bearing in mind
1:47 pm
over night something like a thousand mortgage products are now off the market? i mortgage products are now off the market? , ., ., market? i should say, what i said esterda market? i should say, what i said yesterday was — market? i should say, what i said yesterday was that _ market? i should say, what i said yesterday was that had _ market? i should say, what i said yesterday was that had i - market? i should say, what i said yesterday was that had i been - market? i should say, what i said yesterday was that had i been at| market? i should say, what i said i yesterday was that had i been at the bank i would have been in favour of having an extraordinary meeting and an associated rate increase, because these things, it is better to act early and boldly and then promise to to act boldly. i have to say given what they have done on the financial stability front, the need for an immediate rate increase is much reduced. it is not going to go away though and as the bank's chief economist said yesterday in an address, it is likely that
1:48 pm
accompanying the fiscal expansion that was announced last week, the bank will have to significantly raise interest rates. that will take place at its next meeting in november. and that will feed through to mortgage rates. that is unavoidable. so, the financial stability action today is not going to change the fact that interest rates will be rising in the future. so much talk about mortgage rates and mortgages removed from the market. and, later today, we'll be answering your questions on housing and the cost of living crisis — so if you have any questions about buying a house, mortgages or rents, you can let us know. that's on your questions
1:49 pm
answered at 4.30 today. get in touch with your questions — by emailing yourquestions@bbc.co.uk, or get in touch on social media using the hashtag #bbcyourquestions. food inflation has hit its highest rate on record, according to the british retail consortium. inflation is the rate at which prices are rising — the increasing cost of food has largely been driven by the war in ukraine — which continues to push up the price of animal feed, fertiliser and vegetable oil. figures show shoppers are now paying 10.6% more than they were a year ago — that's up from 9.3% in august. fresh food products are a record 12.1% higher than last year — this was up from 10.5% in august. overall shop price inflation rose to 5.7% in september. and non—food inflation rose to 3.3% — largely driven by heavier hardware and other products hit by rising transport costs.
1:50 pm
earlier, tom holder from the british retail consortium explained the significance of these increases. we are not seeing food inflation or inflation on the whole slowdown at all and that will be a real concern for households, particularly as next month we will be seeing the rise in energy prices for many households. things are difficult for households and retailers to face both higher costs and getting squeezed by lower demand, a difficult time with no sign that things will debate. sign that things will abate. we have the ongoing war of ukraine pushing up the price of things like fertiliser, oil, vegetable oil as well, directly impacting shelf prices. there was a little bit of good news with the sunshine which helped bring down the price of some fresh fruit,
1:51 pm
berries and such, but the drought will also have an impact, a longer impact on the harvests for other products, so swings and roundabouts there, but a difficult time for retailers and an even harder time for consumers at the moment. it is all along the supply chain with the producers in the first place, they are finding the squeeze because the basic resources they need are also going up in price, it starts at the very beginning. absolutely. the imported food is more expensive but also the fertiliser for the farms is more, the energy required is more expensive and that gets passed along to the supermarket, the supermarkets are then forced to try and protect their consumers as best i can but some of that is always going to get passed on, especially as margins continue to shrink in the retail
1:52 pm
industry at the moment, so that price is coming through the supply chain which makes it incredibly hard to combat. how much in your view does this expose, explain how we need to be much more self—sufficient when it comes to producing goods that at the moment we import? uk produces most of the food that we eat, around 60%, and around 30% from the eu. there are advantages to that because it means you can get many fresh fruit and vegetables all year round because we're notjust getting seasonal vegetables through the uk, so in terms of consumer choice that ability to import has been very helpful, obviously the weakening pound at the moment which is the big story of the day means that many of these prices are going up at the moment, but i think there are advantages to importing summer food so long
1:53 pm
we do have that food security and the government has looked at that prior, it has always been important for the uk and largely we are quite successful at that. now some of the stories making the headlines across the uk. a head teacher wants the government to increase funding. he has asked the prime minister to support schools through the cost—of—living crisis. running a school presents daily challenges. but now the head teacher is worried about energy prices. we
1:54 pm
sent is worried about energy prices. - spent £120,000 year. we are locked in a deal until april. our concern is what will happen after that. the six months from government ends and there is no guarantee that we will continue to be protected as a business. i know some vulnerable businesses will b if we are not protected we are looking at a trebling of that £125,000. that is another £250,000 out of the 950,000 we have to run the school. staff costs are _ we have to run the school. staff costs are the _ we have to run the school. staff costs are the largest _ we have to run the school. staff costs are the largest part - we have to run the school. staff costs are the largest part of the budget. he welcomes a pay rise for teachers, but says the only way to fund it to cut posts or run the school at a loss.— school at a loss. this isn't sustainable. _ school at a loss. this isn't sustainable. if— school at a loss. this isn't sustainable. if these - school at a loss. this isn't sustainable. if these payl school at a loss. this isn't - sustainable. if these pay rises are not funded and we have to go into a deficit, paying them back will mean
1:55 pm
long—term we spend less in the school and they will be disadvantaged.- school and they will be disadvantaged. school and they will be disadvanta . ed. ., ., , school and they will be disadvantared. ., ., , ., disadvantaged. now he has written to the government _ disadvantaged. now he has written to the government on _ disadvantaged. now he has written to the government on behalf— disadvantaged. now he has written to the government on behalf of- the government on behalf of state—funded schools asking for help. in a statement the department for education told us that all schools will benefit from the energy relief school, capping how much they spend on energy and said that core funding for schools was up. i will be rrettin funding for schools was up. i will be getting in _ funding for schools was up. i will be getting in touch _ funding for schools was up. i will be getting in touch with - funding for schools was up. i will be getting in touch with the secretary of state for education and talking _ secretary of state for education and talking to _ secretary of state for education and talking to him, i know having spoken with my— talking to him, i know having spoken with my colleagues, where i have had a chance _ with my colleagues, where i have had a chance to _ with my colleagues, where i have had a chance to speak to them, but most of us _ a chance to speak to them, but most of us are _ a chance to speak to them, but most of us are actually agreeing with this point _ of us are actually agreeing with this point. so we will getting out there _ this point. so we will getting out there and — this point. so we will getting out there and seeing if we can try and persuade — there and seeing if we can try and persuade the government to follow up with the _ persuade the government to follow up with the funding. the persuade the government to follow up with the funding.— with the funding. the secondary heads will meet _ with the funding. the secondary heads will meet later _ with the funding. the secondary heads will meet later this - with the funding. the secondary heads will meet later this week| with the funding. the secondary l heads will meet later this week to discuss ways to cope with the economic challenges the schools are
1:56 pm
facing. a nine—year—old boy called theo from norfolk has won a bbc bitzesize climate champion award for helping to keep his local beach clean. here's his story. i'm a regenerator! i like go the the beach, because i like playing in the sand and water. when he was about five, we took him to the sealife centre and he saw some jellyfish and put them on display in a plastic bag. i don't like it when there's lots of rubbish on the beach. that's why i started to litter—pick. this year he decided in april we'd go, maybe a couple of times a month down to the local beach in hemsby and we received so much interest in it that i decided to set a facebook page up for theo's litter—picking and from there, yeah, his facebook page reaches millions of people. we were so impressedl with theo's enthusiasm for keeping his environment clean. and thought what an inspiring young man he was. i'm always amazed by how much litter
1:57 pm
we find on the beach. eac litter—pick we remove one to two big bags of rubbish, which is one or two big bags of waste that is not going into the ocean. i've learned how the rubbish we throw away hurts the animals. we have seen the devastation first hand that these seals get entangled in. so we know by removing these items from the beach we are preventing harm. it feels really good helping animals. academically he does struggle, he has quite severe dyslexia, he has got learning difficulties, and i think this hasjust given him a real confidence—boost that he can achieve _ something, he can do something that nobody else is doing and i think definitely the back of the local community has really helped boost his confidence, given him a purpose. i i think a big part of what theo'sl doing is getting the message out there and to educate people to put i their rubbish in the bin and save. theo a job. when we first met theo he really inspired us to look very-
1:58 pm
carefully at what packaging we were going to be - using, whether that was _ biodegradeable or compostable. and i think a lesson there is that we can all do more. listen to your child as well, take their lead, we did with theo. this was very out of my comfort zone initially, but we know that what he is doing is making a real difference to the community and the local wildlife. anybody can do this. if i can do it, you can do it. thank you, bbc regenerators. and if you want to know more about the bbc bitesize campaign and how you can help to create a greener environment, go to bbc.co.uk/regenerators. more coming up an extraordinary day, very busy day in terms of economy and everyone's finances. right now
1:59 pm
it is weather time and here is thomas. quite a chilly day for many of us and that is how it will stay for the next few days. by friday it will feel colder, with heavy rain and strong winds. the cloud cover is varied across the country today, there are some showers and in some places more persistent rain. not particularly pleasant on the north—east coast of england with these showers, that will spread to midlands, wales and the south. the overnight temperatures vary. four in norwich. but10 in overnight temperatures vary. four in norwich. but 10 in belfast. how about tomorrow? could be grey for a time in the south. generally tomorrow isn't going to be a bad day. there will be frequent spells of sunshine and occasional showers and a temperature still below the
2:00 pm
average. norwich 15, 16 expected in belfast. this is bbc news. the headlines... the bank of england steps in to restore order in bond markets after interest rates soared in the wake of the government's mini budget on friday. the rising cost of borrowing represents a threat to the uk's financial stability.— financial stability. these statements _ financial stability. these statements are - financial stability. these j statements are common financial stability. these - statements are common with financial stability. these _ statements are common with regard to countries, with problematic policies, but not often about g7 countries. policies, but not often about g7 countries-— policies, but not often about g7 countries. ., . policies, but not often about g7 countries. ., , ., countries. the government needs to recall parliament _ countries. the government needs to recall parliament and _ countries. the government needs to recall parliament and abandon - countries. the government needs to recall parliament and abandon this | recall parliament and abandon this budget— recall parliament and abandon this budget for any more damage is done. the president of ukraine has pledged to protect citizens in areas of his country which face annexation by
2:01 pm
russia

36 Views

info Stream Only

Uploaded by TV Archive on